EMPLOYMENT AGREEMENT
Exhibit 10.7
THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated as of this 23rd day of June, 2017, is made by and between (i) Southern National Bancorp of Virginia, Inc. (“Company”) and Sonabank (the “Bank”) (collectively, the “Employer”) and (ii) Xxx X. Xxxxxxx (the “Executive”).
WHEREAS, the Company and Eastern Virginia Bankshares, Inc. (“EVBS”) have entered into an Agreement and Plan of Merger dated December 13, 2016 (the “Merger Agreement”) whereby EVBS will merge with and into the Company (the “Merger”).
WHEREAS, Executive is currently employed as the President and Chief Executive Officer of EVBS and its wholly-owned banking subsidiary, EVB.
WHEREAS, effective upon the closing of the Merger (the “Effective Date”), the Company and the Bank wish to employ Executive as the President and Chief Executive Officer (“CEO”) of the Company and the Bank, on the terms and conditions herein contained.
WHEREAS, Executive wishes to accept such employment on the terms and subject to the conditions set forth herein.
NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein, conditioned upon the closing of the Merger, the parties agree as follows:
(a) Executive shall be employed as President and Chief Executive Officer of the Company and the Bank (the “Position”) on the terms and subject to the conditions of this Agreement. Executive accepts such employment and agrees to perform the managerial duties and responsibilities of the Position, as may be assigned to Executive by the Board of Directors of the Company or the Bank. Unless otherwise specified hereafter, any services performed by Executive shall be for the benefit of the Bank and, therefore, any payments or benefits paid to Executive pursuant to this Agreement shall be the sole responsibility of the Bank; provided, however, the Bank’s obligation to make any payments owed to Executive under this Agreement shall be discharged to the extent compensation payments are made by the Company.
(b) Executive shall devote his best efforts and full time to rendering services on behalf of the Employer in furtherance of its best interests. Executive shall comply with all policies, standards and regulations of the Employer now or hereafter promulgated, and shall perform his duties under this Agreement to the best of his abilities and in accordance with standards of conduct applicable to chief executive officers of banks.
Initial Term, unless either party gives written notice of non-renewal no later than ninety (90) days prior to the end of the Initial Term. This Agreement shall continue to be further extended for an additional two-year term at the end of each Renewal Term, unless either party gives written notice of non-renewal no later than ninety (90) days prior to the end of the applicable Renewal Term. During the Initial Term or any Renewal Term, this Agreement may be terminated at any time pursuant to Section 6 or Section 16 below. The term of this Agreement, including all Renewal Terms, if any, is referred to herein as the “Term.”
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by the Board of Directors. Except where offset of, or recoupment from, incentive compensation covered by Code Section 409A (as defined in Section 19 below) is prohibited by Code Section 409A, to the extent allowed by law and as determined by the Compensation Committee, Executive agrees that such repayment may, in the discretion of the Compensation Committee, be accomplished by withholding of future compensation to be paid to Executive by the Employer. Any recovery of incentive compensation covered by Code Section 409A shall be implemented in a manner which complies with Code Section 409A.
(b) SERP. Executive shall be entitled to the benefits under the Eastern Virginia Bankshares, Inc. Supplemental Executive Retirement Plan effective January 1, 2008, as amended effective November 20, 2014 (the “EVBS SERP”), as amended from time to time in accordance with its terms.
(e) Club Dues. The Employer shall pay (or reimburse Executive for) Executive’s assessment fees and membership dues at a private club selected by Executive in Richmond, Virginia incurred during the Term. To the extent the Employer reimburses Executive for any such fees or dues, such reimbursements shall be made no later than the last day of the calendar month following the calendar month in which Executive submits the request for payment of the reimbursable expense, which shall be submitted no later than sixty (60) days after the expense is incurred.
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(i) Executive’s willful misconduct in connection with the performance of Executive’s duties;
(ii) Executive’s misappropriation or embezzlement of funds or material property of the Employer or any affiliate;
(iii) Executive’s fraud or dishonesty with respect to the Employer or any affiliate;
(iv) Executive’s failure to perform any of the material duties and responsibilities required by the Position (other than by reason of Incapacity), or Executive’s failure to follow reasonable instructions or policies of the Employer, in either case after being advised in writing of such failure and being given a reasonable opportunity and period (as determined by the Employer in its reasonable business judgment) to remedy such failure (if such breach or violation is capable of being remedied), which period shall be not less than thirty (30) days;
(v) Executive’s conviction of, indictment for (or the procedural equivalent), or entering of a guilty plea or plea of no contest with respect to any felony or any misdemeanor involving moral turpitude;
(vi) Executive’s breach of a material term of this Agreement, or violation in any material respect of any policy, code or standard of behavior generally applicable to officers of the Company and the Bank, after being advised in writing of such breach or violation and being given a reasonable opportunity and period (as determined by the Employer in its reasonable business judgment) to remedy such breach or violation (if such breach or violation is capable of being remedied), which period shall be not less than thirty (30) days;
(vii) Executive’s willful violation of any final cease and desist order;
(viii) Executive’s breach of any fiduciary duty owed to the Employer or its affiliates; or
(ix) Executive’s engaging in conduct that, if it became known by any regulatory or governmental agency or the public, would be or is reasonably likely to result, in the good faith judgment of the Employer, in material injury to the Company or the Bank, monetarily or otherwise.
(i) The assignment of duties to Executive by the Employer which result in Executive having significantly less authority or responsibility than he has on the Effective Date, without his express written consent;
(ii) The removal of Executive from the Position or any failure to nominate Executive for election to the Board of Directors, without his express written consent;
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(iii) Requiring Executive to maintain his principal office outside of the Commonwealth of Virginia unless the Employer moves its principal executive offices to the place to which Executive is required to move;
(iv) A reduction by the Employer of Executive’s base salary, as the same may have been increased from time to time;
(v) The failure of the Employer to provide Executive with substantially the same fringe benefits that are provided to him on the Effective Date;
(vi) The failure of the Employer to comply with any material term of this Agreement;
(vii) The failure of the Employer to obtain the assumption of, and agreement to perform, this Agreement by any successor as contemplated in Section 17 below; or
(viii) Notice by the Employer to Executive that the Employer does not intend to renew the Term of this Agreement for a Renewal Term upon the expiration of the Initial Term or the then-current Renewal Term.
Executive is required to provide written notice to the Employer detailing the existence of a condition described above in this Section 6(c) within a thirty (30) day period after the initial existence of the condition, and the Employer shall have thirty (30) days after notice to remedy the condition without liability. In addition to the foregoing requirements, to trigger payment under this Section 6(c), Executive must also terminate employment within ninety (90) days after the initial occurrence of the event constituting “Good Reason” and the Employer must have been allowed the full opportunity to cure, as set forth above.
Notwithstanding the above, “Good Reason” shall not include any resignation by Executive where Cause for Executive’s termination by the Employer exists under Section 6(b), or there is an isolated, insubstantial or inadvertent action by the Employer (provided that such action is remedied by the Employer after written notice by Executive); and shall not include any action by the Employer taken before the Effective Date of this Agreement.
7. Obligations Upon Termination.
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or Executive terminates his employment for Good Reason, Executive shall be entitled to receive, subject to any applicable delay set forth in Section 19 below:
(i) The Accrued Obligations (as defined in Section 6(a));
(ii) Subject to Executive's signing, delivering and not revoking the Release attached as Exhibit A, which Release must be signed, delivered and not revoked within the period set forth in the Release:
(A) Payment of a monthly amount equal to one-twelfth (1/12) his rate of annual base salary in effect immediately preceding such termination for thirty-six (36) months beginning upon his termination of employment, with such payments to be made in accordance with the Employer’s established payroll practices (but no less frequently than monthly) (the “Severance Benefit”);
(B) For thirty-six (36) months after the date of termination, Executive shall receive coverage under all employee health insurance programs or plans (medical, dental and vision) (“Health Care Plans”) in which Executive and/or his spouse and any of his dependents were entitled to participate immediately prior to such termination, with the Employer paying the full monthly cost of the premium therefor (the “Heath Care Continuance Benefit”), provided that the continued participation of Executive and/or his spouse and any of his dependents is possible under the general terms and provisions of the Health Care Plans. If the Employer cannot maintain such coverage for Executive or his spouse or dependents under the terms and provisions of the Health Care Plans (or where such continuation would adversely affect the tax status of the Health Care Plans pursuant to which the coverage is provided), the Employer shall provide the Health Care Continuance Benefit by either providing substantially identical benefits directly or through an insurance arrangement or by paying Executive the estimated cost of the expected premium for thirty-six (36) months after the date of termination with such payments to be made in accordance with the Employer’s established payroll practices (but no less frequently than monthly) for employees generally for the period during which such cash payments are to be provided. To the extent allowed by applicable law, the 36-month Health Care Continuance Benefit period shall run concurrently with the period for which Executive and/or his spouse and any of his dependents would be eligible for continuation coverage under the Consolidated Omnibus Reconciliation Act of 1985 (the “COBRA Period”), although the 36-month Health Care Continuance Benefit period will continue to run after the COBRA Period has ended;
(C) Complete out-placement services, including job search services, paid by the Employer up to a total of Ten Thousand Dollars ($10,000.00). The services will be provided by a recognized out-placement organization selected by Executive with the approval of the Employer (which approval will not be unreasonably withheld). The services will be provided for up to two (2) years after the date Executive’s employment by the Employer terminates (“Outplacement Services”); and
(D) An additional amount, payable in a lump sum on the date of termination, equal to the average of the annual bonus compensation pursuant to Section 3(b) above earned by Executive for the three (3) immediately preceding complete fiscal years or such fewer number of complete fiscal years as Executive may have been employed by the Employer. For the
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avoidance of any doubt, if the Employer makes a determination to award no annual bonus compensation to Executive for a year, such determination shall be considered to result in a bonus award of Zero Dollars ($0.00) and that shall be the amount used in calculating the average of the annual bonus compensation for purposes of this Section 7(a)(ii)(D).
Notwithstanding the foregoing, and in addition to the Employer’s remedies set forth in Section 7(f), all such payments and benefits under Section 7(a) otherwise to be made after Executive’s termination of employment shall cease to be paid, and the Employer shall have no further obligation with respect thereto, in the event Executive, without the consent of the Employer, engages in any activity prohibited in Section 7 or any of its sub-parts.
(b) Non-Competition. In consideration for the Employer’s entering into this Agreement and in exchange for the benefits promised herein, and other valuable consideration, Executive agrees that Executive will not engage in “Competition” for a period of twelve (12) months after Executive’s employment with the Employer ceases for any reason, including termination of employment upon the expiration or non-renewal of this Agreement at the end of the Initial Term or any Renewal Term. For purposes hereof, “Competition” means Executive’s performing duties that are the same as or substantially similar to those duties performed by Executive for the Company or the Bank or its affiliates during the twelve (12) months prior to the cessation of Executive’s employment, as an officer, a director, an employee, a partner or in any other capacity, within a twenty-five (25) mile radius of the headquarters of the Company and the headquarters of the Bank (or any Virginia headquarters of any successor of any of them in the event of a merger consummated as of the last day of employment), as such locations exist as of the date Executive’s employment ceases, if those duties are performed for a bank holding company of, or for, a bank or other financial institution that provides products or services that are the same as or substantially similar to, and competitive with, any of the products or services provided by the Bank at the time Executive’s employment ceases.
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8. Confidentiality. As an employee of the Employer, Executive will have access to and may participate in the origination of non-public, proprietary and confidential information relating to the Company and the Bank and/or their affiliates and Executive acknowledges a fiduciary duty owed to the Employer and its affiliates not to disclose any such information. Confidential information may include, but is not limited to, trade secrets, customer lists and information, internal corporate planning, methods of marketing and operation, and other data or information of or concerning the Employer and its affiliates or their customers that is not generally known to the public or generally in the banking industry. Executive agrees that for a period of five (5) years following the cessation of employment, Executive will not use or disclose to any third party any such confidential information, either directly or indirectly, except as may be authorized in writing specifically by the Employer; provided, however that to the extent the information covered by this Section 8 is otherwise protected by the law, such as “trade secrets,” as defined by the Virginia Uniform Trade Secrets Act, or customer information protected by banking privacy laws, that information shall not be disclosed or used for however long the legal protections applicable to such information remain in effect.
Nothing in this Agreement restricts or prohibits Executive or Executive’s counsel from initiating communications directly with, responding to any inquiry from, volunteering information to, or providing testimony before a self-regulatory authority or a governmental, law
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enforcement or other regulatory authority, including the U.S. Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Department of Justice, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Congress, and any Office of Inspector General (collectively, the “Regulators”), from participating in any reporting of, investigation into, or proceeding regarding suspected violations of law, or from making other disclosures that are protected under or from receiving an award for information provided under the whistleblower provisions of state or federal law or regulation. Executive does not need the prior authorization of the Company to engage in such communications with the Regulators, respond to such inquiries from the Regulators, provide confidential information or documents containing confidential information to the Regulators, or make any such reports or disclosures to the Regulators. Executive is not required to notify the Employer that Executive has engaged in such communications with the Regulators. Executive recognizes and agrees that, in connection with any such activity outlined above, Executive must inform the Regulators that the information Executive is providing is confidential.
Federal law provides certain protections to individuals who disclose a trade secret to their attorney, a court, or a government official in certain, confidential circumstances. Specifically, federal law provides that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret under either of the following conditions:
· | Where the disclosure is made (a) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (b) solely for the purpose of reporting or investigating a suspected violation of law; or |
· | Where the disclosure is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. |
Federal law also provides that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (a) files any document containing the trade secret under seal; and (b) does not disclose the trade secret, except pursuant to court order.
9. Termination After Change of Control.
(i) The Accrued Obligations (as defined in Section 6(a));
(ii) Subject to Executive's signing, delivering and not revoking the Release attached as Exhibit A, which Release must be signed, delivered and not revoked within the period set forth in the Release:
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(A) The Severance Benefit (as defined in Section 7(a)(ii)(A));
(B) The Heath Care Continuance Benefit (as defined in Section 7(a)(ii)(B));
(C) The Outplacement Services (as defined in Section 7(a)(ii)(C)); and
(D) An additional amount, payable in a lump sum on the date of termination, equal to three (3) times the highest annual bonus compensation pursuant to Section 3(b) above earned by Executive for the three (3) immediately preceding complete fiscal years or such fewer number of complete fiscal years as Executive may have been employed by the Employer. For the avoidance of any doubt, if the Employer makes a determination to award no annual bonus compensation to Executive for the three (3) immediately preceding complete fiscal years or such fewer number of complete fiscal years as Executive may have been employed by the Employer, then no amount is payable under this Section 9(a)(ii)(D).
(i) In the event the independent accountants serving as auditors for the Employer on the date of a change of control within the meaning of Code Section 280G (or any other accounting firm designated by the Employer) determine that some or all of the payments or benefits scheduled under this Agreement, as well as any other payments or benefits on such change of control, would be nondeductible by the Employer under Code Section 280G, then the payments scheduled under this Agreement and all other agreements between Executive and the Employer 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. Any reduction of benefits or payments required to be made under this Section 9(c)(i) shall be taken in the following order: first from cash compensation and then from payments or benefits not payable in cash, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time from the date of determination.
(ii) Notwithstanding the foregoing Section 9(c)(i), in the event the independent accountants serving as auditors for the Employer on the date of a change of control within the meaning of Code Section 280G (or any other accounting firm designated by the Employer) determine that the net economic benefit to Executive after
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payment of all income and excise taxes is greater without giving effect to Section 9(c)(i) than Executive’s net economic benefit after a reduction by reason of the application of Section 9(c)(i), then Section 9(c)(i) shall be a nullity and without any force or effect. Any decisions regarding the requirement or implementation of the reductions to compensation described in Section 9(c)(i) shall be made by the independent accountants serving as auditors for the Employer on the date of a change of control within the meaning of Code Section 280G (or any other accounting firm designated by the Employer), shall be made at the Employer’s expense and shall be binding on the parties.
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Executive’s termination of employment for any reason or at such earlier time or times as the Board of Directors of the Company or the Bank or its designee may specify.
12. Suspension or Temporary Prohibition of Services; Permanent Prohibition of Services. If Executive is suspended and/or temporarily prohibited from participating in the conduct of the Employer’s affairs by a notice served pursuant to the Federal Deposit Insurance Act, the Employer’s obligations under this Agreement shall be suspended as of the date of service unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Employer may in its discretion (a) pay Executive all or part of the compensation withheld while its contract obligations were suspended, and (b) reinstate (in whole or in part) any of its obligations which were suspended. If Executive is removed and/or permanently prohibited from participating in the conduct of the Employer’s affairs by an order issued under the Federal Deposit Insurance Act or the Code of Virginia, all obligations of the Employer under this Agreement shall terminate as of the effective date of the order, but vested rights of the parties shall not be affected.
14. Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia. The parties further agree that venue in the event of a dispute shall be exclusively in the Circuit Court of Henrico, Virginia, or the applicable federal court encompassing that jurisdiction, at the sole option of the Employer, and Executive agrees not to object to venue.
To the Employer: | Chairman of the Board of Directors |
Southern National Bancorp of Virginia, Inc. | |
0000 Xxx Xxxxxxxx Xxxxx | |
XxXxxx, Xxxxxxxx 00000 | |
To Executive: | Xxx X. Xxxxxxx |
At your home address as shown on the records of the Employer. |
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however, and notwithstanding anything in this Agreement to the contrary, the Employer or its successor has the unilateral right to terminate this Agreement and pay out the full value of all benefits hereunder in one lump sum payment in connection with a Change of Control pursuant to, and in compliance with, Treasury Regulation § 1.409A-3(j)(4)(ix)(B).
19. Code Section 409A Compliance.
(a) The intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the Internal Revenue Code of 1986, as amended, and applicable guidance thereunder (“Code Section 409A”) or comply with an exemption from the application of Code Section 409A and, accordingly, all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Code Section 409A.
(b) A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the form or timing of payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” (within the meaning of Code Section 409A) and, for purposes of any such provision of this Agreement under which (and to the extent) deferred compensation subject to Code Section 409A is paid, references to a “termination” or “termination of employment” or like references shall mean separation from service. A “separation from service” shall not occur under Code Section 409A unless such Executive has completely severed Executive’s relationship with the Employer or Executive has permanently decreased Executive’s services to twenty percent (20%) or less of the average level of bona fide services over the immediately preceding thirty-six (36) month period (or the full period if Executive has been providing services for less than thirty-six (36) months). A leave of absence shall only trigger a termination of employment that constitutes a separation from service at the time required under Code Section 409A. If Executive is deemed on the date of separation from service with the Employer to be a “specified employee”, within the meaning of that term under Code Section 409A(a)(2)(B) and using the identification methodology selected by the Employer from time to time, or if none, the default methodology, then with regard to any payment or benefit that is required to be delayed for six (6) months in compliance with Code Section 409A(a)(2)(B), such
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payment or benefit shall be paid with interest on the earlier of (i) the first day of the seventh (7th) month measured from the date of Executive’s separation from service or (ii) the date of Executive’s death. The amount of interest to be paid shall be based on the prime rate of interest in effect on the first day of the month following the Executive's separation from service as reported in the Wall Street Journal. In the case of benefits required to be delayed under Code Section 409A, however, Executive may pay the cost of benefit coverage, and thereby obtain benefits, during such six (6) month delay period and then be reimbursed by the Employer thereafter on the first day of the seventh (7th) month following the date of Executive’s separation from service or, if earlier, on the date of Executive’s death.
(c) With regard to any provision herein that provides for reimbursement of expenses or in-kind benefits subject to Code Section 409A, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, and (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, provided that the foregoing clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Code Section 105(b) solely because such expenses are subject to a limit related to the period the arrangement is in effect. All reimbursements shall be reimbursed in accordance with the Employer’s reimbursement policies but in no event later than the calendar year following the calendar year in which the related expense is incurred.
(d) When, if ever, a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within ten (10) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Employer.
(e) Notwithstanding any other provision of this Agreement, Executive shall be solely liable, and the Employer shall not be liable in any way to Executive if any payment or benefit which is to be provided pursuant to this Agreement and which is considered deferred compensation subject to Code Section 409A otherwise fails to comply with, or be exempt from, the requirements of Code Section 409A.
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or the right of any party hereafter to enforce or exercise its rights under each and every provision in accordance with the terms of this Agreement.
25. Entire Agreement. Except as otherwise provided herein, this Agreement constitutes the entire agreement of the parties with respect to the matters addressed herein and, upon the Effective Date, it supersedes all other prior agreements and understandings, both written and oral, express or implied, with respect to the subject matter of this Agreement, including but not limited to Executive’s Amended and Restated Employment Agreement, effective January 1, 2008, as amended, effective March 19, 2015 (the “Prior Agreement”). Executive expressly waives all rights and entitlements, if any, under the Prior Agreement, including but not limited to any rights under Section 14 thereunder. Provided, however, nothing herein is intended to, or does, waive any restricted stock award granted to Executive prior to the closing of the Merger, vested or unvested, in effect prior to the execution of this Agreement, or Executive's rights under the EVBS SERP or any successor thereto.
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[Signature Block on Next Page]
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SOUTHERN NATIONAL BANCORP OF VIRGINIA, INC. | ||
/s/ Xxxxxxx X. Xxxxxxx | ||
By: | Xxxxxxx X. Xxxxxxx | |
Its: | Chairman of the Board of Directors and Chief Executive Officer | |
SONABANK | ||
/s/ Xxxxxxx X. Xxxxxxx | ||
By: | Xxxxxxx X. Xxxxxxx | |
Its: | Chairman of the Board of Directors and Chief Executive Officer | |
XXX X. XXXXXXX | ||
/s/ Xxx X. Xxxxxxx |
[Xxxxxxx Employment Agreement]
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EXHIBIT A
RELEASE
In consideration of the benefits promised in the Employment Agreement to which this Release is attached as Exhibit A (and further defined below), Xxx X. Xxxxxxx (“Executive”), hereby irrevocably and unconditionally releases, acquits, and forever discharges Southern National Bancorp of Virginia, Inc. and Sonabank, and each of their agents, directors, members, shareholders, affiliated entities, officers, employees, former employees, attorneys, and all persons acting by, through, under or in concert with any of them (collectively “Releasees”) from any and all charges, complaints, claims, liabilities, grievances, obligations, promises, agreements, controversies, damages, policies, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses of any nature whatsoever, known or unknown, suspected or unsuspected, including, but not limited to, any rights arising out of alleged violations or breaches of any contracts, express or implied, or any tort, or any legal restrictions on Releasees’ right to terminate employees, or any federal, state or other governmental statute, regulation, law or ordinance, including without limitation (1) Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991; (2) the Americans with Disabilities Act; (3) 42 U.S.C. § 1981; (4) the federal Age Discrimination in Employment Act (age discrimination); (5) the Older Workers Benefit Protection Act; (6) the Equal Pay Act; (7) the Family and Medical Leave Act; and (8) the Employee Retirement Income Security Act (“ERISA”) (“Claim” or “Claims”), which Executive now has, owns or holds, or claims to have, own or hold, or which Executive at any time heretofore had owned or held, or claimed to have owned or held, against each or any of the Releasees at any time up to and including the date of the execution of this Release.
Executive hereby acknowledges and agrees that the execution of this Release and the cessation of Executive’s employment and all actions taken in connection therewith are in compliance with the federal Age Discrimination in Employment Act and the Older Workers Benefit Protection Act and that the releases set forth above shall be applicable, without limitation, to any claims brought under these Acts. Executive further acknowledges and agrees that:
a. The Release given by Executive is given solely in exchange for the benefits set forth in the Employment Agreement dated as of June 23, 2017 between Southern National Bancorp of Virginia, Inc., Sonabank and Executive (the “Employment Agreement”) to which this Release was initially attached and such consideration is in addition to anything of value which Executive was entitled to receive prior to entering into this Release;
b. By entering into this Release, Executive does not waive rights or claims that may arise after the date this Release is executed;
c. Executive has been advised to consult an attorney prior to entering into this Release, and this provision of the Release satisfies the requirements of the Older Workers Benefit Protection Act that Executive be so advised in writing;
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d. Executive has been offered twenty-one (21) days [or 45 days if applicable] from receipt of this Release within which to consider whether to sign this Release; and
e. For a period of seven (7) days following Executive’s execution of this Release, Executive may revoke this Release by delivering the revocation to a Sonabank officer and it shall not become effective or enforceable until such seven (7) day period has expired.
This Release shall be binding upon the heirs and personal representatives of Executive and shall inure to the benefit of the successors and assigns of Southern National Bancorp of Virginia, Inc. and Sonabank.
Date | XXX X. XXXXXXX |
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