Document:

exv10w46

Exhibit 10.46

AGREEMENT

     THIS AGREEMENT (“Agreement”) made as of this 11th day of February, 2008, between
SOVEREIGN BANK, a federal savings bank (the “Bank”), and Roy J. Lever, an individual (the
“Officer”).

WITNESSETH:

     WHEREAS, the Bank is a wholly-owned subsidiary of Sovereign Bancorp, Inc., a Pennsylvania
business corporation and savings and loan holding company (“Sovereign”); and

     WHEREAS, the Bank and the Officer desire to enter into an agreement regarding, among other
things, the employment of the Officer by the Bank in the Bank’s Retail Banking Division as Managing
Director, Retail Sales, reporting initially to Joseph P. Campanelli, President and Chief Executive
Officer of Sovereign and the Bank.

AGREEMENT:

     NOW, THEREFORE, the parties hereto, intending to be legally bound hereby, agree as follows:

     1. Employment. The Bank hereby employs the Officer, and the Officer hereby accepts
employment with the Bank, on the terms and conditions set forth in this Agreement, effective as of
the date first set forth above. Prior to the occurrence of the announcement of a transaction
involving an actual or potential Change in Control, the Bank agrees that the Officer shall not be
required to relocate his office more than fifty (50) miles from 75 State Street, Boston, MA.

     2. Duties of Employee. The Officer shall perform and discharge such duties as may be
reasonably assigned to the Officer from time to time by the President and Chief Executive Officer
of the Bank. The Officer’s duties shall be consistent with his title and shall not be unreasonably
or materially changed, considering his role in the Company; provided, however, that nothing herein
shall preclude his promotion. The Officer shall devote his full business time to the business of
the Bank and shall not, during the Employment Period (as defined in Section 3), be employed or
involved in any other business activity. However, this Section 2 shall not be construed as
preventing the Officer from (a) investing the Officer’s personal assets or
(b) being involved in any other activity with the prior approval of the President and Chief
Executive Officer of the Bank. The Officer shall have the title of Managing Director, Retail
Sales.

     3. Term of Employment. The Officer’s employment under this Agreement shall be for
a period (the “Employment Period”) commencing on the date of this Agreement and ending on
the date that is two (2) years subsequent thereto, provided that on the first and each
subsequent annual anniversary date of this Agreement, and unless a party has given the other party
written notice at least sixty (60) days prior to such anniversary date that such party does not agree
to renew this Agreement, the term of this Agreement and the Employment Period shall be deemed
renewed for a term ending two (2) years subsequent to such anniversary date, unless sooner
terminated in accordance with one of the following provisions:

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     (a) The Officer’s employment under this Agreement may be terminated at any
time during the Employment Period for “Cause,” by action of the President and Chief
Executive Officer of the Bank. As used in this Agreement, “Cause” means any of the
following events:

     (i) the Officer is convicted of or enters a plea of guilty or nolo contendere
to a felony or a crime involving fraud or moral turpitude;

     (ii) the Officer repeatedly fails to follow the lawful instructions of the President
and Chief Executive Officer of the Bank;

     (iii) the Officer violates the Bank’s Code of Conduct;

     (iv) a government regulatory agency recommends that the Bank relieve the Officer of
his duties;

     (v) the Officer willfully violates any material statute or regulation (other than
traffic violations or similar offenses), or any final cease and desist order applicable to
Sovereign or the Bank;

     (vi) the Officer engages in an activity that results in a breach of fiduciary duty
involving receipt of personal profit by the Officer at the expense of the Bank;

     (vii) the Officer commits an act of willful misconduct, intentionally fails to perform
stated lawful duties, or performs his duties under this Agreement in an incompetent manner;

     (viii) the Officer materially breaches any material provision of this Agreement;
or

     (ix) concurrent with or following the public announcement of a transaction involving
an actual or potential Change in Control (as defined in Section 5A(c)), the Officer’s
refusal to accept a Reasonable Job Offer (as defined in Section 3(f)).

If the Officer’s employment is terminated under the provisions of this Section 3(a), then all
rights of the Officer under Section 4 shall cease as of the effective date of such termination.

     (b) The Officer’s employment under this Agreement may be terminated at any
time during the Employment Period without Cause, by action of the Chief Executive
Officer of the Bank, upon giving written notice of such termination to the Officer at least
thirty (30) days prior to the date upon which such termination shall take effect. If the
Officer’s employment is terminated under the provisions of this Section 3(b), then the
Officer shall be entitled to receive the compensation and benefits set forth in Section 5.
For purposes of this Section 3(b), (i) a material adverse change in the Officer’s duties or
responsibilities following a Change in Control of Sovereign, or (ii) a violation by the
Bank of the last sentence of Section 1 hereof shall be deemed to be a termination of the

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Officer’s employment without Cause. Upon the occurrence of any of the events listed in this
Section 3(b), the Officer shall be permitted, within ninety (90) days of the occurrence of
such event, to resign from employment by a notice in writing delivered to the Bank,
whereupon he will become entitled to receive the compensation and benefits set forth in
Section 5, provided, however, that the Bank shall be given thirty (30) days from the day it
receives the notice of termination to remedy any such event. Notwithstanding the foregoing,
any amounts payable upon a termination under this Section 3(b) shall be paid only if the
Officer actually terminates employment within two (2) years following the initial existence
of the events listed in this Section.

     (c) If the Officer retires or dies, the Officer’s employment under this Agreement shall
be deemed terminated as of the date of the Officer’s retirement or death, and all rights of
the Officer under Section 4 shall cease and any other amounts or benefits payable to the
Officer shall be determined in accordance with the retirement and insurance programs of the
Bank then in effect. For purposes of this Agreement, the term “retirement” shall mean
voluntary termination on or after age sixty-five (65).

     (d) If the Officer is incapacitated by accident, sickness, or otherwise so as to render
the Officer mentally or physically incapable of performing the services required under this
Agreement, notwithstanding reasonable accommodation, for a continuous period of six (6)
months, then, upon the expiration of such period or at any time thereafter, by action of the
Chief Executive Officer of the Bank, the Officer’s employment under this Agreement may be
terminated immediately. If the Officer’s employment is terminated under the provisions of
this Section 3(d), then all rights of the Officer under Section 4 shall cease as of the last
business day of the week in which such termination occurs and any other amounts or benefits
payable to the Officer shall be determined in accordance with the retirement and insurance
programs of the Bank then in affect.

     (e) The Officer’s employment under this Agreement may be terminated by the Officer at
any time during the Employment Period for any or no reason, by giving written notice of such
termination to the Chief Executive Officer of the Bank at least thirty (30) days prior to
the date upon which such termination is to take effect. If the Officer terminates his
employment under the provisions of this Section 3(e), then all rights of the Officer under
Section 4 hereof shall cease as of the effective date of such termination.

     (f) For purposes of this Agreement, the term “Reasonable Job Offer” means a good faith
offer of employment made or directly facilitated by Sovereign, the Bank, an affiliate of
either, an entity proposing to acquire the business of Sovereign or the Bank, or an
affiliate of such entity, which offer (i) would not give the Officer the right to terminate
employment for Good Reason under Section 5A(a), and (ii) does not require an employment
background and skill set materially different than required for his then position.

     4. Employment Period Compensation. The Officer shall be entitled to all
benefits offered by the Bank to executives holding comparable positions to those of the
Officer, including, but not limited to, the following:

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     (a) Salary. The Bank shall pay the Officer a salary, during the Employment
Period, at the rate of $350,000 per year, payable bi-weekly (or in such manner as other Bank
officers are paid). The Bank may, from time to time, increase but not decrease the Officer’s
salary, and any and all such increases shall be deemed to constitute amendments to this
Section 4(a) to reflect the increased amounts, effective as of the dates established for
such increases. The Bank shall undertake a performance review of the salary payable pursuant
to this Section 4(a) not less frequently than annually.

     (b) Bonus. The Bank shall set bonus targets as a percent of salary for the
Officer based on the assigned job salary grade, and pay the Officer bonuses during the
Employment Period in such amounts and at such times as may be approved by the Board of
Directors of the Bank in its discretion based on both individual and company performance
against specified objectives. Notwithstanding the foregoing, all bonus payments, if any,
shall be made no later than March 15 of the year next following the year to which such bonus
relates.

     (c) Other Benefits. The Officer shall be entitled to participate in the Bank’s
tax-qualified employee benefit plans and the Bank shall provide the Officer, during the
Employment Period, with insurance, vacation, pension, and other fringe benefits in the
aggregate not less favorable than those received by other comparable officers of the Bank.

     5. Rights in Event of Certain Termination of Employment Before Change in Control
Announcement.

     (a) In the event that the Officer’s employment is terminated by the Bank
without Cause during the Employment Period, before the occurrence of the
announcement of a transaction involving an actual or potential Change in Control, the
Officer shall be entitled to receive the amounts and benefits set forth in this Section 5:

     (i) annual salary otherwise accrued or payable through the date of
termination of employment; and

     (ii) the greater of (A) continued payments of base salary then in effect
through the end of the Employment Period or a period of twenty four (24) months,
whichever is longer, or (B) a lump sum severance payment equal to the severance
payment due under Sovereign’s or the Bank’s Severance Pay Plan applicable to the
Officer at the time of termination; provided, in either case, that the Officer
executes Sovereign’s standard form of release and waiver.

     (b) All payments required by Section 5(a) shall be paid in a lump sum cash payment
not later than the thirtieth (30th) day following the date of termination of
employment.

     (c) The Officer shall not be required to mitigate the amount of any payment provided
for in this section by seeking employment or otherwise nor shall the amount of any payment
provided for in this section be reduced or offset by the Officer’s subsequent employment.

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     (d) The Officer agrees that the amounts set forth in this Section 5 constitute the
Officer’s sole and exclusive remedy, contractual or otherwise, in the event of a termination
by the Bank of the Officer’s employment without Cause before the announcement of a
transaction involving an actual or potential Change in Control.

     5A. Rights in Event of Certain Terminations of Employment on or After the Occurrence of
a Change in Control Announcement.

     (a) Events Giving Right to Terminate for Good Reason. If
a public announcement of a transaction involving an actual or potential
Change in Control occurs, and concurrently therewith or during a period of
twenty-four (24) months thereafter, an event constituting Good Reason also
occurs with respect to the Officer, he may terminate his employment in
accordance with the provisions of Section 5A(b) and, thereupon, will become
entitled to the payments and benefits described in Sections 5A(e) and
5A(f). As used in this Agreement, the term “Good Reason” means any of the
following events:

(i) the involuntary termination of the Officer’s employment, other
than an involuntary termination permitted in Sections 3(a) and (d);

(ii) a material reduction in the Officer’s base and/or annual target
incentive compensation below a level that was in effect immediately
prior to the public announcement;

(iii) the failure to provide the Officer with a total compensation
package (salary, welfare and pension benefits, stock options and a
bonus plan evaluated on the basis of bonus potential) reasonably
comparable to the compensation package provided to the Officer
immediately prior to the public announcement;

(iv) the reassignment for longer than sixty (60) days of the Officer
to a principal office which is more than thirty (30) miles from his
or her primary residence as of the date of the public announcement or
an additional ten (10) miles from the Officer’s primary residence in
the event the Officer’s one-way driving commute prior to the public
announcement was in excess of thirty (30) miles; and

(v) any material breach of this Agreement by the Officer’s employer
at any relevant time, coupled with the failure to cure the same
within thirty (30) days after receipt of written notice of such
breach from the Officer; and

(vi) any reduction in title or any material reduction in Officer’s
responsibilities or authority as they exist immediately prior to the
public announcement.

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     (b) Notice of Termination. Upon the occurrence of an event of Good Reason subject to
Section 5A(a), the Officer may, within ninety (90) days of the occurrence of any such event, resign
from employment by a notice in writing (“Notice of Termination”) delivered to Sovereign, whereupon
he will become entitled to the payments and benefits described in Sections 5A(e) and 5A(f),
provided, however, that Sovereign shall be given thirty (30) days from the date it receives the
Notice of Termination to remedy such event. Notwithstanding the foregoing, any amounts payable upon
a termination for Good Reason shall be paid only if the Officer actually terminates employment
within two (2) years following the initial existence of the event constituting Good Reason. In the
case of a termination described in Section 5 A(a)(i), the Officer shall confirm his involuntary
termination, in writing, within ninety (90) days of the date of such termination, and such
confirmation will be deemed a Notice of Termination.

     (c) Change in Control Defined. As used in this Agreement, the term “Change in Control”
means any of the following:

(i) any “person” (as such term is used in Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934 (the “Exchange Act”)), other than Sovereign, a subsidiary of
Sovereign, or an employee benefit plan of Sovereign or a subsidiary of Sovereign
(including a related trust), becomes the beneficial owner (as determined pursuant to Rule
13d-3 under the Exchange Act), directly or indirectly of securities of Sovereign
representing more than 19.9% of (A) the combined voting power of Sovereign’s then
outstanding stock and securities or (B) the aggregate number of shares of Sovereign’s then
outstanding common stock;

(ii) the occurrence of a sale of all or substantially all of the assets of Sovereign or
the Bank to an entity which is not a direct or indirect subsidiary of Sovereign;

(iii) the occurrence of a reorganization, merger, consolidation or similar transaction
involving Sovereign, unless (A) the shareholders of Sovereign immediately prior to the
consummation of any such transaction initially thereafter own securities representing a
majority of the voting power of the surviving or resulting corporation, and (B) the
directors of Sovereign immediately prior to the consummation of such transaction initially
thereafter represent a majority of the directors of the surviving or resulting
corporation;

(iv) a plan of liquidation or dissolution, other than pursuant to bankruptcy or
insolvency, is adopted for Sovereign or the Bank;

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(v) during any period of two (2) consecutive years, individuals who,
at the beginning of such period, constituted the Board of Directors of
Sovereign cease to constitute the majority of such Board (unless the
election of each new director was expressly or by implication approved by
a majority of the Board members who were still in office and who were
directors at the beginning of such period); and

(vi) the occurrence of any other event which is irrevocably designated as
a “change in control” for purposes of this Agreement by resolution adopted
by a majority of the then non-employee directors of Sovereign.

     Notwithstanding the foregoing, a Change in Control will not be deemed to have occurred if a
person becomes the beneficial owner, directly or indirectly, of stock and securities representing
more than 19.9% of the combined voting power of Sovereign’s then outstanding stock and securities
or the aggregate number of shares of Sovereign’s then outstanding common stock solely as a result
of an acquisition by Sovereign of its stock or securities which, by reducing the number of
securities or stock outstanding, increases the proportionate number of securities or stock
beneficially owned by such person; provided, however, that if a person becomes the beneficial owner
of more than 19.9% of the combined voting power of stock and securities or the aggregate number of
shares of common stock by reason of such acquisition and thereafter becomes the beneficial owner,
directly or indirectly of any additional voting stock securities or common stock (other than by
reason of a stock split, stock dividend or similar transaction), then a Change in Control will
thereupon be deemed to have occurred.

     (d) Termination of Proposed Change in Control Transaction. If,
following a public announcement described in Subsection (a), a proposed transaction
is terminated without completion, this Agreement shall thereafter be construed as
though no such announcement had ever been made; provided, however, that the rights
associated with any termination of employment or the giving of a Notice of
Termination during the interim period shall be determined without regard to this
subsection.

     (e) Rights Under This Section. In the event the Officer validly and
timely delivers a Notice of Termination to Sovereign, he will be entitled to
receive the following payments and benefits:

(i) Basic Payments. The Officer will be paid an amount equal to two
(2) times the sum of (A) the highest annualized base salary paid to him
during the year of termination or the immediately preceding two (2)
calendar years, and (B) the greater of (i) the target bonus in the year of
termination or (ii) the highest bonus paid to him with respect to one of
the three (3) calendar years immediately preceding the year of termination.
Such amount will

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be paid to the Officer in a lump sum cash payment not later than the
thirtieth (30th) day following the date of termination of
employment. For purposes of this Paragraph (i), to the extent
necessary, base salary and bonuses with any predecessor of Sovereign
or an affiliate thereof shall be taken into account.

(ii) Health and Medical Benefits. For a period of two (2)
years from the day of termination of employment, the Officer shall
be provided, at no charge, with a continuation of health and medical
benefits substantially similar to the most favorable of such
benefits provided to him at his employer’s cost during the two year
period immediately preceding such termination. To the extent such
benefits cannot be provided under a plan because the Officer is no
longer an employee of the employer, a lump sum payment in cash equal
to the present value (determined based upon 120% of the then
prevailing monthly short-term applicable federal rate), after tax
cost (estimated in good faith by the Bank) of obtaining such
benefits, or substantially similar benefits, shall be made to the
Officer within fifteen (15) days of his termination of employment.

     (f) Legal Expenses. The Officer shall be paid all reasonable
legal fees and expenses when incurred by the Officer in seeking to obtain or
enforce any right or benefit provided by this Section 5A, provided he acts
in good faith with respect to issues raised.

     (g) No Mitigation or Offset. The provisions of Section 5(c)
shall apply to payments made and benefits provided under Section 5A.

     (h) Exclusive Remedy. The Officer agrees that the
payments made and benefits provided under Section 5A shall constitute the
Officer’s sole and exclusive remedy, contractual or otherwise, in the event
of a termination for Good Reason under this section.

     (i) Notwithstanding anything herein to the contrary, Section 3 of
this Agreement shall be construed as though the Employment Period were a
three-year renewable agreement, instead of a two-year renewable agreement,
solely with respect to the rights and benefits potentially provided under
this Section 5A.

     6. No Disclosure of Confidential Information. The Officer agrees that all customer
lists, dealer lists, files and records now or hereafter used by the Bank are the property of the
Bank and are its trade secrets. Accordingly, the Officer acknowledges that the Bank’s trade secrets
as they may exist from time to time and other confidential information concerning the Bank’s
business, products, promotion, pricing techniques, business plans, customer lists and credit and
financial data concerning customers are valuable, special and unique assets of the Bank, access to
and knowledge of which are essential to the performance of the Officer’s duties under this
Agreement. The Officer further agrees that all knowledge and information described

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in the preceding sentence not in the public domain and heretofore or in the future obtained by the
Officer as a result of employment by the Bank shall be considered confidential information and
shall not be disclosed without the Bank’s consent. The provisions of the preceding sentence shall
apply during the Officer’s employment and following the termination thereof for any reason. The
provisions of this section may be enforced in the same manner as described in Section 19. Nothing
contained herein shall be deemed to preclude the Officer from responding to requests for
information or inquiries from the Office of Thrift Supervision or the Federal Deposit Insurance
Corporation.

     6A. Covenant Not to Compete, Non-Solicitation of Customers and Employees — In
General.

     (a) If the Officer voluntarily leaves employment hereunder during the term of this
Agreement, but before the announcement of a transaction involving an actual or potential
Change in Control, or in the event of his termination under circumstances not qualifying for
payments and benefits under Section 5A, he agrees that, for a period of twelve (12) months
following the date of the termination of his employment, he shall not work directly or
indirectly for or on behalf of another bank that offers products or services similar or
equivalent to those offered by the Bank within fifty (50) miles of any county in which
Sovereign or its affiliates, including the Bank, are conducting such business at the date of
termination of his employment. Nor during such period shall the Officer solicit customers or
employees of Sovereign or any of its affiliates, including the Bank, to cease doing
business, in whole or in part, or cease employment with Sovereign or any of its affiliates,
including the Bank. To the extent the restrictions in this Section 6A are legally held to be
unreasonable, they shall not be void, but shall be modified to the extent necessary to make
such restrictions reasonable. The provisions of this section may be enforced in the same
manner as described in Section 19.

     (b) Notwithstanding the foregoing, in the event the Officer (1) is provided written
notice of the Excise Tax Reduction pursuant to Section 10(a) and quantification of the
reasonable additional payment offered in exchange for this non-competition restriction,
pursuant to Section 10(b); and (2) provides written notice to Sovereign or the Bank of the
Officer’s intention to be bound by the terms of this non-competition restriction, as
provided in Section 10(b), in exchange for receipt of the reasonable additional payment
described in Section 10(b) and the written notice, the Officer hereby agrees and covenants
that for a period of twelve (12) months from the Officer’s effective date of termination of
employment, he or she shall not work directly or indirectly for or on behalf of another bank
that offers products or services similar or equivalent to those offered by the Bank in the
geographic area in which Sovereign or its affiliates, including the Bank, are conducting
such business as of the date of termination of Officer’s employment. The Officer hereby
acknowledges and agrees that the covenants and restrictions in Sections 6A and 19 of this
Agreement are necessary to protect the legitimate business interests of Sovereign,
including, without limitation, customer information and goodwill, and considers the
restrictions to be reasonable for such purpose. The Officer acknowledges that any breach by
the Officer of the obligations set forth in Sections 6A and/or 19 would substantially and
materially impair and irreparably harm Sovereign’s business and good will; that such
impairment and harm would be

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     10. (a) All payments made to the Officer pursuant to this Employment Agreement
or otherwise, are subject to and conditioned upon their compliance with 12 U.S.C. §
1828(k) and any regulations promulgated thereunder. In addition, in the event that any
payments and benefits pursuant to this Agreement would, when taken together with
payments and benefits provided to him under any other plans, contracts or arrangements
with Sovereign, the Bank or an affiliate of either, result in the imposition of an excise
tax
under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), the
amounts and benefits payable hereunder shall be reduced to such extent as may be
necessary to avoid such imposition (the “Excise Tax Reduction”). The Officer shall have
the right, within 30 days of receipt of written notice from Sovereign or the Bank, to
specify which amounts and benefits shall be reduced to satisfy the requirements of this
subsection. All calculations required to be made under this subsection will be made by
Sovereign’s or the Bank’s independent public accountants, subject to the right of
Officer’s representative to review the same. The parties recognize that the actual
implementation of the provisions of this subsection are complex and agree to deal with
each other in good faith to resolve any questions or disagreements arising hereunder.

     (b) In the event the Officer is provided written notice of the Excise Tax
Reduction as described in Section 10(a), the Officer may elect to be bound by the
non-competition restriction contained in Section 6A, in exchange for a reasonable additional
payment in an amount to be determined by Sovereign or the Bank and communicated to the
Officer in the written notice of the Excise Tax Reduction. Under no circumstances will the
reasonable additional payment exceed the total amount of the Excise Tax Reduction required
in Section 10(a). The written notice from Sovereign or the Bank shall further contain a form
for execution by the Officer and return to Sovereign or the Bank in the event the Officer
elects the reasonable additional payment and accepts the non-competition restriction.

     11. Notices. Any notice required or permitted to be given under this Agreement shall
be deemed properly given if in writing and if mailed by registered or certified mail, postage
prepaid with return receipt requested, to the residence of the Officer, in the case of notices to
the Officer, and to the principal office of the Bank, in the case of notices to the Bank.

     12. Waiver. No provisions of this Agreement may be modified, waived, or discharged
unless such waiver, modification, or discharge is agreed to in writing and signed by the Officer
and an executive officer of the Bank specifically designated by the Board of Directors of the Bank.
No waiver by any party hereto at any time of any breach by any other party hereto of, or Compliance
with, any condition or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.

     13. Assignment. This Agreement shall not be assignable by either party hereto, except
by the Bank to any successor in interest to the business of the Bank, provided that the Bank (if it
remains a separate entity) shall remain fully liable under this Agreement for all obligations,
payments and otherwise.

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     14. Entire Agreement; Other Arrangements Superseded. This Agreement contains the
entire agreement of the parties relating to the subject matter of this Agreement and supersedes any
prior agreement of the parties.

     15. 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.

     16. Applicable Law. This Agreement shall be governed by and construed in accordance
with the domestic laws of the Commonwealth of Massachusetts without regard to its conflicts of laws
principles, unless and to the extent preempted by the laws of the United States of America.

     17. Headings. The headings of the sections of this Agreement are for convenience only
and shall not control or affect the meaning or construction or limit the scope or intent of any of
the provisions of this Agreement.

     18. Other Rights. Except as otherwise provided herein, nothing herein shall be
construed as limiting, restricting or eliminating any rights the Officer may have under any plan,
contract or arrangement to which he is a party or in which he is a vested participant; provided,
however, that no severance benefits shall be paid to him under any severance benefit plan of
Sovereign or the Bank unless they become payable under Section 5(a)(ii).

     19. Nonsolicitation of Employees and Customers — Section 5 A Applicable. In the event
the Officer becomes entitled to benefits under Section 5A, rather than Section 5, he shall refrain
from directly or indirectly soliciting, for employment or business relationship purposes, employees
and customers of Sovereign, the Bank or any affiliate of either as of the date of his termination
of employment. In the event of a breach of this section, the Officer’s right to payments and
benefits under Section 5A shall immediately terminate. The Bank shall be entitled to recover any
payments or benefits made following commencement of the prohibited conduct, but before discovery of
the same, and may commence an action in any court of competent jurisdiction for such additional
legal and equitable relief as it may deem necessary or appropriate to recover damages incurred by
reason of such conduct and to precluded continued violation of this section.

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

	 	 	 	 	 
	 	SOVEREIGN BANK

 	 
	 	By  	
/s/ Thomas J. Mcauliffe
 	 
	(SEAL) 	 	Attest:  	BWN  2-26-07	 
	 	 	 	 
	 
	 	 	 
	 	/s/ Roy J. Lever
 	(SEAL) 
	 	Roy J. Lever 	 
	 	2/26/08 	 
	 

Agreed to the 26th day of Feb, 2008.

	 	 	 	 	 
	SOVEREIGN BANCORP, INC. 

 	 	 
	By  	/s/ Thomas J. Mcauliffe
 	 	 
	 	 	 	 
	 	 	 	 
	 

13exv10w47

Exhibit 10.47

December 11, 2007

Mr. Roy Lever

74 Partridge Drive

Westwood, MA 02090

Dear Roy:

We are pleased to confirm our invitation for you to join Sovereign Bank. Roy, we hope you will take
advantage of the great opportunity before you, the details of which follow. This letter, along with
the enclosures, contains our complete offer of employment to you. Reporting to Joseph Campanelli,
you will join Sovereign Bank as a Managing Director of Retail Banking, Executive Vice President, on
December 31, 2007.

Compensation:

Your annual salary will be $350,000, paid bi-weekly at a rate of $13,461.54, less all applicable
federal, state and local taxes and other authorized payroll withholdings. You will be eligible for
an annual performance review in April 2009. You will receive a sign-on bonus in the amount of
$200,000, payable in March 2008. You will receive an additional sign-on bonus of $100,000, payable
on October 1, 2008. You will be eligible to participate in the applicable short term incentive plan
for 2008, payable in 2009, subject to the same provisions of the applicable 2008 short term
incentive plans for individuals at your level. The 2008 Short Term Incentive target amount for a
team member at your level, grade 21, is 68% of your base salary.

Equity Compensation:

Sovereign Bank will award you $500,000 worth of restricted stock as part of its 2008 Long Term
Incentive Program grant cycle. The timing of this grant is tentatively scheduled for approval by
the Compensation Committee of the Board on March 3. The number of shares granted will be determined
by dividing the value of your award by the closing price of Sovereign common stock on December 31,
2007. The award will vest 20% per year for five years on the anniversary of the award. This grant
is subject to the terms and provisions of the 2004 Sovereign Stock Plan. Upon issuance of the award
you will receive notification from Sovereign’s stock plan administrator advising you the award is
available for viewing and grant acceptance.

Employment Agreement:

Sovereign Bank will be requesting that the Compensation Committee of the Board approve that the
Bank enter into an employment agreement with you. The recommendation will include a two year term
renewable annually, with a severance arrangement post change-in-control equating to two times the
sum of (A) the highest base salary paid in the year of termination or preceding two years and (B)
the greater of (i) target bonus in the year of termination or (ii) the highest bonus paid in one of
the three years preceding termination. The bank will also provide you continued medical, dental,
and vision benefits for 24 months at no cost to you if you are currently

 

 

enrolled in the program(s) on the date your employment ends. Pending approval, documentation
for the employment would be forwarded under separate cover.

Benefits:

In addition to your bi-weekly salary, you will be eligible to participate in our Comprehensive
Benefits Program. The program includes a Flexible Benefits Plan, (options such as medical, dental,
vision, life, etc.), that is effective the first of the month after completion of 30 days of
employment. You will receive an enrollment notification within 30 days from your first day of
employment. Along with this notification you will be provided with an Internet web address to
access Sovereign’s On-Line Enrollment System, as well as your enrollment deadline. The On-line
Enrollment System will provide you with your enrollment options as well as details on each program
available. It is important that you enroll by your deadline. Failure to enroll by the deadline will
result in no coverage for you and your eligible dependent(s). Depending on the chosen options, you
may be required to contribute to the cost of your benefits through bi-weekly payroll deductions.
Information on Sovereign’s other benefit programs, including but not limited to 401(k) Savings Plan
and Employee Stock Purchase Plan (ESPP), will be provided to you at orientation.

In addition you will be eligible to participate in the Sovereign Bancorp, Inc. Deferred
Compensation Plan, “DCP”. The DCP is a non-qualified deferred compensation plan which allows
executives to defer on a pre-tax basis, 25% to 100% of the cash portion of their annual incentive
plan. The deferral is not subject to forfeiture and payment may be deferred for a minimum of two
years. The program is administered by Charles Schwab and offers a variety of mutual funds for
investment. Due to Section 409A requirements, you will need to make an election to defer a portion
of your 2008 incentive, paid in 2009, by June 30, 2008. You will receive an email from HR Executive
Compensation when the site is available for enrollment.

Your parking at 75 State Street will be provided to you and subsidized by Sovereign Bank.

Sovereign reserves the right to change, end, or alter plans and eligibility dates at any time.

This offer of employment is made contingent upon successful completion of the following:

	1.	 	Your ability to provide proof of your identity and legal rights to work in the United States,
as specified by the Immigration and Reform Control Act of 1986. The attached list of documents outlines the
proof we can accept as dictated by the U.S. Citizenship and Immigration Services. Please bring the required
forms with you to orientation.

	2.	 	Successful completion of the background checks.

We will be in touch in regards to your orientation.

Please confirm your acceptance by signing the enclosed letter and returning it to my attention.

In addition, please complete the following form and return it to Casey Donato, Recruiting
Assistant, 617-757-5438. Once the results of the background checks have been completed, we will be
able to finalize your start date.

 

 

Release Authorization and Fair Credit Reporting Disclosure Act- please complete this authorization
form and return it to me. This is for your background checks.

A second copy of this letter is provided for your records.

Please recognize that while this letter explains some of the terms of your employment with
Sovereign, it is not an employment contract. The terms and conditions outlined here can be changed
at any time. Employment at Sovereign is considered to be “at-will”, meaning it is at the mutual
consent of both Sovereign Bank and you and may be terminated by either you or Sovereign at any
time, with or without cause and with or without notice.

Roy, we are very enthusiastic about you joining Sovereign Bank and look forward to a mutually
rewarding working relationship. We believe we can offer you opportunities that challenge and reward
you, and we look forward to your accepting our offer.

Sincerely yours,

Thomas J. McAuliffe

Managing Director, Human Resources

Sovereign Bank

Enclosures

Offer accepted as outlined above:

	 	 	 
	/s/
Roy Lever

	 	12/13/07
	 

	 	 
	Roy Lever

	 	Date

 

 

COMPENSATION OFFER — ROY LEVER

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Current	 	Sovereign	 	 	 	% Incr.
	Grade:
	 	 	 	?	 	21	 	 	 	 
	Base Salary:
	 	 	 	$225.0	 	$350.0	 	 	 	55.6%
	Bonus Target %:
	 	 	 	100%	 	68%	 	 	 	 
	Bonus Target $’s:
	 	 	 	$225.0	 	$238.0	 	 	 	5.8%
	 
	 	 	 	 	 	 	 	 	 	 
	Total Cash Comp:
	 	 	 	$450.0	 	$588.0	 	 	 	30.7%
	Annual Equity Grant Range:
	 	*	 	$50.4	 	$500	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Total Comp Range:
	 	 	 	$500.4	 	$1,088	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Sign-on Bonus:
	 	 	 	 	 	$300.0	 	#	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Deferred Comp:
	 	 	 	Up to 100% Bonus and a % of Salary	 	Up to 100% Bonus	 	 	 	 
	Employment Agreement:
	 	 	 	 	 	2 years	 	 	 	Renewed annually

 

			
	*	 	Projected Range; not yet BOD approved
	 
	#	 	Roy indicates 2008 bonus determined at $240K to be paid in February ‘08. In conjunction
with $50K in restricted stock to vest in February ‘08 as well, recommend a $300K sign-on
bonus, to be paid $200K with Sovereign’s bonuses and $100K on October 1, 2008

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