HERITAGE COMMERCE CORP (NASDAQ:HTBK) 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 Principal Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
As previously reported, Margo G. Butsch has been promoted to Executive Vice President and Chief Credit Officer of Heritage Bank of Commerce (the “Bank”), the banking subsidiary of Heritage Commerce Corp (“HCC”), effective July 8, 2017.
On June 26, 2017, Margo G. Butsch entered into an employment agreement with HCC and the Bank. The agreement is effective July 8, 2017 and is for one year and, thereafter, it will be automatically renewed annually for one year terms. Under the agreement, Ms. Butsch will receive an annual salary of $235,000 with annual increases, if any, as determined by the Board of Directors Compensation Committee’s annual review of executive salaries. Ms. Butsch will be eligible to participate in the HCC Management Incentive Plan. Ms. Butsch will also be eligible to participate in the HCC 401(k) plan, under which she may receive matching contributions. Ms. Butsch will receive, at no cost to her, group life, health, accident, and disability insurance coverage for herself and her dependents. Ms. Butsch will also receive an automobile allowance in the amount of $700 per month.
If Ms. Butsch’s employment is terminated by the Bank without cause, she will be entitled to a lump sum payment equal to one times the sum of her base salary and her average annual bonus. During a change of control period, if Ms. Butsch’s employment is terminated or there occurs, without Ms. Butsch’s written consent, a material adverse change in the nature and scope of her position, responsibilities, duties or a change of 30 miles or more in her location of employment, or any material reduction in her compensation or benefits and Ms. Butsch voluntarily terminates her employment (a good reason resignation), she will be entitled to a lump sum payment of two times the sum of her base salary and her average annual bonus. If Ms. Butsch employment agreement is terminated without cause, her health insurance benefits will continue for an additional 12 months from the date of termination. If Ms. Butsch’s employment is terminated as a result of a change in control, or for a good reason resignation as a result of a change in control, these benefits will continue for an additional 24 months from the date of termination.
Following the termination of her employment, Ms. Butsch has agreed to refrain from certain activities that would be competitive with HCC and the Bank within the counties in California in which the Bank has located its headquarters or branch offices.
A copy of Ms. Butsch’s employment agreement is attached to this report as Exhibit 10.1 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) The following exhibit is included with this Report:
Exhibit 10.1 Margo G. Butsch Employment Agreement effective as of July 8, 2017
HERITAGE COMMERCE CORP ExhibitEX-10.1 2 a17-15657_1ex10d1.htm EX-10.1 Exhibit 10.1 EMPLOYMENT AGREEMENT This Employment Agreement (the “Agreement”) is entered into by and between HERITAGE COMMERCE CORP,…To view the full exhibit click here About HERITAGE COMMERCE CORP (NASDAQ:HTBK)
Heritage Commerce Corp is a bank holding company. The Company, through its subsidiary Heritage Bank of Commerce (the Bank), provides a range of banking services. The Bank is a California state-chartered multi-community independent bank that offers a range of commercial banking services to small and medium-sized businesses and their owners, managers and employees. The Company offers a multitude of other products and services to complement its lending and deposit services. These include cashier’s checks, traveler’s checks, bank-by-mail, automated teller machines (ATMs), night depositories, safe deposit boxes, direct deposit, automated payroll services, electronic funds transfers, online banking, online bill pay, homeowner association services and other customary banking services. In addition to the traditional financial services offered, the Bank offers remote deposit capture, automated clearing house origination, electronic data interchange and check imaging.
