EMPLOYMENT AGREEMENT
THIS AGREEMENT is between American Bank ("American Bank" or "the
Bank"), a Florida corporation, and Xxxxx X. Xxxx ("the Employee"), an
individual.
WHEREAS, the Employee is currently serving as a Senior Vice President
of the Bank, a wholly owned subsidiary of American Bancshares, Inc. ("ABI"); and
WHEREAS, American Bank believes that it is imperative to revise the
terms and provisions of the Employee's employment contract with the Bank;
NOW THEREFORE, in consideration of the continued employment of the
Employee by American Bank, and of the mutual promises made herein, and for other
good and valuable consideration, the receipt and adequacy of which is hereby
acknowledged, the parties agree as follows:
1. Employment. This is an employment contract. Through execution of
this contract, American Bank offers continued employment, and the Employee
accepts that offer. The revised terms and conditions of the Employee's
employment relationship will be set forth in this Agreement.
2. Duties. The Employee shall be employed as Senior Vice President &
Chief Investment Officer. His duties shall include, but not be limited to, the
responsibility of managing the Bank's secondary market operations, involving
both the purchase and sale of loans. He shall be responsible for managing the
Bank's investment portfolio to ensure consistency with the Bank's investment
objectives. He shall ensure a maximum rate of return from investments consistent
with an acceptable level of risk. He shall provide research and analytical
services to facilitate the Bank's funding activities.
3. Term of Agreement. The term of this Agreement is three years. Unless
either the Bank or the Employee gives written notice of non-renewal at least
sixty (60) days prior to the first Anniversary Date of this Agreement, the
contract term shall automatically be renewed, as of that Anniversary Date, for
an additional one year period. Automatic renewal shall take place at each
subsequent Anniversary Date where there is no written notice of non-renewal
provided within sixty (60) days of the Anniversary Date. In other words, it is
the intent of the parties to create a "rolling" term for this Agreement.
However, this Agreement can be terminated prior to the end of the contract term
as provided by paragraph 6.
4. Compensation.
a. Salary. The Employee's salary shall be EIGHTY FIVE THOUSAND
DOLLARS ($85,000.00) per year, payable to the Employee in accordance with the
Bank's normal payroll periods. The total amount of the Employee's salary may not
be decreased by the Bank. However, it may be increased, in the Bank's complete
discretion.
b. Commissions. Each month, the Employee shall be paid periodic commissions. In
order to receive the commission, the Employee must be employed on the last day
of the commission period, and must have remained in the employ of the Bank
throughout the commission period. His monthly commission shall include seven (7)
basis points on all residential mortgage loans closed and funded on a monthly
basis.
c. Total compensation will not exceed and remains capped at $140,000 on a fiscal
year basis (July 1 through June 30). Total compensation is defined as salary
plus any earned commission and bonuses. The total amount of the Employee's
salary may not be decreased by the Bank. However, it may be increased, at the
Bank's complete discretion.
d. Memberships. The Bank shall pay the cost of such
Employee memberships as may be approved by the Bank.
e. 401(k) Plan. The Employee is currently eligible for a
401(k) plan. He shall receive such contributions to his account in that plan, or
into his account in any other 401(k) plan subsequently created by American Bank
as may be approved pursuant to the terms of such plans.
f. Options. The Employee is eligible to participate in the
American Bancshares Incentive Stock Option Plan (ISOP) to the extent recommended
by the CEO and approved by the Board of Directors.
g. Group Insurance. The Employee shall be entitled to group
insurance benefits in accordance with the terms of group insurance plans
maintained by the Bank.
h. Expenses. The Bank agrees to pay all ordinary and necessary
business expenses incurred by the Employee, including but not limited to
reasonable business travel expenses, and expenses associated with attendance at
seminars, speeches, meetings, and associations, provided that the Employee must
comply with any Bank policies on expense reimbursement.
i. Vacation. The Employee shall be entitled to vacation
benefits as provided by American Bank's Employee Handbook.
5. Time Devoted to Employment. The Employee shall devote all of his
business time, attention and energies to the business affairs of the Bank, and
shall not, while employed by the Bank, be engaged in any other business
activity, whether or not such business activity is pursued for gain, profit or
other pecuniary advantage; however, this shall not be construed as preventing
the Employee from investing personal assets in such form or manner as will not
require any services on the part of the Employee.
6. Termination of Agreement.
a. Termination by the Employee. The Employee may
terminate this Agreement, with or without cause, by giving the Bank thirty
(30) days written notice of resignation. The Employee may be released at any
time by the Bank, without any severance pay obligation, after he submits his
resignation.
b. Termination by the Bank for Cause. The Bank may terminate
the Employee's employment by American Bank, and this Agreement, for "just
cause," by giving the Employee thirty (30) days written notice of discharge for
"just cause," or paying the Employee his salary for the thirty (30) day notice
period in lieu of giving notice. The Employee shall not be entitled to any
severance pay if he is discharged for "just cause." The term "just cause," as
used in this Agreement, includes, but is not limited to, the following:
1. The Employee's refusal or willful failure to
perform duties appropriately assigned by the
Bank's President or Board of Directors,
unless the Employee is unable to perform
such duties due to a disability amounting to
a "serious health condition" as defined in
the federal Family and Medical Leave Act;
2. The Employee's inability to perform duties
appropriately assigned by the Bank's
President or Board of Directors due to
physical or mental disability, but only
after all family leave available to the
Employee under the federal Family and
Medical Leave Act, and all short term and
long term disability leave provided by any
applicable Bank subsidiary Employee
Handbook, has been exhausted;
3. An act or omission by the Employee which, if
it occurred, would be either a felony under
Florida law, or a misdemeanor involving
moral turpitude under Florida law,
regardless of whether or not the Employee is
prosecuted for this crime, and if
prosecuted, regardless of the eventual
disposition of the case;
4. A serious act of misconduct in connection
with work by the Employee, dishonesty in
connection with ABI or subsidiary business,
misrepresentations of Directors, breach of
the Employee's duty of loyalty to ABI or
subsidiaries, or any related corporations,
through appropriation or attempted
appropriation of corporate opportunities for
the Employee's own advantage, or through
other conflicts of interest where the
Employee acts for the Employee's own
personal benefit, instead of for the
benefit of American Bank, ABI or other ABI
subsidiaries (it is the express intention of
the parties that concerns relating to the
competence of the Employee, or the
Employee's job performance, are not
"misconduct" as defined in this
sub-paragraph); and
5. A prior breach of this Agreement by the Employee.
c. Termination by the Bank Without Cause. The Bank may
terminate this Agreement without cause, and may discharge the Employee, by
giving thirty (30) days written notice of termination to the Employee, or by
giving the Employee one month's pay in lieu of written notice. If the Employee
is terminated by the Bank without cause, he shall be paid three (3) month's
severance pay. This severance pay shall be paid at regular payroll intervals,
although the Bank shall have the option of offering the Employee a lump sum
payment in lieu of installment payments. A month of "severance pay," as used in
this paragraph, and elsewhere in this Agreement, includes a monthly pro rata
portion of the Employee's annual salary, and an average commission payment
calculated by determining the Employee's monthly commission average for the
twelve (12) prior months, excluding the month in which notice is actually given;
"severance pay" does not include the value of any fringe benefits of employment
whatsoever (e.g., group insurance, the value of options, vacations or
memberships, or any contributions made in the past by the Bank to the Employee's
account in 401(k) or other defined contribution plans). Taxes shall be withheld
from severance pay as required by law.
d. Termination of this Agreement due to a Change in Control.
Notwithstanding any other provision of this Agreement, upon the occurrence of a
Change in Control, the Employee shall have the right, in the Employee's sole
discretion, to terminate the Employee's employment with the Bank, as of the date
of the Change of Control, and for a period of one year following the date of the
Change of Control, and receive certain severance pay. If the Employee exercises
this right to terminate employment with the Bank within thirty (30) days of the
date of the Change of Control, then the Employee shall be paid, either in a lump
sum or at regular payroll intervals at the option of the Bank, twelve (12)
month's of severance pay. If the Employee exercises this right to terminate
employment with the Bank after thirty (30) days of the date of the Change of
Control, but within one year of the date of the Change of Control, then the
Employee shall be paid, either in a lump sum or at regular payroll intervals at
the option of the Bank, twelve (12) month's of severance pay, less an amount
equivalent to the salary earned from the date of the Change of Control to the
date of termination of employment. If the Employee resigns more than one year
after a Change of Control, he shall not be entitled to any severance pay
pursuant to this paragraph. For the purposes of this Agreement, a Change of
Control shall be deemed to have occurred on the earliest of the following dates:
1. The date on which any entity or person shall
have become the beneficial owner of, or
shall have obtained voting control over, 25%
or more of the outstanding common shares of
ABI, or of the outstanding voting control of
ABI;
2. The date the shareholders of ABI approve a
definitive agreement (a) to merge continuing
or surviving corporation or pursuant to
which any common shares of corporation,
other than a merger of ABI in which holders
of ABI common shares immediately prior to
the merger have the same proportionate
ownership of common shares of the surviving
corporation immediately after the merger as
immediately before, or (b) to sell or
otherwise dispose of substantially all the
assets of ABI; or
3. The date there shall have been a change in a
majority of the Board of Directors of ABI
within a twelve month period unless the
nomination for election by ABI's
shareholders of each new director was
approved by the vote of two-thirds of the
directors then still in office who were in
office at the beginning of the twelve month
period.
e. Termination of this Agreement due to Death of the Employee.
This Agreement shall be terminated by the death of the Employee as of the date
of death. No severance pay shall be due in the event of termination of this
Agreement by death.
7. Protective Covenant relating to Protected Information.
a. Definition of Protected Information. The term "Protected
Information" shall include any and all information and materials, in whatever
form, whether or not reduced to writing and whether or not registerable,
recordable or otherwise protected under applicable patent, copyright, trade
secret or other form of intellectual property law, that the Employee receives,
receives access to, conceives or develops, in whole or in part, directly or
indirectly, in connection with rendition of services to ABI or any of its
subsidiaries, or through the use of any of ABI's facilities or resources, or
through the use of the facilities or resources of any of ABI's subsidiaries, and
regardless of how such information is communicated, disclosed, created or
discovered, including both trade secrets and "know-how." Protected information
shall include, but shall not be limited to, the following:
1. Marketing plans, techniques and
arrangements, customer lists, cost
comparables, prospect lists (including
prospects and non-prospects, and ratings of
potential), pricing data, and other
materials or information relating to ABI's
business, or the businesses of ABI's
subsidiaries, and the manner in which ABI
and its subsidiaries do business;
2. Application, operating system, database,
communication and other computer software,
whether now or hereafter existing, developed
for use on any operating system, all
modifications, enhancements and versions and
all options available with respect thereto,
all future products developed or derived
therefrom, and all source and object codes,
algorithms, and any related documentation or
manuals;
3. Financial information of ABI and its
subsidiaries, including information relating
to profits and losses;
4. Any information or materials received by ABI
or its subsidiaries from third parties in
confidence or subject to non-disclosure or
similar covenants; and
5. Any notes, tapes, reference items, sketches,
drawings, memoranda, compilations, studies,
summaries and other material relating to
Protected Information, however documented.
Notwithstanding the foregoing, Protected Information shall not include the
following:
1. Public information, but only information
that becomes publicly available or made
available to the Employee by unaffiliated
third parties without breach of (a) this
Agreement, (b) any other agreement or
instrument to which ABI or its subsidiaries
is a party or a beneficiary, or (c) any duty
owed to ABI or its subsidiaries by the
Employee or any third party, whether by
contractual, legal, fiduciary or other
obligation; and
2. Information previously known to the
Employee, but only information that (a) was
known to the Employee prior to the
Employee's employment by American Bank, (b)
the prior knowledge of which is evidenced by
written and dated documentary proof, (c) was
not at the time of acquiring such
information, subject to any duty owed by ABI
or its subsidiaries to any third party
disclosing such information to the Employee,
whether by contractual, legal, fiduciary or
other obligation, and (d) Employee has
disclosed such prior knowledge of which to
American Bank either prior to the Employee's
employment, or, if the Employee becomes
aware of (through disclosure to ABI or its
subsidiaries) any aspect of the Protected
Information of which the Employee had
personal knowledge or possession after
employment, or the effective date of this
Agreement, promptly upon becoming aware of
such aspect.
b. Covenants relating to Protected Information. The Employee
covenants and agrees to keep all Protected Information confidential for the
benefit of ABI and its subsidiaries, and as part of that obligation, shall not
at any time, during or following employment, directly or indirectly, disclose,
divulge, reveal, report, publish, transfer or use any Protected Information. The
Employee further covenants and agrees not to record, copy, adapt or distribute
any Protected Information without the consent of ABI or its subsidiaries. These
covenants and promises shall not apply to any conduct for which ABI or its
subsidiaries has given prior written consent, or if the conduct is a disclosure
directly pursuant to a valid and existing order of court or other governmental
body or agency within the United States, provided, however, that (1) the
Employee shall first have given prompt notice to ABI or its subsidiaries of any
such possible or prospective order; (2) ABI or its subsidiaries shall have been
afforded a reasonable opportunity to prevent or limit any such disclosure; and
(3) the Employee shall use best efforts to obtain reasonable assurances that
confidential treatment will be accorded to any Protected Information so
disclosed. Both parties further agree that the employment relationship between
the Employee and American Bank is a confidential relationship, and that as a
consequence of the existence of this relationship, the Employee has a duty
neither to use nor disclose Protected Information independent of any of the
protective covenants set forth in this sub-paragraph.
8. Indemnity and Litigation involving the Employee.
a. Indemnity. The Bank agrees to indemnify and hold the
Employee harmless from any actions, lawsuits, liabilities, claims, or demands
(including the costs, expenses, and attorney's fees associated with defense of
same) that are brought against the Employee personally for injuries to persons
or damage to property resulting from the Employee's acts or omissions in the
course and scope of employment with the Bank. No right or claim for indemnity
shall accrue under this Agreement until after the underlying claim on which
indemnity is based is settled or finally adjudicated; thus, no claim for
indemnity may be made in the same lawsuit in which the underlying claim is
litigated. Notwithstanding the foregoing, the Bank may, in its complete
discretion, pay the Employee's attorney's fees and litigation expenses incurred
in defending a claim brought personally against the Employee (1) where the
Employee is accused of wrongdoing in the course and scope of employment with the
Bank, and (2) where the Employee agrees to reimburse the Bank at the conclusion
of such suit if there is a final determination by a judge or jury (a) that the
Employee committed the alleged wrongful acts, and (b) that such acts were
malicious, willful, or in reckless disregard of the rights of third parties.
Where fees are paid pursuant to this provision, separate counsel will be
retained for the Employee in the event a conflict of interest requires same.
b. Litigation where the Employee is a Witness. Even if
employment with the Bank or its subsidiaries has terminated at the time
litigation is brought where the Employee may be a witness, the Employee agrees,
at the request of the Bank, to give truthful testimony in court at any trial, or
at deposition, where the Employee is accused of wrongdoing, or where the
Employee otherwise has relevant knowledge relating to the case, regardless of
whether travel to trial is required, although any deposition of the Employee
will be scheduled at a location convenient for the Employee, in accordance with
federal and/or state rules of civil procedure governing litigation. The Employee
further agrees to provide information to and otherwise cooperate with counsel
for the Bank in defending any action, lawsuit, liability, claim or demand where
the Employee has knowledge of the claims, or is accused of wrongdoing. The Bank
agrees to pay the Employee the statutory witness fee and travel expenses
required by federal or state law in the event testimony at deposition or at
trial is required; otherwise, if employment has terminated, the Employee shall
not be compensated for lost time or unpaid expenses.
9. Waiver of Jury Trial; Attorney's Fees. The parties both waive any
right to trial by jury in any action brought under this Agreement, specifically
including actions to enforce or interpret the protective covenant set forth in
paragraph 7 of the Agreement. In the event of litigation between the Employee
and the Bank, of any kind whatsoever, regardless of whether it involves this
Agreement, or otherwise, the prevailing party shall be entitled to the award of
a reasonable attorney's fee, an award of costs of action, and recovery of any
litigation expenses reasonably incurred by counsel.
10. Notices. In the case of any notice required or permitted to be
given to the Employee under this Agreement, the date of notice shall be the date
it is given or delivered in person, or mailed by U.S. Certified Mail, Return
Receipt Requested, to the last known address of the Employee. In the case of any
notice required or permitted to be given to the Bank under this Agreement, the
date of notice shall be the date it is given or delivered in person to the Bank
President's business office, or mailed by U.S. Certified Mail, Return Receipt
Requested, to the President of the Bank.
11. Binding Effect. The rights and obligations of the Bank under this
Agreement shall inure to the benefit of and shall be binding upon the successors
and assigns of the Bank. This paragraph expressly authorizes enforcement of the
covenants in paragraph 7 by the successors or assigns of the Bank. The rights of
the Employee provided by this Agreement may not be assigned to any other person.
12. Governing Law. This Agreement shall be construed in accordance with
the law of the State of Florida, to the extent that state law, as opposed to
federal law, may be applicable in its construction.
13. Entire Agreement; Changes to Agreement; Originals. This Agreement
is the only Agreement between the parties, and supersedes any prior oral or
written contracts or agreements between the Bank and the Employee. This
Agreement may not be amended except in writing signed by the party to the
Agreement against whom the change is being asserted. This Agreement may be
executed in two or more copies, each of which shall be deemed an original, and
it shall not be necessary in making proof of this Agreement or its terms to
produce or account for more than one of such copies.
IN WITNESS WHEREOF, the parties have executed this Agreement, under
seal, on the dates set forth beneath their signatures.
By: ________________________ (Seal) By: ____________________________
Xxxxx X. Xxxx Bank President
Date: _______________ Date: _______________
Witness: __________________________
ADDENDUM
This employment agreement supercedes the employment agreement dated
June 30, 1995 and addendum dated May 14, 1998 between employer and employee.
Employer and employee desire to address the integration of the conclusion of
employee's engagement under the prior employment contract with this employment
agreement. Subject to the limitations contained within this agreement on total
compensation under Paragraph 4, employee shall be entitled to receive, as
commission compensation, a 7 basis points commission on all construction
permanent loans which were originated and closed prior to the execution of this
contract, but not finalized to permanent loan status prior to the execution of
this contract. This 7 basis points compensation supercedes and replaces any
references to any 10 basis point compensation references in employee's prior
contract. At all times, any compensation received for commissions on
construction loans that were originated and closed prior to the execution of
this addendum, but not rolled to permanent status, shall not be subject to the
cap of $140,000.00 set forth in Paragrpah 4 of this employment agreement.
AMERICAN BANK
_____________________________ By: _______________________________
Xxxxx X. Xxxx Xxxxx X. Xxxx, President & CEO
