EXHIBIT 10.6
Form of Employment Agreement between NBT Bancorp Inc. and
Joe C. Minor made as of January 1, 2000
EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT (the "Agreement") made and entered into as of
the first day of January, 2000, by and between JOE C. MINOR ("Executive") and
NBT BANCORP INC., a Delaware corporation having its principal office in Norwich,
New York ("NBTB")
W I T N E S S E T H T H A T :
WHEREAS, Executive is an executive vice president of NBT Bancorp Inc.
and NBT Bank, National Association, a national banking association which is a
wholly-owned subsidiary of NBTB ("NBT Bank"), and president and chief operating
officer of NBT Financial Services, Inc., a Delaware corporation which is a
wholly-owned subsidiary of NBT Bank ("NBT FSI");
WHEREAS, NBTB desires to secure the continued employment of Executive,
subject to the provisions of this Agreement; and
WHEREAS, Executive is desirous of entering into the Agreement for such
periods and upon the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the premises and mutual covenants
and agreements hereinafter set forth, intending to be legally bound, the parties
agree as follows:
1. EMPLOYMENT; RESPONSIBILITIES AND DUTIES.
(a) NBTB hereby agrees to cause NBT Bank to employ Executive,
and Executive hereby agrees to serve as an executive vice president of NBT
Bancorp Inc. and NBT Bank, during the Term of Employment. NBTB hereby agrees
to cause NBT FSI to employ Executive, and Executive hereby agrees to serve
as the president and chief operating officer of NBT FSI, during the Term of
Employment. Executive shall have such executive duties, responsibilities,
and authority as shall be set forth in the bylaws of NBT Bank and NBT FSI,
as the case may be, or as may otherwise be determined by NBTB or by NBT Bank
and NBT FSI, as the case may be, including supervisory responsibilities over
the trust department of NBT Bank during the period commencing at the time of
the retirement of the individual who is the chief trust officer of NBT
Bank on the date of this Agreement and continuing until the Termination Date.
During the Term of Employment, Executive shall report directly to the chief
executive officer of NBTB.
(b) NBTB hereby agrees to cause Executive to be reelected to
the board of directors of NBT FSI for successive terms throughout the Term of
Employment.
(c) Executive shall devote his full working time and best
efforts to the performance of his responsibilities and duties hereunder. During
the Term of Employment, Executive shall not, without the prior written consent
of the Board of Directors of NBTB or the president and chief executive officer
of NBTB, render services as an employee, independent contractor, or otherwise,
whether or not compensated, to any person or entity other than NBTB or its
affiliates; provided that Executive may, where involvement in such activities
does not individually or in the aggregate significantly interfere with the
performance by Executive of his duties or violate the provisions of section 4
hereof, (i) render services to charitable organizations, (ii) manage his
personal investments, and (iii) with the prior permission of the Board of
Directors of NBTB, hold such other directorships or part-time academic
appointments or have such other business affiliations as would otherwise be
prohibited under this section 1.
2. TERM OF EMPLOYMENT.
(a) The term of this Agreement ("Term of Employment") shall be
the period commencing on the date of this Agreement (the "Commencement Date")
and continuing until the Termination Date, which shall mean the earliest to
occur of:
(i) the third anniversary of the Commencement
Date, provided, however, that (A) on the first
anniversary of the Commencement Date, the Term of Employment shall automatically
extend itself to the fourth anniversary of the Commencement Date, and (B) on the
second anniversary of the Commencement Date, the Term of Employment shall
automatically extend itself to December 31, 2004;
(ii) the death of Executive;
(iii) Executive's inability to perform his duties
hereunder, as a result of physical or mental disability as reasonably determined
by the personal physician of Executive, for a period of at least 180 consecutive
days or for at least 180 days during any period of twelve consecutive months
during the Term of Employment; or
(iv) the discharge of Executive by NBTB "for
cause," which shall mean one or more of the following:
(A) any willful or gross misconduct by
Executive with respect to the business and affairs of NBTB, NBT Bank, or NBT
FSI, or with respect to any of its affiliates for which Executive is assigned
material responsibilities or duties;
(B) the conviction of Executive of a
felony (after the earlier of the expiration of any applicable appeal period
without perfection of an appeal by Executive or the denial of any appeal as to
which no further appeal or review is available to Executive) whether or not
committed in the course of his employment by NBTB;
(C) Executive's willful neglect,
failure, or refusal to carry out his duties hereunder in a reasonable manner
(other than any such failure resulting from disability or death or from
termination by Executive for Good Reason, as hereinafter defined) after a
written demand for substantial performance is delivered to Executive
that specifically identifies the manner in which NBTB believes that Executive
has not substantially performed his duties and Executive has not resumed
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substantial performance of his duties on a continuous basis within thirty days
of receiving such demand; or
(D) the breach by Executive of any
representation or warranty in section 6(a) hereof or of any agreement
contained in section 1, 4, 5, or 6(b) hereof, which breach is
material and adverse to NBTB or any of its affiliates for which Executive is
assigned material responsibilities or duties; or
(v) Executive's resignation from his position as
an executive vice president of NBT Bancorp Inc. and NBT Bank or as president and
chief operating officer of NBT FSI other than for "Good Reason," as hereinafter
defined; or
(vi) the termination of Executive's employment by
NBTB "without cause," which shall be for any reason other than those set forth
in subsections (i), (ii), (iii), (iv), or (v) of this section 2(a), at any time,
upon the thirtieth day following notice to Executive; or
(vii) Executive's resignation for "Good Reason."
"Good Reason" shall mean, without Executive's express written consent,
reassignment of Executive to a position other than as an executive vice
president of NBT Bancorp Inc. and NBT Bank and president and chief operating
officer of NBT FSI other than for "Cause," or a decrease in the amount or level
of Executive's salary or benefits from the amount or level established in
section 3 hereof.
(b) In the event that the Term of Employment shall be
terminated for any reason other than that set forth in section 2(a)(vi) or
2(a)(vii) hereof, Executive shall be entitled to receive, upon the occurrence of
any such event:
(i) any salary (as hereinafter defined) payable
pursuant to section 3(a)(i) hereof which shall have accrued as of the
Termination Date; and
(ii) such rights as Executive shall have accrued
as of the Termination Date under the terms of any plans or arrangements in which
he participates pursuant to section 3(b) hereof, any right to reimbursement
for expenses accrued as of the Termination Date payable pursuant to
section 3(i) hereof, and the right to receive the cash equivalent of paid
annual leave and sick leave accrued as of the Termination Date pursuant to
section 3(e) hereof.
(c) In the event that the Term of Employment shall be
terminated for the reason set forth in section 2(a)(vi) or 2(a)(vii) hereof,
Executive shall be entitled to receive:
(i) any salary payable pursuant to section 3(a)
(i) hereof which shall have accrued as of the Termination Date, and, for the
period commencing on the date immediately following the Termination Date
and ending upon and including the latest of the third anniversary of the
Commencement Date, the date to which the Term of Employment shall (as of the
Termination Date) have automatically extended itself under section 2(a)(i)(A)
or 2(a)(i)(B) hereof, or the first anniversary of the
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Termination Date, salary payable at the rate established pursuant to section
3(a)(i) hereof, in a manner consistent with the normal payroll practices of NBTB
with respect to executive personnel as presently in effect or as they may be
modified by NBTB from time to time; and
(ii) such rights as Executive may have accrued as
of the Termination Date under the terms of any plans or arrangements in which he
participates pursuant to section 3(b) hereof, any
right to reimbursement for expenses accrued as of the Termination Date payable
pursuant to section 3(i) hereof, and the right to receive the cash equivalent of
paid annual leave and sick leave accrued as of the Termination Date pursuant to
section 3(e) hereof.
(d) Any provision of this section 2 to the contrary
notwithstanding, in the event that the employment of Executive with NBTB is
terminated in any situation described in section 3 of the change-in-control
letter agreement dated January 1, 2000 between NBTB and Executive (the
"Change-in-Control Agreement") so as to entitle Executive to a severance payment
and other benefits described in section 3 of the Change-in-Control Agreement,
then Executive shall be entitled to receive the following, and no more, under
this section 2:
(i) any salary payable pursuant to section 3(a)
(i) hereof which shall have accrued as of the Termination Date;
(ii) such rights as Executive shall have accrued
as of the Termination Date under the terms of any
plans or arrangements in which he participates pursuant to section 3(b) hereof,
any right to reimbursement for expenses accrued as of the Termination Date
payable pursuant to section 3(i) hereof, and the right to receive the cash
equivalent of paid annual leave and sick leave accrued as of the Termination
Date pursuant to section 3(e) hereof; and
(iii) the severance payment and other benefits
provided in the Change-in-Control Agreement.
3. COMPENSATION. For the services to be performed by Executive
for NBTB and its affiliates under this Agreement, Executive shall be compensated
in the following manner:
(a) SALARY. During the Term of Employment:
(i) NBTB shall pay Executive a salary which, on
an annual basis, shall not be less than $230,000 during the Term of Employment,
assuming Executive performs competently. Salary shall be payable in accordance
with the normal payroll practices of NBTB with respect to executive personnel
as presently in effect or as they may be modified by NBTB from time to time.
(ii) Executive shall be entitled to annual salary
increases of 8 percent during the Term of Employment, beginning in the second
year of the Term of Employment, and shall be eligible to
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be considered for further salary increases, upon review, in accordance with the
compensation policies of NBTB with respect to executive personnel as presently
in effect or as they may be modified by NBTB from time to time.
(iii) Executive shall be eligible to be considered
for performance bonuses of up to 75 percent of salary, in accordance with the
compensation policies of NBTB with respect to executive personnel as presently
in effect or as they may be modified by NBTB from time to time.
(b) EMPLOYEE BENEFIT PLANS OR ARRANGEMENTS. During the Term of
Employment, Executive shall be entitled to participate in all employee benefit
plans of NBTB, as presently in effect or as they may be modified by NBTB from
time to time, under such terms as may be applicable to officers of Executive's
rank employed by NBTB or its affiliates, including, without limitation, plans
providing retirement benefits, stock options, medical insurance, life insurance,
disability insurance, and accidental death or dismemberment insurance, provided
that there be no duplication of such benefits as are provided under any other
provision of this Agreement.
(c) PERFORMANCE BASED INCREASE TO EXECUTIVE'S RETIREMENT
BENEFITS.
(1) MEASURE AND AMOUNT. If, as a direct result
of Executive's personal performance, NBTB has a "Sustained Increase" to its net
earnings before taxes ("EBT"), determined in accordance with section 3(c)(2)
hereof, over the Lookback Period, as defined in section 3(c)(2)(i) hereof,
then NBTB shall pay Executive an enhanced benefit under the Supplemental
Retirement Agreement between NBTB, NBT Bank, and Executive dated January
1, 2000 ("SRA"), and an additional retirement benefit as follows:
(i) If the Sustained Increase to EBT over
the Lookback Period is at least $1.5 million, but less than $4 million, then
the benefit payable under the SRA that would
otherwise be payable upon Executive's attaining age 62 shall instead be payable
thereunder upon his attaining age 61. In addition, NBTB shall make a lump-sum
cash payment of $100,000 to a grantor trust (as described in section 671 of the
Internal Revenue Code of 1986, as amended) to be established for the sole
benefit of Executive ("Executive's Rabbi Trust") for payment upon his retirement
from employment with NBTB, in addition to any and all other payments payable
thereupon, such payment to be made in accordance with the terms of Executive's
Rabbi Trust.
(ii) If the Sustained Increase to EBT
over the Lookback Period is at least $4 million, but
less than $8 million, then the benefit payable under the SRA that would
otherwise be payable upon Executive's attaining age 62 shall instead be payable
thereunder upon his attaining age 60. In addition, NBTB shall make a lump-sum
cash payment of $300,000 to Executive's Rabbi Trust for payment upon his
retirement from employment with NBTB, in addition to any and all other payments
payable thereupon, such payment to be made in accordance with the terms of
Executive's Rabbi Trust.
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(iii) If the Sustained Increase to EBT
over the Lookback Period is at least $8 million, then
the benefit payable under the SRA that otherwise would be payable thereunder
upon Executive's attaining age 62 shall be calculated using the following
percentages in paragraph 3(a)(i)(1) of the SRA instead of "50%" at the following
retirement ages: 75% for retirement at age 62; 65% for retirement at age 61; and
55% for retirement at age 60. In addition, NBTB shall make a lump-sum cash
payment of $600,000 to Executive's Rabbi Trust for payment upon his retirement
from employment with NBTB, in addition to any and all other payments payable
upon such retirement, such payment to be made in accordance with the terms of
Executive's Rabbi Trust.
(2) LOOKBACK PERIOD AND DETERMINATION.
(i) The Lookback Period shall be the
period of three (3) full fiscal years of NBTB ending on
the day prior to the first day of the fiscal year in which falls the
Determination Date, as defined in paragraph 2(f) of the SRA.
(ii) Whether an increase to EBT is an
increase specified above ("Specified Increase") shall be
determined by comparing the contribution to EBT as a direct result of
Executive's personal performance over the departments and/or companies for which
Executive is directly responsible (the "Attributed Amount") for the fiscal year
immediately preceding the first year of the Lookback Period to that of the first
fiscal year of the Lookback Period. An increase to EBT will be considered
sustained if the Attributed Amount for each of the second and third fiscal years
of the Lookback Period is no less than the Attributed Amount for the year
immediately preceding the first year of the Lookback Period plus a Specified
Increase. If the Specified Increase is achieved and sustained in the manner
provided in this section 3(c)(2), then such increase to EBT shall be deemed to
be a "Sustained Increase" under section 3(c)(1).
(iii) Whether Executive has achieved a
Sustained Increase to EBT shall be determined by a
committee of the board of directors of NBT FSI made up of (a) Daryl R. Forsythe,
if he be a director of NBT FSI, and (b) those directors of NBT FSI who are not
employees of NBTB or any of its affiliates ("Committee"). Within a reasonable
period after the Determination Date, the Committee shall determine separately
whether there has been a Sustained Increase to NBTB's EBT and, if the Committee
determines there has been a Sustained Increase, whether such Sustained Increase
was solely attributable to Executive's personal performance based on the data
and factors described below.
(iv) If the Determination Date falls on a
date prior to the day following the last day of the
third full fiscal year the first of which began coincident with, or immediately
following, the effective date of this Agreement, then the Executive may make a
reasonable and good faith projection of NBTB's EBT for the balance of what would
be the Lookback Period were the Determination Date to fall on the earliest date
that would provide a full Lookback Period. If, under Executive's projections,
(A) there would be a Sustained Increase to EBT for the partial Lookback Period,
(B) such Sustained Increase would continue for what would be the balance of the
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Lookback Period, and (C) such Sustained Increase was and would continue to be
solely attributable to Executive's personal performance, then Executive may
submit his projections, with all underlying data, assumptions, methodology and
factors, to the Committee. The Committee shall review Executive's submission and
determine whether a Sustained Increase to EBT (AA) was achieved for the partial
Lookback Period, (BB) is likely to continue for what would be the balance of the
Lookback Period, and (CC) was and would continue to be a result of Executive's
personal performance. The Committee shall make its determination based on the
data and factors described below.
(v) In making comparisons and
calculations under this section 3(c)(2), the Committee shall (A) deem each
non-recurring gain or loss enjoyed or suffered by NBT Capital
Corp. at any time during the Lookback Period to have been enjoyed or suffered in
equal annual amounts during the years of the Lookback Period, the sum of which
equal annual amounts shall equal the amount of the particular non-recurring gain
or loss, rather than allot it entirely to the year in which it was actually
enjoyed or suffered, and (B) deem each non-recurring gain or loss enjoyed or
suffered by NBT Capital Corp. during the fiscal year immediately preceding the
first year of the Lookback Period to have been enjoyed or suffered in equal
annual amounts during such year and the years of the Lookback Period, the sum of
which equal annual amounts shall equal the amount of the particular
non-recurring gain or loss, rather than allot it entirely to the fiscal year
immediately preceding the first year of the Lookback Period. In addition, for
determinations based on Executive's projections, the Committee shall consider
whether the data, assumptions and methodology used by Executive in preparing his
projections were each and, in the aggregate, accurate and reasonable and are
consistent with NBTB's historical performance. In making any determination
hereunder, the Committee may retain and consult with such financial, accounting
and legal advisors as it deems appropriate and may solicit and accept further
data and analysis from the Executive, NBTB and/or third party advisor(s), as the
Committee believes necessary and/or desirable in its sole discretion.
(vi) The Committee's determination as to
whether a Sustained Increase has been achieved as a result of Executive's
personal performance and the amount thereof shall be
absolute, final and binding on the Executive, NBTB and all other parties.
(d) STOCK OPTIONS. Each January or February annually during
the Term of Employment, NBTB will cause Executive to be granted a non-statutory
("non-qualified") stock option (each an "Option") to purchase the number of
shares of the common stock of NBTB, no par value, $1.00 stated value, or the
common stock of NBTB as reclassified to have a par value of $.01 per share, as
the case may be (the "NBTB Common Stock"), pursuant to the NBT Bancorp Inc. 1993
Stock Option Plan, as amended, or any appropriate successor plan (the "Stock
Option Plan"), computed by dividing 250 percent of the annualized salary of
Executive on the date of grant of the Option by the "Fair Market Value" of NBTB
Common Stock (as defined in the Stock Option Plan). The option exercise price
per share of the shares subject to each Option shall be such Fair Market Value,
and the terms, conditions of exercise, and vesting schedule of such Option shall
be as set forth in section 8 of the Stock Option Plan.
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(e) VACATION AND SICK LEAVE. During the Term of Employment,
Executive shall be entitled to paid annual vacation periods and sick leave in
accordance with the policies of NBTB as in effect as of the Commencement Date or
as may be modified by NBTB from time to time as may be applicable to officers of
Executive's rank employed by NBTB or its affiliates, but in no event less than
four weeks of paid vacation per year.
(f) AUTOMOBILE. During the Term of Employment, Executive shall
be entitled to the use of an automobile owned by NBTB or an affiliate of NBTB,
the make, model, and year of which automobile shall be appropriate to an officer
of Executive's rank employed by NBTB or its affiliates and consistent with that
provided to others of Executive's rank employed by NBTB or its affiliates.
During the second year of the Term of Employment, the automobile used by
Executive will be replaced with a new automobile, whose value shall not exceed
$45,000 escalated by an amount calculated by the controller's division of NBT
Bank to adjust for the effect of inflation upon $45,000 between the Commencement
Date and the date of the replacement of the vehicle (an "Inflation Adjustment").
During the remaining term of the Term of Employment, should three years elapse
from the date of the automobile replacement described in the previous sentence
(or any subsequent automobile replacement that takes place under this section),
or, if earlier, should the replaced automobile (or any automobile provided under
such subsequent automobile replacement) have accumulated 50,000 miles, then it
will be replaced with a new automobile whose value shall not exceed the sum of
$45,000 and an Inflation Adjustment. Executive shall be responsible for all
expenses of ownership and use of any such automobile, subject to reimbursement
of expenses for business use in accordance with section 3(i).
(g) COUNTRY CLUB DUES. During the Term of Employment,
Executive shall be reimbursed for dues and assessments incurred in relation to
Executive's membership at Yahundasis Country Club. Such reimbursement during the
first year of the Term of Employment shall include reimbursement of Executive's
initiation fees with respect to Executive's membership at Yahundasis Country
Club.
(h) WITHHOLDING. All compensation to be paid to
Executive hereunder shall be subject to required withholding and other taxes.
(i) EXPENSES. During the Term of Employment, Executive shall
be reimbursed for reasonable travel and other expenses incurred or paid by
Executive in connection with the performance of his services under this
Agreement, upon presentation of expense statements or vouchers or such other
supporting information as may from time to time be requested, in accordance with
such policies of NBTB as are in effect as of the Commencement Date and as may be
modified by NBTB from time to time, under such terms as may be applicable to
officers of Executive's rank employed by NBTB or its affiliates.
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4. CONFIDENTIAL BUSINESS INFORMATION; NON-COMPETITION.
(a) Executive acknowledges that certain business methods,
creative techniques, and technical data of NBTB and its affiliates and the like
are deemed by NBTB to be and are in fact confidential business information of
NBTB or its affiliates or are entrusted to third parties. Such confidential
information includes but is not limited to procedures, methods, sales
relationships developed while in the service of NBTB or its affiliates,
knowledge of customers and their requirements, marketing plans, marketing
information, studies, forecasts, and surveys, competitive analyses, mailing and
marketing lists, new business proposals, lists of vendors, consultants, and
other persons who render service or provide material to NBTB or NBT Bank or
their affiliates, and compositions, ideas, plans, and methods belonging to or
related to the affairs of NBTB or NBT Bank or their affiliates. In this regard,
NBTB asserts proprietary rights in all of its business information and that of
its affiliates except for such information as is clearly in the public domain.
Notwithstanding the foregoing, information that would be generally known or
available to persons skilled in Executive's fields shall be considered to be
"clearly in the public domain" for the purposes of the preceding sentence.
Executive agrees that he will not disclose or divulge to any third party, except
as may be required by his duties hereunder, by law, regulation, or order of a
court or government authority, or as directed by NBTB, nor shall he use to the
detriment of NBTB or its affiliates or use in any business or on behalf of any
business competitive with or substantially similar to any business of NBTB or
NBT Bank or their affiliates, any confidential business information obtained
during the course of his employment by NBTB. The foregoing shall not be
construed as restricting Executive from disclosing such information to the
employees of NBTB or NBT Bank or their affiliates.
(b) Executive hereby agrees that from the Commencement Date
until the first anniversary of the Termination Date, Executive will not (i)
interfere with the relationship of NBTB or NBT Bank or their affiliates with any
of their employees, suppliers, agents, or representatives (including, without
limitation, causing or helping another business to hire any employee of NBTB or
NBT Bank or their affiliates), or (ii) directly or indirectly divert or attempt
to divert from NBTB, NBT Bank or their affiliates any business in which any of
them has been actively engaged during the Term of Employment, nor interfere with
the relationship of NBTB, NBT Bank or their affiliates with any of their
customers or prospective customers. This paragraph 4(b) shall not, in and of
itself, prohibit Executive from engaging in the banking, trust, or financial
services business in any capacity, including that of an owner or employee.
(c) Executive acknowledges and agrees that irreparable injury
will result to NBTB in the event of a breach of any of the provisions of this
section 4 (the "Designated Provisions") and that NBTB will have no adequate
remedy at law with respect thereto. Accordingly, in the event of a material
breach of any Designated Provision, and in addition to any other legal or
equitable remedy NBTB may have, NBTB shall be entitled to the entry of a
preliminary and permanent injunction (including, without limitation, specific
performance) by a court of competent jurisdiction in Chenango County, New York,
or elsewhere, to restrain the violation or breach thereof by Executive, and
Executive submits to the jurisdiction of such court in any such action.
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(d) It is the desire and intent of the parties that the
provisions of this section 4 shall be enforced to the fullest extent permissible
under the laws and public policies applied in each jurisdiction in which
enforcement is sought. Accordingly, if any particular provision of this section
4 shall be adjudicated to be invalid or unenforceable, such provision shall be
deemed amended to delete therefrom the portion thus adjudicated to be invalid or
unenforceable, such deletion to apply only with respect to the operation of such
provision in the particular jurisdiction in which such adjudication is made. In
addition, should any court determine that the provisions of this section 4 shall
be unenforceable with respect to scope, duration, or geographic area, such court
shall be empowered to substitute, to the extent enforceable, provisions similar
hereto or other provisions so as to provide to NBTB, to the fullest extent
permitted by applicable law, the benefits intended by this section 4.
5. LIFE INSURANCE. In light of the unusual abilities and experience of
Executive, NBTB in its discretion may apply for and procure as owner and for its
own benefit insurance on the life of Executive, in such amount and in such form
as NBTB may choose. NBTB shall make all payments for such insurance and shall
receive all benefits from it. Executive shall have no interest whatsoever in any
such policy or policies but, at the request of NBTB, shall submit to medical
examinations and supply such information and execute such documents as may
reasonably be required by the insurance company or companies to which NBTB has
applied for insurance.
6. REPRESENTATIONS AND WARRANTIES.
(a) Executive represents and warrants to NBTB that his
execution, delivery, and performance of this Agreement will not result in or
constitute a breach of or conflict with any term, covenant, condition, or
provision of any commitment, contract, or other agreement or instrument,
including, without limitation, any other employment agreement, to which
Executive is or has been a party.
(b) Executive shall indemnify, defend, and hold harmless NBTB
for, from, and against any and all losses, claims, suits, damages, expenses, or
liabilities, including court costs and counsel fees, which NBTB has incurred or
to which NBTB may become subject, insofar as such losses, claims, suits,
damages, expenses, liabilities, costs, or fees arise out of or are based upon
any failure of any representation or warranty of Executive in section 6(a)
hereof to be true and correct when made.
7. NOTICES. All notices, consents, waivers, or other communications
which are required or permitted hereunder shall be in writing and deemed to have
been duly given if delivered personally or by messenger, transmitted by telex or
telegram, by express courier, or sent by registered or certified mail, return
receipt requested, postage prepaid. All communications shall be addressed to the
appropriate address of each party as follows:
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If to NBTB:
NBT Bancorp Inc.
52 South Broad Street
Norwich, New York 13815
Attention: Mr. Daryl R. Forsythe
President and Chief Executive Officer
With a required copy to:
Brian D. Alprin, Esq.
Duane, Morris & Heckscher LLP
1667 K Street, N.W., Suite 700
Washington, D.C. 20006
If to Executive:
Mr. Joe C. Minor
One Wales Drive
Norwich, New York 13815
All such notices shall be deemed to have been given on the date delivered,
transmitted, or mailed in the manner provided above.
8. ASSIGNMENT. Neither party may assign this Agreement or any
rights or obligations hereunder without the consent of the other party.
9. GOVERNING LAW. This Agreement shall be governed by, construed, and
enforced in accordance with the laws of the State of New York, without giving
effect to the principles of conflict of law thereof. The parties hereby
designate Chenango County, New York to be the proper jurisdiction and venue for
any suit or action arising out of this Agreement. Each of the parties consents
to personal jurisdiction in such venue for such a proceeding and agrees that it
may be served with process in any action with respect to this Agreement or the
transactions contemplated thereby by certified or registered mail, return
receipt requested, or to its registered agent for service of process in the
State of New York. Each of the parties irrevocably and unconditionally waives
and agrees, to the fullest extent permitted by law, not to plead any objection
that it may now or hereafter have to the laying of venue or the convenience of
the forum of any action or claim with respect to this Agreement or the
transactions contemplated thereby brought in the courts aforesaid.
10. ENTIRE AGREEMENT. This Agreement constitutes the entire
understanding among NBTB and Executive relating to the subject matter hereof.
Any previous agreements or understandings between the parties hereto or between
Executive and NBT Bank or any of its affiliates regarding the subject matter
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hereof, including without limitation the terms and conditions of employment,
compensation, benefits, retirement, competition following employment, and the
like, are merged into and superseded by this Agreement. Neither this Agreement
nor any provisions hereof can be modified, changed, discharged, or terminated
except by an instrument in writing signed by the party against whom any waiver,
change, discharge, or termination is sought.
11. ILLEGALITY; SEVERABILITY.
(a) Anything in this Agreement to the contrary
notwithstanding, this Agreement is not intended and shall not be construed to
require any payment to Executive which would violate any federal or state
statute or regulation, including without limitation the "golden parachute
payment regulations" of the Federal Deposit Insurance Corporation codified to
Part 359 of title 12, Code of Federal Regulations.
(b) If any provision or provisions of this Agreement
shall be held to be invalid, illegal, or unenforceable for any reason
whatsoever:
(i) the validity, legality, and enforceability
of the remaining provisions of this Agreement (including, without limitation,
each portion of any section of this Agreement containing any such provision
held to be invalid, illegal, or unenforceable) shall not in any way be
affected or impaired thereby; and
(ii) to the fullest extent possible,
the provisions of this Agreement (including, without limitation,
each portion of any section of this Agreement containing any such provisions
held to be invalid, illegal, or unenforceable) shall be construed so as to give
effect to the intent manifested by the provision held invalid, illegal, or
unenforceable.
12. ARBITRATION. Subject to the right of each party to seek specific
performance (which right shall not be subject to arbitration), if a dispute
arises out of or related to this Agreement, or the breach thereof, such dispute
shall be referred to arbitration in accordance with the Commercial Arbitration
Rules of the American Arbitration Association ("AAA"). A dispute subject to the
provisions of this section will exist if either party notifies the other party
in writing that a dispute subject to arbitration exists and states, with
reasonable specificity, the issue subject to arbitration (the "Arbitration
Notice"). The parties agree that, after the issuance of the Arbitration Notice,
the parties will try in good faith to resolve the dispute by mediation in
accordance with the Commercial Rules of Arbitration of AAA between the date of
the issuance of the Arbitration Notice and the date the dispute is set for
arbitration. If the dispute is not settled by the date set for arbitration, then
any controversy or claim arising out of this Agreement or the breach hereof
shall be resolved by binding arbitration and judgment upon any award rendered by
arbitrator(s) may be entered in a court having jurisdiction. Any person serving
as a mediator or arbitrator must have at least ten years' experience in
resolving commercial disputes through arbitration. In the event any claim or
dispute involves an amount in excess of $100,000, either party may request that
the matter be heard by a panel of three arbitrators; otherwise all matters
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subject to arbitration shall be heard and resolved by a single arbitrator. The
arbitrator shall have the same power to compel the attendance of witnesses and
to order the production of documents or other materials and to enforce discovery
as could be exercised by a United States District Court judge sitting in the
Northern District of New York. In the event of any arbitration, each party shall
have a reasonable right to conduct discovery to the same extent permitted by the
Federal Rules of Civil Procedure, provided that such discovery shall be
concluded within ninety days after the date the matter is set for arbitration.
In the event of any arbitration, the arbitrator or arbitrators shall have the
power to award reasonable attorney's fees to the prevailing party. Any provision
in this Agreement to the contrary notwithstanding, this section shall be
governed by the Federal Arbitration Act and the parties have entered into this
Agreement pursuant to such Act.
13. COSTS OF LITIGATION. In the event litigation is commenced to
enforce any of the provisions hereof, or to obtain declaratory relief in
connection with any of the provisions hereof, the prevailing party shall be
entitled to recover reasonable attorney's fees. In the event this Agreement is
asserted in any litigation as a defense to any liability, claim, demand, action,
cause of action, or right asserted in such litigation, the party prevailing on
the issue of that defense shall be entitled to recovery of reasonable attorney's
fees.
14. AFFILIATION. A company will be deemed to be "affiliated" with
NBTB or NBT Bank according to the definition of "Affiliate" set forth in Rule
12b-2 of the General Rules and Regulations under the Securities Exchange Act of
1934, as amended.
15. HEADINGS. The section and subsection headings herein have
been inserted for convenience of reference only and shall in no way modify or
restrict any of the terms or provisions hereof.
IN WITNESS WHEREOF, the parties hereto executed or caused this
Agreement to be executed as of the day and year first above written.
NBT BANCORP INC.
By: /S/ DARYL R. FORSYTHE
Daryl R. Forsythe
President and Chief Executive Officer
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JOE C. MINOR
/S/ Joe C. Minor
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