EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into as
of the 15th day of April, 2002 (the "Effective Date") by and between Xxxxxx
Bank, a California corporation (the "Bank"), and Xxxx X. Xxxxxxx (the
"Employee").
BACKGROUND
WHEREAS, the Employee possesses valuable knowledge and skills that the
Bank expects will contribute to the operation of the Bank;
WHEREAS, the Bank desires to employ Employee and the Employee is
willing to be employed by the Bank, upon the terms and subject to the conditions
hereinafter set forth; and
WHEREAS, the Bank is a wholly-owned subsidiary of North Bay Bancorp, a
California corporation (the "Company").
NOW, THEREFORE, in consideration of the premises, agreements and mutual
covenants set forth herein, the parties hereto hereby agree as follows:
1. Employment
1.1 General. Subject to and effective upon approval of the
California Department of Financial Institutions and the Federal Reserve Bank of
San Francisco ("Regulatory Approval"), the Bank hereby employs the Employee as
President and Chief Executive Officer of the Bank on the terms and subject to
the conditions contained in this Agreement, and the Employee hereby accepts such
employment on the terms and subject to the conditions contained in this
Agreement. Until Regulatory Approval is received by the Bank, Employee shall
perform such duties and responsibilities as may be assigned to him by the
President and Chief Executive Officer of the Bank or Company
1.2 Duties of Employee. During the Term of this Agreement, the
Employee shall diligently perform all duties and responsibilities reasonably
accorded to and expected of the President and Chief Executive Officer of the
Bank and as may be assigned to him by the Board of Directors of the Bank and the
President and Chief Executive Officer of the Company, and shall exercise such
power and authority as may from time to time be delegated to him thereby. The
Employee shall devote his full business time and attention to the business and
affairs of the Bank as necessary to perform his duties and responsibilities
hereunder, render such services to the best of his ability and use his best
efforts to promote the interests of the Bank. The Employee shall faithfully
adhere to, execute and fulfill all policies established by the Bank.
1.3 Place of Performance. Except for required travel for the
Bank's business, the Employee shall perform his duties and responsibilities from
the offices of the Bank, the Company and its subsidiaries.
2. Term.Subject to the provisions of Section 4 of this Agreement,
the initial term of Employee's employment hereunder shall commence on the
Effective Date and shall continue thereafter until the third anniversary of the
Effective Date (the "Initial Term"). Unless the Employee shall have notified the
Bank, or the Bank shall have notified the Employee, not less than sixty (60)
days prior to the expiration of the Initial Term of such party's election not to
continue the Term of this Agreement, upon expiration of the Initial Term, the
Employee's employment hereunder shall continue until the fourth anniversary of
the Effective Date and thereafter shall continue on a year-to-year basis unless
either party notifies the other, not less than sixty (60) days prior to
expiration of the then current Renewal Term, of such party's election not to
continue the Term of this Agreement (each such additional one-year period, a
"Renewal Term"; the Initial Term and any Renewal Term are collectively referred
to hereinafter as the "Term"). The election by the Bank not to continue the Term
of Employee's employment for a Renewal Term shall not be deemed a termination
without Cause pursuant to Section 4.1(b) hereof except as expressly provided in
Section 4.1(d) hereof.
3. Compensation.
3.1 Salary. During the Term of the Employee's employment
hereunder, the Employee shall receive an annual salary of One Hundred Fifteen
Thousand Dollars ($115,000.00) payable at such times and in such manner as the
Bank's normal payroll schedule may from time to time provide. Employee's annual
salary shall be subject to annual adjustment as may be determined by the Board
of Directors of the Bank, or its appropriate committee (the "Board of
Directors"), in its sole and absolute discretion.
3.2 Incentive Compensation. The Employee shall be eligible to
receive as additional compensation each year during his employment hereunder, as
determined by the Board of Directors or an applicable committee thereof, in
accordance with the terms of an Incentive Compensation Plan adopted annually by
the Board of Directors. Such additional compensation (if any) to be paid at a
time or times and in a manner consistent with the Bank's normal practices for
the payment of bonuses, or as the Board of Directors or applicable committee may
otherwise determine.
3.3 Benefits. During his employment hereunder, the Employee
shall be entitled to participate in all plans adopted for the general benefit of
the Bank's management employees, including medical plans and 401(k) plan, to the
extent that the Employee is and remains eligible to participate therein and
subject to the eligibility provisions of such plans in effect from time to time.
In the event Employee's employment hereunder is terminated and the Employee is
entitled to compensation pursuant to Section 4.4(d), the Employee shall be
entitled to continue to participate in the Bank's medical plan until the earlier
of (a) expiration of the applicable payment period set forth in Section
4.4(d)(i) or (b) the date Employee obtains new employment.
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3.4 Vacation. During each year of his employment hereunder,
the Employee shall be entitled to twenty (20) days of paid vacation, prorated
for any period of employment of less than an entire year, provided that vacation
time will continue to accrue only so long as Employee's total accrued vacation
does not exceed twenty five (25) days. Should Employee's accrued vacation time
reach twenty five (25) days, Employee will cease to accrue further vacation
until Employee's accrued vacation time falls below that level. Notwithstanding
anything contained in the foregoing, Employee shall take not less than five (5)
consecutive days of vacation during each year during the Term of this Agreement.
Employee may be absent from his employment for vacation only at such time as the
President and Chief Executive Officer of the Bank shall determine from time to
time.
3.5 Withholding. Notwithstanding any provision in this
Agreement to the contrary, all payments required to be made by the Bank to the
Employee hereunder or otherwise arising out of, related or incidental to or in
connection with the Employee's employment hereunder shall be subject to
withholding of such amounts relating to taxes as the Bank may reasonably
determine it should withhold pursuant to any applicable law or regulation.
3.6 Reimbursement of Expenses. The Bank agrees to reimburse
the Employee for all reasonable business travel and other out-of-pocket expenses
incurred by the Employee in the discharge of his duties hereunder, subject to
the Bank's reimbursement policies in effect from time to time. All reimbursable
expenses shall be appropriately documented in reasonable detail by the Employee
upon submission of any request for reimbursement, and in a format and manner
consistent with the Bank's expense reporting policy, as well as applicable
federal and state record keeping requirements.
3.7 Automobile. The Bank will pay to Employee an automobile
allowance in the amount of five hundred dollars ($500) per month. The Employee
shall be responsible for insurance and maintenance costs associated with such
automobile's operation. The Employee shall not be entitled to reimbursement for
mileage. Employee shall procure and maintain an automobile liability insurance
policy on the automobile, with coverage including Employee for at least a
minimum of $300,000 for bodily injury or death to any one person in any one
accident, and $100,000 for property damage in any one accident. The Employer
shall be named as an additional insured and Employee shall provide Employer
copies of policies evidencing insurance and Employer's inclusion as an
additional insured.
4. Termination
4.1 Termination by Bank.
(a) With Cause. Notwithstanding any provision in this
Agreement to the contrary, the Employee's employment hereunder may be terminated
by the Bank at any time for "Cause," and such termination shall be effective
immediately upon written
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notice to the Employee. For purposes of this Agreement, "Cause" for the
termination of the Employee's employment hereunder shall be deemed to exist if,
in the reasonable judgment of the Board of Directors: (i) the Employee commits
fraud, theft or embezzlement against the Bank, or any subsidiary or affiliate
thereof; (ii) the Employee commits a felony or a crime involving moral
turpitude; (iii) the Employee compromises trade secrets or other proprietary
information of the Bank, or any subsidiary or affiliate thereof; (iv) the
Employee breaches any non-solicitation agreement with the Bank, or any
subsidiary or affiliate thereof; (v) the Employee breaches any of the terms of
this Agreement (other than those referenced in clauses (iii) and (iv) of this
Section 4.1(a)) and fails to cure such breach within ten (10) days after the
receipt of written notice of such breach from the Bank; (vi) the Employee
engages in any grossly negligent act or willful misconduct that causes, or could
be reasonably expected to cause, harm to the business, operations or reputation
of the Bank, or any subsidiary or affiliate thereof; or (vii) the Bank, or any
subsidiary or affiliate thereof, is ordered to terminate this Agreement by any
governmental regulatory agency with supervisory authority over the Bank, or any
subsidiary or affiliate thereof.
(b) Without Cause. The Bank may at any time, in its
sole and absolute discretion, terminate the employment of the Employee hereunder
without Cause, or otherwise without any cause, reason or justification, provided
that the Bank provides to the Employee written notice (the "Termination Notice")
of such termination. In the event of any such termination by the Bank, the
Employee's employment with the Bank shall cease and terminate on the date
specified in the Termination Notice.
(c) For Disability of the Employee. If, as a result
of incapacity due to physical or mental illness or injury, the Employee is
determined to be disabled under any disability policy maintained by the Bank or,
in the event no such policy is maintained by the Bank, the Employee shall have
been unable to perform the essential functions of his position, with or without
reasonable accommodation, on a full-time basis for a period of sixty (60)
consecutive days, or for a total of ninety (90) days in any twelve-month period
(a "Disability"), then thirty (30) days after written notice to the Employee
(which notice may be given before or after the end of the aforementioned
periods, but which shall not be effective earlier than the last day of the
applicable period), the Bank may terminate the Employee's employment hereunder
if the Employee is unable to resume his full-time duties at the conclusion of
such notice period.
4.2 Death of the Employee. This Agreement shall immediately
cease and terminate upon the death of Employee.
4.3 Termination by Employee. The Employee may terminate his
employment under this Agreement upon not less than thirty (30) days prior
written notice to the Bank. Upon learning that the Employee is terminating his
employment under this Agreement, the Bank may, in its sole discretion but
subject to its other obligations under this Agreement, relieve Employee of his
duties under this Employment Agreement, and assign Employee other reasonable
duties and responsibilities to be performed until the termination becomes
effective.
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4.4 Compensation Upon Early Termination.
(a) As a Result of Death, Cause or Resignation. If
the Employee's employment under this Agreement is terminated prior to the
scheduled expiration of the Term by reason of his death, termination by the Bank
for Cause or resignation by the Employee, the Employee shall be entitled to be
paid solely (i) the Employee's salary then in effect through the effective date
of termination, (ii) any accrued vacation due pursuant to Section 3.4, (iii) any
amounts due pursuant to Section 3.6, (iv) those benefits, if any, that have
vested by operation of state or federal law or under any written term of a plan
("Vested Benefits"), and (v) health care coverage continuation rights under the
Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA Rights"), and the
Bank shall have no further liability or other obligation of any kind whatsoever
to the Employee. In the case of termination as a result of the death of
Employee, any amounts due pursuant to this Section 4.4(a) shall be paid to the
Employee's estate, heirs (at law), devisees, legatees or other proper and
legally entitled descendants, or the personal representative, executor,
administrator or other proper legal representative on behalf of such
descendants.
(b) By the Bank other than for Cause. Except as
otherwise expressly provided in Section 4.4(d), if, prior to the scheduled
expiration of the Term, the Bank terminates the Employee's employment without
Cause, the Employee shall be entitled to receive and be paid solely (i) the
Employee's salary then in effect until the expiration of six (6) months
following the effective date of the termination of Employee's employment payable
over such period at the Bank's regular and customary intervals for the payment
of salaries as in effect from time to time ("Severance Pay"), (ii) any accrued
vacation due pursuant to Section 3.4, (iii) any amounts due pursuant to Section
3.6, (iv) any Vested Benefits, and (v) any COBRA Rights, and the Bank shall have
no further liability or other obligation of any kind whatsoever to the Employee.
The payment of Severance Pay shall constitute liquidated damages in lieu of any
and all claims by the Employee against the Bank, shall be in full and complete
satisfaction of any and all rights which the Employee may enjoy hereunder, and
shall constitute consideration for a full and unconditional release of any and
all liability of the Bank or any of its shareholders, benefit plans, affiliate
companies, subsidiaries, and the directors, officers, employees, trustees and
agents of such entities and their successors or assigns, arising out of this
Agreement or out of the employment relationship between the Employee and the
Bank (in the form of Exhibit A, hereafter the "Release"). Payment of the
Severance Pay is expressly conditioned upon receipt by the Bank of the Release
executed by the Employee.
(c) Disability. For the sixty (60) day period
following onset of the Employee's Disability, Employee shall be entitled to
receive and be paid solely (i) the Employee's salary then in effect until the
expiration of said sixty (60) day period payable over such period of time at the
Bank's regular and customary intervals for the payment of salaries as in effect
from time to time, (ii) any accrued vacation due pursuant to Section 3.4, (iii)
any amounts due pursuant to Section 3.6, (iv) any Vested Benefits, and (v) any
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COBRA rights. Following expiration of the sixty (60) day period, the Employee
shall be entitled to receive and be paid solely a salary at a rate commensurate
with the benefit Employee is eligible to receive under any disability policy
maintained by the Bank for a period of one hundred twenty (120) days or until
Employee's benefits under any disability policy maintained by the Bank for the
Employee commences, whichever period is shorter, payable over such period of
time at the Bank's regular and customary intervals for the payment of salaries
as in effect from time to time, and the Bank shall have no further liability or
other obligation of any kind whatsoever to the Employee.
4.5 Expiration of the Term. If not sooner terminated,
Employee's employment hereunder shall terminate on the expiration of the Initial
Term or the Renewal Term, as applicable in accordance with Section 2 hereof. Not
less than 45 days prior to the scheduled expiration of Employee's employment
hereunder, the parties agree to commence discussions with respect to the
possible extension of the Term of this Agreement, possible execution of a new
employment agreement or other possible continuation of the Employee's employment
(it being understood and agreed that no such discussion shall imply any current
or future obligation or commitment to enter into any such agreement or extension
or any other expressed or implied arrangement for the continued employment of
the Employee following the expiration of the Initial Term or any other
termination of the Employee's employment hereunder).
5. Agreement Not to Solicit Customers. The Employee agrees that,
during the Term of his employment with the Bank or any entity owned by or
affiliated with the Bank (whether pursuant to this Agreement or otherwise), and
for two (2) years following the termination thereof whether or not for any
reason whatsoever, he will not, either directly or indirectly, call on, solicit,
or take away as a client, customer or prospective client or customer, or attempt
to call on, solicit, or take away as a client, customer or prospective client or
customer, any person or entity that was a client, customer or prospective client
or customer of the Bank, or any subsidiary or affiliate thereof. For purposes of
this agreement "prospective client or customer" shall include any person or
entity with whom the Bank has had contact for the purpose of soliciting business
within the six (6) months prior to the termination of employment or whom the
Bank intended to contact for the purpose of soliciting business within six (6)
months after termination of employment, of which contact or intended contact the
Employee had knowledge while employed by the Bank.
6. Agreement Not to Solicit or Hire Employees. The Employee agrees
that during the Term of his employment with the Bank or any entity owned by or
affiliated with the Bank (whether pursuant to this Agreement or otherwise), and
for two (2) years following the termination thereof whether or not for any
reason whatsoever, he will not, either directly or indirectly, on his own behalf
or in the service or on behalf of others, solicit, divert or hire, attempt to
solicit, divert or hire or induce or attempt to induce to discontinue employment
with the Bank, or any subsidiary or affiliate thereof, any person employed by
the Bank, or any subsidiary or affiliate thereof, whether or not such employee
is a full time employee or a temporary employee of the Bank, or any subsidiary
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or affiliate thereof and whether or not such employment is for a determined
period or is at will.
7. Ownership and Non-Disclosure and Non-Use of Confidential
Information.
7.1 Confidential Information. As used in this Agreement,
"Confidential Information" shall mean all customer deposit, loan, sales and
marketing information, customer account records, proprietary receipts and/or
processing techniques, information regarding vendors and products, training and
operations memoranda and similar information, personnel records, pricing
information, financial information and trade secrets concerning or relating to
the business, accounts, customers, employees and affairs of the Bank, or any
subsidiary or affiliate thereof, obtained by or furnished, disclosed or
disseminated to the Employee, or obtained, assembled or compiled by the Employee
or under his supervision during the course of his employment by the Bank, and
all physical embodiments of the foregoing, all of which are hereby agreed to be
the property of and confidential to the Bank, but Confidential Information shall
not include any of the foregoing to the extent that the Employee can show that
the same is or becomes publicly known through no action, omission, fault or
breach of this Agreement by the Employee.
7.2. Ownership. The Employee acknowledges and agrees that all
Confidential Information, and all physical embodiments thereof, are confidential
to and shall be and remain the sole and exclusive property of the Bank. The
Employee agrees that upon request by the Bank, and in any event upon termination
of the Employee's employment with the Bank whether or not for any reason
whatsoever, the Employee shall deliver to the Bank all property belonging to the
Bank, or any of its subsidiaries or affiliates, including, without limitation,
all Confidential Information (and all embodiments thereof), then in his custody,
control or possession.
7.3 Non-Disclosure and Non-Use. The Employee agrees that he
will not, either during the Term of his employment hereunder or at any time
thereafter, use, disclose or make available any Confidential Information to any
person or entity, nor shall he use, disclose, make available or cause to be
used, disclosed or made available, or permit or allow, either on his own behalf
or on behalf of others, any use or disclosure of such Confidential Information
other than in the proper performance of the Employee's duties hereunder.
7.4 Notification. The Employee hereby authorizes the Company
to notify my actual or future employers of the terms of this Agreement and my
responsibilities hereunder.
8. Reasonableness of Restrictions. In the event that any provision
relating to time period set forth in Xxxxxxx 0, 0, xx 0 xxxxx xx held by a court
of competent jurisdiction to exceed the maximum time period that the court deems
reasonable and enforceable, the time period which the court finds to be
reasonable and enforceable shall
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be deemed to become, and thereafter shall be, the maximum time period of such
restriction as to such jurisdiction.
9. Enforceability. Any provision of this Agreement which is held
by a court of competent jurisdiction to be invalid or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, but shall be enforced to the maximum extent permitted by law,
and any such holding of invalidity or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction.
10. Injunction. The Employee represents that his experience and
capabilities are such that the provisions of Sections 5, 6, and 7 will not
prevent him from earning his livelihood, and acknowledges that a breach by the
Employee of any of the covenants contained therein will cause irreparable harm
and damage to the Bank, the monetary amount of which may be virtually impossible
to ascertain. As a result, the Employee recognizes and hereby acknowledges that
the Bank shall be entitled to an injunction from any court of competent
jurisdiction enjoining and restraining any violation of any or all of the
covenants contained in Section 5, 6, and/or 7 of this Agreement by the Employee
or any of his affiliates, associates, partners or agents, either directly or
indirectly, without any requirement to post bond or other security and that such
right to injunction shall be cumulative and in addition to whatever other
remedies the Bank may possess.
11. Arbitration. Subject to the provisions of Section 10 hereof
regarding the remedy of injunctive relief, any dispute (whether based on
contract, tort, or statutory duty or prohibition) arising out of or in
connection with this Agreement shall be submitted to binding arbitration, in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association (as modified by this Agreement) by one arbitrator, designated in
accordance with those rules. No one who has ever had any business, financial,
family, or social relationship with any party to this Agreement shall serve as
an arbitrator unless the related party informs the other party of the
relationship and the other party consents in writing to the use of that
arbitrator.
The party demanding arbitration shall submit a written claim to the
other party, setting out the basis of the claim. A prearbitration hearing shall
be held within twenty (20) business days after the arbitrator's selection. The
arbitration shall be held within ninety (90) calendar days after the
prearbitration hearing. The arbitrator shall establish any deadlines to
accomplish this goal. The arbitration shall take place in Napa, California, at a
time and place selected by the arbitrator.
Each party shall be entitled to discovery of essential documents and
witnesses, as determined by the arbitrator. No less than thirty (30) calendar
days before the arbitration, a party may serve a document request calling for
any document that would be discoverable in a state civil proceeding. The served
with this request shall deliver the requested documents and any objections
within ten (10) calendar days. The arbitrator may resolve any dispute over the
exchange of documents. Each party may take no more
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than three (3) depositions, unless additional depositions are allowed by the
arbitrator for good cause. All depositions must be completed as of fifteen (15)
calendar days before the arbitration hearing unless the parties otherwise agree.
The arbitrator may resolve any dispute over the depositions as they would be
resolved in a state civil proceeding. Any motion may be heard by the arbitrator
on three (3) days notice unless the parties otherwise agree. The arbitrator
shall apply California law.
The parties agree that all information supplied by any party shall be
deemed to be confidential information, and the arbitrator and other participants
in the dispute shall protect such information from disclosure to the same extent
as confidential information under Section 7 of this Agreement.
The arbitrator shall have the following powers:
(a) To issue subpenas for the attendance of witnesses and
subpenas duces tecum for the production of books,
records, documents, and other evidence;
(b) To order depositions to be used as evidence;
(c) Consistent with the discovery procedures enumerated
above, to enforce the rights, remedies, procedures,
duties, liabilities, and obligations of discovery as if
the arbitration were a civil action before a California
superior court;
(d) To conduct a hearing on the arbitration issues and
related legal and discovery issues;
(e) To administer oaths to parties and witnesses;
(f) To award all damages and remedies which would be
available in a civil action before a California superior
court.
(g) To award expenses and fees of arbitration as the
arbitrator deems proper; and
(h) To order such other relief as the arbitrator deems
proper.
Within fifteen (15) calendar days after completion of the arbitration,
the arbitrator shall submit a tentative decision in writing specifying the
reasoning for the decision and any calculations necessary to explain the award.
Each party shall have fifteen (15) calendar days in which to submit written
comments to the tentative decision. Within ten (10) calendar days after the
deadline for written comments, the arbitrator shall announce the final award.
Any party may enter the final award as a judgment in any court of competent
jurisdiction.
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The Bank shall pay the arbitrator's expenses and fees, all meeting room
charges, and any other expenses that would not have been incurred if the case
were litigated in the judicial forum having jurisdiction over it. Unless
otherwise ordered by the arbitrator, each party shall pay its own attorney fees,
witness fees and other expenses incurred by the party for his or its own
benefit. The arbitrator may award the prevailing party his or its expenses and
fees of arbitration, including reasonable attorney fees and costs, including
witness fees, in such proportion as the arbitrator decides.
12. No Prior Agreements. The Employee represents and warrants that
he is not a party to or otherwise subject to or bound by the terms of any
contract, agreement or understanding which in any manner would limit or
otherwise affect his ability to perform his obligations hereunder, including
without limitation any contract, agreement or understanding containing terms and
provisions in any manner similar to those contained in Sections 5, 6, and/or 7
hereof. The Employee further represents and warrants that his employment with
the Bank will not require him to disclose or use any confidential information
belonging to prior employers or other persons or entities.
13. Assignment. The Employee shall not delegate his employment
obligations pursuant to this Agreement to any other person. The Bank may assign
its rights and obligations hereunder to any subsidiary, affiliate or successor
of the Bank or the Company, provided that any such assignee fully assumes the
Bank's obligations hereunder. The rights and protections of the Bank hereunder
shall extend to any successors or assigns of the Bank and to the Bank's present
or future parents, subsidiaries, divisions and affiliates.
14. Employer's Authority. The relationship between the parties
hereto is that of employer and employee. The Employee agrees to observe and
comply with the rules and regulations of the Bank, as adopted by the Bank from
time to time with respect to the performance of the duties of the Employee. The
Employee acknowledges that he has no authority to enter into any contracts or
other obligations that are binding upon the Bank unless such contracts or
obligations are authorized by the Board of Directors. The Bank shall have the
power to direct, control and supervise the duties to be performed by the
Employee, the manner of performing said duties, and the time of performing said
duties.
15. Governing Law. This Agreement, the rights and obligations of
the parties hereto, and any claims or disputes relating thereto, shall be
governed by and construed in accordance with the laws of the State of
California, without giving effect to any of the conflicts of laws provisions
thereof that would compel the application of the substantive laws of any other
jurisdiction. The Bank and the Employee each hereby irrevocably submit to the
jurisdiction of the state or federal courts located in the State of California
in connection with any suit, action or other proceeding arising out of or
relating to this Agreement and hereby agree not to assert, by way of motion, as
a defense, or otherwise in any such suit, action or proceeding that the suit,
action or proceeding is brought in an inconvenient forum, that the venue of the
suit, action or proceeding is improper or that this Agreement or the subject
matter hereof may not be enforced by such courts.
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16. Entire Agreement. This Agreement constitutes the entire
agreement between the parties hereto with respect to the subject matter hereof
and supersedes all prior agreements, understandings and arrangements, both oral
and written, between the parties hereto with respect to such subject matter.
17. Notices. All notices, requests, demands and other
communications under this Agreement will be in writing and will be deemed to
have been duly given (a) on the date of the service if served personally on the
party to whom notice is to be given, (b) on the date of transmission if
transmitted by facsimile with confirmation of receipt, (c) on the date of
receipt if mailed to the party to whom notice is to be given by first class
mail, registered or certified, postage prepaid or by overnight courier service
(i.e., Federal Express or equivalent) and unless either party should notify the
other of a change of address properly addressed as follows, or (d) otherwise on
the date of receipt when the intended recipient has acknowledged receipt:
(i) If to the Employee:
Xxxx X. Xxxxxxx
-------------------------------------
-------------------------------------
(ii) If to the Bank:
North Bay Bancorp
0000 Xxxxxx Xxxxxx
Xxxx, Xxxxxxxxxx 00000
Attention: Xxxxx X. Xxxxxxxx
President and Chief Executive Officer
Facsimile: (000) 000-0000
18. Binding Effect. The obligations of the Employee under this
Agreement shall continue after the expiration of this Agreement and the
termination of his employment with the Bank for any reason, shall be binding
upon his heirs, executors, personal representatives, legal representatives and
assigns and shall inure to the benefit of any successor and assigns of the Bank.
19. Severability. The invalidity of any one or more of the words,
phrases, sentences, clauses, sections or subsections contained in this Agreement
shall not affect the enforceability of the remaining portions of this Agreement
or any part thereof, all of which are inserted conditionally on their being
valid in law, and, in the event that any one or more of the words, phrases,
sentences, clauses, sections or subsections contained in this Agreement or any
part thereof shall be declared invalid, this Agreement shall be construed as if
such invalid word or words, phrase or phrases, sentence or sentences, clause or
clauses, section or sections or subsection or subsections had not been inserted.
If such invalidity is caused by length of time or size of area, or both, the
otherwise invalid provision will be considered to be reduced to a period or area
which would cure such invalidity.
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20. Section Headings. The section headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.
21. No Third Party Beneficiary. Nothing expressed or implied in
this Agreement is intended, or shall be construed, to confer upon or give any
person other than the parties hereto and their respective heirs, personal
representative, legal representative, successors and assigns, any rights or
remedies under or by reason of this Agreement.
22. Amendment; Modification; Waiver. No amendment, modification or
waiver of the terms of this Agreement shall be valid unless made in writing and
duly executed by the Bank and the Employee. No delay or failure at any time on
the part of the Bank in exercising any right, power or privilege under this
Agreement, or in enforcing any provision of this Agreement, shall impair any
such right, power or privilege, or be construed as a waiver of any default or as
any acquiescence therein, or shall affect the right of the Bank thereafter to
enforce each and every provision of this Agreement in accordance with its terms.
The waiver by either party hereto of a breach or violation of any term or
provision of this Agreement shall neither operate nor be construed as a waiver
of any subsequent breach or violation.
23. Counterparts. This Agreement may be executed in two
counterparts, each of which shall be deemed to be an original but all of which,
taken together, constitute one and the same agreement.
THE EMPLOYEE ACKNOWLEDGES THAT HE HAS READ AND UNDERSTANDS THE FOREGOING
PROVISIONS AND THAT SUCH PROVISIONS ARE REASONABLE.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement or
caused this Agreement to be executed as of the day and year first above written.
EMPLOYEE
-------------------------------
Xxxx X. Xxxxxxx
XXXXXX BANK
By: __________________________
Xxxxxx X. Xxxxx
Chairman of the Board
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EXHIBIT A
GENERAL RELEASE
GENERAL RELEASE
1. I have been offered by XXXXXX BANK the sum of six (6) months severance
(less all customary federal, state and local taxes) (the "Severance
Payment") for and in consideration of the execution of this General
Release (the "Release").
2. I acknowledge that I am not otherwise entitled to receive the Severance
Payment referenced in paragraph 1 above.
3. I understand that my execution of this Release is voluntary, and that
if I do not accept this Severance Payment, I will not lose any other
rights that I may have under other policies or programs of the Bank.
4. I accept the Severance Payment.
5. In consideration for the Severance Payment, I unconditionally release
Xxxxxx Bank and any of its shareholders, benefit plans, affiliate
companies, subsidiaries, and the directors, officers, employees,
trustees and agents of such entities and their successors or assigns
(collectively hereinafter, the "Bank") from any and all claims arising
out of the employment relationship between the Bank and me or the
termination of my employment with the Bank. I agree that this Release
is meant to be as general as possible and covers all claims of any
nature whether or not I know the claims exist at this time, including
but not limited to contract claims, tort claims, and claims under any
state, federal, or local law. Without limiting the general nature of
this Release, I specifically release the Bank from any and all claims
under federal or state civil rights and discrimination laws, including
but not limited to Title VII of the Civil Rights Act of 1964, the Age
Discrimination in Employment Act, the Americans with Disabilities in
Employment Act, and the Equal Pay Act.
6. However, nothing in this Release prohibits me from filing a charge of
discrimination or cooperating in any proceeding before the California
Department of Fair Employment and Housing ("CDFEH") or the Equal
Employment Opportunity Commission ("EEOC"). This Release only
constitutes a waiver by me of my right to file a suit against the Bank
on the claims set forth in paragraph 5 and a waiver by me of any right
to receive compensation based on claims, if any, brought by the CDFEH
or the EEOC.
7. In further consideration for the Severance Payment, I agree and warrant
that all Bank files, papers and property that have been in my
possession, custody or control during my employment have been returned
to the Bank and will not be copied or removed from the premises. I
further agree that I will not disclose the terms of this Release except
to my attorney and/or tax consultant, or as required by law. I may also
disclose the terms to my spouse so long as my spouse agrees not to
disclose the terms of this Release. I also agree that I am still bound
by certain provisions of the Employment Agreement that I signed on
April 15, 2002 according to the terms thereof.
8. I understand I have a seven consecutive calendar day period to revoke
my assent to this Release beginning with today's date. If I choose to
rescind this Release, I will notify the President and Chief Executive
Officer of the Company, both verbally and confirmed in writing within
seven days. With the exception of the provisions of paragraph 7, this
Release will not be effective or enforceable until the foregoing
revocation period has expired.
9. The amounts provided under this Release are not offered in connection
with any specific exit incentives or other employment termination
program.
10. I agree not to disparage the Bank, its officers, employees or agents of
the Bank either within the Bank or externally in any way.
11. I warrant that I have not assigned any right or claim released in this
Release.
12. This Release is binding on my heirs and assigns.
13. In executing this Release, I am not relying on any representations made
to me by the Bank.
14. I expressly assume any risk that the facts and law concerning this
Release may be other than as presently known to me.
15. This Release constitutes the sole and entire agreement I have with the
Bank and supersedes any and all understandings and agreements made
prior to the date of this Release.
16. This Release shall be governed in all respects by the laws of the State
of California. No action involving this Release or my employment by the
Bank may be brought except in state or federal courts located in the
State of California.
I HAVE READ AND UNDERSTAND THIS RELEASE AND AGREE TO ALL ITS TERMS.
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Signature
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