FIRST AMENDMENT TO EMPLOYMENT AGREEMENT
Exhibit
10.1
FIRST
AMENDMENT TO EMPLOYMENT AGREEMENT
This
First
Amendment to Employment Agreement (this “Agreement”)
made in duplicate originals and effective this 1st day of July, 2000, is
between
Summit Financial Group, Inc. (formerly
known as South Branch Valley Bancorp, Inc.), a West Virginia corporation (the
“Company”) and
Xxxxxx Xxxxxx
(“Employee”).
WHEREAS,
Employee and Company executed an Employment Agreement, effective August 1,
1998
(the “Employment Agreement”).
WHEREAS,
Employee and the Company desire to amend the Employment Agreement to provide
for
the waiver of future merit raises by Employee in exchange for the establishment
of a Supplement Executive Retirement Plan by the Company for the benefit of
Employee.
NOW
THEREFORE, in consideration of the mutual promises and covenants made in this
Agreement, the parties agree as follows:
1. Paragraph
2
of the Agreement shall be amended to read as follows:
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2.
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Term.
The term of this Agreement shall be for three (3) years commencing
on July
1, 2000, and ending on June 30, 2003, unless one of the parties terminates
this Agreement as provided herein. On July 1, 2003, and every three
years thereafter (the “Anniversary Date”), the Agreement shall renew
automatically for an additional three years unless either the Board
of
Directors of Company or Employee gives contrary written notice to
the
other no later than the Anniversary Date. References herein to the
term of
this Agreement shall refer both to the initial term and successive
terms.
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2. Paragraph
6,
Subsections A and B of the Agreement shall be amended to read as
follows:
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A.
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For
a
period of three (3) years after Employee’s employment with the Company is
terminated by Employee for any reason other than Employee’s disability,
Employee shall not, directly or indirectly, engage in the business
of
banking in the City of Winchester or the County of Xxxxxxxxx, Virginia.
For purposes of this Paragraph 6(A), being engaged in the business
of
banking shall mean Employee’s presence or work in a bank office in the
specified geographic area or Employee’s solicitation of business from
clients with a primary or principle office in the specified geographic
area.
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B.
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During
Employee’s employment by the Company and for three (3) years after
Employee’s employment with the Company is terminated by Employee for any
reason other than Employee’s permanent disability rendering him unable to
perform the duties of an officer or director of a banking organization,
Employee shall not, on his own behalf or on behalf of any other person,
corporation or entity, either directly or indirectly, solicit, induce,
recruit or cause another person in the employ of the Company or its
affiliates to terminate his or her employment for the purpose of
joining,
associating or becoming an employee with any business which is in
competition with any business or activity engaged in by the Company
or its
affiliates.
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3. Exhibit
A,
Subsection A, shall be amended to read as follows:
Base
Salary.
Employee’s starting base salary shall be Seventy-five Thousand Dollars ($75,000)
per year. As of the date that the Virginia Bank opens for business, the base
salary shall be increased to One Hundred Thousand Dollars ($100,000) per year.
Effective March 1, 2000, Employee’s base salary shall be $125,000. Employee
shall be considered for salary increases on the basis of cost of living
increases, beginning with the year ended December 31, 2000.
4. Exhibit
A,
Paragraph B shall be amended to read as follows:
Bonus.
In
addition to the base salary provided for herein, beginning at year end 2001,
Employee shall be eligible for incentive bonuses subject to goals and criteria
to be determined by the Board of Directors of the Company.
5. In
consideration of Employee’s
waiver of
future merit raises, Company and Employee agree that Company shall establish
a
Supplemental Executive Benefit Plan for the benefit of Employee.
6. Except
as
modified by this Agreement, the terms of the Employment Agreement shall remain
in full force and effect.
IN
WITNESS
WHEREOF,
the
Company has caused this Agreement to be executed in its corporate name, by
its
corporate officer, thereunto duly authorized, and Employee has hereunto set
his
hand and seal as of the day and year first written above.
SUMMIT
FINANCIAL
GROUP, INC
By:
/s/
H.
Xxxxxxx Xxxxx, III
H.
Xxxxxxx Xxxxx, III
President
and Chief Executive
Officer
/s/
Xxxxxx
Xxxxxx
Xxxxxx
Xxxxxx
