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EXHIBIT 10.20
ASTORIA FINANCIAL CORPORATION
AMENDED AND RESTATED
EMPLOYMENT AGREEMENT WITH EXECUTIVE OFFICER
This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement") is made
and entered into as of January 1, 2000 by and between ASTORIA FINANCIAL
CORPORATION, a business corporation organized and operating under the laws of
the State of Delaware and having an office at Xxx Xxxxxxx Xxxxxxx Xxxxx, Xxxx
Xxxxxxx, Xxx Xxxx 00000-0000 (the "Company"), and XXXXXX X. XXXXXX, an
individual residing at 00 Xxxxxxxx Xxxxxx, Xxxxxx Xxxx, Xxx Xxxx 00000 (the
"Executive").
WITNESSETH:
WHEREAS, the Executive currently serves the Company in the capacity of
Vice Chairman and Chief Administrative Officer and as Vice Chairman and Chief
Administrative Officer of its wholly owned subsidiary, ASTORIA FEDERAL SAVINGS
AND LOAN ASSOCIATION (the "Association"); and
WHEREAS, the Executive currently has an Employment Agreement with the
Company dated March 29, 1997 which the Executive and the Company wish to amend
and modify; and
WHEREAS, the Company desires to assure for itself the continued
availability of the Executive's services and the ability of the Executive to
perform such services with a minimum of personal distraction in the event of a
pending or threatened Change of Control (as hereinafter defined); and
WHEREAS, the Executive is willing to continue to serve the Company on the
terms and conditions hereinafter set forth;
NOW, THEREFORE, in consideration of the premises and the mutual covenants
and conditions hereinafter set forth, the Company and the Executive hereby amend
and restate in its entirety the Employment Agreement by and between the Company
and the Executive dated as of March 29, 1997 so as to provide as follows from
and after the date hereof:
Section 1. Employment.
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The Company agrees to continue to employ the Executive, and the Executive
hereby agrees to such continued employment, during the period and upon the terms
and conditions set forth in this Agreement.
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Section 2. Employment Period; Remaining Unexpired Employment Period.
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(a) The terms and conditions of this Agreement shall be and remain in
effect during the period of employment established under this
Section 2 (the "Employment Period"). The Employment Period shall be
for an initial term of three years beginning on the date of this
Agreement and ending on the day before the third anniversary date of
this Agreement, plus such extensions, if any, as are provided by the
Board of Directors of the Company (the "Board") pursuant to Section
2(b).
(b) Beginning on the date of this Agreement, the Employment Period shall
automatically be extended for one (1) additional day each day,
unless either the Company or the Executive elects not to extend the
Agreement further by giving written notice to the other party, in
which case the Employment Period shall end on the day before the
third anniversary of the date on which such written notice is given.
For all purposes of this Agreement, the term "Remaining Unexpired
Employment Period" as of any date shall mean the period beginning on
such date and ending on:
(i) if a notice of non-extension has been given in accordance with
this Section 2(b), the day before the third anniversary of the
date on which such notice is given; and
(ii) in all other cases, the day before the third anniversary of
the date as of which the Remaining Unexpired Employment Period
is being determined.
Upon termination of the Executive's employment with the Company for
any reason whatsoever, any daily extensions provided pursuant to
this Section 2(b), if not previously discontinued, shall
automatically cease.
(c) Nothing in this Agreement shall be deemed to prohibit the Company
from terminating the Executive's employment at any time during the
Employment Period with or without notice for any reason; provided,
however, that the relative rights and obligations of the Company and
the Executive in the event of any such termination shall be
determined pursuant to this Agreement.
Section 3. Duties.
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The Executive shall serve as Vice Chairman and Chief Administrative
Officer of the Company, having such power, authority and responsibility and
performing such duties as are prescribed by or pursuant to the By-Laws of the
Company and as are customarily associated with such position. The Executive
shall devote his or her full business time and attention (other than during
weekends, holidays, approved vacation periods, and periods of illness or
approved leaves of absence) to the business and affairs of the Company, its
affiliates and subsidiaries and shall use his
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or her best efforts to advance the interests of the Company.
Section 4. Cash Compensation.
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In consideration for the services to be rendered by the Executive
hereunder, the Company shall pay to him or her a salary at an initial annual
rate of THREE HUNDRED SEVENTY FIVE THOUSAND DOLLARS ($375,000), payable in
approximately equal installments in accordance with the Company's customary
payroll practices for senior officers. At least annually during the Employment
Period, the Board shall review the Executive's annual rate of salary and may, in
its discretion, approve an increase therein. In no event shall the Executive's
annual rate of salary under this Agreement in effect at a particular time be
reduced without his or her prior written consent and any such reduction in the
absence of such consent shall be a material breach of this Agreement. In
addition to salary, the Executive may receive other cash compensation from the
Company for services hereunder at such times, in such amounts and on such terms
and conditions as the Board may determine from time to time.
Section 5. Employee Benefit Plans and Programs.
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During the Employment Period, the Executive shall be treated as an
employee of the Company and shall be entitled to participate in and receive
benefits under any and all qualified or non-qualified retirement, pension,
savings, profit-sharing or stock bonus plans, any and all group life, health
(including hospitalization, medical and major medical), dental, accident and
long term disability insurance plans, and any other employee benefit and
compensation plans (including, but not limited to, any incentive compensation
plans or programs, stock option and appreciation rights plans and restricted
stock plans) as may from time to time be maintained by, or cover employees of,
the Company, in accordance with the terms and conditions of such employee
benefit plans and programs and compensation plans and programs and consistent
with the Company's customary practices.
Section 6. Indemnification and Insurance.
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(a) During the Employment Period and for a period of six (6) years
thereafter, the Company shall cause the Executive to be covered by
and named as an insured under any policy or contract of insurance
obtained by it to insure its directors and officers against personal
liability for acts or omissions in connection with service as an
officer or director of the Company or service in other capacities at
the request of the Company. The coverage provided to the Executive
pursuant to this Section 6 shall be of the same scope and on the
same terms and conditions as the coverage (if any) provided to other
officers or directors of the Company.
(b) To the maximum extent permitted under applicable law, during the
Employment Period and for a period of six (6) years thereafter, the
Company shall indemnify the Executive against, and hold him or her
harmless from, any costs, liabilities, losses
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and exposures to the fullest extent and on the most favorable terms
and conditions that similar indemnification is offered to any
director or officer of the Company or any subsidiary or affiliate
thereof.
Section 7. Other Activities.
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(a) The Executive may serve as a member of the boards of directors of
such business, community and charitable organizations as he or she
may disclose to and as may be approved by the Board (which approval
shall not be unreasonably withheld); provided, however, that such
service shall not materially interfere with the performance of his
or her duties under this Agreement. The Executive may also engage in
personal business and investment activities which do not materially
interfere with the performance of his or her duties hereunder;
provided, however, that such activities are not prohibited under any
code of conduct or investment or securities trading policy
established by the Company and generally applicable to all similarly
situated executives.
(b) The Executive may also serve as an officer or director of the
Association on such terms and conditions as the Company and the
Association may mutually agree upon, and such service shall not be
deemed to materially interfere with the Executive's performance of
his or her duties hereunder or otherwise result in a material breach
of this Agreement. If the Executive is discharged or suspended, or
is subject to any regulatory prohibition or restriction with respect
to participation in the affairs of the Association, he or she shall
(subject to the Company's powers of termination hereunder) continue
to perform services for the Company in accordance with this
Agreement but shall not directly or indirectly provide services to
or participate in the affairs of the Association in a manner
inconsistent with the terms of such discharge or suspension or any
applicable regulatory order.
Section 8. Working Facilities and Expenses.
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The Executive's principal place of employment shall be at the Company's
executive offices at the address first above written, or at such other location
within Queens County or Nassau County, New York at which the Company shall
maintain its principal executive offices, or at such other location as the
Company and the Executive may mutually agree upon. The Company shall provide the
Executive at his or her principal place of employment with a private office,
secretarial services and other support services and facilities suitable to his
or her position with the Company and necessary or appropriate in connection with
the performance of his or her assigned duties under this Agreement. The Company
shall provide to the Executive for his or her exclusive use an automobile owned
or leased by the Company and appropriate to his or her position, to be used in
the performance of his or her duties hereunder, including commuting to and from
his or her personal residence. The Company shall reimburse the Executive for his
or her ordinary and necessary business expenses, including, without limitation,
all expenses associated with his or her business use
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of the aforementioned automobile, fees for memberships in such clubs and
organizations as the Executive and the Company shall mutually agree are
necessary and appropriate for business purposes, and his or her travel and
entertainment expenses incurred in connection with the performance of his or her
duties under this Agreement, in each case upon presentation to the Company of an
itemized account of such expenses in such form as the Company may reasonably
require.
Section 9. Termination of Employment with Severance Benefits.
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(a) The Executive shall be entitled to the severance benefits described
herein in the event that his or her employment with the Company
terminates during the Employment Period under any of the following
circumstances:
(i) the Executive's voluntary resignation from employment with the
Company within six (6) months following:
(A) the failure of the Board to appoint or re-appoint or
elect or re-elect the Executive to the office of Vice
Chairman and Chief Administrative Officer (or a more
senior office) of the Company;
(B) if the Executive is or becomes a member of the Board,
the failure of the stockholders of the Company to elect
or re-elect the Executive to the Board or the failure of
the Board (or the nominating committee thereof) to
nominate the Executive for such election or re-election;
(C) the expiration of a thirty (30) day period following the
date on which the Executive gives written notice to the
Company of its material failure, whether by amendment of
the Company's Certificate of Incorporation or By-laws,
action of the Board or the Company's stockholders or
otherwise, to vest in the Executive the functions,
duties, or responsibilities prescribed in Section 3 of
this Agreement as of the date hereof, unless, during
such thirty (30) day period, the Company cures such
failure in a manner determined by the Executive, in his
or her discretion, to be satisfactory;
(D) the expiration of a thirty (30) day period following the
date on which the Executive gives written notice to the
Company of its material breach of any term, condition or
covenant contained in this Agreement (including, without
limitation, any reduction of the Executive's rate of
base salary in effect from time to time and any change
in the terms and conditions of any compensation or
benefit program in which the Executive participates
which, either individually or together with other
changes, has a material adverse
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effect on the aggregate value of his or her total
compensation package), unless, during such thirty (30)
day period, the Company cures such failure in a manner
determined by the Executive, in his or her discretion,
to be satisfactory; or
(E) the relocation of the Executive's principal place of
employment, without his or her written consent, to a
location outside of Nassau County and Queens County, New
York;
(ii) the termination of the Executive's employment with the Company
for any other reason not described in Section 10(a).
In such event, the Company shall provide the benefits and pay to the
Executive the amounts described in Section 9(b).
(b) Upon the termination of the Executive's employment with the Company
under circumstances described in Section 9(a) of this Agreement, the
Company shall pay and provide to the Executive (or, in the event of
the Executive's death following the Executive's termination of
employment, to his or her estate):
(i) his or her earned but unpaid compensation (including, without
limitation, all items which constitute wages under Section
190.1 of the New York Labor Law and the payment of which is
not otherwise provided for under this Section 9(b)) as of the
date of the termination of his or her employment with the
Company, such payment to be made at the time and in the manner
prescribed by law applicable to the payment of wages but in
any event not later than thirty (30) days after termination of
employment;
(ii) the benefits, if any, to which he or she is entitled as a
former employee under the employee benefit plans and programs
and compensation plans and programs maintained for the
benefit of the Company's officers and employees;
(iii) continued group life, health (including hospitalization,
medical and major medical), dental, accident and long term
disability insurance benefits, in addition to that provided
pursuant to Section 9(b)(ii), and after taking into account
the coverage provided by any subsequent employer, if and to
the extent necessary to provide for the Executive, for the
Remaining Unexpired Employment Period, coverage (including any
co-payments and deductibles, but excluding any premium sharing
arrangements, it being the intention of the parties to this
Agreement that the premiums for such insurance benefits shall
be the sole cost and expense of the Company) equivalent to the
coverage to which he or she would have been entitled under
such plans (as in effect on the date of his or her termination
of employment, or, if his or her
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termination of employment occurs after a Change of Control, on
the date of such Change of Control, whichever benefits are
greater), if he or she had continued working for the Company
during the Remaining Unexpired Employment Period at the
highest annual rate of salary or compensation, as applicable,
achieved during that portion of the Employment Period which is
prior to the Executive's termination of employment with the
Company;
(iv) within thirty (30) days following the Executive's termination
of employment with the Company, a lump sum payment in an
amount representing an estimate of the salary that the
Executive would have earned if he or she had continued working
for the Company during the Remaining Unexpired Employment
Period at the highest annual rate of salary achieved during
that portion of the Employment Period which is prior to the
Executive's termination of employment with the Company (the
"Salary Severance Payment"). The Salary Severance Payment
shall be computed using the following formula:
SSP = BS x NY
where:
"SSP" is the amount of the Salary Severance Payment, before
the deduction of applicable federal, state and local
withholding taxes;
"BS" is the highest annual rate of salary achieved during that
portion of the Employment Period which is prior to the
Executive's termination of employment with the Company;
"NY" is the Remaining Unexpired Employment Period expressed as
a number of years (rounded, if such period is not a whole
number, to the next highest whole number).
The Salary Severance Payment shall be paid in lieu of all
other payments of salary provided for under this Agreement in
respect of the period following any such termination.
(v) within thirty (30) days following the Executive's termination
of employment with the Company, a lump sum payment (the "XX
Xxxxxxxxx Payment") in an amount equal to the excess, if any,
of:
(A) the present value of the aggregate benefits to which he
or she would be entitled under any and all qualified and
non-qualified defined benefit pension plans maintained
by, or covering employees of, the
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Company, if he or she were 100% vested thereunder and
had continued working for the Company during the
Remaining Unexpired Employment Period, such benefits to
be determined as of the date of termination of
employment by adding to the service actually recognized
under such plans an additional period equal to the
Remaining Unexpired Employment Period and by adding to
the compensation recognized under such plans for the
most recent year recognized all amounts payable pursuant
to Sections 9(b)(i), (iv), (vii), (viii) and (ix) of
this Agreement; over
(B) the present value of the benefits to which he or she is
actually entitled under such defined benefit pension
plans as of the date of his or her termination;
The XX Xxxxxxxxx Payment shall be computed using the following
formula:
DBSP = SEVLS - LS
where:
"DBSP" is the amount of the XX Xxxxxxxxx Payment, before the
deduction of applicable federal, state and local withholding
taxes;
"SEVLS" is the sum of the present value of the defined benefit
pension benefits that have been or would be accrued by the
Executive under all qualified and non-qualified defined
benefit pension plans of which the Company or any of its
affiliates or subsidiaries are a sponsor and in which the
Executive is or, but for the completion of any service
requirement that would have been completed during the
Remaining Unexpired Employment Period, would be a participant
utilizing the following assumptions:
(I) the executive is 100% vested in the plans
regardless of actual service,
(II) the benefit to be valued shall be a single life
annuity with monthly payments due on the first day
of each month and with a guaranteed payout of not
less than 120 monthly payments,
(III) the calculation shall be made utilizing the same
mortality table and interest rate as would be
utilized by the plan on the date of termination as
if the calculation were being made pursuant to
Section 417(e)(3)(A)(ii) of the Internal Revenue
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Code, as amended, (the "Code");
(IV) for purpose of calculating the Executive's monthly
or annual benefit under the defined benefit plans,
additional service equal to the Remaining
Unexpired Employment Period (rounded up to the
next whole year if such period is not a whole
number when expressed in years) shall be added to
the Executive's actual service to calculate the
amount of the benefit; and
(V) for purpose of calculating the Executive's monthly
or annual benefit under the defined benefit plans,
the following sums shall be added to the
Executive's compensation recognized under such
plans for the most recent year recognized:
(1) payments made pursuant to Section 9(b)(i);
(2) the Salary Severance Payment;
(3) the Bonus Severance Payment;
(4) the Option Surrender Payment; and
(5) the RRP Surrender Payment.
"LS" is the sum of the present value of the defined benefit
pension benefits that are vested benefits actually accrued by
the Executive under all qualified and non-qualified defined
benefit pension plans maintained by, or covering employees of,
the Company or any of its affiliates or subsidiaries in which
the Executive is or, but for the completion of any service
requirement, would be a participant utilizing the following
assumptions:
(I) the benefit to be valued shall be a single life
annuity with monthly payments due on the first day
of each month and with a guaranteed payout of not
less than 120 monthly payments, and
(II) the calculation shall be made utilizing the same
mortality table and interest rate as would be
utilized by the plan on the date of termination as
if the calculation were being made pursuant to
Section 417(e)(3)(A)(ii) of the Code;
(vi) within thirty (30) days following the Executive's termination
of employment with the Company, a lump sum payment (the
"Defined Contribution Severance Payment") equal to the sum of:
(A) an estimate of the additional employer contributions to
which he or
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she would have been entitled under any and all qualified
and non- qualified defined contribution pension plans,
excluding the employee stock ownership plans, maintained
by, or covering employees of, the Company or any of its
affiliates or subsidiaries as if he or she were 100%
vested thereunder and had continued working for the
Company during the Remaining Unexpired Employment Period
(the "401K Severance Payment"); and
(B) an estimate of the value of the additional assets which
would have been allocable to him or her through debt
service or otherwise under any and all qualified and
non-qualified employee stock ownership plans, maintained
by, or covering employees of, the Company or any of its
affiliates or subsidiaries as if he or she were 100%
vested thereunder and had continued working for the
Company during the Remaining Unexpired Employment
Period, based on the fair market value of such assets at
termination of employment (the "ESOP Severance
Payment").
The Defined Contribution Severance Payment shall be calculated
as follows:
DCSP = 401KSP + ESOPSP
where:
"DCSP" is the amount of the Defined Contribution Severance
Payment, before the deduction of applicable federal, state and
local withholding taxes;
"401KSP" is the amount of the 401K Severance Payment, before
the deduction of applicable federal, state and local
withholding taxes; and
"ESOPSP" is the amount of the ESOP Severance Payment, before
the deduction of applicable federal, state and local
withholding taxes.
The 401KSP shall be calculated as follows:
401KSP = (401KC x NY) + UVB
where
"401KC" is the sum of the Company Contributions as defined in
the Association's Incentive Savings Plan or, if made under
another defined contribution pension plan other than an
employee stock ownership plan, the comparable contribution
made for the benefit of the Executive during the one
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year period which shall end on the date of his or her
termination of his or her employment with the Company;
"NY" is the Remaining Unexpired Employment Period expressed as
a number of years (rounded, if such period is not a whole
number, to the next highest whole number); and
"UVB" is the actual balance credited to the Executive's
account under the applicable plan at the date of his or her
termination of employment that is not vested and does not
become vested as a consequence of such termination of
employment.
The ESOPSP shall be calculated as follows:
ESOPSP = (((ALL x FMV) + C) x NY) + UVB
where:
"ALL" is the sum of the number of shares of the Company's
common stock or, if applicable, phantom shares of such stock
by whatever term it is described allocated to the Executive's
accounts under all qualified and non- qualified employee stock
ownership plans maintained by the Company or any of its
affiliates or subsidiaries during or for the last complete
plan year in which the Executive participated in such plans
and received such an allocation whether the allocation
occurred as a result of contributions made by the Company, the
payment by the Company or any of its affiliates or
subsidiaries of any loan payments under a leveraged employee
stock ownership plan, the allocation of forfeitures under the
terms of such plan or as a result of the use of cash or
earnings allocated to the Executive's account during such plan
year to make loan payments that result in share allocations,
provided however, that excluded shall be any shares or phantom
shares allocated to the Executive's account under any
qualified and non-qualified employee stock ownership plans
maintained by the Company or any of its affiliates or
subsidiaries solely as a result of the termination of such
plans, provided further, that if the shares allocated are not
shares of the Association's common stock or phantom shares of
such stock than shares of whatever securities are so allocated
shall be utilized, and provided further, that in the event
that there shall be any shares or phantom shares allocated
during the then current plan year or the last complete plan
year to the Executive's account under any qualified and
non-qualified employee stock ownership plans maintained by the
Association or any of its affiliates or subsidiaries solely as
a result of the termination of such plans, the ALL shall be
reduced (but not to an amount less than zero (0)) by an amount
calculated
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by multiplying the number of shares or phantom shares
allocated to the Executive's account solely as a result of the
termination of such plans times the FMV utilized to calculate
the ESOPSP;
"C" is the sum of all cash allocated to the Executive's
accounts under all qualified and non-qualified employee stock
ownership plans maintained by the Company during or for the
last complete plan year in which the Executive participated in
such plans whether the allocation occurred as a result of
contributions made by the Company, the payment by the Company
or the Association of any loan payments under a leveraged
employee stock ownership plan or the allocation of forfeitures
under the terms of such plan during such plan year;
"FMV" is the closing price of the Company's common stock on
The Nasdaq Stock Market or on whatever other stock exchange or
market such stock is publicly traded on the date the
Executive's employment terminates or, if such day is not a day
on which such securities are traded, on the most recent
preceding trading day on which a trade occurs, provided
however that if the security allocated to the Executive's
account during the last completed plan year is other than the
Company's common stock the closing price of such other
security on the date the Executive's employment terminates
shall be utilized.
"NY" is the Remaining Unexpired Employment Period expressed as
a number of years (rounded, if such period is not a whole
number, to the next highest whole number); and
"UVB" is the actual balance credited to the Executive's
account under the applicable plan at the date of his or her
termination of employment that is not vested and does not
become vested as a consequence of such termination of
employment.
(vii) within thirty (30) days following the Executive's termination
of employment with the Company, the Company shall make a lump
sum payment to the Executive in an amount equal to the
estimated potential annual bonuses or incentive compensation
that the Executive could have earned if the Executive had
continued working for the Company during the Unexpired
Employment Period at the highest annual rate of salary
achieved during that portion of the Employment Period which is
prior to the Executive's termination of employment with the
Company (the "Bonus Severance Payment"). The Bonus Severance
Payment shall be computed using the following formula:
BSP = (BS x TIO x AP x NY)
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where:
"BSP" is the amount of the Bonus Severance Payment, before the
deduction of applicable federal, state and local withholding
taxes;
"BS" is the highest annual rate of salary achieved during that
portion of the Employment Period which is prior to the
Executive's termination of employment with the Company;
"TIO" is the highest target incentive opportunity (expressed
as a percentage of base salary) established by the
Compensation Committee of the Board for the Executive pursuant
to the Astoria Financial Corporation Executive Officer Annual
Incentive Plan during that portion of the Employment Period
which is prior to the Executive's termination of employment
with the Company;
"AP" is the highest award percentage available to the
Executive with respect to the financial performance of the
Company (expressed as a percentage of the TIO) established by
the Compensation Committee of the Board for the Executive
pursuant to the Astoria Financial Corporation Executive
Officer Annual Incentive Plan during the period during that
portion of the Employment Period which is prior to the
Executive's termination of employment with the Company; and
"NY" is the Remaining Unexpired Employment Period expressed as
a number of years (rounded, if such period is not a whole
number, to the next highest whole number).
(viii) at the election of the Company made within thirty (30) days
following the Executive's termination of employment with the
Company, upon the surrender of options or appreciation rights
issued to the Executive under any stock option and
appreciation rights plan or program maintained by, or covering
employees of, the Company, a lump sum payment (the "Option
Surrender Payment"). The Option Surrender Payment shall be
calculated as follows:
OSP = (FMV - EP) x N
where:
"OSP" is the amount of the Option Surrender Payment, before
the deduction of applicable federal, state and local
withholding taxes;
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"FMV" is the closing price of the Company's common stock on
The Nasdaq Stock Market, or on whatever other stock exchange
or market such stock is publicly traded, on the date the
Executive's employment terminates or, if such day is not a day
on which such securities are traded, on the most recent
preceding trading day on which a trade occurs, provided
however that if the option or stock appreciation right is for
a security other than the Company's common stock, the fair
market value of a share of stock of the same class as the
stock subject to the option or appreciation right, determined
as of the date of termination of employment shall be utilized;
"EP" is the exercise price per share for such option or
appreciation right, as specified in or under the relevant plan
or program; and
"N" is the number of shares with respect to which options or
appreciation rights are being surrendered.
For purposes of determining the Option Severance Payment and
for purposes of determining the Executive's right following
his or her termination of employment with the Company to
exercise any options or appreciation rights not surrendered
pursuant hereto, the Executive shall be deemed fully vested in
all options and appreciation rights under any stock option or
appreciation rights plan or program maintained by, or covering
employees of, the Company, even if he or she is not vested
under such plan or program;
(ix) at the election of the Company made within thirty (30) days
following the Executive's termination of employment with the
Company, upon the surrender of any shares awarded to the
Executive under any restricted stock plan maintained by, or
covering employees of, the Company, a lump sum payment (the
"RRP Surrender Payment") The RRP Surrender Payment shall be
calculated as follows:
RSP = FMV x N
where:
"RSP" is the amount of the RRP Surrender Payment, before the
deduction of applicable federal, state and local withholding
taxes;
"FMV" is the closing price of the Company's common stock on
The Nasdaq Stock Market, or on whatever other stock exchange
or market such stock is publicly traded, on the date the
Executive's employment terminates or, if such day is not a day
on which such securities are traded, on the preceding trading
day on which a trade occurs, provided however that if the
restricted stock is
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a security other than the Company's common stock, the fair
market value of a share of stock of the same class as the
stock granted under such plan, determined as of the date of
termination of employment shall be utilized; and
"N" is the number of shares which are being surrendered.
For purposes of determining the RRP Surrender Payment and for
purposes of determining the Executive's right following his or
her termination of employment with the Company to any stock
not surrendered pursuant hereto, the Executive shall be deemed
fully vested in all shares awarded under any restricted stock
plan maintained by, or covering employees of, the Company,
even if he or she is not vested under such plan.
The Salary Severance Payment, the XX Xxxxxxxxx Payment, the Defined
Contribution Severance Payment, the Bonus Severance Payment, the
Option Surrender Payment and the RRP Surrender Payment shall be
computed at the expense of the Company by an attorney of the firm of
Xxxxxxx Xxxxxxxx & Xxxx, Two World Trade Center, New York, New York
10048 or, if such firm is unavailable or unwilling to perform such
calculation, by a firm of independent certified public accountants
selected by the Executive and reasonably satisfactory to the Company
(the "Computation Advisor"). The determination of the Computation
Advisor as to the amount of such payments shall be final and binding
in the absence of manifest error.
The Company and the Executive hereby stipulate that the damages
which may be incurred by the Executive following any such
termination of employment are not capable of accurate measurement as
of the date first above written and that the payments and benefits
contemplated by this Section 9(b) constitute reasonable damages
under the circumstances and shall be payable without any requirement
of proof of actual damage and without regard to the Executive's
efforts, if any, to mitigate damages. The Company and the Executive
further agree that the Company may condition the payment of the
Salary Severance Payment, the XX Xxxxxxxxx Payment, the Defined
Contribution Severance Payment, the Bonus Severance Payment, the
Option Surrender Payment and the RRP Surrender Payment on the
receipt of the Executive's resignation from any and all positions
which he or she holds as an officer, director or committee member
with respect to the Company, the Association or any subsidiary or
affiliate of either of them.
Section 10. Termination without Additional Company Liability.
------------------------------------------------
(a) In the event that the Executive's employment with the Company shall
terminate during the Employment Period on account of:
Page 15 of 31
16
(i) the discharge of the Executive for Cause, which, for purposes
of this Agreement shall mean:
(A) the Executive intentionally engages in dishonest conduct
in connection with the Executive's performance of
services for the Company resulting in the Executive's
conviction of a felony;
(B) the Executive is convicted of, or pleads guilty or nolo
contendere to, a felony or any crime involving moral
turpitude;
(C) the Executive willfully fails or refuses to perform the
Executive's duties under this Agreement and fails to
cure such breach within sixty (60) days following
written notice thereof from the Company;
(D) the Executive breaches the Executive's fiduciary duties
to the Company for personal profit;
(E) the Executive's willful breach or violation of any law,
rule or regulation (other than traffic violations or
similar offenses), or final cease and desist order in
connection with the Executive's performance of services
for the Company; or
(F) the Executive's material breach of any material
provision of this Agreement which is not substantially
cured within 60 days after written notice of such breach
is received by the Executive from the Company.
(ii) the Executive's voluntary resignation from employment with the
Company for reasons other than those specified in Section 9(a)
or 11(b);
(iii) the Executive's death;
(iv) a determination that the Executive is Disabled;
(v) the Executive's termination of employment for any reason at or
after attainment of mandatory retirement age under the
Company's mandatory retirement policy for executive officers
in effect as of the date of this Agreement;
then the Company, except as otherwise specifically provided herein,
shall have no further obligations under this Agreement, other than
the payment to the Executive (or, in the event of his or her death,
to his or her estate) of the amounts or benefits provided in Section
9(b)(i) and (ii) of this Agreement (the "Standard Termination
Page 16 of 31
17
Entitlements").
(b) For purposes of Section 10(a)(i), no act or failure to act, on the
part of the Executive, shall be considered "intentional" or
"willful" unless it is done, or omitted to be done, by the Executive
in bad faith or without reasonable belief that the Executive's
action or omission was in the best interests of the Company. Any
act, or failure to act, based upon authority given pursuant to a
resolution duly adopted by the Board or based upon the written
advice of counsel for the Company shall be conclusively presumed to
be done, or omitted to be done, by the Executive in good faith and
in the best interests of the Company. Except as specifically
provided below, the cessation of employment of the Executive shall
not be deemed to be for Cause within the meaning of Section 10(a)(i)
unless and until:
(i) the Board, by the affirmative vote of 75% of its entire
membership, determines that the Executive is guilty of the
conduct described in Section 10(a)(i) above measured against
standards generally prevailing at the relevant time in the
savings and community banking industry;
(ii) prior to the vote contemplated by Section 10(b)(i), the Board
shall provide the Executive with notice of the Company's
intent to discharge the Executive for Cause, detailing with
particularity the facts and circumstances which are alleged to
constitute Cause (the "Notice of Intent to Discharge"); and
(iii) after the giving of the Notice of Intent to Discharge and
before the taking of the vote contemplated by Section
10(b)(i), the Executive, together with the Executive's legal
counsel, if the Executive so desires, are afforded a
reasonable opportunity to make both written and oral
presentations before the Board for the purpose of refuting the
alleged grounds for Cause for the Executive's discharge; and
(iv) after the vote contemplated by Section 10(b)(i), the Company
has furnished to the Executive a notice of termination which
shall specify the effective date of the Executive's
termination of employment (which shall in no event be earlier
than the date on which such notice is deemed given) and
include a copy of a resolution or resolutions adopted by the
Board, certified by its corporate secretary, authorizing the
termination of the Executive's employment with Cause and
stating with particularity the facts and circumstances found
to constitute Cause for the Executive's discharge (the "Final
Discharge Notice").
If the Executive, during the 90 (ninety) day period commencing on
the delivery by the Company to the Executive of the Notice of Intent
to Discharge specified in Section 10(b)(ii), resigns his or her
employment with the Company prior to the
Page 17 of 31
18
delivery to the Executive by the Company of the Final Discharge
Notice specified in Section 10(b)(iv), then the cessation of
employment of the Executive shall be deemed to be for Cause.
Following the giving of a Notice of Intent to Discharge, the Bank
may temporarily suspend the Executive's duties and authority and, in
such event, may also suspend the payment of salary and other cash
compensation, but not the Executive's participation in retirement,
insurance and other employee benefit plans. If the Executive is not
discharged or is discharged without Cause within forty-five (45)
days after the giving of a Notice of Intent to Discharge, payments
of salary and cash compensation shall resume, and all payments
withheld during the period of suspension shall be promptly restored.
If the Executive is discharged with Cause not later than forty-five
(45) days after the giving of the Notice of Intent to Discharge, all
payments withheld during the period of suspension shall be deemed
forfeited and shall not be included in the Standard Termination
Entitlements. If a Final Discharge Notice is given later than
forty-five (45) days, but sooner than ninety (90) days, after the
giving of the Notice of Intent to Discharge, all payments made to
the Executive during the period beginning with the giving of the
Notice of Intent to Discharge and ending with the Executive's
discharge with Cause shall be retained by the Executive and shall
not be applied to offset the Standard Termination Entitlements. If
the Bank does not give a Final Discharge Notice to the Executive
within ninety (90) days after giving a Notice of Intent to
Discharge, the Notice of Intent to Discharge shall be deemed
withdrawn and any future action to discharge the Executive with
Cause shall require the giving of a new Notice of Intent to
Discharge. If the Executive resigns pursuant to Section 10(b), the
Executive shall forfeit his or her right to suspended amounts that
have not been restored as of the date of the Executive's resignation
or notice of resignation, whichever is earlier.
(c) The Company may terminate the Executive's employment on the basis
that the Executive is Disabled during the Employment Period upon a
determination by the Board, by the affirmative vote of 75% of its
entire membership, acting in reliance on the written advice of a
medical professional acceptable to it, that the Executive is
suffering from a physical or mental impairment which, at the date of
the determination, has prevented the Executive from performing the
Executive's assigned duties on a substantially full-time basis for a
period of at least one hundred and eighty (180) days during the
period of one (1) year ending with the date of the determination or
is likely to result in death or prevent the Executive from
performing the Executive's assigned duties on a substantially
full-time basis for a period of at least one hundred and eighty
(180) days during the period of one (1) year beginning with the date
of the determination. In such event:
(A) The Company shall pay and provide the Standard Termination
Entitlements to the Executive;
Page 18 of 31
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(B) In addition to the Standard Termination Entitlements,
the Company shall continue to pay to the Executive the
Executive's base salary, at the annual rate in effect
for the Executive immediately prior to the termination
of the Executive's employment, during a period ending on
the earliest of:
(I) the expiration of one hundred and eighty (180)
days after the date of termination of the
Executive's employment;
(II) the date on which long-term disability insurance
benefits are first payable to the Executive under
any long-term disability insurance plan covering
the Executive; or
(III) the date of the Executive's death.
A termination of employment due to Disability under this
Section shall be effected by a notice of termination given to
the Executive by the Company and shall take effect on the
later of the effective date of termination specified in such
notice or, if no such date is specified, the date on which the
notice of termination is deemed given to the Executive.
Section 11. Termination Upon or Following a Change of Control.
-------------------------------------------------
(a) A Change of Control of the Company ("Change of Control") shall be
deemed to have occurred upon the happening of any of the following
events:
(i) approval by the stockholders of the Company of a transaction
that would result in the reorganization, merger or
consolidation of the Company with one or more other persons,
other than a transaction following which:
(A) at least 51% of the equity ownership interests of the
entity resulting from such transaction are beneficially
owned (within the meaning of Rule 13d-3 promulgated
under the Securities Exchange Act of 1934, as amended
(the "Exchange Act")) in substantially the same relative
proportions by persons who, immediately prior to such
transaction, beneficially owned (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) at least
51% of the outstanding equity ownership interests in the
Company; and
(B) at least 51% of the securities entitled to vote
generally in the election of directors of the entity
resulting from such transaction are beneficially owned
(within the meaning of Rule 13d-3 promulgated
Page 19 of 31
20
under the Exchange Act) in substantially the same
relative proportions by persons who, immediately prior
to such transaction, beneficially owned (within the
meaning of Rule 13d-3 promulgated under the Exchange
Act) at least 51 % of the securities entitled to vote
generally in the election of directors of the Company;
(ii) the acquisition of all or substantially all of the assets of
the Company or beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of 20% or more
of the outstanding securities of the Company entitled to vote
generally in the election of directors by any person or by any
persons acting in concert, or approval by the stockholders of
the Company of any transaction which would result in such an
acquisition;
(iii) a complete liquidation or dissolution of the Company, or
approval by the stockholders of the Company of a plan for such
liquidation or dissolution;
(iv) the occurrence of any event if, immediately following such
event, at least 50% of the members of the Board do not belong
to any of the following groups:
(A) individuals who were members of the Board on the date of
this Agreement; or
(B) individuals who first became members of the Board after
the date of this Agreement either:
(I) upon election to serve as a member of the Board by
affirmative vote of three-quarters of the members
of such Board, or of a nominating committee
thereof, in office at the time of such first
election; or
(II) upon election by the stockholders of the Company
to serve as a member of the Board, but only if
nominated for election by affirmative vote of
three-quarters of the members of the Board, or of
a nominating committee thereof, in office at the
time of such first nomination;
provided, however, that such individual's election or
nomination did not result from an actual or threatened
election contest (within the meaning of Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act) or
other actual or threatened solicitation of proxies or
consents (within the meaning of Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act) other
than by or on behalf of
Page 20 of 31
21
the Board; or
(v) any event which would be described in Section 11(a)(i), (ii),
(iii) or (iv) if the term "Association" were substituted for
the term "Company" therein or the term "Board of Directors of
the Association" were substituted for the term "Board".
In no event, however, shall a Change of Control be deemed to have
occurred as a result of any acquisition of securities or assets of
the Company, the Association, or an affiliate or subsidiary of
either of them, by the Company, the Association, or a subsidiary of
either of them, or by any employee benefit plan maintained by any of
them. For purposes of this Section 11 (a), the term "person" shall
have the meaning assigned to it under Sections 13(d)(3) or 14(d)(2)
of the Exchange Act.
(b) In the event of a Change of Control, the Executive shall be entitled
to the payments and benefits contemplated by Section 9(b) in the
event of his or her termination of employment with the Company under
any of the circumstances described in Section 9(a) of this Agreement
or under any of the following circumstances:
(i) resignation, voluntary or otherwise, by the Executive at any
time during the Employment Period within six (6) months
following his or her demotion, loss of title, office or
significant authority or responsibility or following any
reduction in any element of his or her package of compensation
and benefits;
(ii) resignation, voluntary or otherwise, by the Executive at any
time during the Employment Period within six (6) months
following any relocation of his or her principal place of
employment or any change in working conditions at such
principal place of employment which the Executive, in his or
her reasonable discretion, determines to be embarrassing,
derogatory or otherwise adverse;
(iii) resignation, voluntary or otherwise, by the Executive at any
time during the Employment Period within six (6) months
following the failure of any successor to the Company in the
Change of Control to include the Executive in any compensation
or benefit program maintained by it or covering any of its
executive officers, unless the Executive is already covered by
a substantially similar plan of the Company which is at least
as favorable to him or her; or
(iv) resignation, voluntary or otherwise, for any reason whatsoever
during the Employment Period within six months following the
effective date of the Change of Control.
Page 21 of 31
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Section 12. Tax Indemnification.
-------------------
(a) This Section 12 shall apply if the Executive's employment is
terminated upon or following:
(i) a Change of Control (as defined in Section 11 of this
Agreement); or
(ii) a change "in the ownership or effective control" of the
Company or the Association or "in the ownership of a
substantial portion of the assets" of the Company or the
Association within the meaning of Section 28OG of the Code.
If this Section 12 applies, then, if for any taxable year, the
Executive shall be liable for the payment of an excise tax under
Section 4999 of the Code with respect to any payment in the nature
of compensation made by the Company, the Association or any direct
or indirect subsidiary or affiliate of the Company or the
Association to (or for the benefit of) the Executive, the Company
shall pay to the Executive an amount intended to indemnify the
Executive against the financial effects of the excise tax imposed on
excess parachute payments under Section 28OG of the Code (the "Tax
Indemnity Payment"). The Tax Indemnity Payment shall be determined
under the following formula:
E x P
TIP = ------------------------------
1 - (( FI x ( 1 - SLI )) + SLI + E + M )
where:
"TIP" is the Tax Indemnity Payment, before the deduction of
applicable federal, state and local withholding taxes;
"E" is the percentage rate at which an excise tax is assessed under
Section 4999 of the Code;
"P" is the amount with respect to which such excise tax is assessed,
determined without regard to any amount payable pursuant to this
Section 12;
"FI" is the highest marginal rate of income tax applicable to the
Executive under the Code for the taxable year in question;
"SLI" is the sum of the highest marginal rates of income tax
applicable to the Executive under all applicable state and local
laws for the taxable year in question; and
Page 22 of 31
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"M" is the highest marginal rate of Medicare tax applicable to the
Executive under the Code for the taxable year in question.
(b) The computation of the Tax Indemnity Payment shall be made at the
expense of the Company by the Computation Advisor and shall be based
on the following assumptions:
(i) that a change in ownership, a change in effective ownership or
control or a change in the ownership of a substantial portion
of the assets of the Association or the Company has occurred
within the meaning of Section 28OG of the Code (a "28OG Change
of Control");
(ii) that all direct or indirect payments made to or benefits
conferred upon the Executive on account of the Executive's
termination of employment are "parachute payments" within the
meaning of Section 28OG of the Code; and
(iii) that no portion of such payments is reasonable compensation
for services rendered prior to the Executive's termination of
employment.
(c) With respect to any payment that is presumed to be a parachute
payment for purposes of Section 28OG of the Code, the Tax Indemnity
Payment shall be made to the Executive on the earlier of the date
the Company, the Association or any direct or indirect subsidiary or
affiliate of the Company or the Association is required to withhold
such tax or the date the tax is required to be paid by the
Executive, unless, prior to such date, the Company delivers to the
Executive the written opinion (the "Opinion Letter"), in form and
substance reasonably satisfactory to the Executive, of the
Computation Advisor or, if the Computation Advisor is unable to
provide such opinion, of an attorney or firm of independent
certified public accountants selected by the Company and reasonably
satisfactory to the Executive, to the effect that the Executive has
a reasonable basis on which to conclude that:
(i) no 28OG Change in Control has occurred, or
(ii) all or part of the payment or benefit in question is not a
parachute payment for purposes of Section 28OG of the Code, or
(iii) all or a part of such payment or benefit constitutes
reasonable compensation for services rendered prior to the
28OG Change of Control, or
(iv) for some other reason which shall be set forth in detail in
such letter, no excise tax is due under Section 4999 of the
Code with respect to such payment or benefit.
Page 23 of 31
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If the Company delivers an Opinion Letter, the Computation Advisor
shall re- compute, and the Company shall make, the Tax Indemnity
Payment, if any, in reliance on the information contained in the
Opinion Letter.
(d) In the event that the Executive's liability for the excise tax under
Section 4999 of the Code for a taxable year is subsequently
determined to be different than the amount with respect to which the
Tax Indemnity Payment is made, the Executive or the Company, as the
case may be, shall pay to the other party at the time that the
amount of such excise tax is finally determined, an appropriate
amount, plus interest, such that the payment made pursuant to
Sections 12(a) and 12(c), when increased by the amount of the
payment made to the Executive pursuant to this Section 12(d), or
when reduced by the amount of the payment made to the Company
pursuant to this Section 12(d), equals the amount that should have
properly been paid to the Executive under Sections 12(a) and 12(c).
The interest paid to the Company under this Section 12(d) shall be
determined at the rate provided under Section 1274(b)(2)(B) of the
Code. The payment made to the Executive shall include such amount of
interest as is necessary to satisfy any interest assessment made by
the Internal Revenue Service and an additional amount equal to any
monetary penalties assessed by the Internal Revenue Service on
account of an underpayment of the excise tax. To confirm that the
proper amount, if any, was paid to the Executive under this Section
12, the Executive shall furnish to the Company a copy of each tax
return which reflects a liability for an excise tax, at least 20
days before the date on which such return is required to be filed
with the Internal Revenue Service. Nothing in this Agreement shall
give the Company any right to control or otherwise participate in
any action, suit or proceeding to which the Executive is a party as
a result of positions taken on the Executive's federal income tax
return with respect to the Executive's liability for excise taxes
under Section 4999 of the Code.
(e) The provisions of this Section 12 are designed to reflect the
provisions of applicable federal, state and local tax laws in effect
on the date of this Agreement. If, after the date hereof, there
shall be any change in any such laws, this Section 12 shall be
modified in such manner as the Executive and the Company may
mutually agree upon if and to the extent necessary to assure that
the Executive is fully indemnified against the economic effects of
the tax imposed under Section 4999 of the Code or any similar
federal, state or local tax.
Section 13. Covenant Not To Compete.
-----------------------
The Executive hereby covenants and agrees that, in the event of his or her
termination of employment with the Company prior to the expiration of the
Employment Period, for a period of one (1) year following the date of his or her
termination of employment with the Company (or, if less, for the Remaining
Unexpired Employment Period), the Executive shall not, without the written
consent of the Company, become an officer, employee, consultant, director or
trustee of any savings
Page 24 of 31
25
bank, savings and loan association, savings and loan holding company, bank or
bank holding company, or any direct or indirect subsidiary or affiliate of any
such entity, that entails working in any city, town or county in which the
Association or the Company has an office or has filed an application for
regulatory approval to establish an office, determined as of the effective date
of the Executive's termination of employment; provided, however, that this
Section 13 shall not apply if the Executive's employment is terminated for the
reasons set forth in Section 9(a); and provided, further, that if the
Executive's employment shall be terminated on account of Disability as provided
in Section 10(c) of this Agreement, this Section 13 shall not prevent the
Executive from accepting any position or performing any services if:
(a) he or she first offers, by written notice, to accept a similar
position with or perform similar services for the Company on
substantially the same terms and conditions and
(b) the Company declines to accept such offer within ten (10) days after
such notice is given.
Section 14. Confidentiality.
---------------
Unless the Executive obtains the prior written consent of the Company, the
Executive shall keep confidential and shall refrain from using for the benefit
of the Executive or any person or entity other than the Company, any entity
which is a subsidiary of the Company or any entity which the Company is a
subsidiary of, any material document or information obtained from the Company,
or from its affiliates or subsidiaries, in the course of the Executive's
employment with any of them concerning their properties, operations or business
(unless such document or information is readily ascertainable from public or
published information or trade sources or has otherwise been made available to
the public through no fault of his or her own) until the same ceases to be
material (or becomes so ascertainable or available); provided, however, that
nothing in this Section 14 shall prevent the Executive, with or without the
Company's consent, from participating in or disclosing documents or information
in connection with any judicial or administrative investigation, inquiry or
proceeding to the extent that such participation or disclosure is required under
applicable law.
Section 15. Solicitation.
------------
The Executive hereby covenants and agrees that, for a period of one (1)
year following the Executive's termination of employment with the Company, he or
she shall not, without the written consent of the Company, either directly or
indirectly:
(a) solicit, offer employment to or take any other action intended, or
that a reasonable person acting in like circumstances would expect,
to have the effect of causing any officer or employee of the
Company, the Association or any affiliate or subsidiary of ether of
them, to terminate his or her employment and accept employment or
become affiliated with, or provide services for compensation in any
capacity whatsoever to, any savings bank, savings and loan
association, bank, bank holding
Page 25 of 31
26
company, savings and loan holding company, or other institution
engaged in the business of accepting deposits and making loans,
doing business in any city, town or county in which the Association
or the Company has an office or has filed an application for
regulatory approval to establish an office;
(b) provide any information, advice or recommendation with respect to
any such officer or employee to any savings bank, savings and loan
association, bank, bank holding company, savings and loan holding
company, or other institution engaged in the business of accepting
deposits and making loans, doing business in any city, town or
county in which the Association or the Company has an office or has
filed an application for regulatory approval to establish an office
that is intended, or that a reasonable person acting in like
circumstances would expect, to have the effect of causing any
officer or employee of the Company, the Association, or any
affiliate or subsidiary of either of them, to terminate his or her
employment and accept employment, become affiliated with or provide
services for compensation in any capacity whatsoever to any such
savings bank, savings and loan association, bank, bank holding
company, savings and loan holding company or other institution
engaged in the business of accepting deposits and making loans; or
(c) solicit, provide any information, advice or recommendation or take
any other action intended, or that a reasonable person acting in
like circumstances would expect, to have the effect of causing any
customer of the Company, the Association, or any affiliate or
subsidiary of either of them to terminate an existing business or
commercial relationship with the Company, the Association, or any
affiliate or subsidiary of either of them.
Section 16. No Effect on Employee Benefit Plans or Programs.
-----------------------------------------------
The termination of the Executive's employment during the term of this
Agreement or thereafter, whether by the Company or by the Executive, shall have
no effect on the rights and obligations of the parties hereto under the
Company's qualified or non-qualified retirement, pension, savings, thrift,
profit-sharing or stock bonus plans, group life, health (including
hospitalization, medical and major medical), dental, accident and long term
disability insurance plans or such other employee benefit plans or programs, or
compensation plans or programs, as may be maintained by, or cover employees of,
the Company from time to time.
Section 17. Successors and Assigns.
----------------------
This Agreement will inure to the benefit of and be binding upon the
Executive, his or her legal representatives and testate or intestate
distributees, and the Company and its successors and assigns, including any
successor by merger or consolidation or a statutory receiver or any other person
or firm or corporation to which all or substantially all of the assets and
business of the Company may be sold or otherwise transferred. Failure of the
Company to obtain from any successor
Page 26 of 31
27
its express written assumption of the Company's obligations under this Agreement
at least sixty (60) days in advance of the scheduled effective date of any such
succession shall be deemed a material breach of this Agreement.
Section 18. Notices.
-------
Any communication required or permitted to be given under this Agreement,
including any notice, direction, designation, consent, instruction, objection or
waiver, shall be in writing and shall be deemed to have been given at such time
as it is delivered personally, or five (5) days after mailing if mailed, postage
prepaid, by registered or certified mail, return receipt requested, addressed to
such party at the address listed below or at such other address as one such
party may by written notice specify to the other party:
If to the Executive:
Xxxxxx X. Xxxxxx
00 Xxxxxxxx Xxxxxx
Xxxxxx Xxxx, Xxx Xxxx 00000
If to the Company:
Astoria Financial Corporation
Xxx Xxxxxxx Xxxxxxx Xxxxx
Xxxx Xxxxxxx, Xxx Xxxx 00000-0000
Attention: General Counsel
with a copy to:
Xxxxxxx Xxxxxxxx & Wood
Xxx Xxxxx Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: W. Xxxxxx Xxxxxx, Esq.
Section 19. Indemnification for Attorneys' Fees.
-----------------------------------
The Company shall indemnify, hold harmless and defend the Executive
against reasonable costs, including legal fees, incurred by him or her in
connection with or arising out of any action, suit or proceeding in which he or
she may be involved, as a result of his or her efforts, in good faith, to defend
or enforce the terms of this Agreement; provided, however, that in the case of
any action, suit or proceeding instituted prior to a Change of Control, the
Executive shall have substantially prevailed on the merits pursuant to a
judgment, decree or order of a court of competent jurisdiction
Page 27 of 31
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or of an arbitrator in an arbitration proceeding, or in a settlement. For
purposes of this Agreement, any settlement agreement which provides for payment
of any amounts in settlement of the Company's obligations hereunder shall be
conclusive evidence of the Executive's entitlement to indemnification hereunder,
and any such indemnification payments shall be in addition to amounts payable
pursuant to such settlement agreement, unless such settlement agreement
expressly provides otherwise.
Section 20. Severability.
------------
A determination that any provision of this Agreement is invalid or
unenforceable shall not affect the validity or enforceability of any other
provision hereof.
Section 21. Waiver.
------
Failure to insist upon strict compliance with any of the terms, covenants
or conditions hereof shall not be deemed a waiver of such term, covenant, or
condition. A waiver of any provision of this Agreement must be made in writing,
designated as a waiver, and signed by the party against whom its enforcement is
sought. Any waiver or relinquishment of any right or power hereunder at any one
or more times shall not be deemed a waiver or relinquishment of such right or
power at any other time or times.
Section 22. Counterparts.
------------
This Agreement may be executed in two (2) or more counterparts, each of
which shall be deemed an original, and all of which shall constitute one and the
same Agreement.
Section 23. Governing Law.
-------------
This Agreement shall be governed by and construed and enforced in
accordance with the federal laws of the United States and, to the extent that
federal law is inapplicable, in accordance with the laws of the State of New
York applicable to contracts entered into and to be performed entirely within
the State of New York.
Section 24. Headings and Construction.
-------------------------
The headings of sections in this Agreement are for convenience of
reference only and are not intended to qualify the meaning of any section. Any
reference to a section number shall refer to a section of this Agreement, unless
otherwise stated.
Section 25. Entire Agreement: Modifications.
--------------------------------
This instrument contains the entire agreement of the parties relating to
the subject matter hereof, and supersedes in its entirety any and all prior
agreements, understandings or representations
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relating to the subject matter hereof. No modifications of this Agreement shall
be valid unless made in writing and signed by the parties hereto.
Section 26. Guarantee.
---------
The Company hereby agrees to guarantee the payment by the Association of
any benefits and compensation to which the Executive is or may be entitled to
under the terms and conditions of the Amended and Restated Employment Agreement
dated as of the lst day of January, 2000 between the Association and the
Executive.
Section 27. Non-duplication.
---------------
In the event that the Executive shall perform services for the Association
or any other affiliate or subsidiary of the Company, any compensation or
benefits provided to the Executive by such other employer shall be applied to
offset the obligations of the Company hereunder, it being intended that this
Agreement set forth the aggregate compensation and benefits payable to the
Executive for all services to the Company and all of its affiliates and
subsidiaries.
Section 28. Survival.
--------
The provisions of any sections of this Agreement which by its terms
contemplates performance after the expiration or termination of this Agreement
(including, but not limited to, Sections 6, 9, 10, 11, 12, 13, 14, 15, 16, 17,
18, 19, 21, 26, 27, 29, 30 and 31) shall survive the expiration of the
Employment Period or termination of this Agreement.
Section 29. Equitable Remedies.
------------------
The Company and the Executive hereby stipulate that money damages are an
inadequate remedy for violations of Sections 6(a), 13, 14 or 15 of this
Agreement and agree that equitable remedies, including, without limitations, the
remedies of specific performance and injunctive relief, shall be available with
respect to the enforcement of such provisions.
Section 30. Required Regulatory Provisions.
------------------------------
Notwithstanding anything herein contained to the contrary, any payments to
the Executive by the Company, 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. Section 1828(k), and any regulations
promulgated thereunder.
Section 31. No Offset or Recoupment; No Attachment.
--------------------------------------
The Company's obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations under this Agreement shall
not be affected by any set-off,
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counterclaim, recoupment, defense or other claim, right or action which the
Company or any of its affiliates or subsidiaries may have against the Executive.
In no event shall the Executive be obligated to seek other employment or take
any other action by way of mitigation of the amounts payable to the Executive
under any of the provisions of this Agreement and such amounts shall not be
reduced whether or not the Executive obtains other employment. 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.
Section 32. LISB Transaction.
----------------
The Executive hereby waives any claim the Executive may have pursuant to
his or her Employment Agreements each dated March 29, 1997 with the Company and
the Association, respectively, that the acquisition by and the merger of Long
Island Bancorp, Inc. and The Long Island Savings Bank, FSB with and into the
Company and the Association, respectively, constituted a "change of control" of
the Company or the Association as defined in such Employment Contracts.
IN WITNESS WHEREOF, the Company has caused this Agreement to be executed
and the Executive has hereunto set his or her hand, all as of the day and year
first above written.
ATTEST:
/S/ Xxxxxxx X. Xxxxxxx
----------------------
Xxxxxxx X. Xxxxxxx
[Seal]
ASTORIA FINANCIAL CORPORATION
By: /S/ Xxxxxx X. Xxxxxxx, Xx.
--------------------------
Name: Xxxxxx X. Xxxxxxx, Xx.
Title:Chairman, President and Chief
Executive Officer
/S/ Xxxxxx X. Xxxxxx
------------------------------
XXXXXX X. XXXXXX
Page 30 of 31
31
STATE OF NEW YORK )
) ss.:
COUNTY OF NASSAU )
On this 20 day of March, 2000, before me, the undersigned, personally
appeared Xxxxxx X. Xxxxxx, personally known to me or proved to me on the basis
of satisfactory evidence to be the individual(s) whose name(s) is (are)
subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their capacity(ies), and that by his/her/their
signature(s) on the instrument, the individual(s), or the person upon behalf of
which the individual(s) acted, executed the instrument.
/S/ Xxxx Xxxxx
--------------
Notary Public
Xxxx Xxxxx
Notary Public, State of New York
No. 4980431
Qualified in Suffolk County
Commission Expires April 22, 0000
XXXXX XX XXX XXXX )
) ss.:
COUNTY OF NASSAU )
On this 20 day of March, 2000, before me, the undersigned, personally
appeared Xxxxxx X. Xxxxxxx, Xx., personally known to me or proved to me on the
basis of satisfactory evidence to be the individual(s) whose name(s) is (are)
subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their capacity(ies), and that by his/her/their
signature(s) on the instrument, the individual(s), or the person upon behalf of
which the individual(s) acted, executed the instrument.
/S/ Xxxx Xxxxx
--------------
Notary Public
Xxxx Xxxxx
Notary Public, State of New York
No. 4980431
Qualified in Suffolk County
Commission Expires April 22, 2001
Page 31 of 31
