Document:

Exhibit 10.2

 

Form of 2013 Performance Stock Unit Agreement

 

GARTNER, INC.

2003 LONG-TERM INCENTIVE PLAN

PERFORMANCE STOCK UNIT AGREEMENT

 

Grant # 

 

NOTICE OF GRANT

 

Gartner, Inc. (the “Company”)
hereby grants you, [NAME] (the “Grantee”), the number of performance stock units indicated below (a “PSU”
or the “PSUs”) under the Company’s 2003 Long-Term Incentive Plan (the “Plan”). The date of this Agreement
is February 12, 2013 (the “Grant Date”). Subject to the provisions of Appendix A (attached hereto) and of the
Plan, the principal features of this Performance Stock Unit grant are as follows:

 

Target Number of PSUs:                          , subject to adjustment
as provided under Performance Adjustment below.

 

Performance Adjustment:

The number of PSUs eligible to vest will be adjusted in accordance
with the following schedule, based upon Contract Value (a Performance Objective as defined in the Plan) at December 31, 2013, measured
on a foreign exchange neutral basis.

 

Adjustment is linear between Threshold and Target levels of
CV and between Target and Maximum levels of CV. Contract Value shall have the meaning set forth in our Annual Report on Form 10-K
for the year ended December 31, 2012.

 

Vesting Schedule:

 

Twenty-five percent (25%) of the PSUs eligible to vest (as determined
in the prior subsection) shall vest on each of February 12, 2014, 2015, 2016 and 2017, subject to Grantee’s Continued Service
through each such date.

 

Your signature below indicates your agreement and understanding
that this grant is subject to all of the terms and conditions contained in the Plan and this Performance Stock Unit Agreement (the
“Agreement”), which includes this Notice of Grant and Appendix A. For example, important additional information on
vesting and termination of this Performance Stock Unit grant is contained in Paragraphs 4 through 7 of Appendix A. ACCORDINGLY,
PLEASE BE SURE TO READ ALL OF APPENDIX A, WHICH CONTAINS THE SPECIFIC TERMS AND CONDITIONS OF THIS PERFORMANCE STOCK UNIT
GRANT.

 

	GARTNER, INC.	 	GRANTEE	 
	 	 	 	 	 
	By: 	 	 	 	 

    	 

    	 

    

APPENDIX A

 

TERMS AND CONDITIONS OF PERFORMANCE
STOCK UNITS

 

1.      Grant. The Company
hereby grants to the Grantee under the Plan the number of Performance Stock Units (PSUs) indicated in the Notice of Grant, subject
to all of the terms and conditions in this Agreement and the Plan. 

 

2.      Payment of Purchase
Price. When the PSUs are paid out to the Grantee, the purchase price will be deemed paid by the Grantee for each Performance
Stock Unit through the past services rendered by the Grantee, and will be subject to the appropriate tax withholdings.

 

3.      Company’s Obligation
to Pay. Each PSU has a value equal to the Fair Market Value of a Share on the date of grant. Unless and until the PSUs have
vested in the manner set forth in paragraphs 4 or 5, the Grantee will have no right to payment of such PSUs. Prior to actual
payment of any vested PSUs, such PSUs will represent an unfunded and unsecured obligation of the Company. Payment of any vested
PSUs will be made in Shares only.

 

4.      Vesting Schedule.
Except as otherwise provided in this Agreement, the PSUs awarded by this Agreement are scheduled to vest in accordance with the
vesting schedule set forth in the Notice of Grant. PSUs scheduled to vest on a particular date actually will vest only if the Grantee
remains in Continued Service through such date. Should the Grantee’s Continued Service end at any time (the “Termination
Date”), any unvested PSUs will be immediately cancelled; provided, however, that if termination of Continued Service
results from the Grantee’s death, Disability or Retirement, then any unvested PSUs that would have vested by their terms
within twelve (12) months from the Termination Date will be deemed vested on the Termination Date; and provided further, however,
that in the case of PSUs as to which the Performance Adjustment referred to in the Notice of Grant has not been made at the Termination
Date, the PSUs that will be deemed vested on the Termination Date pursuant to this paragraph 4 shall be determined, and shall vest,
when such Performance Adjustment has occurred. 

 

5.      Committee Discretion.
The Committee, in its discretion, may accelerate the vesting of the balance, or some lesser portion of the balance, of the PSUs
at any time, subject to the terms of the Plan. If so accelerated, such PSUs will be considered as having vested as of the date
specified by the Committee. If the Committee, in its discretion, accelerates the vesting of the balance, or some lesser portion
of the balance, of the PSUs and the PSUs are “deferred compensation” within the meaning of Section 409A, the payment
of such accelerated PSUs nevertheless shall be made at the same time or times as if such PSUs had vested in accordance with the
vesting schedule set forth in the Notice of Grant (whether or not the Grantee remains in Continued Service through such date(s)).
Notwithstanding the foregoing, if such PSUs are accelerated in connection with the Grantee’s termination of Continued Service
(other than due to death), the PSUs that vest on account of the Grantee’s termination of Continued Service will not be considered
due or payable until the Grantee has a “separation from service” within the meaning of Section 409A. In addition, if
the Grantee is a “specified employee” within the meaning of Section 409A at the time of the Grantee’s separation
from service, then any such accelerated PSUs otherwise payable within the six (6) month period following the Grantee’s separation
from service instead will be paid on the date that is six (6) months and one (1) day following the date of the Grantee’s
separation from service, unless the Grantee dies following his or her separation from service, in which case, the accelerated PSUs
will be paid to the Grantee’s estate

    	 

    	 

    

as soon as practicable following his or her death, subject to paragraph 9. Thereafter,
such PSUs shall continue to be paid in accordance with the vesting schedule set forth on the first page of this Agreement. For
purposes of this Agreement, “Section 409A” means Section 409A of the U.S. Internal Revenue Code of 1986, as amended,
and any final Treasury Regulations and other Internal Revenue Service guidance thereunder, as each may be amended from time to
time (“Section 409A”). 

 

6.      Payment after Vesting.
Any PSUs that vest in accordance with paragraph 4 will be released to the Grantee (or in the event of the Grantee’s death,
to his or her estate) in Shares as soon as practicable following the date of vesting, subject to paragraph 9, but in no event
later than the applicable two and one-half (21⁄2) month period of the “short-term deferral” rule set forth in
the Section 1.409A-1(b)(4) of the Treasury Regulations issued under Section 409A. Notwithstanding the foregoing, if the PSUs are
“deferred compensation” within the meaning of Section 409A, the vested PSUs will be released to the Grantee (or in
the event of the Grantee’s death, to his or her estate) in Shares as soon as practicable following the date of vesting, subject
to paragraph 9, but in no event later than the end of the calendar year that includes the date of vesting or, if later, the fifteen
(15th) day of the third (3rd) calendar month following the date of vesting (provided that the Grantee will not be permitted, directly
or indirectly, to designate the taxable year of the payment). Further, if some or all of the PSUs that are “deferred compensation”
within the meaning of Section 409A vest on account of the Grantee’s termination of Continued Service (other than due to death)
in accordance with paragraph 4, the PSUs that vest on account of the Grantee’s termination of Continued Service will not
be considered due or payable until the Grantee has a “separation from service” within the meaning of Section 409A.
In addition, if the Grantee is a “specified employee” within the meaning of Section 409A at the time of the Grantee’s
separation from service (other than due to death), then any accelerated PSUs will be paid to the Grantee no earlier than six (6)
months and one (1) day following the date of the Grantee’s separation from service unless the Grantee dies following his
or her separation from service, in which case, the PSUs will be paid to the Grantee’s estate as soon as practicable following
his or her death, subject to paragraph 9. Any PSUs that vest in accordance with paragraph 5 will be paid to the Grantee (or in
the event of the Grantee’s death, to his or her estate) in Shares in accordance with the provision of such paragraph, subject
to paragraph 9. 

 

7.      Forfeiture. Notwithstanding
any contrary provision of this Agreement, the balance of the PSUs that have not vested pursuant to paragraphs 4 or 5 at the time
the Grantee ceases to be in Continued Service will be forfeited and automatically transferred to and reacquired by the Company
at no cost to the Company. The Grantee shall not be entitled to a refund of any of the price paid for the PSUs forfeited to the
Company pursuant to this paragraph 7. 

 

8.      Death of Grantee.
Any distribution or delivery to be made to the Grantee under this Agreement will, if the Grantee is then deceased, be made to the
administrator or executor of the Grantee’s estate (or such other person to whom the PSUs are transferred pursuant to the
Grantee’s will or in accordance with the laws of descent and distribution). Any such transferee must furnish the Company
(a) written notice of his or her status as a transferee, (b) evidence satisfactory to the Company to establish the validity
of the transfer of these PSUs and compliance with any laws or regulations pertaining to such transfer, and (c) written acceptance
of the terms and conditions of this Performance Stock Unit grant as set forth in this Agreement.

 

9.      Withholding of Taxes.
When the Shares are issued as payment for vested PSUs, the Grantee

    	 

    	 

    

will recognize immediate U.S. taxable income if the Grantee
is a U.S. taxpayer. If the Grantee is a non-U.S. taxpayer, the Grantee may be subject to applicable taxes in his or her jurisdiction.
The Company (or the employing Parent or Subsidiary) will withhold a portion of the Shares otherwise issuable in payment for vested
PSUs that have an aggregate market value sufficient to pay the minimum federal, state and local income, employment and any other
applicable taxes required to be withheld by the Company (or the employing Parent or Subsidiary) with respect to the Shares. No
fractional Shares will be withheld or issued pursuant to the grant of PSUs and the issuance of Shares thereunder. The Company (or
the employing Parent or Subsidiary) may instead, in its discretion, withhold an amount necessary to pay the applicable taxes from
the Grantee’s paycheck, with no withholding of Shares. In the event the withholding requirements are not satisfied through
the withholding of Shares (or, through the Grantee’s paycheck, as indicated above), no payment will be made to the Grantee
(or his or her estate) for PSUs unless and until satisfactory arrangements (as determined by the Committee) have been made by the
Grantee with respect to the payment of any income and other taxes which the Company determines must be withheld or collected with
respect to such PSUs. By accepting this Award, the Grantee expressly consents to the withholding of Shares and to any cash or Share
withholding as provided for in this paragraph 9. All income and other taxes related to the Performance Stock Unit award and
any Shares delivered in payment thereof are the sole responsibility of the Grantee.

 

10.     Rights as Stockholder.
Neither the Grantee nor any person claiming under or through the Grantee shall have any of the rights or privileges of a stockholder
of the Company in respect of any Shares deliverable hereunder unless and until certificates representing such Shares (which may
be in book entry form) shall have been issued, recorded on the records of the Company or its transfer agents or registrars, and
delivered to the Grantee (including through electronic delivery to a brokerage account). Notwithstanding any contrary provisions
of this Agreement, any quarterly or other regular, periodic dividends or distributions (as determined by the Company) paid on Shares
will accrue with respect to (i) unvested PSUs and (ii) PSUs that are vested but unpaid, and no such dividends or other distributions
will be paid on PSUs nor PSUs that are vested but unpaid pursuant to paragraph 5, and in each case will be paid out at the same
time or time(s) as the underlying PSUs on which such dividends or other distributions have accrued. After such issuance, recordation
and delivery, the Grantee will have all the rights of a stockholder of the Company with respect to voting such Shares and receipt
of dividends and distributions on such Shares. 

 

11.     No Effect on Employment
or Service. The Grantee’s employment with the Company and any Parent or Subsidiary is on an at-will basis only, subject
to the provisions of applicable law. Accordingly, subject to any written, express employment contract with the Grantee, nothing
in this Agreement or the Plan shall confer upon the Grantee any right to continue to be employed by the Company or any Parent or
Subsidiary or shall interfere with or restrict in any way the rights of the Company or the employing Parent or Subsidiary, which
are hereby expressly reserved, to terminate the employment of the Grantee at any time for any reason whatsoever, with or without
good cause. Such reservation of rights can be modified only in an express written contract executed by a duly authorized officer
of the Company or the Parent or Subsidiary employing the Grantee. 

 

12.     Address for Notices.
Any notice to be given to the Company under the terms of this Agreement shall be addressed to the Company, in care of its Secretary
at the Company’s headquarters, P.O. Box 10212, 56 Top Gallant Road, Stamford, CT 06902-7700, or at such other address as
the

    	 

    	 

    

Company may hereafter designate in writing.

 

13.     Grant is Not Transferable.
Except to the limited extent provided in paragraph 8 above, this grant and the rights and privileges conferred hereby shall not
be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject
to sale under execution, attachment or similar process. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise
dispose of this grant, or of any right or privilege conferred hereby, or upon any attempted sale under any execution, attachment
or similar process, this grant and the rights and privileges conferred hereby immediately shall become null and void.

 

14.     Restrictions on
Sale of Securities. The Shares issued as payment for vested PSUs awarded under this Agreement will be registered under the
federal securities laws and will be freely tradable upon receipt. However, the Grantee’s subsequent sale of the Shares will
be subject to any market blackout-period that may be imposed by the Company and must comply with the Company’s insider trading
policies, and any other applicable securities laws.

 

15.     Binding Agreement.
Subject to the limitation on the transferability of this grant contained herein, this Agreement shall be binding upon and inure
to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

 

16.     Conditions for Issuance
of Stock. The shares of stock deliverable to the Grantee may be either previously authorized but unissued shares or issued
shares which have been reacquired by the Company. The Company shall not be required to transfer on its books or list in street
name with a brokerage company or otherwise issue any certificate or certificates for Shares hereunder prior to fulfillment of all
the following conditions: (a) the admission of such Shares to listing on all stock exchanges on which such class of stock is then
listed; and (b) the completion of any registration or other qualification of such Shares under any state or federal law or under
the rulings or regulations of the Securities and Exchange Commission or any other governmental regulatory body, which the Committee
shall, in its absolute discretion, deem necessary or advisable; and (c) the obtaining of any approval or other clearance from any
state or federal governmental agency, which the Committee shall, in its absolute discretion, determine to be necessary or advisable;
and (d) the lapse of such reasonable period of time following the date of vesting of the PSUs as the Committee may establish from
time to time for reasons of administrative convenience.

 

17.     Plan Governs.
This Agreement is subject to all terms and provisions of the Plan. In the event of a conflict between one or more provisions of
this Agreement and one or more provisions of the Plan, the provisions of the Plan shall govern. Capitalized terms used and not
defined in this Agreement shall have the meaning set forth in the Plan.

 

18.     Committee Authority.
The Committee shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation
and application of the Plan as are consistent therewith and to interpret or revoke any such rules (including, but not limited to,
the determination of whether or not any PSUs have vested). All actions taken and all interpretations and determinations made by
the Committee shall be final and binding upon the Grantee, the Company and all other persons, and shall be given the maximum deference
permitted by law. No member of the Committee shall be personally liable for any action, determination or interpretation made in
good faith

    	 

    	 

    

with respect to the Plan or this Agreement.

 

19.     Captions. Captions
provided herein are for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

 

20.     Agreement Severable.
In the event that any provision in this Agreement shall be held invalid or unenforceable, such provision shall be severable from,
and such invalidity or unenforceability shall not be construed to have any effect on, the remaining provisions of this Agreement.

 

21.     Entire Agreement.
This Agreement constitutes the entire understanding of the parties on the subjects covered. The Grantee expressly warrants that
he or she is not executing this Agreement in reliance on any promises, representations, or inducements other than those contained
herein.

 

22.     Modifications to
the Agreement. This Agreement constitutes the entire understanding of the parties on the subjects covered. The Grantee expressly
warrants that he or she is not accepting this Agreement in reliance on any promises, representations, or inducements other than
those contained herein. Modifications to this Agreement or the Plan can be made only in an express written contract executed by
a duly authorized officer of the Company. Notwithstanding anything to the contrary in the Plan or this Agreement, the Company reserves
the right to revise this Agreement as it deems necessary or advisable, in its sole discretion and without the consent of the Grantee,
to avoid imposition of any additional tax or income recognition under Section 409A prior
to the actual payment of Shares pursuant to this award of PSUs.

 

23.     Amendment, Suspension
or Termination of the Plan. By accepting this award, the Grantee expressly warrants that he or she has received an award under
the Plan, and has received, read and understood a description of the Plan. The Grantee understands that the Plan is discretionary
in nature and may be modified, suspended or terminated by the Company at any time.

 

24.     Governing Law.
This grant of PSUs shall be governed by, and construed in accordance with, the laws of the State of Connecticut, without regard
to its conflict of laws provisions.

 

25.     Defined Terms:
Capitalized terms used in this Agreement without definition will have the meanings provided for in the Plan. When used in this
Agreement, the following capitalized terms will have the following meanings:

 

“Continued Service” means that your employment
relationship is not interrupted or terminated by you, the Company, or any Parent or Subsidiary of the Company. Your employment
relationship will not be considered interrupted in the case of: (i) any leave of absence approved in accordance with the Company’s
written personnel policies, including sick leave, family leave, military leave, or any other personal leave; or (ii) transfers
between locations of the Company or between the Company and any Parent, Subsidiary or successor; provided, however, that,
unless otherwise provided in the Company’s written personnel policies, in this Agreement or under applicable laws, rules
or regulations, or unless the Committee has otherwise expressly provided for different treatment with respect to this Agreement,
(x) no such leave may exceed ninety (90) days, and (y) any vesting shall cease on the ninety-first (91st) consecutive
date of any leave of absence during which your employment relationship is deemed to continue and will not recommence until such
date, if any, upon which you resume service

    	 

    	 

    

with the Company, its Parent, Subsidiary or successor. If you resume such service in
accordance with the terms of the Company’s military leave policy, upon resumption of service you will be given vesting credit
for the full duration of your leave of absence. Continuous employment will be deemed interrupted and terminated for an Employee
if the Grantee’s weekly work hours change from full time to part time. Part-time status for the purpose of vesting continuation
will be determined in accordance with policies adopted by the Company from time to time, which policies, if any, shall supersede
the determination of part-time status set forth in the Company’s posted “employee status definitions”.

 

“Disability” means total and permanent disability
as defined in Section 22(e)(3) of the Code.

 

“Retirement” means termination of your employment
in accordance with the Company’s retirement policies, as in effect from time to time, if on the date of such termination
(i) you are at least 55 years old and your Continued Service has extended for at least five years, and (ii) the number of full
years in your age and your number of full years of Continued Service total at least 65. By way of illustration, if you terminate
your employment in accordance with the Company’s retirement policies on your 63rd birthday after six years of Continued Service,
your total would be 69 and your termination would be treated as a Retirement; if your Continued Service had extended for only four
years, your total would be 67 but your termination would not be treated as a Retirement since you would not have met the minimum
of five years of Continued Service.

 

Your acceptance of this grant indicates your agreement and understanding
that this grant is subject to all of the terms and conditions contained in the Plan and this Award Agreement, which includes the
Notice of Grant and this Agreement.

 

In addition, by your acceptance of this Performance Stock Unit
grant and in consideration of such grant, you hereby ratify and reaffirm the “Agreement Regarding Certain Conditions of Employment”
(the “Gartner Agreement”) previously entered into between you and the Company, including but not limited to the confidentiality
and post-employment restrictions on competition set forth therein, and/or you hereby agree to comply with all of the terms and
conditions of the Gartner Agreement, which is posted on the Global “Forms and Policies” section of Gartner At Work,
and is incorporated herein by this reference.

 

o  0  oex101_21113.htm

 SEVERANCE AGREEMENT

 

by and between

 

SALISBURY BANK AND TRUST COMPANY

 

and

 

RICHARD J. CANTELE, JR.

 

This Severance Agreement (this “Agreement”) is made and entered into effective as of January 1, 2013 (the “Effective Date”), by and between Salisbury Bank and Trust Company, a Connecticut-chartered commercial bank with its principal administrative office at 5 Bissell Street, Lakeville, CT 06039-1868 (together with its successors and assigns, the “Bank”) and Richard J. Cantele, Jr. (“Executive”).  Any reference to the “Company” hereunder shall mean Salisbury Bancorp, Inc. (together with its successors and assigns), the parent of the Bank that owns 100% of the Bank.

 

RECITALS

 

A.           Executive possesses unique and valued experience with, and essential knowledge about, financial institutions and their operation and the Connecticut banking community;

 

B.           In order to induce Executive to remain employed with the Bank, the Bank and Executive desire to set forth in writing the severance benefits that are payable to Executive as a result of Executive’s termination of employment for the reasons set forth herein.

 

NOW, THEREFORE, in consideration of the mutual covenants and obligations herein contained, it is mutually agreed between the parties hereto as follows:

 

1.           Term. This Agreement shall continue for a term commencing on the Effective Date and ending on the second anniversary of the Effective Date (the “Term”).  On each annual anniversary of the Effective Date (each an “Anniversary Date”) this Agreement shall automatically renew for an additional year (each succeeding two year period shall also be referred to herein as the “Term”), unless at least thirty (30) days prior to such Anniversary Date, either party gives
written notice of non-renewal to the other.  If such notice of non-renewal is given as permitted hereunder, the Agreement will expire at the conclusion of such Term. Notwithstanding any provision of this Agreement to the contrary, Executive’s employment may be terminated at any time prior to the expiration of the Term, as provided in Section 2 hereof and subject to the provisions of this Agreement, including, without limitation, Sections 4, 5, 6, 9, 10, 11 and 12.  Notwithstanding the foregoing, in the event that at any time during the Term of this Agreement, the Company or the Bank has entered into an agreement to effect a transaction which would be a Change in Control (as defined in Section 3 hereof), then the Term of this Agreement shall be automatically extended through the date that is twelve (12) months following the date on which the Change in Control
occurs, provided, however, that if the Change in Control does not occur as contemplated, then the Agreement shall automatically renew on the next Anniversary Date, unless a notice of non-renewal is given by either party hereto in the manner set forth above.

 

  

  

  

 

2.           At-Will Status. Notwithstanding any provision of this Agreement, Executive is employed at-will, such that Executive or the Bank may terminate Executive’s employment at any time, for any or no reason, subject to the remaining provisions of this Agreement.

 

3.           Definitions. As used in this Agreement, the following terms shall have the meanings set forth herein.

 

“Cause” shall mean (i) the conviction of the Executive of a felony or of any lesser criminal offense involving moral turpitude; (ii) the willful commission by the Executive of any act that, in the judgment of the Board will likely cause substantial economic damage to the Bank or substantial injury to the business reputation of the Bank; (iii) the commission by the Executive of an act of fraud in the performance of his duties on behalf of the Bank; (iv) the continuing willful failure of the Executive to perform his duties to the Bank after written notice thereof (specifying the particulars thereof in reasonable detail) and a reasonable opportunity to
cure such failure are given to the Executive; or (v) an order of a federal or state regulatory agency or a court of competent jurisdiction requiring the termination of the Executive’s employment by the Bank.  For this purpose, no act, or failure to act, on the part of Executive shall be deemed “willful” unless done, or omitted to be done, by Executive not in good faith and without reasonable belief that Executive’s action or omission was in the best interests of the Bank. Without limiting the foregoing, in no event shall Executive be deemed to be acting in good faith or in the best interests of the Bank for purposes of the preceding sentence with respect to acts of omission or commission taken in contravention of any direction(s), rule(s) or requirement(s) issued, authorized, approved or ratified by the Board.

 

Notwithstanding the foregoing provisions, in no event shall Cause be deemed to exist unless (i) the Bank shall provide Executive with written notice making reference to this Agreement, stating that the Bank intends to terminate Executive for Cause within the meaning of this Agreement, and setting forth in reasonable detail the facts and circumstances allegedly constituting Cause, and (ii) the Bank affords Executive a period of two (2) weeks after issuance of such notice either to demonstrate, through written rebuttal, that Cause does not exist under this Section 3, or to cure the circumstances constituting such Cause; provided, however, that the determination of whether Cause exists or whether Executive has
sufficiently cured any Cause, shall be made in the reasonable discretion of the Board, as evidenced by the affirmative vote of not less than three-fourths of the entire membership of the Board (excluding Executive) at a meeting of the Board (excluding Executive) called and held for such purpose (after reasonable notice is provided to Executive and Executive is given an opportunity, together with counsel, to be heard before the Board).  Nothing in this Section 3 shall prevent the Bank from terminating Executive for Cause prior to the issuance of the above-referenced notice or expiration of the above-referenced two (2) week rebuttal/cure period; provided however that if, upon the expiration of such two (2) week period, it is determined that facts or circumstances sufficient to constitute Cause did not (or, if applicable, do not) exist or has/have been cured, then such earlier
termination of Executive by the Bank shall be deemed to be without Cause. Without limiting the foregoing, the Bank may suspend Executive, with or without pay, during the above-referenced two (2) week rebuttal/cure period, and such suspension shall not constitute either a termination of employment by the Bank under this Agreement or Good Reason for separation by Executive.

 

 

  

2

  

 

“Change in Control” shall mean (i) a change in the ownership of the Company or Bank, (ii) a change in the effective control of the Company or Bank, or (iii) a change in the ownership of a substantial portion of the assets of the Company or Bank, as described below.

 

(i) A change in the ownership of a corporation occurs on the date that any one person, or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(v)(B)), acquires ownership of stock of the Company or Bank that, together with stock held by such person or group, constitutes more than fifty (50) percent of the total fair market value or total voting power of the stock of such corporation.  For these purposes, a change in ownership will not be deemed to have occurred if no stock of the Company or Bank is outstanding.

 

(ii) A change in the effective control of the Company or Bank occurs on the date that either (A) any one person, or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vi)(D)) acquires (or has acquired during the twelve (12)-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company or Bank possessing thirty (30) percent or more of the total voting power of the stock of the Company or Bank, or (B) a majority of the members of the Company’s or Bank’s board of directors is replaced during any twelve
(12)-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s or Bank’s board of directors prior to the date of the appointment or election, provided that this subsection “(B)” is inapplicable where a majority shareholder of the entity that experiences the change in control is another corporation.

 

(iii) A change in a substantial portion of the Company’s or Bank’s assets occurs on the date that any one person or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vii)(C)) acquires (or has acquired during the twelve (12)-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company or Bank that have a total gross fair market value equal to or more than forty (40) percent of the total gross fair market value of (A) all of the assets of the Company or Bank, or (B) the value of the assets being disposed of,
either of which is determined without regard to any liabilities associated with such assets.

 

For all purposes hereunder, the definition of Change in Control shall be construed to be consistent with the requirements of Treasury Regulation 1.409A-3(i)(5), except to the extent that such regulations are superseded by subsequent guidance.

 

“Good Reason” shall mean any of the following circumstances if they occur without the Executive’s consent: (i) a material reduction in the Executive’s Base Salary not warranted by general across the board reductions due to economic necessity; (ii) a material reduction in the Executive’s incentive bonus and other benefits generally provided to executives generally (except due to general across the board reductions due to economic necessity); (iii) a material reduction in Executive’s authority, duties or responsibilities such that Executive no longer holds a position
with Executive level responsibilities consistent with Executive’s training and experience; or (iv) the permanent relocation of Executive’s principal place of business to a location that is more than 35 miles from Executive’s workplace at the initial effective date of this Agreement; provided that for a termination to be deemed for Good Reason, Executive must give, within the ninety (90) day period commencing on the initial existence of the condition(s) constituting Good Reason, written notice of the intention to terminate for Good Reason, and, upon receipt of such notice, the Bank shall have a thirty (30) day period within which to cure such condition(s); and provided further that the Bank may waive such right to notice and opportunity to cure.  In no event may facts or circumstances constituting
“Good Reason” arise after the occurrence of facts or circumstances that the Bank relies upon, in whole or in material part, in terminating Executive for Cause.

 

 

  

3

  

 

4.           Effect of Involuntary Termination or Voluntary Termination for Good Reason other than on or after a Change in Control.  In the event of Executive’s involuntary termination of employment by the Bank for reasons other than Cause (or Executive’s death or disability) or a voluntary termination of the employment for Good Reason, in either case, other than on or after a Change in Control, Executive shall be entitled to the following:

 

(a)           A severance benefit in an amount equal to two (2) times the Executive’s annual base salary rate in effect on the date of such termination, or, if greater, Executive’s average annual base salary rate for the twelve (12) month period ending on the last day of the calendar month immediately before such date of such termination.  Any severance benefit to which the Executive is entitled under this Section 4(a) shall be distributed in a lump sum within sixty  (60) days following Executive’s separation from service.

 

(b)           Subject to Executive’s payment of a premium portion equal or substantially equal to the premium portion paid by executive employees of the Bank for comparable coverage, for two years following separation from service, Executive may continue Executive’s participation (and, if applicable, that of Executive’s beneficiaries) in the Bank’s group health plan in which Executive participated immediately prior to separation from service; provided, however, that this sub-section is not intended to reduce the amount of time that Executive may obtain coverage at his own expense under the provision of the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended (“COBRA”) and comparable state law; except that Executive’s coverage for such two year period shall be counted against and deducted from the maximum COBRA period (if the applicable maximum COBRA period is 18 months, then following Executive’s coverage hereunder, Executive shall be entitled to no further health care coverage under the Bank’s group health plan).  Notwithstanding anything herein to the contrary, if as the result of any change in, or interpretation of, the laws applicable to the continued welfare benefits hereunder, such benefits are deemed illegal or subject to penalties, then the Bank shall, to the extent permitted under such laws, pay to the Executive a cash lump sum payment reasonably estimated to be equal to the amount of welfare benefits (or the remainder of such amount) that the Executive
is no longer permitted to receive in-kind.  Such lump sum payment shall be required to be made within sixty (60) days following the Executive’s separation from service, or if later, within sixty (60) days following a determination that such payment would be illegal or subject to penalties.

 

(c)           Executive shall also be entitled to be reimbursed by the Bank for final expenses that Executive reasonably and necessarily incurred on behalf of the Bank prior to Executive’s termination of employment, provided that Executive submits expense reports and supporting documentation of such expenses in accordance with the Bank’s expense reimbursement policies in effect at that time.  Such reimbursement payment or payments shall be made no later than the time required by applicable law (or, if earlier, by Bank or Company policy, practice or rule), but in no event later than the sixtieth
(60th) day following Executive’s date of the termination.

 

 

  

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5.           Termination in Connection with a Change in Control.  In the event of Executive’s involuntary termination of employment for reasons other than Cause or a voluntary termination of employment for Good Reason occurring on or after a Change in Control, Executive shall be entitled to the following:

 

(a)           A lump sum cash payment equal to two and nine-tenths (2.9) times the Executive’s annual rate of base salary in effect on Executive’s date of termination or, if greater, Executive’s average annual base salary rate for the twelve (12) month period ending on the last day of the calendar month immediately prior to the date of such termination.  Such amount shall be paid to Executive within sixty (60) days following Executive’s separation from service.

 

(b)           Life insurance coverage and non-taxable medical and dental coverage, at no cost to Executive, that is substantially comparable (and on substantially the same terms and conditions) to the coverage maintained by the Bank for Executive immediately prior to his date of termination.  Such life insurance and non-taxable medical and dental coverage shall be provided by the Bank to the Executive for three (3) years following Executive’s separation from service and subject to the same terms and conditions as the benefits provided under Section 4(b).  Notwithstanding anything herein
to the contrary, if as the result of any change in, or interpretation of, the laws applicable to the continued welfare benefits hereunder, such benefits are deemed illegal or subject to penalties, then the Bank shall, to the extent permitted under such laws, pay to the Executive a cash lump sum payment reasonably estimated to be equal to the amount of welfare benefits (or the remainder of such amount) that the Executive is no longer permitted to receive in-kind.  Such lump sum payment shall be required to be within sixty (60) days following the Executive’s separation from service, or if later, within sixty (60) days following a determination that such payment would be illegal or subject to penalties.

 

(c)            Unpaid compensation and benefits, and unused vacation, accrued through the date of Executive’s termination of employment. Executive shall also be entitled to be reimbursed by the Bank for final expenses that Executive reasonably and necessarily incurred on behalf of the Bank prior to Executive’s termination of employment, provided that Executive submits expense reports and supporting documentation of such expenses in accordance with the Bank’s expense reimbursement policies in effect at that time.  Such reimbursement payment or payments shall be made no later than the time required by applicable law (or, if
earlier, by Bank or Company policy, practice or rule), but in no event later than the sixtieth (60th) day following Executive’s date of the termination.

 

(d)             Notwithstanding the foregoing, no compensation and benefits shall be payable pursuant to both Sections 4 and 5 of this Agreement.

 

6.           Conditions of Severance Benefits; Effect on Executive’s Post-Employment Obligations.

 

 

  

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(a)           Notwithstanding the foregoing, in no event shall any compensation payable to the Executive pursuant to the provisions of Section 4(a), 4(b), 5(a) and (b) above that is subject to Section 409A of the Internal Revenue Code (“Code”) be paid to the Executive unless and until the Executive has incurred a “separation from service” as defined in Code Section 409A and in regulations and guidance issued thereunder, unless such payment is required by applicable law.  For purposes of this Agreement, a “separation from service” shall have occurred if the Bank and Executive reasonably anticipate that either no
further services will be performed by Executive after his date of the termination (whether as an employee or as an independent contractor) or the level of further services performed is less than fifty (50) percent of the average level of bona fide services in the thirty-six (36) months immediately preceding the termination.  For all purposes hereunder, the definition of separation from service shall be interpreted consistent with Treasury Regulation Section 1.409A-1(h)(ii).

 

(b)           Executive shall receive the severance benefits set forth in Section 4(a) and 4(b) hereof only if Executive (a) executes a general release, in a form acceptable to the Bank, within sixty (60) days of the date of the termination of the Executive’s employment in accordance with the provisions of Section 4 hereof; (b) presents satisfactory evidence to the Bank that Executive has returned all Bank property; and (c) provides the Bank with a signed, written resignation of Executive’s status as an officer and/or director of the Bank and/or any holding company, subsidiary or affiliate as applicable.  In the event the Bank reasonably
believes that Executive has breached, or has threatened to breach, any provision of the Agreement, the Executive shall no longer be entitled to such benefits and further shall be required to reimburse all severance benefits, including payments under Section 4(a), previously made by the Bank. Such termination of benefits shall be in addition to any and all legal and equitable remedies available to the Bank, including injunctive relief.  Without limiting the foregoing, Executive acknowledges and agrees that the provisions of Sections 11, 12, 15, 17, 18, and 19 of this Agreement (i) are supported by adequate consideration in addition to the severance benefits provided under Section 4(a) and 4(b) and all other amounts and things of value to which Executive would be entitled if Executive did not enter into this Agreement, and (ii) shall be enforceable notwithstanding
Executive’s failure of refusal to satisfy, in whole or in part, the conditions for the severance benefits set forth under this Section 6.  Notwithstanding the foregoing, the conditions set forth in this Section 6 shall not apply in the event that any compensation or benefits are payable pursuant to Section 5 of this Agreement.

 

7.           Taxes. All payments and benefits described in this Agreement shall be subject to any and all applicable federal, state and local income, employment and other taxes, and the Bank will deduct from each payment to be made to Executive under this Agreement such amounts, if any, required to be deducted or withheld under applicable law.  Executive hereby acknowledges and agrees that the Bank makes no representations or warranties regarding the tax treatment or tax consequences of any compensation,
benefits or other payments under the Agreement, or under any statute, or regulation or guidance thereunder, or under any successor statute, regulation and guidance thereunder.

 

8.           Code Section 409A.   The cash severance payments under this Agreement are intended to be exempt from Section 409A of the Code under the “short term deferral” rule set forth in Treasury Regulation Section 1.409A-1(b)(4).  If and to the extent this Agreement provides for a deferral of compensation subject to Section 409A of the Code, it is the intent of the parties that this Agreement, and all payments of deferred compensation subject to Code Section 409A made hereunder,
shall be in compliance with such requirements and the regulations and other guidance thereunder. Notwithstanding any other provision with respect to the timing of payments under Sections 4(a) or 5(a), if, at the time of Executive’s separation from service, Executive is a “specified employee” (meaning a key employee as defined in Section 416(i) of the Code without regard to paragraph 5 thereof) of the Bank (or a Bank affiliate), then to the extent necessary to comply with the requirements of Code Section 409A, any payments to which Executive is entitled under Sections 4(a) or 5(a) during the six (6) month period commencing on the Executive’s separation from service which are subject to Code Section 409A (and not otherwise exempt from its application, including, without limitation, by operation of Treasury Regulation Section 1.409A-1(n)) will be withheld until the
first business day of the seventh (7th) month following Executive’s separation from service, at which time such withheld amount shall be paid in a lump sum distribution. The Bank and Executive agree that they will negotiate in good faith and jointly execute an amendment to modify this Agreement to the extent necessary to comply with the requirements of Code Section 409A, or any successor statute, regulation and guidance thereunder.

 

 

  

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9.           Limitation on Benefits.  In no event shall the Bank be obligated to make any payment pursuant to this Agreement that is prohibited by Section 18(k) of the Federal Deposit Insurance Act (codified at 12 U.S.C. §1828(k)), 12 C.F.R. Part 359, or any other applicable law.

 

10.           No Mitigation. The Bank agrees that Executive is not required to use reasonable good faith efforts to seek other employment and to reduce any amounts payable to Executive by the Bank pursuant to this Agreement.

 

11.           Non-Competition; Non-Solicitation; Non-Disclosure.

 

(a)           The benefits provided to Executive under Section 4 of this Agreement are specifically conditioned on Executive’s covenant that, for a period of one (1) year following the Executive’s separation from service with the Bank, the Executive will not, without the written consent of the Bank, either directly or indirectly:

(i)           solicit, offer employment to, or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any officer or employee of the Bank or any of its affiliates to terminate his or her employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever to, any business or other entity;

(ii)           become an officer, employee, consultant, director, independent contractor, agent, sole proprietor, joint venturer, greater than 5% equity-owner or stockholder, partner or trustee of any savings bank, savings and loan association, savings and loan holding company, credit union, bank or bank holding company, insurance company or agency, any mortgage or loan broker or any other entity that has headquarters or offices within fifteen (15) miles of the locations in which the Bank or its affiliates has business operations or has filed an application for regulatory approval to establish an office as of the date of Executive’s termination;
provided, however, that this restriction shall not apply if the Executive’s employment is terminated following a Change in Control; or

 

 

  

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(iii)           solicit, provide any information, advice or recommendation or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any customer of the Bank or its affiliates to terminate an existing business or commercial relationship with the Bank or its affiliates; or

 

 (b)           Executive further agrees that Executive shall not at any time or in any manner, directly or indirectly, use or disclose Confidential Information (as hereinafter defined) to any party other than the Bank either during or after Executive’s termination of employment or  the termination of this Agreement for any reason, except for purposes consistent with the administration and performance of Executive’s obligations hereunder, or as required by law, provided that written notice of any legally required disclosure shall be given to the Bank promptly prior to any such disclosure and Executive shall reasonably cooperate with
the Bank to protect the confidentiality thereof pursuant to applicable law or regulation.  For purposes of this Agreement, the term “Confidential Information” includes any confidential or proprietary information furnished or provided by the Bank to Executive after Executive first became employed by the Bank, under this Agreement or otherwise (whether before or after the Execution Date) (and without regard to whether such information is conveyed directly or on the Bank’s behalf), or otherwise acquired by Executive as a consequence of Executive’s employment with the Bank and that is not generally known in the industry in which the Bank is engaged and that in any way relates to the products, services, purchasing, marketing, names of customers, vendors or suppliers, merchandising and selling, plans, data, specifications or any other confidential and
proprietary information of the Bank or any affiliate.  Any Confidential Information supplied to Executive by the Bank prior to the Execution Date shall be considered in the same manner and be subject to the same treatment as the Confidential Information made available after the execution of this Agreement. The term “Confidential Information” does not include information (i) which was already in the public domain, (ii) which is disclosed as a matter of right by a third party source after the execution of this Agreement, provided such third party source is not bound by a confidentiality agreement with the Bank or (iii) which passes into the public domain by acts other than the unauthorized acts of Executive, whether acting alone or in concert; provided, however, that any disclosure of Confidential Information may be made by Executive if the Bank expressly consents
thereto in writing prior to such disclosure.

 

12.           Exclusive Remedy. Except as expressly set forth herein or otherwise required by law, Executive shall not be entitled to any compensation, benefits, or other payments from the Bank as a result of, or in connection with, Executive’ s separation from service at any time, for any reason.  The payments and benefits set forth in Sections 4 or 5 hereof shall constitute Executive’s sole and exclusive remedy for any claims, causes of action or demands arising under or in connection with this
Agreement or its alleged breach, or the termination of Executive’s employment relationship with the Bank.

 

13.           Governing Law/Interpretation. Executive and the Bank agree that this Agreement and any claims arising out of or in connection with this Agreement shall be governed by and construed in accordance with the laws of the State of Connecticut, without giving effect to the principles of conflicts of laws thereof.

 

 

  

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14.           Entire Agreement. This Agreement shall constitute the sole and entire agreement between the parties with respect to the subject matter hereof, and supersedes and cancels all prior, concurrent and/or contemporaneous arrangements, understandings, promises, offers, agreements and/or discussions, including, but not limited to, those concerning employment agreements and/or severance benefits, whether written or oral, by or between the parties, regarding the subject matter hereof;
provided, however, that this Agreement is not intended to, and shall not, supersede, affect, limit, modify or terminate any written agreement or arrangement between Executive and the Bank that does not relate to the subject matter hereof.

 

15.           Assignment. Executive acknowledges that the services to be rendered hereunder are unique and personal in nature.  Accordingly, Executive may not assign any rights or delegate any duties or obligations under this Agreement.  The rights and obligations of the Bank under this Agreement shall automatically be assigned to the successors and assigns of the Bank (including, but not limited to, any successor in the event of a Change in Control, as well as any other entity that controls, is
controlled by, or is under common control with, any such successor), and shall inure to the benefit of, and be binding upon, such successors and assigns. This Agreement shall be binding upon Executive, as well as, Executive’s heir, executors and administrators of Executive or Executive’s estate and property.

16.           Notices. All notices required hereunder shall be in writing and shall be delivered in person, by facsimile or by certified or registered mail, return receipt requested, and shall be effective upon sending if by facsimile, or upon receipt if by personal delivery, or upon the fourth (4th) business day after being sent by certified or registered mail. All notices shall be addressed as follows or to such other address as the parties may later provide in writing:

if to the Bank:

 

Salisbury Bank and Trust Company

5 Bissell Street,

P.O. Box 1868

Lakeville, CT 06039-1868

ATTN: Chairperson of the Board

 

and, if to Executive:

 

at the address set in the human resources files of the Bank.

 

17.           Severability/Reformation. If any one or more of the provisions (or any part thereof) of this Agreement shall be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions (or any part thereof) shall not in any way be affected or impaired thereby, and this Agreement shall be construed and reformed to the maximum extent permitted by law. The language of all parts of this Agreement shall in all cases be construed as a whole according to its fair
meaning and not strictly for or against either of the parties.

 

  

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18.           Modification. This Agreement and the rights, remedies and obligations contained in any provision hereof, may be modified or waived only in accordance with this Section 18. No waiver by either party of any breach by the other or any provision hereof shall be deemed to be a waiver of any later or other breach thereof or as a waiver of any other provision of this Agreement.  This Agreement and its terms may not be waived, changed, discharged or terminated orally or by any course of dealing between the
parties, but only by a written instrument signed by the party against whom any waiver, change, discharge or termination is sought.  No modification or waiver by the Bank is effective without written consent of the Board.

 

19.           Arbitration. Subject to the mutual agreement of the parties hereto at the time a dispute exists between such parties, any dispute, controversy or claim arising out of, or in connection with, this Agreement shall be exclusively subject to arbitration before the American Arbitration Association (“AAA”).  Such arbitration shall take place in Hartford, Connecticut, before a single arbitrator in accordance with AAA’s then current National Rules for the Resolution of Employment
Disputes.  Judgment upon any arbitration award may be entered in any court of competent jurisdiction. All parties shall cooperate in the process of arbitration for the purpose of expediting discovery and completing the arbitration proceedings. Notwithstanding any provision in this Agreement to the contrary, nothing contained in this Section 19 or elsewhere in this Agreement shall in any way deprive the Bank of its right to obtain injunctive relief, specific performance or other legal or equitable relief in a court of competent jurisdiction for purposes of enforcing the provisions of Section 11 hereof.

 

20.           Counterparts. This Agreement may be executed in two 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.

 

21.           Section Headings. The descriptive section headings herein have been inserted for convenience only and shall not be deemed to define, limit, or otherwise affect the construction of any provision hereof.

 

 

[Signature Page Follows]

 

  

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement under seal effective as of the date and year first written above.

 

 

 

 

	  	
SALISBURY BANK AND TRUST COMPANY

	  	  
	  	  
	  	
By: /s/ Michael A. Varet

	
Date: February 1, 2013

	 Michael A. Varet
	  	 Chairman of the Board
	  	  
	  	
EXECUTIVE

	  	  
	  	  
	
Date:February 11, 2013

	 /s/ Richard J. Cantele, Jr.
	  	
Richard J. Cantele, Jr.

 

 

  

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