Document:

ex10_8k93015.htm

SEPARATION AND RELEASE AGREEMENT

 

This Separation and Release Agreement (this “Agreement”) is dated October 2, 2015, by and among VICKIE HOULLIS (“Officer”), SUNSHINE BANCORP, INC. (the “Company”) and SUNSHINE BANK (the “Bank”).

 

WHEREAS, Officer is currently employed as Senior Vice President, Chief Financial Officer and Corporate Secretary of the Company and Human Resources Director and Corporate Secretary of the Bank; and

 

WHEREAS, Officer has notified the Company and the Bank of her intention to voluntarily resign from employment with the Company and the Bank; and

 

WHEREAS, the Company and the Bank have agreed to accept Officer’s resignation from employment with the Company and the Bank; and

 

WHEREAS, the Company, the Bank and Officer desire to set forth the terms of Officer’s separation in this Agreement, including the severance amounts to be payable to Officer.

 

NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, it is agreed as follows:

 

1.           Resignation.  Effective as of October 2, 2015 (the “Date of Termination”), Officer hereby voluntarily resigns as Senior Vice President, Chief Financial Officer and Corporate Secretary of the Company and Human Resources Director and Corporate Secretary of the Bank.

 

2.           Severance Payments and Benefits.

 

(a)           Accrued Obligations.  The Bank shall pay or provide Officer any Accrued Obligations as of her Date of Termination.  “Accrued Obligations” means: (i) any accrued and unpaid base salary of Officer through the Date of Termination, payable pursuant to the Bank’s standard payroll policies; (ii)  any compensation and benefits to the extent payable to Officer based on Officer’s participation in any compensation or benefit plan, program or arrangement of the Bank or the Company through the Date of Termination; (iii) any expense reimbursement to which Officer is entitled under the Bank’s standard expense reimbursement policy (as applicable); and (iv) cash in lieu of any accrued and unused vacation and/or sick time.  The payment of any Accrued Obligations pursuant to subparagraphs (i) and (iv) hereof shall be made on the Bank’s first normal payroll date following the Date of Termination.

 

(b)           Severance.  The Bank shall pay to Officer a cash lump sum payment equal to $144,200.  Such payment shall be made on the Bank’s first normal payroll date after January 1, 2016 (the “Severance Payment Date”).

 

(c)           Continued Health Coverage.  Officer and Officer’s dependents (if applicable) participating in the Bank’s group heath coverage plan on the Date of Termination, at her election, shall have the right to continue to participate in such group health coverage plan under and pursuant to the applicable requirements of the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) for such periods as may be permitted under applicable law.  If Officer elects to continue such group health coverage, Officer shall be responsible for the payment of all applicable premiums associated with such continued coverage, except that the Bank shall reimburse Officer for the monthly premiums associated with such coverage during the first six months of the COBRA period (not to exceed $600 per month) following Officer’s Date of Termination.

 

  

  

  

(d)           Cash in Lieu of ESOP Contribution.  The Bank shall pay Officer $6,914 on the Bank’s first normal payroll date following the Date of Termination, which shall be paid in lieu of any contributions to be received by Officer under the Sunshine Bank Employee Stock Ownership Plan for the plan year ended December 31, 2015 assuming Officer remained employed with the Bank as of such date.

 

(e)           Continued Terms of Mortgage Loan.  The terms of any outstanding mortgage loan between the Bank and Officer as of the Date of Termination shall remain in effect, unless modified in writing by an agreement between the parties or by applicable law.

 

(f)           Letter of Reference.  As requested by Officer, the Company and/or the Bank shall provide a letter of reference to prospective employers of Officer in the form attached hereto as Exhibit A.

 

(g)           Unemployment Benefits.  Neither the Company nor the Bank shall challenge or contest any claim made by the Officer for unemployment compensation or benefits under applicable law.

 

3.           SERP.

 

(a)           No Further Contributions.  Following the Date of Termination, no further Contributions shall be made to Officer’s Deferral Account established by the Bank pursuant to the Supplemental Executive Retirement Plan Agreement between the Bank and Officer dated September 22, 2011 (the “SERP”).

 

(b)           Benefit Amount.  The Bank shall pay Officer 100% of her Deferral Account balance as of the Date of Termination in accordance with Section 4.2 of the SERP (such that Officer shall be deemed 100% vested in her Deferral Account balance) in full satisfaction of its obligations to Officer under the SERP.  Pursuant to Section 4.2 of the SERP, the Bank shall pay Officer her Deferral Account balance in 180 consecutive equal monthly installments commencing on the Bank’s first normal payroll date on or immediately following December 1, 2015 and continuing on the first normal payroll date of each month thereafter (the “Payout Period”).  The beginning balance of Officer’s Deferral Account is $127,876.43. During the Payout Period, interest shall continue to be credited to Officer’s Deferral Account at an annual rate equal to the Crediting Rate (i.e., 6.0%), compounding monthly, until the balance is paid in full.  As a result, the monthly installment payment is $1,073.73.

 

(c)           Amendment to Section 9.10 of the SERP.  Pursuant to Section 8.1 of the SERP, Section 9.10 of the SERP is hereby deleted in its entirety and replaced with the following:

 

“9.10 Forfeiture.  The Officer shall forfeit any non-distributed benefits under the SERP if within 24 months following the Date of Termination Officer divulges, discloses or communicates to others in any manner whatsoever, any confidential information of the Employer, to the knowledge of the Officer, including but not limited to, the names and addresses of customers or prospective customers, of the Employer, as they may have existed from time to time, of work performed or services rendered for any customer, any method and/or procedures relating to projects or other work developed for the Employer, earnings or other information concerning the Employer.  This restriction applies to all information regarding the Employer, regardless of the source who provided or compiled such information.  Notwithstanding anything to the contrary, all information referred to herein shall not be disclosed unless and until it becomes known to the general public from sources other than the Officer.  The restrictions of this paragraph shall not apply to any disclosure of otherwise confidential information that is required to be disclosed by law or by court order or government order, provided that the Officer: (a) promptly notifies Employer of any such disclosure requirement so that Employer may seek an appropriate protective order (or other appropriate protections); and (b) provides reasonable assistance (at no cost to Officer) in obtaining such protective order or other form of protection.”

 

  

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(d)           Section 409A of the Code.  Officer’s termination of employment as of the Date of Termination constitutes a “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).  Officer is not a “specified employee” as defined under Section 409A of the Code since she was not considered a “key employee” as defined under Section 416(i) of the Code (without regard to Section 416(i)(5) of the Code) at any time during the 12-month period ending on December 31, 2014 (i.e., the specified employee identification date).  Therefore, distributions under the SERP are permitted to be made to Officer before the date which is six (6) months after the date of separation from service.

 

(e)           Capitalized Terms.  Capitalized terms in this Section 3 that are not defined in this Agreement shall have the meaning set forth in the SERP.

 

4.           Mutual Release.

 

(a)           Release by Officer.

 

	
(i)           In consideration of the benefits payable under Sections 2 and 3 of this Agreement, Officer, Officer’s heirs, executors, administrators, successors and assigns, hereby fully, finally and forever release and discharge the Bank, the Company, all parent, subsidiary, related and affiliated companies, as well as its and their successors, assigns, officers, owners, directors, agents, representatives, attorneys, and employees (all of whom are referred to throughout this Agreement as the “Parties”), of and from all claims, demands, actions, causes of action, suits, damages, losses, and expenses, of any and every nature whatsoever, as a result of actions or omissions occurring through the execution date of this Agreement.  Specifically included in this waiver and release are, among other things, claims of alleged employment discrimination, either as a result of the separation of Officer’s employment or otherwise, under the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, the Family and Medical Leave Act, the Americans with Disabilities Act, the Employee Retirement Income Security Act, any other federal, state or local statute, rule, ordinance, or regulation, as well as any claims for alleged wrongful discharge, negligent or intentional infliction of emotional distress, breach of contract, fraud, defamation, or any other unlawful behavior, the existence of which is specifically denied by the Parties.  The foregoing list is intended to be illustrative rather than inclusive. Officer waives the rights and claims to the extent set forth above, and Officer also agrees not to institute, or have instituted, a lawsuit against the Parties based on any such waived claims or rights.

	  
	
(ii)           Nothing in Section 4(a)(i) of this Agreement, however, shall be construed to prohibit Officer from filing a charge or participating in any investigation or proceeding conducted by the Equal Employment Opportunity Commission or comparable state or local agency. Notwithstanding the foregoing, Officer waives her right to recover monetary or other damages as a result of any charge or lawsuit filed by Officer or by anyone else on Officer’s behalf, including a class or collective action, whether or not Officer is named in such proceeding. Further, nothing in this Agreement is intended to waive Officer’s entitlement to the payments and benefits set forth under this Agreement and the SERP, vested or accrued benefits under any tax-qualified employee benefit plan sponsored by the Bank or Officer’s right to elect COBRA health care continuation coverage at Officer’s expense (if Officer is eligible for COBRA coverage). Finally, this Agreement does not waive claims that Officer could make, if available, for unemployment or workers’ compensation.

	  
	 
	  
	
 

	  
	
 

 

  

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(iii)           Officer affirms that the only consideration for Officer signing this Agreement is that set forth in Sections 2 and 3 of this Agreement, that no other promise or agreement of any kind has been made to or with Officer by any person or entity to cause Officer to execute this Agreement, and that Officer fully understands the meaning and intent of this Agreement, including but not limited to, its final and binding effect.

 

	
(iv)           Officer acknowledges that Officer has carefully read and reviewed this Agreement and has been advised to seek the advice of an attorney, or other counsel, and Officer had an opportunity to consult with and receive counsel from an attorney concerning the terms of this Agreement.

	  
	
(v)           Officer understands and is satisfied with the terms and contents of this Agreement and voluntarily has signed Officer’s name to the same as a free act and deed.  Officer agrees that this Agreement shall be binding upon Officer and Officer’s agents, attorneys, personal representatives, heirs, and assigns.  Officer acknowledges that Officer has been given a period of at least 21 days from date of receipt within which to consider and sign this Agreement.  To the extent Officer has executed this Agreement less than 21 days after its delivery to Officer, Officer hereby acknowledges that Officer’s decision to execute this Agreement prior to the expiration of such 21 day period was entirely voluntary.

 

(b)           Release by the Company and the Bank.

(i)           The Company, the Bank and all their representatives, officers, directors, employees in their capacity as representatives of the Company and/or the Bank hereby generally and completely release, acquit, and discharge Officer from and against any and all claims.  As used in this Section 4(b)(i), “claims” means any and all matters relating to Officer’s service as an employee and officer of the Company and the Bank, the termination of such service with the Company and the Bank, and any and all claims, debts, liabilities, demands, obligations, promises, acts, agreements, costs, expenses, damages, actions, and causes of actions, whether in law or in equity, whether known or unknown, suspected or unsuspected, arising from Officer’s employment or service with and/or termination from the Company, the Bank or any subsidiary or affiliate thereof.

 

(ii)           Notwithstanding the foregoing, neither the Company nor the Bank releases Officer from any claims it may have: (A) pursuant to the terms of this Agreement; or (B) arising from the conviction of Officer of a crime or a determination of intentional wrongdoing by a federal or state regulatory agency or a court of competent jurisdiction related to Officer’s service as an employee or officer the Company or the Bank, provided such conviction or determination relates to a matter that has caused substantial economic damage to, or substantial injury to the business reputation of, the Company and/or the Bank.

 

(iii)           The Company and the Bank agree not to institute, nor have the Company or the Bank instituted, a lawsuit against Officer based on any waived claims or rights as set forth above.

 

5.           Indemnification.    The Company and the Bank agree to indemnify Officer, to the fullest extent permitted under applicable law as provided in the Company’s Articles of Incorporation, Bylaws and the Bank’s directors’ and officers’ liability insurance policy, against all expenses and liabilities reasonably incurred by Officer in connection with or arising out of any action, suit or proceeding which Officer may be involved by reason of having been an officer or employee of the Company or the Bank.

 

  

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6.           Non-Disparagement.  The parties agree that they will not disparage or make derogatory or untruthful comments about each other or the Company’s or the Bank’s present and former officers, directors, employees, agents, or attorneys, or their business practices.  The provisions of this Section 6 shall not apply to any truthful statement required to be made by Officer, the Company or the Bank as the case may be, in any legal proceeding or governmental or regulatory investigation or inquiry.

7.           Confidentiality.  Officer acknowledges that Officer has had access to trade secrets and other confidential information regarding the Company and the Bank and their businesses that are unique and irreplaceable, and that the use of such trade secrets and other confidential information by a competitor or other persons who are not affiliated with the Company or the Bank, would cause irreparable harm to the Company and the Bank.  Accordingly, Officer shall not disclose to any person or use to the detriment of the Company, the Bank or any affiliate such trade secrets or other confidential information (except as required by law).  Confidential information includes any information, whether or not reduced to written or other tangible form, which: (i) is not generally known to the public or within the industry, or (ii) has been treated by the Company or the Bank as confidential or proprietary.  The restrictions of this Section 7 shall not apply to any disclosure of otherwise confidential information that is required to be disclosed by law or by court order or government order, provided that the Officer: (i) promptly notifies the Company or the Bank of any such disclosure requirement so that the Company or the Bank may seek an appropriate protective order (or other appropriate protections); and (ii) provides reasonable assistance (at no cost to Officer) in obtaining such protective order or other form of protection.

8.           Return of Property.  As of the Date of Termination, Officer agrees to return to the Bank all of the Company’s and the Bank’s property in her possession.

9.           Injunctive Relief.  The parties hereto recognize that irreparable injury will result to the Company and the Bank, their businesses and properties in the event of Officer’s breach of any covenants or agreements contained herein.  The Company and the Bank shall be entitled, in addition to any other remedies and damages available to it, to an injunction prohibiting Officer from committing any violation or threatened violation of this Agreement.

10.           Time to Consider and Rescind.  Officer also acknowledges that Officer is hereby given seven (7) days from the date Officer signs this Agreement to change her mind and revoke this Agreement (the “Revocation Period”).  If Officer does not revoke this Agreement within the Revocation Period, this Agreement shall become final and binding on the day following the cessation of the Revocation Period.  Any notice to revoke this Agreement will be deemed properly given or made if personally delivered or, if mailed, when mailed by registered or certified mail, postage prepaid to the President and Chief Executive Officer of the Bank at his principal business office pursuant to Section 11 of this Agreement.

11.           Notice.  Any notice required or permitted to be given under this Agreement shall be deemed properly given if in writing and if mailed by registered or certified mail, postage prepaid with return receipt requested, at the address listed below or at other address as specified to the other party:

 

  

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If to Officer:

 

Most recent address on file.

If to the Bank or the Company

Sunshine Bank

102 West Baker Street

Plant City, Florida 33563

Attention: Andrew S. Samuel, President and Chief Executive Officer

12.           General Provisions.

 

(a)           Non-Assignability.  This Agreement may not be assigned by Officer.

 

(b)           Binding on Successors.  The terms of this Agreement shall be binding upon the parties hereto and their respective heirs, personal representatives, successors and permitted assigns.

 

(c)           Final Agreement.  This Agreement and the SERP represent the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior understandings, written or oral.  The terms of this Agreement may be changed, modified or discharged only by an instrument in writing signed by the parties hereto.

 

(d)           Governing Law.  This Agreement shall be construed, enforced and interpreted in accordance with and governed by the laws of the State of Florida, without reference to its principles of conflicts of law.

 

(e)           Counterparts.  This Agreement may be executed in one or more counterparts, each of which counterpart, when so executed and delivered, will be deemed an original and all of which counterparts, taken together, will constitute but one and the same agreement.

 

(f)           Severability.  Any term or provision of this Agreement which is held to be invalid or unenforceable will be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement.

 

(g)           Tax Withholding.  The Bank shall withhold from the amounts payable under this Agreement and the SERP such federal, state and/or local taxes as shall be required to be withheld pursuant to any applicable law or regulation.

 

 [Signature Page to Follow]

 

  

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IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date set forth above and Officer hereby declares that the terms of this Agreement have been completely read, are fully understood, and are voluntarily accepted after complete consideration of all facts and legal claims.

 

PLEASE READ CAREFULLY.  THIS AGREEMENT INCLUDES A RELEASE OF CERTAIN KNOWN AND UNKNOWN CLAIMS.

 

THE COMPANY AND THE BANK HEREBY ADVISE OFFICER TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING THIS AGREEMENT.

 

	  	  	
SUNSHINE BANCORP, INC.

	  	  	  
	  	  	  
	  	
By:

	 /s/ Andrew S. Samuel
	  	
Name:

	
Andrew S. Samuel

	  	
Title:

	
President and Chief Executive Officer

	  	  	
SUNSHINE BANK

	  	  	  
	  	  	  
	  	
By:

	 /s/ Andrew S. Samuel 
	  	
Name:

	
Andrew S. Samuel

	  	
Title:

	
President and Chief Executive Officer

	  	  	
OFFICER

	  	  	  
	  	  	  
	  	  	 /s/ Vickie Houllis
	  	  	
Vickie Houllis

	  	  	  

  

7ex101-8k_100115.htm

EXHIBIT 10.1

 

Restricted Stock Award

Granted by

BERKSHIRE HILLS BANCORP, INC.

under the

BERKSHIRE HILLS BANCORP, INC.

2013 EQUITY INCENTIVE PLAN

This Restricted Stock Award Agreement (the “Restricted Stock Award” or this “Agreement”) is and will be subject in every respect to the provisions of the 2013 Equity Incentive Plan (the “Plan”) of Berkshire Hills Bancorp, Inc. (the “Company”) which are incorporated herein by reference and made a part hereof, subject to the provisions of this Agreement.  A copy of the Plan has been provided to each person granted a Restricted Stock Award pursuant to the Plan.  The holder of this Restricted Stock Award (the “Participant”) hereby accepts this Restricted Stock Award, subject to all the terms and provisions of the Plan and this Agreement, and agrees that all decisions under and interpretations of the Plan and this Agreement by the Committee appointed to administer the Plan (“Committee”) or the Board will be final, binding and conclusive upon the Participant and the Participant’s heirs, legal representatives, successors and permitted assigns.  Capitalized terms used herein but not defined will have the same meaning as in the Plan.

 

1.   Name of Participant:  George Bacigalupo

 

2.   Date of Grant: October 1, 2015

 

	
3.  

	
Total number of shares of Company common stock, $0.01 par value per share, covered by the Restricted Stock Award: 18,156, which is an amount equal to $500,000 divided by the closing price of BHLB on October 1, 2015 (and the number of awards are subject to adjustment pursuant to Section 8 hereof).

 

	
4.  

	
Vesting Schedule Subject to Performance Requirement:  Notwithstanding anything in this Agreement to the contrary, the Participant acknowledges that all vesting of Restricted Stock Awards under this Agreement is dependent upon and subject to the Participant remaining in good standing with regard to his employment performance and continuing to successfully meet or exceed all goals and expectations thereto.  Provided that such performance conditions are satisfied, and subject to Section 9 of this Agreement, this Restricted Stock Award will become vested as follows:

 

	
Percentage

	
Number of Shares Vesting

	
Vesting Dates

	  	  	  
	
10%

	
1,816

	
October 1, 2016

	
10%

	
1,816

	
October 1, 2017

	
10%

	
1,816

	
October 1, 2018

	
10%

	
1,815

	
October 1, 2019

	
60%

	
10,893

	
October 1, 2020

 

  

  

  

5.               Grant of Restricted Stock Award.

 

The shares of Stock subject to the Restricted Stock Award may be held in trust until distributed.

 

The Restricted Stock Award will be in the form of issued and outstanding shares of Stock that will be either (i) held in trust until distributed, (ii) registered in the name of, and delivered to, the Participant, which certificate will bear a legend restricting the transferability of the Restricted Stock, or (iii) the Company may, in its sole discretion, issue Restricted Stock in any other format (e.g., electronically) in order to facilitate the paperless transfer of such Awards.

 

The Restricted Stock awarded to the Participant will not be sold, encumbered hypothecated or otherwise transferred except in accordance with the terms of the Plan and this Agreement.

 

	
6.

	
Voting and Dividends.

 

	
  

	
The Participant will have the right to vote the shares of Restricted Stock awarded hereunder.

 

	
  

	
Any cash dividends declared on the non-vested Restricted Stock (and any earnings thereon) shall be immediately distributed to the Participant.

 

	
  

	
7.

	
Delivery of Shares.

 

Delivery of shares of Stock under this Restricted Stock Award will comply with all applicable laws (including, the requirements of the Securities Act), and the applicable requirements of any securities exchange or similar entity.

8.              Adjustment Provisions.

 

	
  

	
This Restricted Stock Award, including the number of shares subject to the Restricted Stock Award, will be adjusted upon the occurrence of the events specified in, and in accordance with the provisions of, Section 3.4 of the Plan.

 

9.             Effect of Termination of Service on Restricted Stock Award.

 

	
  

	
9.1

	
Notwithstanding Section 4 of this Restricted Stock Award Agreement, this Restricted Stock Award will vest as follows:

 

	
(i)  

	
Death or Disability.  In the event of the Participant’s Termination of Service by reason of the Participant’s death or Disability, all Restricted Stock will vest as to all shares subject to an outstanding Award, whether or not fully vested, at the date of Termination of Service.

 

	
(ii)  

	
Termination for Cause.  In the event of the Participant’s Service has been terminated for Cause, all Restricted Stock granted to a Participant that has not vested will expire and be forfeited.

 

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(iv)  

	
Change in Control.  In the event of a Change in Control, all Restricted Stock Awards will vest as to all shares subject to an outstanding Award, whether or not the Participant has a Termination of Service (other than for Cause).   A “Change in Control” will be deemed to have occurred as provided in Section 4.2 of the Plan.

 

	
(v)  

	
Other Termination.  In the event of a Participant Termination of Service for any reason other than death, Disability, for Cause or following a Change in Control, all shares of Restricted Stock awarded to the Participant which have not vested as of the date of Termination of Service will expire and be forfeited.

 

	
10.

	
One-Year Holding Period Requirement for Certain Shares Vesting on October 1, 2020.  In consideration of the rights and benefits extended to the Participant under this Agreement, the Participant hereby agrees to hold a minimum of $150,000 of Company common stock which becomes vested on October 1, 2020 (with the fair market value determined on October 1, 2020) for a period of at least one year (the “Holding Period Requirement”).  The parties agree that the fair market value of Company common stock that must be held for one-year may be reduced by the minimum federal, state and local income tax withholding applicable to the vesting of such shares of Company common stock, and the parties further agree that the Holding Period Requirement will not apply if the Participant is entitled to accelerated vesting due to the occurrence of death, Disability or a Change in Control (as provided in Section 4 of this Agreement).

 

	
11.

	
Amendment to Three-Year Executive Change in Control Agreement.  Section 10 of the Three-Year Executive Change in Control Agreement dated and effective as of December 19, 2013 (the “CIC Agreement”), and entered into by and among the Company, Berkshire Bank (the “Bank”) and the Participant, provides that the CIC Agreement may be amended if such amendment is in writing and signed by the parties thereto.  The Company, Bank and Participant hereby agree that this Agreement hereby amends the CIC Agreement to provide that any cash payment made under the CIC Agreement will be reduced by the value of any Restricted Stock Awards, which are granted under this Agreement, that become vested as a result of a Change in Control (pursuant to Section 9.1(iv) of this Agreement).

 

	
12.

	
Non-Solicitation Agreement.  In consideration of the rights and benefits extended to you by Berkshire Hills Bancorp, Inc. under this Award Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by you, you agree that during your employment with Berkshire Bank, its parent Berkshire Hills Bancorp, Inc., its affiliate Berkshire Insurance Group, Inc., or any of its other affiliates or subsidiaries, or their successors (hereinafter collectively referred to as the “Company”), and continuing for a period of twelve (12) months after your employment with the Company ends, you will not, directly or indirectly, on your own behalf or on behalf of any third person or entity, and whether through your own efforts or through the efforts or assistance of any other person or entity (including, without limitation, any person employed by or associated with any entity with whom you are or may become employed or associated):

 

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a.

	
Solicit or accept any banking, lending, wealth management, investment, insurance or financial services-related business from any individual or entity that was a client or customer or the Company at any time during the three (3) months immediately prior to the end of your employment with the Company, if you were introduced to or interacted with such client or customer regarding the Company’s business; provided, however, that you may accept employment with a Company client or customer or prospect; or

 

	
  

	
b.

	
Participate in hiring, hire or employ an employee or consultant of the Company, or solicit, encourage or induce any such employee or consultant to terminate his or her employment or other relationship with the Company.

 

It is expressly understood and agreed by the parties that the restrictions against solicitation of Company clients and customers set forth in subparagraph a. above shall apply in all situations where your employment may be terminated by the Company for cause, or at your election, but shall not apply to a termination of your employment due to a Company downsizing or the elimination of your position; provided, however, that if you enter into a separation agreement with the Company or receive a severance payment after a downsizing or position elimination, any non-solicitation terms and conditions that you may agree to in consideration of any such agreement or payment shall be independently binding and enforceable against you.

 

If following a Change in Control (as defined in the Company’s Code of Business Conduct) of the Company you continue your employment with the Company for six (6) consecutive months, and you thereafter voluntarily terminate your employment with the Company at any time up to the end of the ninth (9th) month following the Change in Control, the restrictions against solicitation of Company clients and customers set forth in subparagraph a. above shall not apply against you.

 

Notwithstanding anything else herein to the contrary, the restrictions against hiring or employing Company employees or consultants set forth in subparagraph b. above shall apply against you in all circumstances under which your employment with the Company ends.

 

You also agree that for a period of twelve (12) months after your employment with the Company ends, you will inform your potential and actual future employers of your obligations under this Non-Solicitation Agreement.  You agree and acknowledge that this Non-Solicitation Agreement is a material provision of this Award Agreement and your continuing employment with the Company.  Accordingly, in the event it is established in a court of competent jurisdiction that you have breached this Non-Solicitation Agreement, in addition to any other remedies, damages and relief that may be available to the Company at law or in equity, you agree that you shall be required to reimburse the Company for the amount of any reasonable attorneys’ fees and costs incurred by it in connection with such breach or any action against you as a result thereof.

 

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13.

	
Agreement Regarding Confidential Information.  In consideration of the rights and benefits extended to you by Berkshire Hills Bancorp, Inc. under this Award Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by you, you acknowledge and agree that your employment with Berkshire Bank, its parent Berkshire Hills Bancorp, Inc., its affiliate Berkshire Insurance Group, Inc., or any of its other affiliates or subsidiaries, or their successors (hereinafter collectively referred to as the “Company”), creates a relationship of confidence and trust between you and the Company with respect to Confidential Information.  You hereby warrant and agree that (a) you have not used or disclosed any Confidential Information other than as necessary in the ordinary course of performing your duties as a Company employee; and (b) you will keep in confidence and trust, both during your continuing employment with the Company and at all times after such employment shall terminate for whatever reason, all Confidential Information known to you, and will not use or disclose such Confidential Information without the prior written consent of the Company.  Nothing in this Agreement is intended to or shall preclude you from providing truthful testimony or providing truthful information in response to a valid subpoena, court order or request of any federal, state or local regulatory or quasi-regulatory authority; provided, however, that, to the extent permitted by law, you have first provided to the Company as much advance notice as practicable of any such compelled disclosure, and further that you agree to honor any order or ruling obtained by the Company quashing or barring any such subpoena, court order or request for disclosure.  As used in this Agreement, “Confidential Information” means any and all information belonging to the Company, which is of value to the Company and the disclosure of which could result in a competitive or other disadvantage to the Company.  Examples of Confidential Information are, without limitation, financial information, reports and forecasts; trade secrets, know-how and other intellectual property; software; market or sales information or plans; customer lists and information; business plans, prospects and opportunities; and possible acquisitions or dispositions of businesses or facilities that have been discussed by the management of the Company.   Confidential Information includes information you develop or have developed in the course of your employment with the Company, as well as other information to which you may have access in connection with your employment.  Confidential Information also includes the confidential information of others, including, but not limited to, customers of the Company, with whom the Company has a business relationship.  Notwithstanding the foregoing, Confidential Information does not include information in the public domain, unless such information entered the public domain due to a breach of your obligations under this Agreement regarding Confidential Information or otherwise.

 

	
14.

	
Clawback.  In the event the Company or Berkshire Bank (the “Bank”) is required to prepare an accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under the securities laws as a result of misconduct (as determined by the members of the Board of Directors who are considered “independent” for purposes of the listing standards of the NYSE or as required by any current or then existing rules of the SEC at the time of such restatement), the Participant shall reimburse the Bank for part of or the entire incentive award made to such executive officer on the basis of having met or exceeded specific targets of performance periods.  For purposes of this Section 14, (i) the term “incentive awards” means awards under an incentive program, the amount of which is determined in whole or in part upon specific performance targets relating to the financial results of the Company; (ii) the term executive officer means the CEO and his direct reports, who are eligible to participate in such incentive program; and (iii) notwithstanding anything to the foregoing, this clawback policy shall apply as required by any current or then existing rules of the SEC at the time of such restatement.

 

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15.           Miscellaneous.

 

	
  

	
15.1

	
This Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Participant.

 

	
  

	
15.2

	
Restricted Stock Awards are not transferable prior to the time such Awards vest in the Participant.

 

	
  

	
15.3

	
This Restricted Stock Award and this Agreement will be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts.

 

	
  

	
15.4

	
This Restricted Stock Award and this Agreement is subject to all laws, regulations and orders of any governmental authority which may be applicable thereto and, notwithstanding any of the provisions hereof, the Company will not be obligated to issue any shares of stock hereunder if the issuance of such shares would constitute a violation of any such law, regulation or order or any provision thereof.

 

	
  

	
15.5

	
Nothing in this Agreement will interfere with or limit in any way the right of the Company or any Affiliate to terminate your employment or service at any time, nor confer upon you any right to continue in the employ or service of the Company or any Affiliate.

 

	
  

	
15.6

	
This Award Agreement shall be binding upon any successor of the Company, in accordance with the terms of this Agreement and the Plan.

 

 

[Signature Page Follows]

 

-6-

  

  

  

IN WITNESS WHEREOF, the Company and the Bank have caused this instrument to be executed in its name and on its behalf as of the date of grant of this Restricted Stock Award set forth above.

 

BERKSHIRE HILLS BANCORP, INC.

 

By:     /s/ Michael P. Daly                                           

Michael P. Daly

President and CEO

 

 

BERKSHIRE BANK

 

By:     /s/ Michael P. Daly                                           

Michael P. Daly

President and CEO

 

PARTICIPANT’S ACCEPTANCE

 

The undersigned hereby accepts the foregoing Restricted Stock Award and agrees to the terms and conditions hereof, including the terms and provisions of the 2013 Equity Incentive Plan.  The undersigned hereby acknowledges receipt of a copy of the Company’s 2013 Equity Incentive Plan.

 

PARTICIPANT

 

 

/s/ George Bacigalupo                                                      

GEORGE BACIGALUPO

 

-7-

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