Document:

Exhibit 10.2 

 

 

 AGREEMENT

 

This Agreement (the
 “Agreement”) is entered into and is effective as of December 11, 2018 by and between Berkshire Hills Bancorp,
Inc., a Delaware corporation (“Buyer”), Berkshire Bank, a wholly-owned subsidiary of Buyer, SI Financial Group,
Inc. (“Seller”), a Maryland corporation, Savings Institute Bank and Trust Company (“Seller Bank”),
a wholly-owned subsidiary of Seller, and Lauren L. Murphy (the “Executive”).

 

WHEREAS, the
Executive, Seller and Seller Bank are parties to an amended and restated change in control agreement effective as of September
23, 2015 (the “CIC Agreement”); and

 

WHEREAS, Buyer
and Seller are entering into an Agreement and Plan of Merger as of the date hereof (the “Merger Agreement”),
pursuant to which Seller will be merged into Buyer (the “Merger”), and all capitalized terms not defined herein
shall have the meaning set forth in the Merger Agreement; and

 

WHEREAS, the
parties desire to implement measures to prevent any payments or benefits under the CIC Agreement from constituting an excess parachute
payment, as such term is defined under Section 280G of the IRC; and

 

WHEREAS, the
parties desire to set forth the parties’ agreement to certain entitlements and continuing obligations in connection with
the Executive’s termination of employment with Seller and Seller Bank upon completion of the Merger.

 

THEREFORE, in
consideration of the premises and the mutual covenants contained in this Agreement, Buyer, Seller, Seller Bank and the Executive
hereby agree as follows:

 

Section 1.2018
Actions.

 

(a)       The
Executive agrees to exercise all of her vested Company Stock Options prior to January 1, 2019, and Seller agrees to take all actions
necessary to facilitate the exercise of the Executive’s Company Stock Options, including, if requested by the Executive,
amending the Executive’s option award agreements to permit a net settlement to satisfy the exercise price and applicable
tax withholding.

 

(b)       The
Executive agrees to dispose of all shares of Company Common Stock acquired pursuant Section 1(a) of this Agreement upon exercise
of incentive stock options. Such disposition shall occur prior to January 1, 2019.

 

(c)       The
Executive agrees that the compensation income resulting from the exercise of vested stock options and the disposition of shares
of Company Common Stock acquired upon such exercise pursuant to this Section 1 will be excluded from the calculation of severance
or other benefits payable to the Executive, including the Executive’s cash severance payment under the CIC Agreement, the
allocation of shares under the Company ESOP, and benefits payable under the Supplemental Executive Retirement Plan between Seller
Bank and the Executive.

 

     

     

    

 

(d)       Prior
to December 31, 2018, Seller Bank shall make a lump-sum cash payment to the Executive in the amount of $280,000, less applicable
taxes and withholding. The Executive acknowledges that this payment is in partial satisfaction of the cash severance payment that
would otherwise be payable under the CIC Agreement. The remainder of the severance payment due under the CIC Agreement shall be
paid subject to the terms and conditions of the CIC Agreement. The Executive agrees that this payment will be excluded from the
calculation of severance or other benefits payable to the Executive, including the Executive’s cash severance payment under
the CIC Agreement, the allocation of shares under the Company ESOP, and benefits payable under the Supplemental Executive Retirement
Plan between Seller Bank and the Executive.

 

(e)       Seller
and Seller Bank, and their successors and assigns, agree to defend, indemnify and hold the Executive harmless for any additional
taxes, penalties and interest assessed against the Executive pursuant to Section 409A of the IRC and the regulations promulgated
thereunder (“Section 409A”) with regard to the payment to be made under Section 1(d) of this Agreement. Buyer
agrees to pay the Executive an additional payment for any such additional taxes, penalties and interest that may be assessed under
Section 409A, such that, after payment by the Executive of the additional taxes, penalties and interest assessed under Section
409A, the Executive will be in the same economic position that the Executive would have been had such payment not been determined
to be noncompliant with Section 409A.

 

Section 2.Cutback
of Parachute Payments.

 

If any payment or benefit
that the Executive would receive from Seller or Seller Bank, or any affiliate or successor thereto, in connection with the Merger
(collectively referred to as the “Change in Control Benefits”) would (i) constitute a “parachute payment”
under Section 280G of the IRC and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the IRC,
then such Change in Control Benefits shall be reduced to an amount, the value of which is $1.00 less than an amount equal to three
(3) times the Executive’s “base amount,” as determined in accordance with Section 280G of the IRC. In the event
a reduction in payments or benefits constituting “parachute payments” is necessary, reduction shall occur in the following
order: (1) reduction of the cash payments due under the CIC Agreement; (2) reduction of the Supplemental Stock Ownership Benefit
payable pursuant to Section 4.02 of Seller Bank’s Amended and Restated Supplemental Executive Retirement Plan; and (3) reduction
of other benefits paid to the Executive.

 

Section 3.Miscellaneous.

 

(a)       Successors.
The terms of this Agreement shall be binding upon all parties hereto and their respective heirs, successors, and assigns.

 

(b)       Final
Agreement. This Agreement represents the entire understanding of the parties with respect to the subject matter hereof and
supersedes all prior understandings, written or oral. The terms of this Agreement may be changed, modified or discharged only by
an instrument in writing signed by the parties hereto. The Executive acknowledges that the Executive has carefully read the foregoing,
has had sufficient opportunity to review this Agreement with legal counsel of the Executive’s own choosing, knows and understands
this Agreement’s contents, and freely and independently signs this Agreement. No inducements, representations, or agreements
have been made or relied upon to make this Agreement except as stated in this Agreement.

 

    2 

     

    

 

(c)       Governing
Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the Commonwealth
of Massachusetts without regard to principles of conflicts of laws thereof.

 

(d)       Statutory
Changes. All references to sections of the IRC shall be deemed also to refer to any successor provisions to such sections.

 

(e)       Validity.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

 

(f)       No
Assignment of Benefits. Except as otherwise provided herein or by law, no right or interest of the Executive under this Agreement
shall be assignable or transferable, in whole or in part, either directly or by operation of law or otherwise.

 

(g)       Counterparts.
This Agreement may be signed in counterparts, and all of the counterpart copies shall be treated as a single agreement.

 

Section 4.Effectiveness.

 

In the event the Merger
Agreement is terminated for any reason prior to the closing of the Merger, this Agreement shall be of no further force and effect,
except that the obligations of Seller and Seller Bank pursuant to Section 1(e) shall survive the termination of this Agreement.

 

[Signature Page to Follow]

 

    3 

     

    

IN WITNESS WHEREOF,
the parties hereto have duly executed this Agreement as of the day and year first written above.

 

	 	EXECUTIVE	 
	 	 	 	 
	 	 	 	 
	 	/s/ Lauren L. Murphy

	 
	 	 	 	 
	 	 	 	 
	 	BERKSHIRE HILLS BANCORP, INC.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/Richard M. Marotta

	 
	 	 	 	 
	 	Print Name:	Richard M. Marotta, President and CEO

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	BERKSHIRE BANK	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/Richard M. Marotta

	 
	 	 	 	 
	 	Print Name:	Richard M. Marotta, CEO

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	SI FINANCIAL GROUP, INC.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Rheo A. Brouillard

	 
	 	 	 	 
	 	Print Name:	Rheo A. Brouillard

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	SAVINGS INSTITUTE BANK AND TRUST COMPANY	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Rheo A. Brouillard

	 
	 	 	 	 
	 	Print Name:	Rheo A. Brouillard

	 
	 	 	 	 

 

 

    4Exhibit 10.3 

 

 

 AGREEMENT

  

This Agreement (the
 “Agreement”) is entered into and is effective as of December 11, 2018 by and between Berkshire Hills Bancorp,
Inc., a Delaware corporation (“Buyer”), Berkshire Bank, a wholly-owned subsidiary of Buyer, SI Financial Group,
Inc. (“Seller”), a Maryland corporation, Savings Institute Bank and Trust Company (“Seller Bank”),
a wholly-owned subsidiary of Seller, and Laurie L. Gervais (the “Executive”).

 

WHEREAS, the
Executive, Seller and Seller Bank are parties to an amended and restated change in control agreement effective as of September
23, 2015 (the “CIC Agreement”); and

 

WHEREAS, Buyer
and Seller are entering into an Agreement and Plan of Merger as of the date hereof (the “Merger Agreement”),
pursuant to which Seller will be merged into Buyer (the “Merger”), and all capitalized terms not defined herein
shall have the meaning set forth in the Merger Agreement; and

 

WHEREAS, the
parties desire to implement measures to prevent any payments or benefits under the CIC Agreement from constituting an excess parachute
payment, as such term is defined under Section 280G of the IRC; and

 

WHEREAS, the
parties desire to set forth the parties’ agreement to certain entitlements and continuing obligations in connection with
the Executive’s termination of employment with Seller and Seller Bank upon completion of the Merger.

 

THEREFORE, in
consideration of the premises and the mutual covenants contained in this Agreement, Buyer, Seller, Seller Bank and the Executive
hereby agree as follows:

 

Section 1.2018
Actions.

 

(a)       The
Executive agrees to exercise all of her vested Company Stock Options prior to January 1, 2019, and Seller agrees to take all actions
necessary to facilitate the exercise of the Executive’s Company Stock Options, including, if requested by the Executive,
amending the Executive’s option award agreements to permit a net settlement to satisfy the exercise price and applicable
tax withholding.

 

(b)       The
Executive agrees to dispose of all shares of Company Common Stock acquired pursuant Section 1(a) of this Agreement upon exercise
of incentive stock options. Such disposition shall occur prior to January 1, 2019.

 

(c)       The
Executive agrees that the compensation income resulting from the exercise of vested stock options and the disposition of shares
of Company Common Stock acquired upon such exercise pursuant to this Section 1 will be excluded from the calculation of severance
or other benefits payable to the Executive, including the Executive’s cash severance payment under the CIC Agreement, the
allocation of shares under the Company ESOP, and benefits payable under the Supplemental Executive Retirement Plan between Seller
Bank and the Executive.

 

 

     

     

    

 

Section 2.Cutback
of Parachute Payments.

 

If any payment or benefit
that the Executive would receive from Seller or Seller Bank, or any affiliate or successor thereto, in connection with the Merger
(collectively referred to as the “Change in Control Benefits”) would (i) constitute a “parachute payment”
under Section 280G of the IRC and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the IRC,
then such Change in Control Benefits shall be reduced to an amount, the value of which is $1.00 less than an amount equal to three
(3) times the Executive’s “base amount,” as determined in accordance with Section 280G of the IRC. In the event
a reduction in payments or benefits constituting “parachute payments” is necessary, reduction shall occur in the following
order: (1) reduction of the cash payments due under the CIC Agreement; (2) reduction of the Supplemental Stock Ownership Benefit
payable pursuant to Section 4.02 of Seller Bank’s Amended and Restated Supplemental Executive Retirement Plan; and (3) reduction
of other benefits paid to the Executive.

 

Section 3.Consulting.

 

(a)       The
parties agree that the Closing Date shall be the last day of the Executive’s employment with Seller and Seller Bank (the
 “Termination Date”) and that the Executive’s service as the Executive Vice President, Chief Operating
Officer of Seller and Seller Bank shall terminate as of the Termination Date. Effective as of the Termination Date, the Executive
shall resign from all positions she holds as an officer, director, benefit plan trustee or otherwise with respect to Seller and
Seller Bank or any of their subsidiaries. It is intended that the Termination Date shall constitute the Executive’s “separation
from service” from Seller and Seller Bank within the meaning of Section 409A of the IRC and the regulations promulgated thereunder
(“Section 409A”). The Executive’s termination of employment shall be treated as a voluntary termination
of her employment for Good Reason in accordance with Section 2(a) of the CIC Agreement.

 

(b)       For
the period beginning on the day following the Termination Date and expiring on the date that is six (6) months following the Termination
Date, or at Buyer’s discretion, an earlier date upon completion of the data processing system from Seller Bank to Berkshire
Bank’s platform (the “Consulting Period”), the Executive shall provide the following services to Buyer
(the “Services”):

 

(i)       The
Executive shall provide services and advice regarding the integration and transition planning and implementation related to the
Merger; and

 

(ii)       The
Executive shall provide such other services as may be reasonably requested by Buyer from time to time.

 

Notwithstanding the foregoing, the Executive
shall not be required to provide the Services for more than thirty-two (32) hours per month during any part of the Consulting Period.
It is the intent of the parties that the Services shall not exceed twenty percent (20%) of the average level of services that Executive
performed during the three (3) year period prior to the Termination Date.

 

    2 

     

    

 

(c)       The
Executive shall devote such time and attention to her duties hereunder as is reasonably required to provide consulting services
to Berkshire Bank pursuant to this Agreement. The times during which, and the locations at which, the Executive shall perform her
services hereunder shall be subject to the mutual agreement of the Executive and Berkshire Bank. In all matters relating to the
Services, the Executive shall be acting as an independent contractor. The Executive shall not be the agent or employee of Buyer
or Berkshire Bank under the meaning or application of any federal or state laws, including but not limited to unemployment insurance
or worker’s compensation laws. The Executive will be solely responsible for all income, business or other taxes imposed on
her and payable as a result of the fees paid for the Services. The Executive shall not sign any agreement or make any commitments
on behalf of Buyer or Berkshire Bank, or bind Buyer or Berkshire Bank in any way.

 

(d)       During
the Consulting Period, Berkshire Bank will pay to the Executive, on the first day of each month for services rendered hereunder
for the prior month, an amount equal to $5,450.00 in exchange for (i) Executive making herself available for up to thirty-two (32)
hours per month, reportable on a Form 1099-MISC annually, regardless of whether the actual time devoted to consulting services
at the request of Berkshire Bank is less than thirty-two (32) hours per month.

 

Section 4.Non-Competition
and Non-Solicitation.

 

(a)       During
the period beginning on the day following the Termination Date and expiring on the date that is one year following the Termination
Date (the “Restricted Period”), the Executive agrees not to solicit, offer employment to, or take any other
action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any officer
or employee of Berkshire Bank, or any of their respective subsidiaries or affiliates, to terminate his or her employment and accept
employment or become affiliated with, or provide services for compensation in any capacity whatsoever to, any firm, corporation,
entity or enterprise that competes with the business of Berkshire Bank, or any of their direct or indirect subsidiaries or affiliates.
In addition, the Executive agrees, during the Restricted Period, not to become an officer, employee, consultant, director, independent
contractor, agent, sole proprietor, joint venturer, greater than 5% equity owner or stockholder, partner or trustee of any savings
association, savings and loan association, savings and loan holding company, credit union, bank or bank holding company, insurance
company or agency, any mortgage or loan broker or any other financial services entity or business that competes with the business
of Berkshire Hills Bancorp, Inc., Berkshire Bank or its affiliates.

 

(b)       During
the Restricted Period, Berkshire Bank will pay to the Executive, on the first day of each month, an amount equal to $8,333.33,
for a total of $100,000 over twelve months, reportable on a Form 1099-MISC annually.

 

Section 5.Miscellaneous.

 

(a)       Successors.
The terms of this Agreement shall be binding upon all parties hereto and their respective heirs, successors, and assigns.

 

(b)       Final
Agreement. This Agreement represents the entire understanding of the parties with respect to the subject matter hereof and
supersedes all prior understandings, written or oral. The terms of this Agreement may be changed, modified or discharged only by
an instrument in writing signed by the parties hereto. The Executive acknowledges that the Executive has carefully read the foregoing,
has had sufficient opportunity to review this Agreement with legal counsel of the Executive’s own choosing, knows and understands
this Agreement’s contents, and freely and independently signs this Agreement. No inducements, representations, or agreements
have been made or relied upon to make this Agreement except as stated in this Agreement.

 

    3 

     

    

 

(c)       Governing
Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the Commonwealth
of Massachusetts without regard to principles of conflicts of laws thereof.

 

(d)       Statutory
Changes. All references to sections of the IRC shall be deemed also to refer to any successor provisions to such sections.

 

(e)       Validity.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

 

(f)       No
Assignment of Benefits. Except as otherwise provided herein or by law, no right or interest of the Executive under this Agreement
shall be assignable or transferable, in whole or in part, either directly or by operation of law or otherwise.

 

(g)       Counterparts.
This Agreement may be signed in counterparts, and all of the counterpart copies shall be treated as a single agreement.

 

Section 6.Effectiveness.

 

In the event the Merger
Agreement is terminated for any reason prior to the closing of the Merger, this Agreement shall be of no further force and effect.

 

[Signature Page to Follow]

 

 

    4 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have duly executed this Agreement as of the day and year first written above.

 

	 	EXECUTIVE	 
	 	 	 	 
	 	 	 	 
	 	/s/ Laurie L. Gervais

	 
	 	 	 	 
	 	 	 	 
	 	BERKSHIRE HILLS BANCORP, INC.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Richard M. Marotta

	 
	 	 	 	 
	 	Print Name:	Richard M. Marotta, President and CEO

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	BERKSHIRE BANK	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Richard M. Marotta

	 
	 	 	 	 
	 	Print Name:	Richard M. Marotta, CEO

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	SI FINANCIAL GROUP, INC.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Rheo A. Brouillard

	 
	 	 	 	 
	 	Print Name:	Rheo A. Brouillard

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	SAVINGS INSTITUTE BANK AND TRUST COMPANY	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Rheo A. Brouillard

	 
	 	 	 	 
	 	Print Name:	Rheo A. Brouillard

	 
	 	 	 	 

 

 

    5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}]]