Document:

Exhibit 10.1

 

VOTING AGREEMENT

 

THIS VOTING AGREEMENT (this “Agreement”) is dated as of August 5, 2014, by and between the undersigned holder (“Shareholder”) of Company Common Stock, par value $.01 per share, of Peoples Federal Bancshares, Inc., a Maryland corporation (“Company”), and Independent Bank Corp., a Massachusetts corporation (“Buyer”).  All capitalized terms used but not defined herein shall have the meanings assigned to them in the Merger Agreement (defined below).

 

WHEREAS, concurrently with the execution of this Agreement, Buyer, Buyer Bank, Company and Company Bank are entering into an Agreement and Plan of Merger (as such agreement may be subsequently amended or modified, the “Merger Agreement”), pursuant to which Company shall merge with and into Buyer and, in connection therewith, each outstanding share of Company Common Stock will be converted into the right to receive the Merger Consideration;

 

WHEREAS, Shareholder beneficially owns (as determined pursuant to Rule 13d-3 under the Exchange Act) or has sole or shared voting power with respect to the number of shares of Company Common Stock identified on Exhibit A hereto (such shares, together with all shares of Company Common Stock subsequently acquired by Shareholder during the term of this Agreement, including through the exercise of any stock option or other equity award, warrant or similar instrument, being referred to as the “Shares”), and holds stock options or other rights to acquire the number of shares of Company Common Stock identified on Exhibit A hereto; and

 

WHEREAS, it is a material inducement to the willingness of Buyer to enter into the Merger Agreement that Shareholder execute and deliver this Agreement.

 

NOW, THEREFORE, in consideration of, and as a material inducement to, Buyer entering into the Merger Agreement and proceeding with the transactions contemplated thereby, and in consideration of the expenses incurred and to be incurred by Buyer in connection therewith, Shareholder and Buyer agree as follows:

 

Section 1.                                           Agreement to Vote Shares.  Shareholder agrees that, while this Agreement is in effect, at any meeting of shareholders of Company, however called, or at any adjournment thereof, or in any other circumstances in which Shareholder is entitled to vote, consent or give any other approval, except as otherwise agreed to in writing in advance by Buyer, Shareholder shall:

 

(a)                                 appear at each such meeting, in person or by proxy, or otherwise cause the Shares to be counted as present thereat for purposes of calculating a quorum; and

 

(b)                                 vote (or cause to be voted), in person or by proxy, all the Shares that are beneficially owned by Shareholder or as to which Shareholder has, directly or indirectly, the right to vote or direct the voting, (i) in favor of adoption and approval of the Merger Agreement and the transactions contemplated thereby (including any amendments or modifications of the terms thereof adopted in

 

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accordance with the terms thereof); (ii) against any action or agreement that would reasonably be expected to result in a breach of any covenant, representation or warranty or any other obligation or agreement of Company contained in the Merger Agreement or of Shareholder contained in this Agreement; and (iii) against any Acquisition Proposal or any other action, agreement or transaction that is intended, or could reasonably be expected, to impede, interfere or be inconsistent with, delay, postpone, discourage or materially and adversely affect consummation of the transactions contemplated by the Merger Agreement or of this Agreement.

 

Shareholder further agrees not to vote or execute any written consent to rescind or amend in any manner any prior vote or written consent, as a shareholder of Company, to approve or adopt the Merger Agreement unless the Merger Agreement is terminated in accordance with its terms.   Prior to the termination of this Agreement, the obligations of Shareholder specified in this Section 1 shall apply whether or not the Merger or any action described above is recommended by the board of directors of Company or otherwise subject to a Change in Recommendation.

 

Section 2.                                           No Transfers.  While this Agreement is in effect, Shareholder agrees not to, directly or indirectly, sell, transfer, pledge, assign or otherwise dispose of, or enter into any contract option, commitment or other arrangement or understanding with respect to the sale, transfer, pledge, assignment or other disposition of, any of the Shares, except the following transfers shall be permitted: (a) transfers by will or operation of law, in which case this Agreement shall bind the transferee, (b) transfers in connection with bona fide estate and tax planning purposes, including transfers to relatives, trusts and charitable organizations, subject to the transferee agreeing in writing to be bound by the terms of this Agreement, and (c) such transfers as Buyer may otherwise permit in its sole discretion, subject to any restrictions or conditions imposed by Buyer in its sole discretion.  Any transfer or other disposition in violation of the terms of this Section 2 shall be null and void.

 

Section 3.                                           Representations and Warranties of Shareholder.  Shareholder represents and warrants to and agrees with Buyer as follows:

 

(a)                                 Shareholder has all requisite capacity and authority to enter into and perform his, her or its obligations under this Agreement.

 

(b)                                 This Agreement has been duly executed and delivered by Shareholder, and assuming the due authorization, execution and delivery by Buyer, constitutes the valid and legally binding obligation of Shareholder enforceable against Shareholder in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles.

 

(c)                                  The execution and delivery of this Agreement by Shareholder does not, and the performance by Shareholder of his, her or its obligations hereunder and the consummation by Shareholder of the transactions contemplated hereby will not, violate or conflict with, or constitute a default under, any agreement, instrument,

 

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contract or other obligation or any order, arbitration award, judgment or decree to which Shareholder is a party or by which Shareholder is bound, or any statute, rule or regulation to which Shareholder is subject or, in the event that Shareholder is a corporation, partnership, trust or other entity, any charter, bylaw or other organizational document of Shareholder.

 

(d)                                 Shareholder is the record and beneficial owner of, or is the trustee that is the record holder of, and whose beneficiaries are the beneficial owners of, and has good title to all of the Shares and options set forth on Exhibit A hereto, and the Shares and options are so owned free and clear of any liens, security interests, charges or other encumbrances except as otherwise described on Exhibit A hereto.  Shareholder does not own, of record or beneficially, any shares of capital stock of Company other than the Shares (other than shares of capital stock subject to stock options over which Shareholder will have no voting rights until the exercise of such stock options).  The Shares do not include shares over which Shareholder exercises control in a fiduciary capacity and no representation by Shareholder is made thereby pursuant to the terms hereof.  Shareholder has the right to vote the Shares, and none of the Shares is subject to any voting trust or other agreement, arrangement or restriction with respect to the voting of the Shares, except as contemplated by this Agreement.

 

Section 4.                                           Irrevocable Proxy.  Subject to the last sentence of this Section 4, by execution of this Agreement, Shareholder does hereby appoint Buyer with full power of substitution and resubstitution, as Shareholder’s true and lawful attorney and irrevocable proxy, to the full extent of Shareholder’s rights with respect to the Shares, to vote, if Shareholder is unable to perform his, her or its obligations under this Agreement, each of such Shares that Shareholder shall be entitled to so vote with respect to the matters set forth in Section 1 hereof at any meeting of the shareholders of Company, and at any adjournment or postponement thereof, and in connection with any action of the shareholders of Company taken by written consent.  Shareholder intends this proxy to be irrevocable and coupled with an interest hereafter until the termination of this Agreement pursuant to the terms of Section 7 hereof and hereby revokes any proxy previously granted by Shareholder with respect to the Shares.  The proxy granted by the Shareholder shall not be exercised to vote, consent or act on any matter except as contemplated by Section 1 above.  Notwithstanding anything contained herein to the contrary, this irrevocable proxy shall automatically terminate upon the termination of this Agreement.

 

Section 5.                                           No Solicitation.  Except as otherwise expressly permitted under Section 5.09 of the Merger Agreement, from and after the date hereof until the termination of this Agreement pursuant to Section 7 hereof, Shareholder, in his, her or its capacity as a shareholder of Company, shall not, nor shall such Shareholder authorize any partner, officer, director, advisor or representative of, such Shareholder or any of his, her or its affiliates to (and, to the extent applicable to Shareholder, such Shareholder shall use commercially reasonable efforts to prohibit any of his, her or its representatives or affiliates to), (a) initiate, solicit, induce or knowingly encourage, or knowingly take any action that would reasonably be expected to facilitate the making of, any inquiry, offer or proposal which constitutes, or could reasonably be expected to lead to, an Acquisition Proposal, (b) participate in any discussions or negotiations regarding any Acquisition Proposal, or furnish, or otherwise afford access, to any person (other

 

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than Buyer) any information or data with respect to Company or otherwise relating to an Acquisition Proposal, (c) enter into any agreement, agreement in principle, letter of intent, memorandum of understanding or similar arrangement with respect to an Acquisition Proposal, (d) solicit proxies or become a “participant” in a “solicitation” (as such terms are defined in Regulation 14A under the Exchange Act) with respect to an Acquisition Proposal (other than the Merger Agreement) or otherwise encourage or assist any party in taking or planning any action that would reasonably be expected to compete with, restrain or otherwise serve to interfere with or inhibit the timely consummation of the Merger in accordance with the terms of the Merger Agreement, (e) initiate a shareholders’ vote or action by consent of Company’s shareholders with respect to an Acquisition Proposal, or (f) except by reason of this Agreement, become a member of a “group” (as such term is used in Section 13(d) of the Exchange Act) with respect to any voting securities of Company that takes any action in support of an Acquisition Proposal (other than the Merger Agreement).

 

Section 6.                                           Specific Performance; Remedies.  Shareholder acknowledges that it is a condition to the willingness of Buyer to enter into the Merger Agreement that Shareholder execute and deliver this Agreement and that it will be impossible to measure in money the damage to Buyer if Shareholder fails to comply with the obligations imposed by this Agreement and that, in the event of any such failure, Buyer will not have an adequate remedy at law or in equity.  Accordingly, Shareholder agrees that injunctive relief or other equitable remedy is the appropriate remedy for any such failure and will not oppose the granting of such relief on the basis that Buyer has an adequate remedy at law.  Shareholder further agrees that Shareholder will not seek, and agrees to waive any requirement for, the securing or posting of a bond in connection with Buyer’s seeking or obtaining such equitable relief.  In addition, after discussing the matter with Shareholder, Buyer shall have the right to inform any third party that Buyer reasonably believes to be, or to be contemplating, participating with Shareholder or receiving from Shareholder assistance in violation of this Agreement, of the terms of this Agreement and of the rights of Buyer hereunder, and that participation by any such persons with Shareholder in activities in violation of Shareholder’s agreement with Buyer set forth in this Agreement may give rise to claims by Buyer against such third party.

 

Section 7.                                           Term of Agreement; Termination.  The term of this Agreement shall commence on the date hereof.  This Agreement may be terminated at any time prior to consummation of the transactions contemplated by the Merger Agreement by the written consent of the parties hereto, and shall be automatically terminated in the event that the Merger Agreement is terminated in accordance with its terms; provided, however, that the transfer restrictions in Section 2 hereof shall be automatically terminated upon the receipt of the Requisite Company Shareholder Approval.  Upon such termination, no party shall have any further obligations or liabilities hereunder; provided, however, such termination shall not relieve any party from liability for any willful breach of this Agreement prior to such termination.

 

Section 8.                                           Entire Agreement; Amendments.  This Agreement supersedes all prior agreements, written or oral, among the parties hereto with respect to the subject matter hereof and contains the entire agreement among the parties with respect to the subject matter hereof.  This Agreement may not be amended, supplemented or modified, and no provisions hereof may be modified or waived, except by an instrument in writing signed by each party hereto.  No waiver of any provisions hereof by either party shall be deemed a waiver of any other provision

 

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hereof by any such party, nor shall any such waiver be deemed a continuing waiver of any provision hereof by such party.

 

Section 10.                                    Severability.  In the event that any one or more provisions of this Agreement shall for any reason be held invalid, illegal or unenforceable in any respect, by any court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement and the parties shall use their reasonable efforts to substitute a valid, legal and enforceable provision which, insofar as practical, implements the purposes and intents of this Agreement.

 

Section 11.                                    Capacity as Shareholder.  This Agreement shall apply to Shareholder solely in his or her capacity as a shareholder of Company and it shall not apply in any manner to Shareholder in his or her capacity as a director, officer or employee of Company or in any other capacity.  Nothing contained in this Agreement shall be deemed to apply to, or limit in any manner, the obligations of Shareholder to comply with his or her fiduciary duties as a director of Company, and none of the terms of this Agreement shall be deemed to prohibit or prevent any director or executive officer from exercising his or her fiduciary obligations in the context of a Superior Proposal pursuant to Sections 5.04 or 5.09 of the Merger Agreement.  All rights, ownership and economic benefits of and relating to the Shares contemplated hereby shall remain vested in and belong to Shareholder, and Buyer shall have no authority to exercise any power or authority to direct Shareholder in the voting of any of the Shares, except as otherwise specifically provided herein, or in the performance of Shareholder’s duties or responsibilities as a shareholder of the Company.

 

Section 12.                                    Governing Law.  This Agreement shall be governed by, and interpreted in accordance with, the laws of the Commonwealth of Massachusetts, without regard for conflict of law provisions.

 

Section 13.                                    WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF THE PARTIES IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT OF THIS AGREEMENT.  EACH OF THE PARTIES HERETO (A) CERTIFIES THAT NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 13.

 

Section 14.                                    Waiver of Appraisal Rights; Further Assurances.  Provided that the Merger is consummated in compliance with the terms of the Merger Agreement, that the consideration offered pursuant to the Merger is not less than that specified in the Merger

 

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Agreement executed on or about the date hereof, and that this Agreement has not been terminated in accordance with its terms, to the extent permitted by applicable law, Shareholder hereby waives any rights of appraisal or rights to dissent from the Merger or demand fair value for its Shares in connection with the Merger, in each case, that Shareholder may have under applicable law.  From time to time, prior to the termination of this Agreement, at the Buyer’s request and without further consideration, Shareholder shall execute and deliver such additional documents and take all such further action as may be reasonably necessary or desirable to effect the actions and consummate the transactions contemplated by this Agreement.  Shareholder further agrees not to, prior to the termination of this Agreement, commence or participate in, and to take all actions necessary to opt out of any class in any class action with respect to, any claim, derivative or otherwise, against Buyer, Buyer Bank, Company, Company Bank or any of their respective successors relating to the negotiation, execution or delivery of this Agreement or the Merger Agreement or the consummation of the Merger.

 

Section 15.                                    Disclosure.  Shareholder hereby authorizes Company and Buyer to publish and disclose in any announcement or disclosure required by the Securities and Exchange Commission and in the Proxy Statement-Prospectus such Shareholder’s identity and ownership of the Shares and the nature of Shareholder’s obligations under this Agreement.

 

(remainder of page intentionally left blank)

 

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

 

	
 
    	
INDEPENDENT   BANK CORP.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christopher Oddleifson
    
	
 
    	
Name:   Christopher Oddleifson
    
	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHAREHOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Maurice H. Sullivan, Jr.
    
	
 
    	
Name:   Maurice H. Sullivan, Jr.
    

 

 

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

 

	
 
    	
INDEPENDENT   BANK CORP.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christopher Oddleifson
    
	
 
    	
Name:   Christopher Oddleifson
    
	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHAREHOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   D. Randolph Berry
    
	
 
    	
Name:   D. Randolph Berry
    

 

 

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

 

	
 
    	
INDEPENDENT   BANK CORP.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christopher Oddleifson
    
	
 
    	
Name:   Christopher Oddleifson
    
	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHAREHOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Lee Ann E. Coté
    
	
 
    	
Name:   Lee Ann E. Coté
    

 

 

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

 

	
 
    	
INDEPENDENT   BANK CORP.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christopher Oddleifson
    
	
 
    	
Name:   Christopher Oddleifson
    
	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHAREHOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Myron Fox
    
	
 
    	
Name:   Myron Fox
    

 

 

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

 

	
 
    	
INDEPENDENT   BANK CORP.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christopher Oddleifson
    
	
 
    	
Name:   Christopher Oddleifson
    
	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHAREHOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Hubert Gallagher
    
	
 
    	
Name:   Hubert Gallagher
    

 

 

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

 

	
 
    	
INDEPENDENT   BANK CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christopher Oddleifson
    
	
 
    	
Name:   Christopher Oddleifson
    
	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHAREHOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   William Giudice
    
	
 
    	
Name:   William Guidice
    

 

 

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

 

	
 
    	
INDEPENDENT   BANK CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christopher Oddleifson
    
	
 
    	
Name:   Christopher Oddleifson
    
	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHAREHOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Thomas J. Leetch, Jr.
    
	
 
    	
Name:   Thomas J. Leetch, Jr.
    

 

 

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

 

	
 
    	
INDEPENDENT   BANK CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christopher Oddleifson
    
	
 
    	
Name:   Christopher Oddleifson
    
	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHAREHOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Vincent Mannering
    
	
 
    	
Name:   Vincent Mannering
    

 

 

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

 

	
 
    	
INDEPENDENT   BANK CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christopher Oddleifson
    
	
 
    	
Name:   Christopher Oddleifson
    
	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHAREHOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Norman Posner
    
	
 
    	
Name:   Norman Posner
    

 

 

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

 

	
 
    	
INDEPENDENT   BANK CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christopher Oddleifson
    
	
 
    	
Name:   Christopher Oddleifson
    
	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHAREHOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   John F. Reen, Jr.
    
	
 
    	
Name:   John F. Reen, Jr.
    

 

 

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

 

	
 
    	
INDEPENDENT   BANK CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christopher Oddleifson
    
	
 
    	
Name:   Christopher Oddleifson
    
	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHAREHOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Maurice H. Sullivan, III
    
	
 
    	
Name:   Maurice H. Sullivan, III
    

 

 

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

 

	
 
    	
INDEPENDENT   BANK CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christopher Oddleifson
    
	
 
    	
Name:   Christopher Oddleifson
    
	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHAREHOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Frederick Taw
    
	
 
    	
Name:   Frederick Taw
    

 

 

	
 
    	
IN   WITNESS WHEREOF, the parties hereto have executed and delivered   this Agreement as of the date first written above.
    
	
 
    	
 
    
	
 
    	
INDEPENDENT   BANK CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christopher Oddleifson
    
	
 
    	
Name:   Christopher Oddleifson
    
	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHAREHOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   James J. Gavin
    
	
 
    	
Name:   James J. Gavin
    

 

 

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

 

	
 
    	
INDEPENDENT   BANK CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christopher Oddleifson
    
	
 
    	
Name:   Christopher Oddleifson
    
	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHAREHOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Christopher Lake
    
	
 
    	
Name:   Christopher Lake
    

 

 

EXHIBIT A

 

	
Shareholder
    	
 
    	
Shares
    	
 
    	
Options
    	
 
    
	
D. Randolph Berry
    	
 
    	
110,240
    	
 
    	
0
    	
 
    
	
Lee Ann E. Coté
    	
 
    	
21,549
    	
 
    	
0
    	
 
    
	
Myron Fox
    	
 
    	
47,177
    	
 
    	
0
    	
 
    
	
Hugh Gallagher
    	
 
    	
22,900
    	
 
    	
0
    	
 
    
	
James J. Gavin
    	
 
    	
93,097
    	
 
    	
5,447
    	
 
    
	
William Giudice
    	
 
    	
18,900
    	
 
    	
0
    	
 
    
	
Christopher Lake
    	
 
    	
71,558
    	
 
    	
4,391
    	
 
    
	
Thomas J. Leetch, Jr.
    	
 
    	
150,755
    	
 
    	
5,524
    	
 
    
	
Vincent Mannering
    	
 
    	
30,700
    	
 
    	
0
    	
 
    
	
Norman Posner
    	
 
    	
43,200
    	
 
    	
0
    	
 
    
	
John F. Reen, Jr.
    	
 
    	
25,400
    	
 
    	
0
    	
 
    
	
Maurice H.   Sullivan, III
    	
 
    	
36,735
    	
 
    	
0
    	
 
    
	
Maurice H.   Sullivan, Jr.
    	
 
    	
172,175
    	
 
    	
5,524
    	
 
    
	
Frederick Taw
    	
 
    	
27,900
    	
 
    	
0Exhibit 10.2

 

SETTLEMENT AGREEMENT

 

This Settlement Agreement (the “Agreement”) is entered into as of August 5, 2014 by and among Maurice H. Sullivan, Jr. (the “Executive”), Independent Bank Corp., a Massachusetts corporation, and Rockland Trust Company, a wholly owned subsidiary of Independent Bank Corp. (collectively, “Buyer”), Peoples Federal Bancshares, Inc., a Maryland corporation (“Seller”) and Peoples Federal Savings Bank, a wholly owned subsidiary of the Seller (“Seller Bank”).

 

WITNESSETH:

 

WHEREAS, Buyer, Seller and Seller Bank are entering into an Agreement and Plan of Merger, dated as of August 5, 2014 (the “Merger Agreement”) pursuant to which Buyer will acquire the Seller Bank through the transactions set forth in the Merger Agreement (the “Merger”); and

 

WHEREAS, Buyer, Seller, Seller Bank and the Executive desire to enter into this Agreement, which shall terminate (i) the Executive’s employment with Seller and (ii) the Employment Agreement by and between Seller and the Executive dated July 6, 2010, as amended (the “Employment Agreement”), in each case effective immediately prior to the Effective Time of the Merger, and in lieu of any rights and payments under the Employment Agreement the Executive shall be entitled to receive a lump sum cash payment of $2,091,467 and such other rights and payments set forth herein;

 

NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration the receipt and sufficiency of which is acknowledged, the Executive, Buyer, Seller, and the Seller Bank agree as follows:

 

1.                                      Payments and Other Rights.

 

1.1.                            Lump sum payments.  On the business day coinciding with or next following the eighth day after the Effective Time of the Merger, provided (i) the Executive is still employed by Seller immediately prior to the Effective Time of the Merger and (ii) the Executive has not revoked the release contained in Section 4 hereof, Seller shall make a lump sum payment to the Executive in an amount equal to $2,091,467, in full satisfaction of the obligations of Seller under the Employment Agreement in connection with the consummation of the Merger and the termination of the Executive’s employment with Seller effective immediately prior to the Effective Time of the Merger and as consideration for the Executive’s service to the Company and other obligations under the Consulting and Non-Competition Agreement attached as Exhibit A (the “Consulting Agreement”), less applicable tax withholdings (the total of such sum, the “Total Payment Amount”).  For the avoidance of doubt, the parties agree that the Total Payment Amount includes the lump-sum present value of 36 months of premium payments under welfare plans maintained by Seller and/or Seller Bank and is being paid in full satisfaction of Seller’s obligations under Section 5(d) of each of the Employment Agreement, other than Seller’s obligation to provide supplemental retiree health insurance under Section 3(f) of the Employment Agreement, addressed in Section 1.2(b) below.

 

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The parties agree that the Total Payment Amount is final and binding on all parties and shall not be subject to further adjustment, and that the Total Payment Amount (other than the portion of the Total Payment Amount paid to the Executive as consideration for the Executive’s execution of the Consulting Agreement) and any amounts described in Section 1.2(a) below shall not be paid until the Section 409A waiting period described in Section 2 below has passed, as may be applicable.

 

In consideration of the provisions of this Agreement, Executive, Buyer, Seller, and Seller Bank agree that the Employment Agreement shall terminate without any further action of any of the parties, effective immediately prior to the Effective Time of the Merger.  The Executive agrees that the Total Payment Amount, together with satisfaction of the other obligations set forth in this Agreement, shall be in complete satisfaction of all rights to payments or benefits under the Employment Agreement or any other severance program except as otherwise expressly set forth in this Agreement.

 

1.2.                            Other rights.  The Executive shall additionally be entitled to:

 

(a)                                 payment by Rockland Trust Company of the Change in Control benefit described in Section 2.4 of the Salary Continuation Agreement by and between Seller and the Executive dated September 13, 2006, as amended (the “Salary Continuation Agreement”), which benefit (i) is the payment to Executive of $84,555 per year for twenty years, with such annual benefit payable in equal monthly installments commencing on the first day of the month following the Executive’s termination of employment at the Effective Time of the Merger, and (ii) shall not be accelerated by Buyer under Treasury Regulation Section 1.409A-3(j)(ix)(B) within the 12 months following the Merger;

 

(b)                                 coverage for Executive and his spouse for each of their lifetimes under a supplemental retiree health insurance plan (medical and prescription drug benefits) maintained by Buyer at no cost to the Executive;

 

(c)                                  the payment of the Merger Consideration with respect to the Executive’s common stock of Seller (whether restricted or unrestricted) and payments with respect to Seller stock options, in each case as contemplated by the Merger Agreement;

 

(d)                                 the payment of any vested benefits that the Executive has accrued under (i) any tax-qualified retirement plans maintained or contributed to by Seller and/or Seller Bank in which he is a participant, and (ii) the Voluntary Deferred Compensation and Supplemental Employee Stock Ownership Plan for Executives maintained by Seller and Seller Bank, in each case in accordance with the terms and conditions of such plans;

 

(e)                                  the continued right of the Executive to use the leased automobile that the Executive is presently using through the end of the current lease; the Executive will receive a lump-sum payment within ten days after the end of the current lease (which

 

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ends in April 2015) equal to (i) $729.17 multiplied by (ii) the difference between (a) 36 months and (b) the number of months remaining on the lease after the Effective Time.

 

(f)                                   the right of Executive to elect to purchase at his sole expense continuation coverage under any group health plan maintained by the Seller Bank that is subject to COBRA in which Executive is a participant immediately prior to the Effective Time of the Merger;

 

(g)                                  right of the Executive to convert at his own cost any group insurance coverages (other than health benefits) maintained by Seller Bank in which Executive is a participant to an individual policy in accordance with the conversion provisions of such group insurance policy;

 

(h)                                 the right of the Executive’s beneficiary (as designated by Executive) to a $450,000 death benefit upon Executive’s death under the Seller Bank Split Dollar Plan dated March 1, 2011, as in effect as of the Effective Time of the Merger; and

 

(i)                                     payment by Rockland Trust Company of the Change in Control benefit described in Section 2.4 of the Director Retirement Agreement by and among Seller Bank and the Executive dated November 29, 2004, as amended (the “Director Retirement Agreement”), which benefit (i) is the payment to Executive of $80,455 per year for twenty years, with such annual benefit payable in equal monthly installments commencing on the first day of the month following the Executive’s termination of employment at the Effective Time of the Merger, and (ii) shall not be accelerated by Buyer under Treasury Regulation Section 1.409A-3(j)(ix)(B) within the 12 months following the Merger.

 

2.                                      Section 409A of the Code.  It is the intention of the parties that this Agreement comply with and be interpreted in accordance with Section 409A of the Internal Revenue Code of 1986, as amended and the United States Department of Treasury regulations and other guidance issued thereunder (collectively, “Section 409A”).  Each payment in a series of payments provided to the Executive pursuant to this Agreement will be deemed a separate payment for purposes of Section 409A.  If any amount payable under this Agreement upon a termination of employment is determined by the Company to constitute nonqualified deferred compensation for purposes of Section 409A (after taking into account the short-term deferral exception and the involuntary separation pay exception of the regulations promulgated under Section 409A which are hereby incorporated by reference), such amount shall not be paid unless and until the Executive’s termination of employment also constitutes a “separation from service” from the Company for purposes of Section 409A.  In the event that the Executive is determined by the Company to be a “specified employee” for purposes of Section 409A at the time of his separation from service with the Company, any payments of nonqualified deferred compensation (after giving effect to any exemptions available under Section 409A) otherwise payable to the Executive during the first six (6) months following his separation from service shall be delayed and paid in a lump sum upon the earlier of (x) the Executive’s date of death, or (y) the first day of the seventh month following the Executive’s separation from service, and the balance of the

 

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installments (if any) will be payable in accordance with their original schedule.  To the extent any expense, reimbursement or in-kind benefit provided to the Executive constitutes nonqualified deferred compensation for purposes of Section 409A, (i) the amount of any expense eligible for reimbursement or the provision of any in-kind benefit with respect to any calendar year shall not affect the amount of expense eligible for reimbursement or the amount of in-kind benefit provided to the Executive in any other calendar year, (ii) the reimbursements for expenses for which the Executive is entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred, and (iii) the right to payment or reimbursement or in-kind benefits hereunder may not be subject to liquidation for any other benefit.

 

3.                                      Termination of Employment; Releases.  The Executive’s employment with Seller shall terminate effective immediately prior to the Effective Time of the Merger.  Subject to Buyer’s performance of its obligations under this Agreement, Executive, for himself and for his heirs, successors and assigns, does release completely and forever discharge Buyer, Seller, and Seller Bank, their respective affiliates and successors and the current and former directors, officers, employees and agents of each of them (any and all of which are referred to below as the “Releasees”) from any obligations under the Employment Agreement and any and all other claims, demands, proceedings, agreements (express or implied), obligations, liabilities and causes of action whatsoever, whether known or unknown, whether arising under common law, in equity or under statute, including all claims of discrimination, harassment and retaliation prohibited by any federal, state, or local statute, regulation, or ordinance, including without implication of limitation, Title VII of the Civil Rights Act of 1964, the Americans With Disabilities Act, Massachusetts General Laws chapter 151B, the Massachusetts Wage Act (including but not limited to paid time off, overtime and other wages), the Family and Medical Leave Act, and the Employee Retirement Income Security Act; and all other statutory and common law claims which Executive or his heirs, successors or assigns now have, have ever had or may hereafter have against the Releasees relating to or arising out of any matter related solely to the period prior to the date of Executive’s execution of this Agreement.

 

Notwithstanding the foregoing, Executive does not waive, release or discharge, (i) any right to file an administrative charge or complaint with the Equal Employment Opportunity Commission or other administrative agency, although the Employee waives any right to monetary relief related to such a charge or administrative complaint, (ii) claims which cannot be waived by law, such as claims for workers’ compensation, (iii) any right to earned but unpaid wages, (iv) any right to accrued but unused vacation time, (v) any right to vested benefits under a tax-qualified plan, (vi) the obligations described in Section 1 of this Agreement, or (vii) the obligations of Buyer under the Merger Agreement.

 

Executive agrees to execute an identical “bring-down” release immediately prior to the Effective Time of the Merger in consideration of the payments described above, except that it will cover any claims under the Age Discrimination in Employment Act of 1967, as amended.

 

4.                                      General.

 

4.1                               Heirs, successors and assigns.  The terms of this Agreement shall be binding upon the parties hereto and their respective heirs, successors, and assigns.

 

4

 

4.2                               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.  For avoidance of doubt, the payments and benefits described in Section 1 of this Agreement shall not be increased or decreased as a result of any compensation that Executive may receive from Seller or Seller Bank through the vesting of restricted stock, the exercise of stock options, or otherwise.

 

4.3                               Conflict.  In the event of any conflict between the terms and conditions of this Agreement and any other agreement between the parties, including the Employment Agreement, the Salary Continuation Agreement, and the Director Retirement Agreement, the terms and conditions of this Agreement shall control.

 

4.4                               Withholdings.  Seller, Seller Bank, and Buyer may withhold from any amounts payable under this Agreement such federal, state, or local taxes as may be required to be withheld pursuant to applicable law or regulation.

 

4.5                               Governing law.  This Agreement shall be construed, enforced and interpreted in accordance with and governed by the laws of the Commonwealth of Massachusetts, without reference to its principles of conflicts of law, except to the extent that federal law shall be deemed to preempt such state laws.

 

4.6                               Defined terms.  Any capitalized terms not defined in this Agreement shall have as their meaning the definitions contained in the Merger Agreement.

 

4.7                               Voluntary and knowing action of Executive.  Executive acknowledges that, by his free and voluntary act of signing below, Executive agrees to all of the terms of this Agreement and intends to be legally bound hereby.  This Agreement will remain in effect despite the discovery or existence of any new, additional fact or any fact different from that which Executive now knows or believes to be true.  Executive acknowledges that he has read this Agreement and the Consulting Agreement, that the payments Executive will receive under this Agreement are sufficient consideration for Executive to enter into this Agreement and the Consulting Agreement, and that Executive understands the terms and conditions of this Agreement and the Consulting Agreement.  Executive further acknowledges and agrees that Executive’s decision to enter into this Agreement is not made in reliance upon, in whole or in part, any representation, inducement, promise or agreement, oral or otherwise, not embodied in the Agreement or Consulting Agreement.  Executive represents to Buyer that he had adequate time and opportunity to be represented by legal counsel in connection with the review and execution of this Agreement and the Consulting Agreement, that execution of this Agreement and the Consulting Agreement is Executive’s free act and deed, and that Executive was not compelled to sign this Agreement or the Consulting Agreement by economic hardship or any other form of duress

 

4.8                               Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

 

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4.9                               Amendment.  This Agreement may be amended with the written consent of each of the parties hereto. The consent of Seller and Seller Bank shall not be required to amend this Agreement after the Effective Time of the Merger.

 

5.                                      Effectiveness.  Notwithstanding anything to the contrary contained herein, this Agreement shall be subject to consummation of the Merger in accordance with the terms of the Merger Agreement, as the same may be amended by the parties in accordance with its terms.  In the event the Merger Agreement is terminated for any reason, this Agreement shall be deemed null and void with respect to all actions not yet taken pursuant to this Agreement.

 

[Signature page follows]

 

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IN WITNESS WHEREOF, Buyer, Seller, and Seller Bank have each caused this Agreement to be executed by their duly authorized officers, and the Executive has signed this Agreement, effective as of the date first above written.

 

	
WITNESS:
    	
 
    	
EXECUTIVE:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Thomas J. Leetch, Jr.
    	
 
    	
/s/ Maurice H. Sullivan, Jr.
    
	
Name: Thomas J. Leetch, Jr.
    	
 
    	
Name:
    	
Maurice H. Sullivan, Jr.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
INDEPENDENT BANK CORP.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Linda M. Campion
    	
 
    	
By:
    	
/s/ Christopher Oddleifson
    
	
Name: Linda M. Campion
    	
 
    	
Name:
    	
Christopher Oddleifson
    
	
 
    	
 
    	
Title:
    	
Chief Executive Officer and President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
ROCKLAND TRUST COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Linda M. Campion
    	
 
    	
By:
    	
/s/ Christopher Oddleifson
    
	
Name: Linda M. Campion
    	
 
    	
Name:
    	
Christopher Oddleifson
    
	
 
    	
 
    	
Title:
    	
Chief Executive Officer and President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
PEOPLES FEDERAL BANCSHARES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Christopher Lake
    	
 
    	
By:
    	
/s/ Maurice H. Sullivan, Jr.
    
	
Name: Christopher Lake
    	
 
    	
Name:
    	
Maurice H. Sullivan, Jr.
    
	
 
    	
 
    	
Title:
    	
Chairman and Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
PEOPLES FEDERAL SAVINGS BANK
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Christopher Lake
    	
 
    	
By:
    	
/s/ Thomas J. Leetch, Jr.
    
	
Name: Christopher Lake
    	
 
    	
Name:
    	
Thomas J. Leetch, Jr.
    
	
 
    	
 
    	
Title:
    	
President and Chief Executive Officer
    

 

7

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