EX-10.1



 Exhibit 10.1 

WESTERN NEW ENGLAND BANCORP, INC. 

2014 OMNIBUS INCENTIVE PLAN 

LONG-TERM INCENTIVE AND RETENTION EQUITY AWARD AGREEMENT 

Western New England Bancorp, Inc. (the “Company”), hereby grants shares of Common Stock of the Company, $.01 par value
per share (the “Shares”), to the individual named below as the Grantee, subject to the terms and conditions set forth in this cover sheet, in the attached Employee Long Term Incentive and Retention Equity Award Agreement
(together, the “Agreement”) and in the Company’s 2014 Omnibus Incentive Plan (the “Plan”). 
 Grant
Date:
                                        

 Name of Grantee:
                                        

 Number of Retention Shares:
                       
 Target Number
of Performance Shares:                      

Retention Period: January 1, 2017 to December 31, 2019 

Performance Period: January 1, 2017 to December 31, 2019 

By your signature below, you agree to all of the terms and conditions described in the Agreement and in the Plan, a copy of which is
also attached. You acknowledge that you have carefully reviewed the Plan and agree that the Plan will control in the event any provision of this Agreement should appear to be inconsistent with the Plan. 

 

							
	 Grantee:
	  	  
	  	 Date:
	 	  

		  	 (Signature)
	  		 	
				
	 Company:
	  	  
	  	 Date:
	 	  

		  	 (Signature)
	  		 	
				
	Name:	  	  
	  		 	
				
	Title:	  	  
	  		 	

 Attachment 

This is not a share certificate or a negotiable instrument. 

  
 1 








 WESTERN NEW ENGLAND BANCORP, INC. 

2014 OMNIBUS INCENTIVE PLAN 

LONG-TERM INCENTIVE AND RETENTION EQUITY AWARD AGREEMENT 
  

			
	Restricted Stock	  	This grant consists of an award of time-based restricted shares, subject to the vesting conditions described below (the “Retention Shares”) and an award of performance-based restricted shares, subject to the
vesting conditions described below (the “Performance Shares”). The Retention Shares and the Performance Shares are referred to together as the “Restricted Stock.” The purchase price for the Restricted
Stock is deemed paid by your services to the Company.
		
	Transferability	  	Until the Restricted Stock is vested, it may not be transferred, assigned, pledged or hypothecated, whether by operation of law or otherwise, nor may the Restricted Stock be made subject to execution, attachment or similar
process.
		
	Number and Vesting of Retention Shares	  	 The number of Retention Shares is set forth on the cover sheet and will be equal to half the total number of shares of Common Stock that
comprise the grant of Restricted Stock. The Retention Shares are subject to time-based vesting conditions.
  

Your Retention Shares will be subject to forfeiture if your Service terminates prior to the applicable Retention Vesting Date (as set forth on Exhibit A
to this Agreement), except as provided in this Agreement.

		
	Number and Vesting of Performance Shares	  	 The Performance Shares are subject to the achievement of the Performance Factor described in Exhibit B to this Agreement. Following
the end of the Performance Period, as set forth on the cover sheet, the Committee will determine the level of achievement of the Performance Factors and will determine the number of Performance Shares in which you will vest based on such achievement
(which may be greater than or less than the Target Number of Performance Shares, as set forth on the cover sheet).
  

Your Performance Shares will be subject to forfeiture if your Service terminates prior to the Performance Vesting Date set forth in Exhibit B to this
Agreement, except as provided in this Agreement.

		
	Evidence of Issuance	  	The issuance of the shares of Common Stock upon the grant of Restricted Stock pursuant to this Agreement will be evidenced in such a manner as the Company, in its discretion, deems appropriate, including, without limitation, book
entry, registration or issuance of one or more stock certificates, with any unvested Restricted Stock bearing the appropriate restrictions imposed by this Agreement. As your interest in the Restricted Stock vests, the recordation of the number of
Restricted Stock attributable to you will be appropriately modified if necessary.


  
 2 









			
		
	Vesting and Forfeiture upon Termination of Employment	  	 Death/Disability. If your Service terminates prior to the end of the Retention Period (as defined on the cover sheet) because
of your death or Disability (as defined below), then 100% of the unvested Retention Shares (as defined on the cover sheet) will vest on the effective date of your termination. If your Service terminates prior to the end of the Performance
Period (as defined on the cover sheet) because of your death or Disability (as defined below), then the Target Number of Performance Shares will vest on the effective date of your termination.

 
 Other Termination of Employment. If, before the end of the Retention Period, you
incur a termination of employment for any reason other than those specified above, whether voluntary or involuntary and prior to a Change in Control, your unvested Retention Shares shall be automatically forfeited upon such termination of Service
and neither the Company nor any Affiliate shall have any further obligations to you under this Agreement. If, before the end of the Performance Period, you incur a termination of employment for any reason other than those specified above, whether
voluntary or involuntary and prior to a Change in Control, your Performance Shares shall be automatically forfeited upon such termination of Service and neither the Company nor any Affiliate shall have any further obligations to you under this
Agreement.

		
	Definition of Disability	  	For purposes of this Agreement, “Disability” means, as determined by the Committee and unless otherwise provided in an applicable agreement with the Company, the Bank, or an Affiliate, your inability to
perform each of the essential duties of your position by reason of a medically determinable physical or mental impairment which is potentially permanent in character or which can be expected to last for a continuous period of not less than twelve
(12) months.
		
	Change in Control	  	 If, within twelve months following the effective time of a Change in Control (as defined in the Plan), your employment is terminated by the
Company without Cause or you voluntarily terminate employment for Good Reason (as defined below), and such termination occurs prior to the end of the Retention Period or the Performance Period, then 100% of the unvested Retention Shares and the
Target Number of Performance Shares, respectively, will vest on the date of your termination.
  

For purposes of this Agreement, “Cause” means, unless otherwise provided in an applicable agreement with the Company, the Bank, or an
Affiliate, your (a) personal dishonesty, (b) incompetence, (c) willful misconduct, (d) breach of fiduciary duties involving personal profit, (e) intentional failure to perform stated duties, or (f) willful violation of any
law, rule, or regulation (other than traffic violations or similar offenses) or final cease-and-desist order. Any determination by the Committee whether an event
constituting Cause shall have occurred shall be final, binding, and conclusive.



  
 3 









			
		  	  
 For purposes of this Agreement, “Good Reason”
means, unless otherwise provided in an applicable agreement with the Company, the Bank, or an Affiliate, the occurrence of either of the following events, without your express written consent: (A) a material diminution in your authority,
duties, or responsibilities; or (B) a change in your principal place of employment to a place that is not the principal executive office of the Company, or a relocation of the Company’s principal executive office to a location that is both
more than twenty-five (25) miles away from your principal residence and more than twenty-five (25) miles away from the location of the Company’s principal executive office at the time of this Agreement. Notwithstanding the foregoing,
a resignation will not be considered to have been on account of Good Reason unless: (1) you provide the Company not less than 30 days’ advance notice in writing within 90 days of the initial occurrence of the condition that is the basis
for such Good Reason and the Company does not correct the condition in the 30-day period; and (2) you resign by no later than 60 days after the Company’s time period for correcting the condition has
expired.

		
	Leaves of Absence	  	 For purposes of this Agreement, your Service does not terminate when you go on a bona fide employee leave of absence that was approved by the
Company, the Bank, or any Affiliate in writing, if the terms of the leave provide for continued Service crediting, or when continued Service crediting is required by applicable law. However, your Service will be treated as terminating ninety
(90) days after you went on employee leave, unless your right to return to active work is guaranteed by law or by a contract. Your Service terminates in any event when the approved leave ends unless you immediately return to active employee
work.
  
 The Committee determines, in its sole discretion, which leaves count for this
purpose and when your Service terminates for all purposes under the Plan.

		
	Withholding Taxes	  	You agree, as a condition of this Grant, that you will make acceptable arrangements to pay any withholding or other taxes that may be due as a result of the payment of dividends or the vesting of Stock acquired under this Grant. In
the event that the Company, the Bank, or any Affiliate determines that any federal, state, local, or foreign tax or withholding payment is required relating to the payment of dividends or the vesting of shares arising from this Grant, the Company,
the Bank, or any Affiliate shall have the right to require such payments from you, or withhold such amounts from other payments due to you from the Company, the Bank, or any Affiliate. To satisfy this withholding obligation, the Company may provide
you with the opportunity, in its discretion, to have the Company withhold shares of Stock otherwise issuable to you or by delivering to the Company shares of Stock already owned by you. If the Company provides you with the foregoing opportunity and
you fail to make an election to do either, the Company


  
 4 









			
		  	may determine which method to use, including by withholding shares of Stock otherwise issuable to you. The shares of Stock so delivered or withheld must have an aggregate Fair Market Value equal to the withholding obligation and may
not be subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements.
		
	Retention Rights	  	This Agreement does not give you the right to be retained by the Company (or any Affiliates) in any capacity. The Company (and any Affiliate) reserves the right to terminate your Service at any time and for any reason.
		
	Stockholder Rights	  	You have the right to vote the Retention Shares and to receive any dividends declared or paid on such Retention Shares. Any distributions you receive as a result of any stock split, dividend, combination of Shares or other similar
transaction will be deemed to be a part of the Retention Shares and subject to the same conditions and restrictions applicable thereto. Except as described in the Plan, no adjustments are made for dividends or other rights if the applicable record
date occurs before an appropriate book entry is made (or your share certificate is issued). The Company may in its sole discretion require any dividends paid on unvested Retention Shares to be reinvested in Shares, which the Company may in its sole
discretion deem to be a part of the Retention Shares and subject to the same conditions and restrictions applicable to the Retention Shares. You do not have any of the rights of a stockholder with respect to the Performance Shares unless and until
any Performance Shares in which you vest have been delivered to you.
		
	Forfeiture of Rights	  	If you should take actions in violation or breach of or in conflict with (i) any employment agreement, (ii) any non-competition agreement, (iii) any agreement prohibiting
solicitation of employees or clients of the Company, the Bank, or any Affiliate, (iv) any confidentiality obligation with respect to the Company, the Bank, or any Affiliate, (v) any Company or Bank policy or procedure, (vi) any other
agreement, or (vii) any other obligation between you and the Company, the Bank, or any Affiliate, the Company has the right to cause an immediate forfeiture of your unvested Restricted Stock, and with respect to those shares of Restricted Stock
vesting during the period commencing twelve (12) months prior to your termination of Service with the Company due to taking actions in violation or breach of or in conflict with the aforementioned agreements, policies, or procedures, the right
to cause a forfeiture of those vested shares of Stock.
		
	Recoupment	  	This Grant is subject to mandatory repayment by you to the Company to the extent you are or in the future become subject to (i) any Company or Bank “clawback” or recoupment policy or (ii) any law, rule, or
regulation that requires the repayment by you to the Company of compensation paid by the Company to you in the event that you fail to comply with, or violate, the terms or requirements of such policy or law, rule, or
regulation.


  
 5 









			
		  	  
 If the Company is required to prepare an accounting restatement due to
the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws and you knowingly engaged in the misconduct, were grossly negligent in engaging in the misconduct, knowingly
failed to prevent the misconduct, or were grossly negligent in failing to prevent the misconduct, you will reimburse the Company the amount of any payment in settlement of this Grant earned or accrued during the twelve (12)-month period following
the first public issuance or filing with the Securities and Exchange Commission (whichever first occurred) of the financial document that contained such material noncompliance.

		
	Adjustments	  	In the event of a stock split, a dividend or a similar change in the Shares, the number of Shares covered by this grant may be adjusted (and rounded down to the nearest whole number) pursuant to the Plan.
		
	Legends	  	 All share certificates representing the Stock issued in connection with this Grant shall, where applicable, have endorsed thereon the
following legend:
  
 “THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
CERTAIN RESTRICTIONS ON TRANSFER SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR HIS OR HER PREDECESSOR IN INTEREST. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON
WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY THE HOLDER OF RECORD OF THE SHARES REPRESENTED BY THIS CERTIFICATE.”

		
	Applicable Law	  	This Agreement will be interpreted and enforced under the laws of the Commonwealth of Massachusetts, other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this
Agreement to the substantive law of another jurisdiction.
		
	Other Agreements	  	You agree, as a condition of this grant, that you will execute such documents as necessary to become a party to any stockholder agreement or voting trust as the Company may require.
		
	Data Privacy	  	 To administer the Plan, the Company may process personal data about you. Such data includes, but is not limited to the information provided
in this Agreement and any changes thereto, other appropriate personal and financial data about you such as home address and business addresses and other contact information, and any other information that might be deemed appropriate by the Company
to facilitate the administration of the Plan.
  
 By accepting this grant, you give
explicit consent to the Company to process any such personal data. You also give explicit consent to the Company to transfer any such personal data outside the country in which you work, including, with respect to
non-U.S. resident grantees, to the United States, to transferees who will include the Company and other persons who are designated by the Company to administer the
Plan.



  
 6 









			
		
	Consent to Electronic Delivery	  	The Company may choose to deliver certain statutory materials relating to the Plan in electronic form. By accepting this grant, you agree that the Company may deliver the Plan prospectus and the Company’s annual report to you
in an electronic format. If at any time you would prefer to receive paper copies of these documents, as you are entitled to, the Company would be pleased to provide copies. Please contact the Secretary of the Company to request paper copies of these
documents.
		
	The Plan	  	 The text of the Plan is incorporated in this Agreement by reference.
  

Certain capitalized terms used in this Agreement are defined in the Plan, and have the meaning set forth in the Plan.

 
 This Agreement and the Plan constitute the entire understanding between you and the
Company regarding this grant of Restricted Stock. Any prior agreements, commitments or negotiations concerning this grant are superseded.

		
	Code Section 409A	  	The Grant is intended to be exempt from, or to comply with, Code Section 409A to the extent subject thereto, and, accordingly, to the maximum extent permitted, this Agreement will be interpreted and administered to be in compliance
with Code Section 409A. Notwithstanding anything to the contrary in the Plan or this Agreement, neither the Company, the Bank, their Affiliates, the Board, nor the Committee will have any obligation to take any action to prevent the assessment of
any excise tax or penalty on you under Code Section 409A and neither the Company, the Bank, their Affiliates, the Board, nor the Committee will have any liability to you for such tax or penalty.

 By signing this Agreement, you agree to all of the terms and conditions described in this Agreement and
in the Plan. 

  
 7 








 EXHIBIT A 

LONG-TERM INCENTIVE AND RETENTION EQUITY AWARD AGREEMENT 

NUMBER AND VESTING OF RETENTION SHARES 

The Retention Shares are subject to the Time-Based Vesting Requirements set forth below. 

Time-Based Vesting Requirements: 
 Except as
otherwise described in the Agreement, your Retention Shares will vest as follows: 
  

			
	Retention Vesting Date	  	Vesting Percentage
		
	December 31, 2017	  	33%
		
	December 31, 2018	  	33%
		
	December 31, 2019	  	34%

 The resulting aggregate number of vested Retention Shares will be rounded down to the nearest whole number as to each
Retention Vesting Date, and you cannot vest in more than the number of Retention Shares set forth on the cover sheet. 

  
 8 








 EXHIBIT B 

LONG-TERM INCENTIVE AND RETENTION EQUITY AWARD AGREEMENT 

NUMBER AND VESTING OF PERFORMANCE SHARES 

The Performance Shares are subject to both the Performance-Based Vesting Requirements and Time-Based Vesting Requirements set forth below. 

Performance-Based Vesting Requirements: 
 The
Committee will determine the number of Performance Shares in which you will vest based on the Company’s achievement of Return on Equity (“ROE”) goals during the period beginning on January 1, 2017 and ending on
December 31, 2019 (the “Performance Period”). The Company’s ROE will be measured over three periods within the Performance Period, as follows: 

 

									
	 	 	 	    	ROE Targets
	 	 		 	 
	 	 	 	    	Threshold	    	Target	    	Maximum
	 	 		 	 
	Period 1	 	1/1/17 – 12/31/17	    	6.0	    	6.6	    	7.3
	 	 		 	 
	Period 2	 	1/1/17 – 12/31/18	    	6.3	    	7.0	    	7.6
	 	 		 	 
	Period 3	 	1/1/17 – 12/31/19	    	6.5	    	7.2	    	7.9

 Following the end of each of Period 1, Period 2 and Period 3, but no later than March 15 following the end of such
period, the Committee will determine and certify the ROE for the Company based on data available to the public. Then, the Committee will multiply the ROE Performance Factor that corresponds to the level of ROE the Company has achieved, as determined
under the table below, by one-third of the Target Number of Performance Shares (as set forth on the cover sheet), to determine the number of Performance Shares that will be earned for each of Period 1, Period
2 and Period 3. 
  

			
	Level of ROE Achieved	  	ROE Performance Factor (%)
		
	Less than Threshold	  	0%    
		
	Threshold	  	50%  
		
	Target	  	100%
		
	Maximum	  	150%


  
 9 








 Notwithstanding anything to the contrary in the Agreement or this Exhibit B, no (0%) Performance Shares
will be earned for a period if Threshold ROE is not attained.    If the ROE for the any period falls between threshold and target performance levels, or between target and stretch performance levels, the ROE Performance Factor
will be interpolated on a linear slope. 
 Following the end of the Performance Period, but no later than March 15, 2020, you will vest in the number
of Performance Shares equal to the sum of the number of Performance Shares earned in each of Period 1, Period 2 and Period 3. In no event may you vest in a number of Performance Shares greater than 150% of the Target Number of Performance Shares.

 Time-Based Vesting Requirements: 
 In order
to vest in the Performance Shares that you earn in accordance with this Exhibit B, you must remain in service with the Company or an Affiliate through the end of the Performance Period. 

  
 10