New Peoples Bankshares, Inc. (OTCMKTS:NWPP) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02.Departure of Directors or Certain Officers; Election of
Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers
Employment Agreement
On December 1, 2016, New Peoples Bankshares, Inc. (the Company),
and New Peoples Bank, Inc., (the Bank and, together with the
Company, New Peoples) entered into an Employment Agreement (the
Agreement) with C. Todd Asbury, New Peoples President and CEO.
The Agreement is effective as of December 1, 2016. The term of
the Agreement ends on December 1, 2019, unless earlier
terminated, and the Agreement automatically renews for successive
two year terms (unless terminated prior to the commencement of
the renewal term).
Under Mr. Asburys Agreement, he is entitled to an annual base
salary of $255,000 and an annual performance bonus, if any, in an
amount approved by New Peoples Board of Directors. Mr. Asbury is
also eligible to participate in any equity and/or other long-term
compensation programs established by the Company as well as
employee benefits, executive benefits, perquisites, reimbursement
of expenses and vacation as set forth in his Agreement.
The Agreement provides Mr. Asbury with severance benefits in the
event of termination of his employment under certain
circumstances and contain certain confidentiality and
noncompetition provisions.
The Agreement provides that the executives employment may be
terminated by the Company With Cause (as defined in the
Agreement) or without Cause, or by the executive for Good Reason
(as defined in the Agreement) or without Good Reason. The
executives employment may be terminated upon a determination that
the executive is disabled or automatically upon the executives
death. If an executives employment is terminated by the Company
for Cause or by the executive for Other than Good Reason, then
under his Agreement, the executive will be entitled to receive
any accrued but unpaid salary, bonus or other benefits or awards,
and expense reimbursement. The foregoing amounts are referred to
collectively as the Accrued Obligations. If an executives
employment is terminated by the Company without Cause or by the
executive for Good Reason, then, in addition to the Accrued
Obligations, the executive will be entitled under his Agreement
to receive the following: (i) if not connected to a Change in
Control (as defined in the Agreement), a severance payment equal
to two times the executives base salary and bonus; or (ii) if
within 24 months after a Change in Control, a severance payment
equal to 3 times the executives base salary and bonus unless the
Change in Control is a Sale of the Company (as defined in the
Agreement) in which case the severance payment is based on
certain percentages of the Companys book value received by the
Companys shareholders in the transaction.
The foregoing descriptions of the Agreement do not purport to be
complete and are qualified in their entirety to the full text of
the Agreement, a copy of which is filed herewith as Exhibit 10.1
and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) The following exhibit is filed with this Current Report to
Item 5.02:
| Exhibit No. | Exhibit Description | |
| 10.1 |
Employment Agreement between New Peoples Bankshares, Inc., New Peoples Bank, Inc., and C. Todd Asbury. |
About New Peoples Bankshares, Inc. (OTCMKTS:NWPP)
New Peoples Bankshares, Inc. is a Virginia bank holding company. The Company’s business is conducted primarily through New Peoples Bank, Inc. (the Bank), a Virginia banking corporation. The Bank has a division doing business as New Peoples Financial Services, which offers investment services through its broker dealer relationship with LPL Financial Services, Inc. NPB Insurance Services, Inc. is a subsidiary of the Bank and offers insurance services only. The Bank offers a range of short-to-medium term commercial, one- to four-family residential mortgages and personal loans. Its investment services include fixed income products, variable annuities, mutual funds, indexed certificates of deposit, individual retirement accounts, employee group benefit plans, college savings plans, financial planning, managed money accounts and estate planning. Its deposit products include demand deposit, interest-bearing demand deposit, savings deposit, and money market deposit accounts. New Peoples Bankshares, Inc. (OTCMKTS:NWPP) Recent Trading Information
New Peoples Bankshares, Inc. (OTCMKTS:NWPP) closed its last trading session 00.00 at 1.60 with 1,500 shares trading hands.