Document:

Exhibit 10.3

 

Berkshire Hills Bancorp, Inc. 
 Executive Compensation Agreement

 

Tara G. Corthell

 

Overview:

 

As you know, Berkshire Hills Bancorp, Inc. (“Berkshire”) has entered into an Agreement and Plan of Merger between Berkshire and Hampden Bancorp, Inc. (“Hampden”), dated as of November 3, 2014. This agreement describes your current agreement and the agreement for your future compensation.

 

Current Arrangements:

 

·               Change in Control Agreement - Your change in control agreement provides for a lump sum cash payment equal to one (1) times your prior five-year “annual compensation” (as defined in the change in control agreement) and up to 18 months of continued health, dental and disability insurance at no cost to you, if following a Change in Control your employment is terminated Without Cause or With Good Reason. In addition, if you are offered employment that is comparable in terms of compensation and responsibilities, and you remain employed for six (6) months, you will receive a lump sum payment equal to 3 months base salary.

 

·               You are also subject to certain non-solicitation obligations for six (6) months following your termination of employment under the change in control agreement.

 

Proposed Compensation Arrangements:

 

·               Effective on the closing date of the merger, you will be employed by Berkshire in a Senior Finance Position. Your initial base salary will be $150,000, and it is agreed that you will primarily be working in a Springfield location, but you understand that periodic travel to Pittsfield will be a requirement of the job.

 

·               Effective on the closing date of the merger, you will participate in Berkshire’s change in control severance plan on similar terms as other similarly situated officers (and with the same change in control multiple as provided under your current agreement).

 

·               Effective on the closing date of the merger, you will receive a stay bonus of $100,000 payable in cash.

 

·               If at any time during the first six months following the closing date of the merger, your employment with Berkshire is terminated as a result of a mutual decision between the parties for any reason other than cause, or after completing six months of employment with Berkshire, you decide unilaterally within five business days to resign for any reason, Berkshire will pay you $45,000 provided that you will be subject to the same non-solicitation restrictions as provided in your current change in control agreement for six (6) months.

 

 

·               You will receive a minimum annual performance bonus of $50,000 for each of the first two years following the closing date of the merger (for total aggregate bonuses of $100,000), assuming you are still employed by Berkshire on each one-year anniversary from the closing date of the merger (for two years) payable one-half in cash and one-half in the form of restricted stock that will vest over three years, with one-third vesting each year. If Berkshire terminates your employment during the first two years following the closing date of the merger for a reason other than cause (as such term is defined in Berkshire’s employment agreement with its President and Chief Executive Officer), you will receive the minimum annual performance bonus of $50,000 that would otherwise have been paid to you for that year (as if you had remained employed on the applicable anniversary date of the merger), and you will forfeit any subsequent performance bonuses.

 

·               You will agree to add an automatic limitation to your change in control agreement, so that amounts and benefits payable to you in connection with the change in control will be automatically limited so as not to permit any excess parachute payments under Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”).

 

·               Hampden will terminate your change in control agreement prior to the effective time of the merger, and you will not receive any payment or benefits under the agreement. You will provide any consents that may be required.

 

·               Effective October 31, 2014, you agree that any compensation resulting from the exercise of stock options and/or the sale of stock received upon such stock option exercise will not be included in the definition of “annual compensation” under your change in control agreement for purposes of determining cash severance that may be due in connection with a change in control.

 

·               All payment amounts are subject to adjustment depending on final tax calculations, confirmation of 2010 through 2014 compensation and are subject to applicable tax withholding. All payments of deferred compensation will be subject to a six-month delay if and to the extent necessary and advisable to avoid additional taxes and penalties under Section 409A of the Code.

 

·               Berkshire makes no representation and warranties with respect to excess parachute payments under Section 280G of the Code and does not undertake any liability or indemnification with respect to any related taxes.

 

[Remainder of page left intentionally blank]

 

 

A C C E P T E D

 

	
BERKSHIRE HILLS BANCORP, INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Linda A. Johnston
    	
 
    	
12-11-14
    
	
 
    	
Linda A. Johnston,   Executive 
    	
 
    	
Date
    
	
 
    	
Vice President – Human   Resources
    	
 
    	
 
    

 

By signing below, you agree that this Agreement will be binding upon you, will take effect on the Closing Date, and will as of such date supersede any other employment, severance, change of control or related agreements between the undersigned executive and Hampden and its affiliates. The parties agree to work in good faith to document the terms of this Agreement into one or more written documents consistent with the terms set forth herein. In the event that the Merger Agreement is terminated prior to the occurrence  of the Closing Date, this Agreement shall become null and void and of no effect.

 

 

	
By
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Tara G. Corthell
    	
 
    	
12/11/14
    
	
 
    	
Tara G. Corthell
    	
 
    	
DateEX-10.1

 Exhibit 10.1 

EXECUTION VERSION 
 AMENDMENT NO. 1
TO EMPLOYMENT AGREEMENT 
 This Amendment No. 1 is made and entered into this 15th day of December, 2014 (the “Amendment
Date”), by Universal Insurance Holdings, Inc., a Delaware corporation (the “Company”), and Jon W. Springer (“Executive”). 

WHEREAS, the Company and Executive have entered into an Employment Agreement, dated as of February 22, 2013 (the “Employment
Agreement”); and 
 WHEREAS, the Company and Executive desire to enter into this Amendment No. 1 to extend the term of
Executive’s employment with the Company, to make certain adjustments to Executive’s compensation pending the determination of a revised compensation program for the Company’s executive officers and to correct a technical error in the
Employment Agreement relating to the timing of payment of the pro rata bonus in the event of Executive’s termination without Cause or for Good Reason. 

Accordingly, the parties agree as follows: 

1. Capitalized terms not defined herein shall have the meanings set forth in the Employment Agreement. 

2. Section 2 of the Employment Agreement is amended to extend the Term to December 31, 2015. Except as provided
herein, the Employment Agreement shall remain in full force and effect. 
 3. Effective January 1, 2015,
Section 4.1 of the Employment Agreement is deleted in its entirety and replaced with the following: 
 4.1 Base
Salary. Beginning January 1, 2015, the Company will pay Executive an annual base salary of $1,340,625, payable in accordance with the Company’s customary payroll practices (“Base Salary”), with no subsequent increases
during the Term unless the Compensation Committee provides otherwise subsequent to the Amendment Date. 
 4. Effective
January 1, 2015, Section 4.2 of the Employment Agreement is deleted in its entirety and replaced with the following: 

4.2 Annual Bonus. For 2015, Executive shall be entitled to receive a cash incentive award under Article X of the
Universal Insurance Holdings, Inc. 2009 Omnibus Incentive Plan, as it may be amended from time to time, in an amount equal to 2.5% of the Company’s income before taxes as reported in the Company’s Annual Report on Form 10-K for fiscal year
2015 (the “Annual Bonus”), which Annual Bonus shall be paid to Executive no later than March 15, 2016. For the avoidance of doubt, if Executive has earned an Annual Bonus under this Section 4.2, he need not be employed on
the Annual Bonus payment date to receive such Annual Bonus, provided, except as otherwise provided in the Employment Agreement, that he is employed through December 31, 2015. 

 Jon W. Springer 

Amendment No. 1 to Employment Agreement 
 Page 2 of 4 

5. Effective January 1, 2015, Section 4 of the Employment Agreement is amended to add a new Section 4.7 that reads in its
entirety: 
 4.7 The Compensation Committee will consider an equity grant to Executive in 2015 in accordance with its regular
equity grant policy. 
 6. Section 5.3 of the Employment Agreement is deleted in its entirety and replaced with the following: 

5.3 Payment Upon Termination Without Cause. If during the Term the Company terminates Executive’s employment
without Cause (which may be done at any time without prior notice), the Company will pay Executive (i) on the sixtieth (60th) day following the date of such termination of employment, in
addition to the Accrued Obligations, (1) a lump-sum cash payment equal to Executive’s then-current Base Salary for a period of twelve (12) months and (2) a lump-sum cash payment equal to the cost of COBRA coverage for Executive
and his dependents for twelve (12) months, and (ii) no later than March 15 of the year following the year to which the Annual Bonus relates, payment for the prorated share of Executive’s Annual Bonus pursuant to Section 4.2,
based on the Company’s actual performance, for the year in which termination without Cause occurs; provided that Executive executes and delivers to the Company a valid and irrevocable release agreement in a form reasonably acceptable to the
Company by no later than forty-five (45) days following the date of such termination of employment without Cause. Additionally, any restricted stock award granted in accordance with Section 4.4 prior to the date of Executive’s
termination without Cause shall fully vest immediately prior to such termination without Cause; for the avoidance of doubt, Executive shall not be entitled to any award under Section 4.4 which has not been granted prior to such termination
without Cause. The Company will have no obligation to provide the benefits set forth in this Section 5.3 in the event that Executive breaches the provisions of Section 7. 

7. Section 5.4 of the Employment Agreement is deleted in its entirety and replaced with the following: 

5.4 Payment Upon Termination For Good Reason. If during the Term Executive terminates his employment with the Company
for Good Reason by giving notice as provided in this Section 5.4, the Company will pay Executive (i) on the sixtieth (60th) day following the date of such termination of employment,
in addition to the Accrued Obligations, (1) a lump-sum cash payment equal to Executive’s then-current Base Salary for a period of twelve (12) months, and (2) a lump-sum cash payment equal to the cost of COBRA coverage for
Executive and his dependents for twelve (12) months, and (ii) no later than March 15 of the year following the year to which the Annual Bonus relates, payment for the prorated share of Executive’s Annual Bonus pursuant to
Section 4.2, based on the Company’s actual performance, for the year in which termination for Good Reason occurs; provided that Executive executes and delivers to the Company within a valid and irrevocable release agreement in a form
reasonably acceptable to the Company by no later than forty-five (45) days 

 
Jon W. Springer 
 Amendment No. 1 to Employment Agreement 

Page 3 of 4 
 following the date of such
termination of employment for Good Reason. Additionally, any restricted stock award granted in accordance with Section 4.4 prior to the date of Executive’s termination for Good Reason shall fully vest immediately prior to such termination
with Good Reason; for the avoidance of doubt, Executive shall not be entitled to any award under Section 4.4 which has not been granted prior to such termination for Good Reason. Prior to the effectiveness of termination for Good Reason, the
Company shall be given thirty (30) calendar days’ prior written notice from Executive, specifically identifying the reasons which are alleged to constitute Good Reason for termination hereunder, and an opportunity to be heard by Executive
in the event the Company disputes such allegations and to cure such allegations; provided, however, that Executive shall have no obligation to remain employed by the Company following such thirty (30) calendar day notice period
unless such allegations are cured to Executive’s reasonable satisfaction. As used in this Section 5.4, “Good Reason” means any of the following without Executive’s prior written consent: (i) assignment to
Executive of duties materially inconsistent with Executive’s position hereunder; (ii) failure to pay Executive’s Base Salary in accordance with Section 4.1 hereof; (iii) failure to pay Executive’s Annual Bonus pursuant
to Section 4.2; (iv) requiring Executive to move his situs of employment more than twenty (20) miles from his situs of employment prior to such move; or (v) the Company’s material breach of this Agreement. 

8. Except as expressly amended herein, the terms and conditions of the Employment Agreement shall continue in full force and effect. 

[signatures on following page] 

 IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have executed this
Amendment No. 1 as of the day and year first above mentioned. 
  

							
		 		 	 Executive:
  

		 		 	 /s/ Jon W. Springer

		 		 		 	Jon W. Springer
		 		 	  
 UNIVERSAL INSURANCE HOLDINGS, INC.

		 		 	  
 /s/ Sean P.
Downes

		 		 		 	Sean P. Downes
		 		 		 	President and Chief Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}]]