Exhibit 10.3
Employment Agreement between Massachusetts Fincorp, Inc.
and Xxxxxxx X. Xxxxxxxx
MASSACHUSETTS FINCORP, INC.
ONE-YEAR
EMPLOYMENT AGREEMENT
This AGREEMENT ("Agreement") is made effective as of December 23,
1998, by and between Massachusetts Fincorp, Inc. (the "Holding Company"), a
corporation organized under the laws of Delaware, with its principal
offices at 0000 Xxxxxxxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx, and Xxxxxxx X.
Xxxxxxxx ("Executive"). Any reference to "Institution" herein shall mean
Massachusetts Co-operative Bank or any successor thereto.
WHEREAS, the Holding Company wishes to assure itself of the services
of Executive for the period provided in this Agreement; and
WHEREAS, the Executive is willing to serve in the employ of the
Holding Company on a full-time basis for said period.
NOW, THEREFORE, in consideration of the mutual covenants herein
contained, and upon the other terms and conditions hereinafter provided,
the parties hereby agree as follows:
1. POSITION AND RESPONSIBILITIES.
During the period of Executive's employment hereunder, Executive
agrees to serve as Senior Vice President of the Holding Company. The
Executive shall render administrative and management services to the
Holding Company such as are customarily performed by persons in a
similar executive capacity. During said period, Executive also agrees to
serve, if elected, as an officer or director of any subsidiary of the
Holding Company.
2. TERMS.
(a) The period of Executive's employment under this Agreement shall
be deemed to have commenced as of the date first above written and shall
continue for a period of twelve (12) full calendar months thereafter.
Commencing on the date of the execution of this Agreement, the term of this
Agreement shall be extended for one day each day until such time as the
board of directors of the Holding Company (the "Board") or Executive elects
not to extend the term of the Agreement by giving written notice to the
other party in accordance with Section 8 of this Agreement, in which case
the term of this Agreement shall be fixed and shall end on the first
anniversary of the date of such written notice.
(b) During the period of Executive's employment hereunder, except
for periods of absence occasioned by illness, reasonable vacation periods,
and reasonable leaves of absence, Executive shall devote substantially all
his business time, attention, skill, and efforts to the faithful
performance of his duties hereunder, including activities and services
related to the organization, operation and management of the Holding
Company and its direct or indirect subsidiaries ("Subsidiaries") and
participation in community, professional and civic organizations; provided,
however, that, with the approval of the Board, as evidenced by a resolution
of such Board, from time to time, Executive may serve, or continue to
serve, on the boards of directors of, and hold any other offices or
positions in, companies or organizations, which, in such Board's judgment,
will not present any conflict of interest with the Holding Company or its
Subsidiaries, or materially affect the performance of Executive's duties
pursuant to this Agreement.
(c) Notwithstanding anything herein contained to the contrary,
Executive's employment with the Holding Company may be terminated by the
Holding Company or Executive during the term of this Agreement, subject to
the terms and conditions of this Agreement. However, Executive shall not
perform, in any respect, directly or indirectly, during the pendency of his
temporary or permanent suspension or termination from the Institution,
duties and responsibilities formerly performed at the Institution as part
of his duties and responsibilities as Senior Vice President of the Holding
Company.
3. COMPENSATION AND REIMBURSEMENT.
(a) The Bank shall pay Executive as compensation a salary of
$99,300 per year ("Base Salary") payable in accordance with the normal
payroll practices of the Bank. Base Salary shall include any amounts of
compensation deferred by Executive under any tax-qualified retirement or
welfare benefit plan or any other deferred compensation arrangement
maintained by the Bank. During the period of this Agreement, Executive's
Base Salary shall be reviewed at least annually; the first such review will
be made no later than one year from the date of this Agreement. Such review
shall be conducted by the Board or by a Committee of the Board delegated
such responsibility by the Board. The Committee or the Board may increase
Executive's Base Salary. Any increase in Base Salary shall become the "Base
Salary" for purposes of this Agreement. In addition to the Base Salary
provided in this Section 3(a), the Holding Company shall also provide
Executive, at no premium cost to Executive, with all such other benefits as
provided uniformly to permanent full-time employees of the Holding Company
and its Subsidiaries.
(b) Discretionary Bonuses. The Executive shall be entitled to
participate in an equitable manner with all other executive officers of the
Holding Company in discretionary bonuses as authorized and declared by the
Holding Company Board to executive employees. No other compensation
provided for in this Agreement shall be deemed a substitute for the
Executive?s right to participate in such bonuses when and as declared by
the Holding Company Board.
(c) The Executive shall be entitled to participate in any employee
benefit plans, arrangements and perquisites substantially equivalent to
those in which Executive was participating or otherwise deriving benefit
from immediately prior to the beginning of the term of this Agreement, and
the Holding Company will not, without Executive's prior written consent,
make any changes in such plans, arrangements or perquisites which would
materially adversely affect Executive's rights or benefits thereunder;
except to the extent such changes are made applicable to all Holding
Company employees on a non-discriminatory basis. Without limiting the
generality of the foregoing provisions of this Subsection (c), Executive
shall be entitled to participate in or receive benefits under all plans
relating to stock options, restricted stock awards, stock purchases,
pension, thrift, supplemental retirement, profit-sharing, employee stock
ownership, group life insurance, medical and other health and welfare
coverage, education, cash or stock bonuses that are now or hereafter made
available by the Holding Company in the future to its senior executives and
key management employees, subject to and on a basis consistent with the
terms, conditions and overall administration of such plans and
arrangements. Nothing paid to the Executive under any such plan or
arrangement will be deemed to be in lieu of other compensation to which the
Executive is entitled under this Agreement.
4. PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION.
(a) Upon the occurrence of an Event of Termination (as herein
defined) during the Executive's term of employment under this Agreement,
the provisions of this Section shall apply. As used in this Agreement, an
"Event of Termination" shall mean and include any one or more of the
following: (i) the termination by the Holding Company of Executive's full-
time employment hereunder for any reason other than termination governed by
Section 5(a) hereof, or for Cause, as defined in Section 7 hereof; (ii)
Executive's resignation from the Holding Company's employ, upon, any (A)
failure to elect or reelect or to appoint or reappoint Executive as Senior
Vice President, unless consented to by the Executive, (B) a material change
in Executive's function, duties, or responsibilities with the Holding
Company or its Subsidiaries, which change would cause Executive's position
to become one of lesser responsibility, importance, or scope from the
position and attributes thereof described in Section 1, above, unless
consented to by the Executive, (C) a relocation of Executive's principal
place of employment by more than 25 miles from its location at the
effective date of this Agreement, unless consented to by the Executive, (D)
a material reduction in the benefits and perquisites to the Executive from
those being provided as of the effective date of this Agreement, unless
consented to by the Executive, (E) a liquidation or dissolution of the
Holding Company or the Institution, or (F) breach of this Agreement by the
Holding Company. Upon the occurrence of any event described in clauses (A),
(B), (C), (D), (E) or (F), above, Executive shall have the right to elect
to terminate his employment under this Agreement by resignation upon not
less than sixty (60) days prior written notice given within six full
calendar months after the event giving rise to said right to elect.
(b) Upon the occurrence of an Event of Termination, on the Date of
Termination, as defined in Section 8, the Holding Company shall be
obligated to pay Executive, or, in the event of his subsequent death, his
beneficiary or beneficiaries, or his estate, as the case may be, a sum
equal to the sum of: (i) the Base Salary and bonuses in accordance with
Sections 3(a) and 3(b); respectively, that would have been paid to
Executive for the remaining term of this Agreement had the Event of
Termination not occurred, plus the value as calculated by a recognized firm
customarily performing such valuation, of any stock options or related
rights which as of the Date of Termination have been granted to Executive
but are not exercisable by Executive and the value of any restricted stock
or related rights which have been granted to Executive; but in which
Executive does not have a non-forfeitable or fully-vested interest as of
the Date of Termination; and; and (ii) all benefits, including health
insurance in accordance with Section 3(c) that would have been provided to
Executive for the remaining term of the this Agreement had an Event of
Termination not occur At the election of the Executive, which election is
to be made upon an Event of Termination, such payments shall be made in a
lump sum. In the event that no election is made, payment to the Executive
will be made on a monthly basis in approximately equal installments during
the remaining term of the Agreement. Such payments shall not be reduced in
the event the Executive obtains other employment following termination of
employment.
(c) Upon the occurrence of an Event of Termination, the Holding
Company will cause to be continued life, medical, dental and disability
coverage substantially equivalent to the coverage maintained by the Holding
Company or its Subsidiaries for Executive prior to his termination at no
premium cost to the Executive. Such coverage shall cease upon the
expiration of the remaining term of this Agreement.
5. CHANGE IN CONTROL.
(a) For purposes of this Agreement, a "Change in Control" shall
mean an event of a nature that: (i) would be required to be reported in
response to Item 1(a) of the current report on Form 8-K, as in effect on
the date hereof, pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 0000 (xxx "Xxxxxxxx Xxx"); or (ii) results in a Change in Control of
the Bank or the Holding Company within the meaning of the Change in Bank
Control Act and the Rules and Regulations promulgated by the Federal
Deposit Insurance Corporation ("FDIC") at 12 C.F.R. [Section Sign] 303.4(a)
with respect to the Bank and the Board of Governors of the Federal Reserve
System ("FRB") at 12 C.F.R. [Section Sign] 225.41(b) with respect to the
Holding Company, as in effect on the date hereof; or (iii) results in a
transaction requiring prior FRB approval under the Bank Holding Company Act
of 1956 and the regulations promulgated thereunder by the FRB at 12 C.F.R.
{Section Sign] 225.11, as in effect on the date hereof except for the
Holding Company's acquisition of the Bank; or (iv) without limitation such
a Change in Control shall be deemed to have occurred at such time as (A)
any "person" (as the term is used in Sections 13(d) and 14(d) of the
Exchange Act) is or becomes the "beneficial owner" (as defined in Rule 13d-
3 under the Exchange Act), directly or indirectly, of securities of the
Bank or the Holding Company representing 20% or more of the Bank's or the
Holding Company's outstanding securities except for any securities of the
Bank purchased by the Holding Company in connection with the conversion of
the Bank to the stock form and any securities purchased by any tax
qualified employee benefit plan of the Bank; or (B) individuals who
constitute the Board of Directors on the date hereof (the "Incumbent
Board") cease for any reason to constitute at least a majority thereof,
provided that any person becoming a director subsequent to the date hereof
whose election was approved by a vote of at least three-quarters of the
directors comprising the Incumbent Board, or whose nomination for election
by the Holding Company's stockholders was approved by the same Nominating
Committee serving under an Incumbent Board, shall be, for purposes of this
clause (B), considered as though he were a member of the Incumbent Board;
or (C) a plan of reorganization, merger, consolidation, sale of all or
substantially all the assets of the Bank or the Holding Company or similar
transaction occurs in which the Bank or Holding Company is not the
resulting entity; or (D) solicitations of shareholders of the Holding
Company, by someone other than the current management of the Holding
Company, seeking stockholder approval of a plan or reorganization, merger
of consolidation of the Holding Company or Bank or similar transaction with
one or more corporations as a result of which the outstanding shares of the
class of securities then subject to the plan or transaction are exchanged
for or converted into cash or property or securities not issued by the Bank
or the Holding Company shall be distributed; or (E) a tender offer is made
for 20% or more of the voting securities of the Bank or the Holding
Company.
(b) If a Change in Control has occurred pursuant to Section 5(a) or
the Board has determined that a Change in Control has occurred, Executive
shall be entitled to the benefits provided in paragraphs (c) and (d), of
this Section 5 upon his subsequent termination of employment at any time
during the term of this Agreement due to (i) Executive's dismissal, or (ii)
Executive's voluntary resignation following any demotion, loss of title,
office or significant authority or responsibility, reduction in the annual
compensation or reduction in benefits or relocation of his principal place
of employment by more than 25 miles from its location immediately prior to
the change in control, unless such termination is because of his death or
termination for Cause.
(c) Upon the Executive's entitlement to benefits pursuant to
Section 5(b), the Holding Company shall pay Executive, or in the event of
his subsequent death, his beneficiary or beneficiaries, or his estate, as
the case may be, as severance pay or liquidated damages, or both, a sum
equal to the greater of: (1) the Base Salary and bonuses in accordance with
Sections 3(a) and 3(b), respectively, that would have been paid to
Executive for the payments due for the remaining term of the Agreement had
the event described in Subsection (b) of this Section 5 not occurred, plus
value, as calculated by a recognized firm customarily performing such
valuation, of any stock option or related rights which as of the Date of
Termination have been granted to Executive, but are not exercisable by
Executive and the value of restricted stock awards or related rights which
have been granted to Executive, but which Executive does not have a non-
forfeitable or fully-vested interest as of the Date of Termination and all
benefits, including health insurance, in accordance with Section 3(d) that
would have been provided to Executive for the remaining term of this
Agreement had the event described in Subsection (b) of this Section 5 not
occurred; or 2) three (3) times Executive's Average Annual Compensation (as
defined herein) for the five (5) most recent taxable years that Executive
has been employed by the Bank or such lesser number of years in the event
that Executive shall have been employed by the Bank for less than five (5)
years. Such ?Average Annual Compensation? shall include all taxable income
paid by the Bank or Holding Company, including but not limited to, Base
Salary, commissions, and bonuses, as well as contributions on Executive's
behalf to any pension and/or profit sharing plan, severance payments,
retirement payments, directors or committee fees and fringe benefits paid
or to be paid to the Executive in any such year and payment of any expense
items without accountability or business purpose or that do not meet the
Internal Revenue Service requirements for deductibility by the Bank. At the
election of the Executive, which election is to be made prior to a Change
in Control, such payment shall be made in a lump sum. In the event that no
election is made, payment to the Executive will be made on a monthly basis
in approximately equal installments during the remaining term of the
Agreement. Such payments shall not be reduced in the event Executive
obtains other employment following termination of employment.
(d) Upon the Executive's entitlement to benefits pursuant to
Section 5(b), the Company will cause to be continued life, medical, dental
and disability coverage substantially equivalent to the coverage maintained
by the Institution for Executive at no premium cost to Executive prior to
his severance. Such coverage and payments shall cease upon the expiration
of twenty-four (24) months following the Change in Control.
6. CHANGE OF CONTROL RELATED PROVISIONS.
In each calendar year that Executive is entitled to receive payments
or benefits under the provisions of this Employment Agreement, the Holding
Company shall determine if an excess parachute payment (as defined in
Section 4999 of the Internal Revenue Code of 1986, as amended, and any
successor provision thereto, (the "Code")) exists. Such determination shall
be made after taking any reductions permitted pursuant to Section 280G of
the Code and the regulations thereunder. Any amount determined to be an
excess parachute payment after taking into account such reductions shall be
hereafter referred to as the "Initial Excess Parachute Payment". As soon as
practicable after a Change in Control, the Initial Excess Parachute Payment
shall be determined. Upon the Date of Termination following a Change in
Control, the Holding Company shall pay Executive, subject to applicable
withholding requirements under applicable state or federal law, an amount
equal to:
(1) twenty (20) percent of the Initial Excess Parachute
Payment (or such other amount equal to the tax imposed under Section
4999 of the Code); and
(2) such additional amount (tax allowance) as may be
necessary to compensate Executive for the payment by Executive of
state and federal income and excise taxes on the payment provided
under clause (1) and on any payments under this Clause (2). In
computing such tax allowance, the payment to be made under Clause (1)
shall be multiplied by the "gross up percentage" ("GUP"). The GUP
shall be determined as follows:
Tax Rate
GUP = -----------
1- Tax Rate
The "Tax Rate" for purposes of computing the GUP shall be the
sum of the highest marginal federal and state income and
employment-related tax rates, including any applicable excise
tax rates, applicable to the Executive in the year in which the
payment under Clause (1) is made.
(3) Notwithstanding the foregoing, if it shall subsequently
be determined in a final judicial determination or a final
administrative settlement to which Executive is a party that the
excess parachute payment as defined in Section 4999 of the Code,
reduced as described above, is more than the Initial Excess Parachute
Payment (such different amount being hereafter referred to as the
"Determinative Excess Parachute Payment") then the Holding Company's
independent accountants shall determine the amount (the "Adjustment
Amount") the Holding Company must pay to the Executive in order to
put the Executive in the same position as the Executive would have
been if the Initial Excess Parachute Payment had been equal to the
Determinative Excess Parachute Payment. In determining the Adjustment
Amount, independent accountants of the Holding Company shall take
into account any and all taxes (including any penalties and interest)
paid by or for Executive or refunded to Executive or for Executive's
benefit. As soon as practicable after the Adjustment Amount has been
so determined, the Holding Company shall pay the Adjustment Amount to
Executive. In no event however, shall Executive make any payment
under this paragraph to the Holding Company.
7. TERMINATION FOR CAUSE.
The term "Termination for Cause" shall mean termination because of
Executive's personal dishonesty, willful misconduct, any breach of
fiduciary duty involving personal profit, intentional failure to perform
stated duties, willful violation of any law, rule, regulation (other than
traffic violations or similar offenses), final cease and desist order or
material breach of any provision of this Agreement. Notwithstanding the
foregoing, Executive shall not be deemed to have been terminated for Cause
unless and until there shall have been delivered to him a Notice of
Termination which shall include a copy of a resolution duly adopted by the
affirmative vote of not less than three-fourths of the members of the Board
at a meeting of the Board called and held for that purpose (after
reasonable notice to Executive and an opportunity for him, together with
counsel, to be heard before the Board), finding that in the good faith
opinion of the Board, Executive was guilty of conduct justifying
Termination for Cause and specifying the particulars thereof in detail. The
Executive shall not have the right to receive compensation or other
benefits for any period after Termination for Cause. During the period
beginning on the date of the Notice of Termination for Cause pursuant to
Section 8 hereof through the Date of Termination, stock options and related
limited rights granted to Executive under any stock option plan shall not
be exercisable nor shall any unvested awards granted to Executive under any
stock benefit plan of the Institution, the Holding Company or any
subsidiary or affiliate thereof, vest. At the Date of Termination, such
stock options and related limited rights and any such unvested awards shall
become null and void and shall not be exercisable by or delivered to
Executive at any time subsequent to such Termination for Cause.
8. NOTICE.
(a) Any purported termination by the Holding Company or by
Executive shall be communicated by Notice of Termination to the other party
hereto. For purposes of this Agreement, a "Notice of Termination" shall
mean a written notice which shall indicate the specific termination
provision in this Agreement relied upon and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for
termination of Executive's employment under the provision so indicated.
(b) "Date of Termination" shall mean the date specified in the
Notice of Termination (which, in the case of a Termination for Cause, shall
not be less than thirty (30) days from the date such Notice of Termination
is given).
(c) If, within thirty (30) days after any Notice of Termination is
given, the party receiving such Notice of Termination notifies the other
party that a dispute exists concerning the termination, except upon the
occurrence of a Change in Control and voluntary termination by the
Executive in which case the Date of Termination shall be the date specified
in the Notice, the Date of Termination shall be the date on which the
dispute is finally determined, either by mutual written agreement of the
parties, by a binding arbitration award, or by a final judgment, order or
decree of a court of competent jurisdiction (the time for appeal therefrom
having expired and no appeal having been perfected) and provided further
that the Date of Termination shall be extended by a notice of dispute only
if such notice is given in good faith and the party giving such notice
pursues the resolution of such dispute with reasonable diligence.
Notwithstanding the pendency of any such dispute, the Holding Company will
continue to pay Executive his full compensation in effect when the notice
giving rise to the dispute was given (including, but not limited to, Base
Salary) and continue him as a participant in all compensation, benefit and
insurance plans in which he was participating when the notice of dispute
was given, until the dispute is finally resolved in accordance with this
Agreement. Amounts paid under this Section are in addition to all other
amounts due under this Agreement and shall not be offset against or reduce
any other amounts due under this Agreement.
9. POST-TERMINATION OBLIGATIONS.
All payments and benefits to Executive under this Agreement shall be
subject to Executive's compliance with this Section 9 for one (1) full year
after the earlier of the expiration of this Agreement or termination of
Executive's employment with the Holding Company. Executive shall, upon
reasonable notice, furnish such information and assistance to the Holding
Company as may reasonably be required by the Holding Company in connection
with any litigation in which it or any of its subsidiaries or affiliates
is, or may become, a party.
10. NON-COMPETITION AND NON-DISCLOSURE.
(a) Upon any termination of Executive's employment hereunder
pursuant to Section 4 hereof, Executive agrees not to compete with the
Holding Company or its Subsidiaries for a period of one (1) year following
such termination in any city, town or county in which the Executive's
normal business office is located and the Holding Company or any of its
Subsidiaries has an office or has filed an application for regulatory
approval to establish an office, determined as of the effective date of
such termination, except as agreed to pursuant to a resolution duly adopted
by the Board. Executive agrees that during such period and within said
cities, towns and counties, Executive shall not work for or advise, consult
or otherwise serve with, directly or indirectly, any entity whose business
materially competes with the depository, lending or other business
activities of the Holding Company or its Subsidiaries. The parties hereto,
recognizing that irreparable injury will result to the Holding Company or
its Subsidiaries, its business and property in the event of Executive's
breach of this Subsection 10(a) agree that in the event of any such breach
by Executive, the Holding Company or its Subsidiaries, will be entitled, in
addition to any other remedies and damages available, to an injunction to
restrain the violation hereof by Executive, Executive's partners, agents,
servants, employees and all persons acting for or under the direction of
Executive. Executive represents and admits that in the event of the
termination of his employment pursuant to Section 7 hereof, Executive's
experience and capabilities are such that Executive can obtain employment
in a business engaged in other lines and/or of a different nature than the
Holding Company or its Subsidiaries, and that the enforcement of a remedy
by way of injunction will not prevent Executive from earning a livelihood.
Nothing herein will be construed as prohibiting the Holding Company or its
Subsidiaries from pursuing any other remedies available to the Holding
Company or its Subsidiaries for such breach or threatened breach, including
the recovery of damages from Executive.
(b) Executive recognizes and acknowledges that the knowledge of the
business activities and plans for business activities of the Holding
Company and its Subsidiaries as it may exist from time to time, is a
valuable, special and unique asset of the business of the Holding Company
and its Subsidiaries. Executive will not, during or after the term of his
employment, disclose any knowledge of the past, present, planned or
considered business activities of the Holding Company and its Subsidiaries
thereof to any person, firm, corporation, or other entity for any reason or
purpose whatsoever unless expressly authorized by the Board of Directors or
required by law. Notwithstanding the foregoing, Executive may disclose any
knowledge of banking, financial and/or economic principles, concepts or
ideas which are not solely and exclusively derived from the business plans
and activities of the Holding Company. In the event of a breach or
threatened breach by the Executive of the provisions of this Section, the
Holding Company will be entitled to an injunction restraining Executive
from disclosing, in whole or in part, the knowledge of the past, present,
planned or considered business activities of the Holding Company or its
Subsidiaries or from rendering any services to any person, firm,
corporation, other entity to whom such knowledge, in whole or in part, has
been disclosed or is threatened to be disclosed. Nothing herein will be
construed as prohibiting the Holding Company from pursuing any other
remedies available to the Holding Company for such breach or threatened
breach, including the recovery of damages from Executive.
11. SOURCE OF PAYMENTS.
(a) All payments provided in this Agreement shall be timely paid in
cash or check from the general funds of the Holding Company subject to
Section 11(b).
(b) Notwithstanding any provision herein to the contrary, to the
extent that payments and benefits, as provided by this Agreement, are paid
to or received by Executive under the Employment Agreement dated December
23, 1998, between Executive and the Institution, such compensation payments
and benefits paid by the Institution will be subtracted from any amount due
simultaneously to Executive under similar provisions of this Agreement.
Payments pursuant to this Agreement and the Institution Agreement shall be
allocated in proportion to the level of activity and the time expended on
such activities by the Executive as determined by the Holding Company and
the Institution on a quarterly basis.
12. EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.
This Agreement contains the entire understanding between the parties
hereto and supersedes any prior employment agreement between the Holding
Company or any predecessor of the Holding Company and Executive, except
that this Agreement shall not affect or operate to reduce any benefit or
compensation inuring to the Executive of a kind elsewhere provided. No
provision of this Agreement shall be interpreted to mean that Executive is
subject to receiving fewer benefits than those available to him without
reference to this Agreement.
13. NO ATTACHMENT
(a) 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.
(b) This Agreement shall be binding upon, and inure to the benefit
of, Executive and the Holding Company and their respective successors and
assigns.
14. MODIFICATION AND WAIVER.
(a) This Agreement may not be modified or amended except by an
instrument in writing signed by the parties hereto.
(b) No term or condition of this Agreement shall be deemed to have
been waived, nor shall there be any estoppel against the enforcement of any
provision of this Agreement, except by written instrument of the party
charged with such waiver or estoppel. No such written waiver shall be
deemed a continuing waiver unless specifically stated therein, and each
such waiver shall operate only as to the specific term or condition waived
and shall not constitute a waiver of such term or condition for the future
as to any act other than that specifically waived.
15. SEVERABILITY.
If, for any reason, any provision of this Agreement, or any part of
any provision, is held invalid, such invalidity shall not affect any other
provision of this Agreement or any part of such provision not held so
invalid, and each such other provision and part thereof shall to the full
extent consistent with law continue in full force and effect.
16. HEADINGS FOR REFERENCE ONLY.
The headings of sections and paragraphs herein are included solely
for convenience of reference and shall not control the meaning or
interpretation of any of the provisions of this Agreement.
17. GOVERNING LAW.
This Agreement shall be governed by the laws of the State of Delaware
without regards to principles of conflicts of law of this state.
18. ARBITRATION.
Any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration, conducted before a
panel of three arbitrators sitting in a location selected by the Executive
within fifty (50) miles from the location of the Institution, in accordance
with the rules of the American Arbitration Association then in effect.
Judgment may be entered on the arbitrator's award in any court having
jurisdiction; provided, however, that Executive shall be entitled to seek
specific performance of his right to be paid until the Date of Termination
during the pendency of any dispute or controversy arising under or in
connection with this Agreement.
In the event any dispute or controversy arising under or in
connection with Executive's termination is resolved in favor of the
Executive, whether by judgment, arbitration or settlement, Executive shall
be entitled to the payment of all back-pay, including salary, bonuses and
any other cash compensation, fringe benefits and any compensation and
benefits due Executive under this Agreement.
19. PAYMENT OF LEGAL FEES.
All reasonable legal fees paid or incurred by Executive pursuant to
any dispute or question of interpretation relating to this Agreement shall
be paid or reimbursed by the Holding Company, if Executive is successful
pursuant to a legal judgment, arbitration or settlement.
20. INDEMNIFICATION.
(a) The Holding Company shall provide Executive (including his
heirs, executors and administrators) with coverage under a standard
directors' and officers' liability insurance policy at its expense and
shall indemnify Executive (and his heirs, executors and administrators) to
the fullest extent permitted under Delaware law against all expenses and
liabilities reasonably incurred by him in connection with or arising out of
any action, suit or proceeding in which he may be involved by reason of his
having been a director or officer of the Holding Company (whether or not he
continues to be a director or officer at the time of incurring such
expenses or liabilities), such expenses and liabilities to include, but not
be limited to, judgments, court costs and attorneys' fees and the cost of
reasonable settlements.
(b) Any payments made to Executive pursuant to this Section are
subject to and conditioned upon compliance with 12 U.S.C. Section 1828(k)
and 12 C.F.R. Part 359 and any rules or regulations promulgated thereunder.
21. SUCCESSOR TO THE HOLDING COMPANY.
The Holding Company shall require any successor or assignee, whether
direct or indirect, by purchase, merger, consolidation or otherwise, to all
or substantially all the business or assets of the Institution or the
Holding Company, expressly and unconditionally to assume and agree to
perform the Holding Company's obligations under this Agreement, in the same
manner and to the same extent that the Holding Company would be required to
perform if no such succession or assignment had taken place.
SIGNATURES
IN WITNESS WHEREOF, Massachusetts Fincorp, Inc. has caused this
Agreement to be executed and its seal to be affixed hereunto by its duly
authorized officer and its directors, and Executive has signed this
Agreement, on the 23rd day of December, 1998.
ATTEST: MASSACHUSETTS FINCORP, INC.
/s/ Xxxxxxxx X. Xxxxxxxx By: /s/ Xxxx X. Xxxxx
------------------------------ ---------------------------
Xxxxxxxx X. Xxxxxxxx Xxxx X. Xxxxx
For the Entire Board of
Directors
[SEAL]
WITNESS:
/s/ Xxxxxxxx X. Xxxxxxxx By: /s/ Xxxxxxx X. Pariulli
------------------------------ ---------------------------
Xxxxxxxx X. Xxxxxxxx Xxxxxxx X. Xxxxxxxx
Executive
