Document:

EXHIBIT 10.2

 

AMENDMENT TO ORLEANS HOMEBUILDERS, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

Effective as of December 4, 2008 or such other date or dates as
specified herein

 

WHEREAS, the Board of Directors (the “Board”) of
Orleans Homebuilders, Inc. (the “Company”) has determined that it is
appropriate to amend the Orleans Homebuilders, Inc. Supplemental Executive
Retirement Plan (the “Plan”) in order to clarify the manner in which years of
participation are to be calculated for certain purposes and to modify the
manner in which certain benefit accruals are determined; and

 

WHEREAS, the Company has the right, pursuant to Section 10
of the Plan, to amend the Plan, subject to certain limitations not applicable
here;

 

NOW, THEREFORE, the Plan is hereby amended as
follows:

 

1.                                      A new Section 2.26
is hereby added to the Plan (and Sections 2.26 and 2.27 of the Plan are hereby
redesignated as Sections 2.27 and 2.28, respectively) in order to clarify the
vesting provisions of the Plan as originally intended, to read:

 

“2.26                     “Year of Participation,” as
that phrase is used in the Plan, whether or not capitalized, means each year of
actual participation in the Plan, measured in all cases by taking into accounts
only those periods during which the Participant was designated as a
Participant, which cannot, therefore, commence prior to September 1, 2005,
the Effective Date of the Plan, an shall be interpreted so that the earliest
date as of which a Participant can be credited with five (5) Years of
Participation shall be September 1, 2010.”

 

2.                                      In all other
respects, the Plan shall remain in full force and effect.

 

 

	
   

  	
  ORLEANS HOMEBUILDERS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL T. VESEYEXHIBIT 10.3

 

AMENDMENT TO ORLEANS HOMEBUILDERS, INC.

EXECUTIVE COMPENSATION DEFERRAL PLAN

 

Effective as of January 1, 2009, or as of such other date or dates
as specified herein

 

WHEREAS, the Board of Directors (the “Board”) of
Orleans Homebuilders, Inc. (the “Company”) has determined that it is
appropriate to amend the Orleans Homebuilders, Inc. Executive Compensation
Deferral Plan (the “Plan”) with respect to certain of the Plan’s provisions
regarding the distribution of benefits in connection with the availability of a
transitional rule related to compliance with Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”); and

 

WHEREAS, the Company has the right, pursuant to Section 10
of the Plan, to amend the Plan, subject to certain limitations not applicable
here;

 

NOW, THEREFORE, the Plan is hereby amended as
follows:

 

1.                                      Effective as of
January 1, 2009, Section 7.1 is hereby amended by the addition at the
end thereof of the following two sentences:

 

“In the event, pursuant to the preceding provisions of this Section 7.1
distribution of a Participant’s Account would be distributed in the form of a
lump sum following the Participant’s separation from service after having
attained at least age 60 (other than by reason of death or Disability), and the
Participant has specified in a timely filed election to have his or her Account
distributed on “Retirement” in a series of installments in lieu of a lump sum
distribution, then the distribution shall be made consistent with such
Retirement distribution election.  The
form of Retirement election and the permissible installments available for
these purposes shall be established by the Committee at its discretion.”

 

2.                                      Effective as
set forth below, Section 7.7 is hereby amended by the addition at the end
thereof of the following Sentence:

 

“Notwithstanding the foregoing, effective with regard to distribution
elections filed with regard to deferrals of compensation earned after 2008,
each Participant’s deferred compensation benefit shall be distributed upon the
occurrence of a Change of Control in a single lump sum as soon as practicable
following the occurrence of the Change of Control unless the Participant has
expressly elected not to have an accelerated distribution by reason of the
occurrence of a Change of Control.”

 

3.                                      Effective as of
December 1, 2008, to the extent permitted under applicable transitional rules issued
by the IRS and or Treasury pursuant to Section 409A, a new Section 7.8
is hereby added at the end of Section 7, to read:

 

 

“7.8  TRANSITIONAL RULE
ELECTIONS.  Notwithstanding anything to
the contrary herein, the Committee may make available to Participants in the
Plan an election form that may be used, consistent with the transitional
guidance issued by the IRS regarding Code Section 409A and the ability to
modify distribution elections regarding time and manner of distributions that
would otherwise be made after 2008, so long as the election is filed and
irrevocable on or before December 31, 2008 and so long as the new time and
manner of distribution elected does not call for any payments to be made prior
to 2009 that would otherwise have been made after 2008.  Available elections as to time and manner of
payment shall be determined at the discretion of the Committee, but it is anticipated
that the elections permitted under this Section 7.8 will provide each
Participant with the ability to elect to have his or her Account distributed in
a lump sum on or about a specified date in 2009, and an opportunity to make a
new election regarding distributions in the event there is a Change of Control.”

 

4.                                      In all other
respects, the Plan shall remain in full force and effect.

 

 

	
   

  	
  ORLEANS HOMEBUILDERS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL T. VESEY

  

 

2EXHIBIT
10.4

 

[ORLEANS
HOMEBUILDERS, INC. LETTERHEAD]

 

December 5, 2008

 

Garry P. Herdler

c/o 3333 Street Road

Suite 101

Bensalem, PA 19020

 

Re:          Orleans
Homebuilders, Inc. Restricted Stock

 

Dear Garry:

 

As you know, Orleans Homebuilders, Inc.
(the “Company”) granted to you 250,000 shares of restricted stock pursuant to a
Restricted Stock Award dated as of December 4, 2008 (the “Restricted Stock”).  The Restricted Stock is being issued pursuant
to Registration Statement No. 333-151168 on Form S-8 which registered
1,600,000 shares of the Company’s Common Stock issuable under the Plan. 
At the time the grant was made, the Company’s Compensation Committee also
determined that the Company should pay to you a tax gross-up with respect to
income taxes payable by you as a result of the vesting of the Restricted Stock.

 

The purpose of this letter is to confirm to
you that, from time to time as of the date any amounts are required to be taken
into account as income to you for income tax purposes by reason of the vesting
of the Restricted Stock, the Company will pay to you an additional cash
payment (a “Gross-Up Payment”) sufficient to pay all of your federal, state and
local income taxes on such income taken into account by reason of the vesting
of the Restricted Stock from time to time and on the Gross-Up Payment
itself.   For purposes of calculating the
amounts payable by the Company hereunder, with respect to income taxes to which
you are subject, you shall be deemed to pay income taxes at the highest
applicable marginal rate of federal, state or local income taxation for the
calendar year in which the payments are made regardless of the amount of taxes
actually paid.  To implement the
foregoing, with respect to the vesting of each tranche of Restricted Stock, the
Company shall pay to the appropriate federal, state and/or local taxing
authorities, on your behalf, all amounts required under applicable laws and/or
regulations to be withheld and paid over by the Company with respect to
federal, state and/or local tax liabilities no later than the earlier of (i) the
last business day of the calendar year in which the applicable tranche vested
and (ii) 30 days after the applicable tranche has vested.  The amounts so paid shall in general be
considered to be a payment of all or a portion of your Gross-Up Payments.  Within 60 days after the vesting of the
applicable tranche giving rise to the Company’s obligation to make the Gross-Up
Payment, the Company shall pay to you any portion of a Gross-Up Payment to
which you may be entitled that was not paid as tax withholding.

 

 

If you should have any questions about this
letter, please do not hesitate to contact me.

 

	
   

  	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ MICHAEL
  T. VESEY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Michael T.
  Vesey

  
	
   

  	
   

  	
   

  
	
  Agreed to
  and acknowledged:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ GARRY P.
  HERDLER

  	
   

  	
   

  
	
  Garry P.
  Herdler

  	
   

  	
   

  

 

2EXHIBIT 10.5

 

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

 

THIS FIRST AMENDMENT TO EMPLOYMEENT AGREEMENT, made as of this 5th day
of December, 2008, is between Orleans Homebuilders, Inc., a Delaware
corporation, with offices at 3333 Street Road, Suite #101, Bensalem,
Pennsylvania 19020 (the “Company” or “Orleans”), and Garry Herdler, an individual (hereinafter
called “Employee”).

 

BACKGROUND

 

As of February 27, 2007, the Company and Employee
entered into an Employment Agreement pursuant to which Employee was employed by
the Company as Executive Vice President and Chief Financial Officer (the “Original Agreement”).

 

The Company desires to continue to employ Employee as
Executive Vice President and Chief Financial Officer, and Employee desires to
continue to be so employed on the terms and conditions contained in the
Original Agreement, subject only to the changes contained in this First
Amendment.

 

The Company and Employee desires to amend the Original
Agreement in certain respects to reward Employee for strong performance of his
duties and to encourage longer term retention through certain incentives.

 

Certain provisions of the Original Agreement may be treated
as providing for payments that are in the nature of “nonqualified deferred
compensation,” as that phrase is used for purposes of Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”), the modification of such arrangements in order to comply with
applicable provisions of the Code is permitted during a transitional period
that ends as of December 31, 2008 and Employee and the Company desire to
make certain amendments pursuant thereto.

 

NOW THEREFORE, in consideration of the promises and the mutual
covenants and agreements contained herein, and intending to be legally bound
hereby, the parties hereto agree as follows:

 

AMENDMENTS

 

1.               Section 2.1(a) of
the Original Agreement is hereby amended and restated to read in its entirety
as follows:

 

Base Salary.  As compensation for Employee’s services
hereunder, the Company shall pay to Employee for Fiscal Years (hereinafter
defined) 2007 and 2008 an annual base salary of Four Hundred Fifty Thousand
Dollars ($450,000), which annual salary shall increase to Six Hundred Fifty
Thousand Dollars ($650,000) retroactively effective as of July 1, 2008,
and increase to Six Hundred Seventy Five Thousand Dollars ($675,000) for Fiscal
Years 2010, 2011, 2012 and thereafter (the “Base
Salary”), commencing July 1st of

 

 

each such fiscal year. 
For Fiscal Year 2013 and thereafter, if applicable, the parties shall discuss
whether Employee’s base salary shall be increased.  Employee’s base salary shall be payable in
accordance with the Company’s regular payroll practices in effect from time to
time during Employee’s employment, but not less frequently than monthly.  The Company’s fiscal year runs from July 1
through June 30 (“Fiscal Year”) so that, for example, Fiscal Year 2009 runs from July 1, 2008
through June 30, 2009.

 

2.               Section 2.1(b)(i) of
the Original Agreement is hereby amended and restated to read in its entirety
as follows:

 

The Company shall pay Employee a Signing Bonus in the
amount of $900,000, payable as follows:  (a) $250,000
payable ten (10) days after the Effective Date or the business day
immediately following such tenth day if not a business day; (b) $250,000
payable on the first anniversary of the Effective Date: (c) $250,000
payable on or before December 31, 2008; and (d) $150,000 payable on
the third anniversary of the Effective Date. 
Except as described in Section 2.7 (a) and (c), in order to
receive each of the four Signing Bonus payments, Employee must be employed by
the Company on the date of the relevant Signing Bonus payment is required to be
made.

 

3.               Section 2.1(b)(ii)a.
of the Original Agreement is hereby amended and restated to read in its
entirety as follows:

 

a.                                       The
Company shall pay Employee a “Guaranteed Minimum Bonus”
pursuant to the following schedule for Fiscal Year 2007 through Fiscal Year
2011:

 

	
  Period

  	
   

  	
  Guaranteed Minimum

  Bonus

  	
   

  	
  Payment Dates

  	
   

  
	
  Fiscal Year 2007 (Effective Date through
  June 30, 2007)

  	
   

  	
  $

  	
  150,000

  	
   

  	
  100% on July 1, 2007

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year 2008 (July 1, 2007 through
  June 30, 2008)

  	
   

  	
  $

  	
  300,000

  	
   

  	
  50% on December 31, 2007 and 50% on June 30, 2008

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year 2009 (July 1, 2008 through
  June 30, 2009)

  	
   

  	
  $

  	
  300,000

  	
   

  	
  50% on December 31, 2008 and 50% on June 30, 2009

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year 2010 (July 1, 2009 through
  June 30, 2010)

  	
   

  	
  $

  	
  350,000

  	
   

  	
  50% on December 31, 2009 and 50% on June 30, 2010

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year 2011 (July 1, 2010 through
  June 30, 2011)

  	
   

  	
  $

  	
  350,000

  	
   

  	
  50% on December 31, 2010 and 50% on June 30, 2011

  	
   

  

 

2

 

Except as described in Section 2.7(a) and
(c), Employee must be employed by the Company on each Payment Date for the
Employee to receive the Guaranteed Minimum Bonus payable on that date.

 

4.              The definition of “Annual Bonus”
contained in Section 2.1(b)(iii)(a) is hereby amended to provide that
when determining the amount of Annual Bonus, if any, payable with respect to
any particular Fiscal Year, the amount of any Guaranteed Minimum Bonus payable
with respect to such Fiscal Year shall be deducted from the amount otherwise
payable as an Annual Bonus for such Fiscal Year.

 

5.              Section 2.1(b)(iv) of
the Original Agreement is hereby amended and restated to read in its entirety
as follows:

 

(iv)  Aggregate Minimum Compensation.  For clarification purposes only, the
following chart represents Employee’s total minimum compensation (i.e., the sum
of Employee’s Base Salary, Signing Bonus and Guaranteed Minimum Bonus) for each
fiscal year through Fiscal Year 2011 assuming Employee remains continuously
employed by the Company through the end of Fiscal 2011:

 

	
   

  	
   

  	
  Fiscal Year

  2007

  	
   

  	
  Fiscal Year

  2008

  	
   

  	
  Fiscal Year

  2009

  	
   

  	
  Fiscal Year

  2010

  	
   

  	
  Fiscal Year

  2011

  	
   

  
	
  Base
  Salary

  	
   

  	
  $

  	
  150,000

  	
   

  	
  $

  	
  450,000

  	
   

  	
  $

  	
  650,000

  	
   

  	
  $

  	
  675,000

  	
   

  	
  $

  	
  675,000

  	
   

  
	
  Signing
  Bonus

  	
   

  	
  $

  	
  250,000

  	
   

  	
  $

  	
  250,000

  	
   

  	
  $

  	
  250,000

  	
   

  	
  $

  	
  150,000

  	
   

  	
  0

  	
   

  
	
  Guaranteed
  Minimum Bonus

  	
   

  	
  $

  	
  150,000

  	
   

  	
  $

  	
  300,000

  	
   

  	
  $

  	
  300,000

  	
   

  	
  $

  	
  350,000

  	
   

  	
  $

  	
  350,000

  	
   

  
	
  Aggregate
  Minimum Compensation

  	
   

  	
  $

  	
  550,000

  	
   

  	
  $

  	
  1,000,000

  	
   

  	
  $

  	
  1,200,000

  	
   

  	
  $

  	
  1,175,000

  	
   

  	
  $

  	
  1,025,000

  	
   

  

 

6.              Section 2.7(a)(ii) of
the Original Agreement is amended and restated to read in its entirety as
follows:

 

Termination Following Change of Control.  If Employee is terminated by
the Company for any reason other than Disability or death within 120 days prior
to, or is terminated by the Company for any reason within one (1) year
following, a Change of Control (as that term is defined in Section 3.6),
or if Employee terminates his employment with the Company for Good Reason
within one (1) year following a Change of Control, the Company shall pay
Employee (to the extent such amounts have not been previously paid pursuant to
an earlier termination under Section 2.7(a)(i)) two (2) times the sum
of Employee’s annual Base Salary (at the rate in effect on the Date of
Termination) and the greater of (I) the Average Annual Bonus or (II) the
Prior Year’s Bonus.  In addition, if 

 

3

 

Employee is terminated without Cause or terminates his
employment for Good Reason during such one-year period, Employee shall be
entitled to the payments and benefits described in Section 2.7(a)(i)(A),
(B), (D) and (E) (to the extent such amounts have not been previously
paid pursuant to an earlier termination under Section 2.7(a)(i)).  The foregoing shall be in lieu of amounts
that would otherwise be payable to Employee under Section 2.7(a)(i)(C) above.  Anything in the Agreement to the contrary
notwithstanding, (X) a termination by the Employee for any reason during
the thirty (30) day period immediately preceding the one (1) year
anniversary of a Change of Control, (Y) a termination of Employee’s
employment within one (1) year following a Change of Control as a result
of Employee’s death, or (Z) a termination of Employee’s employment by the
Company within one (1) year following a Change of Control as a result of
Employee’s Disability, shall each be deemed to be a termination for Good Reason
for all purposes of this Agreement.

 

7.               Section 2.7(a)(v) of
the Original Agreement is hereby amended and restated to read in its entirety
as follows:

 

(v)                                 Notwithstanding
anything in this Agreement to the contrary: 
(x) Employee shall have no right to any payments under Section 2.7(a)(i) if
Employee is terminated by the Company for Cause, if employee terminates his own
employment for other than Good Reason, or if Employee’s employment is
terminated due to his death or Disability; and (y) Employee shall have no
right to any payments under Section 2.7(a)(ii) if Employee terminates
his own employment other than for Good Reason, or except as specifically
provided in Section 2.7(a)(ii), if Employee’s employment is terminated due
to his death or Disability.

 

8.               Section 3.8(b)(i) of
the Original Agreement is hereby amended and restated to read in its entirety
as follows:

 

For a period of sixty (60) days following such termination,
directly or indirectly, engage in (as a principal, shareholder, partner,
director, officer, agent, employee, consultant or otherwise) or be financially
interested in any business operating within any state in the United States in
which the Company is doing business at the time of such termination, which is
primarily engaged in the construction or marketing of any homes (whether single
family, multi-family, owner-occupied, rental or other) or the acquisition or
development of any property for residential purposes; provided, however,
nothing contained in this Section 3.8 shall prevent Employee from holding
for investment no more than one percent (1%) of any class of equity securities
of a company whose securities

 

4

 

are publicly traded on a national securities exchange or in
a national market system;

 

9.              Section 6.10 of the
Employment Agreement is hereby amended by adding a new Section 6.10(e) to
the end thereof to read in its entirety as follows:

 

(e)                                  Notwithstanding
anything in this Section 6.10 to the contrary, all amounts payable to the
Employee as a Gross-Up Payment shall be paid as soon as practicable following
the determination of the amount required to be paid to the Employee, and in no
event later than the end of the calendar year following the calendar year in
which the Employee pays the taxes subject to the “gross-up” provision.  This Section 6.10(e) is intended to
require a time and manner of payment for Gross-Up Payments that is consistent
with the requirements for treatment of such payments as payable at a specified
time for purposes of Code Section 409A, as such requirements are set forth
in Treasury Regulation Section 1.409A-3(i)(1)(v) and shall in all
cases be interpreted consistent with such requirements, or any successor
provisions or guidance regarding compliance with Section 409A of the
Internal Revenue Code.

 

10.        Section 6.12of the
Employment Agreement is hereby amended and restated to read in its entirety as
follows:

 

6.12                        Special
Rules Regarding Section 409A of the Internal Revenue Code.  Notwithstanding anything to the contrary set
forth in this Agreement, all payments of compensation or provision of taxable
benefits that are determined to constitute a form of “nonqualified deferred
compensation” subject to Section 409A of the Internal Revenue Code of
1986, as amended (the “Code”) shall be paid at a time and in a manner that is
consistent with the requirements of that Code Section.  Specifically, any payments or provision of
benefits otherwise required to be made, distributed or otherwise made available
to Employee by reason of Employee’s termination of employment during the six
month period following Employee’s termination of employment shall be deferred
until the six month anniversary of Employee’s termination of employment, but
only to the extent necessary to comply with Section 409A(2)(B)(i) of
the Code.  All other payments and taxable
benefits shall be made available or distributed to Employee at such time(s) as
provided by the applicable provisions of this Agreement.  In the event any payments are deferred until
the six month anniversary of Employee’s termination of employment by reason of
this Section 6.12, those payments shall be made in a single lump sum with
interest, determined by reference to the lesser of 5% or prime rate as
published from time to time in the Money Rates section of the Wall Street Journal. 
References to “termination of employment” shall be interpreted to refer
to events that qualify as a “separation from service” (as that phrase is used
in applicable regulations issued pursuant to Section 409A of the Code) to
the extent such event is the basis for payments of amounts that are treated as
nonqualified deferred compensation subject to Section 409A of the
Code.  To the extent any
reimbursements or in-kind benefits due to

 

5

 

Employee under this Agreement constitutes “deferred compensation” under
Section 409A of the Code, any such reimbursements or in-kind benefits
shall be paid to you in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv).  Each payment made under this Agreement shall
be designated as a “separate payment” within the meaning of Section 409A
of the Code.  The Company shall
consult with Employee in good faith regarding the implementation of the
provisions of this Section 6.12.

 

11.        Employee shall be eligible to
receive a bonus as provided in the Cash Bonus Plan for Garry P. Herdler
approved by the Compensation Committee on December 4, 2008, which Bonus Plan
shall, with respect to Employee, be in addition to and not a replacement of the
Company’s Incentive Compensation Plan.

 

12.        Company
confirms that all bonus income, whether received before, on or after, the date
hereof, and regardless of whether such bonus income is sign-on, guaranteed
minimum bonus, additional bonus or other bonus amounts and whether deferred or
not or elected to be in a non-cash form shall be considered “Recognized Bonus” for purposes of the Company’s Supplemental
Executive Retirement Plan (“SERP”).

 

13.        Except as set forth herein, the terms, conditions and provisions of the Employment Agreement remain unchanged and such
terms, conditions and provisions are hereby confirmed.

 

14.        This Amendment to Employment
Agreement may be executed
in more than one counterpart, each of which shall be an original and all of
which together shall constitute one instrument.

 

IN WITNESS WHEREOF, the Company and the
Employee have caused this Second Amendment to Employment Contract to be
executed as of the date first set forth above.

 

 

	
   

  	
  ORLEANS HOMEBUILDERS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ MICHAEL T. VESEY

  
	
   

  	
   

  	
  Name:

  	
  Michael T. Vesey

  
	
   

  	
   

  	
  Title:

  	
  President & COO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GARRY P. HERDLER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
     /s/ GARRY P. HERDLER

  

 

6

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