Document:

ex10-1.htm

    
      

    

    Exhibit
10.1

     

    
      

      BROWN
& BROWN, INC.

      

      EMPLOYMENT
AGREEMENT

      

      THIS EMPLOYMENT AGREEMENT is
entered into by and between BROWN & BROWN, INC.,
hereinafter called the "Company," and J. HYATT BROWN, hereinafter
called "Employee," effective July 1, 2009.

      

      BACKGROUND

      

      Employee is the Chairman of the
Company.  Employee previously also served as Chief Executive Officer
of the Company, until Employee’s retirement from that position effective July 1,
2009.  The Company desires to continue to obtain the benefit of
services by the Employee, and the Employee desires to continue to render
services to the Company.

      

      Accordingly, in consideration of the
mutual covenants and representations set forth below, the Company and Employee
agree as follows:

      

      TERMS

      

      1.           Definitions.  "Company"
means Brown & Brown, Inc. and with respect to paragraph 9, hereof, also
means its subsidiaries, affiliated companies and any company operated or
supervised by the Company, as well as any successor entity formed by merger or
acquisition, including any company that may acquire a majority of the stock of
Brown & Brown, Inc.  "Employee" means J. Hyatt Brown and with
respect to paragraph 10 hereof also means any company or business in which
Employee has a controlling or managing interest.

      

      2.           Employment. The
Company hereby employs or continues to employ Employee upon the terms and
conditions set forth in this Agreement.

      

      3.           Term.  The
term of the Agreement shall be continuous until terminated by either party as
provided herein.  This Agreement supersedes all prior employment
agreements or arrangements existing as between the Company and the
Employee.

      

      4.           Extent of
Duties.  At the time of execution of this Agreement, Employee
shall be continuing to serve as Chairman of the Board of the Company and shall
also be employed to render assistance with acquisitions and
recruitment.  Employee shall perform the duties associated with such
position and shall commit such of his time and effort required in completing and
fulfilling those duties and responsibilities commensurate with and like in
amount to the time committed by the Employee in fulfilling the same as of the
execution hereof. During the term of his employment under this Agreement,
Employee shall not directly or indirectly engage in the insurance business in
any of its phases, either as a broker, agent, solicitor, consultant or
participant, in any manner or in any firm or corporation engaged in the business
of insurance or re-insurance, except for account of the Company or as agreed by
the Company.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      5.   Compensation.  During
the term of this Agreement, Employee shall be compensated in such amount as is
mutually agreed upon between Company and Employee. The Employee shall
participate in and receive comparable benefits as are provided by the Company to
its other personnel from time to time.

      

      6.           Termination.  This
Agreement may be terminated:

      

      
        	
                 
      

              	
                (a)

              	
                by
      mutual consent of the Company and
Employee;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                by
      Employee upon thirty (30) days written notice to the Company;
      or

              

      

      

      
        	
                 
      

              	
                (c)

              	
                by
      the Company upon thirty (30) days written notice to
    Employee.

              

      

      

      Termination of Employee's employment
under this Agreement shall not release either Employee or the Company from
obligations hereunder arising or accruing through the date of such termination
nor from the post-termination provisions of this
Agreement.  Termination may be without cause and no cause need be
stated in notice of termination.  On notice of termination of or by
the Employee, the Company has the power to suspend the Employee from all duties
on the date notice is given, and to immediately require return of all
Confidential Information as described in the Agreement.

      

      7.           Confidential Information;
Non-Piracy Covenants.  (a)  Employee recognizes and
acknowledges that the Confidential Information (as hereafter defined)
constitutes valuable, secret, special, and unique assets of
Company.  Employee covenants and agrees that, during the term of this
Agreement and following termination (whether voluntary or involuntary), he or
she will not disclose the Confidential Information to any person, firm,
corporation, association, or other entity for any reason or purpose without the
express written approval of Company and will not use the Confidential
Information except in Company's business.  It is expressly understood
and agreed that the Confidential Information is the property of Company and must
be immediately returned to Company upon demand therefor.  The term
Confidential Information includes each, every, and all written documentation
related to Company or its business that is not public information, whether
furnished by Company or compiled by Employee, including but not limited
to:  (1)  lists of the Company's customers, companies,
accounts and records pertaining thereto; (2)  customer lists, prospect
lists, policy forms, and/or rating information, expiration dates, information on
risk characteristics, information concerning insurance markets for large or
unusual risks, and all types of written information customarily used by Company
or available to the Employee; (3)  information related to any of
Company's programs and marketing strategies; (4)  information known to
Employee but not reduced to written or recorded form; (5) underwriting
information received from customers; and (6) Employee's recollection of
Confidential Information.

      

      (b)           For
a period of three (3) years following termination of Employment (whether
voluntary or involuntary), Employee specifically agrees not to solicit, accept,
nor service, directly or indirectly, as insurance solicitor, insurance agent,
insurance broker, insurance wholesaler, managing general agent, consultant, or
otherwise, for Employee's accounts or the accounts of any other agent, or
broker, or insurer, either as officer, director, stockholder, owner, partner,
employee, promoter, consultant, manager, or otherwise, any insurance or bond
business of any kind or character from any person, firm, corporation, or other
entity, that is a customer or account of the Company during the term of this
Agreement or from any prospective customer or account to whom the Company made
proposals while Employee was employed by Company.  Should a court of
competent jurisdiction declare any of the covenants set forth in this paragraph
unenforceable due to an unreasonable restriction of duration, geographical area
or otherwise, each of the parties hereto agrees that such court shall be
empowered to rewrite or reform any such covenant and shall grant Company
injunctive relief reasonably necessary to protect its interest.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (c)           Employee
agrees that Company shall have the right to communicate the terms of this
Agreement to any third parties, including but not limited to, any past, present
or prospective employer of Employee.  Employee waives any right to
assert any claim for damages against Company or any officer, employee or agent
of Company arising from disclosure of the terms of this paragraph.

      

      (d)           In
the event of the breach or threatened breach of the provisions of this
paragraph, Company shall be entitled to injunctive relief as well as any other
applicable remedies at law or in equity.

      

      8.           Organizing Competitive
Businesses; Soliciting Company Employees.  Employee agrees that
so long as he is working for Company he will not undertake the planning or
organizing of any business activity competitive with the work he
performs.  Employee acknowledges that the Company has made a
significant investment in developing and training a competent work
force.  Employee agrees that he will not, for a period of two (2)
years following termination of employment with Company, directly or indirectly,
solicit any of the Company's employees to work for Employee or any other
competitive company.

      

      9.           Protection of Company
Property.  All records, files manuals, lists of customers,
blanks, forms, materials, supplies, computer programs and other materials
furnished to the Employee by the Company, used by him on its behalf, or
generated or obtained by him during the course of his employment, shall be and
remain the property of Company.  Employee shall be deemed the bailee
thereof for the use and benefit of Company and shall safely keep and preserve
such property, except as consumed in the normal business operations of
Company.  Employee acknowledges that this property is confidential and
is not readily accessible to Company's competitors.  Upon termination
of employment hereunder, the Employee shall immediately deliver to Company or
its authorized representative all such property, including all copies, remaining
in the Employee's possession or control.

      

      10.         Attorney Fees and
Expenses.   The Company shall pay all legal fees and
related expenses (including the costs of experts, evidence and counsel) incurred
by the Employee as they become due as a result of the Employee seeking to obtain
or enforce any right or benefit provided by this Agreement or by any other plan
or arrangement maintained by the Company under which the Employee is or may be
entitled to receive benefits.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      11.         Successors and
Assigns.

      

      (a)           This
Agreement shall be binding upon and shall inure to the benefit of the Company,
its successors and assigns and the Company shall require any successor or assign
to expressly assume and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform it if no such
succession or assignment had taken place. The term “Company” as used herein
shall include such successors and assigns.  The term “successors and
assigns” as used herein shall mean a corporation or other entity acquiring all
or substantially all the assets and business of the Company (including this
Agreement) whether by operation of law or otherwise.

      

      (b)           Neither
this Agreement nor any right or interest hereunder shall be assignable or
transferable by the Employee, his beneficiaries or legal representatives, except
by will or by the laws of descent and distribution.  This Agreement
shall inure to the benefit of and be enforceable by the Employee’s legal
personal representative.

      

      12.         Notices.  Any
notices required or permitted to be given under this Agreement shall be
sufficient in writing and if sent by Certified Mail to:

      

      Employee at:

      

      220 South Ridgewood
Avenue

      Daytona Beach,
Florida  32115

      

      and to the Company at:

      

      3101 W. Martin Luther King, Jr. Blvd.,
Ste. 400

      Tampa,
Florida  33607

      Attn:  Chief Corporate
Counsel

      

      or such
other address as either shall give to the other in writing for this
purpose.

      

      13.         Waiver of
Breach.  The waiver of either party of a breach of any
provision of the Agreement shall not operate or be construed as a waiver of any
subsequent breach by the other party.

      

      14.         Entire
Agreement.  This instrument contains the entire Agreement of
the parties.  All contracts entered into which are dated prior to this
Agreement are considered null and void.  Employee agrees that no
verbal or other statement; inducement or representation relied upon by Employee
for the execution of this Agreement has been made to Employee which is not
contained in this Agreement.  This Agreement may not be changed orally
but only by an agreement in writing signed by the party against whom enforcement
of any waiver, change, modification, extension or discharge is
south.  A waiver by Company of any condition or term in this Agreement
shall not be construed to have any effect on the remaining terms and conditions
nor shall said waiver, if any, be construed as permanent or binding for the
future.

      

      15.         Florida Law to Govern;
Venue. This Agreement shall be governed by and construed according to the
laws of the State of Florida without giving effect to the conflict of law
principles thereof.  Any action brought by any party relating to this
Agreement shall be brought and maintained in a court of competent jurisdiction
in Volusia County, Florida.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

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

      

      

      
        
          
            
              
                
                  
                    
                      
                        	
                                WITNESSES:

                              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                                 
      

                              	 
      	/s/
      J. Hyatt Brown	 
      
	 
      	 
      	
                                J.
      HYATT BROWN

                              	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                                 
      

                              	 
      	 
      	 
      	 
      
	
                                as
      to Employee

                              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                                WITNESSES:

                              	 
      	
                                BROWN
      & BROWN, INC.

                              	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                                 
      

                              	 
      	
                                By:

                              	/s/
      Jim Henderson	 
      
	 
      	 
      	 
      	
                                Jim
      Henderson

                              	 
      
	 
      	 
      	 
      	
                                Vice
      Chairman and

                              	 
      
	 
      	 
      	 
      	
                                Chief
      Operations Officer

                              	 
      
	
                                 
      

                              	 
      	 
      	 
      	 
      
	
                                as
      to Brown & Brown

                              	 
      	 
      	 
      	 
      

                      

                    

                  

                

              

            

          

        

      

       

       

       

      5ex10-2.htm

    
      
Exhibit
10.2

     

     

    
      Management
Incentive Plan

       

      2008
Plan Summary

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Introduction
and Objectives

       

      The
Management Incentive Plan (MIP) is designed to recognize and reward management
for their collective and individual contributions to Beneficial Bank’s
success.  The plan focuses on performance measures that are critical
to the Bank’s growth and profitability.

       

      This
document summarizes the elements and features of the Plan.

       

      The
objectives of the MIP are to:

       

      
        
          
            
              
                
                  
                    
                      	 
      	
                              ●

                            	
                              Reward
      results, not effort.

                            
	 	 	 
	 
      	
                              ●

                            	
                              Align
      the Bank’s Strategic Plan, Budget, and Shareholder interests with
      executive performance.

                            
	 	 	 
	 
      	
                              ●

                            	
                              Motivate
      and reward executives for achieving /exceeding performance
      goals.

                            
	 	 	 
	 
      	
                              ●

                            	
                              Align
      pay with Bank and individual performance.

                            
	 	 	 
	 
      	
                              ●

                            	
                              Position
      Beneficial Savings’ total compensation to be competitive with the
      market.

                            
	 	 	 
	 
      	
                              ●

                            	
                              Enable
      the Bank to attract and retain talent needed to drive Bank
      success.

                            
	 	 	 
	 
      	
                              ●

                            	
                              Encourage
      teamwork across the
Bank.

                            

                    

                  

                

              

            

          

        

      

       

      Compensation
Philosophy

       

      Beneficial
Savings Bank’s compensation philosophy is to provide competitive compensation
that enables the organization to drive the business’ growth.  The MIP
provides an opportunity to earn extra compensation beyond base salary when we
meet or exceed our performance goals as well as recognize and reward individual
contributions toward our success.  Base salaries are designed to be
competitive with market practice (i.e. 50th
percentile), with incentive awards targeted to provide competitive compensation
when performance goals are met.  However, since incentives reflect
performance, actual total cash is designed to be variable - ranging from “below
market” positioning if goals are not achieved, to “above market” (e.g., 75th
percentile) for superior performance.

       

      Eligibility

       

      Eligibility
to participate in the plan will be limited to those senior leaders who are in a
position to successfully execute Beneficial’s Strategic plan resulting in
increased shareholder value, and superior employee and customer
satisfaction.  Participants must be employed by September
30.  Employees who work a partial year will receive pro-rated awards
based on hours worked.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      Performance
Period

       

      The
performance period and the plan operates on a calendar year basis (January 1 -
December 31).

       

      Incentive
Award Opportunity

       

      Each
participant will have a target incentive opportunity based on competitive market
practice for his/her role.  The target incentive will reflect a
percentage of base salary and be determined consistent with competitive market
practices.  Actual awards will vary based on performance and range
from 0% of target (not achieving minimal performance) to 150% of target for
exceptional performance.

       

      The
table below shows competitive incentive ranges, which reflect market practice
for banks of similar size as Beneficial.  These incentive targets will
be reviewed annually to ensure they remain competitive and
appropriate.

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        2008
      Incentive Targets

                                      
	
                                         

                                         

                                        Role

                                      	
                                         

                                         

                                        Below
      Threshold

                                      	
                                        Threshold

                                        (90%
      of Target)

                                      	
                                         

                                        Target

                                        (100%)

                                      	
                                         

                                        Stretch

                                        (115%
      of Target)

                                      
	
                                        President
      & CEO

                                      	
                                        0%

                                      	
                                        20%

                                      	
                                        40%

                                      	
                                        60%

                                      
	
                                        Executive
      Vice President

                                      	
                                        0%

                                      	
                                        13%

                                      	
                                        25%

                                      	
                                        38%

                                      
	
                                        Senior
      Vice President

                                      	
                                        0%

                                      	
                                        13%

                                      	
                                        25%

                                      	
                                        38%

                                      
	
                                        Vice
      President

                                      	
                                        0%

                                      	
                                        10%

                                      	
                                        20%

                                      	
                                        30%

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      Performance
Measures

       

      For
2008, there will be two categories of performance measures in the plan: Bank
performance and Individual Performance.  Each participant will have
two Bank goals and 2-3 additional individual goals as follows:

       

      Bank
Goals: For
2008, the Bank goals will focus on EPS and Efficiency Ratio.  These
are core measures of profitability and efficiency of
resources.

       

      Individual
performance: Each
participant will have 2-3 individual performance goals that reflect required
contributions specific to their functional area (e.g. lending growth, deposit
growth).

       

      The
specific goals and weights will be reviewed each year to reflect specific
strategic priorities and financial objectives.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      For
2008, performance will be weighted as follows:

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	 
      	
                                                  Bank
      Performance

                                                	
                                                  Individual
      Goals

                                                
	
                                                  Role

                                                	
                                                  EPS

                                                	
                                                  Efficiency
      Ratio

                                                	
                                                  1-2
      goals vary by executive

                                                
	
                                                  President
      & CEO

                                                	
                                                  50%

                                                	
                                                  30%

                                                	
                                                  20%

                                                
	
                                                  Executive
      Vice President & CFO

                                                	
                                                  50%

                                                	
                                                  30%

                                                	
                                                  20%

                                                
	
                                                  Executive
      Vice President

                                                	
                                                  30%

                                                	
                                                  20%

                                                	
                                                  50%

                                                
	
                                                  Senior
      Vice President

                                                	
                                                  30%

                                                	
                                                  20%

                                                	
                                                  50%

                                                
	
                                                  Vice
      President

                                                	
                                                  20%

                                                	
                                                  10%

                                                	
                                                  70%

                                                

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
            	
                    ●

                  	
                    Bank
      performance will be based on a quantitative assessment of
      performance (EPS and efficiency ratio).  Each goal will have a
      defined range of performance (defined threshold, target, and stretch
      goals).  At the end of each plan year, Bank performance will be
      assessed based on the achievement relative to the defined performance
      goals.  Actual payouts will vary based on performance and can
      range from 0% (if threshold performance is not achieved) to 150% of target
      award (if all goals reach stretch level of performance).  Actual
      awards will be prorated as appropriate to reward continuous
      improvement.  Actual awards will vary each year based on Bank
      performance.

                  

          

        

      

       

      Each
participant will have his/her own performance scorecard with the two bank goals
(consistent for all participants) and the additional individual performance
measures, as appropriate for each participant.

       

      Payouts

       

      Payouts
will be made in cash after Beneficial Savings Bank’s financial results and
performance are known for the annual performance period.  Awards will
be determined based on a combination of Bank performance and individual
performance.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      Terms
and Conditions

      
        
          

        

      

      
        

        Participation

      

       

      Participants
are selected by the Chairman and CEO and approved by the Compensation Committee
of the Board of Directors.  New employees must be employed by
September 30 of the plan year (January 1 - December 31) to be eligible for that
year’s incentive and will receive a prorated award.

       

      Effective
Date

       

      This
Program is effective January 1, 2008 to reflect plan year January 1, 2008 to
December 31, 2008.  The Plan will be reviewed annually by the Bank’s
Compensation Committee of the Board of Directors to ensure proper alignment with
the Bank’s business objectives.  Beneficial Bank retains the rights as
described below to amend, modify or discontinue the Plan at any time during the
specified period.  The Incentive Plan will remain in effect until
December 31, 2008.

       

      Program
Administration

       

      The
Program is authorized by the Compensation Committee of the Board of Directors,
and administered by the Chairman & CEO and Human Resources.

       

      Program
Changes or Discontinuance

       

      Beneficial
Bank has developed the Plan based on existing business, market and economic
conditions; current services; and staff assignments.  If substantial
changes occur that affect these conditions, services, assignments, or forecasts,
Beneficial Savings Bank 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 the
Plan as it deems appropriate.

       

      Incentive
Award Payments

       

      Awards
will be paid as a cash bonus before the end of the first quarter following the
Plan year.  Awards will be paid out as a percentage of a participant’s
effective base salary as of December 31 for a given calendar
year.  Incentive awards will be considered taxable income to
participants in the year paid and will be subject to withholding for required
income and other applicable taxes.

       

      New
Hires, Reduced Work Schedules, Promotions, and Transfers

       

      Participants
who are not employed by Beneficial Bank at the beginning of the Plan year will
receive a pro rata incentive award based on their length of employment during a
given year.  Employees hired after September 30 will not be eligible
to participate until the next plan year.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      If
a participant changes his/her role or is promoted during the Plan year such that
the incentive target changes, he/she will be eligible for the new role’s target
opportunity on a pro rata basis (i.e. the award will be prorated based on the
number of months employed in the respective positions.)

       

      In
the event of an approved leave of absence, the award opportunity level for the
year will be adjusted to reflect the time in active status.  For
example, a participant on leave status for 13 weeks during a Plan year will have
his or her calculated award reduced by one-fourth (13 weeks/52 weeks) to reflect
the period of leave.

       

      Termination
of Employment

       

      If
a Plan participant is terminated by the Bank, no incentive award will be
paid.  Participants must be an active employee of the Bank on the date
the incentive is paid to receive an award.  (See exceptions for death,
disability and retirement below.)

       

      Disability,
Death or Retirement

       

      If
a participant is disabled by an accident or illness, his/her bonus award for the
Plan period will be prorated so that the award is based on the period of active
employment only (i.e. the award will be reduced by the period of time of
disability).

       

      In
the event of death, Beneficial Savings Bank will pay to the participant’s estate
the pro rata portion of the award that had been earned by the participant as of
the date of death.

       

      Individuals
who retire will receive a prorated payout based on the period of active
employment only (i.e. pro-rated as of the date of retirement).

       

      Ethics
and Interpretation

       

      If
there is any ambiguity as to the meaning of any terms or provisions of this plan
or any questions as to the correct interpretation of any information contained
therein, the Bank’s interpretation expressed by the CEO and/or 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 the employee to disciplinary action up to and including termination of
employment.  In addition, any incentive compensation as provided by
the plan to which the employee would otherwise be entitled will be
revoked.

       

      Participants
who have willfully engaged in any activity, injurious to the Bank, will upon
termination of employment, death, or retirement, forfeit any incentive award
earned during the award period in which the termination occurred.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      Miscellaneous

       

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

       

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

       

      This
incentive plan and the transactions and payments hereunder shall, in all
respect, be governed by, and construed and enforced in accordance with the laws
of the state of Pennsylvania.

       

      Each
provision in this Plan is severable, and if any provision is held to be invalid,
illegal, or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not, in any way, be affected or impaired
thereby.

       

      This
plan is proprietary and confidential to Beneficial Bank and should not be shared
outside the organization.

       

       

      7

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