Document:

Exhibit 10 Form 8-K 2012 06 27

Exhibit 10.1

	
		
	Kristen L. DiSanto
	Direct Dial    (401) 348-1204

	Senior Vice President
	Fax Number  (401) 315-5383

	Human Resources
	Email:  kldisanto@washtrust.com

June 20, 2012

Mr. James M. Hagerty
180 Natick Avenue
Warwick, RI  02886  

Dear Jim,
I am very pleased to offer you a key executive position on the Washington Trust management team.  This letter will confirm the terms of our employment offer.  
For illustrative purposes, I have assumed your first day of employment will be July 9, 2012.  If your start date is later, entry dates in benefit plans will adjust accordingly.  Generally, welfare benefit enrollment begins on the 1st of the month following employment and 401(k) participation begins on the 1st of the quarter following your three month anniversary of employment.
I.  Position and Salary
This is a full-time position of Executive Vice President and Chief Lending Officer based in Westerly, RI.  The salary will be $4,230.77 per week (paid on a biweekly basis), which is the annual equivalent of $220,000.  You will be eligible for a salary review on January 1, 2013.
II. Incentive Compensation
You will be eligible to participate in the Annual Performance Plan beginning in 2012 (payable in early 2013).  Your target incentive will be 30% of your eligible plan compensation, which will be prorated in your first year of employment.  Plan payments are based on corporate performance (return on equity, net income, and earnings per share) and an assessment of your individual performance.  The allocation to corporate performance and individual performance is 60% and 40%, respectively.
III.  New Hire Equity Grant
On your first date of employment, you will be granted 2,000 Restricted Stock Units of Washington Trust Bancorp, Inc.  You will be eligible for dividend equivalents payable in the same manner and at the same time as dividends paid to our shareholders.
You will also be granted a Nonqualified Stock Option to acquire 7,000 shares of Washington Trust Bancorp, Inc. common stock at an exercise price equal to the fair market value on the date of grant. 
Both grants will become vested on the five year anniversary of your first date of employment.  
IV.  Equity Compensation
You will be eligible for equity grants in such number, at such times, and on such terms as may be approved by the Compensation Committee of the Board of Directors, in its sole discretion.  These grants typically occur annually, and at the EVP level, have historically had a target value of 40% of salary modified for your individual performance.  Grants may be subject to time-based or performance-based vesting, or a combination thereof, at the discretion of the Compensation Committee. 

V. Welfare Benefits
You will be eligible for benefits under The Washington Trust Company Flexible Benefit Plan effective August 1, 2012.  You will receive information on this comprehensive benefit plan, which features medical, dental, life and long-term disability insurance, as well as medical reimbursement and dependent care reimbursement accounts.  If you do not need our medical and/or dental benefits, we offer cash in lieu of benefits.  This will be explained in detail to you during benefits orientation.
VI. Retirement Plans
You will be eligible to participate in The Washington Trust Company 401(k) Plan effective January 1, 2013.  Under this Plan, you may contribute up to 25% of salary earnings, subject to an IRS dollar limit ($17,000 in 2012).  The Plan also allows for catch-up contributions for participants who are age 50 or older ($5,500 in 2012).  If you defer at least 5% of salary earnings, the Bank will make a matching contribution of 3%.  In addition, you are eligible for a non-elective employer contribution of 4% of salary earnings, regardless of whether you choose to contribute to the Plan.  You will receive information on this plan prior to enrollment.  
You are also eligible to participate in The Washington Trust Company Nonqualified Deferred Compensation Plan (“Nonqualified Plan”). This “401(k) mirror plan” accomplishes the following goals:
		
	▪
	Compensation Deferral:  Allows you to defer up to 25% of salary and 100% of bonus to provide supplemental retirement and tax benefits.  

		
	▪
	Restoration of Benefits Lost due to Qualified Plan Limits:  Provides for payments of certain amounts that would have been contributed by the Bank under the 401(k) Plan (“excess employer contributions”), but for the deferral under the Nonqualified Plan and/or IRS limitations on annual compensation under qualified plans.  Excess employer contributions would include matching contributions as well as the 4% non-elective contribution.  

Employee and employer contributions to the Nonqualified Plan are credited with earnings/losses based on your selection of investment measurement options (publicly-traded mutual funds).  Plan balances are protected under a rabbi trust agreement.  
Employer contributions under both the qualified 401(k) Plan and the Nonqualified Plan will become vested after two years of service.  
VII.  Change in Control Agreement
You will enter into a Change in Control Agreement that, upon a change in control event, will provide two years of salary; bonus payment (based on the average bonus paid within the previous three years); and medical and dental benefit continuation.  Benefits may be reduced to ensure that they do not exceed Section 280G limits, and therefore result in excise tax under Section 4999.
VIII. Vacation Entitlement
You will accrue two weeks of vacation during 2012, and four weeks of vacation per calendar year thereafter.
IX.  Perquisites
You will be reimbursed up to $7,000 annually for a social club membership for the purpose of meeting with clients and centers of influence.  This reimbursement is reported as income and subject to applicable taxes.  
X. What to Bring on Your First Day
Enclosed you will find a welcome package which includes various forms needed to commence your employment.  Please review this package carefully.  On your first day, you should report to Human 

Resources at 8:30 a.m. at the Employment and Training Center, 8 Union Street, Westerly, RI.  Please bring the following items with you.  

	
				
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	Form W-4
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	Documents needed to complete Form I-9

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	Form I-9
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	Code of Ethics Acknowledgment

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	EEO Survey/Veteran Status
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	Required Information for Fingerprints

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	Data Collection Form
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	United Way of RI Contribution Form (optional)

XI.  Miscellaneous
While we hope that your employment relationship with the Bank will be rewarding and long-term, we recognize that either party is free to terminate this relationship at will in the future.  
I am pleased to make this offer to you and look forward to welcoming you aboard.  Please confirm your acceptance in writing by signing below and returning this letter to my attention.  Please feel free to call me if you have any questions.  Welcome to Washington Trust!

Sincerely,

/s/ Kristen L. DiSanto

Kristen L. DiSanto
Senior Vice President
Human Resources

I accept the terms of the above offer and agree to start my employment on July 9, 2012.  I represent that I am not a party to any other agreement, including a non-solicitation, non-competition, or assignment agreement that might interfere with my full compliance with the terms and conditions of my employment with The Washington Trust Company or any of its subsidiaries.

/s/ James M. Hagerty
James M. HagertyEXHIBIT 4.1

 

AMENDED AND RESTATED

ARTICLES OF INCORPORATION

    	 

    	 

    

AMENDED AND RESTATED

ARTICLES OF INCORPORATION

OF

ENB FINANCIAL CORP

 

 

In compliance with the requirements of 15 Pa.C.S. Section 1306
(relating to Articles of Incorporation), the undersigned, desiring to be incorporated as a business corporation, hereby states
that:

 

1.     The name
of the Corporation is ENB Financial Corp.

 

2.      The address
of this Corporation’s initial registered office in this Commonwealth is 31 East Main Street, Ephrata, Pennsylvania 17522,
and the county of venue is Lancaster.

 

3.     The Corporation
is incorporated under the provisions of the Pennsylvania Business Corporation Law of 1988 (15 Pa.C.S. ss.1101 et seq.),
as the same may be amended.

 

4.     The purpose
or purposes of the Corporation are to have unlimited power to engage in and to do any lawful act concerning any or all business
for which corporations may be incorporated under the provisions of the Pennsylvania Business Corporation Law of 1988, as the same
may be amended.

 

5.     The aggregate
number of shares that the Corporation shall have authority to issue is 12,000,000 shares of Common Stock having a par value of
$.20 per share.

 

6      [Reserved]

 

7.     The holders
of Common Stock shall have one vote per share and shall be entitled to cumulate their votes in the election of directors.

 

8.     The corporate
existence of this Corporation shall continue until terminated in accordance with the Pennsylvania Business Corporation Law of 1988
(15 Pa.C.S. ss.1101 et seq.), as the same may be amended.

 

9.     No merger,
consolidation, liquidation, or dissolution of the Corporation nor any action that would result in the sale or other disposition
of all or substantially all of the assets of the Corporation shall be valid unless first approved by the affirmative vote of shareholders
owning at least two-thirds (2/3) of the outstanding shares of Common Stock of the Corporation.

 

    	 

    	 

    

10.     Except
for such rights that are otherwise provided by law and Section 2521 of the Pennsylvania Business Corporation Law of 1988, as it
may be amended, the board of directors of the Corporation or three or more shareholders owning, in the aggregate, not less than
twenty-five percent (25%) of the votes that all shareholders are entitled to cast at a particular meeting shall be entitled to
call special meetings of the shareholders.

 

11.     No holder
of shares of any class of shares or of any series of any class of shares shall have any preemptive right to subscribe for, purchase
or receive any shares of the Corporation, whether now or hereafter authorized, or any obligations or other securities convertible
into or carrying options or warrants to purchase any such shares of the Corporation, or any options or rights to purchase any such
shares or securities, issued or sold by the Corporation for cash or any other form of consideration, and any such shares, securities,
options, warrants or rights may be issued or disposed of by the Board of Directors to such persons and on such terms as the Board
of Directors, in its discretion, shall deem advisable.

 

12.     Article
9 shall not be amended unless first approved by the affirmative vote of shareholders owning at least two-thirds (2/3) of the outstanding
shares of Common Stock of the Corporation.

 

13.     Except
as otherwise provided by Article 12, these Articles of Incorporation may be changed or amended at any time by shareholders owning
a majority of the outstanding Common Stock of the Corporation in any manner not inconsistent with the Pennsylvania Business Corporation
Law of 1988, as amended.

 

14.     This Corporation
specifically opts out and shall not be governed by Subchapter G, Control-Share Acquisitions, and Subchapter H, Disgorgement by
Certain Controlling Shareholders Following Attempts to Acquire Control, of Chapter 25 of the Business Corporation Law of 1988,
as it may be amended.

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