SYNERGY BANK
EMPLOYMENT AGREEMENT
As amended and restated
This Agreement is made and entered into this 1st of January, 2005, by and
between SYNERGY BANK, a federally-chartered savings bank (hereinafter referred
to as the SAVINGS BANK) which is a wholly-owned subsidiary of Synergy Financial
Group, Inc. ("Company"), with principal offices of the Savings Bank located at
310 North Avenue East, Cranford, New Jersey, and JOHN S. FIORE (hereinafter
referred to as "CEO"), currently residing at 102 Four Winds Drive, Middletown,
New Jersey, and shall be effective the first day of January, 2005.
1. TERM.
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The period of CEO's employment under this Agreement shall begin as of the
date first above written and shall continue for a period of thirty-six (36) full
calendar months thereafter. Commencing on the first anniversary date of this
Agreement, and continuing at each anniversary date thereafter, the Agreement
shall renew for an additional year such that the remaining term shall be three
(3) years unless written notice is provided to CEO at least ten (10) days and
not more than sixty (60) days prior to any such anniversary date, that his
employment shall cease at the end of thirty-six (36) months following such
anniversary date. Prior to each notice period for non-renewal, the Executive and
Compensation Committee (excluding the "CEO") of the Board of Directors ("Board")
of the Savings Bank will conduct a comprehensive performance evaluation and
review of the CEO for all purposes under this Agreement, including whether to
extend the Agreement, and the results thereof shall be included in the minutes
of the Board's meeting (the "Performance Review").
2. DUTIES AND RESPONSIBILITIES
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CEO shall perform the duties and responsibilities of Chief Executive
Officer in accordance with applicable federal or state laws and regulations and
the bylaws, rules and regulations of the Savings Bank and shall provide
executive management services for the Savings Bank. Subject to the direction and
approval of the Board of Directors of the Savings Bank, CEO shall formulate,
approve, supervise and direct the methods of keeping the records of the Savings
Bank, statistical or otherwise; shall prepare all such reports as are required
by law or regulation including, but not limited to, statements and reports for
the Board of Directors and the members of the Savings Bank; shall prepare the
annual budget; and shall, from time to time, and at any time upon request, make
reports to the Savings Bank's Board of Directors on the business affairs and
financial condition of the Savings Bank. This shall not be deemed to limit the
powers of the Board of Directors and/or the Audit Committee of the Savings Bank
to engage at any time public accountants to examine end report concerning the
accounts and financial affairs of the Savings Bank. CEO shall perform such other
duties and services as may be entrusted to him by the Savings Bank in accordance
with its bylaws and consistent with this office as Chief Executive Officer.
In addition, CEO shall perform those specific duties set forth in Exhibit
"A" attached hereto and made a part thereof entitled, Position Description of
Chief Executive Officers.
3. COMPENSATION
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3.1.1 Base Compensation: CEO shall be paid a base annual salary of not less
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than $345,000.00 for the remainder of the Agreement ("Base Salary"). The CEO
will be paid in twenty-six (26) bi-weekly installments on the Savings Bank's
normal paydays for the duration of the Agreement.
3.1.2 The Savings Bank agrees to maintain for the business use of the CEO
an appropriate automobile. The Savings Bank also agrees to pay the annual
insurance premium, regular maintenance on, and repairs of, the vehicle,
reasonable charges for fuel and oils, registration and titling fees.
3.1.3 The Performance Review defined in Section 1 above shall include a
determination whether the performance of the CEO met expectations or exceeded
expectations. In making this decision the Executive and Compensation Committee
shall consider, but not be limited to, an evaluation of the accomplishments of
the prior year's EIP goals and other measures of the CEO's managerial and
organizational performance. Based upon the results of the Performance Review and
a review of peer group data, the Compensation Committee may, in its sole
discretion, increase the base salary of the CEO from time to time during the
Term of this Agreement.
3.1.4. In addition to the foregoing, the Performance Review shall include
an evaluation of the operation of the Savings Bank to determine if
diversification activity significantly increased the size and complexity of the
Savings Bank. If so, the Executive and Compensation Committee, in its sole
discretion, may elect to increase the base salary to be paid to the CEO.
3.2 CEO Bonus: The Performance Review shall also provide the basis for
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determining any CEO bonus. In the third year of this Agreement, the Performance
Review will also form the basis for negotiation of the renewal terms of this
Agreement. The Bank Administration Institute Executive Salary Survey, as well as
other appropriate sources, may be used as a comparative tool.
3.3 Executive Incentive Program: CEO shall be entitled to participate in an
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annual Savings Bank Executive Management-Incentive Compensation Program. The
Executive Incentive Program bonus, if granted by the Executive and Compensation
Committee, shall be a lump sum payment to be made within thirty (30) days of the
end of each year of this Agreement. The Executive Incentive Program payment
shall not result in a permanent increase in the CEO's salary.
4. OTHER ACTIVITIES
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CEO may serve, for compensation, as a lecturer, consultant to others and
may engage in other activities of a short duration which do not interfere with
his ability to perform his responsibilities under this Agreement. In all such
cases, CEO shall inform the Board of Directors of such activities in advance.
Otherwise, CEO during the term of the Agreement, shall not, except as otherwise
agreed to by the Board of Directors of the Savings Bank, work with, accept or
receive any compensation or consideration from any other organization, firm,
savings bank, person, corporation, or otherwise, for services to be performed by
CEO.
5. INSURANCE AND EMPLOYEE BENEFITS
5.1 Employee Benefits Generally: CEO shall be entitled to the employee
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benefit package currently available to all Savings Bank employees.
This benefit package includes:
Term Life Insurance
Long-Term and Short-Term Disability
Hospitalization, Medical and Dental Insurance
Retirement Plan
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as set forth in the booklets previously issued. In addition, Savings Bank will
purchase for the benefit of CEO (i) supplemental disability coverage (including
long term convalescent care coverage) and (ii) supplemental life insurance
protection to provide CEO with the same level of coverage (as a percent of CEO's
compensation) as is provided to employees generally. The Savings Bank will be
responsible for CEO's share of benefits costs including dependent coverage.
5.2 Retiree Health Benefits: In addition to the benefits provided under
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subparagraph 5.1 of this Section, CEO shall be entitled to continuing health
care coverage upon CEO's retirement from the Savings Bank at anytime after the
CEO's attainment of age 55 for the remainder of CEO's life. Prior to attainment
of age sixty-five (65), CEO's coverage shall be in substantially the same amount
as provided to CEO prior to CEO's retirement. After attainment of age sixty-five
(65), Savings Bank shall provide a Medicare supplement to CEO.
5.3 Memberships, Travel and Entertainment Expenses: The Bank shall
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reimburse the CEO for his ordinary and necessary business expenses, including,
without limitation, fees for such civic clubs and organizations as the CEO and
the Board shall mutually agree are necessary and appropriate for business
purposes, and travel and entertainment expenses, incurred in connection with the
performance of his duties under this Agreement, upon presentation to the Bank of
an itemized account of such expenses in such form as the Bank may reasonably
require.
5.4 Professional Dues and Educational Expenses: CEO shall be expected to
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and encouraged to continue his education in subject matters which may be
beneficial and advantageous to the current and future operation of the Savings
Bank. CEO shall be encouraged to participate in those organizations to which the
Savings Bank pays dues or fees, and which will benefit the Savings Bank in an
informational, communicative or educational manner.
5.5 Spouses Expenses: The Board of Directors shall designate meetings and
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activities which it deems necessary for the CEO's spouse to attend which are in
the best interest of the Savings Bank. Savings Bank will pay for out of town
expenses for these meetings.
5.6 Vacation and Leave: CEO shall be entitled to five (5) weeks of paid
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vacation and all holidays designated by the Savings Bank for its employees. In
the event of termination of employment, CEO shall be paid for unused earned and
accrued vacation at the then-current rate of salary.
5.7 Tax Returns: The Savings Bank will, during the term of this Agreement,
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reimburse the CEO for the reasonable expense related to the preparation of CEO's
federal and state tax returns. The CEO will arrange for such service in a timely
manner.
5.8 Medical Examination: Once annually during term of this Agreement, CEO
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shall obtain a complete medical examination, the reasonable cost of which will
be paid by the Savings Bank. The Chairperson of the Savings Bank shall be
advised in writing by the physician of the continued fitness of CEO to perform
under this Agreement and such report shall be confidential.
5.9. Non-Qualified Deferred Compensation Plans: Within six (6) months of
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execution of this Agreement, the Bank shall adopt for the benefit of CEO, a
Supplemental Executive Retirement Plan to supplement the benefits payable to CEO
at retirement from the Bank's tax-qualified plans.
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6. NON-ASSIGNABILITY
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This is an Agreement for the personal services of CEO and his rights
hereunder shall not be assignable by him, provided, however, that in the event
of CEO's death while this Agreement is in effect, any salary of benefits due or
payable to him to date of death, along with payment for unused earned and
accrued vacation and leave days shall be payable to his estate.
7. EFFECT OF AGREEMENT
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This Agreement shall be binding upon the parties and their respective
heirs, executors, administrators, successors and assigns. CEO shall not assign
any part of CEO's rights under this Agreement without the written consent of
Savings Bank. In the event of a merger, transfer, consolidation, or
reorganization involving Savings Bank, this Agreement shall continue in force
and become an obligation of Savings Bank's successor.
8. TERMINATION
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This Agreement may be terminated prior to the expiration date provided in
Article 1 as follows:
8.1 The provisions of this Section shall in all respects be subject to the
terms and conditions stated in Sections 9 and 10.
8.1.1 The provisions of this Section shall apply upon the occurrence of an
Event of Termination (as herein defined) during the CEO's term of employment
under this Agreement. As used in this Agreement, an "Event of Termination" shall
mean and include any one or more of the following:
(i) the termination by the Savings Bank of CEO's full-time employment
hereunder for any reason other than (A) disability or retirement, (B)
death, or (C) Termination for Cause as defined in Section 8.3 hereof;
or
(ii) CEO's resignation from the Savings Bank's employ, upon any
(A) failure to elect or reelect or to appoint or reappoint CEO as
Chief Executive Officer or failure to nominate or re-nominate the
CEO to serve on the Board,
(B) material change in CEO's function, duties, or responsibilities,
which change would cause CEO's position to become one of lesser
responsibility, importance, or scope from the position and
attributes thereof described in Section 2, above,
(C) a relocation of CEO's principal place of employment by more than
30 miles from its location at the effective date of this
Agreement, or a material reduction in the benefits and
perquisites to the CEO from those being provided as of the
effective date of this Agreement,
(D) liquidation or dissolution of the Savings Bank or Company other
than liquidations or dissolutions that are caused by
reorganizations that do not affect the status of CEO, or
(E) breach of this Agreement by the Savings Bank.
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Upon the occurrence of any event described in clauses (ii) (A), (B), (C), (D) or
(E), above, CEO shall have the right to elect to terminate his employment under
this Agreement by resignation upon sixty (60) days prior written notice given
within a reasonable period of time not to exceed four calendar months after the
initial event giving rise to said right to elect. Notwithstanding the preceding
sentence, in the event of a continuing breach of this Agreement by the Savings
Bank, the CEO, after giving due notice within the prescribed time frame of an
initial event specified above, shall not waive any of his rights solely under
this Agreement and this Section 8 by virtue of the fact that CEO has submitted
his resignation but has remained in the employment of the Savings Bank and is
engaged in good faith discussions to resolve any occurrence of an event
described in clauses (A), (B), (C), (D) and (E) above.
(iii) CEO's voluntary resignation from the Savings Bank's employ on the
effective date of, or at any time following a Change in Control during the term
of this Agreement. For these purposes, a "Change in Control" shall mean, a
change in control of the Savings Bank or the Company of a nature that: (i) would
be required to be reported in response to Item 1(a) of the current report on
Form 8-K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934 (the "Exchange Act"); or (ii) results in a
Change in Control of the Savings Bank or the Company within the meaning of the
HOLA; or (iii) without limitation, such a change in control shall be deemed to
have occurred at such time as (a) any "person" (as such term is used in Section
13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Savings Bank or the Company representing 25% or more of the
Savings Bank's or the Company's outstanding securities ordinarily having the
right to vote at the election of directors, except for any securities of the
Savings Bank issued to the Company in connection with the Reorganization and
Stock Offering pursuant to the Savings Bank's Plan of Reorganization and Stock
Issuance and securities purchased by the Savings Bank's or the Company's
employee stock benefit plans; or (b) the Incumbent Board ceases for any reason
to constitute at least a majority of the board of directors of the Savings Bank
or the Company; or (c) a reorganization, merger, consolidation, sale of all or
substantially all of the assets of the Savings Bank or the Company or similar
transaction.
8.1.2 Payments Upon an Event of Termination.
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(a) Upon the occurrence of an Event of Termination other than a Change in
Control, on the date of termination, the Savings Bank shall pay CEO, as
severance pay or liquidated damages, or both, a sum equal to the sum of (i) the
Base Salary in effect as of the date of an Event of Termination for a period of
thirty-six months thereafter and (ii) the highest rate of bonus awarded to the
CEO during the prior three years. At the election of the CEO, which election is
to be made on an annual basis during the month of January, and which election is
irrevocable for the year in which made and upon the occurrence of an Event of
Termination, any payments shall be made in a lump sum or paid monthly during the
remaining term of this Agreement following the CEO's termination. In the event
that no election is made, payment to the CEO will be made on a monthly basis
during the remaining term of this Agreement. Such payments shall not be reduced
in the event the CEO obtains other employment following termination of
employment.
(b) Upon the occurrence of an Event of Termination in connection with a
Change in Control, on the date of termination the Savings Bank shall pay CEO, as
severance pay or liquidated damages, or both, a sum equal to three (3) times the
average annual taxable compensation paid by the Savings Bank to the CEO during
the five calendar year period ending on or before such date of a Change in
Control as reported on IRS Form W-2, Box 1 and IRS Form 1099, less $1.00. At the
election of the CEO, which election is to be made on an annual basis during the
month of January, and which election is irrevocable for the year in which made
and upon the occurrence of an Event of Termination, any payments shall be made
in a lump sum or paid monthly during the remaining term of this Agreement
following the CEO's
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termination. In the event that no election is made, payment to the CEO will be
made on a monthly basis during the remaining term of this Agreement. Such
payments shall not be reduced in the event the CEO obtains other employment
following termination of employment.
(c) Upon the occurrence of an Event of Termination, the Savings Bank will
cause to be continued, at the expense of the Savings Bank, life, medical,
dental, retiree health, and disability coverage substantially identical to the
coverage maintained by the Savings Bank for CEO prior to his termination for a
period of thirty-six months thereafter. In addition, the Savings Bank shall
continue all other perquisites provided to CEO pursuant to this Agreement. Such
coverage and benefits shall continue from the date of termination and for a
period of thirty-six months thereafter. The Savings Bank shall also provide
executive outplacement services to CEO for a period of one year.
(d) Notwithstanding the preceding paragraphs of this Section 8, in the
event that:
(i) the aggregate payments or benefits to be made or afforded to CEO
under said paragraphs (the "Termination Benefits") would be
deemed to include an "excess parachute payment" under Section
280G of the Code or any successor thereto, and
(ii) if such Termination Benefits were reduced to an amount (the
"Non-Triggering Amount"), the value of which is one dollar
($1.00) less than an amount equal to the total amount of payments
permissible under Section 280G of the Code or any successor
thereto,
then the Termination Benefits to be paid to CEO shall be so reduced so
as to be a Non-Triggering Amount.
8.1.3 Failure to Extend Agreement.
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(a) In the event that the Savings Bank fails to renew the term of this
Agreement (see Paragraph 1 above), and upon the subsequent termination of CEO's
full-time employment hereunder by the Savings Bank for any reason other than
disability or retirement, death or Termination for Cause as defined in Section
8.3 hereof, the Savings Bank shall pay CEO, as severance pay or liquidated
damages, or both, a sum equal to the sum of (i) the Base Salary from the date of
termination and ending thirty-six months thereafter and (ii) the highest rate of
bonus awarded to the CEO during the prior three years. At the election of the
CEO, which election is to be made on an annual basis during the month of
January, and which election is irrevocable for the year in which made and upon
the occurrence of an Event of Termination, any payments shall be made in a lump
sum or paid monthly during the remaining term of this Agreement following the
CEO's termination. In the event that no election is made, payment to the CEO
will be made on a monthly basis during the remaining term of this Agreement.
Such payments shall not be reduced in the event the CEO obtains other employment
following termination of employment. At the minimum, the Savings Bank shall pay
CEO not less than the Base Salary for the period of one year. In addition, the
provisions of Paragraphs 8.1.2 (c) and 8.1.2 (d) shall apply.
(b) In the event that the Savings Bank fails to renew the term of this
Agreement (see Paragraph 1 above), the notice period for CEO's voluntary
termination of this Agreement (see Paragraph 8.2.1) shall be reduced from one
hundred and twenty (120) days to sixty (60) days until such time as the Savings
Bank extends the Agreement to a remaining term of three years.
(c) In the event that the Savings Bank fails to renew the term of this
Agreement (see Paragraph 1 above), and upon the subsequent voluntary termination
of CEO's full-time employment by
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CEO, the Savings Bank shall pay to CEO a sum equal to the Base Salary for a
period of one year.
8.2 Resignation by CEO
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8.2.1 Should CEO voluntarily decide to terminate his employment for any
reason other than as specifically set forth in Section 8.1, he will provide the
Savings Bank with no less than one hundred and twenty (120) days written notice,
as defined in Section 8.5.1, of the Date of Termination, as defined in Section
8.5.2. During such one hundred and twenty (120) day period, Executive shall
continue to receive the Base Compensation payable under Section 3.1.1, the
automobile allowance payable under Section 3.1.2, and shall be entitled to a
pro-rata share of any bonus payable under Section 3.1.3. In addition, CEO shall
be entitled to the Insurance and Employee Benefits payable for such period under
Section 5.
8.2.2 In the event that the CEO gives the Notice of Termination and
complies with the 120 day notice period set forth in Section 8.1.1 above, and,
at the Savings Bank's option, the Savings Bank decides on an earlier termination
date, which does not comply with the 120 day notice provision, then the CEO will
be entitled to receive the payments to which he becomes entitled under Section
8.2.1, through the Date of Termination, as defined in Section 8.5.2.
8.3 Termination for Cause:
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8.3.1 The Savings Bank's Board of Directors may terminate the officer or
employee's employment at any time, but any termination by the Savings Bank's
Board of Directors other than termination for cause, shall not prejudice the
officer or employee's right to compensation or other benefits under the
Agreement. The officer or employee shall have no right to receive compensation
or other benefits for any period after termination for cause. Termination for
cause shall include termination because of the officer or employee's personal
dishonesty, negligence, incompetence, willful misconduct, breach of fiduciary
duty involving personal profit, intentional failure to perform stated duties,
willful violation of any law, rule, or regulation (other than traffic violations
or similar offenses) or final cease-and-desist order, or material breach of any
provision of the Agreement. In such event, CEO shall be given prior written
notice of the charges against him and an opportunity to respond in writing to
the charges before a final decision is made to terminate this Agreement.
8.4 Termination Due to Death:
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8.4.1 No termination compensation will be paid in the event that CEO's
employment is terminated as a result of death.
8.5 Notice; Date of Termination:
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8.5.1 Notice. Any purported termination by the Savings Bank or by CEO shall
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be communicated by Notice of Termination to the other party hereto. For purposes
of this Agreement, a "Notice of Termination" shall mean a written notice which
shall indicate the specific termination provision in this Agreement relied upon
and shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of CEO's employment under the provision so
indicated.
8.5.2 Date of Termination shall mean the date specified in the Notice of
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Termination (which, in the case of a Termination for Cause, shall not be less
than thirty (30) days from the date such Notice of Termination is given).
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8.5.3 If, within thirty (30) days after any Notice of Termination is given,
the party receiving such Notice of Termination notifies the other party that a
dispute exists concerning the termination, except upon the voluntary termination
by the CEO in which case the Date of Termination shall be the date specified in
the Notice (which shall conform to the requirements of this Agreement), the Date
of Termination shall be the date on which the dispute is finally determined,
either by mutual written agreement of the parties, by a binding arbitration
award, or by a final judgment, order or decree of a court of competent
jurisdiction (the time for appeal having expired and no appeal having been
perfected) and provided further that the Date of Termination shall be extended
by a notice of dispute only if such notice is given in good faith and the party
giving such notice pursues the resolution of such dispute with reasonable
diligence. Notwithstanding the pendency of any such dispute, the Savings Bank
will continue to pay CEO his full compensation in effect when the notice giving
rise to the dispute was given (including, but not limited to, Base Compensation)
and continue CEO as a participant in all compensation, benefit and insurance
plans in which he was participating when the notice of dispute was given, until
the dispute is finally resolved in accordance with this Agreement, provided such
dispute is resolved within the term of this Agreement. If such dispute is not
resolved within the term of the Agreement, the Savings Bank shall not be
obligated, upon final resolution of such dispute, to pay CEO compensation and
other payments accruing beyond the term of the Agreement. Amounts paid under
this Section shall be offset against or reduce any other amounts due under this
Agreement.
9. SUSPENSION AND/OR REMOVAL:
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9.1 If the officer or employee is suspended and/or temporarily prohibited
from participating in the conduct of the Savings Bank's affairs by a notice
served under section 8(e)(3) or (9)(1) of [the] Federal Deposit Insurance Act
(12 U.S.C. 1818(e)(3) and (g)(1)) the Savings Bank's obligations under the
Agreement shall be suspended as of the date of service unless stayed by
appropriate proceedings. If the charges in the notice are dismissed, the Savings
Bank may in its discretion (i) pay the officer or employee all or part of the
compensation withheld while its contract obligations were suspended and (ii)
reinstate in whole or in part) any of its obligations which were suspended.
9.2 If the officer or employee is removed and/or permanently prohibited
from participating in the conduct of the Savings Bank's affairs by an order
issued under section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act (12
U.S.C, 1818(e)(4) or (g)(1)), all obligations of the Savings Bank under the
Agreement shall terminate as of the effective date of the order, but vested
rights of the Agreeing parties shall not be affected.
10. TERMINATION OF ALL AGREEMENT OBLIGATIONS:
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10.1 If the Savings Bank is in default (as defined in section 3(x)(1) of
the Federal Deposit Insurance Act), all obligations under the Agreement shall
terminate as of the date of default, but this paragraph 10.1 need not be
included in an employment Agreement if prior written approval is secured from
the Director or his or her designee.
10.2 All obligations under the Agreement shall be terminated, except to the
extent determined that continuation of the contract is necessary for the
continued operation of the Savings Bank.
10.2.1 by the Director or his or her designee, at the time the Federal
Deposit Insurance Corporation enters into an agreement to provide assistance to
or on behalf of the Savings Bank under the authority contained in section 13(c)
of the Federal Deposit Insurance Act; or
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10.2.2 by the Director or his or her designee, at the time the Director or
his or her designee approves a supervisory merger to resolve problems related to
operation of the Savings Bank or when the Savings Bank is determined by the
Director to be in an unsafe or unsound condition. Any rights of the parties that
have already vested, however, shell not be affected by such action.
11. PAYMENTS.
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Any payments made to the employee pursuant to this Agreement, or otherwise,
are subject to and conditioned upon their compliance with 12 U.S.C.ss. 1828(k)
and any regulations promulgated thereunder.
12. ENTIRE AGREEMENT:
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This Agreement constitutes the entire understanding of the parties
concerning CEO's compensation and may not be modified or amended without the
written consent of the parties.
13. ARBITRATION:
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Any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration, conducted before a panel
of three arbitrators sitting in a location selected by the employee within
twenty-five (25) miles from the location of the Savings Bank, in accordance with
the rules of the American Arbitration Association then in effect. Judgment may
be entered on the arbitrator's award in any court having jurisdiction; provided,
however, that CEO shall be entitled to seek specific performance of his right to
be paid until the Date of Termination during the pendency of any dispute or
controversy arising under or in connection with this Agreement.
14. PAYMENT OF LEGAL FEES:
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Reasonable legal fees paid or incurred by CEO pursuant to any dispute or
question of interpretation relating to this Agreement shall be paid or
reimbursed by the Savings Bank, provided that the dispute or interpretation has
been resolved in the CEO's favor.
15. INDEMNIFICATION:
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The Savings Bank shall provide CEO (including his heirs, executors and
administrators) with coverage under a standard directors' and officers'
liability insurance policy at its expense, and shall indemnify CEO (and his
heirs, executors and administrators) to the fullest extent permitted under
federal law against all expenses and liabilities reasonably incurred by him in
connection with or arising out of any action, suit or proceeding in which he may
be involved by reason of his having been a trustee, director or officer of the
Savings Bank (whether or not he continues to be a trustee, director or officer
at the time of incurring such expenses or liabilities), such expenses and
liabilities to include, but not be limited to, judgments, court costs and
attorneys' fees and the cost of reasonable settlements (such settlements must be
approved by the Savings Bank's Board). If such action, suit or proceeding is
brought against CEO in his capacity as an officer, trustee, or director of the
Savings Bank, however, such indemnification shall not extend to matters as to
which CEO is finally adjudged to be liable for willful misconduct in the
performance of his duties.
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16. SUCCESSOR TO THE SAVINGS BANK:
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The Savings Bank shall require any successor or assignee, whether direct or
indirect, by purchase, merger, consolidation or otherwise, to all or
substantially all the business or assets of the Savings Bank or the Company,
expressly and unconditionally to assume and agree to perform the Savings Bank's
obligations under this Agreement, in the same manner and to the same extent that
the Savings Bank would be required to perform if no such succession or
assignment had taken place.
17. CONFIDENTIAL INFORMATION:
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During the term of this Agreement, and any extensions thereof, CEO will
have access to trade secrets, computer programs, processes, information
concerning the Savings Bank's members, marketing strategies, business plans,
audit information, regulatory relationships, as well as other confidential
information pertaining to the Savings Bank (collectively referred to as "the
Savings Bank's Confidential Information"). CEO shall not in any way, commercial
or otherwise, except to the extent required by the proper performance of his
duties and of this Agreement, disclose to any person, for any reason, at any
time, any information relating to the Savings Bank's Confidential Information.
Information which is generally available to the public shall not be considered
the Savings Bank's Confidential Information. Further, upon the termination of
this Agreement, or any extension thereof, for any reason, CEO agrees to continue
to treat as private and privileged all such Savings Bank's Confidential
Information and will not disclose any such information for at least two (2)
years after the termination of this Agreement, except upon the direct written
authorization of the Chairman of the Board of the Savings Bank.
18. RESTRICTIVE COVENANT:
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CEO acknowledges that his services are special and of unique value to the
Savings Bank and therefore covenants and agrees that for a period of one (1)
year after termination of this Agreement, or any extensions, for any reason,
whether with or without cause, he will not be employed by a financial
institution or financial institution's holding company, whose principal offices
are located in Union County, New Jersey. As a specific exception to the
arbitration provision noted above, CEO acknowledges that the Savings Bank shall
be entitled to seek injunctive relief in court to enforce the terms and
provisions of this restrictive covenant. Nothing contained in this restrictive
covenant shall prevent the CEO from serving as a consultant for the purpose of
establishing a de novo financial institution provided the CEO is an independent
contractor and not an employee of the financial institution.
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The parties hereto subscribe below:
ATTEST: SYNERGY BANK
/s/ Paul T. LaCorte /s/ Kenneth S. Kasper
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Paul T. LaCorte Kenneth S. Kasper, Chairman
WITNESS: CEO:
/s/ Kevin A. Wenthen /s/ John S. Fiore
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Kevin A. Wenthen, Secretary John S. Fiore
Date: April 26, 2005