EMPLOYMENT AGREEMENT
This Agreement is made and entered into on _________ ___, 2014, by and among Bridge Capital Holdings (“BCH”), Bridge Bank, National Association (“Bank”) and Xxxxxx X. Xxxxx (“Executive”) for the purposes set forth hereinafter (“Agreement”).
WHEREAS, BCH is a California corporation and bank holding company registered under the Bank Holding Company Act of 1956, as amended, subject to the supervision and regulation of the Board of Governors of the Federal Reserve System (“BGFRS”);
WHEREAS, Executive served as the President and Chief Executive Officer of BCH and the Bank pursuant to an employment agreement dated June 15, 2010, by and among BCH, the Bank and the Executive (the “Prior Agreement”) and also served as a director of BCH and the Bank; and
EmpAgt – Xxxxx |
In consideration of the Executive’s base salary and such other benefits provided pursuant to this Agreement, which the Executive, BCH and the Bank acknowledge and agree represents an increase in compensation benefits over the compensation benefits provided under the Prior Agreement and is adequate consideration for the termination of the Prior Agreement, BCH, the Bank and the Executive agree that the Prior Agreement is hereby terminated effective as of the date of this Agreement and that this Agreement is intended by the parties hereto to supersede in full and constitute a complete replacement for the Prior Agreement and any rights and benefits thereunder, but does not supersede or replace the rights and benefits under (i) the Indemnification Agreement specified in paragraph 5 of this Agreement, (ii) the Supplemental Executive Retirement Plan specified in paragraph 13(d) of this Agreement, or (iii) any stock option or equity award agreement between BCH and the Executive as specified in paragraph 12 of this Agreement. In furtherance thereof and notwithstanding any other provision of this Agreement or the Prior Agreement to the contrary, the Executive, for himself, and his heirs, beneficiaries, executors, administrators, trustees, and any other legal or personal representatives, agents, successors or permitted assignees or transferees, further expressly agrees to and does hereby waive and relinquish any and all claims, rights and benefits under the Prior Agreement and specifically releases the Bank and BCH, and their respective directors, officers, employees, agents, affiliates and successors, from any obligations, duties and liabilities under the Prior Agreement including the waiver of any claims and matters covered or contemplated by California Civil Code Section 1542 which reads as follows:
“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”
-2- | EmpAgt – Xxxxx |
3. Devotion to Bank's and BCH’s Business.
(a) The Executive shall devote his full business time, ability, and attention to the business of the Bank and BCH during the term of Executive’s employment under this Agreement and shall not during the term of his employment engage in any other business activities, duties, or pursuits whatsoever, or directly or indirectly render any services of a business, commercial, or professional nature to any other person or organization, whether for compensation or otherwise, without the prior written consent of the Board of Directors of BCH. However, the expenditure of reasonable amounts of time for educational, charitable, or professional activities shall not be deemed a breach of this Agreement if those activities do not materially interfere with the services required of the Executive under this Agreement. Nothing in this Agreement shall be interpreted to prohibit the Executive from making passive personal investments. However, the Executive shall not directly or indirectly acquire, hold, or retain any interest in any business competing with or similar in nature to the business of the Bank and BCH, except passive shareholder investments in other financial institutions and their respective affiliates which do not exceed five percent (5%) of the outstanding voting securities in the aggregate in any single financial institution and its affiliates on a consolidated basis.
(b) The Executive hereby represents and agrees that the services to be performed under the terms of this Agreement are of a special, unique, unusual, extraordinary, and intellectual character that gives them a peculiar value, the loss of which cannot be reasonably or adequately compensated in damages in an action at law. The Executive therefore expressly agrees that the Bank and BCH, in addition to any other rights or remedies that the Bank and BCH may possess, shall be entitled to injunctive and other equitable relief to prevent or remedy a breach of this Agreement by the Executive.
4. Noncompetition, Nonsolicitation and Nondisclosure by the Executive.
(a) The Executive shall not, during the term of Executive’s employment under this Agreement, directly or indirectly, either as an employee, employer, consultant, agent, principal, stockholder (except as permitted in paragraph 3 (a) of this Agreement), officer, director, or in any other individual or representative capacity, engage or participate in any competitive banking or financial services business without the prior written consent of the Board of Directors of the Bank or BCH.
-3- | EmpAgt – Xxxxx |
(b) Following termination of this Agreement and the Executive’s employment hereunder and for a period of twelve (12) months thereafter, the Executive shall not use any confidential, trade secret, or proprietary information of the Bank or BCH, or their affiliates and subsidiaries, including information described in paragraph 6 below, to solicit, encourage or assist, directly, indirectly or in any manner whatsoever, (i) any employees of the Bank, BCH or their affiliates and subsidiaries (including any former employees who voluntarily terminated such employment within a twelve (12) month period prior to the Executive’s termination of employment with the Bank or BCH) to resign or to apply for or accept employment with any other competitive banking or financial services business within the counties in California in which the Bank has located its headquarters or branch offices; or (ii) any customer, person or entity that has a business relationship with the Bank or during the twelve (12) month period prior to the Executive’s termination of employment with the Bank was engaged in a business relationship with the Bank, to terminate such business relationship and engage in a business relationship with any other competitive banking or financial services business within the counties in California in which the Bank has located its headquarters or branch offices.
(c) Following termination of this Agreement and the Executive’s employment hereunder and for a period of twelve (12) months thereafter, the Executive will not (i) disclose or use in any manner whatsoever, confidential, trade secret and proprietary information of the Bank, BCH, or their affiliates and subsidiaries, including information described in paragraph 6 below except as expressly permitted thereunder; and/or (ii) assist (by disclosing information described in paragraph 6 below except as expressly permitted thereunder) any person or entity, directly, indirectly or in any manner whatsoever, that engages in or seeks to engage in any competitive banking or financial services business.
-4- | EmpAgt – Xxxxx |
-5- | EmpAgt – Xxxxx |
-6- | EmpAgt – Xxxxx |
-7- | EmpAgt – Xxxxx |
Notwithstanding the foregoing, any portion of such reimbursement allowance which is not fully spent during a particular year shall lapse and will not carryover from one year to another year or otherwise be available or increase the reimbursement allowance in any year during the term of Executive’s employment under this Agreement.
-8- | EmpAgt – Xxxxx |
14. Annual Physical Examination. The Bank or BCH shall pay or reimburse the Executive for up to five hundred dollars ($500) of the cost, if any, in excess of applicable insurance coverage specified in paragraph 13(c) of this Agreement for an annual physical examination conducted by a California licensed physician selected by the Executive, the results of which examination shall not be required to be disclosed to BCH or the Bank. Any such reimbursement shall be made upon presentation and approval of receipts, invoices or other appropriate evidence of such expense in accordance with the policies of the Bank or BCH.
-9- | EmpAgt – Xxxxx |
(1) | The occurrence of circumstances that make it impossible or impractical for the Bank and BCH to conduct or continue its business. |
(2) | The death of the Executive. |
(3) | The loss by the Executive of legal capacity. |
(4) | The loss by the Bank and BCH of legal capacity to contract. |
(5) | The willful, intentional and material breach or the habitual and continued neglect by the Executive of his employment responsibilities and duties. |
(6) | The continuous mental or physical incapacity of the Executive, subject to disability rights under this Agreement. |
(7) | The Executive's willful and intentional violation of any state or federal banking or securities laws, or of the bylaws, rules, policies or resolutions of the Bank or BCH, or the rules or regulations of the BGFRS, FDIC, OCC, or other regulatory agency or governmental authority having jurisdiction over the Bank or BCH, which has a material adverse effect upon the Bank or BCH. |
(8) | The written determination by a state or federal regulatory agency or governmental authority having jurisdiction over the Bank or BCH that the Executive is not suitable to act in the capacity for which he is employed by the Bank or BCH. |
(9) | The Executive’s conviction of (i) any felony or (ii) a crime involving moral turpitude, or the Executive’s willful and intentional commission of a fraudulent or dishonest act. |
(10) | The Executive’s non-insurability for surety bond coverage as determined in the sole discretion of the Bank’s insurer at any time during the term of Executive’s employment under this Agreement. |
-10- | EmpAgt – Xxxxx |
(11) | A material breach of the terms or provisions of this Agreement, which breach remains uncured after thirty (30) days from the date written notice of breach including the basis for the good faith determination of breach is given by the non-breaching party to another party. |
(i) the Executive may terminate his employment and this Agreement at any time and for any reason or no reason, upon thirty (30) days prior written notice to the Bank or BCH. Unless otherwise agreed in writing between the Executive, the Bank and BCH, at the time such notice is given the Executive shall immediately cease performing and discharging the duties and responsibilities of his positions and remove himself and his personal belongings from the Bank’s and BCH’s premises and the Executive agrees to concurrently resign as a director of both the Bank and BCH. All rights and obligations accruing to the Executive under this Agreement shall cease at such termination, except that such termination shall not prejudice the Executive's rights regarding employment benefits which shall have accrued prior to such termination and any other remedy which the Executive may have at law, in equity or under this Agreement, which remedy accrued prior to such termination; or
-11- | EmpAgt – Xxxxx |
(ii) the Executive may terminate his employment and this Agreement at any time upon thirty (30) days prior written notice to the Bank or BCH, based on the Executive’s good faith determination of the existence of “good reason” therefore, subject to the right of the Bank or BCH to cure the matter alleged as the basis for the Executive’s determination that “good reason” exists as described herein. In order to be considered a “good reason,” such notice must be given to the Bank or BCH within ninety (90) days of the occurrence of the event causing the “good reason” to exist. For purposes of this Agreement, “good reason” shall mean that without the Executive’s written consent there occurs (A) any material adverse change in the nature and scope of the Executive's position, authorities, responsibilities, duties, or a change of twenty (20) miles or more in the Executive's location of employment, or any material reduction in the Executive’s base salary, incentive compensation (including any material adverse change to the terms of the Incentive Plan after the date of this Agreement) or other benefits under this Agreement, or (B) any event which reasonably constitutes a demotion, significant diminution or constructive termination (by resignation or otherwise) of the Executive's employment. The Executive shall specify in any such notice to the Bank or BCH the specific basis for his good faith determination that “good reason” exists and the Bank or BCH shall have thirty (30) days within which to cure any matter alleged by the Executive as the basis for such “good reason” determination by the Executive. If, in the reasonable good faith determination of the Executive, the matters alleged by the Executive as “good reason” are cured within such thirty (30) day period, then the Executive shall not be entitled to terminate his employment and this Agreement based thereon. Unless otherwise agreed in writing between the Executive, the Bank and BCH, upon termination, the Executive shall immediately cease performing and discharging the duties and responsibilities of his positions and remove himself and his personal belongings from the Bank’s and BCH’s premises and the Executive agrees to concurrently resign as a director of both the Bank and BCH.
(d) Severance Benefits - Without a Change in Control. Subject to paragraphs 17 and 30 of this Agreement, in the event of automatic termination based upon paragraph 16 (a) (1), (4) or (11, to the extent of the Bank's or BCH’s breach), or termination by the Bank or BCH pursuant to paragraph 16 (b), or termination at the election of the Executive for “good reason” pursuant to paragraph 16 (c) (ii), then in each such case, the Executive shall receive severance benefits consisting of (i) a cash payment in an amount equal to two (2) times the Executive's (A) annual base salary during the year the termination occurs and (B) average bonus or incentive compensation amount paid to the Executive in the three (3) year period immediately preceding the termination, less applicable withholding deductions (in addition to base salary, incentive compensation, or other payments, if any, due the Executive), payable in lump sum promptly after sixty (60) days following such termination (but in no event later than March 15 following the end of the calendar year that includes such termination); (ii) acceleration of vesting of any stock options or equity awards granted to the Executive pursuant to the BCH Plans; and (iii) continuation of group insurance coverages specified in paragraph 13 (c) of this Agreement for the Executive and his dependents pursuant to The Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), or under applicable California law pursuant to Assembly Xxxx No. 1401 (“Cal-COBRA”), with one hundred percent (100%) of premiums for the insurance coverages payable by the Bank or BCH monthly to the Executive for a period of twenty-four (24) months from the date of termination. Notwithstanding the foregoing or any other provision in this Agreement to the contrary, the obligation of the Bank or BCH to pay the premium costs related to the COBRA or Cal-COBRA continuation of insurance coverages shall terminate at the earlier of the expiration of twenty-four (24) months from the date of termination or the date of commencement of comparable insurance coverages for the Executive by another employer. After such expiration date, the Executive shall have such rights to continue to participate under the Bank’s or BCH’s group health benefits plan at the Executive’s expense as may be available under COBRA or Cal COBRA. The Executive agrees to notify the Bank or BCH as soon as practicable, but not less than ten (10) business days in advance of the commencement of such comparable insurance coverages with another employer and to repay to the Bank or BCH any amounts paid by the Bank or BCH to or for the benefit of the Executive that overlap the coverages provided by the other employer.
-12- | EmpAgt – Xxxxx |
Notwithstanding the foregoing, in the event of a “change in control” as defined in paragraph 16 (e) below, the Executive shall not be entitled to the severance benefits pursuant to this paragraph 16 (d) and any rights of the Executive to severance benefits shall be limited to such rights as are specified in paragraph 16 (e) below.
The Executive acknowledges and agrees that severance benefits pursuant to this paragraph 16 (d) are in lieu of all damages, payments and liabilities on account of the early termination of Executive’s employment under this Agreement and the sole and exclusive remedy for the Executive for a termination specified in paragraph 16 (d).
-13- | EmpAgt – Xxxxx |
Subject to paragraphs 17 and 30 of this Agreement, the severance benefits payable pursuant to this paragraph 16 (e) shall consist of (i) a cash payment in an amount equal to two and ninety-nine one hundredths (2.99) times the Executive's (A) annual base salary during the year the termination or other event triggering a right to severance benefits hereunder occurs and (B) average bonus or incentive compensation amount paid to the Executive in the three (3) year period immediately preceding the termination, less applicable withholding deductions (in addition to base salary, incentive compensation, or other payments, if any, due the Executive), payable in lump sum promptly after sixty (60) days following such termination (but in no event later than March 15 following the end of the calendar year that includes such termination); (ii) acceleration of vesting of any stock options or equity awards granted to the Executive pursuant to the BCH Plans; and (iii) continuation of group insurance coverages specified in paragraph 13 (c) of this Agreement for the Executive and his dependents pursuant to The Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), or under applicable California law pursuant to Assembly Xxxx No. 1401 (“Cal-COBRA”), with one hundred percent (100%) of premiums for the insurance coverages payable by the Bank or BCH monthly to the Executive for a period of thirty-six (36) months from the date of termination. Notwithstanding the foregoing or any other provision in this Agreement to the contrary, the obligation of the Bank or BCH to pay the premium costs related to the COBRA or Cal-COBRA continuation of insurance coverages shall terminate at the earlier of the expiration of thirty-six (36) months from the date of termination or the date of commencement of comparable insurance coverages for the Executive by another employer. After such expiration date, the Executive shall have such rights to continue to participate under the Bank’s or BCH’s group health benefits plan at the Executive’s expense as may be available under COBRA or Cal COBRA. The Executive agrees to notify the Bank or BCH as soon as practicable, but not less than ten (10) business days in advance of the commencement of such comparable insurance coverages with another employer and to repay to the Bank or BCH any amounts paid by the Bank or BCH to or for the benefit of the Executive that overlap the coverages provided by the other employer. Notwithstanding the foregoing or any other provision in this Agreement to the contrary, if any part or all of the severance benefits is subject to taxation under Section 409A of the Internal Revenue Code of 1986, as amended, as determined by the Bank or BCH, with the advice of its independent accounting firm or other tax advisors, then the severance payment shall be subject to modification as set forth hereafter in paragraph 17 of this Agreement.
The Executive acknowledges and agrees that severance benefits pursuant to this paragraph 16 (e) are in lieu of all damages, payments and liabilities on account of the events described above for which such severance benefits may be due the Executive under paragraph 16 (e) of this Agreement. This paragraph 16 (e) shall be binding upon and inure to the benefit of the Bank and BCH and their respective successors and assigns, and the Executive and the Executive’s heirs, beneficiaries, successors, permitted assigns or transferees, executors, administrators, trustees, and any other legal or personal representatives.
-14- | EmpAgt – Xxxxx |
Notwithstanding the foregoing, the Executive shall not be entitled to receive severance benefits pursuant to this paragraph 16 (e) in the event of an occurrence described in paragraph 16 (a), subparagraphs (5), (7), (8), (9), or (11, to the extent of an Executive breach), or in the event the Executive terminates employment in accordance with paragraph 16 (c) (i) and the termination is not a result of or based upon the occurrence of any event described in paragraph 16 (e) (ii) above.
A “change in control” for purposes of this Agreement and paragraph 16 (e), subject to the limitation of Section 409A of the Internal Revenue Code of 1986, as amended, set forth in paragraph 17 of this Agreement, shall mean the occurrence of any of the following events with respect to the Bank or BCH: (i) a change in control of a nature that would be required to be reported in response to Item 6 (e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or in response to any other form or report to the regulatory agencies or governmental authorities having jurisdiction over the Bank or BCH or any stock exchange on which BCH's shares are listed which requires the reporting of a change in control; (ii) any merger, consolidation or reorganization of the Bank or BCH in which the Bank or BCH does not survive; (iii) any sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one transaction or a series of transactions) of any assets of the Bank or BCH having an aggregate fair market value of fifty percent (50%) or more of the total value of the assets of the Bank or BCH, reflected in the most recent consolidated audited or interim unaudited balance sheet of BCH; (iv) a transaction whereby any “person” (as such term is used in the Exchange Act) or any individual, corporation, partnership, trust or any other entity is or becomes the beneficial owner, directly or indirectly, of securities of BCH or Bank representing twenty-five percent (25%) or more of the combined voting power of BCH’s or Bank’s then outstanding securities; (v) a situation where, in any one-year period, individuals who at the beginning of such period constitute the Board of Directors of the Bank or BCH cease for any reason to constitute at least a majority thereof; or (vi) the shareholder(s) of the Bank or BCH approve the sale or transfer of substantially all of the Bank’s or BCH’s assets to parties that are not within a “controlled group of corporations” (as that term is defined in Section 1563 of the Internal Revenue Code of 1986, as amended) in which the Bank, or as applicable BCH, is a member.
Notwithstanding the foregoing or any other provision of this Agreement to the contrary, (i) if the individuals who constitute the directors of the Bank and BCH at the time a definitive agreement for a proposed transaction described above (excepting therefrom the situation described in subparagraph (v) above) is executed will, according to the terms of the definitive agreement, constitute a majority of the members of the board of directors of the resulting entity(ies) or acquiring person(s) that control(s) or is(are) the successor(s) to the Bank and BCH immediately after the transaction, then before a transaction or event that would otherwise constitute a change in control shall be deemed to have occurred, such directors of the Bank and BCH may determine by majority vote that the specific transaction or event does not constitute a change in control; and (ii) there shall not be a change in control hereunder in the event that (A) an Employee Stock Ownership Plan is sponsored by BCH which is the party that acquires “control” or is the principal participant in the transaction constituting a “change in control,” as described above, or (B) a reorganization is initiated by the Board of Directors of the Bank or BCH in which the Bank is merged with and into another wholly-owned bank subsidiary of BCH to consolidate operations under the charter of such other bank subsidiary.
-15- | EmpAgt – Xxxxx |
BCH, the Bank and the Executive further acknowledge and agree that if, in the judgment of BCH or the Bank, with the advice of its independent accounting firm or other tax advisors, amendment of this Agreement is necessary to clarify any of the terms of this Agreement, or to comply with Section 409A, BCH, the Bank and the Executive will negotiate reasonably and in good faith to amend the terms of this Agreement to the extent necessary so that it complies (with the most limited possible economic effect on BCH, the Bank and the Executive) with Section 409A.
-16- | EmpAgt – Xxxxx |
The term “Specified Employee” shall mean an employee who at the time of separation from service is a “Key Employee” of BCH or the Bank or a successor entity of either, if any stock of BCH, the Bank or a successor entity of either is publicly traded on an established securities market or otherwise. For purposes of this Agreement, an employee is a Key Employee if the employee meets the requirements of section 416(i)(1)(A)(i), (ii), or (iii) of the Internal Revenue Code of 1986, as amended (applied in accordance with the regulations thereunder and disregarding section 416(i)(5) thereof) at any time during the twelve (12) month period ending on December 31 (the "Identification Period"). If the employee is a Key Employee during an Identification Period, the employee is treated as a Key Employee for purposes of this Agreement during the twelve (12) month period that begins on the first day of April following the close of the Identification Period.
-17- | EmpAgt – Xxxxx |
20. Arbitration. All claims, disputes and other matters in question arising out of or relating to the Executive’s employment and/or this Agreement or the breach or interpretation thereof, other than those matters which are to be determined by BCH and/or the Bank, in their respective sole and absolute discretion, shall be resolved by binding arbitration before a representative member, selected by the mutual agreement of the parties, of the Judicial Arbitration and Mediation Services, Inc. (“JAMS”), in accordance with the rules and procedures of JAMS then in effect. In the event JAMS is unable or unwilling to conduct such arbitration, or has discontinued its business, the parties agree that a representative member, selected by the mutual agreement of the parties, of the American Arbitration Association (“AAA”), shall conduct such binding arbitration in accordance with the rules and procedures of the AAA then in effect. Notice of the demand for arbitration shall be filed in writing with the other party to this Agreement and with JAMS (or AAA, if necessary). In no event shall the demand for arbitration be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations. Any award rendered by JAMS or AAA shall be in writing and final and binding upon the parties, and as applicable, their respective heirs, beneficiaries, legal representatives, agents, successors and assigns, and may be entered in any court having jurisdiction thereof to the extent permitted by applicable law. The obligations and rights of the parties to arbitrate pursuant to this clause shall be specifically enforceable in accordance with, and shall be applied, construed and interpreted consistently with, the provisions of the Federal Arbitration Act, 9 U.S.C. section 1, et seq. The Executive agrees to conduct arbitration as an individual solely upon and related to the Executive’s own claims and waives any right to pursue such claims as a class action. Any arbitration hereunder shall be conducted in San Jose, California, unless otherwise agreed to by the parties.
-18- | EmpAgt – Xxxxx |
27. Governing Law and Venue. The laws of the State of California, other than those laws denominated choice of law rules, and the rules and regulations of the regulatory authorities having jurisdiction over BCH and the Bank including, but not limited to, the BGFRS, FDIC and OCC, shall govern the validity, construction and effect of this Agreement, except for paragraph 20 regarding arbitration, which shall be governed by the Federal Arbitration Act (9 U.S.C. § 1, et seq.). Any action which in any way involves the rights, duties and obligations of the parties hereunder and is not resolved by binding arbitration shall be brought in the courts of the State of California or federal court and venue for any action or proceeding shall be in the California Superior Court for Santa Xxxxx County or in the United States District Court for the Northern District of California, and the parties hereby submit to the personal jurisdiction of said courts.
-19- | EmpAgt – Xxxxx |
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
-20- | EmpAgt – Xxxxx |
BRIDGE CAPITAL HOLDINGS | EXECUTIVE | ||
By: | |||
Xxxxx X. Xxxxxx, M.D. | Xxxxxx X. Xxxxx | ||
Chairman of the Board | |||
By: | |||
Xxxxxx X. Xxxxx | |||
Director and Chairman of the | |||
Compensation Committee | |||
BRIDGE BANK, NATIONAL ASSOCIATION | |||
By: | |||
Xxxxx X. Xxxxxx, M.D. | |||
Chairman of the Board | |||
By: | |||
Xxxxxx X. Xxxxx | |||
Director and Chairman of the | |||
Compensation Committee |
-21- | EmpAgt – Xxxxx |
EXHIBIT A
GENERAL RELEASE AGREEMENT
-22- | EmpAgt – Xxxxx |
GENERAL RELEASE AGREEMENT
THIS GENERAL RELEASE AGREEMENT (the “Release Agreement”) is entered into by and among Xxxxxx X. Xxxxx (the “Executive”), Bridge Capital Holdings, a California corporation and bank holding company registered under the Bank Holding Company Act of 1956, as amended (“BCH”), and Bridge Bank, National Association, a national banking association (“Bank”), for the purposes set forth hereinafter.
In consideration for the payment of severance benefits to the Executive pursuant to Paragraph 16 of that certain Employment Agreement between the parties dated _________, 20__, (the “Employment Agreement”), which payments the Executive is not otherwise entitled to receive and the sufficiency of which the Executive acknowledges, the Executive has agreed to waive any and all claims or grievances which the Executive has or may have against BCH, the Bank and all of their respective past, present and future affiliates, subsidiaries, predecessors, and successor corporations, and their respective subsidiaries and affiliates, and their respective past or present shareholders, directors, officers, employees, trustees, agents, and representatives, in their individual or representative capacities, and all benefits plans of such companies, including current and former trustees and administrators of such plans (all of the foregoing individually and collectively referred to hereinafter as the “Released Parties”), in accordance with the terms of this Release Agreement. Nothing contained in this Release Agreement shall be or be interpreted as an admission of liability by any of the Released Parties.
In furtherance of the foregoing, the Executive agrees, for the Executive and for all persons acting on the Executive's behalf (such as, but not limited to, the Executive's family, heirs, executors, administrators, personal representatives, agents and/or legal representatives), to forever and fully release and discharge the Released Parties from any and all claims, actions, causes of action, contracts, grievances, demands, and/or other liability of any nature whatsoever against any or all of the Released Parties, that the Executive ever had by reason of or arising out of any matter, cause and/or event occurring on or prior to the date of the expiration of the revocation period described below including, but not limited to, the following matters (which are individually and collectively referred to hereinafter as the “Released Claims”):
(i) any and all claims of any nature which are in any way related to the Executive's employment pursuant to the Employment Agreement, the termination of such employment, promissory estoppel, any and all claims for forced resignation, constructive discharge, libel, slander, deprivation of due process, wrongful discharge, discrimination, harassment of any nature, breach of contract, breach of implied contract, the infliction of emotional distress, detrimental reliance, invasion of privacy, negligence, malicious prosecution, false imprisonment, fraud, assault and battery, interference with contractual or other relationships, retaliatory discharge or treatment and/or termination in violation of public policy;
-23- | EmpAgt – Xxxxx |
(ii) any and all claims under any federal, state and/or local discrimination law, regulation, executive order, rule and/or ordinance;
(iii) any and all claims which could have been alleged in any litigation between the Executive and any of the Released Parties;
(iv) any right, claim or demand, which may have arisen on or prior to the date of signing of this Release Agreement, which the Executive may have pursuant to the Age Discrimination in Employment Act, the Older Workers Benefits Protection Act, the WARN Act, the Employee Retirement Income Security Act, the Americans With Disabilities Act, the Fair Labor Standards Act, the Equal Pay Act, the Family Medical Leave Act, the Occupational Safety and Health Act, the Uniformed Services Employment and Reemployment Rights Act, the Fair Credit Reporting Act, Title VII of the Civil Rights Act of 1964, the Whistleblowers' Protection Act, the California Labor Code, the California Fair Employment and Housing Act, the California Labor Management Relations and Employment Practices Laws, the California Wages, Hours and Payment of Wages Laws, the California Equal Pay Laws, the California Handicapped Laws, the California Family Rights Act, the California Sexual Orientation Bias Laws, the California Aids Laws, and/or any other federal, state and/or local law, executive order, rule, ordinance or regulation, all as they have been or may be amended; and
(v) any and all claims arising or accruing through the date of the signing of this Release Agreement, of whatever nature, kind or character, whether known or unknown, past or present, and in furtherance thereof, the Executive expressly waives all rights under Section 1542 of the California Civil Code which reads as follows:
Section 1542. “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”
It is expressly understood and agreed by the Executive that this Release Agreement is in full accord, satisfaction and discharge of any and all doubtful and disputed claims by the Executive against the Released Parties, and that this Release Agreement is intended to include in its effect and to extinguish all claims, whether or not known to the Executive.
-24- | EmpAgt – Xxxxx |
Notwithstanding the foregoing or any contrary provision of this Release Agreement, the Executive, BCH and the Bank agree that the Released Claims shall exclude the Executive’s (i) rights to indemnification under BCH’s or the Bank’s articles of incorporation, bylaws, and/or the indemnification agreement dated March 20, 2003 described in Paragraph 5 of the Employment Agreement; (ii) vested benefits under plans or programs maintained by BCH or the Bank in which the Executive participated prior to the Executive’s termination of employment including, but not limited to, any plan governed by the Employee Retirement Income Security Act, the stock option and equity award plans described in Paragraph 12 of the Employment Agreement and the Supplemental Executive Retirement Plan dated August 1, 2004 described in Paragraph 13 (d) of the Employment Agreement; (iii) rights under applicable federal law to file a charge, testify, assist or cooperate with the Equal Employment Opportunity Commission; (iv) right to file an action to challenge compliance with the waiver requirements of the Age Discrimination in Employment Act, as amended by the Older Workers Benefits Protection Act; (v) claims for unemployment compensation benefits, workers compensation benefits, and health insurance benefits under The Consolidated Omnibus Budget Reconciliation Act (“COBRA”), or under applicable California law pursuant to Cal-COBRA; and (vi) claims which cannot be released as a matter of federal or state law.
The parties further understand and agree as follows:
1. The Executive is not entitled to receive any other compensation, benefit or other payment under the Employment Agreement or this Release Agreement, other than ___________________ to the date of termination of employment and any vested benefits under the BCH and/or Bank _______________ in which the Executive participated. The Executive agrees that the Executive is not entitled to any other benefits under any other program or plan of BCH, the Bank or their respective affiliates or subsidiaries.
2. The Executive has or will promptly return all property of BCH, the Bank, and their respective affiliates and subsidiaries, to them including, but not limited to, property described in Paragraph 7 of the Employment Agreement, club membership interests, customer information, computers and other electronic and technology devices, keys to offices, identification cards and corporate credit cards, prior to receipt of any payments pursuant to this Release Agreement.
3. Any and all relationships of any nature between the parties to this Release Agreement shall terminate, effective __________, 20__ (the “Termination Date”), and that, as of the Termination Date, the Executive has no right or authority to act on behalf of BCH, the Bank, or their respective affiliates and subsidiaries.
4. To the maximum extent permitted by law, the Executive agrees never to file a lawsuit, grievance, or any other type of action asserting any Released Claims under this Release Agreement.
5. This Release Agreement will forever and for all time bar any action and/or Released Claims of the Executive that occurred on or prior to the date of the expiration of the revocation period described below.
6. The Executive shall comply with the nonsolicitation and nondisclosure provisions set forth in Paragraph 4, subparagraphs (b) and (c), and Paragraph 6 of the Employment Agreement.
-25- | EmpAgt – Xxxxx |
7. The Executive, BCH and the Bank agree that no party or its representatives will make, directly or indirectly, or knowlingly encourage any other person or entity to make, any disparaging, derogatory, or defamatory statement(s) regarding the other or any of the Released Parties to third parties including, but not limited to, customers and prospective customers of BCH, the Bank, and/or their respective affiliates and subsidiaries, whether communicated in oral, written, electronic or other form including, but not limited to, through the use of public or social media, the internet, electronic devices, any news or press media, or other form of publication. This restriction shall include, but not be limited to, statements regarding BCH’s and/or the Bank’s policies, procedures, or practices (including, but not limited to, business, lending, or credit policies, procedures or practices). Notwithstanding the foregoing, the parties may provide truthful information in response to a legal subpoena or other legal process.
8. In the event of any dispute between any of the Released Parties and the Executive relating to this Release Agreement and/or the provisions contained herein, or any breach of the provisions of this Release Agreement, the parties agree such dispute shall be resolved by binding arbitration before a representative member, selected by the mutual agreement of the parties, of the Judicial Arbitration and Mediation Services, Inc. ("JAMS"), in accordance with the rules and procedures of JAMS then in effect. In the event JAMS is unable or unwilling to conduct such arbitration, or has discontinued its business, the parties agree that a representative member, selected by the mutual agreement of the parties, of the American Arbitration Association ("AAA"), shall conduct such binding arbitration in accordance with the rules and procedures of the AAA then in effect. Notice of the demand for arbitration shall be filed in writing with the other party to this Agreement and with JAMS (or AAA, if necessary). In no event shall the demand for arbitration be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations. Any award rendered by JAMS or AAA shall be in writing and final and binding upon the parties, and as applicable, their respective heirs, beneficiaries, legal representatives, agents, successors and assigns, and may be entered in any court having jurisdiction thereof to the extent permitted by applicable law. The obligations and rights of the parties to arbitrate pursuant to this clause shall be specifically enforceable in accordance with, and shall be applied, construed and interpreted consistently with, the provisions of the Federal Arbitration Act, 9 U.S.C. section 1, et seq. The Executive agrees to conduct arbitration as an individual solely upon and related to the Executive’s own claims and waives any right to pursue such claims as a class action. Any arbitration hereunder shall be conducted in San Jose, California, unless otherwise agreed to by the parties. The parties understand that by agreeing to arbitrate their disputes, they are giving up their right to have their disputes heard in a court of law and, if applicable, by a jury.
9. If any provision in this Release Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way.
-26- | EmpAgt – Xxxxx |
10. The laws of the State of California, other than those laws denominated choice of law rules, and the rules and regulations of the regulatory authorities having jurisdiction over BCH and the Bank including, but not limited to, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, shall govern the validity, construction and effect of this Release Agreement, except for Paragraph 8 above regarding arbitration, which shall be governed by the Federal Arbitration Act (9 U.S.C. § 1, et seq.). Any action which in any way involves the rights, duties and obligations of the parties hereunder and is not resolved by binding arbitration shall be brought in the courts of the State of California or federal court and venue for any action or proceeding shall be in the California Superior Court for Santa Xxxxx County or in the United States District Court for the Northern District of California, and the parties hereby submit to the personal jurisdiction of said courts.
THE EXECUTIVE IS HEREBY ADVISED TO CONSULT WITH AN ATTORNEY PRIOR TO SIGNING THIS RELEASE AGREEMENT AND THE EXECUTIVE IS PROVIDED WITH A PERIOD OF FORTY-FIVE (45) DAYS IN WHICH TO CONSIDER THIS RELEASE AGREEMENT. THE FORTY-FIVE (45) DAY CONSIDERATION PERIOD EXPIRES ON ________________, 20__.
FOR AN ADDITIONAL PERIOD OF SEVEN (7) DAYS FOLLOWING THE SIGNING OF THIS RELEASE AGREEMENT, THE EXECUTIVE MAY REVOKE THIS RELEASE AGREEMENT BY DELIVERY OF A WRITTEN NOTICE OF REVOCATION TO ______________________________________________________, ON OR BEFORE, 5:00 P.M. PACIFIC TIME OF THE SEVENTH DAY, OR BY MAILING (CERTIFIED MAIL SUGGESTED) A WRITTEN NOTICE OF REVOCATION TO _________________, WHICH MUST BE POSTMARKED NO LATER THAN THAT DATE. THIS RELEASE AGREEMENT SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL SUCH SEVEN (7) DAY PERIOD HAS EXPIRED. IF THE EXECUTIVE FAILS TO SIGN THIS RELEASE AGREEMENT WHEN SCHEDULED, OR IF THE EXECUTIVE REVOKES THIS RELEASE AGREEMENT, IT SHALL NOT BE EFFECTIVE AND ENFORCEABLE AND THE EXECUTIVE WILL NOT RECEIVE ANY PAYMENTS OR BENEFITS DESCRIBED IN THIS RELEASE AGREEMENT, AND MUST RETURN ALL CONSIDERATIONS WHICH MAY HAVE BEEN PAID UNDER THIS RELEASE AGREEMENT WHICH WERE CONDITIONED UPON THE EXECUTION AND EFFECTIVENESS OF THIS RELEASE AGREEMENT.
THE EXECUTIVE ACKNOWLEDGES THAT THE EXECUTIVE HAS HAD THE FORTY-FIVE (45) DAY TIME PERIOD REFERENCED ABOVE TO REVIEW THIS RELEASE AGREEMENT AND HAS CAREFULLY READ AND UNDERSTANDS ITS CONTENTS. THE EXECUTIVE HAS HAD AN OPPORTUNITY DURING THAT FORTY-FIVE (45) DAY PERIOD TO CONSULT WITH AN ATTORNEY REGARDING ITS TERMS. THE EXECUTIVE ACKNOWLEDGES VOLUNTARILY SIGNING THIS RELEASE AGREEMENT WITH THE FULL KNOWLEDGE OF ITS TERMS.
-27- | EmpAgt – Xxxxx |
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
-28- | EmpAgt – Xxxxx |
BRIDGE CAPITAL HOLDINGS | EXECUTIVE | ||
By: | |||
Xxxxx X. Xxxxxx, M.D. | Xxxxxx X. Xxxxx | ||
Chairman of the Board | |||
By: | APPROVED AS TO FORM | ||
Xxxxxx X. Xxxxx | AND CONTENT BY COUNSEL | ||
Director and Chairman of the | TO EXECUTIVE | ||
Compensation Committee | |||
Xxxxx X. Xxxxxx, Esq. | |||
BRIDGE BANK, NATIONAL ASSOCIATION | |||
By: | |||
Xxxxx X. Xxxxxx, M.D. | |||
Chairman of the Board | |||
By: | |||
Xxxxxx X. Xxxxx | |||
Director and Chairman of the | |||
Compensation Committee |
-29- | EmpAgt – Xxxxx |
ACKNOWLEDGMENT OF REFUSAL OF FORTY-FIVE
(45) DAY
REVIEW AND CONSIDERATION PERIOD
I, Xxxxxx X. Xxxxx, understand that the attached General Release Agreement specifically provides me with a forty-five (45) day time period within which to consider the Release Agreement. However, I knowingly and voluntarily choose to make my decision and to sign the Release Agreement in less than forty-five (45) days.
My decision to sign the Release Agreement in less than forty-five (45) days is completely voluntary and was made after consulting with my attorney or having ample opportunity to consult with an attorney of my choice. I have not relied upon any oral statement or promises made by Bridge Capital Holdings, Bridge Bank or their representatives in making this decision.
BRIDGE CAPITAL HOLDINGS, BRIDGE BANK AND THEIR REPRESENTATIVES URGE YOU TO TAKE THE FULL FORTY-FIVE (45) DAYS TO REVIEW THIS AGREEMENT AND THAT YOU DO SO WITH AN ATTORNEY
Date: ___________, 20__ | ||
Xxxxxx X. Xxxxx | ||
APPROVED AS TO FORM | ||
AND CONTENT BY COUNSEL | ||
TO EXECUTIVE | ||
Xxxxx X. Xxxxxx, Esq. |
-30- | EmpAgt – Xxxxx |