Document:

forms3_2008exh4-1.htm

    Exhibit
4.1

     

     

    STATE
BANCORP, INC.

    AMENDED
AND RESTATED

    DIVIDEND
REINVESTMENT AND STOCK PURCHASE PLAN (2008)

    (as
adopted July 29, 2008)

    

    1.           Purpose.

     

    The
purpose of the STATE BANCORP, INC. Amended and Restated Dividend Reinvestment
and Stock Purchase Plan No. 2 (the “Plan”) is to provide Participants with a
convenient way to reinvest dividends received on Common Stock and to purchase
additional shares of Common Stock through Voluntary Cash
Payments.  The Company believes that participation in the Plan will
help to achieve the unity of purpose essential to the continued growth of the
Company and will be for the mutual benefit of the Company and the
Participants.

     

    2.           Definitions.

     

    The
following defined terms, which are capitalized throughout the Plan, shall have
the meanings set forth in this Section.

     

    “Agent”
shall mean the Agent appointed in accordance with Section 4 hereof.

     

    “Common
Stock” shall mean whole or fractional shares of the Company’s Common Stock, par
value $5.00 per share.

     

    “Company”
shall mean STATE BANCORP, INC., a New York corporation, and its successors and
assigns.

     

    “Dividends”
shall mean any cash dividends, as declared from time to time, on the Common
Stock.

     

    “Fair
Market Value” shall mean the closing price for shares of Common Stock on the
stock exchange on which the Common Stock is listed (including, without
limitation, the NASDAQ Stock Market) on the last business day of the calendar
quarter immediately preceding the Investment Date.  If and when the
Company ceases to be listed on a stock exchange, but is quoted on the
over-the-counter market through NASDAQ, “Fair Market Value” shall mean the
closing bid for shares of Common Stock as so quoted on the last business day of
the calendar quarter immediately preceding the Investment Date.  If
the Company’s Common Stock is no longer quoted on the NASDAQ system and is not
listed on any stock exchange, or if no bid price is quoted on the NASDAQ system
on such date, then “Fair Market Value” shall be determined by the Company’s
Board of Directors in accordance with any reasonable valuation
method.

     

    “Investment
Date” shall mean (i) in the case of the Dividend Reinvestment portion of
the Plan, any date on which the Agent receives Dividends pursuant to Section
6.03, and (ii) in the case of Voluntary Cash Payments portion of the Plan, five
(5) business days after the last day of the calendar quarter in which the Agent
receives Voluntary Cash Payments pursuant to Sections 7.01 and
7.02.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    “Original
Plan” shall mean the Dividend Reinvestment and Stock Purchase Plan as adopted on
May 23, 2000.

     

    “Participant”
shall mean any Stockholder who has submitted a properly completed enrollment
form to the Agent in accordance with the rules and regulations established by
the Company.

     

    “Participating
Shares” shall mean the whole and fractional shares of Common Stock owned by a
Participant which are either designated as Participating Shares by the
Participant pursuant to Section 6.02 or held by the Agent for the Participant
pursuant to Section 11.01, 11.03 or 12.01.

     

    “Plan”
shall mean this Amended and Restated Dividend Reinvestment and Stock Purchase
Plan No. 2 of the Company and any amendments hereto.

     

    “Stockholder”
shall mean any record owner of Common Stock.

     

    “Subsidiary”
shall mean any subsidiary owned directly or indirectly by the
Company.

     

    “Voluntary
Cash Payments” shall mean payments of the type described in Section 7
hereof.

     

    3.   Effective
Date.

     

    The
Original Plan became effective on June 30, 2000.  The Plan shall
become effective on such date as the post-effective amendment to the
registration statement becomes effective according to the rules and regulations
of the Securities and Exchange Commission.

     

    4.   Administration.

     

    4.01. The
Company shall have complete authority in its sole discretion to make, interpret
and administer such rules and regulations as it deems necessary to implement and
administer the Plan, and any determination, decision or action of the Company in
connection with the construction, interpretation, administration or application
of the Plan shall be final, conclusive and binding upon all Participants and any
and all persons claiming under or through any Participant.

     

    4.02. The
Company shall appoint a financial institution selected by the Company in its
sole discretion (the “Agent”) to administer certain tasks relating to the Plan
as provided herein or as otherwise designated by the Company.

     

    5.           Eligibility.

     

    5.01 Any
Stockholder who is a resident of the United States of America is eligible to
participate in the Plan.  To enroll in the Plan, a Stockholder must
submit a properly completed enrollment form to the Agent in accordance with
rules and regulations established by the Company.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    5.02 A broker
or nominee who is a record owner of Common Stock may participate in the Plan on
behalf of a beneficial owner of Common Stock.

     

    6.   Dividend
Reinvestment.

     

    6.01 Any
Participant may elect to participate in the Plan with respect to all or any
portion of the shares of Common Stock registered in his name, and such shares
designated by the Participant shall thereupon be Participating
Shares.

     

    6.02 A
Participant shall make an initial election as to the number of his Participating
Shares upon enrollment in the Plan.  The Participant may from time to
time thereafter make elections to change the number of his Participating Shares,
and such elections shall become effective in accordance with rules and
regulations established by the Company.

     

    6.03 As and
when Dividends are paid on the Common Stock, the Company shall promptly pay to
the Agent all Dividends payable on Participating Shares (less tax withheld, if
any).

     

    7.   Voluntary Cash
Payments.

     

    7.01 Any
Participant that owns at least one hundred (100) full shares of the Common Stock
may make Voluntary Cash Payments at such time or times as may be established by
the Company; provided, however, that no Participant may make Voluntary Cash
Payments to be applied on any one Investment Date in excess of TEN THOUSAND
DOLLARS ($10,000), or less than ONE HUNDRED DOLLARS ($100).

     

    7.02 All
Voluntary Cash Payments shall be made to the Agent.  Participants
shall make Voluntary Cash Payments by check, or such other means as the Company
shall determine.

     

    7.03 Voluntary
Cash Payments will be held by the Agent, without interest, until the Investment
Date.

     

    8.   Purchases of Common
Stock.

     

    8.01 The
Company has set aside 1,000,000 shares of Common Stock to be available for
purchase under the Plan, subject to adjustment as provided in Section 16
hereof.

     

    8.02 (a)           The
Agent shall apply the Dividends received in accordance with Section 6 hereof and
any Voluntary Cash Payments received in accordance with Section 7 hereof to the
purchase of shares of Common Stock from the Company or on the open market, and
shall allocate such shares (including fractional shares) to each Participant in
accordance with the amount of Dividends and/or Voluntary Cash Payments received
with respect to the Participant.  The Agent shall apply Dividends and
any Voluntary Cash Payments to the purchase of Common Stock on each Investment
Date or as soon as practicable thereafter.

                            

                           
(b)           The
purchase price to each Participant of Common Stock purchased from the Company
shall be determined in the sole discretion of the Company as
follows:

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    (i)           For
Common Stock purchased by a Participant with the reinvestment of Dividends, the
purchase price of common shares purchased shall not be less than ninety-five
percent (95%) of the Fair Market Value of the Common Stock on the last business
day of the calendar quarter immediately preceding the Investment Date involved
or less than the par value of the Common Stock.  The purchase price
per share allocated to each Participant of Common Stock purchased on the open
market shall normally be the weighted average purchase price of all Common Stock
so purchased under the Plan each quarter.

     

    (ii)           For
Common Stock purchased by Participants with Voluntary Cash Payments, the
purchase price shall not be less than one hundred percent (100%) of the Fair
Market Value of the Common Stock on the last business day of the calendar
quarter immediately preceding the Investment Date involved or less than the par
value of the Common Stock.  The purchase price per share allocated to
each Participant of Common Stock purchased on the open market shall normally be
the weighted average purchase price of all Common Stock so purchased under the
Plan each quarter.

     

    8.03 The
Company shall adopt a written policy setting forth the circumstances under which
the Agent is to purchase Common Stock from the Company and the circumstances
under which the Agent is to purchase Common Stock on the open market and may
amend such policy from time to time.

     

    9.   Payment of Fees and
Commissions.

     

    9.01           The
Company shall pay the brokerage fees and commissions in connection with the
purchase of shares of Common Stock purchased pursuant to a Participant’s
reinvestment of Dividends pursuant to Section 6.

     

    9.02           The
Participant shall pay the brokerage fees and commissions (a) in connection with
the purchase of shares of Common Stock purchased pursuant to such Participant’s
Voluntary Cash Payments made pursuant to Section 7, which shall be deducted from
the Voluntary Cash Payments, and (b) if such Participant withdraws from the Plan
and elects to receive the cash value of the shares held in such Participant’s
account pursuant to Section 14, such fees and commissions to be deducted from
the sale proceeds.

     

    10.        
Commingling of
Funds.

     

    The Agent
may commingle the funds of a Participant with those of other
Participants.

     

    11.        
Custody of Purchased Common
Stock; Issuance of Certificates to Participants.

     

    11.01 Except as
set forth in Section 11.02 below, the Agent shall hold as custodian for the
Participants, in the name of the Agent or in the name of a nominee, all of the
Common Stock purchased pursuant to the Plan.

     

    11.02 If a
Participant so requests in writing at the time, the Agent shall deliver to the
Participant one or more certificates, registered in the name of the Participant,
for all or any portion of the whole shares of Common Stock held by the Agent for
the Participant.  The shares represented by such certificates which
are delivered to the Participant shall continue to be Participating Shares,
unless appropriate election is made pursuant to Section 6.02 or Section
14.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    11.03 A
Participant may deliver to the Agent one or more certificates for shares of
Common Stock owned by such Participant and registered in the Participant's name,
duly endorsed for transfer and with the Participant's signature properly
guaranteed.  The shares represented by such certificate or
certificates shall be held by the Agent as custodian for the Participant in the
name of the Agent or in the name of a nominee, subject to all of the other
provisions of this Plan.  The shares represented by such certificates
shall become Participating Shares.

     

    12.        
Non-Cash Dividends and
Distributions: Rights Offerings.

     

       
12.01 Absent an
election by the Participant to the contrary, if any dividends on any
Participating Shares are paid in Common Stock, or if Common Stock is distributed
on account of Participating Shares in connection with any stock split or similar
transaction, then such Common Stock shall be delivered by the Company to the
Agent and shall be held by the Agent for the Participant, and all such shares
shall become Participating Shares.

                  

                   
12.02 If rights
to subscribe to Common Stock are distributed on account of Participating Stock
in connection with any offering of shares of Common Stock by the Company, then
such rights shall be delivered by the Company to the Agent, which shall deliver
same to the Participant, who shall have the sole right to exercise the rights,
or to sell, assign or transfer them.  Any shares of Common Stock
issued upon the exercise of such rights shall not become Participating Shares
unless delivered to the Agent pursuant to Section 11.03.

     

    13.        
Records; Reports to
Participants; Voting Rights.

     

       
13.01 The Agent
shall establish and maintain a separate account under the Plan for each
Participant and shall maintain all accounting and other records necessary to
prepare the report described in Section 13.02 hereof.

     

        13.02 As
promptly as practicable after each purchase of Common Stock pursuant to the
Plan, the Agent shall prepare and send to each Participant whose Dividends
and/or Voluntary Cash Payments have been applied to such purchase, a report of
all transactions in his account since the last such report, including a
statement of the number of shares of Common Stock held for the Participant, the
amount of Dividends allocable to the Participant, the amount of any Voluntary
Cash Payments made by the Participant, and the amount of Common Stock purchased
for the Participant and the price paid for such stock.

     

       
13.03 The
Agent, in cooperation with the Company, shall furnish each Participant who is
not a holder of record of Common Stock with all annual, quarterly and other
reports distributed generally to the Company's shareholders.

     

        13.04 The
Agent, in cooperation with the Company, shall furnish each Participant with all
proxy material, including a form of proxy, relating to any annual or special
meeting of the Company's shareholders.  Such form of proxy shall cover
all whole shares of Common Stock held for a Participant under the Plan and shall
be voted as and to the extent specified thereon by the Participant. The Agent
shall have no authority to vote any shares of Common Stock held for any
Participant, whether or not a Participant votes them.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

       
13.05 The
Company and the Agent shall cooperate in taking all actions reasonable to assure
accurate reporting to Participants and to the Internal Revenue Service of
Dividends paid and any taxes withheld thereon; provided, however, that no action
or failure to act on the part of the Company or the Agent shall relieve any
Participant of any tax which may be payable on Dividends or otherwise in
connection with the Plan.

     

    14.        
Termination of
Participation.

     

    A
Participant may terminate his participation in the Plan at any time by giving to
the Agent written notice of such termination (which notice shall be effective
two (2) business days after receipt by the Agent) or by withdrawing pursuant to
Section 6.02 all of his whole shares of Common Stock which are Participating
Shares.  The participation of a Participant shall also terminate
automatically upon the Agent's receipt of written notice of the death of the
Participant or upon the Company giving written notice to the Participant in the
event of any termination of the Plan pursuant to Section 15.  Upon any
such termination, the affected Participant or his designated beneficiary shall
receive certificates, registered in his name, for the number of whole shares of
Common Stock held for the Participant, together with a check for the Fair Market
Value (as of the date participation is terminated) of any fractional shares of
Common Stock held; provided, however, that the Company may permit a Participant
to request that the Agent sell all or any portion of the whole shares of Common
Stock held for the Participant, with the Participant receiving the proceeds from
such sale less any brokerage commissions and fees.  After any such
termination, any Dividends (or other distributions) and/or Voluntary Cash
Payments received shall be forwarded to the Participant.

     

    15.        
Amendment and Termination of
the Plan.

     

    The
Company shall have complete authority in its sole discretion to suspend or
terminate the Plan, in whole or in part, or to amend the Plan.

     

    16.         Dilution and Other
Adjustments.

     

    16.01 If the
outstanding shares of Common Stock are increased, decreased or changed into, or
exchanged for, a different number or kind of shares or securities of the
Company, with or without receipt of consideration by the Company, through a
reorganization, merger, recapitalization, reclassification, stock split, stock
consolidation, stock dividend, or similar event, then an appropriate and
proportionate adjustment shall be made in the number and kind of shares or other
securities covered by the Plan.

     

    16.02 Adjustments
under Section 16.01 hereof shall be made by the Company, whose determination as
to what adjustments shall be made, and the extent thereof, shall be final and
conclusive.

     

    17.         Construction.

     

    As used
herein, the singular shall include the plural and vice versa, and the masculine
shall include the feminine.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    18.         Governing
Law.

     

    The
interpretation and performance of the Plan shall be governed by the laws of the
State of New York.exhibit10.htm

    EXHIBIT
10.6

     

    Washington
Trust Bancorp, Inc.

    Form
of Deferred Stock Unit Award Agreement

     

    

    The form
of Deferred Stock Unit Award Agreement (the “Agreement”) contains blanks where
the executive’s name, target number of shares, grant date, vesting date,
performance period, shortened performance period start date, and months in term
provided under the Agreement vary for each executive.  The information
for the executive officers who entered into the Agreement is provided in the
following chart:

    

    
      	
              Executive
      Officer

            	
              Target
      number of share

            	
              Grant
      date

            	
              Vesting
      date

            	
              Performance
      period

            	
              Shortened
      performance period start date

            	
              Months
      in term

            
	
              John
      C Warren

            	
              6,007

            	
              June 16,
      2008

            	
              April 30,
      2010

            	
              January 1,
      2008 through December 31, 2009

            	
              January 1,
      2008

            	
              22

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              John
      F. Treanor

            	
              6,086

            	
              June 16,
      2008

            	
              June 16,
      2011

            	
              January 1,
      2008 through December 31, 2010

            	
              January 1,
      2008

            	
              36

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    WASHINGTON
TRUST BANCORP, INC.

     

    2003
Stock Incentive Plan

     

    DEFERRED
STOCK UNIT AWARD AGREEMENT

     

    
      	
              Name
      of Grantee:

            	
              <<Name>>

            
	
              No.
      of Target Shares:

            	
              <Target
      Number of Shares>>

            
	
              Grant
      Date:

            	
              <<Grant
      Date>>

            
	
              Vesting
      Date:

            	
              <<Vesting
      Date>>

            

    

     

    Pursuant
to the Washington Trust Bancorp, Inc. 2003 Stock Incentive Plan (the “Plan”) as
amended through the date hereof, Washington Trust Bancorp, Inc. (the
“Corporation”) hereby grants a Deferred Stock Unit Award (an “Award”) to the
Grantee named above.  No shares of Stock shall be issued unless the
provisions of Paragraph 2, 3, 4 or 5 are satisfied.

     

    1.  Defined
Terms.  For purposes of this Agreement, the following terms
shall mean:

    
      	
              a)  

            	
              Performance Measurement
      Period:  January 1, 20XX through December 31,
      20XX.  Performance will be assessed for each calendar year in
      the Performance Measurement Period.

            

    

    
      	
              b)  

            	
              Acceleration Event
      Date:  The date of the Grantee’s death, Retirement or
      Permanent Disability or a Change in Control of the
      Corporation.

            

    

    
      	
              c)  

            	
              Shortened Performance
      Measurement Period:  The period from January 1, 20XX
      through the Acceleration Event Date.  Performance will be
      assessed as available for each year within the Shortened Performance
      Measurement Period.  Calendar year performance will be used for
      each completed year; and for any partial years, year-to-date performance
      through the completed calendar quarter immediately preceding or coinciding
      with the Acceleration Event Date.  Performance for a partial
      year will be weighted accordingly.

            

    

    
      	
              d)  

            	
              Peer
      Group:  SNL Index of publicly-traded banks and thrifts
      located in New England and Mid-Atlantic with assets of $1 billion to $5
      billion (excluding institutions in Puerto Rico) as constituted at the end
      of the Performance Measurement Period or Shortened Performance Measurement
      Period, as applicable.

            

    

    
      	
              e)  

            	
              Retirement:  Separation
      from service from the Corporation or a Subsidiary after attaining age 65
      or after attaining age 55 with at least ten years of
    service.

            

    

    
      	
              f)  

            	
              Permanent
      Disability:  The Grantee is unable to engage in any
      substantial gainful activity by reason of any medically determinable
      physical or mental impairment that can be expected to result in death or
      can be expected to last for a continuous period of not less than 12 months
      or the Grantee is, by reason of any medically determinable physical or
      mental impairment that can be expected to result in death or can be
      expected to last for a continuous period of not less than 12 months,
      receiving income replacement benefits for a period of not less than three
      months under an accident and health plan covering employees of the
      Corporation or a Subsidiary.

            

    

    

    2.  Issuance of
Stock.  The actual number of shares of Stock to be issued to
the Grantee will vary depending upon the Corporation’s performance during the
Performance Measurement Period with respect to core return on equity (“Core
ROE”) and core earnings per share growth (“Core EPS Growth”) relative to Core
ROE and Core EPS Growth for the same period by the Peer Group.  Core
ROE and Core EPS Growth performance will receive equal weighting.  The
Corporation’s relative performance ranking in Core ROE and Core EPS Growth in
each calendar year in the Performance Measurement Period will be averaged to
determine the actual number of shares of Stock, if any, to be issued to the
Grantee pursuant to the following table:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              Corporation’s
      Performance

              vs. Peer Group’s
Performance

            	
              Percentage of Target
  Shares

            
	
              Below
      25th
      percentile

            	
              0%

            
	
              25th
      percentile

            	
              50%

            
	
              50th
      percentile

            	
              100%

            
	
              75th
      percentile

            	
              150%

            
	
              100th
      percentile

            	
              200%

            

    

    

    The
percentage of Target Shares to be issued where performance achievement is
between stated percentiles is determined based on a straight line
interpolation.  Notwithstanding the foregoing, if relative performance
for either the Corporation’s Core ROE or Core EPS Growth is less than the
25th
percentile relative to the Peer Group’s, the Award will be
forfeited.

    

    Once
performance results for the Corporation and the Peer Group are available, the
Administrator shall certify performance achievement within ten (10)
days.  Upon certification by the Administrator and subject to
continued employment of the Grantee by the Corporation through the Vesting Date,
the number of shares of Stock determined pursuant to this Paragraph 2 shall be
issued and delivered to the Grantee, either via book entry or actual stock
certificates, and the Grantee’s name shall be entered as the stockholder of
record on the books of the Corporation, within ten (10) days following such
certification or Vesting Date, if later.  Thereupon, the Grantee shall
have all the rights of a shareholder with respect to such shares, including
voting and dividend rights.

    

    3.  Death of the
Grantee Prior to Issuance of Stock.  In the event of the
Grantee’s death prior to the end of the Performance Measurement Period, the
Administrator shall determine the number of shares of Stock to be issued to the
Grantee’s beneficiary or estate in accordance with the principles set forth in
Paragraph 2 based upon the Corporation’s performance relative to the Peer
Group’s during the Shortened Performance Measurement Period.  In the
event of the Grantee’s death after the end of the Performance Measurement Period
but prior to the Vesting Date, the Administrator shall determine the number of
shares of Stock to be issued to the Grantee’s beneficiary or estate in
accordance with the provisions of Paragraph 2.  The requirement that
the Grantee be employed by the Corporation through the Vesting Date shall be
waived in the event of the Grantee’s death.  Stock shall be issued
within 90 days of the Grantee’s death or the date that the Administrator
certifies the performance achievement of the Corporation, if later.

    

    Notwithstanding
the foregoing, in the event the Grantee dies prior to the completion of at least
one full calendar quarter in the Shortened Performance Measurement Period, no
shares of Stock will be issued to the Grantee’s beneficiary or
estate.

    

    4.  Retirement or
Permanent Disability of the Grantee Prior to Issuance of
Stock.  In the event of the Grantee’s Retirement or Permanent
Disability prior to the end of the Performance Measurement Period, the
Administrator shall determine the number of shares of Stock to be issued in
accordance with the principles set forth in Paragraph 2 based upon the
Corporation’s performance relative to the Peer Group’s during the Shortened
Performance Measurement Period.  In the event of the Grantee’s
Retirement or Permanent Disability after the end of the Performance Measurement
Period but prior to the Vesting Date, the Administrator shall determine the
number of shares of Stock to be issued to the Grantee in accordance with the
provisions of Paragraph 2.  The requirement that the Grantee be
employed by the Corporation through the Vesting Date shall be waived in the
event of the Grantee’s Retirement or Permanent Disability.  The actual
number of shares of Stock to be issued to the Grantee pursuant to this Paragraph
4 shall be determined by multiplying the number of shares determined by the
Administrator pursuant to the preceding sentences by a fraction, the numerator
of which shall be the number of full calendar months from the Grant Date through
the Grantee’s Retirement or Permanent Disability, and the denominator of which
shall be <<months in term>>.

    

    If the
Grantee becomes entitled to the shares on account of Permanent Disability, the
shares of Stock shall be issued to the Grantee within 90 days after the Grantee
is determined to be permanently disabled.  If the Grantee becomes

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    entitled
to the shares on account of his Retirement, the shares of Stock so determined
under this Paragraph 4 shall be issued to Grantee in the seventh month after the
Grantee’s Retirement.

    Notwithstanding
the foregoing, in the event the Grantee’s Retirement or Permanent Disability
occurs prior to the completion of at least one full calendar quarter in the
Shortened Performance Measurement Period, no shares of Stock will be issued to
the Grantee.

    

    5.  Change in
Control.  In the event a Change in Control of the Corporation
(as defined in the Plan) occurs prior to the end of the Performance Measurement
Period, the Administrator shall determine the number of shares of Stock to be
issued in accordance with the principles set forth in Paragraph 2 based upon the
Corporation’s performance relative to the Peer Group’s during the Shortened
Performance Measurement Period.  In the event a Change in Control of
the Corporation (as defined in the Plan) occurs after the end of the Performance
Measurement Period but prior to the Vesting Date, the Administrator shall
determine the number of shares of Stock to be issued to the Grantee in
accordance with the provisions of Paragraph 2.  The requirement that
the Grantee be employed by the Corporation through the Vesting Date shall be
waived in the event of a Change in Control of the Corporation.

    

    If the
Change in Control of the Corporation qualifies as a “change in control event”
within the meaning of Section 409A of the Internal Revenue Code of 1986, as
amended and the regulations promulgated thereunder (“Section 409A”), the shares
of Stock so determined under this Paragraph 5 (or cash equivalent if shares of
Stock are no longer available) shall be issued to the Grantee immediately
following the Change in Control of the Corporation, subject to certification of
performance achievement of the Corporation within ten (10) days after
performance results for the Corporation and the Peer Group become
available.  If the Change in Control of the Corporation does not
qualify as a “change in control event” within the meaning of Section 409A, and
subject to certification of performance achievement of the Corporation within
ten (10) days after performance results for the Corporation and the Peer Group
become available, the shares of Stock so determined under this Paragraph 5 (or
cash equivalent if shares of Stock are no longer available) shall be issued to
the Grantee upon the earliest of (i) the Vesting Date, (ii) the Grantee’s death,
or (iii) the Grantee’s “separation from service” within the meaning of Section
409A; provided, however, that if the Grantee is a “specified employee” within
the meaning of Section 409A upon his separation from service, the issuance shall
be delayed until the seventh month after the Grantee’s separation from
service.

    

    Notwithstanding
the foregoing, in the event the Change in Control of the Corporation occurs
prior to the completion of at least one full calendar quarter in the Shortened
Performance Measurement Period, no shares of Stock will be issued to the
Grantee.

    

    6.  Restrictions
and Conditions.

    
      	
              a)  

            	
              The
      Award granted herein may not be sold, assigned, transferred, pledged or
      otherwise encumbered or disposed of by the Grantee prior to issuance of
      shares of Stock.

            

    

    
      	
              b)  

            	
              If
      the Grantee’s employment with the Corporation and its Subsidiaries is
      voluntarily or involuntarily terminated for any reason (other than death,
      Permanent Disability, Retirement or after a Change in Control) prior to
      the Vesting Date, the Award shall automatically be
    forfeited.

            

    

    
      	
              c)  

            	
              If
      the Corporation is required to prepare an accounting restatement due to
      the material noncompliance with any financial reporting requirement under
      the Federal securities laws, the Grantee is required to reimburse the
      Corporation for the value of shares of Stock issued to him under this
      Award that would not have been earned based on the restated financial
      results.

            

    

    

    7.  Dividend
Equivalent.  Upon the issuance of shares of Stock to the
Grantee, the Corporation shall also provide the Grantee with a lump sum cash
payment in an amount equal to the amount of dividends per share paid by the
Corporation from the Grant Date through the share issuance date multiplied by
the number of shares of Stock actually issued to the Grantee.

    

    8.  Incorporation
of Plan.  Notwithstanding anything herein to the contrary, this
Agreement shall be subject to and governed by all the terms and conditions of
the Plan.  Capitalized terms in this Agreement shall have the meaning
specified in the Plan, unless a different meaning is specified
herein.

    

    9.  Tax
Withholding.  The Grantee shall, not later than the date as of
which the receipt of this Award becomes a taxable event for Federal income tax
purposes, pay to the Corporation or make arrangements satisfactory to the
Administrator for payment of any Federal, state, and local taxes required by law
to be withheld on account of such taxable event.  The Grantee may
elect to have the required minimum tax withholding obligation satisfied, in
whole or 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    in part,
by authorizing the Corporation to withhold from shares of Stock to be issued, a
number of shares of Stock with an aggregate Fair Market Value that would satisfy
the withholding amount due.

    

    10.  Miscellaneous.

    
      	
              a)  

            	
              Notice
      hereunder shall be given to the Corporation at its principal place of
      business, and shall be given to the Grantee at the address maintained in
      the Corporation’s payroll records, or in either case at such other address
      as one party may subsequently furnish to the other party in
      writing.

            

    

    
      	
              b)  

            	
              This
      Agreement does not confer upon the Grantee any rights with respect to
      continuation of employment by the Corporation or any
      Subsidiary.

            

    

    
      	
              c)  

            	
              This
      Agreement shall be governed by, and construed in accordance with, the laws
      of the State of Rhode Island, applied without regard to conflict of law
      principles.

            

    

    

    
      	
              WASHINGTON
      TRUST BANCORP, INC

            	 
      
	
              By:

            	 	 
	 
      	
              Gary
      P. Bennett, Chairperson

            	
               

            
	 
      	
              Compensation
      & Human Resources Committee

            	
               

            

    

     

     

    I hereby
accept the Award in accordance with the terms of this Agreement.

     

     

    
      
        	
                 

              	 	 
	 
      	
                <<Name>>

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