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MVB Financial Corp. (OTCMKTS:MVBF) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

MVB Financial Corp. (OTCMKTS:MVBF) 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; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(e)
Employment Agreement
On June 19, 2017, MVB Financial Corp. (the “Company”) and MVB Bank, Inc. (the “Bank”) entered into a Third Addendum to Employment Agreement (the “Third Addendum”) and Fourth Addendum to Employment Agreement (the “Fourth Addendum” and, together with the Third Addendum, collectively referred to as “Addendums”) with H. Edward Dean, III (“Dean”). The Addendums further modify the Employment Agreement, effective December 20, 2012 (the “Employment Agreement”), among the Company, the Bank and Dean, to which Dean serves as the Chief Executive Officer of Potomac Mortgage Group, Inc., doing business as MVB Mortgage (“MVB Mortgage”).
The Third Addendum, which is effective as of June 1, 2017, (i) eliminated the ability of Dean to receive any compensation commission related to loan origination or loan-related commissions as previously described in Section 3(b) and Exhibit A of the Employment Agreement, (ii) modified the earn-out provisions set forth in Section 3(d)(iv) of the Employment Agreement to offset any amounts that may be received by Dean to this section for the period commencing on January 1, 2017 through December 31, 2017, by all loan-related commissions received from January 1 through May 31, 2017, and (iii) made certain modifications with respect to the definition of “Good Reason” set forth in section 5(b)(v).
The Fourth Addendum, which is effective as of June 15, 2017, (i) extended Dean’s term of employment through December 31, 2020, at which time employment shall cease unless otherwise agreed by the Company, the Bank and Dean, (ii) set Deans base compensation at an annual rate of $575,000, effective January 1, 2018, (iii) provides that, beginning January 1, 2018, Dean shall receive a monthly cash payment equal to 9% of MVB Mortgage’s pre-tax income, (iv) deleted, effective January 1, 2018, Section 3(d) of the Employment Agreement such that Dean shall no longer be entitled to the earnout payments described in Section 3(d) of Employment Agreement, (v) provides that Dean shall be issued in the future 100,000 stock options in the Company, vesting in four equal installments on each December 31st>from 2017 through 2020 and (vi) allows for Dean’s participation in the SERP (as defined and discussed below).
SERP
On June 19, 2017, the Company and MVB Mortgage approved a Supplemental Executive Retirement Plan (“SERP”), to which Dean is entitled to receive certain supplemental nonqualified retirement benefits. The SERP shall take effect on December 31, 2017 (the “Effective Date”).
Under the SERP, if Dean completes three years of continuous employment with MVB Mortgage prior to his retirement date (which shall be no earlier than the date he attains age 55), he will, upon retirement, be entitled to received $1.8 million (the “Retirement Benefit”), payable in 180 equal consecutive monthly installments of $10,000. In the event Dean is deceased prior to his retirement, the Retirement Benefit will fully vest and shall be payable to Dean’s beneficiary. Should become deceased after his retirement, the remaining balance of the Retirement Benefit will fully vest and become payable to Dean’s beneficiary. If Dean is terminated without Cause or due to Disability, or if Dean terminates his employment for Good Reason (as each such term is defined in the SERP), the Retirement Benefit shall immediately vest. If Dean is terminated for Cause, he will not be entitled to the Retirement Benefit.
to the SERP, Dean also entered into a Confidentiality, Non-Competition and Non-Solicitation Agreement, containing non-solicitation and non-competition covenants throughout the 24-month period following his employment termination.
The Company intends to file the Third Addendum, Fourth Addendum and SERP as exhibits to its next>regularly scheduled quarterly report on Form 10-Q to be filed with the U.S. Securities and Exchange Commission.
About MVB Financial Corp. (OTCMKTS:MVBF)
MVB Financial Corp. (MVB) is a financial holding company. Through its subsidiaries, MVB Bank, Inc. (the Bank), MVB Mortgage and MVB Insurance, LLC, the Company provides community banking, mortgage banking, insurance and wealth management services to individuals and corporate clients in the Mid-Atlantic region. It operates through four segments: commercial and retail banking, mortgage banking, financial holding company, and insurance services. The Bank offers its customers a range of products, such as checking accounts, negotiable order of withdrawal (NOW) accounts, money market and savings accounts, time certificates of deposit, commercial, installment, commercial real estate and residential real estate mortgage loans, debit cards, and safe deposit rental facilities. The Bank provides services through its walk-in offices, automated teller machines (ATMs), drive-in facilities, and Internet and telephone banking. The Bank also offers non-deposit investment products.
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