Document:

exv10w2

 

Exhibit 10.2

FORM OF NON-COMPETITION AGREEMENT

     NON-COMPETITION AGREEMENT (the “Agreement”) by and between Webster Financial Corporation, a
Delaware corporation (the “Company”), and [ ] (the “Executive”) dated as of the 31st day of
January, 2005 (the “Effective Date”).

     WHEREAS, the Executive is party to an employment agreement with the Company, dated as of
___, ___(the “Prior Agreement”);

     WHEREAS, the Company
and the Executive desire to terminate the Prior Agreement, amend the
Change of Control Agreement between the Executive and the Company, dated as of
___, ___(the “Change of Control Agreement”), and to enter into certain restrictive
covenants with the Executive as set forth herein; and

     WHEREAS, in consideration for the Executive’s agreement to terminate the Prior Agreement,
amend the Change of Control Agreement and enter into the restrictive covenants as set forth herein,
the Executive will become eligible for certain Severance Benefits;

     NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for
other good and valuable consideration, the receipt of which is mutually acknowledged, the Company
and the Executive (individually a “Party” and together the “Parties”) agree as follows:

          1. Prior Agreement. Effective as of the Effective Date, the Prior Agreement shall
terminate and be of no further force and effect without any further obligation of the parties
thereunder.

          2. Severance Benefits.

          (a) Benefits. The Company may terminate the Executive’s employment at any time with
or without cause or notice. The Parties agree that if the Company terminates the Executive’s
employment without Cause, then the Company will (i) make a lump sum payment to the Executive equal
to the sum of (x) the Executive’s then current annual base salary and (y) the amount of any bonuses
paid pursuant to the Company’s annual incentive compensation plan during the then current fiscal
year multiplied by a fraction the numerator of which is the number of full months during the then
current fiscal year in which the Executive was employed and the denominator of which is 12, and
(ii) subject to certain limitations, continue to provide the Executive with medical and dental
coverage for the shorter of one year or until the Executive accepts other employment on a
substantially full time basis. As a pre-condition to the Executive becoming entitled to the
separation payments just described, the Executive agrees to execute at the time of the Executive’s
termination of employment a general release and waiver in favor of the Company in exactly the form
provided to the Executive by the Company without alteration or addition (the “Release Agreement”).
The lump sum severance amount due under this Agreement shall be paid within thirty (30) days after the Executive’s termination of employment or,
if later, the date the Release Agreement becomes irrevocable.

 

 

          (b) Cause. For the purposes of this Section 2, Cause shall mean any of the following:
personal dishonesty; incompetence; willful misconduct; breach of fiduciary duty involving personal
profit; intentional failure to perform stated duties; willful violation of any law, rule, or
regulation (other than traffic violations or similar offenses); or material breach of any provision
of this Agreement. In determining incompetence, the acts or omissions shall be measured against
standards generally prevailing in the federally insured financial institutions industry; provided,
that it shall be the Company’s burden to prove the alleged acts and omissions and the prevailing
nature of the standards the Company shall have alleged are violated by such acts and/or omissions.

          3. Covenants.

          (a) Confidential Information. While employed by the Company and thereafter, the
Executive shall hold in a fiduciary capacity for the benefit of the Company all secret or
confidential information, knowledge or data relating to the Company or any of its affiliates and
their respective businesses, which shall have been obtained by the Executive during the Executive’s
employment by the Company or any of its affiliates and which shall not be or become public
knowledge (other than by acts by the Executive or representatives of the Executive in violation of
this Agreement). After termination of the Executive’s employment with the Company for any reason,
the Executive shall not, without the prior written consent of the Company or as may otherwise be
required by law or legal process: (i) communicate or divulge any such information, knowledge or
data to anyone other than the Company and those designated by it; or (ii) use to the Executive’s
advantage or to the detriment of the Company any such information, knowledge or data.

          (b) Non-Recruitment of Employees. During the period of Executive’s employment with
the Company and its subsidiaries and the additional period ending on the first anniversary of the
date of termination of the Executive’s employment for any reason, except to the extent provided
otherwise in Section 3(d) (the “Restricted Period”), the Executive shall not, without the prior
written consent of the Company, directly or indirectly, (i) offer employment (or a consulting,
agency,independent contractor or other similar paid position) to any person who is
or was at any time during the six months prior to such offer an employee, representative, officer or
director of the Company or any of its subsidiaries or (ii) induce, encourage or solicit any such
person to accept employment (or any aforesaid position) with any company or entity with which the
Executive is then employed or otherwise affiliated. Further, during the Restricted Period, the
Executive shall not encourage or induce any employee, representative, officer or director of the
Company or any of its subsidiaries to cease their relationship with the Company or any of its
subsidiaries for any reason. This Section 3(b) shall not apply to solicitation, recruitment,
encouragement, inducement or termination during the period of Executive’s employment with the
Company and on behalf of the Company or any of its subsidiaries.

          (c) No Competition — Solicitation of Business. During the Restricted Period, the
Executive shall not directly or indirectly, for the purpose of providing services or products that
are competitive with those provided by the Company and its subsidiaries: (i) become an

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officer, agent, employee, partner or director of any other corporation, partnership or other
entity, or otherwise render services to or assist or hold an interest (except as a less than
two-percent shareholder of a publicly traded company) in any Significant Competitor (as defined
below), or (ii) solicit the business of (A) any active client or customer of the Company or any of
its subsidiaries, or (B) any person or entity who is or was at any time during the six months prior
to such solicitation a client or customer of the Company or any of its subsidiaries. The term
“Significant Competitor” shall mean any commercial bank, savings bank, savings and loan
association, or mortgage banking company, or a holding company affiliate of any of the foregoing,
which has an office out of which the Employee would be primarily based within 35 miles of the
Bank’s home office or which is an institution that has more than $1 billion of deposits in
Connecticut.

          (d) Inapplicability Following Change of Control. Notwithstanding anything in this
Agreement to the contrary, in the event that the Executive’s employment terminates for any reason
during the three-year period following a Change of Control (as defined in Exhibit A),
Section 3(b) and Section 3(c) of this Agreement shall not apply.

          (e) Remedies. The Executive acknowledges and agrees that the terms of Section 3: (i)
are reasonable in light of all of the circumstances, (ii) are sufficiently limited to protect the
legitimate interests of the Company and its subsidiaries, (iii) impose no undue hardship on the
Executive and (iv) are not injurious to the public. The Executive further acknowledges and agrees
that: (A) the Executive’s breach of the provisions of Section 3 will cause the Company irreparable
harm, which likely cannot be adequately compensated by money damages, and (B) if the Company elects
to prevent the Executive from breaching such provisions by obtaining an injunction against the
Executive, there is a reasonable probability of the Company’s eventual success on the merits. The
Executive consents and agrees that if the Executive commits any such breach or threatens to commit
any breach, the Company shall be entitled to temporary, preliminary, and/or permanent injunctive
relief from a court of competent jurisdiction, without posting any bond or other security and
without the necessity of proof of actual damage, in addition to, and not in lieu of, such other
remedies as may be available to the Company for such breach, including the recovery of money
damages. If any of the provisions of Section 3 are determined to be wholly or partially
unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be
reformed so that it is enforceable to the maximum extent permitted by law; and in the case when
such provision is not capable of being reformed, it shall be severed and all remaining provisions
of this Agreement shall be enforced. If any of the provisions of this Section 3 are determined to
be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to
or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction.

          4. Successors.

          (a) This Agreement is personal to the Executive and without the prior written consent of the
Company shall not be assignable by the Executive other than by will or the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s
legal representatives. This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns. For purposes hereof, the term “affiliate” shall mean any entity controlled by, controlling or under common control with the
Company.

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          (b) No rights or obligations of the Company under this Agreement may be assigned or
transferred by the Company except that such rights or obligations may be assigned or transferred
pursuant to a merger or consolidation in which the Company is not the continuing entity, or the
sale or liquidation of all or substantially all or a substantial portion of the assets of the
Company. The Company shall cause any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of its business and/or assets to assume
expressly and agree to perform this Agreement. As used in this Agreement, “Company” shall mean the
Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which
assumes and agrees to perform this Agreement by operation of law, or otherwise.

          5. Miscellaneous.

          (a) This Agreement shall be governed by and construed in accordance with the laws of the State
of Connecticut, without reference to principles of conflict of laws. The Parties hereto
irrevocably agree to submit to the jurisdiction and venue of the courts of the State of
Connecticut, in any action or proceeding brought with respect to or in connection with this
Agreement. The captions of this Agreement are not part of the provisions hereof and shall have no
force or effect. This Agreement may not be amended or modified otherwise than by a written
agreement executed by the Parties hereto or their respective successors and legal representatives.

          (b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other Party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

If to the Executive: 

At the most recent address on file for the Executive at the Company. 

If to the Company: 

Webster Financial Corporation

Webster Plaza 

145 Bank Street 

Waterbury, Connecticut 06702 

Attention: General Counsel

or to such other address as either Party shall have furnished to the other in writing in
accordance herewith. Notice and communications shall be effective when actually received by
the addressee.

          (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

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          (d) The Executive’s or the Company’s failure to insist upon strict compliance with any
provision of this Agreement or the failure to assert any right the Executive or the Company may
have hereunder, shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

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          IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in
its name and on its behalf, all as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	

	

	 	EXECUTIVE 	 	 
	 
	 	 	 	 	 	 
	 	 	WEBSTER FINANCIAL CORPORATION
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 
	
	 	 
	

	 	Title:	 	 	 
	 	  	 	
	 

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EXHIBIT A

     For the purpose of this Agreement, a “Change of Control” shall mean:

          (a) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”)
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
20% or more of either (i) the then outstanding shares of common stock of the Company (the
“Outstanding Company Common Stock”) or (ii) the combined voting power of the then outstanding
voting securities of the Company entitled to vote generally in the election of directors (the
“Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection
(a), the following acquisitions shall not constitute a Change of Control: (i) any acquisition
directly from the Company, (ii) any acquisition by the Company, (iii) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation
controlled by the Company or (iv) any acquisition by any corporation pursuant to a transaction
which complies with clauses (i), (ii) and (iii) of subsection (c); or

          (b) Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though such individual were a
member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election contest with respect to
the election or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; or

          (c) Consummation of a reorganization, merger or consolidation or sale or other disposition of
all or substantially all of the assets of the Company (a “Business Combination”), in each case,
unless, following such Business Combination, (i) all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common
stock and the combined voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation resulting from such
Business Combination (including, without limitation, a corporation which as a result of such
transaction owns the Company or all or substantially all of the Company’s assets either directly or
through one or more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be, (ii) no Person (excluding any
corporation resulting from such Business Combination or any employee benefit plan (or related
trust) of the Company or such corporation resulting from such Business Combination) beneficially
owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common
stock of the corporation resulting from such Business Combination or the combined voting power of
the then outstanding voting securities of such corporation except to the extent that such

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ownership existed prior to the Business Combination and (iii) at least a majority of the
members of the board of directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial agreement, or of the
action of the Board, providing for such Business Combination; or

          (d) Approval by the shareholders of the Company of a complete liquidation or dissolution of
the Company.

8exv10w3

 

Exhibit 10.3

Form of Amendment to Form of 

Change of Control Agreement 

          The
Change of Control Employment Agreement (which hereinafter shall be
titled and referred to as the Change of Control Agreement) by and between Webster Financial Corporation, a Delaware corporation (the
“Company”), and ___(the “Executive”), dated as of the ___day of ___, ___(the
“Agreement”), is hereby amended, effective as of January 31, 2005, as set forth below.

1. Section 4(b)(ii) of the Agreement is hereby amended to read in its entirety as follows:

               (ii) Annual Bonus. In addition to Annual Base Salary, the Executive shall be
awarded, for each fiscal year ending during the Employment Period, an annual bonus (the
“Annual Bonus”) in cash at least equal to the Executive’s highest bonus under the Webster
Financial Corporation and Webster Bank Annual Incentive Compensation Plan, or any comparable
bonus under any predecessor or successor plan, paid with respect to any one of the last
three Company fiscal years prior to the Effective Date (the “Recent Annual Bonus”). For
purposes of determining the Recent Annual Bonus under the foregoing sentence, if the
Executive was not employed by the Company for the whole of any of the last three fiscal
years prior to the Effective Date, then the bonus paid with respect to such fiscal year
shall be deemed to be the greater of (x) the Executive’s target bonus as set forth in the
Executive’s employment offer letter, or (y) the actual bonus paid to the Executive with
respect to such fiscal year. Each such Annual Bonus shall be paid no later than the end of
the third month of the fiscal year next following the fiscal year for which the Annual Bonus
is awarded, unless the Executive shall elect to defer the receipt of such Annual Bonus.

	2.  	Section 3 of the Agreement is hereby amended to read in its entirety as follows:

          3. Employment Period. The Company hereby agrees to continue the Executive in
its employ, and the Executive hereby agrees to remain in the employ of the Company subject
to the terms and conditions of this Agreement, for the period commencing on the Effective
Date and ending on the third anniversary of such date (the “Employment Period”).

	3.  	Section 5(c) of the Agreement is hereby amended to delete the following sentence in its
entirety:

“Anything in this Agreement to the contrary notwithstanding, a termination by the
Executive for any reason during the 30-day period immediately following the first
anniversary of the Effective Date shall be deemed to be a termination for Good Reason for
all purposes of this Agreement.”

 

 

	4.  	Except as modified by this Amendment, the terms of the Agreement shall remain in full force
and effect.

          IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and the Company has
caused these presents to be executed in its name on its behalf, all as of the day and year first
above written.

	 	 	 	 	 	 	 
	 	 	

	

	 	[Executive]	 
	 
	 	 	 	 	 	 
	 	 	WEBSTER FINANCIAL CORPORATION
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	
	 
	

	 	Name:	 	 
	

	 	Title:

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