NORTHWEST SAVINGS BANK NORTHWEST BANCORP, INC. EMPLOYMENT AGREEMENT FOR TIMOTHY A. HUBER
Exhibit 10.15
This Employment Agreement (“Agreement”) is made effective as of the 1st
day of September, 2007 (the “Effective Date”) by and between (i) Northwest Savings Bank (the
“Bank”), a Pennsylvania-chartered stock savings bank and Northwest Bancorp, Inc. (the “Company”), a
federally-chartered corporation, each with its principal administrative office at Liberty and
Second Streets, Warren, Pennsylvania 16365 (collectively referred to as the “Employer”), and (ii)
Xxxxxxx X. Xxxxx (“Executive”).
WHEREAS, the Employer and Executive entered into an employment agreement dated on
the 1st day of September, 2002, pursuant to which Executive was employed as an officer
of the Employer; and
WHEREAS, Section 409A of the Internal Revenue Code (“Code”), effective January 1,
2005, requires deferred compensation arrangements, including those set forth in employment
agreements, to comply with its provisions and restrictions and limitations on payments of deferred
compensation; and
WHEREAS, Code Section 409A and the final regulations issued thereunder in April of
2007 necessitate changes to said employment agreement; and
WHEREAS, Executive has agreed to such changes; and
WHEREAS, the Employer believes it is in the best interests of the Employer to enter
into a new employment agreement (the “Agreement”) in order to reinforce and reward Executive for
his service and dedication to the continued success of the Employer and incorporate the changes
required by the new tax laws; and
WHEREAS, the parties hereto desire to set forth the terms of the revised Agreement
and the continuing employment relationship of the Employer and Executive.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, and upon
the other terms and conditions hereinafter provided, the parties hereby agree as follows:
1. POSITION AND RESPONSIBILITIES
During the period of his employment hereunder, Executive agrees to serve as Senior
Vice President, Commercial Lending. During said period, Executive also agrees to serve, if elected,
as an officer of any subsidiary or affiliate of the Employer.
2. TERMS AND DUTIES
(a) The period of Executive’s employment under this Agreement shall begin as of the
Effective Date and shall continue for a period of thirty-six (36) full calendar months thereafter.
Commencing on the first anniversary date of this Agreement, and continuing at each anniversary date
thereafter, the Agreement shall renew for an additional year such that the remaining term shall be
three (3) years unless written notice is provided to Executive at least ten (10) days and not more
than thirty (30) days prior to any such anniversary date, that this Agreement shall cease at the
end of thirty-six (36) months following such anniversary date. Prior to each notice period for
non-renewal, the Compensation Committee of the Board of Directors of the Company (“Board”) will
conduct a comprehensive performance evaluation and review of Executive for purposes of determining
whether to extend the Agreement, and the results thereof shall be included in the minutes of the
Board’s meeting.
(b) During the period of his employment hereunder, except for periods of absence
occasioned by illness, reasonable vacation periods, and reasonable leaves of absence, Executive
shall faithfully perform his duties hereunder, to the best of his abilities, including activities
and services related to the organization, operation and management of the Employer.
3. COMPENSATION AND REIMBURSEMENT
(a) The compensation specified under this Agreement shall constitute the salary and
benefits paid for the duties described in Section 2(b). The Employer shall pay Executive as
compensation a salary of not less than $160,400 per year (“Base Salary”). Such Base Salary shall be
payable bi-weekly. During the period of this Agreement, Executive’s Base Salary shall be reviewed
at least annually on or about July 1 of each year during the term hereof. Such review shall be
conducted by the Compensation Committee of the Board, and the Board may increase, but not decrease,
Executive’s Base Salary other than pursuant to an employer-wide reduction of compensation of all
officers of the Employer and not in excess of the average percentage of the employer-wide reduction
(any increase in Base Salary shall become the “Base Salary” for purposes of this Agreement). In
addition to the Base Salary provided in this Section 3(a), the Employer shall provide Executive
with all such other benefits as are provided uniformly to executive officers of the Employer.
(b) The Employer will provide Executive with employee benefit plans, arrangements
and perquisites substantially equivalent to those in which Executive was participating or otherwise
deriving benefit from immediately prior to the beginning of the term of this Agreement, and the
Employer will not, without Executive’s prior written consent, make any changes to such plans,
arrangements or perquisites which would adversely affect Executive’s rights or benefits thereunder
unless any such change is broad-based and affects substantially all executives of the Employer.
Without limiting the generality of the foregoing provisions of this Subsection (b), Executive will
be entitled to participate in or receive benefits under any employee benefit plans, including but
not limited to the retirement plan, 401(k) plan, employee stock ownership plan, supplemental
pension plan, health-and-accident plans, medical coverage or any other employee benefit plan or
arrangement made available by the Employer in the future to
its senior executives and key
management employees, subject to and on a basis consistent with the terms, conditions and overall
administration of such plans and arrangements. Executive will be entitled to incentive compensation
and bonuses as provided in any plan of the Employer in which Executive is eligible to participate
(and he shall be entitled to a pro rata distribution under any incentive compensation or bonus plan
as to any year in which a termination of employment occurs, other than Termination for Cause).
Nothing paid to the Executive under any such plan or arrangement will be deemed to be in lieu of
other compensation to which Executive is entitled under this Agreement.
(c) In addition to the Base Salary provided for by paragraph (a) of this Section 3,
the Employer shall pay or reimburse Executive for all reasonable travel and other reasonable
expenses incurred by Executive performing his obligations under this Agreement and may provide such
additional compensation in such form and such amounts as the Board may from time to time determine.
(d) Compensation and reimbursement to be paid pursuant to paragraphs (a), (b) and
(c) of this Section 3 shall be paid by the Bank and the Company, respectively, on a pro rata basis,
based upon the amount of service Executive devotes to the Bank and Company, respectively.
4. PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION
The provisions of this Section shall in all respects be subject to the terms and
conditions stated in Sections 7 and 14.
(a) The provisions of this Section shall apply upon the occurrence of an Event of
Termination (as herein defined) during Executive’s term of employment under this Agreement. As used
in this Agreement, an “Event of Termination” shall mean and include any one or more of the
following:
(i) the termination by the Employer of Executive’s full-time employment hereunder for any
reason other than (A) Disability or Retirement, as defined in Section 5 below, or (B) Termination
for Cause as defined in Section 6 hereof; or
(ii) Executive’s resignation from the Employer’s employ, upon any
(A) reduction in Executive’s Base Salary or a reduction in the benefits and perquisites
to Executive from those being provided as of the effective date of this Agreement, provided,
however, that a reduction in benefits or perquisites that is broad based and affects substantially
all executives of the Employer shall not be deemed an Event of Termination hereunder unless such
reduction in benefits or perquisites occurs coincident with or following a Change in Control,
(B) reduction in Executive’s duties, responsibilities or status with the Employer such
that there is a reduction in Executive’s Pay Grade Level in effect on the date of this Agreement,
of more than three levels (for purposes of this Agreement, “Pay Grade Level” means the level
assigned by the Bank, which level corresponds to a particular job description, as circulated
annually to the executive officers of the Bank),
(C) a relocation of Executive’s principal place of employment by more than 30 miles from
its location as of the effective date of this Agreement,
(D) liquidation or dissolution of the Bank or the Company other than liquidations or
dissolutions that are caused by reorganizations that do not affect the status of Executive, or
(E) breach of this Agreement by the Bank or the Company.
Upon the occurrence of any event described in clauses (ii) (A), (B), (C), (D) or (E)
above, Executive shall have the right to elect to terminate his employment under this Agreement by
resignation upon not less than thirty (30) days prior written notice given within a reasonable
period of time not to exceed ninety (90) days after the initial event giving rise to said right to
elect. Notwithstanding the preceding sentence, in the event of a continuing breach of this
Agreement by the Bank or the Company, the Executive, after giving due notice within the prescribed
time frame of an initial event specified above, shall not waive any of his rights solely under this
Agreement and this Section 4 by virtue of the fact that Executive has submitted his resignation but
has remained in the employment of the Bank or the Company and is engaged in good faith discussions
to resolve any occurrence of an event described in clauses (ii) (A), (B), (C), (D) or (E) above.
The Employer shall have at least thirty (30) days to remedy any condition set forth in clause (ii)
(A) through (E), provided, however, that the Employer shall be entitled to waive such period and
make an immediate payment hereunder.
(iii) Executive’s voluntary resignation from the Employer’s employ on the effective date
of, or within two (2) years following, a Change in Control during the term of this Agreement. For
these purposes, a Change in Control of the Bank or the Company shall mean a change in control of a
nature that: (i) would be required to be reported in response to Item 5.01 of the current report on
Form 8-K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 (the “Exchange Act”); or (ii) results in a Change in Control of the Bank or
the Company within the meaning of the Home Owners’ Loan Act, as amended, and applicable rules and
regulations promulgated thereunder, as in effect at the time of the Change in Control
(collectively, the “HOLA”); or (iii) without limitation such a Change in Control shall be deemed to
have occurred at such time as (a) any “person” (as the term is used in Sections 13(d) and 14(d) of
the Exchange Act) other than the Company’s mutual holding company parent, is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing 25% or more of the combined voting power of the Company’s
outstanding securities except for any securities purchased by the Bank’s employee stock ownership
plan or trust; or (b) individuals who constitute the Board on the date hereof (the “Incumbent
Board”) cease for any reason to constitute at least a majority thereof, provided that any person
becoming a director subsequent to the date hereof whose election was approved by a vote of at least
three-quarters of the directors comprising the Incumbent Board, or whose nomination for election by
the Company’s stockholders was approved by the same Nominating Committee serving under an Incumbent
Board, shall be, for purposes of this clause (b), considered as though he were a member of the
Incumbent Board; or (c) a plan of reorganization, merger, consolidation, sale of all or
substantially all the assets of the Bank or the Company or similar transaction in which the Bank or
Company is not the surviving institution occurs; or (d) a proxy statement soliciting proxies from
stockholders of the Company, by someone other than the current
management of the Company, seeking
stockholder approval of a plan of reorganization, merger or consolidation of the Company or similar
transaction with one or more corporations or financial institutions, and as a result of such proxy
solicitation, a plan of reorganization, merger consolidation or similar transaction involving the
Company is approved by the Company’s Board of Directors or the requisite vote of the Company’s
stockholders; or (e) a tender offer is made for 25% or more of the voting securities of the Company
and the shareholders owning beneficially or of record 25% or more of the outstanding securities of
the Company have tendered or offered to sell their shares pursuant to such tender offer and such
tendered shares have been accepted by the tender offeror.
(b) Upon the occurrence of an Event of Termination, on the Date of Termination, as
defined in Section 7, the Employer shall pay Executive, or, in the event of his subsequent death,
his beneficiary or beneficiaries, or his estate, as the case may be, as severance pay or liquidated
damages, or both, a sum equal to three (3) times the highest rate of Base Salary awarded to
Executive during the prior three years. Such payments shall be made in a lump sum, and shall not be
reduced in the event Executive obtains other employment following an Event of Termination. All
amounts payable to Executive shall be paid within thirty (30) days following the Date of
Termination or if Executive is a Specified Employee (within the meaning of Treasury Regulations
§1.409A-1(i)) on the first business day of the seventh month following the Date of Termination.
(c) Upon the occurrence of an Event of Termination, the Employer will cause to be
continued life insurance and non-taxable medical and dental coverage substantially identical to the
coverage maintained by the Employer for Executive prior to his termination. Such coverage shall
continue for 18 months from the Date of Termination unless Executive obtains other employment
following termination of employment under which substantially similar benefits are provided and in
which Executive is eligible to participate.
(d) For purposes of Section 4, “Event of Termination” as used herein shall mean
“Separation from Service” as defined in Code Section 409A and the Treasury Regulations promulgated
thereunder, provided, however, that the Employer and Executive reasonably anticipate that the level
of bona fide services Executive would perform after termination would permanently decrease to a
level that is less than 50% of the average level of bona fide services performed (whether as an
employee or an independent contractor) over the immediately preceding 36-month period.
(e) Notwithstanding the preceding paragraphs of this Section 4, if the aggregate
payments or benefits to be made or afforded to Executive under said paragraphs (the “Termination
Benefits”) would be deemed to include an “excess parachute payment” under Section 280G of the Code
or any successor thereto, such Termination Benefits will be reduced to an amount (the
“Non-Triggering Amount”), the value of which is one dollar ($1.00) less than an amount equal to the
total amount of payments permissible under Section 280G of the Code or any successor thereto. In
the event any change in the Code or regulations thereunder should reduce the amount of payments
permissible under Section 280G of the Code in effect on the date of this Agreement, then the
Termination Benefits to be paid to Executive shall be determined as if such change in
the Code or
regulations had not been made. The allocation of the reduction required hereby among Termination
Benefits provided by the preceding paragraphs of this Section 4 shall be determined by Executive,
provided however that if it is determined that such election by Executive shall be in violation of
Code Section 409A, the allocation of the required reduction shall be pro-rata.
5. TERMINATION UPON DISABILITY, RETIREMENT OR DEATH
(a) “Disability” or “Disabled” shall be construed to comply with Code Section 409A
and shall be deemed to have occurred if: (i) Executive is 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 last for a continuous period of not less than 12 months; (ii) by
reason of any medically determinable physical or mental impairment that can be expected to result
in death, or last for continuous period of not less than 12 months, Executive is receiving income
replacement benefits for a period of not less than three months under an accident and health plan
covering employees of the Employer; or (iii) Executive is determined to be totally disabled by the
Social Security Administration. Executive shall be entitled to receive benefits under any short or
long-term disability plan maintained by the Employer. To extent that such benefits are less than
Executive’s Base Salary, the Employer shall pay Executive an amount equal to the difference between
such disability plan benefits and the amount of Executive’s Base Salary for the longer of (i) the
remaining term of this Agreement, or (ii) one year following the termination of his employment due
to Disability. Accordingly, any payments required hereunder shall commence within thirty (30) days
from the Date of Termination due to Disability.
(b) Termination by the Employer of Executive based on “Retirement” shall mean
termination in accordance with the Employer’s retirement policy or in accordance with any
retirement arrangement established with Executive’s consent with respect to him. Upon termination
of Executive upon Retirement, no amounts or benefits shall be due to Executive under this
Agreement, and Executive shall be entitled to all benefits for which he is eligible under any
retirement plan of the Employer and other plans to which Executive is a party.
(c) In the event of Executive’s death during the term of the Agreement, his estate,
legal representatives or named beneficiaries (as directed by Executive in writing) shall be paid
Executive’s Base Salary as defined in Paragraph 3(a) at the rate in effect at the time of
Executive’s death in accordance with its regular payroll practice for a period of one (1) year from
the date of Executive’s death, and the Employer will continue to provide life insurance and
non-taxable medical and dental benefits previously provided for Executive’s family for three
(3) years after Executive’s death.
6. TERMINATION FOR CAUSE
The term “Termination for Cause” shall mean termination because of Executive’s
personal dishonesty, willful misconduct, any breach of fiduciary duty involving personal profit,
intentional failure to perform stated duties, willful violation of any law, rule, or regulation
(other than traffic violations or similar offenses) or final cease-and-desist order, or material
breach of any provision of this Agreement. In determining
incompetence, the acts or omissions shall
be measured against standards generally prevailing in the savings institutions industry. For
purposes of this paragraph, no act or failure to act on the part of Executive shall be considered
“willful” unless done, or omitted to be done, by Executive not in good faith and without reasonable
belief that Executive’s action or omission was in the best interest of the Employer.
Notwithstanding the foregoing, Executive shall not be deemed to have been Terminated for Cause
unless and until there shall have been delivered to him a copy of a resolution duly adopted by the
affirmative vote of not less than three-fourths of the members of the Board at a meeting of the
Board called and held for that purpose (after reasonable notice to Executive and an opportunity for
him, together with counsel, to be heard before the Board), finding that in the good faith opinion
of the Board, Executive was guilty of conduct justifying Termination for Cause and specifying the
particulars thereof in detail. Executive shall not have the right to receive compensation or other
benefits for any period after a Termination for Cause. Any stock options granted to Executive under
any stock option plan of the Employer, the Company or any subsidiary or affiliate thereof, that
have not yet vested shall become null and void effective upon Executive’s receipt of Notice of
Termination for Cause pursuant to Section 7 hereof, and shall not be exercisable by Executive at
any time subsequent to such Termination for Cause.
7. NOTICE
(a) Any purported termination by the Employer or by Executive shall be communicated
by Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of
Termination” shall mean a written notice which shall indicate the specific termination provision in
this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of Executive’s employment under the provision so
indicated.
(b) “Date of Termination” shall mean (A) if Executive’s employment is terminated for
Disability, thirty (30) days after a Notice of Termination is given (provided that he shall not
have returned to the performance of his duties on a full-time basis during such thirty (30) day
period), (B) if his employment is terminated due to the occurrence of an Event of Termination set
forth under Section 4, thirty (30) days after a Notice of Termination is given unless the Employer
waives its right to cure and agrees to the Event of Termination and (C) if his employment is
terminated for any other reason, the date specified in the Notice of Termination (which, in the
case of a Termination for Cause, shall not be less than thirty (30) days from the date such Notice
of Termination is given).
(c) If, within thirty (30) days after any Notice of Termination is given, the party
receiving such Notice of Termination notifies the other party that a dispute exists concerning the
termination, except upon the voluntary termination by Executive, in which case the Date of
Termination shall be the date specified in the Notice, the Date of Termination shall be the date on
which the dispute is finally determined, either by mutual written agreement of the parties, by a
binding arbitration award, or by a final judgment, order or decree of a court of competent
jurisdiction (the time for appeal having expired and no appeal having been perfected) and provided
further that the Date of Termination shall be extended by a notice of dispute only if such notice
is given in
good faith and the party giving such notice pursues the resolution of such dispute with
reasonable diligence. Notwithstanding the pendency of any such dispute, the Employer will continue
to pay Executive his full compensation in effect when the notice giving rise to the dispute was
given (including, but not limited to, Base Salary) and continue Executive as a participant in all
compensation, benefit and insurance plans in which he was participating when the notice of dispute
was given, until the dispute is finally resolved in accordance with this Agreement, provided such
dispute is resolved within the term of this Agreement. If such dispute is not resolved within the
term of the Agreement, the Employer shall not be obligated, upon final resolution of such dispute,
to pay Executive compensation and other payments accruing beyond the term of the Agreement. Amounts
paid under this Section shall be offset against or reduce any other amounts due under this
Agreement.
8. POST-TERMINATION OBLIGATIONS
(a) All payments and benefits to Executive under this Agreement shall be subject to
Executive’s compliance with paragraph (b) of this Section 8 during the term of this Agreement and
for two (2) full years after the expiration or termination hereof.
(b) Executive shall, upon reasonable notice, furnish such information and assistance
to the Employer as may reasonably be required by the Employer in connection with any litigation in
which it or any of its subsidiaries or affiliates is, or may become, a party.
9. NON-COMPETITION
(a) Upon any termination of Executive’s employment (whether voluntary or
involuntary), other than a termination (whether voluntary or involuntary) in connection with a
Change in Control, Executive agrees not to compete with the Bank and the Company for a period of
two (2) years following such termination within one hundred (100) miles of any existing branch of
the Bank, the Bank’s subsidiaries, or any subsidiary of the Company, or within one hundred
(100) miles of any office for which the Bank, the Bank’s subsidiaries, the Company or a bank
subsidiary of the Company has filed an application for regulatory approval, determined as of the
effective date of such termination, except as agreed to pursuant to a resolution duly adopted by
the Board. Executive agrees that during such period and within said cities, towns and counties,
Executive shall not work for or advise, consult or otherwise serve with, directly or indirectly,
any entity whose business materially competes with the depository, lending or other business
activities of the Bank or the Company. The parties hereto, recognizing that irreparable injury will
result to the Bank or the Company, its business and property in the event of Executive’s breach of
this Subsection 9(a) agree that in the event of any such breach by Executive, the Bank and the
Company will be entitled, in addition to any other remedies and damages available, to an injunction
to restrain the violation hereof by Executive, Executive’s partners, agents, servants, employers,
employees and all persons acting for or with Executive. Executive represents and admits that
Executive’s experience and capabilities are such that Executive can obtain employment in a business
engaged in other lines and/or of a different nature than the Bank or the Company, and that the
enforcement of a remedy by way of injunction will not prevent
Executive from earning a livelihood.
Nothing herein will be construed as prohibiting the Bank or the Company from pursuing any other
remedies available to the Bank or the Company for such breach or threatened breach, including the
recovery of damages from Executive.
(b) Executive recognizes and acknowledges that the knowledge of the business
activities and plans for business activities of the Bank, the Company and affiliates thereof, as it
may exist from time to time, is a valuable, special and unique asset of the business of the Bank
and the Company. Executive will not, during or after the term of his employment, disclose any
knowledge of the past, present, planned or considered business activities of the Bank, the Company
or affiliates thereof to any person, firm, corporation, or other entity for any reason or purpose
whatsoever (except for such disclosure as may be required to be provided to any federal banking
agency with jurisdiction over the Bank, the Company or Executive). Notwithstanding the foregoing,
Executive may disclose any knowledge of banking, financial and/or economic principles, concepts or
ideas which are not solely and exclusively derived from the business plans and activities of the
Bank or the Company, and Executive may disclose any information regarding the Bank or the Company
which is otherwise publicly available. In the event of a breach or threatened breach by Executive
of the provisions of this Section 9, the Bank and/or the Company will be entitled to an injunction
restraining Executive from disclosing, in whole or in part, the knowledge of the past, present,
planned or considered business activities of the Bank, the Company or affiliates thereof, or from
rendering any services to any person, firm, corporation, other entity to whom such knowledge, in
whole or in part, has been disclosed or is threatened to be disclosed. Nothing herein will be
construed as prohibiting the Bank or the Company from pursuing any other remedies available to the
Bank or the Company for such breach or threatened breach, including the recovery of damages from
Executive.
10. SOURCE OF PAYMENTS
All payments provided in this Agreement shall be timely paid in cash, check or
direct deposit from the general funds of the Bank. The Company, however, guarantees payment and
provision of all amounts and benefits due hereunder to Executive and, if such amounts and benefits
due from the Bank are not timely paid or provided by the Bank, such amounts and benefits shall be
paid or provided by the Company.
11. EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS
This Agreement contains the entire understanding between the parties hereto and
supersedes any prior employment agreement between the Bank, the Company or any predecessor of the
Bank or Company and Executive, except that this Agreement shall not affect or operate to reduce any
benefit or compensation inuring to Executive of a kind elsewhere provided. No provision of this
Agreement shall be interpreted to mean that Executive is subject to receiving fewer benefits than
those available to him without reference to this Agreement.
12. NO ATTACHMENT
(a) Except as required by law, no right to receive payments under this Agreement
shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge,
pledge, or hypothecation, or to execution, attachment, levy, or similar process or assignment by
operation of law, and any attempt, voluntary or involuntary, to affect any such action shall be
null, void, and of no effect.
(b) This Agreement shall be binding upon, and inure to the benefit of, Executive and
the Employer and their respective successors and assigns.
13. MODIFICATION AND WAIVER
(a) This Agreement may not be modified or amended except by an instrument in writing
signed by the parties hereto.
(b) No term or condition of this Agreement shall be deemed to have been waived, nor
shall there be any estoppel against the enforcement of any provision of this Agreement, except by
written instrument of the party charged with such waiver or estoppel. No such written waiver shall
be deemed a continuing waiver unless specifically stated therein, and each such waiver shall
operate only as to the specific term or condition waived and shall not constitute a waiver of such
term or condition for the future as to any act other than that specifically waived.
14. SEVERABILITY
If, for any reason, any provision of this Agreement, or any part of any provision,
is held invalid, such invalidity shall not affect any other provision of this Agreement or any part
of such provision not held so invalid, and each such other provision and part thereof shall, to the
full extent consistent with law, continue in full force and effect.
15. HEADINGS FOR REFERENCE ONLY
The headings of sections and paragraphs herein are included solely for convenience
of reference and shall not control the meaning or interpretation of any of the provisions of this
Agreement.
16. GOVERNING LAW
This Agreement shall be governed by the laws of the Commonwealth of Pennsylvania but
only to the extent not superseded by federal law.
17. REQUIRED PROVISIONS
Notwithstanding anything herein contained to the contrary, any payments to Executive
by the Bank, whether pursuant to this Agreement or otherwise, are subject to and conditioned upon
their compliance with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. § 1828(k), and
the regulations promulgated thereunder in 12 C.F.R. Part 359.
18. ARBITRATION
Any dispute or controversy arising under or in connection with this Agreement shall
be settled exclusively by arbitration, conducted before a panel of three arbitrators
sitting in a
location selected by Executive within one hundred (100) miles from the location of the Employer, in
accordance with the rules of the American Arbitration Association then in effect. Judgment may be
entered on the arbitrator’s award in any court having jurisdiction; provided, however, that
Executive shall be entitled to seek specific performance of his right to be paid until the Date of
Termination during the pendency of any dispute or controversy arising under or in connection with
this Agreement.
19. PAYMENT OF LEGAL FEES
All reasonable legal fees paid or incurred by Executive pursuant to any dispute or
question of interpretation relating to this Agreement shall be paid or reimbursed by the Employer,
provided that the dispute or interpretation has been settled by Executive and the Employer or
resolved in Executive’s favor, and that such reimbursement shall occur no later than two and
one-half months after the dispute is settled or resolved in the Executive’s favor.
20. INDEMNIFICATION
The Employer shall provide Executive (including his heirs, executors and
administrators) with coverage under a standard directors’ and officers’ liability insurance policy
at its expense, and shall indemnify Executive (and his heirs, executors and administrators) to the
fullest extent permitted under applicable law against all expenses and liabilities reasonably
incurred by him in connection with or arising out of any action, suit or proceeding in which he may
be involved by reason of his having been a director or officer of the Bank or the Company (whether
or not he continues to be a director or officer at the time of incurring such expenses or
liabilities), such expenses and liabilities to include, but not be limited to, judgments, court
costs and attorneys’ fees and the cost of reasonable settlements (such settlements must be approved
by the Board of Directors of the Company). If such action, suit or proceeding is brought against
Executive in his capacity as an officer or director of the Bank or the Company, however, such
indemnification shall not extend to matters as to which Executive is finally adjudged to be liable
for willful misconduct in the performance of his duties.
21. SUCCESSOR TO THE BANK
The Bank and the Company shall require any successor or assignee, whether direct or
indirect, by purchase, merger, consolidation or otherwise, to all or substantially all the business
or assets of the Bank or the Company, expressly and unconditionally to assume and agree to perform
the Bank and/or Company’s obligations under this Agreement, in the same manner and to the same
extent that the Bank and/or Company would be required to perform if no such succession or
assignment had taken place.
[Signature page follows]
SIGNATURES
IN WITNESS WHEREOF, the Bank and the Company have caused this Agreement to be
executed and their seals to be affixed hereunto by their duly authorized officers, and Executive
has signed this Agreement, on the day and date first above written.
| ATTEST: | NORTHWEST SAVINGS BANK | |||||||
| By: | ||||||||
| ATTEST: | NORTHWEST BANCORP, INC. | |||||||
| By: | ||||||||
| WITNESS: | EXECUTIVE: | |||||||
| By: | ||||||||
| Xxxxxxx X. Xxxxx | ||||||||
