Document:

EX-10.1

 Exhibit 10.1 

CONSULTING AGREEMENT 

THIS CONSULTING AGREEMENT (the “Agreement”) is made and entered into as of March 1, 2018, by and among Leaf Group Ltd.
(the “Company”) and Daniel Weinrot (the “Consultant”). 
 RECITALS 

 

	A.	The Consultant currently serves as Executive Vice President-Legal & General Counsel of the Company pursuant to that certain Second Amended and Restated Employment Agreement with the Company, dated
December 1, 2014, as amended by that certain resignation notice dated March 1, 2018 (the “Employment Agreement”). 

  

	B.	The Company and the Consultant mutually desire to transition the Consultant’s role with the Company from that of General Counsel of the Company to that of a non-employee
consultant to the Company, effective as of the close of business on April 1, 2018 (the “Transition Date”). 

  

	C.	The Consultant and the Company mutually desire that, effective as of the close of business on the Transition Date, the Employment Agreement will terminate, this Agreement will supersede and replace the Employment
Agreement in its entirety and the Consultant will cease to be an employee of the Company and will thereupon become an independent contractor of the Company performing consulting services. The Consultant desires to perform such services on the terms
and conditions set forth herein. 

 AGREEMENT 

NOW, THEREFORE, in consideration of the mutual agreements set forth herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Consultant hereby agree as follows: 

1.    Resignation. The Consultant hereby (a) resigns from his position as Executive Vice President-Legal and
General Counsel of the Company and from all other offices held with the Company and/or its subsidiaries (if any), and (b) terminates his employment with all such entities, in each case, effective as of the close of business on the Transition
Date. The Company and the Consultant acknowledge and agree that the termination of the Consultant’s employment as of the close of business on the Transition Date shall constitute a termination of employment by the Consultant “without Good
Reason” pursuant to Section 4(b) of the Employment Agreement. As of the close of business on the Transition Date, the Employment Agreement shall terminate and shall be of no further
force and effect, and neither the Company nor the Consultant shall have any further obligations pursuant thereto. 

2.    Services and Compensation 

(a)    Services and Base Compensation. 

 (i) During the Term (as defined below), the Consultant shall provide such
transition services (the “Services”) in the Consultant’s areas of expertise and work experience as may be mutually agreed by the Consultant and the Board of Directors of the Company (the “Board”) and/or the
Chief Executive Officer of the Company. The Consultant may enter into other consulting or employment relationships that do not conflict with the Consultant’s obligations hereunder. 

(ii)    Compensation for Services. In consideration for the performance of the Services, during the
Term the Company shall pay or provide to the Consultant a fee of $25,000 per month (the “Base Compensation”), payable monthly in advance. 

(b)    Employment Termination Payments and Benefits. In addition to the Base Compensation, subject to and
conditioned upon the Consultant’s execution and delivery to the Company of an effective release of claims in substantially the form attached hereto as Exhibit A (the “Release”) within
twenty-one (21) days following the Transition Date and non-revocation of such Release during any applicable revocation period: 

(i)    The Consultant shall remain eligible to the receive an Annual Bonus (as defined in the Employment Agreement) in
respect of 2017 services in accordance with the Employment Agreement and consistent with the 2017 annual bonuses received by the Company’s senior executives. The Annual Bonus, if not paid prior to the Effective Date, will be paid on the earlier
of (A) the date on which 2017 annual bonuses are paid generally to the Company’s senior executives, but no later than April 15, 2018 or (B) within three (3) business days of the date on which this Agreement is terminated by
the Company pursuant to Section 3(a)(ii) hereof. 
 (ii)    During the period commencing on the Transition Date and
ending on the last day of the Term or, if earlier, the date on which the Consultant becomes eligible for coverage under the group health plan of a subsequent employer (of which eligibility the Consultant hereby agrees to give prompt notice to the
Company) (in any case, the “COBRA Period”), subject to the Consultant’s valid and timely election to continue healthcare coverage under Section 4980B of the Internal Revenue Code of 1986, as amended, and the regulations
thereunder, the Company shall continue to provide the Consultant and the Consultant’s eligible dependants with coverage under its group health plans, at the same levels as would have applied if the Consultant’s employment had not been
terminated on the Transition Date, based on the Consultant’s elections in effect on the date hereof), provided, however, that (A) if any plan pursuant to which such benefits are provided ceases prior to the expiration
of the period of continuation coverage to be exempt from the application of Section 409A (as defined below) under Treasury Regulation Section 1.409A-1(a)(5), or (B) the Company is otherwise
unable to continue to cover the Consultant under its group health plans (including because taxes or penalties would be imposed on the Company in connection with such continuation coverage), then, in either case, an amount equal to each remaining
Company subsidy shall thereafter be paid to the Consultant as currently taxable compensation in substantially equal monthly installments over the remaining portion of the continuation coverage period. 

(iii)    During the Term, the Consultant’s outstanding Company restricted stock unit and non-qualified stock option awards shall continue to vest and/or become exercisable in accordance with their original vesting schedules, subject to the Consultant continuing to provide the Services to the Company.
Upon the termination of the Term and the Consultant’s services 

 
hereunder, the Consultant’s Company restricted stock unit and non-qualified stock option awards, to the extent then-unvested, in each case, as of the
date termination of the Term, shall terminate as of such termination date. The agreements evidencing the Consultant’s Company restricted stock units and non-qualified stock options shall be deemed amended
to the extent necessary to give effect to this Section 2(b)(iii). 
 (c)    Expenses. During the Term, the
Company shall continue to reimburse the Consultant for reasonable and documented out-of-pocket expenses incurred by Consultant directly in connection with providing the
Services contemplated hereunder, in accordance with the Company’s substantiation and reimbursement policies applicable to non-employees, as in effect from time to time. 

3.    Term and Obligations Upon Termination 

(a)    Term. The Consultant’s Services hereunder shall be for a term commencing on the close of business on the
Transition Date and ending as of the close of business on October 1, 2018 (collectively, the “Term”). Notwithstanding the foregoing, (i) the Consultant may terminate the Term and the Consultant’s Services hereunder at
any time, for any reason or no reason, and (ii) the Company may terminate the Term and the Consultant’s Services hereunder only for Cause (as defined in the Employment Agreement). 

(b)    Obligations Upon Termination. Upon a termination of the Term and the Consultant’s Services
hereunder: 
 (i)    The Company shall pay within thirty (30) days after the date of termination (or such earlier
date as may be required by applicable law), all amounts owing to the Consultant for Services completed and/or reimbursable expenses (under Section 2(c) above) incurred through the termination date; and 

(ii)    Notwithstanding anything contained herein to the contrary, Section 4 (Confidentiality Agreement),
Section 5 (Cooperation), Section 6 (Non-Disparagement) and Section 8 (Independent Contractor) hereof, as well as the Confidentiality Agreement, as defined in Section 4, shall survive
termination of this Agreement and shall continue in effect. 
 (c)    Return of Property. Upon the termination of
the Term and the Consultant’s Services hereunder for any reason, the Consultant agrees to return to the Company all documents of the Company and its subsidiaries (and all copies thereof) and all other Company property that the Consultant has in
his possession, custody or control unless otherwise agreed with the Company with respect to certain property such as personal computer. Such property includes, without limitation: (i) any materials of any kind that the Consultant knows contain
or embody any proprietary or confidential information of the Company (and all reproductions thereof), (ii) computers (including, but not limited to, laptop computers, desktop computers and similar devices) and other portable electronic devices
(including, but not limited to, tablet computers), cellular phones/smartphones, credit cards, phone cards, entry cards, identification badges and keys, and (iii) any correspondence, drawings, manuals, letters, notes, notebooks, reports,
programs, plans, proposals, financial documents, or any other documents concerning the customers, business plans, marketing strategies, products and/or processes of the Company or any of its affiliates and any information received from the Company
or any of its affiliates regarding third parties. 

 (d)    Exclusivity of Benefits.    Except as
expressly provided in this Agreement, the Company shall have no further obligations to the Consultant upon termination of the Term and the Consultant’s Services hereunder. 

4.    Confidentiality Agreement. The parties acknowledge and agree that they have entered into a Confidential
Information and Development Agreement, dated June 3, 2010 (the “Confidentiality Agreement”), and the Consultant hereby acknowledges and agrees that such agreement shall remain in full force and effect in accordance with its
terms and that the Consultant shall be bound by its terms and conditions. 
 5.    Cooperation. In addition to the
Services (and without further compensation), the Consultant agrees that, following the Transition Date, the Consultant will use commercially reasonable efforts to cooperate with the Company, to the extent reasonably requested by the Company, to
consult, advise and provide relevant input with respect to: (a) any internal investigation or administrative, regulatory or judicial proceeding involving matters that were within the scope of the Consultant’s duties and responsibilities to
the Company and its affiliates during employment with the Company, and (b) the transition of the Consultant’s prior job duties and responsibilities to any replacement identified by the Company. 

6.    Non-Disparagement. The Consultant agrees not to disparage the Company,
any affiliate of the Company and/or any officers, directors, employees, shareholders and/or agents of the Company or any affiliate of the Company in any manner intended or reasonably likely to be harmful to them or their business, business
reputation or personal reputation. The Company shall ensure that its directors and executive officers do not disparage the Consultant in any manner intended or reasonably likely to be harmful to the Consultant’s business or personal reputation.

 7.    Representations. The Consultant represents and warrants that the Consultant has no outstanding agreement,
relationship or obligation that is in conflict with any of the provisions of this Agreement, or that would preclude the Consultant from performing hereunder or complying with the provisions hereof, and further agrees that the Consultant will not
enter into any such conflicting agreement or relationship during the Term. The Consultant agrees to comply with any insider trading policy, ethics policy and business conduct policy of the Company during the term of this Agreement, but may adopt a Section 10b5-1 trading plan consistent with such obligations. The Consultant agrees to not use information received by the Consultant during the term of this Agreement for personal gain or take advantage of any
business opportunities that arise as a result of this Agreement that might be of interest to the Company. 

8.    Independent Contractor. The Consultant expressly acknowledges and agrees that, as of the Transition Date, he
is solely an independent contractor and shall not be construed to be an employee of the Company in any matter under any circumstances or for any purposes whatsoever. The Company shall not be obligated to (a) pay on the account of the
Consultant, any unemployment tax or other taxes required under the law to be paid with respect to employees, (b) withhold any monies from the fees of the Consultant for income or employment tax purposes or (c) provide the Consultant with
any benefits, including without limitation health, welfare, pension, 

 
retirement, or any kind of insurance benefits, including workers’ compensation insurance (except as expressly provided above with respect to COBRA continuation benefits). Notwithstanding the
foregoing, any amounts payable to the Consultant in respect of his service as an employee of the Company prior to the Transition Date shall be subject to withholding in accordance with applicable law. The Consultant acknowledges and agrees that the
Consultant is obligated to report as income all compensation received by the Consultant pursuant to this Agreement, and to pay any applicable income, self-employment and other taxes thereon. The Consultant and the Company hereby acknowledge and
agree that this Agreement does not impose any obligation on the Company to offer employment to the Consultant at any time. 

9.    Assignment. This Agreement and the rights and duties hereunder are personal to the Consultant and shall not be
assigned, delegated, transferred, pledged or sold by the Consultant without the prior written consent of the Company. The Consultant hereby acknowledges and agrees that the Company may assign, delegate, transfer, pledge or sell this Agreement and
the rights and duties hereunder (a) to an affiliate of the Company, or (b) to any third party (i) that acquires all or substantially all of the assets of the Company or (ii) that is the surviving or acquiring corporation in
connection with a merger, consolidation or other acquisition involving the Company. This Agreement shall inure to the benefit of and be enforceable by the parties hereto, and their respective heirs, personal representatives, successors and assigns.

 10.    Notices. 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 Consultant: at the Consultant’s most recent address on the records of the Company. 
 If to the Company: 

Leaf Group Ltd. 
 1655 26th Street 
 Santa Monica, CA 90404 

Attn: Legal Department 
 with a
copy to: 
 Goodwin Procter LLP 

135 Commonweatlh Drive 
 Menlo
Park, CA 94025 
 Attn: Anthony McCusker 
 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. 

11.    Section 409A.    To the extent applicable, this Agreement shall be interpreted in
accordance with Section 409A of the Internal Revenue Code and Department of Treasury regulations and other interpretive guidance issued thereunder (“Section 409A”). Notwithstanding any provision of this
Agreement to the contrary, if the Company determines that any compensation 

 
or benefits payable under this Agreement may be subject to Section 409A, the Company shall work in good faith with the Consultant to adopt such amendments to this Agreement or adopt other
policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Company determines are necessary or appropriate to avoid the imposition of taxes under Section 409A, including
without limitation, actions intended to (a) exempt the compensation and benefits payable under this Agreement from Section 409A, and/or (b) comply with the requirements of Section 409A; provided,
however, that this Section 11 shall not create an obligation on the part of the Company to adopt any such amendment, policy or procedure or take any such other action, nor shall the Company have any liability for failing to do
so. Any right to a series of installment payments pursuant to this Agreement is to be treated as a right to a series of separate payments. 

12.    Governing Law. Any dispute, controversy, or claim of whatever nature arising out of or relating to this
Agreement or breach thereof shall be governed by and interpreted under the laws of the State of California, without regard to conflict of law principles. 

13.    Entire Agreement; Counterparts. Effective as of the close of business on the Transition Date, this Agreement,
together with the Confidentiality Agreement, the Release and any applicable stock option and restricted stock unit agreements, constitutes the complete and final agreement of the parties and supersede any prior agreements between them, whether
written or oral, with respect to the subject matter hereof. Without limiting the generality of the foregoing, the Consultant hereby agrees that as of the close of business on the Transition Date, the Employment Agreement is hereby terminated and
shall be of no further force or effect. No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by duly authorized representatives of the parties hereto. This Agreement may be
executed in several counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement. 

14.    Severability. The invalidity or unenforceability of any provision of this Agreement, or any terms thereof,
shall not affect the validity of this Agreement as a whole, which shall at all times remain in full force and effect. 
 (Signature Page
Follows) 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set
forth above. 
  

			
	LEAF GROUP LTD.
		
	By:	 	/s/ Sean Moriarty
		 	Sean Moriarty
		 	Chief Executive Officer

  

	
	CONSULTANT
	
	/s/ Daniel Weinrot
	Daniel Weinrot

  
 [Signaure page to
Weinrot Consulting Agreement] 

 EXHIBIT A 

GENERAL RELEASE 
 For
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the undersigned does hereby release and forever discharge the “Releasees” hereunder, consisting of Leaf Group Ltd., a Delaware corporation (the
“Company”) and each of its partners, subsidiaries, associates, affiliates, successors, heirs, assigns, agents, directors, officers, employees, representatives, lawyers, insurers, and all persons acting by, through, under or in
concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, losses, costs,
attorneys’ fees or expenses, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which the undersigned now has or may hereafter have against the Releasees, or any of them, by reason of
any matter, cause, or thing whatsoever from the beginning of time to the date hereof. The Claims released herein include, without limiting the generality of the foregoing, any Claims in any way arising out of, based upon, or related to the
employment or termination of employment of the undersigned by the Releasees, or any of them; any alleged breach of any express or implied contract of employment; any alleged torts or other alleged legal restrictions on Releasees’ right to
terminate the employment of the undersigned; and any alleged violation of any federal, state or local statute or ordinance including, without limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination In Employment Act, the
Americans With Disabilities Act, and the California Fair Employment and Housing Act. Notwithstanding the foregoing, this general release (the “Release”) shall not operate to release any rights or claims of the undersigned
(i) to payments or benefits under that certain Consulting Agreement, dated as of March 1, 2018, between the Company and the undersigned (the “Consulting Agreement”), (ii) to payments or benefits under any equity award
agreement between the undersigned and the Company, (iii) with respect to Section 2(c) of the Consulting Agreement, (iv) to accrued or vested benefits the undersigned may have, if any, as of the date hereof under any applicable plan,
policy, practice, program, contract or agreement with the Company, (v) to any Claims, including claims for indemnification and/or advancement of expenses, arising under any indemnification agreement between the undersigned and the Company or
under the bylaws, certificate of incorporation of other similar governing document of the Company, or (vi) to any Claims which cannot be waived by an employee under applicable law. 

THE UNDERSIGNED ACKNOWLEDGES THAT THE EXECUTIVE HAS BEEN ADVISED BY LEGAL COUNSEL AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE
SECTION 1542, WHICH PROVIDES AS FOLLOWS: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 

THE UNDERSIGNED, BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY RIGHTS THE EXECUTIVE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES
OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT. 

  
 A-1 

 EXHIBIT A 

 
 IN ACCORDANCE WITH THE OLDER WORKERS BENEFIT PROTECTION ACT OF 1990, THE
UNDERSIGNED IS HEREBY ADVISED AS FOLLOWS: 
 (A)    THE EXECUTIVE HAS THE RIGHT TO CONSULT WITH AN
ATTORNEY BEFORE SIGNING THIS RELEASE; 
 (B)    THE EXECUTIVE HAS
TWENTY-ONE (21) DAYS TO CONSIDER THIS RELEASE BEFORE SIGNING IT; AND 

(C)    THE EXECUTIVE HAS SEVEN (7) DAYS AFTER SIGNING THIS RELEASE TO REVOKE THIS RELEASE, AND THIS
RELEASE WILL BECOME EFFECTIVE UPON THE EXPIRATION OF THAT REVOCATION PERIOD. 
 The undersigned represents and warrants that there has been
no assignment or other transfer of any interest in any Claim which the Executive may have against Releasees, or any of them, and the undersigned agrees to indemnify and hold Releasees, and each of them, harmless from any liability, Claims, demands,
damages, costs, expenses and attorneys’ fees incurred by Releasees, or any of them, as the result of any such assignment or transfer or any rights or Claims under any such assignment or transfer. It is the intention of the parties that
this indemnity does not require payment as a condition precedent to recovery by the Releasees against the undersigned under this indemnity. 

The undersigned agrees that if the Executive hereafter commences any suit arising out of, based upon, or relating to any of the Claims
released hereunder or in any manner asserts against Releasees, or any of them, any of the Claims released hereunder, then the undersigned agrees to pay to Releasees, and each of them, in addition to any other damages caused to Releasees thereby, all
attorneys’ fees incurred by Releasees in defending or otherwise responding to said suit or Claim. 
 The undersigned further
understands and agrees that neither the payment of any sum of money nor the execution of this Release shall constitute or be construed as an admission of any liability whatsoever by the Releasees, or any of them, who have consistently taken the
position that they have no liability whatsoever to the undersigned. 
 IN WITNESS WHEREOF, the undersigned has executed this Release this
         day of                         , 2018. 

 

	
	
	   

	Daniel Weinrot

  
 A-2Exhibit

Exhibit  10.13

2017 
Senior Executive 
(CEO, PRESIDENT & Sr. EVPs) 

Short Term Incentive Plan 

Compensation Committee Approval March 23, 2017
2017 Goals and New targets for CEO and President
Original Plan Adopted January 28, 2010

2017 Executive Short-term Incentive Plan 

Objectives
Primary objectives of the executive short-term incentive Plan are to motivate and reward executives for achieving specific Bank, department and individual goals that support the Company’s strategic plan.  

Participants
CEO, President, and Senior EVPs are eligible to participate.  The participants are recommended by CEO and approved by the Compensation Committee of Berkshire Hills Bancorp, Inc.

Incentive Opportunity
Each participant will have a target incentive opportunity defined as a percentage of base salary.  Targets are based on competitive market practice for each role.  Targets are reviewed and updated as appropriate in conjunction with regular market reviews. 

	
		
	Tier
	Incentive Opportunity
(% of Base Salary)

	CEO
	60%

	President
	45%

	Senior EVP
	40%

Trigger/Gate
Performance below 75% of Core Net Income target will result in the plan not being funded for that year.  Once the trigger/gate is achieved, the plan payouts will be determined based on performance measures as defined below. 

Performance Measures 
Incentive awards paid reflect a combination of the corporate financial performance, strategic plan implementation and individual performance.  Corporate financial results and achievement of the strategic business plan funds the incentive awards as follows: 

	
							
	 Incentive Target Opportunities for all Participants
	x
	Corporate Financial Performance
Scorecard
(0% - 150%)
	x
	Strategic Plan Multiplier
(85% - 115%) 
	=
	 Funded Incentive      Pool 

The Corporate Financial Performance Scorecard result is determined formulaically based on achievement of predefined performance goals. The Strategic Plan multiplier (+/- 15%) will be determined by the Compensation Committee based on its assessment of executives’ achievement of strategic goals during the year. In addition, the Committee will consider and discuss overall risk and can adjust the pool downward to reflect any risk or regulatory issues. 

Individual performance is measured in a “holistic” approach based on each participant’s individual scorecard, overall achievements and manager discretion.  

Once the pool is determined, the individual awards are allocated to reflect individual performance provided total awards do not exceed the Funded Pool and Individual awards do not exceed 200% of target.

The table on the following page shows the Corporate Financial Performance Scorecard measures which will be used to determine the executive incentive pool for 2017. Each corporate performance measure is treated independently and performance between threshold, target and stretch will be interpolated to reward incremental performance.  Performance below threshold will result in no award for that component.

2

2017 Executive Short-term Incentive Plan 

	
						
	BERKSHIRE BANK 2017 CORPORATE FINANCIAL PERFORMANCE SCORECARD

	Performance Measure
	Definition*
	Weight
	Threshold 
 (funds 50% of award/pool)
	Target 
(funds 100% of award/pool)
	Stretch 
 (funds 150% of award/pool)

	 
	 
	 
	95% of Total Core NI
	100% of Total Core NI
	105% of Total Core NI

	Core Earnings
	Total Core Net Income
	25% 
	$75,484,496
	$81,921,737
	$83,430,232

	Expense Management
	Annual Core Efficiency Ratio
	25%
	65%
	63%
	61%

	Asset Quality
	Criticized Assets 
(Tier 1 + ALLL)
	25%
	27%
	23%
	19%

	ROA
	Core ROA
	25%
	0.83%
	0.87%
	0.91%

	X

	Strategic Plan Multiplier: The Compensation Committee has the discretion to modify the pool +/- 15% based on the level of achievement of strategic goals. In addition, the Committee will consider and discuss overall risk and can adjust the pool downward to reflect any risk or regulatory issues. 

*All financial measures are adjusted to reflect core operations and one time and/or extraordinary items are excluded.   
 
Core EPS: The core EPS calculation is derived from the Company's externally reported core EPS. This number represents GAAP EPS, adjusted for non-core revenue and expenses. Revenue and expense items classified as non-core are defined by management and subject to oversight by the Board of Directors through policy approval. 

Payout 
Awards are calculated based on actual performance at the end of the year.  Results of the Corporate Financial Performance Scorecard and Strategic Plan Multiplier will be used to determine the incentive pool funding.  Achievement of strategic goals and overall risk are assessed and determined by the Committee.

The Compensation Committee (with input from the CEO for his reports) determines the incentive awards to reflect individual performance based on achievements of individual goals and a holistic assessment of overall performance.

Total awards should not exceed the pool and individual awards should not exceed 200% of the executive’s original target.  Payouts will be made in cash within 75 days after the closing of Bank financials each year.

EXAMPLE    

For the illustration, we assume an executive with $100k target incentive opportunity.
		
	1.
	The first step will evaluate performance based on the Corporate Scorecard and Strategic Plan achievement. The result of the Corporate Scorecard and Strategic Plan Modifier determines the pool of incentives available for distribution to all executives.  

In the illustration below the funding is calculated as:

		
	•
	Core Net Income (25% x 100% performance) + Efficiency Ratio (25% x 115%) + Criticized Assets (25% x130%) + Core ROA (25% x 100%) = 111.25% funding for Corporate Financial Performance.

Upon the Committee’s review of strategic plan achievements and in consideration of overall risk, a Strategic Plan Multiplier is determined to be 108%.

As a result, the total funding of the incentive pool is 111.25% x 108% = 120%.  

3

2017 Executive Short-term Incentive Plan 

	
									
	Corporate Financial Performance Scorecard
	x
	Strategic Plan Multiplier
	=
	120%
Total Incentive Pool 

	Performance Measure
	Performance Goal  
	Weight
	Actual Performance
	Pool Allocation 

	Total Core Net Income
	TBD
	25%
	Target
	100%
	

Upon the Committee’s evaluation of strategic goals achievement and overall risk
(85% - 115%)
 

	Annual Core Efficiency Ratio
	TBD
	25%
	Above target
	115%

	Criticized Assets 
(Tier 1 + ALLL)
	TBD
	25%
	Near Stretch
	130%

	Core ROA
	TBD
	25%
	Target
	100%

	TOTAL
	100%
	111.25% 
	108%

The pool is the sum of all the total incentives for the top executives.

		
	2.
	Individual performance is considered to determine the actual award.  Individual performance can adjust the incentive award up or down, although total awards cannot exceed the pool and no single award should exceed 200% of target (e.g. $200k for our example).  

		
	•
	If the senior executive did not meet all goals, the award may be less than target.

		
	•
	If the senior executive exceeded all goals, the award may be higher than target. 

		
	•
	The senior executive’s award cannot exceed $200k (200% of $100,000 target incentive opportunity)

4

2017 Executive Short-term Incentive Plan 

TERMS AND CONDITIONS

Eligibility/Participation
CEO, President, and Senior EVPs are eligible to participate in the Executive Short-Term Incentive Plan (“EIP”).  The Compensation Committee of the Board of Directors of Berkshire Hills Bancorp, Inc. (the “Company”) approves participants based on recommendations from the CEO.  Participants must be employed or promoted by October 1st of the plan year and actively employed on the payout date to receive an award. In the event that an individual, who is due an incentive payout under the plan terminates their employment with the Bank between January 1, 2017 to the date the incentive is paid, that individual’s incentive will be included in the pool and allocated to other participants of the plan.  

Payouts
Once the plan funding is known, actual awards will be determined based on individual performance.  Awards are scheduled to be paid no later than March 15 after determining Berkshire’s financial results for the previous year.  Payouts are pro-rated based on date of hire or promotion after March 31. 
    
Effective Date
This Plan is effective January 1, 2017 for the performance period of January 1, 2017 to December 31, 2017 and shall continue thereafter until modified by the Compensation Committee.  The Plan will be reviewed annually by the Compensation Committee to ensure proper alignment with Berkshire’s objectives.  Berkshire’s Compensation Committee retains the right as described below to amend, modify or discontinue the Plan at any time during the specified period.  The Plan will remain in effect until earned incentive compensation is paid to participants.

Plan Authorization and Oversight
This Plan is authorized by the Compensation Committee of the Board of Directors.  The Committee has the sole authority to interpret the Plan and to make or nullify any rules and procedures, as necessary, for proper administration. Any determination by the Committee and/or Board of Directors will be final and binding.  The Compensation Committee may, in its sole discretion, terminate or modify any aspect of the Plan.  However, no Plan amendment or termination will adversely affect an outstanding award.

Plan Changes or Discontinuance
Berkshire has developed the Plan on the basis of existing business, market and economic conditions; current philosophy and staff assignments. If substantial changes occur that affect these conditions, philosophy, assignments, or forecasts, Berkshire may add to, amend, modify or discontinue any of the terms or conditions of the Plan at any time.  The Compensation Committee may, at its sole discretion, waive, change or amend any of the Plan features as it deems appropriate.  

Termination of Employment
If a Plan participant is terminated by the Company or resigns, no incentive award will be paid.  (See exception for death, disability and retirement below.)  
Death, Disability and Retirement
In the event of Death, Disability and Retirement, the Committee may, in its sole discretion, approve a pro rata payout to such Participant. 
Ethics and Interpretation
If there is any ambiguity as to the meaning of any terms or provisions of the Plan or any questions as to the correct interpretation of any information contained therein, the interpretation expressed by the Compensation Committee will be final and binding.

The altering, inflating, and/or inappropriate manipulation of performance/financial results or any other infraction of recognized ethical business standards, will subject a participant to disciplinary action up to and including termination of employment.  In addition, any incentive compensation under the Plan to which the participant would otherwise be entitled will be revoked.
Participants who have willfully engaged in any activity, injurious to Berkshire, will upon termination of employment, death, or retirement, forfeit any incentive award or payment earned during the Plan year in which the termination occurred.

5

2017 Executive Short-term Incentive Plan 

Withholding of Taxes
Incentive awards will be subject to applicable federal (including FICA), state and local tax withholding requirements.  The Bank shall have the right to deduct from the incentive awards paid in cash or from other wages paid to the participant any federal, state or local taxes required by law to be withheld with respect to such incentive awards.  In the case of incentive awards paid in Bank stock, the Bank may require the participant or other person receiving such shares to pay to the Bank the amount of any such taxes that the Bank is required to withhold with respect to such awards, or the Bank may deduct from other wages paid by the Bank the amount of any withholding taxes due with respect to such awards.  If the Compensation Committee so permits, a participant may elect to satisfy the Bank’s income tax withholding obligation, with respect to awards paid, in Bank stock by having shares withheld up to an amount that does not exceed the participant’s minimum applicable withholding tax rate for federal (including FICA), state and local tax liabilities.  The election must be in a form and manner prescribed by the Compensation Committee. 

CLAWBACK POLICY ON RECOUPMENT OF INCENTIVE COMPENSATION
The Compensation Committee (the “Committee”) of the Board of Directors of Berkshire Bank (the “Company”) may, in its sole discretion, subject to the terms of this Policy set forth below and to the extent legally permitted, require the return, repayment or forfeiture of any annual or long-term incentive compensation payment or award made or granted to any current or former Executive Officer during the 3-year period preceding a Triggering Event (as defined below).   This Policy is applicable to awards made or granted only after the Effective Date.
  A “Triggering Event” is defined as restatement of previously reported financial statements due to the material noncompliance with any financial reporting requirement under the securities laws (a “Restatement”) is filed by the Company with the Securities and Exchange Commission (the “SEC”); or misconduct by an “Executive Officer”.
 In the case of a Triggering Event, the amount to be returned, repaid or forfeited shall be limited to the excess of (i) the amount of the Executive Officer’s payment or award for the relevant period which was predicated upon achieving certain financial results that were subsequently the subject of the Restatement, correction or adjustment, over (ii) any lower payment or award that would have been made to the Executive Officer based upon the financial results of the Company contained in the Restatement or corrected or adjusted financial results.   If the Triggering Event results from misconduct without a restatement of financial statements, the amount to be repaid or forfeited shall be determined by the Committee and approved by the full Board of Directors,

For purposes of this Policy, (i) the term “Executive Officer” means those persons designated by resolution of the Board of Directors of the Company as executive officers as defined in Rule 3b-7 under the Securities Exchange Act of 1934, as amended, and all participants that are designated at or above the executive level, and (ii) “Misconduct” means fraud, commission of a felony, material violation of any written agreement with or policies of the Company, or any other material breach of fiduciary duty injurious to the Company.
  
The Committee shall make all determinations regarding the application and operation of this Policy in its sole discretion, and all such determinations shall be final and binding for purposes of the application of this Policy.  Notwithstanding the foregoing, the Committee may amend or change the terms of this Policy at any time for any reason, including as required to comply with the rules of the SEC and the New York Stock Exchange implementing Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.  Further, the exercise by the Committee of any rights pursuant to this Policy shall be without prejudice to any other rights that the Company or the Committee may have with respect to any Executive Officer subject to this Policy.

Risk 
In order to help insure the Company's safety and soundness, the committee reserves the right to modify or adjust payments to reflect material regulatory findings and/or asset quality deterioration. A portion of the company's strategic plan modifier concerns asset quality soundness. A review/comparison of the company's asset quality results vs. trends, tolerance level ranges and the peer group will be provided to the committee prior to payout. 

Miscellaneous
The Plan will not be deemed to give any participant the right to be retained in the employ of Berkshire, nor will the Plan interfere with the right of Berkshire to discharge any participant at any time.

In the absence of an authorized, written employment contract, the relationship between executives and Berkshire is one of at-will employment. The Plan does not alter the relationship.

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2017 Executive Short-term Incentive Plan 

The Plan and the transactions and payouts hereunder shall, in all respect, be governed by, and construed and enforced in accordance with the laws of the State of Massachusetts.

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