Document:

Exhibit 10.1

Exhibit 10.1

 

     RESOLUTION FOR 

HUDSON
UNITED BANCORP 

DIRECTOR SEVERANCE PLAN

         In light of the extensive time
and education demands on Directors and the fact that Hudson United Bancorp and
its subsidiaries have no retirement plan or benefits for Directors, the Board
hereby adopts, effective as of the date of this meeting, the Hudson United
Bancorp Directors Severance Plan (the "Plan").

         Under the Plan, a director of
Hudson United Bancorp who served on the Board of Hudson United Bancorp on or
after July 1, 2005, who has served more than 12 months on the Board of Directors
of Hudson United Bancorp, and who ceases to be a director of Hudson United
Bancorp for any reason whatsoever (other than a removal for cause involving a
breach of the Hudson United Bancorp Code of Conduct) (such directors, the
"Eligible Directors"), shall be entitled to be paid, within 10 business days
following termination of service, a lump sum amount equal to the fees paid in
the calendar year immediately prior to termination. This Plan may be amended or
terminated at any time by the vote of two-thirds of all the directors then in
office. This Plan shall be administered by the Board of Directors of Hudson
United Bancorp.Exhibit 10.2

Exhibit 10.2

 

	

AMENDMENT NUMBER ONE TO

HUDSON UNITED BANCORP

SEVERANCE PLAN

            BY THIS AMENDMENT NUMBER ONE, the Hudson United Bancorp (the“Company”) Severance Plan is hereby amended as follows, effective July 11, 2005:

	
WITNESSETH:

         WHEREAS, TD Banknorth Inc. (“TD Banknorth”) has agreed that the Company amend its Severance Plan as set forth below prior to the execution of an Agreement and Plan of Merger in order to
provide for enhanced severance to officers and employees and to make certain other changes; and 

         WHEREAS, the Company believes that the Amendment is in the best interests of the Company.

         NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the Company has duly adopted the amendments to the Severance Plan as set forth
below.

         1.     Section 2 of the Severance Plan is amended to add new Sections 2c and 2d to read in their entirety as follows, with existing Sections 2c through 2l to be re-numbered as appropriate:

	
 	
“c. 
	
 	
“Change of Control” shall mean a change in the ownership of the 

	
 	
 
	
 	
Company, a change in the effective control of the Company or a change in 

	
 	
 
	
 	
the ownership of a substantial portion of the assets of the Company as 

	
 	
 
	
 	
provided under Section 409A of the Code, as amended from time to time, 

	
 	
 
	
 	
and any Internal Revenue Service guidance, including Notice 2005-1, and 

	
 	
 
	
 	
regulations issued in connection with Section 409A of the Code. 

	
 	
d. 	
 	
“Code” shall mean the Internal Revenue Code of 1986, as amended from 

	
 
	
 	
 	
time to time.” 

         2.     Existing Section 2l of the Severance Plan, which has been re-numbered as new Section 2n pursuant to Section 1 of this Amendment, is amended to read in its entirety as follows:

	
 	
“n. 
	
 	
“Years of Service” shall mean the period of service with the Company 

	
 	
 
	
 	
commencing on the Participant’s most recent date of hire and ending on 

	
 	
 
	
 	
the Participant’s date of Termination. If the Participant was previously 

	
 	
 
	
 	
employed by the Employer and was subsequently re-hired after a break in 

	
 	
 
	
 	
service, only service from the most recent date of hire shall be taken into 

	
 	
 
	
 	
account. Years of Service with a predecessor employer shall be taken into 

	
 	
 
	
 	
account only if so specified in the acquisition agreement with such 

	

	
 
	
 	
 
	
 	
predecessor employer. A completed Year of Service shall mean a 365 day 

	

	
 
	
 	
 
	
 	
period, ending on the anniversary of the most recent date of hire.” 

        3.      Section 3b of the Severance Plan is amended to read in its entirety as follows: 

	

	
 
	
 	
“b. 
	
 	
Terminations Which Give Rise to Severance Pay 

	
 

	

	
 
	
 	
 
	
 	
A Participant is entitled to receive Severance Pay if the Company 

	

	
 
	
 	
 
	
 	
permanently terminates the Participant’s employment either before a 

	

	
 
	
 	
 
	
 	
Change of Control or within 12 months following a Change of Control due 

	

	
 
	
 	
 
	
 	
to (i) conversion of a full-time position to a part-time position (and the 

	

	
 
	
 	
 
	
 	
Participant refuses to accept said position); (ii) a reduction in force; or 

	

	
 
	
 	
 
	
 	
(iii) an involuntary termination for reasons other than those set forth in 

	

	
 
	
 	
 
	
 	
Section 3c below.” 

         4.     
Section 3d of the Severance Plan is amended to read in
its entirety as follows: 

	
 	
 	
 	
 
	

	
 
	
 	
“d. 
	
Receipt of Severance Pay 

	
 	
Severance Pay shall be payable in a lump sum on the first regularly 

	
 	
scheduled payroll date that occurs at least ten (10) business days after the 

	
 	
later of (i) the date the Plan Administrator receives from the Participant a 

	
 	
signed Separation Agreement and General Release (the “Release”), (ii) the 

	
 	
expiration of the revocation period set forth in the Release, and (iii) the 

	
 	
date of Termination, provided that such payment shall be delayed for key 

	
 	
employees for six months to the extent required by Section 409A of the 

	
 	
Code. The receipt of any Severance Pay hereunder is conditioned on a 

	
 	
written release of all claims against the Company in the form provided by 

	
 	
the Plan Administrator. In addition, the receipt of Severance Pay 

	
 	
hereunder is conditioned for the Chairman, President, Chief Executive 

	
 	
Officer and any Executive Vice President on the receipt of an executed 

	
 	
non-compete as further described below.” 

 
        5.     Section 4 of the Severance Plan is amended to read in its entirety as follows: 

	

	
 
	
 	
 	
 “4 	
. 
	
Amount of Severance Pay 

	
 

	

	
 
	
 	

	
 a.	
 
	
Subject to Sections 4b and 4c below, each Participant who becomes 

	

	
 
	
 	

	
 	
 
	
entitled to receive Severance Pay shall receive an amount determined in 

	

	
 
	
 	

	
 	
 
	
accordance with the following schedule: 

2

	
 
	
 	
Years of Service 
	
 	
 
	
 	
Severance Pay(1) 

	
	
	

	
 

	
Non-Officers 
	
 	
Completed less than 7 Years 
	
 	
12 
	
 	
weeks of Base Salary 

	
 
	
 	
of Service 
	
 	
 
	
 	
 

	
 
	
 	
Completed 7 to 12 Years of 
	
 	
2 weeks of Base Salary 

	
 
	
 	
Service 
	
 	
per Year of Service 

	
 
	
 	
Completed 13 or more 
	
 	
26 
	
 	
weeks of Base Salary 

	
 
	
 	
Years of Service 
	
 	
 
	
 	
 

	
 

	
Officers up to and 
	
 	
Completed less than 5 Years 
	
 	
12 
	
 	
weeks of Base Salary 

	
including Vice 
	
 	
of Service 
	
 	
 
	
 	
 

	
Presidents 
	
 	
 
	
 	
 
	
 	
 

	
 
	
 	
Completed 5 to 9 Years of 
	
 	
18 
	
 	
weeks of Base Salary 

	
 
	
 	
Service 
	
 	
 
	
 	
 

	
 
	
 	
Completed 10 to 14 Years of 
	
 	
26 
	
 	
weeks of Base Salary 

	
 
	
 	
Service 
	
 	
 
	
 	
 

	
 

	
 

	
 
	
 	
Completed 15 or more 
	
 	
32 
	
 	
weeks of Base Salary 

	
 
	
 	
Years of Service 
	
 	
 
	
 	
 

	
 

	
Senior Vice 
	
 	
Completed less than 5 Years 
	
 	
39 
	
 	
weeks of Base Salary 

	
Presidents 
	
 	
of Service 
	
 	
 
	
 	
 

	
 
	
 	
Completed 5 to 9 Years of 
	
 	
42 
	
 	
weeks of Base Salary 

	
 
	
 	
Service 
	
 	
 
	
 	
 

	
 
	
 	
Completed 10 to 14 Years of 
	
 	
45 
	
 	
weeks of Base Salary 

	
 
	
 	
Service 
	
 	
 
	
 	
 

	
 
	
 	
Completed 15 or more 
	
 	
52 
	
 	
weeks of Base Salary 

	
 
	
 	
Years of Service 
	
 	
 
	
 	
 

	
 

	
First Senior Vice 
	
 	
Any Years of Service 
	
 	
52 
	
 	
weeks of Base Salary 

	
Presidents 
	
 	
 
	
 	
 
	
 	
 

	
 

	
Executive Vice 
	
 	
Any Years of Service 
	
 	
52 
	
 	
weeks of Base Salary 

	
Presidents and the 
	
 	
 
	
 	
plus bonus(2) 

	
President, CEO and 
	
 	
 
	
 	
 
	
 	
 

	
Chairman 
	
 	
 
	
 	
 
	
 	
 

3

	
 	
(1
	
)	
 	
To also include continuation of medical insurance at employee rates for 

	

 	

	
 	
 	
the number of weeks shown. In addition, each Participant who becomes 

	

 	

	
 	
 	
entitled to Severance Pay shall be deemed 100% vested in the 

	

 	

	
 	
 	
Participant’s Matching Contribution Account under the
Hudson United Bancorp and 

	

 	

	
 	
 	
Subsidiaries Savings and Investment Plan, with such plan to be amended 

	

 	

	
 	
 	
as appropriate. 

	
 

	
 	
(2
	
) 
	
 	
The amount of the bonus in the above table for Executive Vice Presidents 

	

 	

	
 
	
 	
and for the President, Chief Executive Officer and Chairman shall be an 

	

 	

	
 
	
 	
amount equal to the highest annual bonus received during or for the two 

	

 	

	
 
	
 	
calendar years immediately preceding their date of Termination; provided, 

	

 	

	
 
	
 	
however, that the aggregate Severance Pay shall in no event exceed two 

	

 	

	
 
	
 	
times the Participant’s Base Salary. 

	
 	
b. 	
 	
The receipt of any Severance Pay by an Executive Vice President or by 

	
 
	
 	
 	
the President, Chief Executive Officer and Chairman shall be conditioned 

	
 
	
 	
 	
upon such person entering into a binding agreement with the Company 

	
 
	
 	
 	
providing that such person, for a period of two years following the date of 

	
 
	
 	
 	
termination, shall not, for himself or on behalf of any other person or 

	
 
	
 	
 	
entity, directly or indirectly, (i) be employed in any capacity or serve as a 

	
 
	
 	
 	
director or consultant for a commercial bank, savings bank or savings 

	
 
	
 	
 	
association insured by the FDIC in the states in which the Company (or 

	
 
	
 	
 	
any affiliate of the Company) maintains a branch or office at the date of 

	
 
	
 	
 	
Termination, or (ii) solicit, divert, take away or attempt to take away any 

	
 
	
 	
 	
customers of the Company (or any affiliate of the Company) or the 

	
 
	
 	
 	
business of any such customers or in any way interfere with, disrupt or 

	
 
	
 	
 	
attempt to disrupt any then-existing relationships between the Company 

	
 
	
 	
 	
(or any affiliate of the Company) and any of its customers. 

	
 

	
 
	
c.	
 	
If the Severance Pay pursuant to Section 4a hereof, either alone or 

	
 
	
 	
 	
together with other payments and benefits which the Participant has the 

	
 
	
 	
 	
right to receive from the Company or any of its subsidiaries or affiliates, 

	
 
	
 	
 	
or any of their successors, would constitute a “parachute payment” under 

	
 
	
 	
 	
Section 280G of the Code, the Severance Pay payable by the Company 

	
 
	
 	
 	
pursuant to Section 4a hereof shall be reduced by the amount, if any, 

	
 
	
 	
 	
which is the minimum necessary to result in no portion of the payments 

	
 
	
 	
 	
and benefits payable by the Company under Section 4a being non- 

	
 
	
 	
 	
deductible to the Company or any of its subsidiaries or affiliates, or any of 

	
 
	
 	
 	
their successors, pursuant to Section 280G of the Code and subject to the 

	
 
	
 	
 	
excise tax imposed under Section 4999 of the Code. The determination of 

	
 
	
 	
 	
any reduction in the payments and benefits to be made pursuant to Section 

	
 
	
 	
 	
4a shall be based upon the opinion of independent counsel selected by the 

	
 
	
 	
 	
Company and paid by the Company. Nothing contained herein shall result 

	
 
	
 	
 	
in a reduction of any payments or benefits to which the Participant may be 

	
 	
 	
 	
entitled upon termination of employment under any
circumstances other
	
 	
 	
 	
 than as specified in this Section 4c, or a reduction in
the payments and 

	
 	
 	
 	
benefits specified in Section 4a below zero. This Section 4c
shall not apply
	
 	
 	
 	
 to the
President, Chief Executive Officer and Chairman of the Company.

4

        6.     All other provisions of the Severance Plan shall continue in full force and effect.

        IN WITNESS WHEREOF, this Amendment has been executed this 11th day of July
2005.

	
ATTEST: 
	
 	
HUDSON UNITED BANCORP 

	
 

	
 

	
By: _____________________________ 
	
 	
By: _______________________________ 

	
          Name: James W. Nall 
	
 	
        Name: Kenneth T. Neilson 

	
          Title: Executive Vice President 
	
 	
        Title:   Chairman, President and Chief 

	
                 
and Chief Financial Officer 
	
 	
                  
Executive Officer 

5

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