Source: http://corpdocs.msci.com/contracts/ceo_107441.html
Timestamp: 2017-09-20 00:08:12
Document Index: 294706454

Matched Legal Cases: ['§ 1', '§162', '§162', '§162', '§162', '§162', '§162', '§162', '§162', '§162', '§162', '§162']

EX-99.3 4 b54630ibexv99w3.htm EX-99.3 FIRST AMENDED & RESTATED EMPLOYMENT AGREEMENT
AGREEMENT originally dated and effective as of January 9, 2003 by and between Rockland Trust Company, a Massachusetts trust company (the “Company”), Independent Bank Corp., a Massachusetts corporation (“IBC”), and Christopher Oddleifson, of 69 Summer Street, Cohasset, Massachusetts (the “Executive”), is hereby amended and restated this 14th day of April, 2005.
Except as otherwise specifically provided herein, as compensation to the Executive for all services to be rendered by him in any capacity hereunder, the Company shall pay during the Term an annual base salary at the current rate of Four Hundred and Forty Thousand and no/100 Dollars ($440,000) per annum (“Base Salary”), payable no less frequently than biweekly. The Board may from time to time at its discretion review the compensation provisions of this Agreement and shall have the authority to pay an increased Base Salary, and/or bonus and/or other additional compensation to the Executive, but in no event shall any such compensation adjustment reduce the Base Salary below the rate hereinabove specified.
(F) Insurance. During the Term, the Executive shall participate in all insurance programs (medical, dental, surgical, hospital) adopted by the Company, including dependent coverage, to same extent as employees of the Company generally.
(i) If the Executive’s employment is terminated by the Company for Cause or if the Executive resigns from his employment for any reason other than death, disability (as defined in Section 5(E) hereof) or for Good Reason, as defined below in Section 5(A)(iii), prior to the expiration of the Term, the Executive shall have no right to receive compensation or other benefits for any period after such termination for Cause or resignation for any reason other than death, disability or for Good Reason, except as may be required by law and except that the Executive’s rights to exercise his stock options in the event his employment terminates shall be governed by the Independent Bank Corp. Incentive Stock Option Plan and/or any other relevant stock option plans, as appropriate (the “Plans”), and the relevant stock option agreement.
(c) committed larceny, embezzlement, conversion or any other act involving the misappropriation of Company or customer funds in the course of his employment; or
(iii) Resignation for “Good Reason” shall mean the resignation of the Executive after:
(c) the Board or the IBC Board, without Cause (as defined in Section 5(A)(ii) above) places another executive above the Executive in the Company or IBC; or
(d) a Change of Control as defined in Section 5(C) below;
(a) to receive a lump sum severance payment in an amount equal to three (3) times the Executive’s then current Base Salary.
(b) to elect, with respect to the Company’s benefit plans:
(1) to continue participation in the plans and arrangements described in clauses (B) and (F) of Section 4 hereof (to the extent permissible by law and the terms of such plans and arrangements) for eighteen (18) months:
(2) at the election of the Executive at any time following Termination and during the Benefits Period, to receive a gross bonus payment in an amount which after payment therefrom of all applicable federal and state income and employment taxes, will equal the pre-tax cost to the Company at the time of the Executive’s election, attributable to the Executive’s participation in the plans and arrangements described in clauses (B) and (F) of Section 4 hereof for the Benefits Period less any portion thereof during which the Executive has continued his participation in such plans and arrangements described in clause (B) and (F) of Section 4 hereof in accordance with Section 5(B)(i)(b)(1) above; which payment shall be due (without regard to any limitations on participation in such plans and arrangements) following Termination and immediately upon the Executive’s delivery of written notice to the Company of his election pursuant to this Section 5(B)(i)(b)(2), and if not so paid, shall bear interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Internal Revenue Code of 1986 as then in effect from such date until paid; and
(c) to have all stock options which have been granted to the Executive to immediately become fully exercisable for a period equal to the longer of (1) three (3) months after the Termination; or (2) the period specified in the relevant stock option agreement (or if no period is so specified, the period provided in the relevant stock option plan), and
(d) to continue to have use of a Company-owned automobile and with the exception of gasoline charges to receive all reimbursements associated therewith in accordance with the provisions of Section 4(A) hereof for the Benefits Period, or upon his written notice to the Company at any time within three months following the Termination, to purchase his Company-owned automobile at a purchase price equal to the book value of said automobile as carried on the books and records of the Company, plus all applicable excise taxes.
(b) the Executive resigns for Good Reason (as such term is defined in Section 5(A)(iii) hereof) from employment with the Company and/or its
parent or any of its subsidiaries, affiliates, or successors (by merger or otherwise as a result of the Change of Control),
(c)(x) to receive in a lump sum three (3) times his then current Base Salary and to receive in a lump sum an amount equal to three (3) times the greatest of (1) the aggregate amount of incentive payments made to the Executive during the twelve (12) months preceding the date of termination of this Agreement without Cause or resignation for Good Reason, (2) the aggregate amount of incentive payments made to the Executive during the twelve (12) months preceding the Change of Control, or (3) the calculated incentive Plan award, in each case pursuant to any bonus or incentive compensation plan, including without limitation, the Rockland Trust Company Officer and Executive Incentive Compensation Plan, as amended from time to time.
(c)(y)(1) to continue participation in the plans and arrangements described in clauses (B) and (F) of Section 4 hereof (to the extent permissible by law and the terms of such plans and arrangements) for the period of thirty-six (36) months after such termination or resignation (the “Benefits Period”), or
(c)(y)(2) at the election of the Executive at any time following termination of this Agreement and during the Benefits Period, to receive a gross bonus payment in an amount which after payment therefrom of all applicable federal and state income and employment taxes, will equal the pre-tax cost to the Company at the time of the Executive’s election, attributable to the Executive’s participation in the plans and arrangements described in clauses (B) and (F) of Section 4 hereof for the Benefits Period less any portion thereof in which the Executive has continued his participation in such plans and arrangements described in clauses (B) and (F) of Section 4 hereof in accordance with Section 5(C)(i)(c)(y)(1) above; which payment shall be due following termination or resignation of the Executive’s employment immediately upon the Executive’s delivery of written notice to the Company of his election pursuant to Section 5(C)(i)(c)(y)(2), and
(iv) Subject to the provisions of Subparagraph 5(C)(v), all determinations required to be made under this Subparagraph 5(C)(iv), including whether a Gross-Up Payment is required and the amount of such Gross-Up Payment, shall be made by IBC’s independent auditors or any nationally recognized accounting firm selected by IBC (the “Accounting Firm”), which shall provide detailed supporting calculations both to IBC and Executive within fifteen (15) business days of the Date of Termination, if applicable, or at such earlier time as is reasonably requested by IBC or Executive. For purposes of determining the amount of the Gross-Up Payment, Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the Gross-Up Payment is to be made, and state and local income taxes at the highest marginal rates of individual taxation in the state and locality of Executive’s residence on the Date of Termination, net of the maximum reduction in federal income taxes which could be obtained
from deduction of such state and local taxes. The initial Gross-Up Payment, if any, as determined pursuant to this Subparagraph 5(C)(iv), shall be paid to Executive within five (5) days of the receipt of the Accounting Firm’s determination. If the Accounting Firm determines that no Excise Tax is payable by Executive, the Accounting Firm shall be required to (A) conclude that either (i) there has not occurred a change in the ownership or effective control of IBC or a change in the ownership of a substantial portion of the assets of IBC (as such terms are defined in Section 280G of the Code) or (ii) no portion of the Severance Payments constitutes “parachute payments” (within the meaning of said Section 280G), in either case on the basis of “substantial authority” (within the meaning of Treas. Reg. § 1.6661-3), and (B) provide an opinion to that effect to both IBC and Executive, including the reasons therefore and an opinion that Executive has substantial authority not to report any Excise Tax on his federal tax return. Any determination by the Accounting Firm shall be binding upon IBC and Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made should have been made (an “Underpayment”). In the event that IBC exhausts its remedies pursuant to Subparagraph 5(C)(v) and Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred, consistent with the calculations required to be made hereunder, and any such Underpayment, and any interest and penalties imposed on the Underpayment and required to be paid by Executive in connection with the proceedings described in Subparagraph 5(C)(v), shall be promptly paid by IBC to or for the benefit of Executive.
(d) permit IBC to participate in any proceedings relating to such claim; provided, however, that IBC shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in
connection with such contest and shall indemnify and hold Executive harmless, on an after-tax basis, for any Excise Tax or income tax, including interest and penalties with respect thereto, imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Subparagraph 5(C)(v), IBC shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as IBC shall determine; provided, however, that if IBC directs Executive to pay such claim and sue for a refund, IBC shall advance the amount of such payment to such claim and sue for a refund, IBC shall advance the amount of such payment to Executive on an interest-free basis and shall indemnify and hold Executive harmless, on an after-tax basis, from any Excise Tax or income tax, including interest or penalties with respect thereto, imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, IBC’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Executive shall be entitled to settle or contest, as the case may be, any other issues raised by the Internal Revenue Service or any other taxing authority.
(vi) If, after the receipt by Executive of an amount advanced by IBC pursuant to Subparagraph 5(C)(v), Executive becomes entitled to receive any refund with respect to such claim, Executive shall (subject to IBC’s complying with the requirements of Subparagraph 5(C)(v)) promptly pay to IBC the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by Executive of an amount advanced by IBC pursuant to Subparagraph 5(C)(v), a determination is made that Executive shall not be entitled to any refund with respect to such claim and IBC does not notify Executive in writing of its intent to contest such denial of refund prior to the expiration of 30 days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid.
(D) Mitigation of Damages; Legal Fees. The Executive shall not be required to mitigate the amount of any payment or benefit provided for in Sections 5(B) and 5(C) by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in Sections 5(B) and 5(C) be reduced by any compensation earned by the Executive as a result of self-employment or employment by another employer, by retirement benefits or by offset against any amount claimed to be owed by the Executive to the Company or otherwise. Following a
Change of Control, the Company agrees to pay, as incurred, all legal fees and expenses which the Executive may reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement or any guaranty of performance thereof (including as a result of any contest by the Executive about the amount of any payment pursuant to this Agreement) plus in each case interest on any delayed payment at the rate applicable federal rate provided for in Section 7872(f)(2)(A) of the Internal Revenue Code of 1986 as then in effect.
(b) continue to permit the Executive to participate in the plans and arrangements described in clauses (B), (F) and (I) of Section 4 hereof (to the extent permissible by law and the terms of such plans and arrangements) for a twelve (12) month period following termination of employment; provided, however, that if the Executive dies following a termination pursuant to this Section 5(E)(ii), then the provisions of Section 5(E)(i) shall supersede this Section 5(E)(ii) from and after the date of death of the Executive.
(A) Confidentiality. The Executive recognizes and acknowledges as an employee of the Company, he will have access to, become acquainted with, and obtain financial information and knowledge relating to the business, financial condition, methods of operation and other aspects of the Company, its parent, subsidiaries and affiliates (“Affiliated Companies”) and their customers, employees and suppliers, some of which information and knowledge is confidential and proprietary and that the Executive could substantially detract from the value and business prospects of any of the Affiliated Companies in the event, while employed by the Company or any time thereafter, the Executive were to disclose to any person not related to the Affiliated Companies or use such information and knowledge for his or such other person’s advantage. Accordingly, the Executive hereby agrees that he will not disclose to any person, other than directors, officers, employees, accountants, lawyers, consultants, advisors, agents and representatives of, or other persons related to, the Affiliated Companies on a need to know basis in the course of carrying out his duties hereunder, any knowledge or information of a confidential nature pertaining to any of the Affiliated Companies, or their successors and assigns, including without limitation, all unpublished matters relating to the business, properties, accounts, books and records, business plan and customers of the said Affiliated Companies, or their successors and assigns, except with the prior written approval of the Board of Directors of the Company, or except as may be required or permitted by court order.
(E) Enforceability. The covenants on the part of the Executive contained in this Section 6 shall be construed as an agreement independent of any other provision in this Agreement, and the existence of any claim or cause of action by the Executive against the Company or IBC, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of said covenants. This Section shall survive the termination of this Agreement. The period, geographical area and the scope of the restrictions on the Executive set forth herein are divisible so that if any provision of this Section 6 is found to be invalid, that provision shall be automatically modified to the extent necessary to make it valid.
(B) In the event the sum of (i) the amount payable to the Executive hereunder which is characterized as applicable employee remuneration for federal income tax purposes under Internal Revenue Code of 1986, §162(m)(4) for any tax year of the Company and (ii) the aggregate of all other amounts which are characterized as applicable employee remuneration under Internal Revenue Code of 1986, §162(m)(4) paid by the Company in respect to the Executive for such tax year exceeds (iii) $1,000,000 (or such greater or lesser sum as equals the maximum amount allowable as a deduction to the Company for federal income tax purposes under Internal Revenue Code of 1986, §162(m) in respect to applicable employee remuneration to the Executive for such tax year), the amount payable hereunder in respect to such year shall be reduced (but not below zero) to the amount which shall result in the sum of (iv) the amount payable hereunder which is characterized as applicable employee remuneration under said §162(m)(4) and (v) all other remuneration paid by the Company in respect to the Executive for such tax year which is characterized as applicable employee remuneration under said §162(m)(4) equaling (vi) $1,000,000 (or such greater or lesser sum as equals the maximum amount allowable as a deduction to the Company for federal income tax purposes under said §162(m) in respect to applicable employee remuneration under said §162(m)(4) to the Executive for such tax year. If, after the maximum reduction in the preceding sentence, any other amounts remain payable otherwise than under this Agreement which would, if paid, be applicable employee remuneration (as defined above) in excess of the amount which is allowable as a deduction for the same under said §162(m), such amounts shall be reduced to the maximum amount allowable as a deduction to the Company for federal income tax purposes under said §162(m) in respect to applicable employee remuneration to the Executive for such tax year. So much of the amount of the reductions provided in the two preceding sentences as may be paid in the tax year of the Company next succeeding without resulting in a disallowance of a federal income tax deduction under said §162(m) in respect to the portion of such reduction so paid shall be paid on the first business day in such succeeding tax year. If the full amount of such reductions if not paid in such tax year of the Company next succeeding, the remainder of such reduction shall be paid in installments equal to the lesser of (vii) the unpaid balance of such reduction or (viii) the amount which may be paid in each successive tax year without resulting in a disallowance of a federal income tax deduction under said §162(m) in respect to the portion of such reduction so paid until the full amount of such reductions have been paid. References to sections of the Internal Revenue Code of 1986 shall refer to the successors (to the sections cited as presently constituted) which are in effect when applied.
Except for confidentiality and non-solicitation undertakings set forth in the Severance Agreement and Waiver entered into in connection with the Executive’s severance related to the Wachovia/First Union merger, a copy of which has been provided to the Company and IBC, the Executive hereby represents and warrants that he is not a party to or otherwise bound by any contracts, agreements or arrangements which contain covenants limiting the freedom of the
Executive to compete in any line of business or with any person or entity, or which provide that the Executive must maintain the confidentiality of, or prohibit the Executive from using, any information in the context of his professional or personal activities. The Executive further represents and warrants that neither the execution or delivery of this Agreement nor the performance by the Executive of his duties hereunder will cause any breach of any contract, agreement or arrangement to which he is a party or by which he is bound.
(A) nothing in this Section shall preclude the Executive from designating any of his beneficiaries to receive any benefits payable thereunder upon his death or disability, or his executors, administrators, or other legal representatives, from assigning any rights hereunder to the person or persons entitled thereto, and
Attn: Paul Clark, Sr.