10.15 Employment Agreement between Fidelity D & D Bancorp, Inc., The Fidelity Deposit and Discount Bank and Ruth Turkington dated as of April 20, 2023

Exhibit 10.15

EMPLOYMENT AGREEMENT

THIS AGREEMENT is made as of the 20^th day of April 2023, between Fidelity Deposit and Discount Bank (“Bank”), and by extension its parent, Fidelity D&D Bancorp, Inc. (“Corporation”) and Ruth Turkington (“Executive”), an individual presently residing at 98 Gordon Road, Essex Fells, NJ 07021, to be effective as of Executive’s first day of work with Bank.

WITNESSETH:

WHEREAS, the Corporation is a bank holding company;

WHEREAS, the Bank is a subsidiary of Corporation;

WHEREAS, the Bank wishes to employ Executive as Executive Vice President and Chief Consumer Banking Officer in accordance with the terms and conditions set forth herein;

WHEREAS, Executive wishes to serve the Bank, and the Corporation, in accordance with the terms and conditions herein; and

WHEREAS, Executive is not a party nor subject to any employment, noncompete, non-solicitation or restrictive covenant agreements, or any other restrictions or agreements that would hinder or limit her ability to fully perform her duties hereunder, except as identified on Schedule I attached hereto and deemed an integral part hereof.

AGREEMENT:

NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

(a)    This Agreement shall be for an initial three (3) year period (the “Initial Term”), commencing on the first day of Executive’s employment (“the Effective Date of this Agreement”) and ending three (3) years later, unless terminated earlier pursuant to the terms of this Agreement. On the first anniversary date of the Effective Date, unless Executive’s employment was previously terminated or unless at least ninety (90) calendar days before that anniversary date either party to this Agreement (the Bank or the employee) gave written notice of its termination to the other parties, Executive’s employment hereunder shall be deemed to continue through the remainder of the Initial Term (i.e., the final two years). On the second anniversary of the Effective Date, unless Executive’s employment was previously terminated or unless at least ninety (90) calendar days before that anniversary date any party to this Agreement gave written notice of its termination to the other parties, the Employment Period shall be deemed to continue through the third and final year of the Initial Term plus two additional years, i.e., a new three (3) year period. Rolling three-year employment terms will thereafter continue to apply effective on each subsequent anniversary date. References in this Agreement, and for purposes of interpreting it, to “Employment Period” shall mean the then-applicable remaining term of Executive’s employment under this Agreement, including any extension from its Initial Term applicable as a result of applying the rolling three-year period.

(b)    Notwithstanding the provisions of Section 4(a) of this Agreement, this Agreement shall terminate automatically for Cause (as defined herein) upon written notice from the President/CEO or the Board of Directors of the Corporation or the Bank to Executive. As used in this Agreement, “Cause” shall mean any of the following:

(i)    Executive’s conviction of or plea of guilty or nolo contendere to a felony, a crime of fraud, theft, embezzlement, perjury, misrepresentation, falsehood or a crime involving moral turpitude, unlawful use of alcohol, controlled substances or other drugs, or the actual incarceration of Executive;

(ii)    Executive’s failure to follow the good faith lawful instructions of the President/CEO of the Bank or the Corporation with respect to their operations;

(iii)    Executive’s malfeasance, or failure to substantially perform any of Executive’s material duties to the Bank or Corporation, other than a failure resulting from Executive’s incapacity because of physical or mental illness, as provided in subsection (d) of this Section 4;

(iv)    Executive’s gross misconduct or material violation of any of the provisions of this Agreement;

(v)    dishonesty, disloyalty or gross negligence of the Executive in the performance of Executive’s duties;

(vi)    Executive’s removal or prohibition from being an institutional-affiliated party by a final order of an appropriate federal banking agency pursuant to Section 8(e) or 8(g) of the Federal Deposit Insurance Act, by the Pennsylvania Department of Banking or by any court or other state or federal regulatory agency with legal authority to act pursuant to law, or by correspondence from the Bank’s regulators instructing the Bank to terminate or remove the Executive;

(vii)     conduct by the Executive which, as determined by an affirmative vote of seventy-five percent (75%) of the disinterested members of the Board of Directors of the Corporation or the Bank upon consideration of any recommendation by the President/CEO of the Bank provided Executive is disinterested, brings or may be reasonably expected to bring public disrepute or discredit to the Corporation or the Bank and/or which results in or may be reasonably expected to result in material financial, reputational or other harm to the Corporation or the Bank generally or with any of their respective customers, depositors, business associates, Executives, contractors or vendors;

(viii)    Executive's breach of fiduciary duty owed to the Corporation, Bank or customers or depositors of Bank, or done for or with the result of, or involving personal profit;

(ix)    unlawful or improper, as determined by an affirmative vote of seventy-five percent (75%) of the disinterested members of the Board of Directors of the Corporation or the Bank upon consideration of any recommendation by the President/CEO of the Bank provided he is disinterested, harassment by Executive against any employee, customer, business associate, contractor or vendor of the Corporation or the Bank, or other, similar conduct violative of the law or of Corporation’s or Bank’s written policies or rules;

(x)    the willful violation by the Executive of the provisions of Sections 9, 10, or 11 hereof;

(xi)    the violation of any law, rule or regulation governing banks or bank officers or any Bank or Corporation policy, or receipt of any cease and desist order issued against Executive or Bank or Corporation by a bank regulatory authority or a court which has proper jurisdiction because of an action or failure to act by, or conduct of, Executive;

(xii)    theft or abuse by Executive of the Corporation’s or the Bank’s property or the property of the Corporation’s or the Bank’s customers, employees, contractors, vendors, or business associates;

(xiii)    any act of fraud, misappropriation or personal dishonesty;

(xiv)     insubordination, as determined by an affirmative vote of seventy-five percent (75%) of the disinterested members of Board of Directors of the Corporation upon consideration of any recommendation by the President/CEO provided he is disinterested;

(xv)    the existence of any material conflict between the interests of the Corporation or the Bank and the Executive that is not immediately disclosed in writing by the Executive to the Corporation and the Bank when first known to Executive and approved in writing by the Boards of Directors of the Bank and the Corporation.

If this Agreement is terminated for Cause, all of Executive’s rights under this Agreement shall cease as of the effective date of such termination, except for the rights under Paragraph 20 hereof with respect to arbitration.

(c)    Notwithstanding the provisions of Section 4(a) of this Agreement, this Agreement shall terminate automatically upon Executive’s voluntary termination of employment for Good Reason. The term “Good Reason” shall mean (i) the assignment of substantial duties and responsibilities materially inconsistent with Executive’s status as an Executive Vice President of the Bank, unless Executive voluntarily consents to such assignment/s; (ii) an involuntary reassignment which requires Executive to move Executive’s principal residence or Executive’s office more than fifty (50) miles from the Bank’s principal executive office immediately prior to this Agreement, (iii) any involuntary material reduction (i.e., defined for this purpose as a reduction of five percent (5%) or more) in Executive’s Annual Base Salary as in effect on the Effective Date of this Agreement or as the same may be increased from time to time, unless such reduction is the result of a national financial depression or recession or national or bank emergency or such reduction is part of a reduction applicable to all employees or all executive employees of the Bank, or (iv) any failure of the Bank to provide Executive with benefits at least as favorable as or materially comparable to those enjoyed by the Executive on the Effective Date of this Agreement or as same are thereafter increased from time to time, under any of the pension, life insurance, medical, health and accident, disability or other employee plans of the Bank, or the taking of any action that would materially reduce any of such benefits unless such reduction is part of a reduction applicable to all employees of Bank, or all executive employees of Bank.

Executive shall within ninety (90) days of the occurrence of any of the foregoing events, provide notice to the Bank of the existence of the condition and provide the Bank thirty (30) days in which to cure such condition. In the event that the Bank does not cure the condition within thirty (30) days of such notice, Executive may resign from employment for Good Reason by delivering written notice (“Notice of Termination”) to the Bank.

If such termination occurs for Good Reason and such termination constitutes a Separation of Service as defined by Internal Revenue Code of 1986, as amended (“Code”) Section 409A (“Separation of Service”), then the Bank shall pay Executive a lump sum amount equal to 2.0 times the Executive’s Annual Base Salary, minus applicable taxes and withholdings, payable within thirty (30) days of Executive’s Separation of Service. In addition, for a period of two (2) years from the date of Separation of Service, or until Executive secures substantially similar benefits through other employment, whichever shall first occur, Executive shall receive a continuation of all life, disability, medical insurance and other normal health and welfare benefits in effect with respect to Executive during the two (2) years prior to Executive’s termination of employment, or, if the Bank cannot provide such benefits because Executive is no longer an employee, the Bank shall reimburse Executive in an amount equal to the monthly premium paid by Executive to obtain substantially similar employee benefits which Executive enjoyed prior to termination, subject to Code Section 409A if applicable.

(d)    Notwithstanding the provisions of Section 4(a) of this Agreement, this Agreement shall terminate automatically upon Executive’s Disability and Executive’s rights under this Agreement shall cease as of the date of such termination; provided, however, that Executive shall nevertheless be entitled to receive any amount payable under any disability plan of the Bank for which Executive is eligible. Disability shall have the meaning provided in Code Section 409A and the regulations promulgated thereunder.

(e)    In the event that Executive terminates Executive’s employment without Good Reason as defined in Section 4(c), all of Executive’s rights under this Agreement shall cease as of the effective date of such termination, except for the rights under Paragraph 20 hereof with respect to arbitration.

(f)    Upon the expiration of the Employment Period and this Agreement, all of Executive’s rights under this Agreement shall cease; however, the provisions of Paragraphs 9 and 10 shall survive the expiration of the Employment Period and the termination of this Agreement.

(g)    Executive agrees that in the event Executive’s employment under this Agreement is terminated, Executive shall resign as a director of the Bank, and any related entity, or affiliate or subsidiary thereof, if Executive is then serving as a director of any of such entities.

5. Employment Period Compensation.

(a)    Annual Base Salary. For services performed by Executive under this Agreement, the Bank shall pay Executive an Annual Base Salary at the rate of $270,000.00 per year, minus applicable withholdings and deductions, payable at the same times and in the same manner as annual base salaries are payable to other executive employees of the Bank. Executive will be eligible for an increase in salary beginning March/April of 2024. The Bank may, from time to time, increase Executive’s Annual Base Salary, or, in the event of, or as a result of, a national financial depression or recession, or a national or bank emergency, or a reduction applicable to all Bank employees or all executive employees of Bank, reduce Executive’s Annual Base Salary, and any and all such increases or reductions shall be deemed to constitute amendments to this Section 5(a) to reflect the increased or reduced amounts, effective as of the date established for such increases or reductions by the Board of Directors of the Bank or any committee of such Board.

(b)    Bonus. For services performed by Executive under this Agreement, Bank may from time-‐to-time, pursuant to an incentive plan for senior management that Bank has in place at that time, pay a bonus or bonuses to Executive as the Bank, in its sole discretion, deems appropriate. The payment of any such bonuses shall not reduce or otherwise affect any other obligation of the Bank to Executive provided for in this Agreement.

(c)    Annual Equity Grant. Executive will be included in Bank’s executive plan, in accordance with Bank’s normal practice relative to such awards. Such awards shall not reduce or otherwise affect any other obligation of the Bank to Executive provided for in this Agreement.

(d)    SERP / Life Insurance. As consideration from Bank for Executive’s voluntary agreement and consent to enter into this Agreement, and for the various promises and covenants Executive has made and the performances Executive has agreed to undertake under and pursuant to this Agreement, Bank will include Executive in (1) a Supplemental Executive Retirement Plan (SERP) after completing one year of employment, and (2) Bank Owned Life Insurance (BOLI) in an amount equal to three (3) times Executive’s annual base salary, to take effect within 60 days of Executive’s first day of employment. Executive will be eligible to participate in each named benefit, under the specific rules of same.

(e)    Paid Time-Off. During the term of this Agreement, Executive shall be entitled to paid time-off in accordance with the manner and amount provided under the paid time-off plan currently in effect.

(f)    Employee Benefit Plans. During the term of this Agreement, Executive shall be entitled to participate in or receive the benefits of any employee benefit plan currently in effect at the Bank, including but not limited to health insurance and Bank’s 401(k) retirement savings plan, subject to the terms of said plan, until such time that the Board of Directors of the Bank authorizes a change in such benefits. The Bank shall not make any changes in such plans or benefits which would adversely affect Executive’s rights or benefits thereunder, unless such change occurs pursuant to a program applicable to all executive officers of the Bank and does not result in a proportionately greater adverse change in the rights of or benefits to Executive as compared with any other executive officer of the Bank. Nothing paid to Executive under any plan or arrangement presently in effect or made available in the future shall be deemed to be in lieu of the salary payable to Executive pursuant to Section 5(a) hereof.

(g)    Business Expenses. During the term of this Agreement, Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by Executive, which are properly accounted for, in accordance with the policies and procedures established by the Board of Directors of the Bank for its executive officers.

(h)    Auto Allowance. Executive will be eligible for a Six Thousand Dollar ($6,000) per year automobile allowance, paid biweekly in accordance with Bank’s regular practice applicable to such payments.

(i)    Memberships. Bank or Corporation shall pay the periodic (e.g., annual, quarterly, monthly) dues and monthly business development expenses for Executive in connection with membership to one or more clubs or other organizations which the parties mutually determine is appropriate to Executive’s role with Bank.

6.         Termination of Employment Following Change in Control.

(a)    If a Change in Control (as defined in Section 6(b) of this Agreement) shall occur and Executive experiences an involuntary separation of service as defined in Code Section 409A (“Separation of Service”) without Cause within one year of the Change of Control, then the provisions of Section 7 of this Agreement shall apply.

(b)    As used in this Agreement, “Change in Control” shall mean the change in ownership or effective control of the Corporation as further defined by Treasury Regulation §1.409a-3(i)(5). A change in control of the Bank shall not constitute a change in control under this Agreement.

7.         Rights in Event of Termination Following a Change in Control.

(a)    In the event that Executive is involuntarily terminated without Cause after a Change in Control (as defined in Section 6(b) of this Agreement) and such termination of employment constitutes a Separation of Service, Executive shall be entitled to receive the compensation and benefits set forth below:

(i) upon the Change of Control, the Bank shall pay Executive a lump sum amount equal to 2.0 times the Executive’s Annual Base Salary, minus applicable taxes and withholdings, payable within thirty (30) days of Executive’s Separation of Service. In addition, for a period of two (2) years from the date of Separation of Service, or until Executive secures substantially similar benefits through other employment, whichever shall first occur, Executive shall receive a continuation of all life, disability, medical insurance and other normal health and welfare benefits in effect with respect to Executive during the two (2) years prior to Executive’s termination of employment, or, if the Bank cannot provide such benefits because Executive is no longer an employee, the Bank shall reimburse Executive in an amount equal to the monthly premium paid by Executive to obtain substantially similar employee benefits which Executive enjoyed prior to termination, subject to Code Section 409A if applicable.

(b)    Executive shall not be required to mitigate the amount of any payment provided for in this Section 7 by seeking other employment or otherwise. Unless otherwise agreed to in writing, the amount of payment or the benefit provided for in this Section 7 shall not be reduced by any compensation earned by Executive as the result of employment by another employer or by reason of Executive’s receipt of or right to receive any retirement or other benefits after the date of termination of employment or otherwise.

8.         Rights in Event of Termination of Employment Absent Change in Control.

(a) In the event that Executive’s employment is involuntarily terminated by the Bank without Cause and no Change in Control shall have occurred at the date of such termination and such termination constitutes a Separation of Service, and upon such Separation of Service, the Bank shall pay Executive a lump sum amount equal to 2.0 times the Executive’s Annual Base Salary, minus applicable taxes and withholdings, payable within thirty (30) days of Executive’s Separation of Service. In addition, for a period of two (2) years from the date of Separation of Service, or until Executive secures substantially similar benefits through other employment, whichever shall first occur, Executive shall receive a continuation of all life, disability, medical insurance and other normal health and welfare benefits in effect with respect to Executive during the two (2) years prior to Executive’s termination of employment, or, if the Bank cannot provide such benefits because Executive is no longer an employee, the Bank shall reimburse Executive in an amount equal to the monthly premium paid by Executive to obtain substantially similar employee benefits which Executive enjoyed prior to termination, subject to Code Section 409A if applicable.

(b) Executive shall not be required to mitigate the amount of any payment provided for in this Section 8 by seeking other employment or otherwise. Unless otherwise agreed to in writing, the amount of payment or the benefit provided for in this Section 8 shall not be reduced by any compensation earned by Executive as the result of employment by another employer or by reason of Executive’s receipt of or right to receive any retirement or other benefits after the date of termination of employment or otherwise.

9.         Covenant Not to Compete; Non-Solicitation.

(a)     Executive hereby acknowledges and recognizes the highly competitive nature of the business of the Corporation and the Bank and accordingly agrees that, during Executive’s employment and for two years following the date of Executive’s termination, regardless of the reason therefor, Executive shall not, except as otherwise permitted in writing by the Bank:

(i)    in any county in which, at any time during the Employment Period or as of the date of Executive’s termination, a branch, office or other facility of the Corporation or the Bank is located or in any county geographically contiguous to such county (“Non-Competition Area”), be engaged, directly or indirectly, either for Executive’s own account or as agent, consultant, employee, partner, officer, director, proprietor, investor (except as an investor owning less than 5% of the stock of a publicly owned company) or otherwise of any person, firm, corporation or enterprise engaged in (1) the banking (including bank holding company) industry or (2) any aspect of the financial services industry which is directly associated with the banking industry, and is performed by the Bank and, more generally, the Corporation at the time Executive is employed by it; provided that at all times while Executive is employed by the Bank, if any of Executive clients who are not then-current customers of the Bank become customers or active prospects of the Bank, Executive will promptly disclose to the Bank Executive’s pre-existing relationship with said customer or prospect;

(ii)    directly or indirectly provide financial, management, operational or other assistance to any person, firm, corporation, or enterprise engaged in or providing services to (1) the banking (including bank holding company) or financial services industry as referenced in (i) above, or (2) any other activity in which the Corporation or the Bank or any of their subsidiaries are engaged during the Employment Period, in the Non-Competition Area;

(iii)    directly or indirectly solicit persons or entities who were customers or referral sources of the Corporation, the Bank or their subsidiaries within one (1) year of Executive’s termination of employment, to become a customer or referral source of a person or entity other than the Corporation, the Bank or their subsidiaries; or

(iv)    directly or indirectly solicit employees of the Corporation, the Bank or their subsidiaries who were employed within two (2) years of Executive’s termination of employment to work for anyone other than the Corporation, the Bank or their subsidiaries.

(b)         It is expressly understood and agreed that, although Executive and the Corporation and the Bank consider the restrictions contained in Section 9(a) hereof reasonable for the purpose of preserving for the Bank and the Corporation, and their respective subsidiaries and assigns, their good will and other proprietary rights, if a final judicial determination is made by a court having jurisdiction that the time or territory or any other restriction contained in Section 9(a) hereof is an unreasonable or otherwise unenforceable restriction against Executive, the provisions of Section 9(a) hereof shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such other extent as such court may judicially determine or indicate to be reasonable.

(c)         Executive’s unconditional agreement to fully comply with the restrictions set forth in Paragraph 9 (a), above, during and following termination of Executive’s employment by the Corporation and Bank regardless of reason, is in exchange for the Corporation and Bank entering into this written Agreement with Executive’s setting forth Executive’s new terms and conditions of Executive’s employment with Bank. Executive acknowledges that the consideration so provided to Executive by Bank in exchange for Executive’s acceptance of the terms of this Agreement, including, without limitation, the Competition Restrictions set forth in this Paragraph 9 (a), is good and sufficient, and is binding on Executive.

10.         (a)         Unauthorized Disclosure. During the term of Executive’s employment hereunder, or at any later time, Executive shall not, without the written consent of the President/CEO of Bank, President/CEO of the Corporation and the Boards of Directors of the Bank and the Corporation, or a person authorized thereby, knowingly disclose to any person, other than an employee of the Corporation or the Bank or a person to whom disclosure is reasonably necessary or appropriate in connection with the performance by the Executive of Executive’s duties as an executive of the Bank, any material confidential information obtained by Executive while in the employment of the Bank with respect to any of the Corporation’s and the Bank’s services, products, improvements, formulas, designs or styles, processes, customers, methods of business or any business practices the disclosure of which could be or will be damaging to the Corporation or the Bank; provided, however, that confidential information shall not include any information known generally to the public (other than as a result of unauthorized disclosure by the Executive or any person with the assistance, consent or direction of the Executive) or any information of a type not otherwise considered confidential by persons engaged in the same business or a business similar to that conducted by the Corporation and the Bank or any information that must be disclosed as required by law.

(b)    In compliance with the Defend Trade Secrets Act of 2016, Executive shall not be subject to criminal or civil liability under federal or state law for (1) directly or indirectly disclosing a trade secret, in confidence, to a federal, state or local government official, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law; or (2) disclosing a trade secret in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, if Executive files a lawsuit for retaliation against Company for reporting a suspected violation of law, Executive may disclose a trade secret to Executive’s attorney, and use the trade secret information in the court proceeding, if the Executive (1) files any document containing the trade secret under seal; and (2) does not disclose the trade secret, except pursuant to a court order.

(c)    Executive’s unconditional agreement to fully comply with the restrictions set forth in Paragraph 10 (a), above, during and following termination of Executive’s employment by the Bank regardless of reason, is in exchange for the Bank entering into this written Agreement with Executive setting forth Executive’s new terms and conditions of Executive’s employment with Bank. Executive acknowledges that the consideration so provided to Executive by Bank and Corporation in exchange for Executive’s acceptance of the terms of this Agreement, including, without limitation, the Unauthorized Disclosure provision set forth in this Paragraph 10 (a), is good and sufficient, and is binding on her.

11.         (a)         Work Made for Hire. Any work performed by the Executive under this Agreement should be considered a “Work Made for Hire” as the phrase is defined by the Copyright Act of 1976 and shall be owned by and for the express benefit of Bank and its subsidiaries and affiliates. In the event it should be established that such work does not qualify as a Work Made for Hire, the Executive agrees to and does hereby assign to Bank, and its affiliates and subsidiaries, all of Executive’s rights, title, and/or interest in such work product, including, but not limited to, all copyrights, patents, trademarks, and propriety rights.

(b)         Executive’s unconditional agreement to fully comply with the restrictions set forth in Paragraph 11 (a), above, during and following termination of Executive’s employment by the Bank regardless of reason, is in exchange for the Bank entering into this written Agreement with Executive setting forth the new terms and conditions of Executive’s employment with Bank. Executive acknowledges that the consideration so provided to Executive by Bank in exchange for Executive’s acceptance of the terms of this Agreement, including, without limitation, the Work for Hire provision set forth in this Paragraph 11 (a), is good and sufficient, and is binding on Executive.

25.          Headings. The section headings of this Agreement are for convenience only and shall not control or affect the meaning or construction or limit the scope or intent of any of the provisions of this Agreement.

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