EMPLOYMENT AGREEMENT
BY AND AMONG
PSB BANCGROUP, INC.
AND
PEOPLES STATE BANK IN ORGANIZATION
AND
X. X. XXXXXXX
THIS EMPLOYMENT AGREEMENT ("Agreement") by and among PSB BancGroup, Inc., a
Florida Corporation ("PSB"), Peoples State Bank, in organization ("Bank"), and
X. X. Xxxxxxx ("Employee") shall be effective on or before the day on which the
Bank commences operations. PSB and the Bank are collectively referred to herein
as the "Company" and the Company and Employee are collectively referred to
herein as the "Parties".
RECITALS
WHEREAS, the Bank wishes to retain Employee as its President and Chief
Executive Officer to perform the duties and responsibilities as are described in
this Agreement and as the Bank's Boards of Directors ("Board") may assign to
Employee from time to time; and
WHEREAS, Employee desires to be employed by the Bank and to serve as the
President and Chief Executive Officer in accordance with the terms and
provisions of this Agreement.
NOW, THEREFORE, in consideration of the mutual agreements contained herein
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties hereto represent, warrant, undertake,
covenant and agree as follows:
OPERATIVE TERMS
1. Employment and Term. The Bank shall employ Employee and Employee shall
be employed pursuant to the terms of this Agreement to perform the services
specified in Section 2 herein. The term of employment shall be for three (3)
years, commencing on or before the day the Bank commences operations (the
"Effective Date"), unless extended or terminated pursuant to the provisions set
forth herein.
2. Position, Responsibilities and Duties. During the term of this
Agreement, Employee shall serve as the Bank's President and Chief Executive
Officer when the Bank commences operations. In such capacity, Employee shall
have the same powers, duties and responsibilities of supervision and management
of the Bank usually accorded to the President and Chief Executive Officer of
similar financial institutions. In addition, Employee shall use his best efforts
to perform the duties and responsibilities enumerated in this Agreement and any
other duties assigned to Employee by the Board and to utilize and develop
contacts and customers to enhance the business of the Bank. Specifically,
Employee shall devote his full business time and attention and use his best
efforts to accomplish and fulfill the following duties and responsibilities, as
well as other duties assigned to Employee from time to time by the Board:
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(i) manage all personnel of the Bank;
(ii) serve as a member of the Board of
Directors, if and when elected to such a
position;
(iii) serve on such committees of the Board as
appointed to from time to time;
(iv) keep the Board informed of important
developments concerning the Bank,
industry developments and regulatory
initiatives affecting the Bank;
(v) maintain adequate expense records
relating to Employee's activities on the
Bank's behalf;
(vi) improve the profitability of the Bank in
accordance with the Annual Business Plan
as prepared by management and adopted by
the Board;
(vii) coordinate with the Bank's attorneys and
accountants and other service providers
to the extent necessary to further the
business of the Bank, keeping in
compliance with government laws and
regulations and otherwise keeping the
Bank in as good a financial and legal
posture as possible; and
(viii) conduct and undertake all other
activities, responsibilities, and duties
normally expected to be undertaken and
accomplished by the President and Chief
Executive Officer of a financial
institution similar in scope and
operation to our business.
(b) General Duties: During the term of this Agreement, and except
for illness, vacation periods and leaves of absences, Employee shall devote
all of his working time, attention, skill and best efforts to accomplish
and faithfully perform all of the duties assigned to Employee on a
full-time basis. Employee shall, at all times, conduct himself in a manner
that will reflect positively upon the Company. Employee shall obtain such
licenses, certificates, accreditations and professional memberships and
designations as the Company may reasonably require. Employee shall join and
maintain membership in such social and civic organizations as Employee or
the Board deems appropriate to xxxxxx the Company's contacts and business
network in the community.
(c) Policies and Manual: Employee agrees to comply with the
policies and procedures that are adopted by the Company and implemented
from time to time as described in the Employee Manual, including any
policies relating to a "drug free work place". In that regard Employee
agrees to submit to the same testing procedures, if any, which apply to all
employees of the Company. Employee has read and understands the contents of
the Employee Manual and acknowledges that the Employee Manual may be
modified, amended, supplemented and updated from time to time as may be
deemed appropriate.
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3. Compensation. During the term of this Agreement, Employee shall be
compensated as follows:
(a) Base Salary: Until the Bank commences operations, Employee
shall be compensated by PSB. Employee shall receive an initial annual
salary of Seventy-Four Thousand Two Hundred and Fifty Dollars ($74,250)
(the "Base Salary") in equal installments, in accordance with standard
payroll practices, reduced appropriately by deductions for federal income
withholding taxes, social security taxes and other deductions required by
applicable laws. Such base salary shall be reviewed annually by the Board
of Directors.
(b) Additional Compensation: Upon commencement of operations, the
Bank may pay Employee incentive compensation when and if the Board adopts
an incentive compensation plan. The payment for any such incentive
compensation would be payable on such terms and conditions as the Board
determines from time to time and adopts by resolution.
(c) Other Benefit Plans: During the term of this Agreement, the
Employee will be entitled to participate in and receive the benefits of any
profit-sharing plans, 401(k) plans, deferred compensation plans, or other
plans, benefits and privileges given to employees and executives of the
Company which are currently in effect at the execution of this Agreement or
which may come into existence thereafter to the extent the Employee is
otherwise eligible and qualifies to so participate in and receive such
benefits or privileges. Nothing paid to the Employee under any plan or
arrangement presently in effect or made available in the future shall be
deemed to be in lieu of the Base Salary payable to the Employee pursuant to
Section 3 herein.
(d) Incentive Stock Options: The Company will designate Employee
as a key employee eligible for the grant of stock options under the PSB
Bancorp, Inc., 1998 Stock Option Plan (the "Stock Option Plan"). In that
connection, the Company will grant to Employee under the terms of the Stock
Option Plan, a non-statutory option to acquire up to 10,000 shares of PSB
common stock, over a ten-year period. The grant of the stock options shall
be made strictly in accordance with the terms of the Stock Option Plan and
in accordance with the Company's standard form of Stock Option Agreement.
The options will contain an exercise price of $9 per share and will vest in
three (3) annual installments beginning with the year of grant. As part of
the consideration for the Stock Options, Employee agrees that for a period
of twenty-four (24) months following any event of termination defined
herein, Employee will not accept employment with any existing or proposed
business organization which then competes or intends to compete with the
Company anywhere in Columbia County, Florida.
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4. Payment of Business Expenses. Employee is authorized to incur reasonable
expenses in performing his duties. The Company will reimburse Employee for
authorized expenses, according to the Company's established policies, promptly
after Employee's presentation of an itemized account of such expenditures,
including mileage at the Internal Revenue allowed rate for the use of Employee's
personal automobile.
5. Vacation. Employee is entitled to four (4) weeks paid vacation time per
year on a non-cumulative basis beginning the first fiscal year following
commencement of operations.
6. Medical Benefits. Employee is entitled to participate in all medical and
health care benefit plans through health insurance, corporate funds, medical
reimbursement plans or other plans, if any, provided, or to be provided, by the
Bank for its employees.
7. Disability/Illness.
(a) Illness: Employee shall be paid his full Base Salary for any
period of his illness or incapacity: provided that such illness or
incapacity does not render Employee unable to perform his duties under this
Agreement for a period longer than three (3) consecutive months. At the end
of such three-month period, the Bank may terminate Employee's employment
and this Agreement.
(b) Disability: If the Bank terminates this Agreement pursuant to
Employee's disability as determined under Section 7(a) herein, the Bank
shall pay to Employee, as a disability payment, an amount equal to
Employee's monthly Base Salary, payable in accordance with the Bank's
standard payroll practices, commencing on the effective date of Employee's
termination and ending on the earlier of:
(i) the date Employee returns to full time
employment in his capacity as the Bank's
President;
(ii) Employee's full time employment by
another financial institution;
(iii) three(3) months after the date of such
termination, after which Employee will
be entitled to receive benefits under
any disability insurance plan provided
by the Bank; or
(iv) the date of Employee's death.
The Company may satisfy its obligations under this Section, at its
option, through the purchase of disability insurance. The provisions of
such policy will control the amounts paid to Employee. Such disability
insurance will be coordinated with any disability plans made available to
Employee pursuant to Section 6 herein.
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(c) Continuation of Coverages: During any period of illness or
disability, the Bank will continue any other life, health and disability
coverages for Employee substantially identical to the coverages maintained
prior to Employee's termination for disability. Such coverages shall cease
upon the earlier of:
(i) Employee's full time employment by
another financial institution;
(ii) one (1) year after the date of such
termination (with the exception of
disability insurance coverage); or
(iii) the date of Employee's death.
(d) No Reduction in Base Salary: During the period in which
Employee is disabled or subject to illness or incapacity, other than as
described in Section 7(b) herein, there shall be no reduction in Employee's
Base Salary.
8. Death During Employment. In the event of Employee's death during the
term of this Agreement, the Company's obligation to Employee shall be limited to
the portion of Employee's compensation which would be payable up to the first
working day of the first month after Employee's death, except that any
compensation payable to Employee under any benefit plan maintained by the
Company will be paid pursuant to its terms.
9. Termination.
(a) Failure of Bank to Commence Operations: In the event the Bank
fails to commence operations for any reason on or before December 1, 1998,
this Agreement may be terminated by PSB upon thirty (30) days written
notice to Employee.
(b) Illness, Incapacity or Death: This Agreement shall terminate
upon Employee's illness, incapacity or death in accordance with the
provisions of Sections 7 and 8 herein.
(c) Termination for Just Cause: The Company shall have the right,
at any time, upon prior written notice of termination satisfying the
requirements of Section 11 herein, to terminate the Employee's employment
hereunder, including termination for just cause. For the purpose of this
Agreement, termination for just cause shall mean any of the following acts
committed by Employee:
(i) Personal dishonesty;
(ii) Incompetence;
(iii) A pattern of socially unacceptable
behavior;
(iv) Willful misconduct;
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(v) Breach of fiduciary duty involving
personal profit;
(vi) Intentional failure to perform stated
duties;
(vii) Willful violation of any law, rule or
regulation (other than traffic
violations or similar offenses) or any
final cease-and- desist order; or
(viii) Material breach of any provision of this
Agreement.
For purposes of this Section, no act, or failure to act, on the
Employee's part shall be considered "willful" unless done, or omitted to be
done, by him not in good faith and without reasonable belief that his
action or omission was in the best interest of the Company; provided that
any act or omission to act by the Employee in reasonable reliance upon an
opinion of counsel to the Company shall not be deemed to be willful. In the
event Employee is terminated for just cause, Employee shall have no right
to compensation or other benefits for any period after such date of
termination.
(d) Effective Date of Termination: The termination of this
Agreement and Employee's employment shall be effective upon the delivery to
Employee of written notice or at such later time as may be specified in
such notice, and Employee shall immediately vacate the Bank premises on or
before such effective date.
(e) Involuntary Termination: If the Employee is terminated by the
Company, other than for just cause or at such time as Employee no longer
serves as President and Chief Executive Officer of the Bank, or in
connection with a change in control of the Company (as defined in Section
9[g] herein), Employee's right to compensation and other benefits under
this Agreement shall be as set forth in Sections 9(h)(i) and 9(i) herein.
In the event the Employee is terminated in connection with a change in
control of the Company, Employee's right to compensation and other benefits
under this Agreement shall be as set forth in Sections 9(h)(ii) and 9(i)
herein. In the event employee is terminated because he no longer serves as
President and Chief Executive Officer of the Bank, Employee shall have no
further right to compensation or benefits provided for herein.
(f) Termination for Good Reason: Employee may terminate his
employment hereunder for good reason by giving written notice to the Board
of Directors or the Chairman thereof. For purposes of this Agreement, "good
reason" shall mean (i) a failure by the Company to comply with any material
provision of this Agreement, which failure has not been cured within
fifteen (15) days after a notice of such noncompliance has been given by
the Employee to PSB or the Company; or (ii) subsequent to a change in
control as defined in Section 9(g) herein and without the Employee's
express written consent, any of the following shall occur: the assignment
to the Employee of any duties inconsistent with the Employee's positions,
duties, responsibilities and status with PSB and the Bank immediately prior
to a change in control; a change in the Employee's reporting
responsibilities, titles or offices as in effect immediately prior to a
change in control of PSB or the Bank; any removal of the Employee from, or
any failure to re-elect the Employee to, any of such positions, except in
connection with a termination of employment for just cause, disability,
death, or removal pursuant to Sections 9(b) or 9(c) herein; a reduction in
the Employee's annual salary as in effect immediately prior to a change in
control; the failure of the Bank to continue in effect any bonus, benefit
or compensation plan, life insurance plan, health and accident plan or
disability plan in which the Employee is participating at the time of a
change in control of PSB or the Bank, or the taking of any action by PSB or
the Bank which would adversely affect the Employee's participation in or
materially reduce the Employee's benefits under any of such plans, or the
transfer of the Employee to any location outside of Columbia County,
Florida or the assignment of substantial duties to the Employee to be
completed outside Columbia County, Florida.
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(g) Change in Control: For purposes of this Agreement, a change
in control shall mean a change in ownership of stock in PSB or the Bank. A
"change in control" for purposes of this Agreement is defined to mean an
event where a person:
(i) Acquires more than 25 percent of any
class of voting stock of PSB or the
Bank;
(ii) Acquires irrevocable proxies
representing more than 25 percent of any
class of voting stock of PSB;
(iii) Acquires any combination of voting stock
and irrevocable proxies representing
more than 25 percent of any class of
voting stock of PSB; or
(iv) Controls in any manner the election of a
majority of the directors of PSB or the
Bank.
(h) Severance Payment:
(i) If the Employee shall terminate his employment for
good reason as defined in Section 9(d) herein, or if the Employee is
terminated by the Company for other than just cause pursuant to
Section 9(e) herein, then in lieu of any further salary payments to
the Employee for periods subsequent to the date of termination,
Employee shall be paid, as severance, an amount which would equal
Employee's total compensation for the remainder of the term of the
Agreement, plus any incentive compensation which Employee would have
been entitled to hereunder;
(ii) In the event Employee's employment is terminated
as a result of a change in control or a change in control of PSB or
the Bank occurs within twelve (12) months of the Employees'
involuntary termination, Employee shall be entitled to a severance
payment equal to Employee's total annual compensation plus any
incentive compensation which Employee would have been entitled to
hereunder;
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(iii) Any payment under Section 9(h)(i) and 9(h)(ii)
shall be made in substantially equal semi-monthly installments on the
fifteenth and last days of each month until paid in full.
(i) Additional Severance Benefits: Unless Employee is terminated
for just cause pursuant to Section 9(e) herein, pursuant to Section 10(b)
herein, or pursuant to a termination of employment by the Employee for
other than good reason, the Company shall maintain in full force and
effect, for the continued benefit of the Employee for the remaining term of
this Agreement, or twelve (12) months (whichever is longer), all employee
benefit plans and programs in which the Employee was entitled to
participate immediately prior to the date of termination; provided,
however, that the Employee's continued participation is possible under the
general terms and provisions of such plans and programs. Further, the
Company shall pay for the same or similar benefits if such benefits are
available to the employee on an individual or group basis as a result of
contractual or statutory provisions requiring or permitting such
availability including, but not limited to, health insurance covered under
COBRA.
(j) Mitigation: Employee shall not be required to mitigate the
amount of any payment provided for in Sections 9(h) and 9(i) of this
Agreement by seeking other employment.
10. Required Provisions by Regulation. The Company and Employee acknowledge
that the laws and regulations governing the Parties require that certain
provisions be provided in each employment agreement with officers and employees
of the Bank. The Parties agree to be bound by the following provisions:
(a) Suspension: If the Employee is suspended from office and/or
temporarily prohibited from participating in the conduct of the Bank's
affairs pursuant to actions taken by the Florida Department of Banking and
Finance ("DOBF") or by notice served under Section 8(e)(3) or Section
8(g)(1) of the Federal Deposit Insurance Act ("FDIA") (12 U.S.C. Section
1818[e][3] and Section 1818[g][1]), the Bank'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
Bank may, in its discretion: (i) pay the Employee all or part of the
compensation withheld while its obligations under this Agreement were
suspended, and (ii) reinstate (in whole or in part) any of its obligations
which were suspended.
(b) Permanent Prohibition: If the Employee is removed from office
and/or permanently prohibited from participating in the conduct of PSB and
the Bank's affairs by an order issued by the DOBF or by an order issued
under Section 8(e)(4) or Section 8(g)(1) of the FDIA (12 U.S.C. Sections
1818[e](4] and [g][1]), all obligations of the Bank under this Agreement
shall terminate as of the effective date of the order, but vested rights of
the Employee and the Bank as of the date of termination shall not be
affected.
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(c) Golden Parachute: Any payments made to the Employee pursuant
to this Agreement, or otherwise, are subject to and conditioned upon their
compliance with 12 U.S.C. Section 1828(k) and any regulations promulgated
thereunder.
(d) Default Under FDIA: If the Bank is in default, as defined in
Section 3(x)(1) of the FDIA (12 U.S.C. Section 1813[x][1]) to mean an
adjudication or other official determination by any court of competent
jurisdiction, the appropriate federal banking agency or other public
authority pursuant to which a conservator, receiver or other legal
custodian is appointed for the Bank, all obligations under this Agreement
shall terminate as of the date of default, but vested rights of the
Employee and the Bank as of the date of termination shall not be affected.
11. Notice of Termination.
(a) Employee's Notice: Employee shall have the right, upon prior
written notice of termination of not less than thirty (30) days, to
terminate his employment hereunder. In such event, Employee shall have no
right after the date of termination to compensation or other benefits as
provided in this Agreement, unless such termination is for "good reason",
as defined in Section 9(e) herein. If the Employee provides a notice of
termination for good reason, the date of termination shall be the date on
which the notice of termination is given.
(b) Specificity: Any termination of the Employee's employment by
the Company or by Employee 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 shall: (i) indicate
the specific termination provision in the Agreement relied upon; (ii) set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of Employee's employment under the provision so
indicated; and (iii) set forth the date of termination, which shall be not
less than thirty (30) days nor more than forty-five (45) days after such
notice of termination is given, except in the case of termination of the
Employee's employment for just cause, in which case date of termination
shall be the date such notice of termination is given.
(c) Delivery of Notices: All notices given or required to be
given herein shall be in writing, sent by United States first-class
certified or registered mail, postage prepaid, by way of overnight carrier
or by hand delivery. If to the Employee (or to the Employee's spouse or
estate upon the Employee's death) notice shall be sent to Employee's
last-known address, and if to Employer, notice shall be sent to the
Chairman of the Board at the main office of PSB. All such notices shall be
effective when deposited in the mail if sent via first-class certified or
registered mail, or upon delivery if by hand delivery or sent via overnight
carrier. The Parties, by notice in writing, may change or designate the
place for receipt of all such notices.
12. Post-Termination Obligations. The Company shall pay to Employee such
compensation as is required pursuant to this Agreement; provided, however, any
such payment shall be subject to Employee's post-termination cooperation. Such
cooperation shall include the following:
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(i) Employee shall furnish such information and assistance as may
be reasonably required by the Company in connection with any litigation or
settlement of any dispute between the Company, a borrower and/or any other
third parties (including without limitation serving as a witness in court
or other proceedings);
(ii) Employee shall provide such information or assistance to the
Company in connection with any regulatory examination by any state or
federal regulatory agency;
(iii) Employee shall keep the Company's trade secrets and other
proprietary or confidential information secret to the fullest extent
practicable, subject to compliance with all applicable laws.
13. Fees and Kickbacks. It shall be considered a material breach of this
Agreement if Employee receives: (i) either directly or indirectly any fee,
kickback, or thing of value in connection with any loan made by the Company; or
(ii) any portion, split or percentage of any charge, either directly or
indirectly, given to or accepted by the Company or any subsidiary or affiliate,
in connection with any loan made by the Company or its affiliates; or (iii) any
fee, kickback or compensation of any kind in connection with the participation
by the Company in any loan from any other source.
14. Indebtedness. If during the term of this Agreement, Employee becomes
indebted to the Company for any reason, the Company may, at its election, set
off and collect any sums due Employee out of any amounts which the Company may
owe Employee from his Base Salary or other compensation. Furthermore, upon the
termination of this Agreement, all sums owed by Employee shall become
immediately due and payable. Employee shall pay all expenses and attorney's fees
actually or necessarily incurred by the Company in connection with any
collection proceeding for Employee's indebtedness to the Company.
Notwithstanding any of the foregoing, any indebtedness to the Company secured by
a mortgage on Employee's residence shall not be subject to the foregoing
provisions, and shall be governed by the loan documents evidencing such
indebtedness.
15. Maintenance of Trade Secrets and Confidential Information. Employee
shall use his best efforts and utmost diligence to guard and protect all of the
Company's trade secrets and confidential information. Employee shall not, either
during the term or after termination of this Agreement, for whatever reason,
use, in any capacity, or divulge or disclose in any manner, to any Person, the
identity of the Company's customers, or its customer lists, methods of
operation, marketing and promotional methods, processes, techniques, systems,
formulas, programs or other trade secrets or confidential information relating
to the Company's business. Upon termination of this Agreement or Employee's
employment, for any reason, Employee shall immediately return and deliver to the
Company all records and papers and all matters of whatever nature which bear
trade secrets or confidential information relating to the Company.
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16. Competitive Activities.
(a) Limitation on Outside Activities: Employee agrees that during
the term of this Agreement, except with the express consent of the Board,
Employee will not, directly or indirectly, engage or participate in, become
a director of, or render advisory or other services for, or in connection
with, or become interested in, or make any financial investment in any
firm, corporation, business entity or business enterprise competitive with
or to any business of the Company; provided, however, that Employee shall
not be precluded or prohibited from owning passive investments, including
investments in the securities of other financial institutions, so long as
such ownership does not require Employee to devote other than minimal time
to management or control of the business or activities in which Employee
has invested.
(b) Agreement Not to Compete: Employee acknowledges that by
virtue of his employment with the Company, Employee will acquire an
intimate knowledge of the activities and affairs of the Company, including
trade secrets and other confidential matters. Employee, therefore, agrees
that during the term of this Agreement, and for a period of twenty-four
(24) months following the termination of Employee's employment hereunder,
Employee shall not become employed, directly or indirectly, whether as an
employee, independent contractor, consultant, or otherwise, in the
financial services industry with any business enterprise or business
entity, or Person who competes or intends to compete directly or indirectly
with any office of the Company located in Columbia County, Florida.
Employee hereby agrees that the duration of the anticompetitive
covenant set forth herein is reasonable, and its geographic scope is not
unduly restrictive.
17. Remedies for Breach.
(a) Arbitration: The Parties agree that, except for the specific
remedies for injunctive relief and other equitable relief contained in
Subsection 16(b) and (c) below, any controversy or claim arising out of or
relating to this Agreement or any breach thereof, including, without
limitation, any claim that this Agreement or any portion thereof is
invalid, illegal or otherwise voidable, shall be submitted to binding
arbitration before and in accordance with the rules of the American
Arbitration Association and judgment upon the determination and/or award of
such arbitrator may be entered in any court having jurisdiction thereof.
Provided, however, that this clause shall not be construed to permit the
award of punitive damages to either party. The prevailing party to said
arbitration shall be entitled to an award of reasonable attorney's fees.
The venue of arbitration shall be in Columbia County, Florida.
(b) Injunctive Relief: The Parties acknowledge and agree that the
services to be performed by Employee are special and unique and that money
damages cannot fully compensate the Company in the event of Employee's
violation of the provisions of Section 16 of this Agreement. Thus, in the
event of a breach of any of the provisions of such Section, Employee agrees
that the Company, upon application to a court of competent jurisdiction,
shall be entitled to an injunction restraining Employee from any further
breach of the terms and provision of such Section. Should the Company
prevail in an action seeking an injunction restraining Employee, Employee
shall pay all costs and reasonable attorneys fees incurred by the Company
in and relating to obtaining such injunction. Such injunctive relief may be
obtained without bond and Employee's sole remedy, in the event of the entry
of such injunction, shall be the dissolution of such injunction. Employee
hereby waives any and all claims for damages by reason of the wrongful
issuance of any such injunction.
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(c) Cumulative Remedies: Notwithstanding any other provision of
this Agreement, the injunctive relief described in Section 17(b) herein and
all other remedies provided for in this Agreement which are available to
the Company as a result of Employee's breach of this Agreement, are in
addition to and shall not limit any and all remedies existing at or in
equity which may also be available to the Company.
18. Assignment. This Agreement shall inure to the benefit of and be binding
upon the Employee, and to the extent applicable, his heirs, assigns, executors,
and personal representatives, and to the Company, and to the extent applicable,
its successors, and assigns, including, without limitation, any person,
partnership, or corporation which may acquire all or substantially all of the
Company's assets and business, or with or into which the Company may be
consolidated or merged, and this provision shall apply in the event of any
subsequent merger, consolidation, or transfer, unless such merger or
consolidation or subsequent merger or consolidation is a transaction of the type
which would result in termination under Sections 10(c) and 10(d) herein.
19. Miscellaneous.
(a) Amendment of Agreement: Unless as otherwise provided herein,
this Agreement may not be modified or amended except in writing signed by
the Parties.
(b) Certain Definitions: For purposes of this Agreement, the
following terms whenever capitalized herein shall have the following
meanings:
(i) "Person" shall mean any natural person, corporation,
partnership (general or limited), trust, association or any other
business entity.
(ii) "Attorneys Fees" shall include the legal fees and
disbursements charged by attorneys and their related travel and
lodging expenses, court costs, paralegal fees, etc. incurred in
settlement, trial, appeal or in bankruptcy proceedings.
(c) Headings for Reference Only: The headings of the Sections and
the Subsections herein are included solely for convenient reference and
shall not control the meaning of the interpretation of any of the
provisions of this Agreement.
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(d) Governing Law/Venue: This Agreement shall be construed in
accordance with and governed by the laws of the State of Florida.
Notwithstanding the Provisions of Section 19(a) herein, venue for any
litigation involving the Parties and their rights and obligations hereunder
shall be brought in any appropriate court in Columbia County, Florida.
(e) Severability: If any of the provisions of this Agreement
shall be held invalid for any reason, the remainder of this Agreement shall
not be affected thereby and shall remain in full force and effect in
accordance with the remainder of its terms.
(f) Entire Agreement: This Agreement and all other documents
incorporated or referred to herein, contain the entire agreement of the
Parties and there are no representations, inducements or other provisions
other than those expressed in writing herein. This Agreement amends,
supplants and supersedes any and all prior agreements between the Parties.
No modification, waiver or discharge of any provision or any breach of this
Agreement shall be effective unless it is in writing signed by both
Parties. A Party's waiver of the other Party's breach of any provision of
this Agreement, shall not operate, or be construed, as a waiver of any
subsequent breach of that provision or of any other provision of this
Agreement.
(g) Waiver: No course of conduct by the Company or Employee and
no delay or omission of the Company or Employee to exercise any right or
power given under this Agreement shall: (i) impair the subsequent exercise
of any right or power, or (ii) be construed to be a waiver of any default
or any acquiescence in or consent to the curing of any default while any
other default shall continue to exist, or be construed to be a waiver of
such continuing default or of any other right or power that shall
theretofore have arisen. Any power and/or remedy granted by law and by this
Agreement to any party hereto may be exercised from time to time, and as
often as may be deemed expedient. All such rights and powers shall be
cumulative to the fullest extent permitted by law.
(h) Pronouns: As used herein, words in the singular include the
plural, and the masculine include the feminine and neuter gender, as
appropriate.
(i) Recitals: The Recitals set forth at the beginning of this
Agreement shall be deemed to be incorporated into this Agreement by this
reference as if fully set forth herein, and this Agreement shall be
interpreted with reference to and in light of such Recitals.
[Signatures Follow This Page]
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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of
the day and year first written above.
PSB BancGroup, Inc. Peoples State Bank, In Organization
By: /s/ By: /s/
----------------------------- -----------------------------
Xxxxx X. Xxxxxx Xxxxx X. Xxxxxx
Chairman of the Board Proposed Chairman of the Board
/s/ /s/
----------------------------- -----------------------------
Witness Witness
Employee
/s/
-----------------------------
X. X. Xxxxxxx
/s/
-----------------------------
Witness
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