Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

  Exhibit 10.2    
    

 CHANGE IN CONTROL SEVERANCE AGREEMENT  

        THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (this "Agreement") is between Bank Rhode Island, a financial institution organized under the
laws of the State of Rhode Island (the "Bank") and wholly owned subsidiary of Bancorp Rhode Island, Inc. (the "Company"), and Tiffany Sy (the "Executive"). 

        WHEREAS, the parties hereto seek to set forth the terms of certain severance benefits to be granted to the Executive upon a change in
control event. 

        IT IS MUTUALLY AGREED by the parties as follows: 

        1.    Purpose.    In order to allow Executive to consider the prospect of a Change in Control (as defined in
Section 2(b)) in an objective manner and in consideration of the services rendered and to be rendered by Executive to the Bank, the Bank is willing to provide, subject to the terms of this
Agreement, certain severance benefits to protect Executive from the consequences of a Terminating Event (as defined in Section 2(e)) occurring subsequent to a Change in Control. 

        2.    Definitions.    

        (a)   "Cause"
means any of the following: 

          (i)  Continuing
any arrangement, holding any position or engaging in any activities that conflict with the interest of, or that interfere with, Executive's duties owed to
the Bank, after ten (10) days prior written notice by the Bank to Executive of the same; 

         (ii)  Conviction
of embezzlement or other crimes against the Bank, deliberate misappropriation of the Bank's or the Company's funds or dishonesty; 

        (iii)  Material
violation of written policies of the Bank, irresponsible acts in the performance of Executive's duties or material breach of any of Executive's obligations
under the terms of this Agreement; 

        (iv)  Material
non-performance of Executive's duties or material acts (or omissions) of mismanagement; and 

         (v)  Refusal
to perform assigned duties when such refusal is not justified or excused either by the terms of this Agreement or by actions taken by the Bank in violation of
this Agreement. 

        (b)   "Change
in Control" means: (i) a Takeover Transaction (as defined in Section 2(d)) is effectuated; or (ii) the Company commences substantive
negotiations with a third party with respect to a Takeover Transaction if within twelve (12) months of the commencement of such negotiations, the
Company enters into a definitive agreement with respect to a Takeover Transaction with any party with which negotiations were originally commenced; or (iii) any election of directors of the
Company occurs (whether by the directors then in office or by the shareholders at a meeting or by written consent) where a majority of the directors in office following such election are individuals
who were not nominated by a vote of two-thirds of the members of the board of directors immediately preceding such election; or (iv) either of the Company or the Bank effectuates a
complete liquidation. 

        (c)   "Person"
means an individual, a corporation, an association, a partnership, an estate, a trust and any other entity or organization. 

        (d)   "Takeover
Transaction" means: 

          (i)  The
acquisition of voting securities of the Company 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"), other than by the Company or its subsidiaries or any 

 

employee
benefit plan (or related trust) of the Company or its subsidiaries, which theretofore as of the date hereof did not beneficially own (within the meaning of Rule 13d-3
promulgated under the Exchange Act) securities representing 30% or more of the voting power of all outstanding shares of voting securities of the Company, if such acquisition results in such
individual, entity or group owning securities representing more than 30% of the voting power of all outstanding voting securities of the Company; provided, that any acquisition by a corporation with
respect to which, following such acquisition, more than 50% of the then outstanding shares of voting securities of such corporation, is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial owners of the voting securities of the Company outstanding immediately prior to such acquisition in substantially the same
proportion as their ownership, immediately prior to such acquisition, of the outstanding voting securities of the Company, shall not constitute a Change in Control; or 

         (ii)  The
issuance of additional shares of common stock of the Company or the Bank, as applicable, in a single transaction or a series of related transactions if the
individuals and entities who were the beneficial owners of the outstanding voting securities of the Company or the Bank, as applicable, immediately prior to such issuance do not, following such
issuance, beneficially own, directly or indirectly, securities representing more than 50% of the voting power of all then outstanding voting securities of the Company or the Bank, as applicable; or 

        (iii)  Consummation
by the Company or the Bank of (i) a reorganization, merger or consolidation, in each case, with respect to which all or substantially all of the
individuals and entities who were the beneficial owners of the voting securities of the Company immediately prior to such reorganization, merger or consolidation do not, following such reorganization,
merger or consolidation, beneficially own, directly or indirectly, securities representing more than 50% of the voting power of the outstanding voting securities of the corporation resulting from such
a reorganization, merger or consolidation, or (ii) the sale, exchange or other disposition (in one transaction or a series of related transactions) of all or substantially all of the assets of
the Company (on a consolidated basis) or the Bank to a party which is not controlled by or under common control with such entity, or (iii) the sale by the Company on one transaction or in a
series of related transactions of voting securities of the Bank such that following such transaction or transactions the Company no longer beneficially owns, directly or indirectly, securities
representing more than 50% of the voting power of the then outstanding voting securities of the Bank. 

        (e)   "Terminating
Event" means either: 

          (i)  Termination
by the Bank of Executive's employment for any reason other than (i) Executive's death or disability or (ii) for "Cause" (as such term is
defined in Section 2(a) hereof); or 

         (ii)  Executive's
resignation as an employee of the Bank, other than for reasons of disability, following (i) a significant reduction in the nature or scope of
Executive's duties, responsibilities, authority and powers from the duties, responsibilities, authority and powers exercised by Executive immediately prior to the Change in Control; or (ii) a
greater than 10% reduction in Executive's annual base salary or fringe benefits as in effect on the date of the Change in Control; or (iii) any requirement by the Company or the Bank or of any
Person in control of the Bank that the location at which Executive performs the principal duties of the Bank be outside a radius of 50 miles from the location at which Executive performed such duties
immediately prior to the Change in Control; or (iv) the failure of any successor of the Company or the Bank to agree in writing upon terms and conditions of employment with Executive which are
substantially similar to those of Executive's employment immediately 

2

 

prior
to the Change in Control and which are reasonably satisfactory to Executive within ninety (90) days following a Change in Control. 

        3.    Payment in Connection With Terminating Event.    If a Terminating Event occurs within one (1) year after
a Change in Control (which one (1) year period shall be calculated from the effective date of the Takeover Transaction if the Terminating Event occurs after a Takeover Transaction), the Bank
will pay to Executive an amount (the "Severance Payment") equal to Executive's annual base salary in effect at the time of the Change in Control, which Severance Payment shall be payable in one lump
sum within thirty (30) days of the date of termination of Executive's employment, or if such Change in Control is governed by clause (ii) of Section 2(b) and the Terminating Event
occurs prior to entering into a definitive agreement, upon the entering into of a definitive agreement by the Company. No Severance Payment will be made to Executive under this Section 3 if
Executive's employment with the Company terminates for any reason prior to a Change in Control (except as may be provided below), or if Executive's employment with the Company terminates after a
Change in Control but such termination or resignation is not a Terminating Event. In addition, no Severance Payment will be made to Executive under this Section 3 with respect to a Terminating
Event which occurs more than one (1) year after a Change in Control (which one (1) year period shall be calculated from the effective date of the Takeover Transaction if the Terminating
Event occurs after a Takeover Transaction). 

        4.    Applicability of Change in Control Provisions.    The provisions of Section 3 shall terminate upon the
earliest of (i) the termination by the Bank of Executive's employment for any reason prior to a Change in Control, (ii) the termination of Executive's employment by the Bank after a
Change in Control because of death or disability or for Cause, (iii) Executive's resignation or termination of employment with the Bank prior to a Change in Control for any reason other than
one that constitutes a Terminating Event under Section 2(e), and (iv) Executive's resignation or termination of employment
after a Change in Control on or after the first anniversary of the Takeover Transaction or events specified in Sections 2(b)(iii) or (iv). 

        5.    Notices.    All notices, requests, demands and other communications required or permitted to be given or made
under this Agreement shall be in writing and shall be deemed to have been given if delivered by hand, sent by generally recognized overnight courier service or certified mail, return receipt requested
to the Bank at its office, One Turks Head Place, Providence, Rhode Island 02903, and to the Executive at the address reflected on the payroll records of the Bank, subject to the right of either party
to designate at any time hereafter in writing some other address. Any such notice or other communication will be considered to have been given (i) on the date of the delivery in person,
(ii) on the third day after mailing by certified mail, provided that receipt of delivery is confirmed in writing or (iii) on the first business day following delivery to a commercial
overnight courier. 

        6.    Successors and Assigns.    This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their successors and permitted assigns. For the avoidance of doubt, in the case of the Company, the successors and permitted assigns hereunder shall include, without limitation, any
successor-in-interest of the Company (whether by merger, liquidation (including successive mergers or liquidations) or otherwise); provided, however, that no such assignment of
this Agreement by the Company shall serve to relieve the Company from any liability to Executive hereunder. This Agreement or any right or interest hereunder may not be assigned by Executive. Nothing
in this Agreement, expressed or implied, is intended or shall be construed to confer upon any person other than the parties and successors and assigns permitted by this Section 7 any right,
remedy or claim under or by reason of this Agreement. 

        7.    Governing Law/Jurisdiction    This Agreement shall be governed by and interpreted in accordance with the laws of
the State of Rhode Island. The parties agree that this Agreement was made and entered into in Rhode Island and each party hereby consents to the jurisdiction of a competent court in Rhode Island to
hear any dispute arising out of this Agreement. 

3

 

        8.    Right to Employment.    This Agreement does not constitute any entitlement to employment by, nor confer on
Executive any right to continue in the employ of, the Bank or an affiliate of the Bank nor interfere in any way with the right of the Bank to determine the terms of, or terminate, Executive's
employment. 

        9.    Release.    Executive agrees, as a condition to receipt of payments hereunder, that Executive will execute a
release agreement in form reasonably satisfactory to the Company, releasing and waiving any and all
claims against the Company, its subsidiaries and affiliates other than the right of the Executive to enforce this Agreement and other than claims arising after the effective date of the release. 

        10.    Entire Agreement.    This Agreement constitutes the entire agreement between the parties hereto with respect to
the subject matter hereof and supersedes any and all previous agreements, written or oral, regarding the right of Executive to any payments upon a Terminating Event in connection with a Change in
Control, including without limitation any such agreement contained in any employment letter in connection with the Executive's employment by the Bank. This Agreement shall not be changed, altered,
modified or amended, except by a written agreement signed by both parties hereto. 

        11.    Severability.    If any term or provision of this Agreement, or the application thereof to any person or under
any circumstance, shall to any extent be invalid or unenforceable, the remainder of this Agreement, or the application of such terms to the persons or under circumstances other than those as to which
it is invalid or unenforceable, shall be considered severable and shall not be affected thereby, and each term of this Agreement shall be valid and enforceable to the fullest extent permitted by law.
The invalid or unenforceable provisions shall, to the extent permitted by law, be deemed amended and given such interpretation as to achieve the economic intent of this Agreement. 

        12.    Counterparts.    This Agreement may be executed in counterparts, each of which shall be deemed an original, but
all of which taken together shall constitute one and the same instrument. 

[Signatures Appear on Following Page]

4

 
        IN WITNESS WHEREOF, the parties have executed this Agreement as of the 19th day of April, 2011. 

 

 

					
	 	 	BANK RHODE ISLAND
	

 	
 	
 By:	
 	
/s/ Merrill W. Sherman

  Merrill W. Sherman

President and Chief Executive Officer
	

 	
 	
EXECUTIVE
	

 	
 	
/s/ Tiffany Sy

  Tiffany Sy

 

 

QuickLinks

Exhibit 10.2Exhibit 10.4

 

EXECUTIVE

SUBSCRIPTION AGREEMENT

AND

POWER OF ATTORNEY

 

CPG International Holdings LP

c/o AEA Investors LLC

55 East 52nd Street

New York, New York  10055

Attention:  General Counsel

 

	
Re:
    	
Subscription   for Class B-2 Limited Partnership
    
	
 
    	
Interests   in CPG International Holdings LP
    

 

Ladies and Gentlemen:

 

1)  Subscription.

 

(a)                                  Contribution.   The undersigned (the “Subscriber”) irrevocably and unconditionally subscribes for and agrees to purchase Class B-2 Units of limited partnership interests (the “Interests”) in CPG International Holdings LP (the “Partnership”). The sale by the Partnership of the Interests is in consideration of the Subscriber’s agreement to contribute capital to the Partnership in the amount and type set forth on Schedule 1 hereto on the terms and conditions described herein and in the Agreement of Limited Partnership, dated as of May 10, 2005, as amended in January 2007, February 2008 and March 2009 (the “Partnership Agreement”) supplied herewith. Capitalized terms used herein have the meanings given to them in the Partnership Agreement unless otherwise defined herein. The Subscriber’s obligation to pay for the Interests shall be complete and binding upon the execution of this Subscription Agreement and the Subscriber’s Capital Contribution shatl be payable as directed by CPG Holding I LLC, the General Partner of the Partnership.

 

(b)                                 Delivery of Subscription Agreement.  The Subscriber hereby delivers one executed copy of this Subscription Agreement to the Partnership, c/o AEA Investors LLC, 55 East 52nd Street, New York, New York 10055, Attention:  Amy Bevacqua, Esq.

 

(c)                                  Acceptance.  This Subscription Agreement is subject to the acceptance of the General Partner. The General Partner reserves the right to accept or reject any subscription or any portion thereof.  Upon such acceptance, this Subscription Agreement shall become a binding agreement between the Partnership and the Subscriber.

 

(d)                                 Closing.  The closing of the issuance of the Interests shall occur on or about June 3, 2009, or on such other date as the General Partner of the Partnership, in its sole discretion may determine (the “Closing Date”).

 

(e)                                  Purpose.  The terms of this Subscription Agreement and any similar agreements are intended to increase the Partnership’s ability to attract and retain individuals of

 

 

exceptional managerial talent upon whom, in large measure, the sustained progress, growth and profitability of the Partnership’s business depends.

 

(f)                                    Adoption of Partnership Agreement.  From and after the Closing Date, the Subscriber hereby adopts, accepts, and agrees to be bound by all terms and conditions of the Partnership Agreement and to perform all obligations therein imposed upon the Subscriber in his capacity as a Limited Partner of the Partnership, including, but not limited to, the optional redemption rights in Article 8 thereof, except as specifically modified herein.

 

2)  Subscriber Representations, Warranties and Agreements.

 

(a)                                  In connection with the purchase and sale of the Interests hereunder, the Subscriber represents and warrants to, and agrees with, the Partnership that:

 

(i)                                     the Interests to be acquired by Subscriber pursuant to this Subscription Agreement will be acquired for Subscriber’s own account and not with a view to, or intention of, distribution thereof in violation of the Securities Act of 1933, as amended (the “Securities Act”), or any applicable state securities laws, and the Interests will not be disposed of in contravention of the Securities Act or any applicable state securities laws;

 

(ii)                                  the Subscriber is an “accredited investor” as defined in Rule 501 of the Securities Act;

 

(iii)                               the Subscriber is able to bear the economic risk of his investment in the Interests for an indefinite period of time because the Interests have not been registered under the Securities Act and, therefore, cannot be sold unless subsequently registered under the Securities Act or an exemption from such registration is available;

 

(iv)                              the Subscriber has had an opportunity to ask questions and receive answers concerning the terms and conditions of the offering of Interests and has had full access to such other information concerning the Partnership and any of its subsidiaries as he has requested;

 

(v)                                 this Subscription Agreement constitutes the legal, valid and binding obligation of the Subscriber, enforceable in accordance with its terms, and the execution, delivery and performance of this Subscription Agreement by the Subscriber does not and will not conflict with, violate or cause a breach of any agreement, contract or instrument to which the Subscriber is a party or any judgment, order or decree to which the Subscriber is subject; and

 

(vi)                              the Subscriber is a resident of the State set forth beneath the Subscriber’s name on the signature page hereto.

 

(b)                                 As an inducement to the Partnership to issue the Interests to the Subscriber, and as a condition thereto, the Subscriber acknowledges and agrees that neither the issuance of the Interests to the Subscriber nor any provision contained herein shall entitle the Subscriber to remain in the employment of the Partnership or any of its subsidiaries or

 

2

 

affect the right of the Partnership or any of its subsidiaries to terminate the Subscriber’s employment at any time for any reason.

 

(c)                                  The Subscriber acknowledges that he may not sell, transfer, assign, pledge, dispose of, grant a security interest in, mortgage, hypothecate, encumber or permit or suffer any encumbrance on all or any portion of the Subscriber’s Interests including any interest in the profits or capital of the Partnership (the commission of any such act, or any such similar act in relation to a person’s beneficial interest in the Partnership being referred to as a “Transfer”), unless the General Partner consents to the Transfer in writing and the Transfer is registered under the Securities Act or an exemption from such registration is available. The Subscriber also understands that the Transfer of such Subscriber’s Interests is restricted by the provisions of the Partnership Agreement and state securities laws.

 

3)                                      Additional Contributions.  If the Subscriber makes any additional Capital Contributions in respect of Class B-2 Units at any time, this Subscription Agreement will be deemed to be amended to include such additional contributions and all representations and warranties made by the Subscriber herein will be deemed repeated with respect to such additional contribution as of the date such contribution is made.  The foregoing representations, warranties and agreements shall survive the date hereof.

 

4)                                      Right of Optional Redemption.  The Partnership shall have the right to redeem the Interests held by the Subscriber, in whole or in part, within 181 days of the date that the Subscriber’s employment with the Companies is terminated, as follows:

 

(a)                                  If the Subscriber’s employment is terminated on or before January 1, 2010, then the Partnership shall be entitled to redeem up to 100% of the Subscriber’s Interests at a redemption price equal to the lesser of (i) the aggregate Capital Contributions made in respect of such Interests and (ii) the Fair Market Value of such Interests.

 

(b)                                 If the Subscriber’s employment is terminated after January 1, 2010, then the Partnership shall be entitled to redeem up to 100% of the Subscriber’s Interests at a redemption price equal to the Fair Market Value of such Interests.

 

(c)                                  Notwithstanding the foregoing clauses (a) though (c), if the Subscriber’s employment with the Companies is terminated for Cause at any time, then the Partnership shall be entitled to redeem up to 100% of the Subscriber’s Interests at a redemption price equal to the lesser of (i) the aggregate Capital Contributions made in respect of such Interests and (ii) the Fair Market Value of such Interests.

 

5)                                      Power of Attorney. The Subscriber, as principal, hereby appoints the General Partner as its true and lawful representative and attorney-in-fact, in its name, place and stead to make, execute, sign, deliver, acknowledge, swear to and file:

 

(a)                                  the Partnership Agreement and thereby to cause the Subscriber to become a limited partner of the Partnership;

 

3

 

(c)                                  any partnership certificate, business certificate, fictitious name certificate, amendment thereto, or other instrument or document of any kind necessary or desirable to accomplish the business, purpose and objectives of the Partnership, or required by any applicable Federal, state or local or foreign law.

 

(d)                                 This power of attorney is coupled with an interest, is irrevocable, and shall survive and shall not be affected by, the subsequent death, disability, incompetency, termination, bankruptcy, insolvency or dissolution of the undersigned; provided, however, that this power of attorney will terminate upon the substitution of another Limited Partner for all of the undersigned’s interest in the Partnership and upon the complete withdrawal of the undersigned from participation in the Partnership.

 

6)  Miscellaneous.

 

(a)                                  Modification.  Neither this Subscription Agreement nor any provisions hereof shall be waived, modified, changed, discharged, or terminated except by an instrument in writing signed by the party against whom any waiver, modification, change, discharge or termination is sought.

 

(b)                                 Revocability.  This Subscription Agreement may not be withdrawn or revoked by the Subscriber in whole or in part without the consent of the General Partner.

 

(c)                                  Counterparts.  This Subscription Agreement may be executed in multiple counterpart copies, each of which shall be considered an original and all of which constitute one and the same instrument binding on all the parties, notwithstanding that all parties are not signatories to the same counterpart.

 

(d)                                 Successors and Assigns.  Except as otherwise provided herein, this Subscription Agreement and all of the terms and provisions hereof shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors, trustees, legal representatives and, in the case of the Partnership, its assigns.  The obligations of the Subscriber, and the agreements, representations, warranties, and acknowledgments herein, shall be binding upon the Subscriber’s heirs, executors, administrators, successors, trustees, legal representatives and permitted assigns.

 

(e)                                  Assignability.  This Subscription Agreement is not transferable or assignable by the Subscriber.

 

(f)                                    Entire Agreement.  Except as stated or referred to herein, this instrument contains the entire agreement of the parties, and there are no representations, covenants or other agreements.

 

(g)                                 Applicable Law.  This Subscription Agreement shall be governed by and construed in accordance with the laws of the State of the New York applicable to agreements made and to be performed in that state.

 

[signature page follows]

 

4

 

IN WITNESS WHEREOF, the Subscriber has executed this Subscription Agreement as of the 3rd day of June, 2009.

 

 

	
 
    	
SUBSCRIBER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Signature
    	
/s/   Eric Jungbluth
    
	
 
    	
 
    
	
 
    	
Print   Name: Eric Jungbluth
    
	
 
    	
 
    
	
 
    	
State   of Residence:
    
	
 
    	
 
    
	
 
    	
Subscriber’s   Taxpayer I.D. No.: [Intentionally Omitted]
    
	
 
    	
 
    
	
 
    	
Subscriber’s   address for notices:
    
	
 
    	
[Intentionally   Omitted]
    
	
 
    	
 
    
	
 
    	
 
    

 

 

	
SUBSCRIPTION ACCEPTED AS   OF June 3, 2009
    
	
 
    
	
CPG INTERNATIONAL HOLDINGS   LP
    
	
By: CPG Holding I LLC
    
	
Its General Partner
    
	
 
    
	
/s/ Amy C. Bevacqua
    	
 
    
	
By: Amy C. Bevacqua
    
	
 
    	
  Vice President
    
			

 

 

SCHEDULE 1

 

Capital Contribution

 

	
Subscriber
    	
 
    	
Amount of Capital
   Contribution
    	
 
    	
Number of Class
   B-2 Units
    	
 
    	
Type of Capital
   Contribution
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Eric Jungbluth
    	
 
    	
$
    	
400.00
    	
*
    	
40
    	
 
    	
Cash
    
								

 

*  Purchase price is equal to $10.00 per unit.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]