Document:

EX-10.2

 

Exhibit 10.2

EXECUTIVE EMPLOYMENT AGREEMENT

     THIS EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”), effective as of December 28, 2007 by
and between REGENT COMMUNICATIONS, INC., a Delaware corporation (the “Company”), and ANTHONY A.
VASCONCELLOS (“Employee”).

RECITALS

     WHEREAS, the Company is engaged in the business, either directly or through affiliates, of
owning and operating radio broadcasting stations (the “Business”), with principal offices in
Covington, Kentucky. For purposes of this Agreement, the term “Company” shall include the Company,
its subsidiaries, affiliates, and assignees and any successors in interest of the Company and its
subsidiaries and/or affiliates.

     WHEREAS, Employee has been actively engaged in the radio broadcasting business and has
extensive knowledge and a unique understanding of the operation of the Business.

     WHEREAS, the Company desires to employ Employee, and Employee desires to be employed by the
Company, as Executive Vice President and Chief Financial Officer of the Company.

     NOW, THEREFORE, in consideration of the foregoing, the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

     1. Employment.

          1.1 Engagement of Employee. The Company agrees to employ Employee and Employee agrees to
accept employment as the Executive Vice President and Chief Financial Officer of the Company, all
in accordance with the terms and conditions of this Agreement. Any prior agreements or
understandings with respect to Employee’s employment with the Company are canceled as of the date
hereof, other than any incentive awards granted to Employee prior to the date hereof, benefit plans
in which Employee is eligible for participation and any Company policies to which Employee is
subject.

          1.2 Duties and Powers.

               (a) During the Employment Period, Employee will serve as the Company’s Executive Vice
President and Chief Financial Officer, and will have such responsibilities, duties and authority
as customarily held by executives in such a position in comparable companies, and will render
services of an executive and administrative character, and act in such other executive capacity
for the Company, as the Company’s board of directors (the “Board”) shall from time to time direct.
Employee shall devote his reasonable best efforts, energies and abilities to the business and
affairs of the Company. Employee shall perform the duties and carry out the responsibilities
assigned to him, to the best of his ability, in a diligent, trustworthy

 

 

and businesslike manner for the purpose of advancing the business of the Company and in a
manner he reasonably believes to be in and not opposed to the best interests of the Company.

               (b) Employee acknowledges that his duties and responsibilities will require his concentrated
business efforts and agrees that during the Employment Period he will not engage directly or
indirectly in any other business activity or have any business pursuits or interests which
materially interfere or conflict with the performance of Employee’s duties hereunder or which
compete directly with the Company; provided, however, nothing in this Section 1.2 shall be deemed
to prohibit Employee from investing in the stock of any competing corporation listed on a national
securities exchange or traded in the over-the-counter market, but only if his associates (as such
term is defined in Regulation 14A promulgated under the Securities Exchange Act of 1934, as in
effect on the date hereof), collectively, do not own more than an aggregate of three percent of
the stock of such corporation. In addition, Employee may serve on boards of directors during the
Employment Period and volunteer his service to charitable, business and other public service
agencies, clubs or organizations so long as such board or other service does not materially
interfere or conflict with the performance of Employee’s duties hereunder and so long as such
activities are not rendered for a competitor of the Company. Any and all fees or remuneration paid
to Employee in consideration of work and services performed outside the scope of Employee’s
employment hereunder shall inure to the benefit of Employee.

               (c) The parties hereto agree that none of Employee’s duties hereunder shall require him to,
and Employee agrees that he will not without the consent of the Board, which consent shall not be
unreasonably withheld, change his personal residence from the Greater Cincinnati, Ohio SMSA Area.

          1.3 Employment Period. Employee’s employment under this Agreement shall begin effective on
the date hereof and shall continue through and until December 31, 2009 (the “Employment Period”).
Notwithstanding anything to the contrary contained herein, the Employment Period is subject to
termination pursuant to Section 1.4 and Section 1.5 below.

          1.4 Termination by the Company. The Company has the right to terminate Employee’s employment
under this Agreement, by notice to Employee in writing at any time, (i) for “Cause,” (ii) without
Cause for any or no reason, and (iii) due to the Disability of Employee. Any such termination shall
be effective upon the date of service of such notice pursuant to Section 14. This Agreement shall
terminate automatically upon Employee’s death.

     “Cause” as used herein means the occurrence of any of the following events:

               (a) the determination by the Board in the exercise of its reasonable judgment that Employee
has committed an act or acts constituting theft, dishonesty or fraud with respect to the Company;

               (b) conviction of Employee for the commission of a felony;

               (c) the determination by the Board in the exercise of its reasonable judgment that Employee
has committed an act that provides clear and convincing evidence of alcohol or drug abuse by
Employee that adversely affects his performance hereunder;

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               (d) a material breach by Employee of any of the terms and conditions of Sections 3 or 4 of
this Agreement; or

               (e) Employee’s gross negligence, habitual neglect, or intentional misconduct in the
performance of his duties hereunder resulting in material harm to the Company, which gross
negligence, habitual neglect or intentional misconduct continues for not less than 15 days
following Employee’s receipt of written notice from the Board of such failure.

     Employee shall be deemed to have a “Disability” for purposes of this Agreement if Employee
shall be unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months. In the event Employee shall
be under a Disability, the Company shall have the right to terminate Employee’s employment
hereunder during the continuance of such Disability upon at least thirty (30) days prior written
notice to Employee. Such determination shall not be arbitrary or unreasonable, and the Board shall
take into consideration the opinion of Employee’s personal physician, if reasonably available, as
well as applicable provisions of the Americans with Disabilities Act, but such determination by the
Board, if not arbitrary or unreasonable, shall be final and binding on the parties hereto.

          1.5 Termination by Employee. Employee has the right to terminate his employment under this
Agreement for any or no reason, upon ninety (90) days prior written notice to the Company.

          1.6 Indemnity. The Company shall indemnify Employee and hold him harmless to the fullest
extent permissible under applicable law for all acts or decisions made by him in good faith while
performing services for the Company. The Company shall also use its best efforts to obtain coverage
for him under any insurance policy obtained during the term of this Agreement covering the other
officers and directors of the Company against lawsuits.

     2. Compensation and Benefits.

          2.1 Base Compensation. During the Employment Period, the Company will pay Employee an annual
base salary (“Base Salary”) as follows:

               (a) through December 31, 2007, all remaining installments based upon his current base salary
of $266,255.00 (the “Current Base Salary”);

               (b) from January 1, 2008 through December 31, 2008, the Current Base Salary, plus an amount
equal to the percentage increase in the Consumer Price Index — All Items during the period January
1, 2007 through December 31, 2007 (the “2008 Base Salary”); and

               (c) from January 1, 2009 through December 31, 2009, the 2008 Base Salary, plus an amount equal
to the percentage increase in the Consumer Price Index — All Items during the period January 1,
2008 through December 31, 2008, plus any increase as determined by the Board and/or the Board’s
Compensation Committee in its annual review of the Employee’s base salary as contemplated below in
this Section 2.1 (the “2009 Base Salary”).

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     The Employee’s Base Salary, per annum, shall be payable in accordance with the Company’s
regular payroll policy for senior executive salaried employees. At least once every twelve (12)
months, the Board and/or the Board’s Compensation Committee shall perform an annual review of
Employee’s Base Salary based on Employee’s performance of his duties and the Company’s other
compensation policies and make such increase thereto as it deems appropriate, provided that at each
such twelve-month interval the Base Salary shall be increased from its level during the prior
twelve-month period at least by a percentage no less than the percentage increase in the Consumer
Price Index — All Items during such prior twelve-month period. Upon termination of the Employment
Period, the Base Salary for any partial year will be prorated based on the number of days elapsed
in such year during which the Employment Period had continued.

          2.2 Senior Management Plan Bonus. Within sixty (60) days following the end of each fiscal
year, the Board and/or the Board’s Compensation Committee, as part of its annual review of
Employee’s performance, shall consider in its sole discretion the merits of a bonus to Employee
pursuant to and in accordance with the Regent Communications, Inc. Senior Management Bonus Plan,
and in the event a bonus is warranted, shall cause the Company to award to Employee a bonus (the
“Senior Management Plan Bonus”) for such year. The target amount of the Senior Management Plan
Bonus is eighty percent (80%) of the Employee’s current Base Salary, subject to adjustments by the
Board and/or the Board’s Compensation Committee in its reasonable judgment. Such payment shall be
paid in its entirety no later than the 15th day of the third month following the end of
the fiscal year that the bonus was earned.

          2.3 Stock Options and Other Equity-Based Incentives. It is agreed that, in addition to and
not in lieu of Senior Management Plan Bonuses, the Company will, in January of each year and on
such terms and conditions as the Board and/or the Board’s Compensation Committee shall deem
appropriate, in its sole discretion, grant to Employee pursuant to the Company’s 2005 Incentive
Compensation Plan, or any other incentive compensation plans as may be adopted by the Company from
time to time, restricted stock, stock options or other equity-based incentives and/or grant to
Employee pursuant to the Company’s 1998 Management Stock Option Plan qualified and/or non-qualified
options to acquire common stock of the Company. For purposes of this Agreement, the term “options”
shall be deemed to mean stock options and any other equity-based incentives including, but not
limited to, restricted stock, stock units, stock appreciation rights and similar instruments.

          2.4 Benefits. In addition to the Base Salary, any Senior Management Plan Bonus and any
restricted stock, stock options or other equity-based incentives payable or granted to Employee
hereunder, Employee will be entitled to the following benefits during the Employment Period:

               (a) payments of premiums for hospitalization, disability, life and health insurance, to the
extent offered by the Company, and in amounts consistent with Company policy, for all key
management employees, as reasonably determined by the Board;

               (b) up to four (4) weeks paid vacation each year with salary, provided that unused vacation
time shall not be carried over to subsequent years;

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               (c) reimbursement for reasonable, ordinary and necessary out-of-pocket business expenses
incurred by Employee in the performance of his duties, subject to the Company’s policies in effect
from time to time with respect to travel, entertainment and other expenses, including without
limitation, requirements with respect to reporting and documentation of such expenses;

               (d) use of an automobile at the Company’s expense which shall include expenses for parking in
the area of the Company’s offices and for comprehensive insurance coverage for the automobile; and

               (e) other benefit arrangements and perquisites, including a 401(k) or similar tax deferral
plan, to the extent made generally available by the Company to its executives and key management
employees.

     To the extent any of the expenses reimbursed to Employee under this Section 2.4 are taxable
to Employee, the following conditions apply: (i) Employee represents that his tax year is the
calendar year and shall continue to be the calendar year until all reimbursements under this
Section are made; (ii) the amount of expenses eligible for reimbursement during any one calendar
year shall not affect the expenses eligible for reimbursement in any other calendar year; (iii)
Employee shall present Company with invoices and/or other supporting documentation related to such
expenses that are reasonably acceptable to Company and that are provided no later than six months
after the end of the calendar year in which they are incurred. Reimbursements shall be made as
soon as administratively feasible following the receipt of such documentation but in no event
later than the end of the calendar year following the calendar year in which the expense is
incurred; and (iv) this right to reimbursement is not subject to liquidation or exchange for
another benefit.

          2.5 Taxes, etc. All compensation payable to Employee hereunder is stated in gross amount and
shall be subject to all applicable withholding taxes, other normal payroll and any other amounts
required by law to be withheld.

          2.6 Compensation After Termination.

               (a) If the Company determines that the Employee has incurred a Disability, the Company agrees
to continue to pay Employee his current Base Salary beginning on the date of determination of
Disability, and ending one year thereafter, provided that the Company may cease making payments
within such year if Employee becomes eligible to receive and begins receiving long-term disability
payments from the applicable insurer in an amount equal to Employee’s after-tax Base Salary per
month on the same basis as he was immediately before incurrence of the Disability, and provided,
further, that if allowed by the terms of the applicable long-term disability policy, the amount
payable by the Company within such year, the amount payable by the Company shall be reduced by the
amount payable under the applicable long-term disability policy such that the aggregate amount
received by Employee shall equal the Employee’s after-tax Base Salary per month on the same basis
as he was immediately before incurrence of the Disability. Nothing in this Section 2.6(a) is to
be construed as a reason to delay the commencement or reduce the amount of long-term disability
benefits payable from the Company’s insurance carrier. The Employment Period may be terminated
pursuant to Section 1.4 after the Company’s determination of the Disability.

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               (b) If the Employment Period is terminated by the Company without Cause, Employee shall be
entitled to receive as severance pay (in addition to the payment of the Base Salary through the
date of termination as well as a prorated Senior Management Plan Bonus) an amount equal to the
greater of (i) his current Base Salary for a period equal to twelve (12) months and (ii)
Employee’s current Base Salary for the remainder of the Employment Period. In addition, all
unvested stock options, shares of restricted stock and other equity awards held by Employee shall
accelerate and vest in full as of the date of termination. Since the Employee is a “specified
employee” under Section 409A of the Internal Revenue Code of 1986, as amended (“Code”), amounts
that are deferred compensation are not payable to the Employee until six months after his date of
termination. Notwithstanding the preceding sentence and as an exception to the six-month delay
otherwise required by Section 409A of the Code, amounts due under this Section 2.6(b) will be
payable in regular installments in accordance with the Company’s general payroll practices for
salaried employees until the March 15th of the year following the year of termination
with the regular installment payment that immediately precedes March 15 to include any installment
amounts that would otherwise be delayed because of the six-month delay. After the expiration of
the six-month delay period following the date of termination, the monthly installment payments
will continue until the Employee is paid the remaining amounts (if any) due under this Section
2.6(b). Employee shall have no obligation to mitigate these post-employment payments by seeking
other employment. The Company shall have no other obligations hereunder or otherwise with respect
to Employee’s employment from and after the termination or expiration date, and the Company shall
continue to have all other rights available hereunder (including, without limitation, all rights
under Sections 3, 4, and 6 at law or in equity).

               (c) If the Employee’s employment is terminated by either the Company or the Employee for any
reason other than Employee’s death or disability within 24 months prior to or following a Change
of Control notwithstanding that the Employment Period has otherwise expired, or if the Employee’s
employment is terminated due to Employee’s death or disability within 12 months prior to or
following a Change of Control notwithstanding that the Employment Period has otherwise expired,
Employee shall be entitled to receive (i) all compensation accrued and unpaid prior to the date of
termination, (ii) an amount equal to 2.99 times his current Base Salary (based upon the greater of
(A) Employee’s Base Salary as of the date of the Change of Control, or (B) Employee’s highest Base
Salary at any time following the commencement of the Employment Period), (iii) an amount equal to
2.99 times the average of the Senior Management Bonuses calculated for 2006 and each successive
full calendar year prior to the date of termination, and (iv) the vesting of all stock options,
shares of restricted stock and other equity awards held by Employee shall accelerate and vest in
full. These amounts shall be paid in a lump sum and in immediately available funds as provided
herein, offset by any amounts previously paid by the Company to Employee pursuant to Sections
2.6(a) or (b) above. If the Employee’s termination of employment occurs on or prior to the March
15th of the year following the year of the Change of Control, the lump sum will be paid
immediately (but not later than the applicable March 15th) following the date of
termination. If the Employee’s termination of employment occurs later than the March
15th of the year following the year of the Change of Control, the lump sum will be
immediately payable after the expiration of six months after the date of such termination of
employment. If the payment due under this Section 2.6(c) is subject to a delay of six or less
months, the Company shall establish, and hold such amount due, in a rabbi trust until payable to
the Employee. Employee shall not be required to mitigate the amount of any payment required by
this Section 2.6(c) by seeking other employment or otherwise and no such payment shall be offset

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or reduced by the amount of any compensation or benefits provided to Employee in any
subsequent employment. In the event that the payment amounts due to Employee pursuant to this
Section 2.6(c) and other provisions of this Agreement, plus any other compensation or benefits
provided to Employee under any other agreement, plan or arrangement with the Company, following a
Change of Control would result in an “excess parachute payment” within the meaning of Section 280G
of the Code, then the amount due to Employee shall be capped at the maximum amount payable to
Employee before such “excess parachute payment” provisions would otherwise apply by reducing
first, the amount of Base Salary otherwise payable in cash compensation under Section 2.6(c)(ii),
and second, the amount of Senior Management Bonus otherwise payable in cash compensation under
Section 2.6(c)(iii). For purposes of determining the limitations under Section 280G of the Code,
it is recognized that the non-competition and non-solicitation provisions of Section 3 of this
Agreement constitute a refraining from the performance of services such that the reasonable value
for such provisions is excluded from the determination of the amount of “parachute payments” as
defined by Section 280G of the Code. If any tax for excess parachute payments is imposed on the
Employee under Section 4999 of the Code, the Company will be responsible for payment of the tax,
penalty, interest and any related audit costs incurred by Employee, including any payments
necessary to place the Employee in the same taxable position he would have been had no excess
parachute payments existed, and the Employee will be required to return to the Company any excess
amounts received over the limitations of Section 280G of the Code.

     All calculations, valuations and amounts payable under this Section 2.6(c), and the
limitations imposed by Section 280G of the Code, shall be calculated at Company expense by an
independent accounting firm that is mutually agreed upon by the Company and the Employee.

     For purposes of this Agreement, the term “Change of Control” shall mean the purchase or other
acquisition by any person, entity or group of persons, within the meaning of section 13(d) or 14(d)
of the Securities Exchange Act of 1934 (“Act”), or any comparable successor provisions, of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Act) of 30 percent or
more of either the outstanding shares of common stock or the combined voting power of Regent
Communications, Inc.’s then outstanding voting securities entitled to vote generally, or the
approval by the stockholders of Regent Communications, Inc. of a reorganization, merger, or
consolidation, in each case, with respect to which persons who were stockholders of Regent
Communications, Inc. immediately prior to such reorganization, merger or consolidation do not,
immediately thereafter, own more than 50 percent of the combined voting power entitled to vote
generally in the election of directors of the reorganized, merged or consolidated Regent
Communications, Inc.’s then outstanding securities, or a liquidation or dissolution of Regent
Communications, Inc. or of the sale of all or substantially all of Regent Communications, Inc.’s
assets , it being understood and agreed that a “sale of all or substantially all” of the Company’s
assets shall be deemed to have occurred if at any time after the date hereof through the 24 month
anniversary of the date of termination of Employee’s employment with the Company, the value of
the Company’s assets is less than 50% of the value of the Company’s assets as of the later of (A)
the beginning of the Employment Period or (B) 24 months prior to the date of termination of
Employee’s employment with the Company, due to one or more transactions in which assets of the
Company are sold, transferred or otherwise disposed of to one or more persons. It shall not be
considered a “Change of Control” if the sale or transfer of assets is to: (i) a shareholder of the
Company (immediately before the asset transfer) in exchange for or with respect to its stock; (ii)
an entity, 50 percent or more of the total value or voting power of

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which is owned, directly or indirectly, by the Company; (iii) a person, or a group of people, that
owns, directly or indirectly, 50 percent or more of the total value or voting power of all the
outstanding stock of the Company; or (iv) an entity, at least 50 percent of the total value or
voting power of which is owned, directly or indirectly, by a person described in (iii) above. In
addition, the term “Change of Control” shall include changes in the Regent Communications, Inc.
Board of Directors during any twelve (12) month period, such that individuals who, as of the
beginning of such period, constitute the Board (the “Incumbent Directors”) cease for any reason to
constitute at least a majority of the Board, provided that any person becoming a director
subsequent to the beginning of such period whose election or nomination for election was approved
by a vote of at least a majority of the Incumbent Directors then on the Board (either by a specific
vote or by approval of the proxy statement of the Company in which such person is named as a
nominee for director, without written objection to such nomination) shall be deemed to be an
Incumbent Director.

               (d) If the Employment Period is terminated pursuant to Section 2.6(a) or 2.6(b) above,
Employee shall be entitled to receive, at such time it would otherwise be payable, any Senior
Management Plan Bonus which would have been payable, based upon the Company’s performance over the
full fiscal year, prorated for that portion of the fiscal year during which the Employee was
employed by the Company.

               (e) If the Employment Period is terminated pursuant to Section 2.6(a), 2.6(b) or 2.6(c)
above, for a number of months equal to the lesser of (a) twelve (12) or (b) the number of
months remaining until Employee’s 65th birthday (the “Continuation Period”), the Company
shall at its expense continue on behalf of Employee and his dependents and beneficiaries (to
the same extent provided to the dependents and beneficiaries prior to Employee’s termination) the
life insurance, medical, dental, and hospitalization benefits provided (x) to Employee by the
Company at any time within ninety (90) days preceding such termination, or (y) to other similarly
situated executives who continue in the employ of the Company during the Continuation Period.
The coverage and benefits (including deductibles and costs) provided in this Section 2.6 (e)
during the Continuation Period shall be no less favorable to Employee and his dependents and
beneficiaries, than the most favorable of such coverages and benefits set forth in clauses (x)
and (y) above. The Company’s obligation hereunder with respect to the foregoing benefits shall
be limited to the extent that Employee obtains any such benefits pursuant to a subsequent
employer’s benefit plans, in which case the Company may reduce the coverage of any benefits it is
required to provide Employee hereunder as long as the aggregate coverages and benefits of the
combined benefit plans are no less favorable to Employee than the coverages and benefits required
to be provided hereunder. This Section 2.6(e) shall not be interpreted so as to limit any
benefits to which Employee or his dependents or beneficiaries may be entitled under any of the
Company’s employee benefit plans, programs or practices following Employee’s termination of
employment, including without limitation, retiree medical and life insurance benefits.

     To the extent any of the expenses reimbursed to Employee under this Section 2.6(e) are
taxable to Employee, the following conditions apply: (i) Employee represents that his tax year is
the calendar year and shall continue to be the calendar year until all reimbursements under this
Section are made; (ii) the amount of expenses eligible for reimbursement during any one calendar
year shall not affect the expenses eligible for reimbursement in any other calendar year; (iii)
Employee shall present Company with invoices and/or other supporting documentation related to

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such expenses that are reasonably acceptable to Company and that are provided no later than six
months after the end of the calendar year in which they are incurred. Reimbursements shall be
made as soon as administratively feasible following the receipt of such documentation but in no
event later than the end of the calendar year following the calendar year in which the expense is
incurred; and (iv) this right to reimbursement is not subject to liquidation or exchange for
another benefit.

               (f) If any tax is imposed on Employee under Section 409A of the Code with respect to any
payment made by the Company to Employee pursuant to this Section 2.6, the Company will be
responsible for payment of such tax, penalty, interest and any related audit costs incurred by
Employee, including any payments necessary to place the Employee in the same taxable position he
would have been had no tax been imposed upon him pursuant to Section 409A of the Code.

          2.7 Profit Sharing, Pension and Salary Deferral Benefits. It is understood by the parties to
this Agreement that, during the Employment Period, Employee shall be entitled to participate in or
accrue benefits under any pension, salary deferral or profit sharing plan now existing or hereafter
created for employees of the Company upon terms and conditions no less favorable than those to
which the Company may provide for other senior executive employees.

     3. Covenant Not to Compete.

          3.1 Non-Competition. Employee agrees that during the Employment Period and for the 18-month
period immediately following the termination of his employment with the Company, he shall not,
within a twenty-five (25) mile radius of any radio station transmission tower or studio then owned
or operated, directly or indirectly, by the Company (the “Territory”), engage in any of the
following activities:

               (a) Directly or indirectly enter into the employ or render any service to or act in concert
with any person, partnership, corporation or other entity engaged in the ownership or operation of
radio stations (the “Radio Business”) with a radio station transmission tower or studio located
within the Territory; or

               (b) Directly or indirectly engage in the Radio Business with a radio station transmission
tower or studio located within the Territory on his own account; or

               (c) Become interested in any such Radio Business with a radio station transmission tower or
studio located within the Territory directly or indirectly as an individual, partner, shareholder,
director, officer, principal, agent, employee, consultant, creditor or in any other relationship
or capacity; provided, that the purchase of a publicly traded security of a corporation engaged in
the Radio Business shall not in itself be deemed violative of this Agreement so long as Employee
does not own, directly or indirectly, more than 3% of the securities of such corporation.

          3.2 Non-Solicitation. Employee agrees that during the Employment Period and for the 18-month
period immediately following the termination of his employment with the Company, he shall not
(other than in the regular course of the Company’s business) within the Territory solicit, directly
or indirectly, business of the type then being performed by the Company

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from any person, partnership, corporation or other entity which is a customer of the Company
at the time Employee’s employment with the Company terminates, or was such a customer within the
one-year period immediately prior thereto, or to the knowledge of Employee at the date of
termination of employment, is a person, partnership, corporation or other entity with which the
Company plans to do a substantial amount of business within the one-year period after such
termination of employment.

     4. Non-Inducement and Non-Disclosure.

          4.1 Non-Inducement. Employee agrees that during the Employment Period and for a one-year
period immediately following the termination of his employment with the Company, he shall not
directly or indirectly, individually or on behalf of persons not parties to this Agreement, aid or
endeavor to solicit or induce any of the Company’s employees to leave their employment with the
Company in order to accept employment with Employee or another person, partnership, corporation or
other entity.

          4.2 Non-Disclosure. At no time shall Employee divulge, furnish or make accessible to anyone
(other than in the regular course of the Company’s business) any knowledge or information with
respect to confidential information or data of the Company, or with respect to any confidential
information or data of any of the customers of the Company, or with respect to any other
confidential aspect of the business or products or services of the Company or its customers. Upon
termination of his employment with the Company, Employee shall return to the Company all records,
documents and material containing confidential information of the Company prepared by Employee or
coming into his possession by virtue of his employment with the Company, including all copies
thereof.

     5. Effect of Termination Without Cause. Notwithstanding the provisions of Sections 3 and 4
above, the restrictions imposed upon Employee in Sections 3.1, 3.2, and 4.1 of this Agreement
during the period following the termination of his employment hereunder shall apply in the event
Employee’s employment hereunder is terminated by the Company without cause pursuant to Section
1.4(ii) only for a period of one year provided Employee has received and has elected to accept the
severance pay under Section 2.6(b).

     6. Remedies. Employee acknowledges and agrees that the covenants set forth in Sections 3 and
4 of this Agreement (collectively, the “Restrictive Covenants”) are reasonable and necessary for
the protection of the Company’s business interests and compliance therewith will not deprive
Employee of the ability to earn a suitable living, that irreparable injury will result to the
Company if Employee breaches any of the terms of the Restrictive Covenants, and that in the event
of Employee’s actual or threatened breach of any such Restrictive Covenants, the Company will have
no adequate remedy at law. Employee accordingly agrees that in the event of any actual or
threatened breach by him of any of the Restrictive Covenants, the Company shall be entitled to
immediate temporary injunctive and other equitable relief, without the necessity of showing actual
monetary damages, subject to hearing as soon thereafter as possible. In such event, the periods of
time referred to in Sections 3 and 4 shall be deemed extended for a period equal to the respective
period during which Employee is in breach thereof, in order to provide for injunctive relief and
specific performance for a period equal to the full term thereof. Nothing contained herein shall be
construed as prohibiting the Company from pursuing any other remedies available to it for such

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breach or threatened breach, including the recovery of any damages which it is able to prove.
The covenants contained in Section 4 and 5 shall be construed as separate covenants, and if any
court shall finally determine that the restraints provided for in any such covenants are too broad
as to the geographic area, activity or time covered, said area, activity or time covered may be
reduced to whatever extent the court deems reasonable and such covenants shall be enforced as to
such reduced area, activity or time. Employee shall indemnify and hold Company harmless from any
liability, loss, damage, judgment, cost or expense(including reasonable attorneys’ fees and
expenses) arising out of any claim or suit resulting from Employee’s breach of these covenants or
his failure to perform a duty hereunder.

     7. No Other Non-Compete Agreements. Notwithstanding anything to the contrary contained
herein, Employee hereby represents, warrants and covenants to Company that Employee (i) is not a
party to nor bound by any non-competition, non-solicitation, confidentiality or other agreement of
any kind which would conflict with or prevent his employment hereunder or the full performance of
all of his duties hereunder, and (ii) has not, and will not, wrongfully use any confidential
information or know-how taken from another employer. Employee hereby agrees to indemnify and hold
the Company harmless from any claim, loss, damage and expense hereafter incurred by the Company as
a result of any breach of the foregoing representations, warranties or covenants made by Employee
in this Section.

     8. Life Insurance. The Company may at its discretion and at any time apply for and procure as
owner and for its own benefit and at its own expense, insurance on the life of Employee in such
amounts and in such form or forms as the Company may choose. Employee shall cooperate with the
Company in procuring such insurance and shall, at the request of the Company, submit to such
medical examinations, supply such information and execute such documents as may be required by the
insurance company or companies to whom the Company has applied for such insurance. Employee shall
have no interest whatsoever in any such policy or policies, except that, upon the termination of
Employee’s employment hereunder, Employee shall have the privilege of purchasing any such insurance
from the Company for an amount equal to the actual premiums thereon previously paid by the Company.

     9. Income Tax Treatment. Employee and the Company acknowledge that it is the intention of the
Company to deduct all amounts paid under Section 2 hereof as ordinary and necessary business
expenses for income tax purposes. Employee agrees and represents that he will treat all amounts
paid hereunder as ordinary income for income tax purposes, and should he report such amounts as
other than ordinary income for income tax purposes, he will indemnify and hold the Company harmless
from and against any and all taxes, penalties, interest, costs and expenses, including reasonable
attorneys’ and accounting fees and costs, which are incurred by the Company directly or indirectly
as a result thereof.

     10. Assignment. No party hereto may assign or delegate any of its rights or obligations
hereunder without the prior written consent of the other party hereto, provided, however, the
Company shall have the right to assign all or any part of its rights and obligations under this
Agreement to (i) any affiliate of the Company to which the Business is assigned at any time or (ii)
the purchaser of all or substantially all of the assets of the Company. Except as otherwise
expressly provided herein, all covenants and agreements contained in this Agreement by or on behalf
of any of

11

 

the parties hereto shall bind and inure to the benefit of the respective successors and
permitted assigns of the parties hereto whether so expressed or not.

     11. Severability. Whenever possible, each provision of this Agreement shall be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be prohibited by or invalid under applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of this Agreement.

     12. Counterparts. This Agreement may be executed in multiple counterparts, each of which
shall be deemed an original, but all of which taken together shall constitute one and the same
Agreement.

     13. Descriptive Headings; Interpretation. The descriptive headings in this Agreement are
inserted for convenience of reference only and are not intended to be part of or to affect the
meaning or interpretation of this Agreement. The use of the word “including” in this Agreement
shall be by way of example rather than by limitation.

     14. Notices. All notices, demands or other communications to be given or delivered under or
by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been
duly given if (i) delivered personally to the recipient, (ii) sent to the recipient by reputable
express courier service (charges prepaid) or mailed to the recipient by certified or registered
mail, return receipt requested and postage prepaid, or (iii) transmitted by telecopy to the
recipient with a confirmation copy to follow the next day to be delivered by overnight carrier.
Such notices, demands and other communications shall be sent to the addresses indicated below:

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	(a)
	 	If to Employee:
	 	(b)
	 	If to the Company:
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Anthony A. Vasconcellos
	 	 	 	Regent Communications, Inc.	 	 
	 

	 	 	 	100 East RiverCenter Blvd.
	 	 	 	100 East RiverCenter Blvd.	 	 
	 

	 	 	 	9th Floor
	 	 	 	9th Floor	 	 
	 

	 	 	 	Covington, KY 41011
	 	 	 	Covington, KY 41011	 	 
	 

	 	 	 	Facsimile No. 859/292-0352
	 	 	 	Facsimile No. 859/292-0352	 	 

or to such other address or to the attention of such other person as the recipient party has
specified by prior written notice to the sending party. Date of service of such notice shall be (w)
the date such notice is personally delivered, (x) three days after the date of mailing if sent by
certified or registered mail, (y) one day after the date of delivery to the overnight courier if
sent by overnight courier or (z) the next business day after the date of transmittal by telecopy.

     15. Preamble; Preliminary Recitals. The Preliminary Recitals set forth in the Preamble hereto
are hereby incorporated and made part of this Agreement.

     16. Waiver. No modification, termination or attempted waiver of this Agreement shall be valid
unless in writing and signed by the party against whom the same is sought to be entered. Either
party’s failure to enforce any provision or provisions of this Agreement shall not in any way be
construed as a waiver of any such provision or provisions as to any future violations thereof, nor

12

 

prevent that party thereafter from enforcing each and every other provision of this Agreement.
The rights granted the parties herein are cumulative and the waiver by a party of any single
remedy shall not constitute a waiver of such party’s right to assert all other legal remedies
available to him or it under the circumstances.

     17. Additional Obligations. Both during and after the Employment Period, Employee shall, upon
reasonable notice, furnish the Company with such information as may be in Employee’s possession,
and cooperate with the Company, as may reasonably be requested by the Company (and, after the
Employment Period, with due consideration for Employee’s obligations with respect to any new
employment or business activity) in connection with any litigation in which the Company or any
affiliate is or may become a party. The Company shall reimburse Employee for all reasonable
expenses incurred by Employee in fulfilling Employee’s obligations under this Section 17.

     18. Governing Law. This Agreement shall be construed and enforced in accordance with, and all
questions concerning the construction, validity, interpretation and performance of this Agreement
shall be governed by, the laws of the Commonwealth of Kentucky without giving effect to provisions
thereof regarding conflict of laws.

     19. Effect of Termination. Notwithstanding any termination of Employee’s employment with the
Company or the expiration of this Agreement, unless superseded by a new employment agreement
between Company and Employee, the terms and conditions of this Agreement shall continue in full
force and effect except that the Company shall have no right to require, nor shall Employee have
any obligation to continue, the Employee’s ongoing employment with the Company.

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

[Signatures on following page]

13

 

	 	 	 	 	 
	 	COMPANY:

REGENT COMMUNICATIONS, INC.

 	 
	 	By:  	/s/ John H. Wyant
 	 
	 	 	John H. Wyant, Chairman of the 	 
	 	 	Compensation Committee of the 
Board of
Directors 	 
	 
	 	EMPLOYEE:

 	 
	 	/s/ Anthony A. Vasconcellos
 	 
	 	Anthony A. Vasconcellos 	 
	 

Signature Page to Executive Employment Agreement dated December 28, 2007

14ex10-1.htm

    EXHIBIT
      10.1

     

    CHANGE
      IN CONTROL SEVERANCE AGREEMENT

     

    THIS
      CHANGE IN CONTROL SEVERANCE AGREEMENT (“Agreement”) made December 26, 2007,
      between STERLING BANKS, INC. (the “Corporation”), the holding company for
      STERLING BANK, a New Jersey chartered bank (the “Bank” and collectively with the
      Corporation, the “Employer”), and R Scott Horner (the “Officer”).

     

    WITNESSETH

     

    WHEREAS,
      in order to induce the Officer to be employed by the Bank and in consideration
      of the Officer’s agreeing to be employed by the Bank, the parties desire to
      specify the severance benefits which shall be due the Officer by the Employer
      in
      the event that the Officer’s employment with the Bank is terminated under
      specified circumstances.

     

    NOW
      THEREFORE, in consideration of the mutual agreements herein contained, and
      upon
      the other terms and conditions hereinafter provided, the parties hereby agree
      as
      follows:

     

    1. Definitions.  The
      following words and terms shall have the meanings set forth below for the
      purposes of this Agreement:

     

    (a) Cause.  “Cause”
      shall mean (i) the conviction of, or a plea of guilty or nolo contendere by,
      the
      Officer to a felony, (ii) the issuance by any federal or state banking authority
      of a final order directing that the Corporation or the Employer terminate the
      Officer’s employment, or (iii) the willful engagement by the Officer in
      misconduct, or engagement by the Officer in conduct or lack of conduct
      evidencing dishonesty or neglect, which is materially detrimental to the
      Corporation or the Bank, monetarily or otherwise.

     

    (b) Change
      in Control of the
      Corporation.  A “Change in Control” of the Corporation shall
      mean the occurrence of any of the following:  (i) an event that
      would be required to be reported in response to Item 5.01 of Form 8-K or Item
      6(e) of Schedule 14A of Regulation 14A pursuant to the Securities Exchange
      Act
      of 1934, as amended (“Exchange Act”), or any successor thereto, whether or not
      any class of securities of the Corporation is registered under the Exchange
      Act;
      (ii) any “person” (as such term is used in Sections 13(d) and 14(d) of the
      Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3
      under the Exchange Act), directly or indirectly, of securities of the
      Corporation representing 25% or more of the combined voting power of the
      Corporation’s then outstanding securities; or (iii) during any period of three
      consecutive years, individuals who at the beginning of such period constitute
      the Board of Directors of the Corporation cease for any reason to constitute
      at
      least a majority thereof unless the election, or the nomination for election
      by
      stockholders, of each new director was approved by a vote of at least two-thirds
      of the directors then still in office who were directors at the beginning of
      the
      period.

     

    (c) Code.  “Code”
      shall mean the Internal Revenue Code of 1986, as amended.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    (d) Date
      of
      Termination.  “Date of Termination” shall mean (i) if the
      Officer’s employment is terminated for Cause or for Disability, the date
      specified in the Notice of Termination, (ii) if the Officer’s employment is
      terminated due to the Officer’s death, the date of death, and (iii) if the
      Officer’s employment is terminated for any other reason, the date on which a
      Notice of Termination is given or as specified in such Notice.

     

    (e) Disability.  Termination
      by the Employer of the Officer’s employment based on “Disability” shall mean
      termination because of any physical or mental impairment which qualifies the
      Officer for disability benefits under the applicable long-term disability plan
      maintained by the Employer or any subsidiary or, if no such plan applies, which
      would qualify the Officer for disability benefits under the Federal Social
      Security System.

     

    (f) Effective
      Date.  The Effective Date of this Agreement shall mean the date
      first above written.

     

    (g) Good
      Reason.  Termination by the Officer of the Officer’s employment
      for “Good Reason” shall mean termination by the Officer subsequent to the first
      thirty (30) days following a Change in Control of the Corporation, but prior
      to
      the first twenty-four (24) months following such Change in Control of the
      Corporation, and the occurrence of one of the following:

     

    (i) Without
      the Officer’s express written consent, the assignment by the Bank to the Officer
      of substantial duties that are materially inconsistent with the Officer’s duties
      and responsibilities as an Officer of the Bank immediately prior to a Change
      in
      Control of the Corporation;

     

    (ii) Without
      the Officer’s express written consent, a reduction by the Employer in the
      Officer’s base salary as in effect immediately prior to the date of the Change
      in Control of the Corporation or as the same may be increased from time to
      time
      thereafter or a material reduction in the package of fringe benefits provided
      to
      the Officer;

     

    (iii) The
      principal executive office of the Bank is relocated by more than 45 miles from
      the current principal executive office of the Bank or, without the Officer’s
      express written consent, the Employer requires the Officer to be based anywhere
      other than an area within 45 miles of the location of the Bank’s current
      principal executive office, except for required travel on business of the Bank
      to an extent substantially consistent with the Officer’s present business travel
      obligations;

     

    (iv) Any
      purported termination by the Bank of the Officer’s employment for Disability
      which is not effected pursuant to a Notice of Termination satisfying the
      requirements of paragraph (i) below; or

     

    (v) The
      failure by the Bank to obtain the assumption of and agreement to perform this
      Agreement by any successor as contemplated in Section 5
      hereof.

     

    Notwithstanding
      anything in this Agreement to the contrary, in the event that the Corporation
      receives a Notice of Termination from the Officer notifying the Corporation
      of
      the occurrence of 

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    an
      event
      giving rise to Good Reason within ninety (90) days of the occurrence of such
      event, the Corporation shall be given 30 days from the date it receives such
      Notice of Termination to remedy such event.  In the event that the
      Corporation cures such condition within such 30-day period, the event shall
      not
      give rise to Good Reason. Any amounts payable upon a Good Reason termination
      under this Agreement shall be paid only if the Officer actually terminates
      employment within two (2) years following the initial existence of the event
      giving rise to Good Reason.

     

    (h) IRS.  IRS
      shall mean the Internal Revenue Service.

     

    (i) Notice
      of
      Termination.  Any purported termination of the Officer’s
      employment by the Employer for any reason, including without limitation for
      Cause, Disability or Retirement, or by the Officer for any reason, including
      without limitation for Good Reason, shall be communicated by written “Notice of
      Termination” to the other party hereto.  For purposes of this
      Agreement, a “Notice of Termination” shall mean a dated notice which
      (i) indicates the specific termination provision in this Agreement relied
      upon, (ii) sets forth in reasonable detail the facts and circumstances
      claimed to provide a basis for termination of Officer’s employment under the
      provision so indicated, (iii) specifies a Date of Termination, which shall
      be not less than thirty (30) nor more than ninety (90) days after such Notice
      of
      Termination is given, except in the case of the Employer’s termination of the
      Officer’s employment for Cause, which shall be effective immediately; and (iv)
      is given in the manner specified in Section 6 hereof.

     

    (j) Retirement.  “Retirement”
      shall mean voluntary termination by the Officer in accordance with the
      Employer’s retirement policies, including early retirement, generally applicable
      to Bank’s salaried employees.

     

    2.  Rights
      and Benefits Upon Termination.

     

    (a) General.  The
      Officer’s employment under this Agreement may be terminated at any time for any
      reason by action of the Employer upon sending a Notice of Termination to the
      Officer and the Officer may resign at any time for any reason upon sending
      a
      Notice of Termination to the Employer.

     

    (b) Termination
      Absent a Change
      in Control.  In the event that the Officer’s employment is
      terminated by the Bank for Cause, Disability, Retirement, the Officer’s death,
      or for any other reason or the Officer voluntarily resigns and no Change in
      Control shall have occurred at, or within the twelve (12) months prior to,
      the
      Date of Termination, then the Officer shall have no right to any compensation
      or
      other benefits under this Agreement for any period after the applicable Date
      of
      Termination.

     

    (c) Termination
      Following a
      Change in Control.  In the event that the Employer terminates
      the Officer’s employment for any reason other than Cause or the Officer
      voluntarily terminates employment for any reason, by delivering a Notice of
      Termination to the other party hereto within thirty (30) days following a Change
      in Control of the Corporation, then the Employer shall pay to the Officer a
      lump
      sum cash amount equal to two (2) times the Officer’s salary as of the Date of
      Termination (or prior to any reduction thereof resulting in a Good Reason
      resignation), within thirty (30) days of the Date of Termination.  In
      addition, for a period 

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    of
      two
      (2) years from the Date of Termination, Officer shall receive a continuation
      of
      all normal welfare benefits in effect with respect to Officer during the two
      (2)
      calendar years prior to Officer’s termination of employment, or, if Employer
      cannot provide such benefits because Officer is no longer an employee, within
      thirty (30) days following the Date of Termination, a lump sum cash payment
      equal to the Officer’s cost of obtaining such benefits on his or her own (or
      substantially similar benefits), increased for any federal or state income
      taxes
      the Officer is required to pay on such amount.  The Officer shall also
      be entitled to receive, in a lump sum cash payment within thirty (30) days
      following the Date of Termination, an amount equal to two (2) times the value
      of
      the Bank’s annual reimbursement limit for club dues and automobile expenses in
      effect with respect to Officer during the two (2) calendar years prior to
      Officer’s termination of employment.

     

    (d) Term
      of Employment Following
      a Change in Control.  If a Change in Control of the Corporation
      occurs and the Officer: (i) does not elect to voluntarily terminate employment
      within the first thirty (30) days of such Change in Control; and (ii) remains
      employed with the Bank subsequent to the thirty-day period following such Change
      in Control, the Officer will thereupon be deemed to have been engaged by the
      Bank, and will thereupon be deemed to have accepted employment with the Bank,
      in
      the Officer’s then current position and corporate office, for a term of
      employment of two (2) years from the date of the Change in Control (the “Term of
      Employment”). During the Term of Employment, the Officer will continue to
      perform substantially the same duties that the Officer performed prior to the
      Change in Control. As compensation for the services to be rendered by the
      Officer during the Term of Employment, the Bank will pay to the Officer, the
      Officer’s base salary at the rate in effect at the time of the Change in
      Control, and the Officer will also participate in such benefit plans as are
      generally made available to senior executive employees; provided, however,
      that
      such benefits must be at least comparable to those benefits received by the
      Officer immediately prior to the commencement of the Term of
      Employment.

     

    (A) In
      the
      event that: (1) the Officer’s employment is terminated by the Bank other than
      for Cause, Disability, Retirement, or the Officer’s death during the final
      twenty-three (23) months of the Term of Employment; or (2) the Officer
      terminates employment for Good Reason, then:

     

    (i) The
      Officer shall be entitled to receive an amount equal to the Officer’s salary as
      of the Date of Termination, paid in equal monthly installments commencing with
      the first business day of the month immediately following the Date of
      Termination and continuing through the end of the Term of Employment (subject
      to
      a twenty-three (23) month maximum).

     

    (ii) In
      addition, for the period from the Date of Termination through the end of the
      Term of Employment (subject to a twenty-three (23) month maximum), the Officer
      shall receive a continuation of all normal welfare benefits and other fringe
      benefits, including, but not limited to, club dues and automobile expenses,
      in
      effect with respect to Officer during the two (2) calendar years prior to
      Officer’s termination of employment, or, if Employer cannot provide such
      benefits because Officer is no longer an employee, within thirty (30) days
      following the Date of Termination, a lump sum cash payment equal to the
      Officer’s cost of obtaining such benefits on his or her own (or substantially
      similar benefits), increased for any federal or state income taxes the Officer
      is required to pay on such amount.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (B) Notwithstanding
      the foregoing, in the event the Officer is eligible to receive the payments
      and
      benefits described in Section 2(c), the Officer shall not be eligible
      to receive any of the payments and benefits described in this Section
      2(d).

     

    (e) Notwithstanding
      anything in Section 2 to the contrary, to the extent that payments are made
      from
      the Date of Termination of the Officer’s employment through March 15th of the
      calendar year following such termination, they are intended to constitute
      separate payments for purposes of Treas. Reg. § 1.409A-2(b)(2) and thus payable
      pursuant to the “short-term deferral” rule set forth in Treas. Reg. §
1.409A-1(b)(4); to the extent such payments are made following said March 15th,
      they are intended to constitute separate payments for purposes of Treas. Reg.
§
1.409A-2(b)(2) made upon an involuntary termination from service and payable
      pursuant to Treas. Reg. § 1.409A-1(b)(9)(iii), to the maximum extent permitted
      by said provision.  Notwithstanding the foregoing, if the Corporation
      determines that any other payments hereunder fail to satisfy the distribution
      requirement of Code Section 409A(a)(2)(A), the payment of such benefit shall
      be
      delayed to the minimum extent necessary so that such payments are not subject
      to
      the provisions of Code Section 409A(a)(1).

     

    (f) To
      the
      extent that the payment of any amount due under Section 2 hereof is delayed
      by
      reason of Section 409A(a)(2)(B)(i) of the Code, the Employer shall, on or as
      soon as practicable after the Date of Termination, contribute the amounts
      otherwise payable pursuant to Section 2 hereof, together with six months
      interest thereon at 120% of the applicable federal rate, to a grantor (“rabbi”)
      trust of which the Officer is the sole beneficiary (subject to the claims of
      the
      Employer’s creditors, as required pursuant to applicable Internal Revenue
      Service guidance to prevent the imputation of income to the Officer prior to
      distribution from the trust), pursuant to which the amounts payable pursuant
      to
      Section 2 hereof shall be payable from the trust, together with the appropriate
      amount of interest at 120% of the applicable federal rate, on or as soon as
      practicable and in any event within five (5) days after the date that is six
      (6)
      months after the Date of Termination, provided that to the extent such amount
      is
      paid to the Officer by the Employer, the trust shall pay such amount to the
      Employer.

     

    (g) To
      the
      extent it is determined that any benefits under this Section are taxable to
      the
      Officer, they are intended to constitute payments made upon an involuntary
      termination from service and payable pursuant to Treas. Reg.
§1.409A-1(b)(9)(iii), to the maximum extent permitted by said provision and
      to
      the extent the payment of such taxable benefits would exceed the specified
      time
      period under Treas. Reg. §1.409A-1(b)(9)(iii), Officer shall be paid, within 15
      days of the Date of Termination, a lump sum amount in cash equal to the present
      value (determined based upon 120% of the then prevailing monthly short-term
      applicable federal rate) of the Employer’s cost, as of the Date of Termination,
      of otherwise providing such benefit beyond the specified time period under
      Treas. Reg. §1.409A-1(b)(9)(iii).

     

    (h) It
      is the
      intention of the parties that no payment be made or benefit provided to the
      Officer pursuant to this Agreement that would constitute an “excess parachute
      payment” within the meaning of Section 280G of the Code and any regulations
      thereunder, thereby resulting in a loss of an income tax deduction by the
      Corporation or the imposition of an excise tax on the Officer under Section
      4999
      of the Code. If the independent accountants serving as auditors for the
      Corporation on the date of a Change in Control (or any other accounting firm
      designated by the Corporation) determine that some or all of the payments or
      benefits scheduled 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    under
      this Agreement, as well as any other payments or benefits on a Change in
      Control, would be nondeductible by the Corporation under Section  280G
      of the Code, then the payments scheduled under this Agreement will be reduced
      to
      one dollar less than the maximum amount which may be paid without causing any
      such payment or benefit to be nondeductible. The determination made as to the
      reduction of benefits or payments required hereunder by the independent
      accountants shall be binding on the parties. The Officer shall have the right
      to
      designate within a reasonable period, which payments or benefits will be
      reduced; provided, however, that if no direction is received from Officer,
      the
      Corporation shall implement the reductions in its discretion.

     

    (i) Execution
      of Amendment and
      Release. As a condition to the Officer's right to receive the payments
      and benefits otherwise required under this section, he shall execute and deliver
      to the Employer a form of Release Agreement substantially in the form of Exhibit
      A, attached hereto.

     

    3. Mitigation;
      Exclusivity of Benefits.

     

    (a) The
      Officer shall not be required to mitigate the amount of any benefits hereunder
      by seeking other employment or otherwise.

     

    (b) The
      specific arrangements referred to herein are not intended to exclude any other
      benefits that may be available to the Officer upon a termination of employment
      with the Employer pursuant to employee benefit plans of the Employer or
      otherwise.

     

    4. Withholding.  All
      payments required to be made by the Employer hereunder to the Officer shall
      be
      subject to the withholding of such amounts, if any, relating to tax and other
      payroll deductions as the Employer may reasonably determine should be withheld
      pursuant to any applicable law or regulation.

     

    5. Assignability.  The
      Employer may assign this Agreement and its rights and obligations hereunder
      in
      whole, but not in part, to any corporation, bank or other entity with or into
      which the Employer may hereafter merge or consolidate or to which the Employer
      may transfer all or substantially all of its assets, if in any such case said
      corporation, bank or other entity shall by operation of law or expressly in
      writing assume all obligations of the Employer hereunder as fully as if it
      had
      been originally made a party hereto, but may not otherwise assign this Agreement
      or its rights and obligations hereunder.  The Officer may not assign
      or transfer this Agreement or any rights or obligations hereunder.

     

    6. Notice.  For
      the purposes of this Agreement, notices and all other communications provided
      for in this Agreement shall be in writing and shall be deemed to have been
      duly
      given when delivered or mailed by first-class certified or registered mail,
      return receipt requested, postage prepaid, addressed to the respective addresses
      set forth below:

    

      
        	
                To
                  the Employer:

              	
                Secretary

              
	 	
                Sterling
                  Bank

              
	 	
                3100
                  Route 38

              
	 	
                Mount
                  Laurel, New Jersey 08054

              

      

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      
        	
                To
                  the Officer:

              	
                R
                  Scott Horner

              
	 	
                17
                  Lowell Dr.

              
	 	
                Marlton,
                  NJ 08053

              

      

    

     

     

    7. Amendment;
      Waiver.  No provisions of this Agreement may be modified,
      waived or discharged unless such waiver, modification or discharge is agreed
      to
      in writing and signed by the Officer and such officer or officers as may be
      specifically designated by the Board of Directors of the Employer to sign on
      its
      behalf.  No waiver by any party hereto at any time of any breach by
      any other party hereto of, or compliance with, any condition or provision of
      this Agreement to be performed by such other party shall be deemed a waiver
      of
      similar or dissimilar provisions or conditions at the same or at any prior
      or
      subsequent time.

     

    8. Governing
      Law.  The validity, interpretation, construction and
      performance of this Agreement shall be governed by the substantive laws of
      the
      State of New Jersey and otherwise by the laws of the United States where
      applicable.

     

    9. Nature
      of
      Employment and Obligations.

     

    (a) Nothing
      contained herein shall be deemed to create other than a terminable at will
      employment relationship between the Employer and the Officer, and the Employer
      may terminate the Officer’s employment at any time, subject to providing any
      payments specified herein in accordance with the terms hereof.

     

    (b) Nothing
      contained herein shall create or require the Employer to create a trust of
      any
      kind to fund any benefits that may be payable hereunder, and to the extent
      that
      the Officer acquires a right to receive benefits from the Employer hereunder,
      such right shall be no greater than the right of any unsecured general creditor
      of the Employer.

     

    10.  Term
      of Agreement.  The term of this Agreement shall run from the
      Effective Date through and including October 1, 2008. Prior to October 1, 2008
      and each October 1 thereafter, this Agreement shall extend for an additional
      year until such time as the Board of Directors of the Employer or the Officer
      gives notice in accordance with the terms of Section 6 hereof of its or the
      Officer’s election, respectively, not to extend the terms of this
      Agreement.  Such written notice of the election not to extend must be
      given not less than thirty (30) days prior to any such October 1.  If
      any party gives timely notice that the term will not be extended as of any
      October 1, then this Agreement shall terminate at the conclusion of its
      remaining term.  References herein to the term of this Agreement shall
      refer both to the initial term and successive terms.

     

    11. Headings.  The
      Section headings contained in this Agreement are for reference purposes
      only and shall not affect in any way the meaning or interpretation of this
      Agreement.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    12. Validity.  The
      invalidity or unenforceability of any provision of this Agreement shall not
      affect the validity or enforceability of any other provisions of this Agreement,
      which shall remain in full force and effect.

     

    13. Counterparts.  This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be an original but all of which together will constitute one and
      the
      same instrument.

     

    14. Entire
      Agreement.  This Agreement embodies the entire agreement
      between the Employer and the Officer with respect to the matters agreed to
      herein.  All prior agreements between the Employer and the Officer
      with respect to the matters agreed to herein are hereby superseded and shall
      have no force or effect.

     

    IN
      WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
      the
      day and year first above written.

    

      
        	
                Attest

              	
                STERLING
                  BANK

              
	 	 
	
                /s/
                  Dale F. Braun,
                  Jr.

              	
                By:
                  /s/
                  Robert H.
                  King 

              
	
                Dale
                  F. Braun, Jr.

              	
                Robert
                  H. King

              
	
                Senior
                  Vice President

              	
                President
                  and Chief Executive Officer

              
	 	 
	 	 
	 	
                STERLING
                  BANKS, INC.

              
	 	 
	 	
                By:
                  /s/
                  Robert H.
                  King 

              
	 	
                Robert
                  H. King

              
	 	
                President
                  and Chief Executive Officer

              
	 	 
	 	 
	 	
                By:
                  /s/
                  R. Scott
                  Horner 

              
	 	 
	 	
                “Officer”

              

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

EXHIBIT
      A

    

    Form
      of Release

    

    RELEASE
      AGREEMENT

    

    THIS
      RELEASE AGREEMENT(the “Release Agreement”) is made as of this ______ day of
      _________,20__, by and between STERLING BANKS, INC. (the “Corporation”), the
      holding company for STERLING BANK, a New Jersey chartered bank (the “Bank” and
      collectively with the Corporation, the “Employer”) and ___________________ (the
“Officer”). In consideration of the mutual agreements set forth below, the
      Officer and the Employer hereby agree as follows:

     

    1. General
      Release. In
      consideration of the payments and benefits required to be provided to the
      Officer under the Change in Control Severance Agreement between the Employer
      and
      the Officer, dated ________________ (the “Agreement”) and after consultation
      with counsel, the Officer, for himself and on behalf of each of the Officer's
      heirs, executors, administrators, representatives, agents, successors and
      assigns (collectively, the “Releasors”) hereby irrevocably and unconditionally
      releases and forever discharges the Employer, its majority owned subsidiaries
      and affiliated companies, and each of its officers, employees, directors,
      shareholders and agents (collectively, the “Releasees”) from any and all claims,
      actions, causes of action, rights, judgments, obligations, damages, demands,
      accountings or liabilities of whatever kind or character (collectively,
“Claims”), including, without limitation, any Claims under any federal, state,
      local or foreign law, that the Releasors may have, or in the future may possess,
      arising out of (i) the Officer's employment relationship with and service as
      an
      employee, officer or director of the Employer and any of its majority-owned
      subsidiaries and affiliates, or the termination of the Officer's service in
      any
      and all of such relevant capacities, (ii) the Agreement, or (iii) any event,
      condition, circumstance or obligation that occurred, existed or arose on or
      prior to the date hereof; provided, however, that the release set forth herein
      shall not apply to (iv) the payment and/or benefit obligations of the Employer
      under the Agreement, and (v) any claims Officer, may have under any plans or
      programs not covered by the Agreement in which Officer participated and under
      which Officer has accrued and become entitled to a benefit. Except as provided
      in the immediately preceding sentence, the Releasors further agree that the
      payments and benefits the Employer makes and provides as required by the
      Agreement shall be in full satisfaction of any and all Claims for payments
      or
      benefits, whether express or implied, that the Releasors may have against the
      Employer or any of its affiliates arising out of the Officer's employment
      relationship under the Agreement and the Officer's service as an employee,
      officer or director of the Employer under the Agreement or the termination
      thereof, as applicable.

     

    2. Specific
      Release of ADEA and
      CEPA Claims. In further consideration of the payments and benefits
      provided to the Officer under the Agreement, the Releasors hereby
      unconditionally release and forever discharge the Releasees from any and all
      Claims that the Releasors may have in connection with the Officer's employment
      or termination of employment, arising under the Federal Age Discrimination
      in
      Employment Act of 1967, as amended, and the applicable rules and regulations
      promulgated thereunder (“ADEA”), under the New Jersey Conscientious Employee
      Protection Act (“CEPA”), or any other applicable state or federal law

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    directly
      affecting the employment relationship between the Releasor and the Releasee.
      By
      signing this Release Agreement, the Officer hereby acknowledges and confirms
      the
      following:(i) the Officer was advised by the Employer or his then employer
      in
      connection with his termination of employment or retirement to consult with
      an
      attorney of his choice prior to signing this Release Agreement and to have
      such
      attorney explain to the Officer the terms of this Release Agreement, including,
      without limitation, the terms relating to the Officer's release of claims
      arising under the ADEA and the CEPA, and the Officer has in fact consulted
      with
      an attorney; (ii) the Officer was given a period of not fewer than 21 days
      to
      consider the terms of. this Release Agreement prior to its signing; and (iii)
      the Officer knowingly and voluntarily accepts the terms of this Release
      Agreement.

     

    3. No
      Assignment. The
      Officer represents and warrants that he has not assigned any of the Claims
      being
      released hereunder.

     

    4. Claims.
      The Officer
      represents that he has not instituted, assisted or otherwise participated in
      connection with, any action, complaint, claim, charge, grievance, arbitration,
      lawsuit, or administrative agency proceeding, or action at law or otherwise
      against the Releasees. The Officer agrees that he shall not hereafter institute,
      assist or otherwise participate in connection with any arbitration or lawsuit
      asserting Claims released by Section 1.

     

    5. Revocation.
      This
      Release Agreement may be revoked by the Officer within the seven-day period
      commencing on the date the Officer signs this Release Agreement (the “Revocation
      Period”). In the event of any such revocation by the Officer, all obligations of
      the parties under this Release Agreement shall terminate and be of no further
      force and effect as of the date of such revocation. No such revocation by the
      Officer shall be effective unless it is in writing and signed by the Officer
      and
      received by the Employer prior to the expiration of the Revocation Period.
      If
      this Release Agreement is revoked, the Officer agrees to return to the Employer
      any payments made to him in connection with the Release Agreement other than
      compensation theretofore earned in the ordinary course. In the event of
      revocation, the Officer shall not be entitled to any payment or benefit under
      the Agreement, the receipt of which is conditioned on the Officer's execution
      of
      this Release Agreement and the absence of any revocation prior to the expiration
      of the Revocation Period.

     

    6. Non-Disparagement.
      The Officer agrees not to disparage or criticize the Releasees, or any of them,
      or otherwise speak of Releasees, or any of them, in any negative or unflattering
      way to anyone with regard to any matters relating to the Officer's employment
      by
      the Employer or any of its affiliated companies or the business or employment
      practices of such business entities. The Employer agrees, on behalf of itself
      and its affiliated companies, not to disparage or criticize the Officer or
      otherwise speak of the Officer in any negative or unflattering way to anyone
      with regard to any matters relating to the Officer's employment with the
      Employer or any of its affiliated companies. The parties understand that this
      provision is a material provision of this Release Agreement. This section shall
      not operate as a bar to (i) statements reasonably necessary to be made in any
      judicial, administrative or arbitral proceeding, or (ii) internal communications
      between and among the employees of the Employer and its affiliated companies
      with a job-related need to know about this Release Agreement or matters related
      to the administration of this Release Agreement,

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Employer (on its behalf and on behalf of its affiliated
      companies) and the Officer, intending to be legally bound, have executed this
      Release Agreement on the day and year first above written.

     

    

      
        	
                Attest

              	
                STERLING
                  BANK

              
	 	 
	 	
                By:
                  _____________

              
	
                _____________________

              	
                Robert
                  H. King

              
	
                Secretary

              	
                President
                  and Chief Executive Officer

              
	 	 
	 	 
	 	
                STERLING
                  BANKS, INC.

              
	 	 
	 	
                By:
                  __________________

              
	 	
                Robert
                  H. King

              
	 	
                President
                  and Chief Executive Officer

              
	 	 
	 	 
	 	
                By:
                  ___________________

              
	 	 
	 	
                “Officer”

              

      

    

     

    11

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