EMPLOYMENT AGREEMENT
This sets
forth the terms of the Employment Agreement made January 29, 2010 between (i)
COMMUNITY BANK SYSTEM, INC., a Delaware corporation and registered bank holding
company (“CBSI”), and COMMUNITY BANK, N.A., a national banking association
(“CBNA”), both having offices located in Dewitt, New York (collectively, the
"Employer"), and (ii) XXXXX X. XXXXXXX, an individual currently residing at
Olean, New York ("Employee"). This Agreement is effective as of
January 1, 2010 and supersedes the Employment Agreement between the parties that
expires December 31, 2009.
W I T N E S S E T
H
IN
CONSIDERATION of the promises and mutual agreements and covenants contained
herein, and other good and valuable consideration, the parties agree as
follows:
1. Employment.
(a) Term. Employer
shall continue to employ Employee, and Employee shall continue to serve, as
Chief Banking Officer and Executive Vice President of Employer for
a term commencing on January 1, 2010 and ending on December 31, 2012
("Period of Employment"), subject to termination as provided in paragraph 3
hereof.
(b) Salary. During
the period January 1, 2010 through December 31, 2010, Employer shall pay
Employee base salary at the annual rate of $263,006 ("Base
Salary"). Employee's Base Salary for calendar years after 2010 shall
be determined by the Board of Directors of Employer ("Board"), or an authorized
committee of the Board, in accordance with Employer's regular practice for
reviewing and adjusting base salary for executive
employees. Employee's Base Salary is payable in accordance with
Employer's regular payroll practices for executive employees.
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(c) Incentive
Compensation. Employee shall be entitled to annual incentive
compensation opportunities pursuant to the terms of the "Management Incentive
Plan" (which term includes any successor plan or incentive compensation
arrangement) which has been approved by the Board to cover Employee and other
key personnel of Employer. Upon termination of Employee's employment
pursuant to subparagraph 3(a), 3(b), 3(c) or paragraph 6, Employee shall be
entitled to a pro rata portion (based on Employee's complete months of active
employment in the applicable year) of the annual incentive award that is payable
with respect to the year during which the termination occurs or, in the case of
a termination upon Employee's disability pursuant to subparagraph 3(c), the date
the Disability Period began.
2. Duties during the Period of
Employment. Employee shall have full responsibility, subject
to the control of the Board and Employer's President and Chief Executive Officer
or authorized designee, for the supervision of all aspects of Employer's banking
business and operations, and the discharge of such other duties and
responsibilities to Employer as may from time to time be reasonably assigned to
Employee by the Board or Employer's President and Chief Executive
Officer. Employee shall report to the President and Chief Executive
Officer of Employer or the President and Chief Executive Officer's
designee. Employee shall devote Employee's best efforts to the
affairs of Employer, serve faithfully and to the best of Employee's ability and
devote all of Employee's working time and attention, knowledge, experience,
energy and skill to the business of Employer, except that Employee may affiliate
with professional associations, business and civic
organizations. Employee shall serve on the Board of Directors of, or
as an officer of Employer's affiliates, without additional compensation if
requested to do so by the Board of Directors of Employer. Employee
shall receive only the compensation and other benefits described in this
Agreement for Employee's duties as a Director of Employer.
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3. Termination. Employee's
employment by Employer shall be subject to termination as follows:
(a) Expiration of the
Term. This Agreement shall terminate automatically at the
expiration of the Period of Employment unless the parties enter into a written
agreement extending Employee's employment, except for the continuing obligations
of the parties as specified hereunder.
(b) Termination Upon
Death. This Agreement shall terminate upon Employee's
death. In the event this Agreement is terminated as a result of
Employee's death, Employer shall continue payments of Employee's Base Salary for
a period of 90 days following Employee's death to the beneficiary designated by
Employee on the "Beneficiary Designation Form" attached to this Agreement as
Appendix A. Any restrictions on shares of CBSI stock previously
granted to Employee shall be waived as of the date of death, and Employee's
beneficiary shall be free to dispose of any restricted stock previously granted
to Employee by Employer. Additionally, Employer shall treat as
immediately exercisable all unexpired stock options issued by Employer and held
by Employee that are not exercisable or that have not been exercised, so as to
permit the Beneficiary to purchase the balance of CBSI stock not yet purchased
pursuant to said options until the end of the full exercise period provided in
the original grant of the option right, determined without regard to Employee's
death or termination of employment.
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(c) Termination Upon
Disability. Employer may terminate this Agreement upon
Employee's disability. For the purpose of this Agreement, Employee's
inability to perform substantially all of Employee's duties hereunder by reason
of physical or mental illness or injury for a period of 26 successive weeks, or
such longer waiting/elimination period provided pursuant to Employer's group
long-term disability policy (the "Disability Period") shall constitute
disability. The determination of disability shall be made by a
physician selected by Employer and a physician selected by Employee; provided,
however, that if the two physicians so selected shall disagree, the
determination of disability shall be submitted to arbitration in accordance with
the rules of the American Arbitration Association and the decision of the
arbitrator shall be binding and conclusive on Employee and
Employer. During the Disability Period, Employee shall be entitled to
100% of Employee's Base Salary otherwise payable during that period, reduced by
all other Employer-provided income replacement benefits to which Employee may be
entitled for the Disability Period on account of such disability (including, but
not limited to, benefits provided under any disability insurance policy or
program, worker's compensation law, or any other benefit program or
arrangement). Upon termination pursuant to this disability provision,
any restrictions on shares of CBSI stock previously granted to Employee shall be
waived and Employee shall be free to dispose of any restricted stock granted to
Employee. Additionally, Employer shall treat as immediately
exercisable all unexpired stock options issued by Employer and held by Employee
that are not exercisable or that have not been exercised, so as to permit the
Employee to purchase the balance of CBSI Stock not yet purchased pursuant to
said options until the end of the full exercise period provided in the original
grant of the option right, determined without regard to Employee’s disability or
termination of employment.
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(d) Termination for
Cause. Employer may terminate Employee's employment
immediately for "cause" by written notice to Employee. For purposes
of this Agreement, a termination shall be for "cause" if the termination results
from any of the following events:
(i) The
willful breach of any material provision of this Agreement, which breach
Employee shall have failed to cure within thirty (30) days following Employer’s
written notice to Employee specifying the nature of the breach;
(ii) Any
documented misconduct by Employee as an executive or director of Employer, or
any subsidiary or affiliate of Employer for which Employee is performing
services hereunder, which is material and adverse to the interests, monetary or
otherwise, of Employer or any subsidiary or affiliate of Employer;
(iii) Unreasonable
neglect or refusal to perform the duties assigned to Employee under or pursuant
to this Agreement, unless cured within thirty (30) days following Employer’s
written notice to Employee specifying the nature of the neglect or
refusal;
(iv) Conviction
of a crime involving any act of dishonesty, acts of moral turpitude, or the
commission of a felony;
(v) Adjudication
as a bankrupt, which adjudication has not been contested in good faith, unless
bankruptcy is caused directly by Employer's unexcused failure to perform its
obligations under this Agreement;
(vi) Documented
failure to follow the reasonable, written instructions of the Board of Directors
of Employer or the Employer’s President and Chief Executive Officer, provided
that the instructions do not require Employee to engage in unlawful conduct;
or
(vii) A
willful violation of a material rule or regulation of the Office of the
Comptroller of the Currency or of any other regulatory agency governing Employer
or any subsidiary or affiliate of Employer.
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Notwithstanding
any other term or provision of this Agreement to the contrary, if Employee's
employment is terminated for cause, Employee shall forfeit all rights to
payments and benefits otherwise provided pursuant to this Agreement; provided,
however, that Base Salary shall be paid through the date of
termination.
(e) Termination For Reasons
Other Than Cause. In the event Employer terminates Employee
prior to December 31, 2012 for reasons other than cause, Employee shall be
entitled to a severance benefit equal to the greater of (i) the sum of the
annual Base Salary in effect at the time of termination and the most recent
payment to Employee under the Management Incentive Plan, or (ii) amounts of Base
Salary and expected Management Incentive Plan payments that otherwise would have
been payable through the balance of the unexpired term of this
Agreement. Unless Employee is a "specified employee" (as determined
in accordance with Internal Revenue Code Section 409A), the benefit payable
pursuant to this paragraph 3(e) shall be payable in equal biweekly installments
over the 12-month period that begins on the first day of the month following
Employee's termination. If Employee is a "specified employee" (as
determined in accordance with Internal Revenue Code Section 409A), then
installment payments during the first six months of the 12-month installment
period shall be limited to the extent required by Internal Revenue Code Section
409A, any unpaid installment amounts shall be paid immediately after such
six-month period and installment payments due during the remaining six months
shall be paid as scheduled.
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In
addition, Employer shall: (iii) permit Employee to dispose of any restricted
stock granted to Employee; and (iv) treat as immediately exercisable all
unexpired stock options held by Employee that are not exercisable or that have
not been exercised, so as to permit Employee to purchase the balance of CBSI
Stock not yet purchased pursuant to said options until the end of the full
exercise period provided in the original grant of the option right determined
without regard to Employee's termination of employment.
Notwithstanding
the foregoing, if Employer terminates Employee for reasons other than cause and
under circumstances that entitle Employee to payments and benefits under
paragraph 6 of this Agreement (regarding "Change of Control") then amounts
payable under clauses (i) or (ii) of this paragraph 3(e) shall be reduced by any
payments made to Employee under paragraphs 6(a)(i) and (ii).
(f) Expiration of Term Without
Renewal. In the event that Employee’s employment ends on
December 31, 2012 solely because Employer chooses not to renew or extend this
Agreement beyond December 31, 2012 for reasons other than cause, then Employee
shall be entitled to a severance benefit equal to the sum of (i) 175 percent of
Employee’s annual Base Salary in effect at the time of termination, and (ii) the
aggregate sum of all payments made to Employee during 2012 pursuant to the
Management Incentive Plan (or equivalent successor plan). The benefit payable
under this paragraph 3(f) shall be reduced by any amounts payable to Employee
under paragraphs 6(a)(i) and (ii). Any remaining benefit described in
this paragraph 3(f) shall be paid on or before March 15, 2013.
(g) Employer
shall have the right of first refusal to purchase from Employee or Employee’s
estate, shares of CBSI stock acquired pursuant to the exercise of stock options
after the date of Employee’s termination of employment for any reason, in the
event Employee or Employee’s estate elects to dispose or transfer such acquired
shares. Such right of first refusal shall expire ten years from the date of
termination. Employee (or Employee’s estate, as the case may be)
shall provide Employer with not less than 30 days’ advance written notice of any
disposition or transfer. If Employer chooses to exercise its right of
first refusal, it shall do so by written notice within 15 days of receipt of
notice of disposition or transfer. The purchase price per share to be
paid by Employer upon any such exercise shall equal the closing price per share
of shares of CBSI stock on the trading day that immediately precedes the date of
exercise.
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4. Fringe
Benefits.
(a) Benefit
Plans. During the Period of Employment, Employee shall be
eligible to participate in any employee pension benefit plans (as that term is
defined under Section 3(2) of the Employee Retirement Income Security Act of
1974, as amended), Employer-paid group life insurance plans, medical plans,
dental plans, long-term disability plans, business travel insurance programs and
other fringe benefit programs maintained by Employer for the benefit of its
executive employees. Participation in any of Employer's benefit plans
and programs shall be based on, and subject to satisfaction of, the eligibility
requirements and other conditions of such plans and
programs. Employer may require Employee to submit to an annual
physical, to be performed by a physician of his own
choosing. Employee shall be reimbursed for related expenses not
covered by Employer's health insurance plan, or any other plan in which Employee
is enrolled. Employee shall not be eligible to participate in
Employer's Severance Pay Plan maintained for other employees not covered by
employment agreements.
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(b) Expenses. Upon
submission to Employer of vouchers or other required documentation, Employee
shall be reimbursed for Employee's actual out-of-pocket travel and other
expenses reasonably incurred and paid by Employee in connection with Employee's
duties hereunder (including, but not limited to, expenses incurred while
performing duties outside the general geographic area of Employee’s principle
residence). Reimbursable expenses must be submitted to the President
and Chief Executive Officer of Employer for review on a quarterly
basis.
(c) Other
Benefits. During the Period of Employment, Employee also shall
be entitled to receive the following benefits:
(i) Paid
time off of twenty-six (26) days during each calendar year (with no carry over
of unused vacation to a subsequent year) and any holidays that may be provided
to all employees of Employer in accordance with Employer's holiday
policy;
(ii) Reasonable
sick leave;
(iii) Reimbursement
of membership fees and dues (but not personal expenses) for up to two club
memberships and other appropriate professional associations, subject to the
approval of the President and Chief Executive Officer of
Employer. Although it is contemplated that the membership shall be
utilized for promotion of Employer’s business interests, in the event that any
part of any membership shall be treated as taxable compensation to Employee,
Employer shall reimburse Employee for any federal, state or local income tax
owed by Employee, including any such taxes owed as a result of any reimbursement
under this subparagraph, in connection with such
membership. Reimbursements shall be made on or before the last day of
Employee’s taxable year following the taxable year in which the expense was
incurred;
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(iv) The
use of an Employer-owned cellular telephone and all Employer-related business
charges incurred in connection with the use of such telephone; and
(v) The
use of an Employer-owned or Employer-leased automobile, the selection and
replacement of which shall be subject to the approval of Employer's President
and Chief Executive Officer (or the President and Chief Executive Officer's
designee).
(d) Supplemental Retirement
Benefits. The terms and conditions for the payment of
supplemental retirement benefits shall be set forth in a separate written
agreement between the parties.
5. Stock
Options. Employer shall cause the Compensation Committee of
the Board to review whether Employee should be granted options to purchase
shares of common stock of CBSI. Such review may be conducted pursuant
to the terms of the Community Bank System, Inc. 2004 Long-Term Incentive
Compensation Program, a successor plan, or independently, as the
Compensation Committee shall determine. Reviews shall be conducted no
less frequently than annually.
6. Change of
Control.
(a) If
Employee's employment with Employer (as an employee) shall cease for any reason,
including Employee's voluntary termination for “good reason” (as defined in
paragraph 6(d) below), but not including Employee's termination for “cause”(as
described in paragraph 3 (d)) or Employee’s voluntary termination without “good
reason”, within two (2) years following a "Change of Control" that occurs during
the Period of Employment, then:
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(i) Employer
shall pay to the Employee the greater of (A) 300 percent of the sum of the
annual Employee’s Base Salary in effect at the time of Employee’s termination
and the aggregate sum of all payments made to Employee during the twelve (12)
months preceding Employee’s termination pursuant to the Management Incentive
Plan (or equivalent successor plan), or (B) amounts of Base Salary and expected
payments under the Management Incentive Plan (or equivalent successor plan) that
otherwise would have been payable through the balance of the unexpired term of
this Agreement. Unless Employee is a “specified employee “(as determined in
accordance with Internal Revenue Code Section 409A), the amount determined
pursuant to this paragraph 6(a)(i) shall be payable in a single lump-sum payment
within sixty (60) days following Employee’s termination. If Employee is a
“specified employee “(as determined in accordance with Internal Revenue Code
Section 409A), then the single lump-sum payment shall be made on the first day
of the seventh month following Employee’s termination.
(ii) Subject
to the applicable limitations of Internal Revenue Code Section 409A that apply
if Employee is a “specified employee “(as determined in accordance with Internal
Revenue Code Section 409A), Employer shall provide Employee with fringe
benefits, or the cash equivalents of such benefits, identical to those described
in paragraph 4(a) for a period of thirty-six (36) months following Employee’s
termination. To the extent the benefits provided to Employee in this
paragraph 6(a)(ii) are deemed taxable benefits, Employer shall reimburse
Employee for taxes owed by Employee on the benefits and tax reimbursement. The
reimbursement shall be made by the end of Employee’s taxable year next following
the taxable year in which Employee remits the related taxes.
(iii) Employer
shall treat as immediately exercisable all unexpired stock options issued by
Employer and held by Employee that are not otherwise exercisable or that have
not been exercised so as to permit Employee to purchase the balance of CBSI
Stock not yet purchased pursuant to said options until the end of the full
exercise period provided in the original grant of the option right, determined
without regard to Employee’s termination of employment.
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(iv) Employer
shall waive all restrictions on any shares restricted stock granted to Employee
and permit Employee to dispose of such stock.
(b) Notwithstanding
any provision of this Agreement to the contrary, and except as provided in the
last sentence of this paragraph 6(b), in the event that any payment or benefit
received or to be received by the Employee in connection with a Change of
Control (whether pursuant to the terms of this Agreement or any other plan,
arrangement or agreement)(all such payments and benefits being hereinafter
called “Total Benefits”) would be subject (in whole or in part) to the excise
tax imposed pursuant to Internal Revenue Code Section 4999, then the cash
severance payments provided in this Agreement shall first be reduced, and the
other payments and benefits hereunder shall thereafter be reduced, to the extent
necessary so that no portion of the Total Benefits will be subject to such
excise tax, but only if (i) is greater than or equal to (ii), where (i) equals
the reduced amount of such Total Benefits minus the aggregate amount of federal,
state and local income taxes on such reduced Total Benefits, and (ii) equals the
unreduced amount of such Total Benefits minus the sum of (A) the aggregate
amount of federal, state and local income taxes on such Total
Benefits, and (B) the amount of excise tax to which the Employee would be
subject in respect of such unreduced Total Benefits. Notwithstanding the
foregoing, and although Employee shall not have a legally binding right to any
such payment, the Board of Directors of Employer shall have the sole discretion
to waive the limitations described in this paragraph 6(b) and/or to increase the
amounts payable pursuant to this paragraph 6 to help cover some or all of the
taxes payable by Employee as a result of the receipt of unreduced payments and
benefits pursuant to this Agreement.
(c) For
purposes of this paragraph 6, a "Change of Control" shall be deemed to have
occurred if:
(i) any
"person," including a "group" as determined in accordance with the Section
13(d)(3) of the Securities Exchange Act of 1934 ("Exchange Act"), is or becomes
the beneficial owner, directly or indirectly, of securities of Employer
representing 30% or more of the combined voting power of Employer's then
outstanding securities;
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(ii) As
a result of, or in connection with, any tender offer or exchange offer, merger
or other business combination (a "Transaction"), the persons who were directors
of Employer before the Transaction shall cease to constitute a majority of the
Board of Directors of Employer or any successor to Employer;
(iii) Employer
is merged or consolidated with another corporation and as a result of the merger
or consolidation less than 70% of the outstanding voting securities of the
surviving or resulting corporation shall then be owned in the aggregate by the
former stockholders of Employer, other than (A) affiliates within the meaning of
the Exchange Act, or (B) any party to the merger or consolidation;
(iv) A
tender offer or exchange offer is made and consummated for the ownership of
securities of Employer representing 30% or more of the combined voting power of
Employer's then outstanding voting securities; or
(v) Employer
transfers substantially all of its assets to another corporation, which is not
controlled by Employer.
(d) For
purposes of this paragraph 6, “good reason” shall mean action taken by Employer
that results in:
(i)
An involuntary and material adverse change in Employee’s authority, duties,
responsibilities, or base compensation;
(ii) An
involuntary and material relocation of the office from which Employee is
expected to perform his duties; or
(iii) A
material breach of this Agreement.
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By way of
example, and not limitation, reducing or eliminating Employee's authority and
responsibility to implement the duties of Chief Banking Officer, as described in
paragraph 2, if involuntary, would constitute "good reason" for purposes of this
Agreement. In all cases, Employee must provide notice to Employer of
the existence of a condition described in (i), (ii) or (iii) above within thirty
(30) days of the initial existence of the condition, upon the notice of which
Employer shall have thirty (30) days thereafter in which to remedy the
condition.
7. Withholding. Employer
shall deduct and withhold from compensation and benefits provided under this
Agreement all necessary income and employment taxes and any other similar sums
required by law to be withheld.
8. Covenants.
(a) Confidentiality. Employee
shall not, without the prior written consent of Employer, disclose or use in any
way, either during his employment by Employer or thereafter, except as required
in the course of his employment by Employer, any confidential business or
technical information or trade secret acquired in the course of Employee's
employment by Employer. Employee acknowledges and agrees that it would be
difficult to fully compensate Employer for damages resulting from the breach or
threatened breach of the foregoing provision and, accordingly, that Employer
shall be entitled to temporary preliminary injunctions and permanent injunctions
to enforce such provision. This provision with respect to injunctive
relief shall not, however, diminish Employer's right to claim and recover
damages. Employee covenants to use his best efforts to prevent the
publication or disclosure of any trade secret or any confidential information
that is not in the public domain concerning the business or finances of Employer
or Employer's affiliates, or any of its or their dealings, transactions or
affairs which may come to Employee's knowledge in the pursuance of his duties or
employment.
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(b) No
Competition. Employee's employment is subject to the condition
that during the term of his employment hereunder and for the period specified in
paragraph 8(c) below, Employee shall not, directly or indirectly, own, manage,
operate, control or participate in the ownership, management, operation or
control of, or be connected as an officer, employee, partner, director,
individual proprietor, lender, consultant or otherwise with, or have any
financial interest in, or aid or assist anyone else in the conduct of, any
entity or business (a "Competitive Operation") which competes in the banking
industry or with any other business conducted by Employer or by any group,
affiliate, division or subsidiary of Employer in the states of New York or
Pennsylvania. Employee shall keep Employer fully advised as to any
activity, interest, or investment Employee may have in any way related to the
banking industry. It is understood and agreed that, for the purposes
of the foregoing provisions of this paragraph, (i) no business shall be deemed
to be a business conducted by Employer or any group, division, affiliate or
subsidiary of Employer unless 5% or more of Employer's consolidated gross sales
or operating revenues is derived from, or 5% or more of Employer's consolidated
assets are devoted to, such business; (ii) no business conducted by any entity
by which Employee is employed or in which he is interested or with which he is
connected or associated shall be deemed competitive with any business conducted
by Employer or any group, division, affiliate or subsidiary of Employer unless
it is one from which 2% or more of its consolidated gross sales or operating
revenues is derived, or to which 2% or more of its consolidated assets are
devoted; and (iii) no business which is conducted by Employer at the Date of
Termination and which subsequently is sold by Employer shall, after such sale,
be deemed to be a Competitive Operation within the meaning of this
paragraph. Ownership of not more than 5% of the voting stock of any
publicly held corporation shall not constitute a violation of this
paragraph.
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(c) Non-Competition
Period. If Employee's employment with Employer shall cease for any
reason during the Period of Employment as defined in paragraph 1(a) of this
Agreement, the "non-competition period" shall begin on the date the first
payment is made pursuant to the terms of this Agreement and shall end on the
date the final payment is made pursuant to the terms of this Agreement;
provided, however, that the non-competition period shall end on the date
Employee's employment ends in the event of Employee's termination for "good
reason" (as defined in paragraph 6(d)), or Employee's termination without cause
(as defined in paragraph 3(d)), within two years following a Change of Control
that occurs during the Period of Employment.
(d) Termination of
Payments. Upon the breach by Employee of any covenant under
this paragraph 8, Employer shall cease all payments to Employee and may offset
immediately any and all amounts payable to Employee under this Agreement against
any damages to which Employer is legally entitled in addition to any and all
other remedies available to Employer under the law or in equity.
9. Notices. Any
notice which may be given hereunder shall be sufficient if in writing and mailed
by certified mail, return receipt requested, to Employee at his residence and to
Employer at 0000 Xxxxxxxxxx Xxxxxxx, Xxxxxx, Xxx Xxxx 00000, or at such other
addresses as either Employee or Employer may, by similar notice,
designate.
10. Rules, Regulations and
Policies. Employee shall abide by and comply in all material
respects with all of the rules, regulations, and policies of Employer that may
be in effect and amended from time to time, including without limitation (i)
Employer's policy of strict adherence to, and compliance with, any and all
requirements of the banking, securities, and antitrust laws and regulations, and
(ii) Employer’s human resources, personnel and benefits policies.
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11. No Prior
Restrictions. Employee affirms and represents that Employee is
under no obligations to any former employer or other third party which is in any
way inconsistent with, or which imposes any restriction upon, the employment of
Employee by Employer, or Employee's undertakings under this
Agreement.
12. Return of Employer's
Property. After Employee has received notice of termination or
at the end of the term hereof, whichever first occurs, Employee shall promptly
return to Employer all documents and other property in his possession belonging
to Employer.
13. Construction and
Severability. The invalidity of any one or more provisions of
this Agreement or any part thereof, all of which are inserted conditionally upon
their being valid in law, shall not affect the validity of any other provisions
to this Agreement; and, in the event that one or more provisions contained
herein shall be invalid, as determined by a court of competent jurisdiction, the
court shall have authority to modify such provision in a manner that most
closely reflects the intent of the parties and is valid. This
Agreement shall be interpreted and applied in all circumstances in a manner that
is consistent with the intent of the parties that amounts earned and payable
pursuant to this Agreement shall not be subject to the premature income
recognition or adverse tax provisions of Internal Revenue Code Section 409A.
Accordingly, notwithstanding any other term or provision of this Agreement to
the contrary, distribution of benefits payable following employee’s termination
of employment shall commence as of the date required by this Agreement or, if
later, the earliest date permitted by Internal Revenue Code Section 409A
(generally six (6) months after termination, if Employee is a “specified
employee” within the meaning of Internal Revenue Code Section
409A).
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14. Governing
Law. This Agreement was executed and delivered in New York and
shall be construed and governed in accordance with the laws of the State of New
York.
15. Assignability and
Successors. This Agreement may not be assigned by Employee or
Employer, except that this Agreement shall be binding upon and shall inure to
the benefit of the successor of Employer through merger or corporate
reorganization.
16. Miscellaneous. This
Agreement constitutes the entire understanding and agreement between the parties
with respect to the subject matter hereof and shall supersede all prior
understandings and agreements, including the Employment Agreement between the
parties that is scheduled to expire effective December 31, 2009. This
Agreement cannot be amended, modified, or supplemented in any respect, except by
a subsequent written agreement entered into by the parties
hereto. The services to be performed by Employee are special and
unique; it is agreed that any breach of this Agreement by Employee shall entitle
Employer (or any successor or assigns of Employer), in addition to any other
legal remedies available to it, to apply to any court of competent jurisdiction
to enjoin such breach. The provisions of paragraphs 6 and 8 hereof
shall survive the termination of this Agreement.
17. Counterparts. This
Agreement may be executed in counterparts (each of which need not be executed by
each of the parties), which together shall constitute one and the same
instrument.
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18. Jurisdiction, Venue and
Fees. The jurisdiction of any proceeding between the parties
arising out of, or with respect to, this Agreement shall be in a court of
competent jurisdiction in New York State, and venue shall be in Onondaga
County. Each party shall be subject to the personal jurisdiction of
the courts of New York State. If Employee is the prevailing party in
a proceeding to collect payments due pursuant to this Agreement, Employer shall
reimburse Employee for reasonable attorneys' fees incurred by Employee in
connection with such proceeding. Reimbursement shall be made on or
before the last day of Employee's taxable year following the taxable year in
which the expense was incurred. The foregoing right of reimbursement
shall expire on the fifth anniversary of Employee's separation
of Employment with Employer.
The
foregoing is established by the following signatures of the
parties.
COMMUNITY BANK SYSTEM, INC. | |
By:______/s/ Xxxx X. Xxxxxxxx ________ | |
Its:_President and Chief Executive Officer | |
COMMUNITY BANK, N.A. | |
By: /s/ Xxxxxxxxxx X. Barber____________ | |
Its:_Senior Vice President, Chief HR Officer | |
______/s/ Xxxxx X. Xxxxxxx ____________ | |
XXXXX X. XXXXXXX |
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