EXHIBIT 10.3.18
AMENDED AND RESTATED
EMPLOYMENT AGREEMENT
This Amended and Restated Employment Agreement ("Agreement") is made as
of the 28th day of October, 2002, by and between MASSBANK, a Massachusetts
savings bank with its main office in Reading, Massachusetts (the "Bank"),
MASSBANK Corp., a Delaware corporation (the "Company"), and Reginald E. Cormier
(the "Executive"). The Company and the Bank shall hereinafter be collectively
referred to as the "Employers".
WITNESSETH
WHEREAS, the Employers and the Executive entered into an Employment
Agreement, dated as of February 1, 1993 (the "Employment Agreement");
WHEREAS, the Employers and the Executive entered into an Executive
Severance Agreement, dated as of December 23, 1993 (the "Severance Agreement");
WHEREAS, the parties hereto desire to provide for the Executive's
continued employment by the Employers and to delineate the Executive's and the
Employers' rights and obligations arising in connection therewith, including in
the event of a Change in Control (as defined herein) subject to the amended
terms and conditions set forth herein; and
WHEREAS, the parties hereto intend that this Agreement shall be an
amendment and restatement of the Employment Agreement and the Severance
Agreement.
NOW THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Employers and the Executive
agree as follows:
1. Employment. The Employers agree to employ the Executive and the
Executive agrees to serve in the employ of the Employers on the terms and
conditions hereinafter set forth.
2. Capacity. The Executive shall serve as an officer of the Bank and of
the Company in such capacity(ies) as their respective Boards of Directors may
from time to time determine. In such capacity(ies) the Executive shall, subject
to the By-laws of the Bank and the Company, as the case may be, and to the
direction of the President, Board of Directors and other appropriate officers,
have responsibility for such functions and duties as he may be directed from
time to time by the President or other appropriate officer of the Employers.
3. Term. Subject to the applicable provisions herein, the term of the
Executive's employment hereunder shall be for two years from the date hereof;
provided, however, that the term shall be extended automatically by an
additional one day commencing on the first day following the date hereof and on
each subsequent day thereafter, unless either the Executive or the Employers
give written notice to the other of such party's election not to
extend the term of this Agreement. The last day of the term of the Executive's
employment hereunder, as so extended from time to time, is herein sometimes
referred to as the "Expiration Date."
4. Compensation and Benefits. The regular compensation and benefits
payable to the Executive under this Agreement shall be as follows:
(a) Salary. For all services rendered by the Executive under this
Agreement, the Employers shall pay the Executive a salary equal to his present
salary, subject to increase from time to time in the sole discretion of the
Boards of Directors upon the recommendation of the Compensation Committee or the
Chief Executive Officer. The Executive's salary shall be payable in periodic
installments in accordance with the Employers' usual practices for its
executives.
(b) Regular Benefits. The Executive shall also be entitled to
participate in those medical insurance plans, life insurance plans, disability
income plans, retirement plans, bonus incentive plans and other benefit plans
from time to time in effect generally for executives of the Employers. Such
participation shall be subject to (i) the terms of the applicable plan
documents, (ii) generally applicable policies of the Employers and (iii) the
discretion of the Boards of Directors of the Employers or any administrative or
other committee provided for in or contemplated by such plan.
(c) Business Expenses. The Employers shall reimburse the Executive
for all reasonable travel and other business expenses incurred by him in the
performance of his duties and responsibilities, subject to the Employers' usual
practices and policies in connection therewith and to such reasonable
requirements with respect to substantiation and documentation as may from time
to time be specified by the Employers.
(d) Vacation. The Executive shall be entitled to vacation in
accordance with the Employers' usual practices for its executives.
5. Extent of Service. During his employment hereunder, the Executive
shall devote his full business time, best efforts and business judgment, skill
and knowledge to the advancement of the interests of the Employers and to the
discharge of his duties and responsibilities hereunder. The Executive shall
comply at all times with all Bank and Company policies. He shall not engage in
any other business activity, except as may be approved by the President of the
Company or its Board of Directors; provided, however, that nothing herein shall
be construed as preventing the Executive from:
(a) Investing his assets in a manner not prohibited by Section 9
hereof, and in such form or manner as shall not require any material services on
his part in the operations or affairs of the companies or other entities in
which such investments are made;
(b) Serving on the board of directors of any company, subject to the
approval of the Chief Executive Officer of the Company and the prohibitions set
forth in Section 9 and provided that he shall not be required to render any
material services with respect to the operations or affairs of any such company;
or
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(c) Engaging in religious, charitable or other community or
non-profit activities which do not impair his ability to fulfill his duties and
responsibilities under this Agreement.
6. Termination. Notwithstanding the provisions of Section 3 hereof, the
Executive's employment hereunder may be terminated without any breach of this
Agreement under the following circumstances:
(a) Death. In the event of the Executive's death during the
Executive's employment hereunder, the Executive's employment shall terminate on
the date of his death.
(b) Disability. In the event of the Executive's "disability" during
the Executive's employment hereunder, the Executive's employment may be
terminated by the Employers. For purposes of this Agreement, "disability" shall
mean the Executive's incapacity due to physical or mental illness which has
caused the Executive to be absent from the full-time performance of his duties
with the Employers for a period of six consecutive months if the Employers shall
have given the Executive a notice of termination and, within 30 days after such
notice is given, the Executive shall not have returned to the full-time
performance of his duties.
(c) Termination by the Employers for Cause. The Executive's
employment hereunder may be terminated for "cause" without further liability on
the part of the Employers effective immediately upon a determination of the
President or the Board of Directors that such "cause" exists. For purposes
hereof, any one or more of the following shall constitute "cause" for such
termination:
(i) Dishonesty of the Executive with respect to the Employers
or any affiliate thereof;
(ii) Commission by the Executive of a crime punishable as a
felony;
(iii) Failure by the Executive to perform in a satisfactory
manner a substantial portion of his duties and responsibilities
hereunder; or
(iv) Breach by the Executive of any term of this Agreement,
including without limitation Section 9 hereof.
(d) Termination by the Employers Without Cause. The Executive's
employment with the Employers may be terminated without cause at any time by the
Employers.
(e) Termination by the Executive. The Executive's employment with
the Employers may be terminated by Executive at any time, including for Good
Reason following a Change in Control. For purposes of this Agreement, Good
Reason shall mean the occurrence of any of the following events:
(i) A substantial adverse change, not consented to by the
Executive, in the nature or scope of the Executive's title,
responsibilities, authorities, powers, reporting relationship,
functions or duties from the title, responsibilities, authorities,
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powers, reporting relationship, functions or duties exercised by the
Executive immediately prior to the Change in Control; or
(ii) A reduction in the Executive's annual base salary as in
effect on the date hereof or as the same may be increased from time to
time; or
(iii) The relocation of the Employers' offices at which the
Executive is principally employed immediately prior to the date of a
Change in Control to a location more than 25 miles from such offices,
or the requirement by the Employers for the Executive to be based
anywhere other than the Employers' offices at such location, except for
required travel on the Employers' business to an extent substantially
consistent with the Executive's business travel obligations immediately
prior to the Change in Control; or
(iv) The failure by the Employers to pay to the Executive any
portion of his compensation or to pay to the Executive any portion of
an installment of deferred compensation under any deferred compensation
program of the Employers within 15 days of the date such compensation
is due without prior written consent of the Executive; or
(v) Breach by the Employers of any provision of this Agreement
or any other agreement that may exist from time to time between the
Executive and the Employers that provides for the payment of any
compensation or benefits to Executive; or
(vi) The failure by the Employers to obtain and deliver to the
Executive an effective agreement from any successor to assume and agree
to perform this Agreement.
(f) Date of Termination. "Date of Termination" shall mean: (A) if
Executive's employment is terminated by his death, the date of his death; (B) if
Executive's employment is terminated by reason of his disability, 30 days after
the date on which a notice of termination is given, (C) if Executive's
employment is terminated by the Employers without cause, 60 days after the date
on which a notice of termination is given; and (D) if Executive's employment is
terminated for any other reason, the date on which a notice of termination is
given.
7. Compensation Upon Termination.
(a) Termination Due to Death. If Executive's employment terminates
by reason of his death, the Employers shall, within 90 days of death, pay in a
lump sum cash payment to such person as Executive shall designate in a notice
filed with the Employers or, if no such person is designated, to Executive's
estate, Executive's accrued and unpaid salary to the date of his death, plus his
accrued and unpaid incentive compensation, if any. Upon the death of Executive,
all unvested stock options granted to Executive shall immediately vest and
become fully exercisable, and Executive's estate or other legal representatives
shall have one year from the Date of Termination, to exercise all stock options
granted to Executive. All other stock-based grants and awards held by Executive
shall vest upon the death of Executive. For a period of one year following the
Date of Termination, the Employers shall pay such health insurance premiums as
may be necessary to allow Executive's spouse and dependents to receive health
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insurance coverage substantially similar to coverage they received prior to the
Date of Termination. In addition to the foregoing, any payments to which
Executive's spouse, beneficiaries, or estate may be entitled under any employee
benefit plan shall also be paid in accordance with the terms of such plan or
arrangement. Such payments, in the aggregate, shall fully discharge the
Employers' obligations hereunder.
(b) Disability. In the event of termination pursuant to Section
6(b), the Employers shall, within 90 days of the Date of Termination, pay to the
Executive in a lump sum cash payment Executive's accrued and unpaid salary to
the Date of Termination, plus his accrued and unpaid incentive compensation, if
any. In addition, the Executive shall be entitled to the following benefits,
subject to the Executive signing a general release of claims (other than claims
for the right to receive the payments or benefits set forth in this Section
7(b)) in a form and manner satisfactory to the Employers:
(i) The Executive shall continue to receive his full salary
under Section 4(a) of this Agreement until the earlier of his death,
his becoming eligible for disability income under the Employers'
disability income plan or three years following the Date of
Termination;
(ii) For a period of three years following the Date of
Termination, the Employers shall pay such health insurance premiums as
may be necessary to allow Executive and Executive's spouse and
dependents to receive health insurance coverage substantially similar
to coverage they received immediately prior to the Date of Termination;
and
(iii) All unvested stock options granted to Executive shall
immediately vest and become exercisable, and the Executive or his
legal representative shall have one year from the Date of Termination
to exercise all stock options, subject to the provisions of Section
9(c). All other stock-based grants and awards held by Executive shall
immediately vest upon the Date of Termination.
(c) Termination by the Employers for Cause. In the event of
termination pursuant to Section 6(c), the Employers shall, within 90 days of the
Date of Termination, pay to the Executive in a lump sum cash payment Executive's
accrued and unpaid salary to the Date of Termination. Thereafter, the Employers
shall have no further obligation to Executive except as otherwise expressly
provided under this Agreement, provided that any such termination shall not
adversely affect or alter Executive's rights under any employee benefit plan of
the Employers in which Executive, at the Date of Termination, has a vested
interest, unless otherwise provided in such employee benefit plan or any
agreement or other instrument attendant thereto. In addition, all stock options
held by Executive as of the Date of Termination shall immediately terminate and
be of no further force and effect, and all other stock-based grants and awards
shall be cancelled or terminated in accordance with their terms.
(d) Termination by the Employers Without Cause. In the event of
termination pursuant to Section 6(d), the Employers shall, within 90 days of the
Date of Termination, pay to the Executive in a lump sum cash payment Executive's
accrued and unpaid salary to the Date of Termination, plus his
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accrued and unpaid incentive compensation, if any. In addition, the Executive
shall be entitled to the following benefits, subject to the Executive signing a
general release of claims (other than claims for the right to receive the
payments or benefits set forth in this Section 7(d)) in a form and manner
satisfactory to the Employers:
(i) The Employers shall within 30 days following the Date of
Termination pay Executive in a lump sum cash payment an amount equal to
three times the sum of (A) Executive's current base salary and (B) the
greater of (1) his immediate prior fiscal year's bonus or (2) the
average of the Executive's bonus for the immediate past three fiscal
years;
(ii) Upon the Date of Termination, each unvested stock option
and any other stock-based grants and awards held by Executive shall
immediately vest and become exercisable by the Executive. Subject to
the provisions of Section 9(c), each such stock option may be exercised
by Executive within 180 days after the Date of Termination;
(iii) In addition to any other benefits to which Executive may
be entitled in accordance with the Employers' then existing severance
policies, the Employers shall, for a period of three years commencing
on the Date of Termination, pay such health insurance premiums as may
be necessary to allow Executive and Executive's spouse and dependents
to continue to receive health insurance coverage substantially similar
to coverage they received immediately prior to the Date of
Termination; and
(iv) Except as expressly set forth in this Section 7(d) or
required by applicable law, the Executive shall not be entitled to any
other payments or benefits from the Employers following his termination
without cause.
Notwithstanding the foregoing, the terms of this Section 7(d) shall not apply to
a termination with respect to which Executive is entitled to receive benefits
pursuant to Section 8(c).
(e) Termination by the Executive. In the event of termination
pursuant to Section 6(e), the Employers shall, within 90 days of the Date of
Termination, pay to the Executive in a lump sum cash payment Executive's accrued
and unpaid salary to the Date of Termination. Thereafter, the Employers shall
have no further obligation to Executive except as otherwise expressly provided
under this Agreement, provided that any such termination shall not adversely
affect or alter Executive's rights under any employee benefit plan of the
Employers in which Executive, at the Date of Termination, has a vested interest,
unless otherwise provided in such employee benefit plan or any agreement or
other instrument attendant thereto. In addition, subject to the provisions of
Section 9(c), all vested but unexercised stock options held by Executive as of
the Date of Termination must be exercised by Executive within three months
following the Date of Termination or by the end of the option term, if earlier.
All other stock-based grants and awards held by Executive shall vest or be
canceled upon the Date of Termination in accordance with their terms.
Notwithstanding the foregoing, the terms of this Section 7(e) shall not apply to
a termination with respect to which Executive is entitled to receive benefits
pursuant to Section 8(c).
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8. Certain Change in Control Payments.
(a) Purpose. The provisions of this Section 8 shall apply if the
Date of Termination is within 24 months after the first event constituting a
Change in Control. The provisions of this Section 8 shall terminate and be of no
further force or effect beginning on the second anniversary of a Change in
Control.
(b) A "Change in Control" shall be deemed to have occurred in any
one of the following events:
(i) Any "person" (as such term is used in Sections 13(d) and
14(d)(2) of the Securities Exchange Act of 1934 (the "Act")) becomes a
"beneficial owner" (as such term is defined in Rule 13d-3 promulgated
under the Act) (other than any trustee or other fiduciary holding
securities under an employee benefit plan of the Company, or any
corporation owned, directly or indirectly, by the stockholders of the
Company in substantially the same proportions as their ownership of
stock of the Company), directly or indirectly, of securities of the
Company representing fifty percent (50%) or more of the combined voting
power of the Company's then outstanding securities;
(ii) Persons who, as of October 1, 2002, constituted the
Company's Board of Directors (the "Incumbent Board") cease for any
reason, including without limitation as a result of a tender offer,
proxy contest, merger or similar transaction, to constitute at least a
majority of the Board of Directors of the Company, provided that any
person becoming a director of the Company subsequent to October 1,
2002 whose election was approved by at least a majority of the
directors then comprising the Incumbent Board shall, for purposes of
this Agreement, be considered a member of the Incumbent Board;
(iii) The stockholders of the Company approve a merger or
consolidation of the Company with any other corporation or other
entity, other than (A) a merger or consolidation which would result in
the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) more
than 60% of the combined voting power of the voting securities of the
Company or such surviving entity outstanding immediately after such
merger or consolidation or (B) a merger or consolidation effected to
implement a recapitalization of the Company (or similar transaction)
in which no "person" (as hereinabove defined) acquires more than 50%
of the combined voting power of the Company's then outstanding
securities; or
(iv) The stockholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all of the Company's assets.
(c) Severance Payment. In the event within 24 months after a Change
in Control the Executive's employment is terminated by the Employers without
cause (pursuant to Section 6(d)) or by the Executive for Good Reason (pursuant
to Section 6(e)), then in lieu of the benefits provided in Sections 7(d) and
7(e) above the Executive shall be entitled to the following
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benefits, subject to signing by Executive of a general release of claims (other
than claims for the right to receive the payments or benefits set forth in this
Section 8) in a form and manner satisfactory to the Employers:
(i) The Employers shall pay to the Executive an amount equal
to three times the "base amount" (as such term is defined in Section
280G(b)(3) of the Internal Revenue Code of 1986, as amended (the
"Code")) applicable to the Executive, payable in one lump-sum cash
payment no later than 30 days following the Date of Termination (as
such term is defined in Section 6(f)); and
(ii) All unvested stock options and other stock based awards
granted to Executive shall immediately vest and become exercisable by
the Executive. Each such stock option, may be exercised by Executive
within 180 days after the Date of Termination
(iii) In addition to any other benefits to which the Executive
may be entitled in accordance with the Employers' then existing
severance policies, the Employers shall, for a period of three years
commencing on the Date of Terminations, pay such health insurance
premiums as may be necessary to allow Executive and Executive's spouse
and dependents to continue to receive health insurance coverage
substantially similar to coverage they received immediately prior to
the Date of Termination.
(d) Additional Limitation.
(i) Anything in this Agreement to the contrary
notwithstanding, in the event that any compensation, payment or
distribution by the Employers to or for the benefit of Executive,
whether paid or payable or distributed or distributable pursuant to the
terms of this Agreement or otherwise (the "Severance Payments"), would
be subject to the excise tax imposed by Section 4999 of the Code the
following provisions shall apply:
(A) If the Severance Payments, reduced by the sum of (1)
the Excise Tax and (2) the total of the Federal, state, and local
income and employment taxes payable by Executive on the amount of
the Severance Payments which are in excess of the Threshold Amount
(as defined below), are greater than or equal to the Threshold
Amount, Executive shall be entitled to the full benefits payable
under this Agreement.
(B) If the Threshold Amount is less than (x) the Severance
Payments, but greater than (y) the Severance Payments reduced by the
sum of (1) the Excise Tax and (2) the total of the Federal, state,
and local income and employment taxes on the amount of the Severance
Payments which are in excess of the Threshold Amount, then the
benefits payable under this Agreement shall be reduced (but not
below zero) to the extent necessary so that the maximum Severance
Payments shall not exceed the Threshold Amount. To the extent that
there is more than one method of reducing the payments to bring them
within the Threshold Amount, Executive shall determine which method
shall be followed; provided that if Executive fails to make such
determination within 45 days after the Employers have sent
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Executive written notice of the need for such reduction, the Employers
may determine the amount of such reduction in its sole discretion.
For the purposes of this Paragraph 8(d)(iv), "Threshold Amount" shall mean
three times Executive's "base amount" within the meaning of Section
280G(b)(3) of the Code and the regulations promulgated thereunder less one
dollar ($1.00); and "Excise Tax" shall mean the excise tax imposed by
Section 4999 of the Code, and any interest or penalties incurred by
Executive with respect to such excise tax.
(ii) The determination as to which of the alternative provisions
of Paragraph 8(d)(iv)(A) shall apply to Executive shall be made by KPMG LLP
or any other nationally recognized accounting firm selected by the
Employers (the "Accounting Firm"), which shall provide detailed supporting
calculations both to the Employers and Executive within 15 business days of
the Date of Termination, if applicable, or at such earlier time as is
reasonably requested by the Employers or Executive. For purposes of
determining which of the alternative provisions of Paragraph 8(d)(iv)(A)
shall apply, Executive shall be deemed to pay federal income taxes at the
highest marginal rate of federal income taxation applicable to individuals
for the calendar year in which the determination is to be made, and state
and local income taxes at the highest marginal rates of individual taxation
in the state and locality of Executive's residence on the Date of
Termination, net of the maximum reduction in federal income taxes which
could be obtained from deduction of such state and local taxes. Any
determination by the Accounting Firm shall be binding upon the Employers
and Executive.
(e) Fees and Expenses. The Employers shall pay to the Executive all
reasonable legal and arbitration fees and expenses incurred by Executive in
successfully obtaining or enforcing any right or benefit provided in Section 8
of this Agreement.
9. Non-competition and Confidential Information.
(a) Non-competition. During the term of Executive's employment with
the Employers, and, if Executive's employment with the Employers terminates for
any reason at least 90 days prior to a Change in Control, then during the period
after such termination of employment equal to the longer of (x) one year
following the Date of Termination, and (y) three years following the Date of
Termination if the Executive receives payments or benefits pursuant to Sections
7(b), 7(d) or 8(c) hereof, the Executive will not, directly or indirectly,
whether as owner, partner, shareholder, consultant, agent, employee, co-venturer
or otherwise, or through any person, association or entity, become an employee
of or a consultant to, become a Director of or acquire any ownership interest
in, or carry on, operate, manage, control, or become involved in any manner with
any bank (or any financial institution that engages in consumer banking) that
maintains or operates an office or branch in any city or town where the
Employers maintain or operate an office or branch as of the Date of Termination,
nor will Executive attempt to hire any employee of the Employers, assist (but
not including giving references) in such hiring by any other person, association
or entity, encourage any such employee to terminate his or her relationship with
the Employers, or solicit or encourage any customer of the Employers to
terminate or reduce its
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relationship with the Employers, or to conduct with any other person,
association or entity any business or activity which such customer conducts or
could conduct with the Employers, whether or not the Employers' relationship
with such customer was originally established in whole or in part by the
Executive; provided, however, that the foregoing shall not prohibit the
Executive from owning up to two percent (2%) of the outstanding stock of a
publicly traded company engaged in the banking or financial services industry.
(b) Confidential Information. The Executive will not at any time
disclose to any other person, association or entity (except as required by
applicable law or in connection with the performance of his duties and
responsibilities hereunder), or use for his own benefit or gain, any
confidential information of the Employers obtained by him incident to his
employment with the Employers. The term "confidential information" includes,
without limitation, financial information, business plans, business practices,
customer lists, prospects and opportunities (such as lending relationships,
trust relationships, financial product developments, or possible acquisitions or
dispositions of businesses or facilities) which have been implemented, discussed
or considered by the Employers but does not include any information which has
become part of the public domain by means other than the Executive's
non-observance of his obligations hereunder.
(c) Relief. The Executive agrees that the Employers shall be entitled
to injunctive relief for any breach by him of the covenants contained in Section
9(a) or 9(b). In addition, notwithstanding anything herein or in any option plan
or agreement to the contrary, with respect to any stock option granted to the
Executive by the Employers on or after the date hereof (the "New Options"), upon
any breach by Executive of the covenants contained in Section 9(a) then (i) all
New Options shall immediately terminate and be of no further force and effect,
and (ii) with respect to any New Options that were exercised during the one year
period immediately prior to such breach (A) to the extent Executive owns any
shares that he received as a result of such option exercise, then Executive
shall sell to the Employers (and the Employers shall purchase from Executive)
such shares for an aggregate purchase price equal to the lesser of (x) the
aggregate exercise price paid by Executive for such shares, or (y) the fair
market value of such shares, and (B) to the extent Executive no longer owns any
shares that he received as a result of such option exercise, the Executive shall
pay to the Employers an amount of cash equal to the sum of (x) any gain realized
upon the exercise of such option, and (y) any gain realized upon the sale or
transfer of such shares.
(d) Interpretation. In the event that any provision of this Section 9
shall be determined by any court of competent jurisdiction to be unenforceable
by reason of its being extended over too great a period of time, too large a
geographic area, or too great a range of activities, it shall be interpreted to
extend only over the maximum period of time, geographic area, or range of
activities as to which it may be enforceable. As used in this Section 9, the
term "Employers" means the Bank, the Company and their affiliates.
10. Conflicting Agreements. The Executive hereby represents and warrants
that the execution of this Agreement and the performance of his obligations
hereunder will not breach or be in conflict with any other agreement to which he
is a party or is bound, and that he is not now subject
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to any covenants against competition or similar covenants which would affect the
performance of his obligations hereunder.
11. Withholding. All payments made by the Employers under this
Agreement shall be net of any tax or other amounts required to be withheld by
the Employers under applicable law.
12. Arbitration of Disputes. Any controversy or claim arising out of or
relating to this Agreement or the breach thereof shall be settled by arbitration
in accordance with the rules of the American Arbitration Association in the City
of Boston. Such arbitration shall be conducted in the City of Boston in
accordance with the rules of the American Arbitration Association. Judgment upon
the award rendered by the arbitrators may be entered in any court having
jurisdiction thereof.
13. Assignment; Successors and Assigns, etc. Neither the Employers nor
the Executive may make any assignment of this Agreement or any interest herein,
by operation of law or otherwise, without the prior written consent of the other
party; provided, however, that the Employers may assign their rights under this
Agreement without the consent of the Executive in the event the Employers shall
hereafter effect a reorganization, consolidate with or merge into any other
party, or transfer all or substantially all of their properties or assets to any
other party.
14. Waiver. No waiver of any provision hereof shall be effective unless
made in writing and signed by the waiving party. The failure of any party to
require the performance of any term or obligation of this Agreement, or the
waiver by any party of any breach of this Agreement, shall not prevent any
subsequent enforcement of such term or obligation or be deemed a waiver of any
subsequent breach.
15. Enforceability. If any portion or provision of this Agreement shall
to any extent be declared illegal or unenforceable by a court of competent
jurisdiction, then the remainder of this Agreement, or the application of such
portion or provision in circumstances other than those as to which it is so
declared illegal or unenforceable, shall not be affected thereby, and each
portion and provision of this Agreement shall be valid and enforceable to the
fullest extent permitted by law. The provisions of Sections 8(d), 8(e), 9 and 12
shall survive the termination of this Agreement.
16. Notices. Any notices, requests, demands and other communications
provided for by this Agreement shall be sufficient if in writing and delivered
in person or sent by registered or certified mail, postage prepaid, to the
Executive at the last address the Executive has filed in writing with the
Employers or, in the case of the Employers, at either of their main offices,
attention of the President.
17. Amendment. This Agreement may be amended or modified only by a
written instrument signed by the Executive and by duly authorized
representatives of the Employers.
18. Governing Law. This is a Massachusetts contract and shall be
construed under and be governed in all respects by the laws of the Commonwealth
of Massachusetts.
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19. Prior Agreements. This Agreement shall supercede and replace in all
respects the Employment Agreement and the Severance Agreement. All other
agreements that may exist between the Employers and Executive that provide for
the payment of any compensation or benefits to Executive shall survive.
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IN WITNESS WHEREOF, this Agreement has been executed as a sealed
instrument by the Employers and the Executive, as of the date first above
written.
MASSBANK
By: /s/ Gerard H. Brandi
---------------------------
Gerard H. Brandi
Title: President & CEO
MASSBANK CORP.
By: /s/ Gerard H. Brandi
---------------------------
Gerard H. Brandi
Title: President & CEO
/s/ Reginald E. Cormier
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Reginald E. Cormier
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