1ST CONSTITUTION BANCORP (NASDAQ:FCCY) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Effective May 7, 2018, 1st Constitution Bancorp (the “Company”) appointed Naqi A. Naqvi as the Company’s Senior Vice President and Chief Accounting Officer.
Prior to his appointment as Senior Vice President and Chief Accounting Officer of the Company, Mr. Naqvi, age 61, served as Executive Vice President and Chief Financial Officer of New Jersey Community Bank (“NJCB”) from March 3, 2012 to April 11, 2018, when NJCB was merged with and into the Company’s wholly-owned subsidiary, 1st Constitution Bank (the “Merger”). Mr. Naqvi brings to 1st Constitution Bank (the “Bank”) over 35 years of experience in community banking. Prior to joining NJCB in early 2010, he held a number of senior management roles at financial institutions, including Greater Community Bancorp and Village Bank of South Orange. Mr. Naqvi started his career at First Virginia Bank before joining Village Bank of South Orange in 1983. He then joined Greater Community Bancorp in 1986 as Treasurer and was subsequently elevated to Senior Vice President and Chief Financial Officer during his 22 years of service with Greater Community Bancorp. Mr. Naqvi is a graduate of Virginia Commonwealth University with a degree in accounting and finance.
In connection with Mr. Naqvi’s appointment as Senior Vice President and Chief Accounting Officer of the Company, the Company and the Bank entered into an employment agreement with Mr. Naqvi on May 7, 2018 (the “Employment Agreement”). The Employment Agreement, which is for a term of two years, provides Mr. Naqvi with an annual base salary of $190,000 pro rata for the remainder of the year ending December 31, 2018, with any subsequent increase in annual base salary to be determined by the Board of Directors of the Company and the Bank (the “Base Salary”). Mr. Naqvi is eligible to participate in the Company’s stock equity plans on at least an annual basis and to receive a cash bonus, each as determined by the Board of Directors of the Company (the “Board”) or the Compensation Committee of the Board. Mr. Naqvi will also be entitled to participate in the employee benefit plans maintained by the Bank for the benefit of its employees generally.
The Employment Agreement also provides that in lieu of any payments to be made to Mr. Naqvi under his change in control agreement with NJCB as a result of the Merger, Mr. Naqvi will be entitled to receive the following amounts to be paid by the Company or the Bank in the event of (i) Mr. Naqvi’s death or Disability (as defined in the Employment Agreement) or (ii) the termination of employment of Mr. Naqvi by the Company and the Bank with or without Just Cause (as defined in the Employment Agreement) or (iii) the termination of employment with the Company and the Bank by Mr. Naqvi for any reason whatsoever or for no reason (collectively, the “Employee’s Termination”):
(A)if the Employee’s Termination occurs on or prior to April 11, 2019, an amount equal to $329,413.30; or
(B)if the Employee’s Termination occurs between April 12, 2019 and April 11, 2020, an amount equal $164,706.65.
In addition, if Mr. Naqvi receives any payment from the Company or the Bank as described above for reasons other than Mr. Naqvi’s death or Disability, then Mr. Naqvi and his dependents will be eligible to continue coverage under the Bank’s medical and dental insurance reimbursement plans similar to that in effect on the date of termination of employment, at Mr. Naqvi’s election and contribution requirements, for a period of twelve (12) months following the date of termination of employment.
The Employment Agreement further provides that in the event of a Change in Control (as defined in the Employment Agreement) of the Company and Mr. Naqvi’s employment to the Employment Agreement is terminated (i) by the Company or the Bank within twelve (12) months after such Change in Control of the Company without Mr. Naqvi’s prior written consent or for a reason other than Just Cause, Disability or death of Mr. Naqvi or (ii) by Mr. Naqvi for any reason, Mr. Naqvi will be paid (a) an amount equal to two times the aggregate of the Base Salary plus an amount equal to the cash bonus paid or payable to him with respect to the immediately prior calendar year, less (b) any amounts payable to Mr. Naqvi to the immediately preceding paragraph.
The foregoing summary description of the Employment Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Employment Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K, and is incorporated herein by reference.
|Item 5.02 || |
Financial Statements and Exhibits.
1ST CONSTITUTION BANCORP ExhibitEX-10.1 2 ex10_1.htm EXHIBIT 10.1 Exhibit 10.1 EMPLOYMENT AGREEMENT THIS EMPLOYMENT AGREEMENT (this “Agreement”) is dated as of May 7,…To view the full exhibit click
About 1ST CONSTITUTION BANCORP (NASDAQ:FCCY)
1st Constitution Bancorp is the bank holding company for 1st Constitution Bank (the Bank). The Bank is a commercial bank, which is engaged in the business of commercial and retail banking. The Company operates through the Community Banking segment. The Community Banking segment consists of construction, commercial, retail and mortgage banking operations. As a community bank, the Bank offers a range of services (including demand, savings and time deposits and commercial and consumer/installment loans) to individuals, small businesses and not-for-profit organizations principally in the Fort Lee area of Bergen County and in Middlesex, Mercer, Somerset and Monmouth Counties of New Jersey. The Bank’s Mortgage Warehouse Funding Group offers revolving lines of credit that are available to licensed mortgage banking companies (the Warehouse Line of Credit). The Bank’s investment activities are classified as available for sale and held to maturity securities.
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