SCHEDULE 14A

(Rule 14a-101)

INFORMATION REQUIRED IN PROXY STATEMENT

SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to Section 14(a) of the

Securities Exchange Act of 1934

(Amendment No.   )

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¨x Preliminary Proxy Statement
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x¨ Definitive Proxy Statement
¨ Definitive Additional Materials
¨ Soliciting Material Under Rule 14a-12
RockvilleUnited Financial Bancorp, Inc.
(Name of Registrant as Specified in Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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LOGOLOGO

P.O. Box 660, Rockville, CT 06066

April 4, 2013March 23, 2015

Dear Shareholder:

You are cordially invited to attend the annual meeting of shareholders of RockvilleUnited Financial Bancorp, Inc. (the “Company”). The meeting will be held at Maneeley’s Banquet Facility, 65 Rye Street, South Windsor, Connecticutthe Springfield Sheraton, One Monarch Place, Springfield, Massachusetts 01144 on Thursday, May 16, 201321, 2015 at 10:2:00 a.m.p.m.

At the Annual Meeting you will be asked to: (1) elect three Directors; (2) consider and approve an advisory (non-binding) proposal on the Company’s executive compensation; (3) consider and approve an advisory (non-binding) proposal on the frequency of submission of the vote regarding the Company’s executive compensation; (4) approve the amendment of the Certificate of Incorporation to eliminate the 80% super majority vote on certain Certificate of Incorporation amendments; (5) approve an amendment to the Certificate of Incorporation to increase the number of authorized shares of common stock; (6) approve an amendment to the Certificate of Incorporation to allow for the conversion of the Corporation from Connecticut to Delaware; (7) ratify the appointment of Wolf & Company, P.C. as our independent auditors for the current year; and (3) to(8) transact such other business as may properly come before the Annual Meeting or any adjournments thereof.

The Board of Directors unanimously recommends that you voteFOR the election of the Board’s nominees for election as DirectorsDirectors;FOR the pay package;FOR the annual vote on the pay package;FOR the amendment of the Certificate of Incorporation to eliminate the 80% super majority vote;FOR the amendment to the Certificate of Incorporation to increase the number of authorized shares of common stock;FOR the amendment to the Certificate of Incorporation to allow for the conversion of the Corporation from Connecticut to Delaware andFORthe ratification of Wolf & Company, P.C. as our independent auditors.

We encourage you to read the accompanying Proxy Statement, which provides information regarding RockvilleUnited Financial Bancorp, Inc. and the matters to be voted on at the Annual Meeting. We have also enclosed a copy of our 20122014 Annual Report to Shareholders, which includes itsUnited Financial Bancorp, Inc.’s Annual Report to the SEC on Form 10-K for the year ended December 31, 2012.2014.


It is important that your shares are represented at this meeting, whether or not you attend the meeting in person and regardless of the number of shares you own. To make sure your shares are represented, we urge you to complete and mail the enclosed proxy card. If you attend the meeting, you may vote in person even if you have previously voted.

We look forward to seeing you at the meeting.

 

Sincerely,

/s/ William H. W. Crawford, IV

William H. W. Crawford, IV
President and Chief Executive Officer


ROCKVILLEUNITED FINANCIAL BANCORP, INC.

25 Park Street, Rockville,45 Glastonbury Boulevard, Glastonbury, CT 0606606033

860-291-3600

 

 

NOTICE OF ANNUAL MEETING OF SHAREHOLDERS

TO BE HELD MAY 16, 201321, 2015

 

 

NOTICE IS HEREBY GIVEN that the 20132015 Annual Meeting of Shareholders (the “Annual Meeting”) of RockvilleUnited Financial Bancorp, Inc. (the “Company” or “Rockville”“United”), the holding company for RockvilleUnited Bank (the “Bank”), will be held on Thursday, May 16, 2013,21, 2015, at 10:2:00 a.m.p.m., at Maneeley’s Banquet Facility, 65 Rye Street, South Windsor, Connecticut 06074the Springfield Sheraton, One Monarch Place, Springfield, Massachusetts 01144 for the following purposes:

 

1.To elect three (3) Directors of the Company.

 

2.To consider and approve an advisory (non-binding) proposal on the Company’s executive compensation.

3.To consider and approve an advisory (non-binding) proposal on the frequency of submission of the vote regarding the Company’s executive compensation.

4.To approve the amendment of the Certificate of Incorporation to eliminate the 80% super majority vote on certain Certificate of Incorporation amendments.

5.To approve an amendment to the Certificate of Incorporation to increase the number of authorized shares of common stock from 60,000,000 to 120,000,000.

6.To approve an amendment to the Certificate of Incorporation to allow for the conversion of the Corporation from the State of Connecticut to Delaware.

7.To ratify the appointment of Wolf & Company, P.C. as independent auditors of the Company for the year ending December 31, 2013.2015.

 

3.8.To transact such other business as may properly come before the Annual Meeting or any adjournments thereof.

NOTE: The Board of Directors is not aware of any other business to come before the Annual Meeting.

Pursuant to the Company’s bylaws, the Board of Directors of the Company has fixed the close of business on March 22, 2013,9, 2015, as the record date for the determination of shareholders entitled to vote at the Annual Meeting. Only holders of common stock of record at the close of business on that date will be entitled to notice of and to vote at the Annual Meeting or any adjournments thereof.

IT IS IMPORTANT THAT PROXIES BE RETURNED PROMPTLY. THEREFORE, WHETHER OR NOT YOU PLAN TO BE PRESENT IN PERSON AT THE ANNUAL MEETING, PLEASE DATE, SIGN AND COMPLETE THE ENCLOSED PROXY AND RETURN IT IN THE ENCLOSED ENVELOPE WHICH REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES. YOU MAY REVOKE YOUR PROXY AND VOTE IN PERSON IF YOU DO ATTEND THE ANNUAL MEETING.

 

By Order of the Board of Directors

/s/ Judy Keppner ClarkMarliese L. Shaw

Judy Keppner Clark

Marliese L. Shaw

Corporate Secretary

Rockville,Glastonbury, Connecticut

April 4, 2013March 23, 2015


ROCKVILLEUNITED FINANCIAL BANCORP, INC.

25 Park Street, Rockville,45 Glastonbury Boulevard, Glastonbury, CT 0606606033

860-291-3600

 

 

PROXY STATEMENT

 

 

This Proxy Statement is furnished in connection with the solicitation of proxies by the Board of Directors of RockvilleUnited Financial Bancorp, Inc. (the “Company” or “Rockville”“United”), the holding company for RockvilleUnited Bank (the “Bank”), to be used at the Annual Meeting of Shareholders of the Company (the “Annual Meeting”) which will be held at Maneeley’s Banquet Facility, 65 Rye Street, South Windsor, Connecticutthe Springfield Sheraton, One Monarch Place, Springfield, Massachusetts 01144 on Thursday, May 16, 201321, 2015 at 10:2:00 a.m.p.m., and at any adjournment thereof. This Proxy Statement is expected to be first mailed to shareholders on or about April 4, 2013.March 23, 2015.

MATTERS TO BE CONSIDERED AT THE ANNUAL MEETING

The Annual Meeting has been called for the following purposes: (1) to elect three Directors of the Company; (2) to consider and approve an advisory (non-binding) proposal on the Company’s executive compensation; (3) to consider and approve an advisory (non-binding) proposal on the frequency of submission of the vote regarding the Company’s executive compensation; (4) to approve the amendment of the Certificate of Incorporation to eliminate the 80% super majority vote on certain Certificate of Incorporation amendments; (5) to approve an amendment to the Certificate of Incorporation to increase the number of authorized shares of common stock from 60,000,000 to 120,000,000; (6) to approve an amendment to the Certificate of Incorporation to allow for the conversion of the Corporation from the State of Connecticut to Delaware; (7) to ratify the appointment of Wolf & Company, P.C. as our independent auditors for the year endedending December 31, 2013;2015; and (3)(8) to transact such other business as may properly come before the Annual Meeting or any adjournments thereof.

If you vote using the enclosed form of proxy, your shares will be voted in accordance with the instructions indicated. Executed but unmarked proxies will be votedFOR the election of the Board’s nominees as DirectorsDirectors;FOR the compensation package;FOR the annual vote on the pay package;FOR the amendment of the Certificate of Incorporation to eliminate the 80% super majority vote;FOR the amendment to the Certificate of Incorporation to increase the number of authorized shares of common stock;FOR the amendment to the Certificate of Incorporation to allow for the conversion of the Corporation from Connecticut to Delaware andFOR the ratification of the appointment of Rockville’sUnited’s independent auditors. Except for procedural matters incident to the conduct of the Annual Meeting, the Board of Directors does not know of any matters other than those described in the Notice of Annual Meeting that are to come before the Annual Meeting. If any other matters are properly brought before the Annual Meeting, the persons named in the proxy will vote the shares represented by such proxy on such matters as determined by a majority of the Board of Directors.

SOLICITATION OF PROXIES

All costs of the solicitation of proxies will be borne by the Company. In addition to solicitation by mail, Directors, officers and other employees of the Company or the Bank may solicit proxies personally, by telephone or other means without additional compensation. The Company will reimburse brokerage firms and other custodians, nominees and fiduciaries for reasonable expenses incurred by them in sending proxy materials to the beneficial owners of the common stock. The Company has also retained Morrow & Co., LLC, a proxy soliciting firm, to assist in the solicitation of proxies at a fee of $7,000,$12,500, plus reimbursement of certain out-of-pocket expenses.

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REVOCATION OF PROXIES

Shareholders who execute proxies retain the right to revoke them. A shareholder giving a proxy may revoke it at any time prior to its exercise by (i) filing with the Secretary of the Company written notice of revocation, (ii) submitting a duly-executed proxy bearing a later date, or (iii) appearing at the Annual Meeting and voting in person. Unless so revoked, the shares represented by the proxies will be voted according to the shareholder’s instructions on the proxy or, if no instructions are given, in favor of the Proposalsproposals described in this Proxy Statement. In addition, shares represented by proxies will be voted as directed by the Board of Directors with respect to any other matters that may properly come before the Annual Meeting or any adjournment. Proxies solicited by this Proxy Statement may be exercised only at the Annual Meeting and any adjournment thereof and will not be used for any other meeting.


WHO CAN VOTE

Only shareholders of record as of the close of business on March 22, 2013,9, 2015, are entitled to vote at the Annual Meeting. As of March 13, 2013,x, 2015, there were approximately 27,960,63849,xxx,xxx shares of common stock, no par value (the “Common Stock”), issued and outstanding. The Company has no other class of securities outstanding at this time. Each share of Common Stock is entitled to one vote except as described below. All votes, whether voted in person or by proxy, will be tabulated by the Company’s Inspector of Elections appointed for the Annual Meeting by the Board of Directors. Abstentions and broker non-votes are counted for purposes of establishing a quorum. Pursuant to the Company’s Certificate of Incorporation, shareholders are not entitled to cumulate their votes for the election of Directors. The presence, in person or by proxy, of the holders of at least a majority of the total number of outstanding shares of Common Stock entitled to vote at the Annual Meeting (after subtracting any shares in excess of the Limit described below) is necessary to constitute a quorum.

As provided in the Company’s Certificate of Incorporation, holders of Common Stock who beneficially own in excess of 10% of the outstanding shares of Common Stock (the “Limit”) are not entitled to vote with respect to shares held in excess of the Limit. A person or entity is deemed to beneficially own shares owned by an affiliate of, as well as by persons acting in concert with, such person or entity. The Company’s Certificate of Incorporation authorizes the Board of Directors to (i) make all determinations necessary to implement and apply the Limit, including determining whether persons or entities are acting in concert, and (ii) demand that any person who is reasonably believed to beneficially own Common Stock in excess of the Limit supply information to the Company to enable the Board of Directors to implement and apply the Limit.

VOTING PROCEDURES

There is no cumulative voting for the election of Directors, and they are elected by a plurality of the vote. At the Annual Meeting, three Directors have been nominated; two Directors will be electednominated for a term of four years and one Director will be elected for a term of one year.years. Ratification of the appointment of the independent auditors requires the affirmative vote of a majority of the votes castshares present or represented at the Annual Meeting.Meeting and entitled to vote on the matter. An abstention by a shareholder present or represented at the Annual Meeting will have the same effect as a vote against the proposal to ratify the appointment of the independent auditors. Broker non-votes, however, are not counted as present and entitled to vote on the proposals,proposal, and have no effect on that vote. The electionAll of directors isthe matters to be voted on except the ratification of the auditors are considered a “non-routine” matter.matters. Therefore, if you do not provide your broker or nominee with voting instructions with regard to those matters, your broker or nominee will not be able to vote your shares on either vote.these votes. If you prefer, you may vote by using the telephone or Internet. For information on submitting your proxy or voting by telephone or Internet, please refer to the instructions on the enclosed proxy.

Approval of the Company’s Executive Compensation as described in the Compensation Discussion and Analysis and the tabular disclosure regarding named executive officer compensation (together with the accompanying narrative disclosure) in this Proxy Statement (Proposal 2).Approval of this non-binding advisory vote on the Company’s executive compensation as described in this Proxy Statement requires the affirmative vote of holders of a majority of our common stock present in person or represented by proxy and entitled to vote on the matter. An abstention by a shareholder present or represented at the Annual Meeting will have the same effect as a vote against the proposal to consider and approve the Company’s executive compensation. Broker non-votes, however, are not counted as present and entitled to vote on the proposal, and have no effect on that vote. Because this proposal is advisory, it will not be binding upon the Board of Directors if approved. However, the Compensation Committee and the Board of Directors will take into account the outcome of the vote when considering future executive compensation arrangements.

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Approval of the frequency of submission of a proposal on the Company’s Executive Compensation (Proposal3).Approval of this non-binding advisory vote which allows shareholders to indicate whether they prefer an advisory vote on named executive compensation once every one (1), two (2), or three (3) years requires the affirmative vote of holders of a majority of our common stock present in person or represented by proxy at the Meeting. Because this proposal is advisory, it will not be binding upon the Board of Directors if approved. However, the Compensation Committee and the Board of Directors will take into account the outcome of the vote when considering future executive compensation arrangements. We are required to hold the advisory vote on the frequency of the say-on-pay proposal at least once every six years.

Approval of the amendment to the Certificate of Incorporation to eliminate the 80% super majority vote on certainCertificate of Incorporation Sections (Proposal 4). Approval of this proposal requires the affirmative vote of not less than eighty percent (80%) of the total votes eligible to be cast. Failure to vote or abstaining from voting has the same effect as a vote against.

Approval of the amendment to the Certificate of Incorporation to increase the number of authorized shares of Common Stock from 60,000,000 shares to 120,000,000 shares (Proposal 5). Approval of this proposal requires the affirmative vote of holders of a majority of our common stock, assuming approval of Proposal 4. Failure to vote or abstaining from voting has the same effect as a vote against.

Approval of the amendment to the Certificate of Incorporation to allow for a conversion to a DelawareCorporation from a Connecticut Corporation (Proposal 6). Approval of this proposal requires the affirmative vote of holders of a majority of our common stock, assuming approval of Proposal 4. Failure to vote or abstaining from voting has the same effect as a vote against.

Executed but unmarked proxies will be votedFOR all proposals.

Except for procedural matters incident to the conduct of the Annual Meeting, the Company does not know of any matters other than those described in the Notice of Annual Meeting that are to come before the Annual Meeting. If any other matters properly come before the Annual Meeting, the persons named as proxies will vote upon such matters as determined by a majority of the Board of Directors.

Enclosed with this Proxy Statement is the Company’sUnited Financial Bancorp, Inc.’s (formerly Rockville Financial, Inc.) Annual Report to Shareholders for the year ended December 31, 2012,2014, which includes the Company’sUnited Financial Bancorp, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2012.2014.

CORPORATE GOVERNANCE

General

The Company formerly known as Rockville Financial, Inc. was formed on September 13, 2010 as a state-chartered, stock holding company in anticipation of the second step conversion of its predecessor mutual holding company, Rockville Financial, MHC, Inc. Fifty-five percent of the Company’s common stock was owned by Rockville Financial MHC, Inc., a state-chartered mutual holding company and the Company held all of the common stock of Rockville Bank (the “Bank”).

On March 3, 2011, the Company completed a plan of conversion and reorganization (the “Conversion”) whereby Rockville Financial MHC, Inc. converted from a partially public mutual holding company structure to a fully public stock holding company structure. At that time, Rockville Financial MHC, Inc. ceased to exist and Rockville Bank became a wholly-owned subsidiary of Rockville Financial, Inc.

The Company completed a merger of equals (the “Merger”) with United Financial Bancorp, Inc. (“Legacy United”) on April 30, 2014, was the legal acquirer and changed its name to United Financial Bancorp, Inc. in connection with the Merger. United Bank, a wholly-owned subsidiary of the legacy United Financial Bancorp, Inc., merged with and into Rockville Bank, and Rockville Bank changed its name to United Bank upon legal close. References in this proxy statement to

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the Company prior to the date of the ConversionMerger refer to the oldPre-Merger Rockville Financial, Inc. and the financial information in the accompanying Annual Report to Shareholders for the fiscal year ended December 31, 2010 is for the old Rockville Financial, Inc.(“Rockville” or “Legacy Rockville”).

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The business and affairs of the Company are managed by or under the direction of its Board of Directors. Members of the Board of Directors inform themselves of the Company’s business through discussions with its President and Chief Executive Officer and with other key members of management, by reviewing materials provided to them, and by participating in meetings of the Board of Directors and its committees.

Board Leadership Structure

The Company separates the roles of Chief Executive Officer and Chairman of the Board in recognition of the differences between the two roles. Our Chief Executive Officer is responsible for setting the strategic direction for the Company, providing day-to-day leadership and managing our performance. The Chairman of the Board provides guidance to our Chief Executive Officer, works with our Chief Executive Officer to set the agenda for Board meetings and presides over meetings of the full Board, including executive sessions of the independent directors.

Risk Oversight

The Board of Directors of the Company (the “Board”) has the primary responsibility for general risk oversight of the Company with the Risk Committee of the Bank responsible for monitoring interest rate, credit, liquidity, strategic, technology and operational risk, and the Audit Committee of the Company responsible for monitoring financial risk. The Board, Risk Committee and Audit Committee periodically review Management’s implementation of a comprehensive Risk Management Program to identify, assess, mitigate, monitor, and most importantly communicate risk profiles inherent within the organization. Management assumes the responsibility for identifying and assessing various risks for the Board, Risk Committee and Audit Committee to ensure both proper mitigation and remediation plans are in place as well as compliance with all regulatory guidelines. In support of these requirements, in mid-year 2011, a newly createdThe Company’s Risk division was approved by the Board and promptly staffed with experienced individuals, each with decades of experience. Specifically,includes a Chief Risk Officer (“CRO”) was hired as a direct reportwhom reports directly to the President and Chief Executive Officer, as well as a dedicated Information Security Officer, Compliance Officer, Director of Internal Audit, Enterprise Risk Manager and BSA/AML Officer reporting to the CRO.CRO, and a Director of Internal Audit reporting to the Audit Committee. Numerous initiatives were developed and implemented and continued throughout 20122014 to continue to provide the Board, Risk Committee and Audit Committee information in a timely manner to allowfacilitate effective risk to be mitigatedmitigation efforts throughout the organization. The Board’s oversight is also augmented by the Risk Management Committee, which is now chaired by the CRO, as well as a slate of voting members comprised of Risk Division officers, Information Technology officers, and most members of Executive Management. Included as well is at least one outside Director who not only is a voting member, but provides a detailed monthly report to the Board at its next regularly scheduled meeting. The Risk Management Committee reports directly to the Chief Executive Officer.

As a regulated financial institution, RockvilleUnited Bank is examined on a Federal and State mandated schedule, by the respective banking authorities. The results of these examinations are presented to the full Board promptly and fully, along with Management’s formal response as prepared for and forwarded to the respective Federal or State agencies. Any findings and recommendations contained in the reportsReports of examination,Examination, as well as Internal Audit reports, are promptly implemented for corrective action and formally tracked by the Director of Internal Audit and directly communicated to the Audit Committee. These formalized processes provide a consistent, transparent, very detailed and “strong” review of any areas of concern and serve as additional risk management oversight. Risk management is also incorporated into the Compensation Committee process in the form of a risk assessment for various compensation plans as prepared by the CRO, and presented jointly with the Executive Vice President Chief Human Capital.Resources Officer.

Independence of Board of Directors and Members of Its Committees

It is the policy of the Company’s Board of Directors that a majority of its Directors be independent of the Company and its subsidiaries within the meaning of applicable laws and regulations and the listing standards of the NASDAQ Global Select Stock Market. The Governance and Nominating Committee reviews the independence of Board members on an ongoing basis and, at least once a year, makes a determination of each director’sDirector’s independence against the independence criteria and delivers a report to the Board.

Since the Company’s formation in 2004 and full conversion in 2011 and for many years prior thereto as a mutual savings bank, Rockville’sthe Company’s Board of Directors has been chaired by an independent member of the Board. The Chairman of the Board works with the President and Chief Executive Officer on Board procedures so as to maintain objectivity while at the same time taking advantage of the banking experience and insight of management in order to make effective use of the Board for the Company’s benefit. The Board believes it important to retain the flexibility to allocate the responsibilities of the office of Chairman of the Board in any manner that it determines from time to time to be in the best interests of the Company.

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The Holding Company’s Board of Directors has affirmatively determined that the Directors nominated for election at the annual meetingAnnual Meeting and all Directors of the Company whose terms continue are independent, with the exception of William H. W. Crawford, IV, the Company’s President and Chief Executive Officer, and Joseph F. Jeamel, Jr., the Company’s Executive Vice President until his retirement effective June 30, 2010.Officer. The Company’s Board of Directors has also affirmatively determined the Board’s Audit Committee is comprised entirely of independent Directors within

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the meaning of applicable laws and regulations, the listing standards of the NASDAQ Global Select Stock Market and the Company’s corporate guidelines as set forth in the Company’s Audit Committee Charter. The Audit Committee Charter can be found on the Company’s website under the link entitled “Governance“Corporate Overview -Governance Documents” atwww.rockvillefinancialinc.comwww.unitedfinancialinc.com. This document also can be requested in print by writing to Marliese L. Shaw, Corporate Secretary and Investor Relations, RockvilleUnited Financial Bancorp, Inc., 25 Park Street, Rockville,45 Glastonbury Boulevard, Glastonbury, CT 06066.06033. Ms. Shaw can be reached by e-mail at: mshaw@rockvillebank.com.mshaw@bankatunited.com. In addition, the Company’s Board of Directors has affirmatively determined that the Board’s Compensation Committee and Governance Committeesand Nominating Committee are comprised entirely of independent Directors within the meaning of applicable laws and regulations, and the listing standards of the NASDAQ Global Select Stock Market.

Independence Standards

As described above, the Company’s Board of Directors examines the independence of its members annually. In order for a Director to be considered independent, the Board must determine that the Director has no material relationship with the Company or its affiliates, either directly or as a partner, shareholder or officer of an organization that has such a material relationship. At a minimum, a Director will not be considered independent if, among other things, the Director:

 

 1.Has been employed by the BankCompany or its affiliates in the current year or past three years.

 

 2.Accepts directly or indirectly any consulting, advisory or other compensatory fee from the Bank or any affiliate thereof, other than in his or her capacity as a member of the Audit Committee, the Board, or any other Board committee and other than fixed amounts of compensation under a retirement plan (including deferred compensation) for prior service with the Bank, provided such compensation is not contingent in any way on continued service.

3.Has accepted, or has an immediate family member who has accepted, any paymentscompensation from the BankCompany or its affiliates in excess of $120,000 during the current or any period of twelve consecutive months within the three previous fiscal years preceding the determination of independence (except for board services, retirement plan benefits, non-discretionary compensation or loans made by the Bank in accordance with applicable banking regulations).

 

 4.3.Has an immediate family member who is, or has been in the past three years, employed by the BankCompany or its affiliates as an executive officer.

 

 5.4.Has been or has an immediate family member who has been, a partner in, a controlling shareholder or an executive officer of any “for profit” businessorganization to which the BankCompany made or from which it received, payments (other than those which arise solely from investments in the Company’s securities)securities or under non-discretionary charitable contribution matching programs) that exceed five percent of the entity’s or the Bank’srecipient’s consolidated gross revenues for that year, or $200,000, whichever is more, in any of the past three fiscal years.

 

 6.5.Has been or has an immediate family member who has been employed as an executive of another entity where any of the Bank’sCompany’s executives serve or have served during the past three years on that entity’s compensation committee.

 

 7.6.Has beenIs or has an immediate family member who has beenis a current partner of the Bank’sCompany’s outside auditor, or was a partner or an employee of the Bank’sCompany’s outside auditor who worked on the Bank’sCompany’s audit at any time during any of the past three years.

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Board Meetings and Committees

The business of the Company’s and the Bank’s Boards of Directors is conducted through regularly scheduled meetings and activities of the Boards and their committees. TheDuring 2014, the Board of Directors of the Bank consists of those persons who serve as Directors of the Company. Additionally, members of the Company’s committees serve on the identical committees of the Bank. During 2012, the Board of DirectorsCompany held twelve (12) regular meetings and seven (7)six (6) special meetings. No Director attended fewer than 75% of the aggregate of the Bank’s and the Company’s Board and committee meetings in 2012,2014, of which he or she was a member, during the period he or she was a Director and a committee member.

Director Attendance at Annual Meetings of Shareholders

It is the Company’s policy to encourage the attendance of each member of the Board of Directors at the Company’s Annual Meeting of Shareholders. The Company expects all of its Directors to attend the Annual Meeting. Last year, all but two of the Directors attended the 20122014 Annual Meeting.

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Committees of the BoardBoards of Directors

The Company’s Board of Directors has six committees:four committees as described below: the Audit Committee, (as described below), the Compensation Committee (as described below), the Governance Committee (as described below), the Asset/Liability Committee, the Executive Committee and the LendingGovernance and Nominating Committee. EachThe Bank’s Board of Directors has a Risk Committee in addition to the four committees described above. The current members of the above committees is a joint committeeof the Boards of Directors of the Company and the Bank. TheBank are as follows:

Committees of the Board of Directors may, by resolution, designate one or more additional committees.of the Company

Executive Committee

Governance and NominatingCompensation Committee

Michael A. Bars

CommitteePaula A. Aiello

Michael F. Crowley

Paula A. AielloKristen A. Johnson,Chair

Kristen A. Johnson

Michael A. Bars,Vice ChairCarol A. Leary,Vice Chair

Carol A. Leary

Michael F. Crowley,ChairRaymond H. Lefurge, Jr.

Raymond H. Lefurge,Jr.,Vice Chair

Kristen A. Johnson

Stuart E. Magdefrau

Carol A. Leary

Kevin E. Ross

Raymond H. Lefurge, Jr.

Robert A. Stewart, Jr.,Chair

Stuart E. Magdefrau
Robert A. Stewart, Jr.

Audit Committee

Paula A. Aiello

Michael F. Crowley

Stuart E. Magdefrau,Vice Chair

Kevin E. Ross,Chair

Committees of the Board of Directors of the Bank

Executive Committee

Audit CommitteeCompensation Committee

Michael A. Bars

Paula A. AielloPaula A. Aiello

Michael F. Crowley

Michael F. CrowleyC. Perry Chilberg

Kristen A. Johnson

David A. EngelsonCarol Moore Cutting

Carol A. Leary

Stuart E. Magdefrau,Vice ChairKristen A. Johnson,Chair

Raymond H. Lefurge,Jr.,Vice Chair

David J. O’ConnorCarol A. Leary,Vice Chair

Stuart E. Magdefrau

Rosemarie Novello PapaRaymond H. Lefurge, Jr.

Kevin E. Ross

Kevin E. Ross,ChairRosemarie Novello Papa

Robert A. Stewart, Jr.,Chair

Richard M. Tkacz

Governance and Nominating

Committee

Risk Committee

Paula A. Aiello

Michael A. Bars,Chair

Michael A. Bars,Vice Chair

C. Perry Chilberg

Michael F. Crowley,Chair

Carol Moore Cutting

Kristen A. Johnson

David J. O’Connor,Vice Chair

Carol A. Leary

Richard M. Tkacz

Raymond H. Lefurge, Jr.

Stuart E. Magdefrau

Robert A. Stewart, Jr.

TheAudit Committee consistingof the Company’s Board of Directors Stuart E. Magdefrau, Chairman, Raymond H. Lefurge, Jr., Vice Chairman, David A. Engelson, and Richard M. Tkacz, meets periodically with the Company’s independent registered public accounting firm and management to review accounting, auditing, internal audit, compliance and financial reporting matters. This committee met nine (9) times during the year ended December 31, 2012.2014. Each member of the Audit Committee is independent in accordance with the listing standards of the NASDAQ

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Global Select Stock Market and the Securities and Exchange Commission’s (“SEC”) Audit Committee independence standards. The Board of Directors has determined that Mr. Lefurge and Mr. Magdefrau areis an audit committee financial expertsexpert under the rules of the SEC. The Audit Committee acts under a written charter adopted by the Board of Directors. The Audit Committee Charter can be found on the Company’s website under the link entitled “Governance“Corporate Overview -Governance Documents” atwww.rockvillefinancialinc.comwww.unitedfinancialinc.com. This document also can be requested in print by writing to Marliese L. Shaw, Corporate Secretary and Investor Relations, RockvilleUnited Financial Bancorp, Inc., 25 Park Street, Rockville,45 Glastonbury Boulevard, Glastonbury, CT 06066.06033. Ms. Shaw can be reached by e-mail at: mshaw@rockvillebank.com.mshaw@bankatunited.com. All of the members of the Audit Committee have a basic understanding of finance and accounting and are able to read and understand fundamental financial statements.

TheCompensation Committee currently consistsof the Company’s Board of Directors Kristen A. Johnson, Chairman, David A. Engelson, Vice Chairman, C. Perry Chilberg, Raymond H. Lefurge, Jr. and Rosemarie Novello Papa. This committee met nineteen (19)thirteen (13) times during the year ended December 31, 2012.2014. The Compensation Committee acts under a written charter adopted by the Board of Directors. The Compensation Committee Charter can be found on the Company’s website under the link entitled “Governance“Corporate Overview - Governance Documents” atwww.rockvillefinancialinc.comwww.unitedfinancialinc.com. This document also can be requested in print by writing to Marliese L. Shaw, Corporate Secretary and Investor Relations, RockvilleUnited Financial Bancorp, Inc., 25 Park Street, Rockville,45 Glastonbury Boulevard, Glastonbury, CT 06066.06033. Ms. Shaw can be reached by e-mail at: mshaw@rockvillebank.com.mshaw@bankatunited.com.

TheExecutive Committee of the Company’s Board of Directors was formed upon legal close of the Merger and met five (5) times during the year ended December 31, 2014. The Executive Committee acts under a written charter adopted by the Board of Directors. The Executive Committee Charter can be found on the Company’s website under the link entitled “Corporate Overview - Governance Documents” atwww.unitedfinancialinc.com. This document also can be requested in print by writing to Marliese L. Shaw, Corporate Secretary and Investor Relations, United Financial Bancorp, Inc., 45 Glastonbury Boulevard, Glastonbury, CT 06033. Ms. Shaw can be reached by e-mail at: mshaw@bankatunited.com.

TheRisk Committee of the Bank’s Board of Directors was formed upon legal close of the Merger and met five (5) times during the year ended December 31, 2014. The Risk Committee assumes the prior responsibilities of the Asset/Liability Committee and the Lending Committee, and acts under a written charter adopted by the Board of Directors of the Bank. The Risk Committee Charter can be found on the Company’s website under the link entitled “Corporate Overview - Governance Documents” atwww.unitedfinancialinc.com. This document also can be requested in print by writing to Marliese L. Shaw, Corporate Secretary and Investor Relations, United Financial Bancorp, Inc., 45 Glastonbury Boulevard, Glastonbury, CT 06033. Ms. Shaw can be reached by e-mail at: mshaw@bankatunited.com.

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Compensation Committee Interlocks and Insider Participation

Each member of the Compensation Committee of the Company’s Board of Directors is independent in accordance with the listing standards of the NASDAQ Global Select Stock Market. There were no Compensation Committee “interlocks” during 2012,2014, which generally means that no executive officer of the Company served as a member of the compensation committee or board of directors of another non-tax-exempt company, an executive officer of which serves on the Company’s Compensation Committee.

The Governance and Nominating Committee and Selection of Nominees for the Board

The Company has adopted a Governance and Nominating Committee Charter. The Governance and Nominating Committee Charter can be found on the Company’s website under the link entitled “Governance“Corporate Overview - Governance Documents” at

5


www.rockvillefinancialinc.comwww.unitedfinancialinc.com. This document also can be requested in print by writing to Marliese L. Shaw, Corporate Secretary and Investor Relations, RockvilleUnited Financial Bancorp, Inc., 25 Park Street, Rockville,45 Glastonbury Boulevard, Glastonbury, CT 06066.06033. Ms. Shaw can be reached by e-mail at: mshaw@rockvillebank.com.mshaw@bankatunited.com. This Charter sets forth the procedure for selecting (i) Director nominees for election and/or re-election to the Board of Directors at the annual meeting of shareholders, (ii) candidates to fill vacancies on the Board in between annual meetings of shareholders, and (iii) Board members for membership on Board committees. The current members of the Governance Committee are Michael A. Bars, Chairman, C. Perry Chilberg, Vice Chairman, Kristen A. Johnson, Raymond H. Lefurge, Jr. and Stuart E. Magdefrau. This committee met seven (7)six (6) times during the year ended December 31, 2012.2014.

The Governance and Nominating Committee is responsible for recommending current Directors for re-nominationrenomination and for identifying and recruiting Director candidates as needed. Director candidates are recommended based upon their character and track record of accomplishments in leadership roles as well as their professional and corporate experience, skills and expertise; and more specifically based upon their observance of the highest standards of business and personal ethics and integrity, their active support of community activities in our market area, and their willingness to participate in appropriate business development efforts and Bank outreach events. Current Directors whose terms are expiring and those persons nominated by shareholders, if any, are reviewed under similar considerations, and also based on contribution, change of status and commitment to the Company. The Governance and Nominating Committee seeks to align Board composition with Rockville Bank’sthe Company’s strategic direction so that the Board’s members bring skills, experience and background that are relevant to the key strategic and operational issues that they will review, oversee and approve. Because being the best community bank in our market is a cornerstone of RockvilleUnited Bank’s strategic direction, community outreach and community leadership are important considerations in reviewing and selecting director candidates. Because the Company is a financial institution, familiarity with financial matters and business acumen are other important considerations. The Governance and Nominating Committee and the other members of the Board view the Company’s Board of Directors as a deliberative body and seek members who are willing to learn from each other and deliberate issues as they arise. The Governance and Nominating Committee completes an evaluation of the Board and its Committees annually and presents those results to the Company’s Board of Directors.

The Company does not have a diversity policy relating to Board membership, nor has it articulated a specific definition of diversity in this context.

The Governance Committee makes its recommendations toDuring the independent members ofperiod extending from April 30, 2014 through the Company’s Board of Directors. The independent members of the Board of Directors, by majority vote, recommend Director nominees to the full Board for election and/or re-election to the Board at the2017 annual meeting of shareholders and, if necessary, candidates(the “Three-Year Period”), but excluding nominations with respect to fill vacancies on the Board in between2017 annual meetingsmeeting of the shareholders. In making such recommendations, the independent Directors consider the recommendations ofshareholders, the Governance and Nominating Committee but may recommend Director nominees not recommended or considered by the Governance Committee. The Board of Directors then recommendsis authorized to the shareholderspropose Director nominees for election and/or re-election to the Board atin accordance with applicable federal securities laws and applicable stock exchange listing regulations, by majority vote of the annual meetingLegacy Rockville Directors serving on the Governance and Nominating Committee (with respect to election of shareholders.a successor to a Legacy Rockville Director) or by majority vote of the Legacy United Directors serving on the Governance and Nominating Committee (with respect to election of a successor to a Legacy United Director), as the case may be. In filling any vacancy on the Board of Directors during the Three-Year Period, the Board must consider only nominees recommended by the Governance and Nominating Committee.

Each nominee for election as a Director at the annual meeting described below under “Election of Directors (Proposal 1)” was recommended to the independent members of the Board by the Governance and Nominating Committee in accordance with the procedures set forth above. In determining to recommend re-election of those Directors whose terms expire in 2013,2015, the Governance and Nominating Committee and the independent members of the Board reviewed the specific credentials of the three (3) nominees and the general skill set and experience of the Board. Although the Governance and Nominating Committee may choose to recommend an increase in Board size in the future, it also determined that the ten (10)seven (7) remaining Directors, including the nominees, collectively have the requisite skill sets and experience to enable the Board to operate effectively. Although the Governance and Nominating Committee and Board considered all aspects

of the nominees’ credentials and experience, the following attributes were influential in its determination:

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Mr. JeamelMs. Aiello had been, prior to his retirementis the Chief Financial Officer and Vice President of Administration for Youth Opportunities Upheld, Inc. in 2010, an executive officer of the Company since its formation in 2004 and of Rockville Bank since 1990 and, before that had approximately 30 years with other Connecticut banks. He has had both operational and financial responsibilities at both institutions. He was one of two management directors on the Board. He is also active on the board of directors of a significant social services agency in the community and Treasurer of the Board of Trustees of a local not-for-profit health network. His banking and related business and leadership experience, as well as his community service experience, are valuable to the Board’s overall capabilities.

Mr. LefurgeWorcester, Massachusetts. She is a certified public accountant and the president of an accounting firm located in the community. He also is a financial expert under the rulesmember of the SEC. HisMassachusetts Society of Certified Public Accountants, the American Institute of Certified Public Accountants and the Central Massachusetts Financial Executives Organization. Her financial and leadership experience are valuable to the Board’s overall capabilities.

Ms. Leary is the President of Bay Path University, located in Longmeadow, Massachusetts, and serves on the board of directors of several major area not-for-profit organizations, including serving as a member of the compensation committee for a major charitable foundation located in Company’s local community. As the leader of a complex organization with hundreds of employees, Ms. Leary’s executive experience, as well as her extensive knowledge of community affairs, is valuable to the Board’s overall capabilities.

6


Mr. MagdefrauRoss is a certified public accountant practicing withthe vice president and treasurer of an accounting firm that he founded,insurance agency located in Holyoke, Massachusetts and has served on the community. He also is aboard of directors of many civic associations and non-profit corporations over the years. His experience in the insurance and financial expert under the rules of the SEC. His financialservices industries, and his long time significant leadership experienceand involvement in community service are valuable to the Board’s overall capabilities.

The seven (7) remaining members of the Company’s Board are currently serving terms that expire in 2014, 20152016, 2017 and 2016.2018. The Governance and Nominating Committee and the Board do not consider the qualifications of these individuals annually. However, in reviewing the candidates for nomination or re-nomination each year, the Governance and Nominating Committee and Board do consider the mix of talents and experience of the entire Board. Among other things, the Governance and Nominating Committee and the Board consider the following qualities or experience of those members whose terms expire in 2014, 20152016, 2017 and 20162018 to be significant and relevant:

Mr. Bars is a partner with one of the largest law firms headquartered in Vernon, Connecticut and has served on the boards of directors of numerous community organizations. His legal and community service experience are valuable to the Board’s overall capabilities.

Mr. Crawford, Chief Executive Officerjoined the Company in January 2011 as Senior Executive Vice President of United Financial Bancorp, Inc. (formerly Rockville Financial, Inc.) and United Bank (formerly Rockville BankBank) and held this position until former President and Chief Executive Officer William J. McGurk’s planned retirement in April 2011, at which time Mr. Crawford became the President and Chief Executive Officer of both entities. Prior to joining Rockville,the Company, Mr. Crawford served in numerous executive roles with Wells Fargo Bank, Wachovia Bank, and SouthTrust Bank from 1997 to 2010 including: Executive Vice President, Commercial Banking, Eastern Virginia, Regional President/Executive Vice President in four different markets: Raleigh/Durham, Southeast Florida, Greensboro/Winston Salem, and Norfolk/Virginia Beach. Mr. Crawford has 25 years of industry experience including leading regional banks exceeding $4 billion in deposits and 1,000+ employee organizations.

Mr. EngelsonCrowley is the Chief Executive Officerpresident of one ofa real estate appraisal firm located in Wilbraham, Massachusetts and has extensive experience in valuing commercial real estate throughout the community’s most activeregion. His real estate subject matter expertise and visible social service agencies and is a prior elementary school principal in the community. His long time significant leadership and involvement in community service are valuable to the Board’s overall capabilities.

Mr. Tkacz is an entrepreneur who owns two community businesses with a significant presence in the construction and residential homeowner markets. His experience as an entrepreneur and participation in the business community are valuable to the Board’s overall capabilities.

Mr. Chilberg is an entrepreneur who owned a business with both a consumer retail function and a manufacturing component. His business experience as an entrepreneur in the community is valuable to the Board’s overall capabilities.

Ms. Johnson is the Vice President of Human Resources and Corporate Secretary of Connecticut Water Company.Services, Inc. Prior to joining Connecticut Water Company in 2007,Services, Inc., she served as Senior Vice President, Human Resources and Organizational Development Officer at Rockville Bank since 1996.from 1996 to 2007. Her human resources leadership and banking and related business experience, as well as her community service experience, are valuable to the Board’s overall capabilities.

Ms. PapaMr. Lefurge has served asis a certified public accountant and the Chairmanpresident of an accounting firm located in Vernon, Connecticut. He is in public practice for over 44 years, and continues to serve asis a member of the boardAmerican Institute of directorsCertified Public Accountants and Connecticut Society of Certified Public Accountants. His financial and leadership experience are valuable to the Board’s overall capabilities.

Mr. Magdefrau is a certified public accountant practicing with an accounting firm that he founded, located in Vernon, Connecticut. He also is an “audit committee financial expert” under the rules of the primary voluntary healthcare institutionSEC. His financial and leadership experience are valuable to the Board’s overall capabilities.

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Mr. Stewartis the president of an insurance agency located in the community. She also servesSpringfield, Massachusetts and has served on the board of directors of many civic associations and non-profit corporations, and is currently a local community college. Her leadershipdirector and executive committee member of Behavioral Health Network, Inc. His expertise in matters relating to insurance and financial services and community service experience are valuable to the Board’s overall capabilities.

Mr. Bars is a partner with one of the largest law firms headquartered in the community and has served on the boards of directors of numerous community organizations. His legal and community service experience are valuable to the Board’s overall capabilities.

Shareholder Nominations for the Board

Nominations by shareholders of record will be considered by the Governance and Nominating Committee if such nomination is submitted in writing to the Secretary of the Company either by mail or in person at the principal offices of the BankCompany located at 25 Park Street, Rockville, Connecticut 0606645 Glastonbury Boulevard, Glastonbury, CT 06033 not less than 100 days prior to any meeting of shareholders called for the election of Directors; provided however, that if fewer than 100 days’ notice of the meeting is given to shareholders, such nomination shall be mailed or delivered in person to the Secretary of the Company prior to the earlier of the close of business on the 10th10th day following (i) the date on which notice of such meeting was given to shareholders; or (ii) the date on which a public announcement of such meeting was first made.

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To be considered, the shareholder’s nomination must contain (i) the name, age, business address and residence address of each proposed nominee; (ii) the principal occupation of each proposed nominee; (iii) the total number of shares of common stock of the Company that will be voted for each proposed nominee; (iv) the name and address of the notifying shareholder; (v) the number of shares of common stock of the Company that are beneficially owned by the notifying shareholder; (vi) any other information relating to the proposed nominee as required to be included in a proxy statement filed pursuant to the proxy rules of the SEC; and (vii) the nominee’s written consent to serve as a Director if elected.

Code of Ethics

The Company’s Standards of Conduct Policy is designed to promote the highest standards of ethical and professional conduct by the Company’s Directors, executive officers, including the principal executive officer, the principal accounting officer and employees, and is adopted annually. The Standards of Conduct Policy requires that the Company’s Directors, executive officers and employees avoid conflicts of interest, comply with all laws and other legal requirements, conduct business in an honest and ethical manner and otherwise act with integrity and in the Company’s best interest. Under the terms of the Standards of Conduct Policy, Directors, executive officers and employees are required to report any conduct that they believe in good faith to be an actual or apparent violation of the Standards of Conduct Policy.

The Company also has a Whistleblower Policy, which is incorporated into the Standards of Conduct Policy, that requires Directors, executive officers and employees to comply with appropriate accounting and internal controls and establishes procedures to report any perceived wrongdoing, questionable accounting or auditing matters in a confidential and anonymous manner. The Whistleblower Policy also prohibits the Company from retaliating against any Director, executive officer or employee who reports actual or apparent violations of the Standards of Conduct Policy. In accordance with this policy, communication of reports is directly to the Executive Vice President Human CapitalDirector of Internal Audit or the Chairman of the Audit Committee. A copy of the Standards of Conduct Policy, including the Whistleblower Policy is available, without charge, upon written request to Marliese L. Shaw, Corporate Secretary and Investor Relations, RockvilleUnited Financial Bancorp, Inc., 25 Park Street, Rockville,45 Glastonbury Boulevard, Glastonbury, CT 06066.06033.

Shareholder Communications with the Board

The Company endeavors to ensure that the Board of Directors or individual Directors, if applicable, consider the views of its shareholders, who may communicate with the Board of Directors by sending a letter or an e-mail to the Company’s Secretary, Judy Keppner Clark (JKClark@rockvillebank.com)Marliese L. Shaw (mshaw@bankatunited.com) or by written correspondence to the Board of Directors or an individual Director with a copy to Ms. Keppner Clark.Shaw. All communications to the Board will be reviewed by the Company’s Chairman and President,Chief Executive Officer, with appropriate recommendations then being made to the Board. The Company believes that this procedure allows the Board to be responsive to shareholder communications in a timely and appropriate manner.

RELATIONSHIP WITH INDEPENDENT PUBLIC ACCOUNTANTS

General

The Audit Committee has appointed Wolf & Company, P.C. as the Company’s independent registered public accounting firm to audit the Company’s financial statements for the year ending December 31, 2013,2015, subject to

10


ratification by the shareholders. In making its selection, the Audit Committee considered whether Wolf & Company, P.C.’s provision of services other than audit services is compatible with maintaining the independence of Rockville’sthe Company’s independent accountants. In addition, the Audit Committee reviewed the fees proposed by Wolf & Company, P.C for tax services and other fees for the year ending December 31, 2013,2015, and concluded that those fees are compatible with the independence of Wolf & Company, P.C.

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Audit Fees

The Audit Committee reviewed the fees described below for audit related services and tax services and concluded that those fees are compatible with the independence of Wolf & Company, P.C. for the years ended December 31, 20122014 and 2011.2013. The following table sets forth the aggregate fees billed by Legacy Rockville’s independent registered public accounting firm, Wolf & Company, P.C. for the years ended December 31, 20122014 and 2011:2013:

 

  December 31,   December 31, 
  2012   2011   2014   2013 
  (In Thousands)   (In Thousands) 

Audit Fees(1)

  $362    $362    $403    $368  

Tax Preparation Fees(2)

   56     44     67     62  

All Other Fees(3)

   19     133     17     32  

Audit-Related Fees(4)

   65     55  
  

 

   

 

   

 

   

 

 

Total

  $437    $539    $552    $517  
  

 

   

 

   

 

   

 

 

 

(1)Includes estimated fees for the financial statement audit of the Company, the audit of internal control over financial reporting, quarterly reviews and the HUD compliance audits and agreed-upon procedures for RockvilleUnited Bank.
(2)Consists of tax return preparation and tax-related compliance and services.
(3)Consists of WolfPAC InformationInformational Technology, Customer Information and Financial Reporting risk assessment modulesmodules.
(4)Consists of work related to the Company’s Form S-4 and implementation costs. In 2011, this also consisted of feesother filings for review of HMDA compliance.the merger with United Financial Bancorp, Inc. and Form S-3 ASR in connection with the subordinated debt issuance.

Policy on Audit Committee Pre-Approval of Audit and Non-Audit Services of Independent Auditor

Consistent with SEC requirements regarding auditor independence, the Audit Committee is requiredhas adopted a policy to pre-approve all audit and permissible non-audit services provided by the independent auditor. Pre-approval is generally provided for up to one year and any pre-approval is detailed as to the particular service or category of services and is generally subject to a specific budget. The Audit Committee reviews annually and pre-approves allhas delegated authority to the Chair of the Audit Committee to pre-approve up to $50,000 in audit and permittedpermissible non-audit services renderedservices. Any decisions by the Company’s independent auditors in accordance withChair of the Company’s Audit Committee Charter.under this delegated authority will be reported at the next meeting of the Audit Committee, and ratification of any action so taken will be sought.

All engagements of the independent auditor to perform any audit services and non-audit services during 20122014 were pre-approved by the Audit Committee in accordance with the Company’s Audit Committee Charter. There were no instances where this was waived.

REPORT OF THE AUDIT COMMITTEE

In accordance with rules adopted by the Securities and Exchange Commission, the Audit Committee of the Board of Directors of the Company submits this report for 2012.2014.

The Audit Committee of the Board of Directors is responsible for providing independent, objective oversight of the Company’s accounting functions and internal controls. Its responsibilities include appointing, compensating and monitoring the Company’s independent auditors. During 2012,2014, prior to the Merger the Committee was comprised of four (4) directors, Messrs. Magdefrau, Lefurge, Engelson and Tkacz and after the Merger the Committee was comprised of four (4) directors, Ms. Aiello and Messrs. Crowley, Magdefrau and Ross, each of whom is independent as defined by the rules of the NASDAQ Global Select Stock MarketsMarket and the SEC.

The Committee operates under a written charter approved by the Board of Directors. The Audit Committee Charter can be found on the Company’s website under the link entitled “Governance Documents” atwww.rockvillefinancialinc.com. This document also can be requested in print by writing to Marliese L. Shaw, Investor Relations, Rockville Financial, Inc., 25 Park Street, Rockville, CT 06066. Ms. Shaw can be reached by e-mail at: mshaw@rockvillebank.com.

Management is responsible for the Company’s internal controls and financial reporting process. The independent auditors, Wolf & Company P.C., are responsible for performing an independent audit of the Company’s consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States) and to issue a report thereon. The Committee’s responsibility is to monitor and oversee these processes.

 

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In connection with these responsibilities, the Committee met with management and Wolf & Company P.C. to review and discuss the 20122014 consolidated financial statements. The Committee also discussed with Wolf & Company P.C .P.C. the matters required by Statement on Auditing Standards No. 61, as amended (AICPA, Professional Standards Vol 1, AU section 380), as adopted by the Public Company Accounting Oversight Board in Rule 3200T. The Committee also received written disclosures and a letter from Wolf & Company P.C. required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent accountant’s communications with the Audit Committee concerning independence, and the Committee discussed with Wolf & Company P.C. the firm’s independence.

Based upon the Committee’s discussions with management and the independent auditors, and the Committee’s review of the presentations of management and the independent auditors, the Committee recommended that the Board of Directors include the audited consolidated financial statements in the Company’sUnited Financial Bancorp, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2012,2014, which willis expected to be filed with the SEC on March 14, 2013.9, 2015.

March 7, 2013x, 2015

The Audit Committee:

Kevin Ross, Chairman,

Stuart E. Magdefrau, Chairman,

Raymond H. Lefurge, Jr., Vice Chairman

DavidPaula A. EngelsonAiello

Richard M. TkaczMichael F. Crowley

ELECTION OF DIRECTORS

(Proposal 1)

The Certificate of Incorporation of the Company provides that the number of Directors shall not be fewer than eight (8) nor more than sixteen (16). The Certificate of Incorporation further provides that the number of Directors shall only be increased or decreased by the Board of Directors. Currently, the Board of Directors has set the number of Directors of the Company at eleven (11), but will decrease to ten (10) followingand of the Annual Meeting.Bank at sixteen (16). The Company’s Bylaws provide that no person age 70 or older is eligible for election and/or re-election as a Director. Joseph F. Jeamel, Jr. and William J. McGurk, both current Directors, are at an ageDirector; provided, however, that, makes themduring the Three-Year Period, no Legacy United Director or Legacy Rockville Director who served as a Director as of the closing of the Merger will be ineligible for re-election as a Director by virtue of being aged seventy (70) years or more at the Annual Meeting; however, the Company is making an exception to the retirement age policy at this time and allowing for the re-nomination of Mr. Joseph F. Jeamel, Jr. for a one-year term in order to assist with the Company’s transition to a fully public company and to maintain banking industry expertise on the Board during the transition. Mr. McGurk will retire at this year’s Annual Meeting.re-election.

Three (3) Directors will be elected at the Annual Meeting to serve for one-year and four-year terms as applicable, and until their successor is elected and qualified.expiring in 2019. Following the recommendation of the Governance Committee, the independent members and the full membership ofNominating Committee, the Board of Directors havehas recommended and nominated Joseph F. Jeamel, Jr., Raymond H. Lefurge, Jr.Paula A. Aiello, Carol A. Leary and StuartKevin E. Magdefrau,Ross, current Board members, for re-electionreelection as Director. ThereExcept as noted below, there are no arrangements known to Management between Joseph F. Jeamel, Jr., Raymond H. Lefurge, Jr.Paula A. Aiello, Carol A. Leary and StuartKevin E. MagdefrauRoss and any other person pursuant to which such nominee was selected. Mr. LefurgeIn accordance with the Bylaws of the Company adopted in connection with the Merger, Ms. Aiello, Ms. Leary and Mr. MagdefrauRoss are entitled to be nominated for a four-year termat the 2015 Annual Meeting, subject to expire in 2017satisfaction of the Company’s renomination policies and Mr. Jeamel is nominated for a one-year termcriteria applicable to expire in 2014.incumbent Directors.

The persons named on the enclosed proxy intend to vote for the election of Mr. Jeamel, Mr. LefurgeMs. Aiello, Ms. Leary and Mr. Magdefrau,Ross, unless the proxy is marked by the shareholder to the contrary. If Mr. Jeamel, Mr. LefurgeMs. Aiello, Ms. Leary or Mr. MagdefrauRoss is unable to serve, all valid proxies will be voted for the election of such substitute as the Board of Directors may recommend, or the Board of Directors may determine to reduce the number of directorships to eliminate the resulting vacancy. The Board knows of no reason why Mr. Jeamel, Mr. LefurgeMs. Aiello, Ms. Leary or Mr. MagdefrauRoss might be unavailable to serve. The table below and on the following pages sets forth certain information with respect to Mr. Jeamel, Mr. LefurgeMs. Aiello, Ms. Leary and Mr. Magdefrau,Ross, and each Director of the Company continuing in office.

 

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NOMINEE FOR DIRECTOR FOR ONE YEAR TERM TO EXPIRE IN 2014

   Director 
   Age(1)   Since(2) 

Joseph F. Jeamel, Jr.

   73     2007  
Mr. Jeamel joined Rockville Bank in 1990. He served as Senior Vice President and Chief Financial Officer of Rockville Bank until 2003 when he was promoted to Executive Vice President. In 2005, he was promoted to Chief Operating Officer of Rockville Bank and was appointed Executive Vice President of the Company. Mr. Jeamel retired from his positions with Rockville Bank and the Company on June 30, 2010, but still consults for Rockville Bank.    

NOMINEES FOR DIRECTOR FOR FOUR YEAR TERM TO EXPIRE IN 20172019

 

   Director 
   Age(1)   Since(2) 

Raymond H. Lefurge, Jr., Chairman

   63     2003  
Mr. Lefurge is a certified public accountant. He is the majority shareholder of the auditing, tax and accounting services firm of Lefurge & Gilbert, PC, CPAs, located in Vernon, Connecticut, where he also holds the position of President. Mr. Lefurge previously served as a director of a local publicly traded community bank and served as their Audit Committee Chairman. In addition, he currently serves as a member of the Audit and Corporate Compliance Committee and Planning Committee of Eastern Connecticut Health Network, a local health network.    

Stuart E. Magdefrau

   58     1995  
Mr. Magdefrau is a certified public accountant, practicing with the firm of Magdefrau, Renner & Ciaffaglione LLC, CPAs, located in Vernon and West Hartford, Connecticut. He was the founding partner of the firm but no longer has an ownership interest in it. He is a Registered Investment Advisor practicing with the firm Keynote Financial Services, LLC. He has served on the boards of directors of numerous community and statewide organizations.    
   Director 
   Age(1)   Since(2) 

Paula A. Aiello

   52     2008  
Ms. Aiello is Chief Financial Officer and Vice President of Administration for Youth Opportunities Upheld, Inc. of Worcester. She is a certified public accountant and is a member of the Massachusetts Society of Certified Public Accountants, the American Institute of Certified Public Accountants and the Central Massachusetts Financial Executives Organization.    

Carol A. Leary

   67     2001  
Dr. Leary is President of Bay Path University, located in Longmeadow, Massachusetts. She serves on the board of directors of several major national, state and area not-for-profit organizations, including serving as a director and member of the compensation committee for a major charitable foundation located in Company’s local community, namely the Frank Stanley Beveridge Foundation.    

Kevin E. Ross

   62     1991  
Mr. Ross is Vice President and Treasurer of Ross Insurance Agency, Inc., located in Holyoke, Massachusetts. He has also served on the board of directors of many civic associations and non-profit corporations over the years.    

 

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CONTINUING DIRECTORS (TERMS TO EXPIRE IN 2014)

   Director 
   Age(1)   Since(2) 

William H. W. Crawford, IV

   47     2011  
Mr. Crawford joined the Company in January 2011 as Senior Executive Vice President of Rockville Financial, Inc. and Rockville Bank and held this position until Mr. McGurk’s planned retirement in April 2011, at which time Mr. Crawford became the President and Chief Executive Officer of both entities. Prior to joining Rockville, Mr. Crawford served in numerous executive roles with Wells Fargo Bank, Wachovia Bank, and SouthTrust Bank from 1997 to 2010 including: Executive Vice President, Commercial Banking, Eastern Virginia, Regional President/Executive Vice President in four different markets: Raleigh/Durham, Southeast Florida, Greensboro/Winston Salem, and Norfolk/Virginia Beach. Mr. Crawford has 25 years of industry experience including leading regional banks exceeding $4 billion in deposits and 1,000+ employee organizations.    

David A. Engelson

   69     1998  
Mr. Engelson was, for nineteen years, the Supervisory Principal of Center Road Elementary School, located in Vernon, Connecticut, until he retired in 2002. He is currently the Chief Executive Officer of Hockanum Valley Community Council, Inc., a social service agency, located in Vernon, Connecticut.    

Richard M. Tkacz

   60     2007  
Mr. Tkacz is the owner of Rich’s Oil Service, Inc. and Rich’s Plumbing, Heating and Air Conditioning, Inc., privately held oil distributing and HVAC companies located in Enfield, Connecticut.    

CONTINUING DIRECTORS (TERMS TO EXPIRE IN 2015)

   Director 
   Age(1)   Since(2) 

C. Perry Chilberg

   64     1999  
Mr. Chilberg is the former Vice President and majority owner of Bergson Tire, Co., Inc., an automotive tire retail business and a manufacturer of truck tire retreads, located in Ellington, Connecticut, which was sold to Sullivan Tire Co., Inc. of Norwood, Massachusetts in 2010. Mr. Chilberg is employed by the new owner as an executive consultant.    

12


CONTINUING DIRECTORS (TERMS TO EXPIRE IN 2015)

   Director 
   Age(1)   Since(2) 

Kristen A. Johnson

   46     2010  
Ms. Johnson is the Vice President of Human Resources and Corporate Secretary of Connecticut Water Company in Clinton, Connecticut. Prior to joining Connecticut Water Company in 2007, she served as Senior Vice President, Human Resources and Organizational Development Officer at Rockville Bank.    

Rosemarie Novello Papa

   68     2007  
Ms. Papa is Past Chair of the Board of Trustees for Eastern Connecticut Health Network and a member of the Board of Trustees for Manchester Community College Foundation.    

CONTINUING DIRECTORS (TERMS TO EXPIRE IN 2016)

 

   Director 
   Age(1)   Since(2) 

Michael A. Bars, Vice Chairman

   57     2003  
Mr. Bars is the managing partner of the law firm of Kahan, Kerensky & Capossela, LLP, a general practice law firm with offices in Vernon and Mansfield, Connecticut and a past director and Past President of Ellington Ridge Country Club, Inc. and Ellington Purchasing Corp.    
   Director 
   Age(1)   Since(2) 

Stuart E. Magdefrau

   60     1995  
Mr. Magdefrau is a certified public accountant, practicing with the firm of Magdefrau, Renner & Ciaffaglione LLC, CPAs, located in Vernon and West Hartford, Connecticut. He was the founding partner of the firm but no longer has an ownership interest in it. He is a Registered Investment Advisor practicing with the firm Keynote Financial Services, LLC. He currently serves as a director and Treasurer for Strong Family Farm, Inc. and is a past director and Past Treasurer of Ellington Ridge Country Club, Inc. and Ellington Purchasing Corp.    

Robert A. Stewart, Jr., Chairman

   63     1991  
Mr. Stewart is President of Chase, Clarke, Stewart & Fontana, Inc., an insurance agency located in Springfield, Massachusetts. Mr. Stewart has also served on the board of directors of many civic associations and non-profit corporations and is currently a director and executive committee member of Behavioral Health Network, Inc.    
CONTINUING DIRECTORS (TERMS TO EXPIRE IN 2017)  
   Director 
   Age(1)   Since(2) 

Michael A. Bars

   59     2003  
Mr. Bars is a managing partner of the law firm of Kahan, Kerensky & Capossela, LLP, a general practice law firm with offices in Vernon and Mansfield, Connecticut, is on the Board of Directors of The Hundred Club of Connecticut, Inc. and is a past Trustee and Chair of the Board of Trustees of Eastern Connecticut Health Network, Inc.    

Kristen A. Johnson

   48     2010  
Ms. Johnson is the Vice President of Human Resources and Corporate Secretary of Connecticut Water Services, Inc. in Clinton, Connecticut. Prior to joining Connecticut Water Company in 2007, she served as Senior Vice President, Human Resources and Organizational Development Officer at Rockville Bank.    

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CONTINUING DIRECTORS (TERMS TO EXPIRE IN 2018)

   Director 
   Age(1)   Since(2) 

William H. W. Crawford, IV

   49     2011  
Chief Executive Officer Crawford joined the Company in January 2011 as Senior Executive Vice President of United Financial Bancorp, Inc. (formerly Rockville Financial, Inc.) and United Bank (formerly Rockville Bank) and held this position until former President and Chief Executive Officer William J. McGurk’s planned retirement in April 2011, at which time Mr. Crawford became the President and Chief Executive Officer of both entities. Prior to joining the Company, Mr. Crawford served in numerous executive roles with Wells Fargo Bank, Wachovia Bank, and SouthTrust Bank from 1997 to 2010 including: Executive Vice President, Commercial Banking, Eastern Virginia, Regional President/Executive Vice President in four different markets: Raleigh/Durham, Southeast Florida, Greensboro/Winston Salem, and Norfolk/Virginia Beach. Mr. Crawford has 25 years of industry experience including leading regional banks exceeding $4 billion in deposits and 1,000+ employee organizations.    

Michael F. Crowley

   55     2001  
Mr. Crowley is President of Crowley Real Estate Appraisers, Inc. and M.F.C. Systems, Inc., companies that provide commercial real estate appraisal, realty consultation and project management services in the region. He develops and has ownership interests in a number of commercial real estate ventures in the Western Massachusetts region. Mr. Crowley is a current Director and immediate Past President of the Springfield Riverfront Development Corporation, the real estate subsidiary of the Naismith Memorial Basketball Hall of Fame and has served on numerous civic and governmental boards of directors over the past 25 years.    

15


   Director 
   Age(1)   Since(2) 

Raymond H. Lefurge, Jr., Vice Chairman

   64     2003  
Mr. Lefurge is a certified public accountant is a member of the American Institute of Certified Public Accountants and Connecticut Society of Certified Public Accountants. He is the sole shareholder of the auditing, tax and accounting services firm of Lefurge & Gilbert, PC, CPAs, located in Vernon, Connecticut, where he also holds the position of President. Mr. Lefurge previously served as a director of a local publicly traded community bank and served as their Audit Committee Chairman. In addition, he currently serves as a member of the Audit and Corporate Compliance Committee and the Planning Committee of Eastern Connecticut Health Network, a local health network. He also serves as trustee of an educational trust for the benefit of students of Vernon, Connecticut.    

 

(1)Ages presented are as of December 31, 2012.2014.
(2)The reported date is the date the individual became a Director of Rockville Bank or United Bank. Each of Ms. Aiello, Dr. Leary and Messrs. Ross, Stewart and Crowley joined the Board of Directors of the Company upon the closing of the Merger on April 30, 2014.

INFORMATION ABOUT EXECUTIVE OFFICERS

Executive Officers of RockvilleUnited Financial Bancorp, Inc.

The following individuals are the executive officers of RockvilleUnited Financial Bancorp, Inc. and hold the offices set forth below opposite their names.

 

Name

  Age(1)   

Position

William H.W. Crawford, IV

   4749    

President and Chief Executive Officer

Eric R. Newell

35Executive Vice President, Chief Financial Officer and Treasurer

Marino J. Santarelli

   6163    

Executive Vice President

Scott C. BechtleMark A. Kucia

   6251    

Executive Vice President

John T. LundDavid C. Paulson

   4252    

Executive Vice President Chief Financial Officer and Treasurer

Richard J. Trachimowicz

58

Executive Vice President

Eric R. Newell

33

Senior Vice President

Marliese L. Shaw

   4850    

SeniorExecutive Vice President, Corporate Secretary and Investor Relations

Judy Keppner ClarkElizabeth K. Wynnick

   5445    

Executive Vice President Corporate Secretary

 

(1)Ages presented are as of December 31, 2012.2014.

13


The executive officers of RockvilleUnited Financial Bancorp, Inc. are elected annually and hold office until their respective successors have been elected or until death, resignation, retirement or removal by the Board of Directors. Pursuant to the Company’s Bylaws, the removal of Mr. Crawford from, or the failure to appoint Mr. Crawford to, the Chief Executive Officer position, and any amendment to or termination of any employment agreement with Mr. Crawford, prior to the expiration of the Three-Year Period, requires the affirmative vote of at least two-thirds of the full Board of Directors, excluding Mr. Crawford.

16


Executive Officers of RockvilleUnited Bank

The following individuals are the executive officers of RockvilleUnited Bank and hold the offices set forth below opposite their names:

 

Name

  Age(1)   

Position

William H.W. Crawford, IV

   4749    

President and Chief Executive Officer

Eric R. Newell

35Executive Vice President, Chief Financial Officer and Treasurer

Marino J. Santarelli

   6163    

Executive Vice President, Chief Operating Officer

Scott C. BechtleDena M. Hall

   6241    

Executive ViceWestern Massachusetts Regional President, Chief RiskMarketing Officer

Stanley S. KonieckiCraig W. Hurty

   5753    

Executive Vice President, Information Technology/Operations

Chief Human Resources Officer

Mark A. Kucia

   4951    

Executive Vice President, Head of Commercial Banking

John T. Lund

42

Executive Vice President, Chief FinancialCredit Officer and Treasurer

Richard J. Trachimowicz

58

Executive Vice President, Human Capital and Organizational Development

Marisol T. Anderson

43

Senior Vice President, Project Management

Brandon C. Lorey

   4446    

SeniorExecutive Vice President, Head of Consumer Lending

Eric R. NewellDavid C. Paulson

   3352    

SeniorExecutive Vice President, DirectorHead of Treasury

Laurie A. Rosner

48

Senior Vice President, Marketing and Administrative Services

Wholesale Banking

Marliese L. Shaw

   4850    

SeniorExecutive Vice President, Corporate Secretary and Investor Relations

Howard Stanton, III

60

Senior Vice President, Chief Accounting Officer

Elizabeth K. Wynnick

   4345    Executive Vice President, Chief Risk Officer

Samir R. Patel

53Senior Vice President, Director of Internal Audit

Chief Technology Officer

 

(1)Ages presented are as of December 31, 2012.2014.

The executive officers of RockvilleUnited Bank are elected annually and hold office until their respective successors have been elected or until death, resignation, retirement or removal by the Board of Directors.

Biographical Information of Executive Officers of RockvilleUnited Who Are Not Directors

Marisol T. Anderson,Dena M. Hall, Western Massachusetts Regional President, Chief Marketing Officer, joined United Bank in 2005 and served as the Senior Vice President Project Management Officer, joined Rockville Bank in April 2003of Marketing and served as Vice President, Call Center ManagerCommunity Relations until 2009 when she was appointed Vice President, Project Manager, and was promoted to her current position in March 2012.May, 2014. Prior to joining the Bank, Ms. Anderson served as Assistant Vice President, Call Center and Branch Operations OfficerCompany she was the Marketing Director at AmericanWoronoco Savings Bank (now Berkshire Bank) in New Britain, CT.Westfield, Massachusetts. Ms. Hall also serves as the President of the United Bank Foundation.

Scott C. Bechtle,Craig W. Hurty, Executive Vice President, Chief RiskHuman Resources Officer, joined RockvilleUnited Bank in June 2011.2014. Previously, Mr. Hurty was with Aetna, Inc. for fourteen years where he held a variety of executive roles including Vice President, HR Shared Services, HR Head for Business Operations, and Head of Talent Strategies and Services. Prior to joiningAetna, Mr. Hurty developed his human resources skills in management and staff roles with PacifiCare Health Systems. Mr. Hurty began his career in the Bank he most recently served as Credit Administration Executive for Florida Shores Bankexecutive search and Executive Vice President for Florida Shores Service Companycompensation consulting practice of KPMG Peat Marwick and in South Florida since 2006. Prior executive roles in his over thirty years of financial services industry experiences included Executive Vice President/Regional Credit Officer at Wachovia Bank (f/k/a Southtrust Bank) and Executive Vice President/Senior Credit Officer at Bank of America (f/k/a Barnett Banks).sales with Northwestern Mutual Life.

Judy Keppner Clark,Vice President, Corporate Secretary, joined Rockville Bank in August 1996. She has served in various positions at Rockville Bank, including Teller and Fiscal Assistant.

Stanley S. Koniecki,Executive Vice President, Information Technology/Operations Officer, joined Rockville Bank in May 2011 as Senior Vice President, Information Technology/Operations Officer and was promoted to his current position in March 2012. Prior to joining the Bank he served as Vice President of Information Services at Space Coast Credit Union in Florida since 2007. Prior to his move to Florida he was an executive with Westbank, subsidiary of Westbank Corporation, located in West Springfield, Massachusetts.

14


Mark A. Kucia, Executive Vice President, Head of Commercial Banking,Chief Credit Officer, joined Rockville Bank in October 2005 and served asran the Vice President, Senior Commercial Real Estate LenderBanking Department from August 2007 until March 2014 when he was promoted to Senior Vice President, Commercial Banking Officer in August 2007, and promotedappointed to his current position in July 2011.position. Prior to joining the Bank, Mr. Kucia served as Vice President, Senior Commercial Real Estate Lender at Liberty Bank located in Middletown, Connecticut.Connecticut and worked at Mechanics Bank in Hartford, Connecticut and BayBank in Springfield, Massachusetts, in a variety of roles covering all aspects of commercial banking. Mr. Kucia’s career began at the New York City offices of National Westminster Bank, PLC, on a corporate lending team.

Brandon C. Lorey,SeniorExecutive Vice President, Head of Consumer Lending, joined Rockville Bank in February 2013.2013 and served as the Senior Vice President, Head of Consumer Lending until April 2014 when he was promoted to his current position. Prior to joining the Bank, Mr. Lorey was the Chief Credit and Lending Officer for H&R Block Bank in Kansas City where he was in charge of loan origination and credit administration. Previously, he served as Senior Vice President at Sovereign Bank in Pennsylvania and held various roles at Chevy Chase Bank, Federal Savings Bank in Maryland, including Vice President of risk, finance, operations, and direct sales.

John T. Lund,Eric R. Newell, Executive Vice President, Chief Financial Officer and Treasurer joined Rockville Bank in December 2008 as Senior Vice President, Chief Financial Officer and Treasurer and was promoted to his current position in July 2011. Prior to joining the Bank, Mr. Lund served as a Bank Examiner with the Federal Deposit Insurance Corporation (“FDIC”), out of the Hartford, Connecticut office since 1993.

Eric R. Newell, Senior Vice President, Director of Treasury joined Rockville Bank in May 2011 as Vice President, Treasury Officer and was promoted to Senior Vice President, Director of Treasury in March 2012. He was promoted to Executive Vice President, Head of Treasury and Corporate Strategy in May 2013, and to his current position in March 2012.November 2013. Mr. Newell holds a CFA designation and prior to his joining the Bank he served as an analyst at AllianceBernstein,Alliance Bernstein, as an analyst for Fitch Ratings, and as a Bank Examiner with the Federal Deposit Insurance Corporation (“FDIC”), out of the Hartford, Connecticut office.

17


Laurie A. Rosner,David C. Paulson,Executive Vice President, Head of Wholesale Banking, joined Rockville Bank in March 2014. Prior to joining the Bank, Mr. Paulson was with Santander Bank N.A. where he was Managing Director and Commercial Banking Executive Vice President. Prior to Santander, Mr. Paulson served as Regional Vice President – Commercial Banking Wells Fargo, as well as Commercial Banking Director, Senior Vice President Marketing and Administrative Servicesfor Wachovia Bank.

Samir R. Patel, Senior Vice President, Chief Technology Officer, joined Rockville Bank in July 1991.February 2014. Prior to 1991, Ms. Rosnerjoining the Bank, Mr. Patel served as Marketing Assistant, Managerat a startup bank headquartered in Greenville, South Carolina, where he was Senior Vice President and Chief Information Officer. He was Senior Technology Officer for Wells Fargo during its merger with Wachovia. Prior to Wells, Mr. Patel held several senior roles with Wachovia, Bank of OperationsAmerica, and Mail Services,Accenture – a management consulting, technology services and Manager of Research and Records Retention for Northeast Savings, located in Hartford, Connecticut.outsourcing company.

Marino J. Santarelli,Executive Vice President, Chief Operating Officer, joined Rockville Bank in July 2011. Prior to joining the Bank, Mr. Santarelli was with Wells Fargo and its predecessor banks for seventeen years, and most recently he served as the Wells Fargo Market Executive and Business Banking Executive for Eastern Virginia.

Marliese L. Shaw Senior, Executive Vice President, Corporate Secretary/Investor Relations, joined Rockville Bank in May 2004 as Vice President, Treasury Officer, was appointed Vice President, Treasury Officer and Investor Relations upon the close of the Company’s initial public offering and was promoted to Senior Vice President, Investor Relations in March 2012 and appointed Senior Vice President, Corporate Secretary and Investor Relations in May 2013. She was promoted to her current position in March 2012.April 2014. Prior to 2004, Ms. Shaw served as Vice President, Treasury Officer for Tolland Bank, subsidiary of Alliance Bancorp of New England, located in Vernon, Connecticut.

Howard Stanton, III,Elizabeth Wynnick Senior, Executive Vice President, Chief Accounting Officer, joined Rockville bank in July 2009 as Vice President, Controller and was promoted to his current position in March 2012. Prior to joining the Bank, Mr. Stanton served as Vice President of Finance for Westbank, subsidiary of Westbank Corporation, located in West Springfield, Massachusetts.

Richard J. Trachimowicz, Executive Vice President, Human Capital and Organizational DevelopmentRisk Officer, joined Rockville Bank in May 1996 and servedApril 2012 as the Senior Vice President, Retail Banking Officer until he was appointed as Senior Vice President, Human Resources and Organizational Development Officer in May 2007. He was promoted to his current position in 2010. Prior to 1996, Mr. Trachimowicz served as Manager of Sales and Customer Service for Northeast Savings, located in Hartford, Connecticut.

Elizabeth Wynnick, Senior Vice President, Director of Internal Audit, joined Rockville Bankwas promoted to Executive Vice President, Director of Internal Audit in April 2012.2014, and was promoted to her current position in December 2014. Ms. Wynnick holds a CPA and CFSA designation and is licensed to practice law in Connecticut. Prior to joining the Bank, she served as General Auditor of NewAlliance Bank and as Deputy General Auditor of Webster Bank.

15


BENEFICIAL OWNERSHIP OF COMMON STOCK BY MANAGEMENT AND CERTAIN BENEFICIAL OWNERS

The table below sets forth information as of March 13, 2013,x, 2015, with respect to principal beneficial ownership of Common Stock by each Director of the Company and each of the Named Executive Officers, and by any person (including any “group” as that term is used in Section 13(d)(3) of the Securities Exchange Act of 1934) who is known to the Company to be the beneficial owner of more than 5% of the Company’s Common Stock and with respect to ownership of Common Stock by all Directors and Named Executive Officersexecutive officers of the Company and the Bank as a group.

 

Name and Address of Beneficial Owner

  Number of Shares
Beneficially Owned(1)Owned(1)
  Percent of
Class (2)
 

Keeley Asset Management Corp.

111 West Jackson, Suite 810

Chicago, IL 60604BlackRock, Inc.

   1,830,7003,443,501(3)   6.556.98

55 East 52ndStreet

New York, NY 10022

WellingtonKeeley Asset Management Co., LLP

280 Congress Street

Boston, MA 02210Corp.

   1,775,4482,880,892(3)   6.355.85%

111 West Jackson, Suite 810

Chicago, IL 60604

18


Name and Address of Beneficial Owner

Number of Shares
Beneficially Owned(1)
Percent of Class (2) 

Rockville Bank Employee Stock Ownership Plan (“ESOP”)Non-Management Directors:

25 Park Street

Rockville, CT 06066Paula A. Aiello

   1,695,25724,927(3)(4)   6.06*%

Michael A. Bars

84,086(5)*

Michael F. Crowley

100,702(6)*

Kristen A. Johnson

62,757(7)(18)*

Carol A. Leary

90,007(8)*

Raymond H. Lefurge, Jr.

106,950(9)*

Stuart E. Magdefrau

93,670(10)*

Kevin E. Ross

87,330(11)*

Robert A. Stewart, Jr.

73,003(12)*  

BlackRock, Inc.

40 East 52ndStreetNamed Executive Officers:

New York, NY 10022William H. W. Crawford, IV

   1,659,066434,820(3)(13)(18)   5.93*%

Eric R. Newell

108,088(14)(18)*

Marino J. Santarelli

161,027(15)(18)*

David C. Paulson

2,804(16)(18)*

Mark A. Kucia

198,106(17)(18)*  

The VanguardAll Directors and Executive Officers as a Group (18 persons)

100 Vanguard Boulevard

Malvern, PA 19355

1,428,764(3)   5.111,770,511x.xx

16


Name and Address of Beneficial Owner

  Number of Shares
Beneficially Owned(1)
  Percent of
Class (2)
 

Non-Management Directors:

   

Michael A. Bars

   61,643(4)   *  

C. Perry Chilberg

   86,081(5)   *  

David A. Engelson

   91,117(6)   *  

Joseph F. Jeamel, Jr.

   188,931(7)   *  

Kristen A. Johnson

   40,316(8)(18)   *  

Raymond H. Lefurge, Jr.

   83,790(9)   *  

Stuart E. Magdefrau

   71,227(10)   *  

William J. McGurk

   470,908(11)(18)   1.68

Rosemarie Novello Papa

   24,059    *  

Richard M. Tkacz

   20,923(12)   *  

Named Executive Officers:

   

William H. W. Crawford, IV

   99,730(13)(18)   *  

John T. Lund

   49,486(14)(18)   *  

Marino J. Santarelli

   33,432(15)   *  

Scott C. Bechtle

   35,013(16)(18)   *  

Mark A. Kucia

   77,394(17)(18)   *  

All Directors and Executive Officers as a Group (24 persons)

   1,723,415    6.16

 

*Less than 1% of the common stock outstanding.
(1)Based on information provided by the respective beneficial owners and on filings with the Securities and Exchange CommissionSEC made pursuant to the Securities Exchange Act of 1934.
(2)Based on approximately 27,960,63849,xxx,xxx shares of common stock issued and outstanding as of March 13, 2013.x, 2015.
(3)Based solely on information provided in a Schedulethe Schedules 13G filed with the SEC by Keeley Asset Management Corp., Wellington Management Company, LLP, BlackRock, Inc., The Vanguard Group and by the Rockville Bank Employee Stock Ownership Plan. for United Financial Bancorp, Inc. All shares are held with shared voting and dispositive power.
(4)Includes 15,1676,399 shares of restricted common stock 20,726and 13,808 exercisable options to purchase common stock.
(5)Includes 27,130 shares of restricted common stock, 31,206 exercisable options to purchase common stock and 12,133 shares of which are pledged.
(5)(6)Includes 21,234 shares held by his wife, 7,720 shares held by adult child, 15,16737,333 shares of restricted common stock and 20,726 exercisable options to purchase common stock.
(6)Includes 7,583 shares held by his wife, 15,167 shares held jointly with his wife, 18,919 shares of restricted common stock and 22,69856,360 exercisable options to purchase common stock.
(7)Includes 59,71411,963 shares of restricted common stock and 79,87613,007 exercisable options to purchase common stock.
(8)Includes 3,58833,647 shares of restricted common stock and 56,360 exercisable options to purchase common stock.
(9)Includes 19,71719,716 shares held jointly with his wife, 10,61611,105 shares held by his wife, 14,86426,827 shares of restricted common stock and 20,72631,206 exercisable options to purchase common stock.
(10)Includes 13,650 shares held jointly with his wife, 13,65125,614 shares of restricted common stock and 20,72631,206 exercisable options to purchase common stock.
(11)Includes 22,750 shares held jointly with his wife, 118,87830,970 shares of restricted common stock and 237,76656,360 exercisable options to purchase common stock.
(12)Includes 1,21336,247 shares held by his wifeof restricted common stock and 13,14328,743 exercisable options to purchase common stock.
(13)Includes 14,33670,109 shares of restricted common stock and 83,558349,607 exercisable options to purchase common stock.
(14)Includes 303 shares held jointly with his wife, 5,41114,101 shares of restricted common stock and 35,49186,466 exercisable options to purchase common stock.
(15)Includes 4,13421,039 shares of restricted common stock and 29,298135,270 exercisable options to purchase common stock.
(16)Includes 4,4462,804 shares of restricted common stock and 25,233 exercisable options to purchase common stock.
(17)Includes 10,34627,168 shares of restricted common stock and 46,984145,483 exercisable options to purchase common stock.
(18)Includes shares allocated to the account of the individuals under the Rockville Bank Employee Stock Ownership Plan. The respective individuals have vested shares as follows: Mr. Bechtle – 334; Mr. Crawford – 836 shares; Ms. Johnson – 5,562 shares; Mr. Lund – 4,695 shares; and Mr. Kucia – 14,096 shares. Also, includes shares allocated to the account of the individuals under the Rockville Bank 401(k) Plan. The respective individuals have vested shares as follows: Ms. Johnson – 11,53918,160 shares; Mr. LundCrawford3,58614,103 shares; Mr. Newell – 5,357 shares, Mr. Santarelli – 3,144 shares and Mr. Kucia – 5,968 shares; and Mr. McGurk – 33,18623,127 shares.

17


Section 16(a) Beneficial Ownership Reporting Compliance

Based solely upon a review of information furnished to the Company pursuant to Rule 16a-3(e) during the year ended December 31, 2012,2014, all of the Company’s Directors and Executive Officers subject to the reporting requirements of Section 16(a) of the Securities Exchange Act of 1934 filed all required reports on a timely basis.

19


COMPENSATION DISCUSSION AND ANALYSIS

In this section we discuss and analyze the compensation of the “Named Executive Officers” including the Chief Executive Officer, the Chief Financial Officer and the three most highly compensated executive officersofficers. In addition, in accordance with SEC rules, we also include our Former President and our Former Chief Risk Officer. The discussion and analysis also includes a description of our decision making process as calculated pursuant to SEC rules. well as the Company’s compensation philosophy, programs and the material factors affecting our decision making for 2014 compensation.

Our 2014 Named Executive Officers (“NEO”) were

William H.W. Crawford, IV

Chief Executive Officer

Eric R. Newell

Executive Vice President and Chief Financial Officer

Marino J. Santarelli

Executive Vice President and Chief Operating Officer

David C. Paulson

Executive Vice President and Head of Wholesale Banking

Mark A. Kucia

Executive Vice President and Chief Credit Officer

J. Jeffrey Sullivan

Former President

Scott C. Bechtle

Former Executive Vice President and Chief Risk Officer

For additional information regarding compensation of the Named Executive Officers, see “— Summary“Summary Compensation Table” and other compensation-related tables and disclosure below.

Executive Summary

Record YearTransformational Merger of Profits & Loan OriginationsEquals

In 2012,The prevalent theme for 2014 was the transformational merger of equals between United Financial Bancorp, Inc. and Rockville Financial, Inc. faced unprecedented internal and external challenges.their banking subsidiaries United Bank and Rockville Bank, completed on April 30, 2014. This brought together two financially strong, well-respected institutions to create a leading New England bank. The Company encountered and continued to cope with historically low interest rates, leadinghas preserved the Company to make a determination to hard freeze an employee retirement plan that had become costly to fund in that environment. Employees embraced and endured a rapid pacevalue of changethe organization as a resultunified entity and positioned itself to provide superior service to customers while enhancing long term shareholder value. This was accomplished by reporting impressive organic loan growth, materially achieving objectives related to the elimination of redundant expenses, and successfully completing the conversion to one core operating system.

Executive leadership balanced many critical decisions to produce an operating net income of $26.7 million (Non-GAAP) for 2014 compared with $16.3 million for 2013. Although total net income declined year over year by $7.4 million, it occurred against a fully public companybackdrop of maintaining a disciplined approach to asset quality, new branding and the projects needed to transition Rockville to a commercial bank model from a mutual thrift model.marketing initiatives, organization and branch restructuring, and resolute cultural integration. The Company anticipated industry regulations that required it to effectively demonstratealso completed its ability to bePost-Merger objective of conducting a regulatory best practice leader. Remarkably, Rockville triumphedcomprehensive review of the purchased loan portfolio by year-end, ensuring a consistent application of risk ratings across the portfolio.

Commercial Banking expanded in tackling these critical challengesthe Greater Springfield, Worcester and achieved a long list of accomplishments never witnessed beforeFairfield County markets, acquiring respected leaders and commercial loan teams and growing in the fourth quarter by $65 million, or 11% annualized. Leveraging its 154 year history.

One such achievement waslarger geographic opportunity, the implementation of a robustCompany reported record quarterly origination volume for residential mortgage program called “Best Mortgage” that revamped our lending process, introduced mortgage loan officers into the business model and increased customer volume. This action effectively resulted in record residential loan originationsloans of $294 million and record mortgages originated for home purchases of $95 million, making this a viable line of business for the Company even after the refinancing boom subsides. This program also resulted in strong sales to the secondary market and realization of $4.4 million of gains on sales of loans, up from $1.7$122 million in the priorfourth quarter, doubling the volume from the previous year. Deposits totaled $4.04 billion at the end of 2014 and held flat over the second half of the year amidst the Company’s conversion processes for its customer base. The Company had a noteworthy rise in fee income derived from United Northeast Financial Advisors, increasing by $810,000 to $1.8 million for the year 2014.

The Company’s Core operating performance, excluding merger and acquisition expenses, places United in the top quartile of the SNL National Thrift Index for EPS Growth. These one-time merger and acquisition expenses involve actions that position the Company expandedfor stronger, highly efficient performance in future periods. Taking a longer term perspective, United Financial Bancorp, Inc. maintains a three-year total shareholder return that is at the median of its footprint into new commercial marketspeer group data. Both leadership and improved its execution which has resultedthe workforce have demonstrated resiliency in strong commercial growth of 18%generating favorable results while managing productive change.

20


Following the Merger, the Company affirmed the compensation philosophy that was adopted in 2012. The commercial banking expansion has also materially contributedexecutive compensation program design accomplishes the objective of attracting, motivating, and retaining the talent needed to grow revenue and earnings and oversee the 13% deposit growth in 2012, including a 184% increase in municipal deposits at year-end 2012 compared to year-end 2011. Rockville achieved this success in its commercial business while its peers faced challenges of growing their respective commercial lines.

Rockville continued to make sound and prudent investments in the Company that helped it to recruit the industry’s best-of-the-best bankers, establish a full-service banking center in West Hartford for an early 2013 opening, create a first-class employee training center called “Rockville University” and implement a new employee culture that will continue to make Rockville an employer of choice.

All of these actions contributed to performance that outpaced the Company’s peers and provided significant returns to the Company’s shareholders. In fact, as reported by SNL, Rockville Financial, Inc. had total returns of 92% since its public offering in 2005, placing as the second highest performer outplatform of a total of 52 banks inlarger enterprise. Executive interests are aligned with shareholders under a robust governance structure that regularly analyzes its practices versus the conversion class of 2004-2005. In 2012, the Company returned 231% of its 2012 net incomemarket and pay relative to its shareholders via cash dividend payments and stock repurchases.performance.

The economic environment is forecasted to be a very difficult operating environment for all banks in 2013; nevertheless the Rockville Team will continue its disciplined management approach and make decisions that are in the long term best interests of its shareholders. This means adhering to the attributes that define the Company’s culture when it comes to serving its shareholders, customers and communities at-large: fostering an environment of teamwork and collaboration; staying a regulatory best practice leader; providing superior customer service; and striving for “excellence” in everything the Team does.

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A Year of Strong Performance

For the year ended December 31, 2012, the Company posted record earnings of $15.8 million, or $0.56 per diluted share, compared to $7.1 million and $0.25 per diluted share in 2011. The Company’s results can be attributed to its continued business momentum characterized by record revenues, strong commercial loan growth, record residential mortgage loan originations, and stable net interest margin, in tandem with superior asset quality. Core revenues increased by 20% to $79.9 million in 2012 from $66.6 million in 2011, comprised of growth in both net interest income and non-interest income.

Core operating expense totaled $54.0 million in 2012 and increased by $8.9 million, or 20%, from total core operating expense of $45.1 million in 2011. The primary driver in the increase in core operating expense in 2012 was the $7.3 million increase in core salaries and employee benefits expense, attributable to the infrastructure investment required as the Company transitioned to a commercial banking model from a mutual thrift model. The number of full-time equivalent employees increased to 331 at December 31, 2012 from 281 at December 31, 2011, supporting, in part, expansion in the revenue driving commercial and residential mortgage banking divisions. This infrastructure growth will provide the Company with the ability to continue strong organic growth in order to mitigate potential margin compression in 2013. Additionally, due to the hard freeze of the Company’s pension plan as of December 31, 2012, the fourth quarter of 2012 will be the last quarter of significant pension expense, having estimated an incremental $1.1 million in annual savings following the freeze.

Throughout this year and despite the general banking environment, the Company maintained focus on its core business objectives. The Company believes its compensation plans were a driving force behind its ability to remain focused and significantly increase shareholder value.

Key Results:

Record annual net income of $15.8 million in 2012, 2.2 times 2011 net income

Record annual diluted earnings per share of $0.56 in 2012 compared to $0.25 in 2011

20% annual core operating revenue growth of $13.3 million

13% growth in deposits in 2012

16% growth in non-interest-bearing deposits in the year

0.13% annualized net loan charge-offs to average loans

0.84% ROA for the year 2012

18% commercial loan growth in 2012

Record annual residential mortgage originations of $294 million

Record quarterly residential mortgage originations of $87 million

141% annual increase in residential mortgage production

30% total shareholder return year-over-year, compared to 22% SNL U.S. Thrift Index

54% dividend increase since 2011 conversion

61% of stock buyback plan completed at $11.97 per share average cost, compared to $12.09 per share average closing price

94% dividend payout ratio in 2012, including special cash dividend

Returned 231% of net income to shareholders in 2012 by way of dividends and shares repurchased.

Say on Pay Consideration

In accordance with SEC rules, the Company solicitedAt our Annual Shareholder Meeting held on April 26, 2011, our shareholders voted to approve an advisory vote on “say on pay” and “say on pay frequency” (three years) advisory votesproposals. Based on the voting results, the Board of Directors determined to hold the “say on pay” vote every three years. Our last “say on pay” vote was conducted in its proxy statement to2014 and our shareholders in 2011. Shareholders showed strong support (78%) onof the Company’s compensation practices duringpractices. Although the most recent vote and the next say on pay vote is scheduled fornon-binding, the 2014 proxy. During 2012, theCompensation Committee approved new stock ownership guidelines, which are a best practice. The Companyhas considered its result and will continue to review and evolve programs and practices to ensure alignment with emerging best practices and regulatory guidelines. Included herein is a proposal to amend the “say on pay frequency” to annually from every three years.

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Key Compensation Decisions

2012 openedThe Company adopted a new chaptercompensation philosophy and began applying it to our executive compensation program in 2012. The Company has not made any major changes to our executive compensation program since that time, however market based studies were performed following the Merger. Our executive compensation programs are designed to attract, motivate and retain talent. Our incentive programs are designed to promote pay for performance and reward executives for performance which ultimately creates long-term shareholder value. Annually, we review our compensation philosophy and our pay programs to ensure that our compensation program meets our objectives and aligns with our performance and business strategy while maintaining good corporate governance practices. For 2014, the following compensation decisions were made in consideration of the Company’s compensation program. In May, shareholders approved the Rockvillesustained strong performance and pending strategic merger of equals with United Financial Bancorp, Inc. 2012 Stock Incentive Plan as a result of Rockville’s second step conversion to full public company status. As a new fully public company and under new leadership of William H.W. Crawford, IV, the Board approved the refined compensation philosophy which supports the Company’s strategic plans and growth strategies. The program focuses on:

 

ProvidingBase salary was reviewed and increases were determined to be market competitive compensation to enable the Company to continue to attract and retain the talent needed to grow and achieve its business goals;competitive.

 

Aligning with shareholders through increased focus on stock-based compensationIn recognition of our sustained strong performance, the annual incentives were awarded between target and ownership requirements; andmaximum.

 

Enhancing the pay-for-performanceThe annual incentive program continues to use a scorecard approach through shortto measure performance in a balanced manner and long-term incentive programs that together support the strategic plans and growth strategies, while ensuring proper balance andreduce unnecessary risk mitigation.

As a result of the new compensation philosophy, several aspects of the compensation program were adjusted for 2012.

Reviewed and adjusted base salaries as appropriate, recognizing the Company’s philosophy to target salaries at market median while allowing individual salaries to reflect each executive’s experience, performance and contribution.taking.

 

Adjusted executives’ short-term incentive target from 50% to 40% and increased the maximum potential from 125% to 150% to alignWe made annual equity awards with market practice and provide better recognition of strong performance.

Increased the CEO’s short-term incentive target from 50% to 60% as part of his transition to CEO and per his Employment Agreement (Mr. Crawford’s maximum payout will remain at 125%).

Following shareholder approval of the Rockville Financial, Inc. 2012 Stock Incentive Plan, equity grants were made to certain executive officers and directors (including CEO and NEOs) to strengthen the alignment between management and shareholders’ interests. The amount of the awards was determined based on practices of other recent second step conversions with data provided by the Compensation Committee’s independent compensation consultant. Stock options were granted as a mix from the Rockville Financial, Inc. 2006 Stock Incentive Award Plan (the “2006 Plan”)of stock options, time-vesting restricted stock and the Rockville Financial, Inc. 2012 Stock Incentive Plan (the “2012 Plan”) to expendperformance shares in the 2006 Plan and to give consideration to the 2012 Plan, recently favorably approved by shareholders, and which includes provisions that are more shareholder friendly than the 2006 Plan. The awards consist of three components to meet objectives to provide a well-balanced perspective on long-term performance:performance.

Corporate Governance Highlights

The Company has maintained important corporate governance polices:

Incentive pay was directly connected to Company and individual performance.

 

Stock OptionsThe equity awards vest over a three or five year time horizon, some of which are only obtained upon meeting certain performance criteria.

 

Time-Vested Restricted StockExecutives and Board of Directors are subject to a robust stock ownership policy and are in compliance with it.

 

Performance-Vested Restricted Stock

Stock options and performance-vested restricted stock were granted to encourage a long-term view of performance that rewards for stock price appreciation and achievement of predefined performance goals. Time-vested restricted stock was granted to retain executives and Board members and to enhance direct ownership and be more closely alignedThe employment agreements with shareholders’ best interests. These grants were also seen as critical givenNamed Executive Officers, except the number of new members of the management team.

The CEO grant, while significantly larger than the NEO grants, was determined based on a benchmark study of other second step conversions. That study reflected CEO grants ranging from 14% to 25% of the shares of a newly approved stock incentive plan following a conversion. Mr. Crawford requested consideration of a 14% grant in order to provide meaningful grants to reward performance within the organization below the executive level.

To further align management and shareholder interests, the Board of Directors of the Company, approved stock ownership guidelines and holding requirements for members of the Company’s Board of Directors, Chief Executive Officer Executive Vice Presidents(“CEO”), have a one-year term and somethe Committee reviews them annually before renewal.

The Change in Control protection in the agreements has a double-trigger provision.

The Senior Vice Presidents. Executives andOfficer Incentive Compensation Plan (the “SOICP”) includes a clawback provision allowing our Board members will be required to obtain and maintain ownership (by

20


Company grant and/or through individual purchase). Until the stock ownership requirement is met, executives and Board of Directors are expected to hold 75% of net of tax shares from equity grants.

The Committee is confident that therecoup any excess compensation paid to the Named Executive Officers reflectsif the implementation of the Company’s stated compensation philosophyCompany restates its financial results upon which an award is based.

The Company has a Clawback Policy with regard to cash based incentive and our sustained performance. We believe our plans have an appropriate pay-for-performance orientation and serve to motivate the executives to act in the Company’s and shareholders’ best interests. The Committee is committed to continuing to review and to further evolve our programs and practices to align with emerging regulations and best practices.performance based stock awards.

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The following discussion provides detailed information on the compensation practices related to our Named Executive Officers for fiscal year 2012.2014. All Named Executive Officers of the Company are also Named Executive Officers of the Bank. Equity compensation for Named Executive Officers is paid by the Company while cash compensation and benefits are provided by the Bank. We summarize our philosophy and guiding principles as well as our decision process and the outcomes of that process.

Objectives of the Company’s Compensation Programs and Compensation Philosophy

Our executive compensation programs are designed to enable the Company to attract, motivate and retain talent needed for the Company’s success, reward executives for performance, align executive interests with those of our shareholders, provide competitive compensation and ensure a balanced approach that promotes sound risk management practices.

We plan to achieve these objectives through several guiding principles.

 

Principles  How we achieve the principles

Providemarket competitive compensation that enables the Company toattract and retain executives

  

•         Competitive base pay ranges are designed to target market median with flexibility to recognize individual performance, experience and contribution.

 

•         Total compensation is targeted to represent market (i.e. median) for meeting performance with variation in actual total compensation as appropriate to reflect individual and Company performanceperformance.

 

•         Market is defined using a combination of published industry survey sources (representing similar size and scope) and a proxy peer group of banks similar in size and region.

 

•         Retention of key executives is supported through the use of multi-year vesting schedules for stock.

  

A significant portion of pay will beperformance-based and support our goal todeliver shareholder value

  

•         Greater than 50% of our total compensation opportunity will be performance-basedperformance- based represented by our short and long-term incentive plans.

 

•         A portfolio of performance measures will be tied to strategic goals that are intended to deliver shareholder value.

  

Support a culture ofownership that aligns our executives’ interests with those of shareholders

  

•         Ownership guidelines and holding requirements support our culture of encouraging executives to have significant stock holdings.

  

Focus onlong-term/stock perspective and balanced approach to rewards that supportssound risk managementpractices

  

•         Long-term equity compensation supports our goal to align rewards with the time horizon of potential risk.

 

•         Our total compensation program in aggregate is designed to balance multiple perspectives including short / long term performance, cash / equity, relative / absolute performance and fixed / variable pay.

Risk Assessment

The Company adheres to a conservative and balanced approach to risk. Management and the Board conduct regular reviews of the business to ensure it remains within appropriate regulatory guidelines and practice. In addition, the Company is periodically examined by the Federal Reserve Bank of Boston, the Federal Deposit Insurance Corporation and the Connecticut Department of Banking.

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During 2012,2014, the Chief Risk Officer conducted a thorough risk assessment of the Company’s 2014 Pre-Merger and 2014 Post-Merger incentive plans and payout results for both 2012 plans and 2013plans. During 2015, the Chief Risk Officer conducted a thorough risk assessment of the Company’s 2015 proposed plans. HisThe in depth reviews were presented to the Compensation Committee, in December 2012. Basedand, based on the Chief Risk Officer’s review, the Company concluded that the compensation programs provide appropriate balance across many performance measures, have controls on the range of payouts, allow Committee discretion in making awards and ultimately do not pose material risk to the Company. Going forward, the Company will continue to monitor and evolve its programs to ensure they are aligned with emerging regulations and best practices.

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Role of the Compensation Committee, Management and the Compensation Consultant in the Executive Compensation Process

Role of the Compensation Committee

The Compensation Committee (the “Committee”) of our Board of Directors is responsible for discharging the responsibilities of the Board of Directors (the “Board”) with regard to determining compensation paid to our Named Executive Officers, as well as all other executive officers (other than payments or benefits that are generally available to all other employees of the Company). Five membersDuring 2014, prior to the Merger, the Committee was comprised of five (5) directors: Ms. Johnson, Ms. Papa and Messrs. Engelson, Chilberg and Lefurge. After the BoardMerger, the Committee was comprised of Directors sit on the Compensation Committee,four (4) directors: Ms. Johnson, Ms. Leary, Ms. Aiello and Mr. Lefurge, each of whom is an independent director under the NASDAQ Global Select Stock Market listing requirements. To fulfill its responsibilities, the Committee meets throughout the year (19(13 times in 2012)2014) and also takes action by written consent. The Chairman of the Committee reports on Committee actions at meetings of the Company’s Board.

ResponsibilitiesThe Committee operates under a written charter that establishes its responsibilities. A copy of the Compensation Committee include:

SettingCharter can be found on the overall compensation philosophy for executive officers.

EvaluatingCompany’s website at www.unitedfinancialinc.com. The Committee reviews the performancecharter annually to ensure that the scope of the Companycharter is consistent with the Committee’s expected role. Under the charter, the Committee is charged with general responsibility for the oversight and administration of our executive compensation program. Annually, the Committee reviews all compensation components and performance for the Company’s Chief Executive Officer and other executive officers, including base salary, annual incentive, long-term incentives/equity, benefits and other perquisites. In addition to reviewing competitive market values, the Committee examines the total compensation mix, pay-for-performance relationship, and alignment with our compensation philosophy. The Committee also reviews the employment agreements with named executive officers. As the Committee makes decisions regarding the Chief Executive Officer as well as determining and other executive officers’ compensation, input and data from management and outside advisors are provided for external reference and perspective. While the Chief Executive Officer makes recommendations on other executive officers’ compensation, the Committee is ultimately responsible for approving the CEO’s compensation.

Ensuring corporate goals and objectivescompensation for incentives are consistent with business and/or strategic plans approved by the Board of Directors.

Making decisions related to base salary, short-term and long-term incentives payable toall executive officers.

Reviewing the mix of total compensation to ensure all elements meet desired objectives and overall compensation philosophy.

Assessing the material risks posed by the compensation plans of the Company.

Reviewing and approving all disclosures related to The Committee meets regularly in executive compensation contained in the proxy statement.session without management.

Reviewing and making recommendations with respect to the adoption of equity-based plans for employees and directors for approval by the Board of Directors and the Company’s shareholders.

Administering all equity-based plans unless the Board of Directors determines otherwise.

Serving as the granting authority for all equity-based plans.

Advising the Board of Directors on the consistency between any equity awards proposed and the objectives of the Company’s compensation program for directors and employees.

Reviewing, making recommendations and administering all cash incentive compensation plans and programs unless the Board of Directors determines otherwise.

Role of the Compensation Consultant

Pursuant to its charter, the Committee has the sole authority to retain, terminate, obtain advice from, oversee and compensate its outside advisors, including its compensation consultant. The Committee has access to the funding it needs to solicit advisory services to meet their requirements.

For 2012,2014, the Committee retained Pearl Meyer &Meridian Compensation Partners, LLC (“PM&P”Meridian”) as its independent executive compensation consultant. None of the Company’s management team participated in the Committee’s decision to retain PM&P. PM&PMeridian reports directly to the Committee and the Committee may replace PM&PMeridian or hire additional consultants at any time. PM&PMeridian attends meetings of the Committee, as requested, and communicates with the Chair of the Committee between meetings; however, the Committee makes all decisions regarding the compensation of the Company’s executive officers.

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PM&PMeridian provides various executive compensation services to the Committee with respect to the Company’s executive officers and other key employees at the Committee’s request. The services PM&PMeridian provides include advising the Committee on the principal aspects of the executive compensation program and evolving best practices, and providing market information and analysis regarding the competitiveness of the program design and awards in relationship to its performance.

The Committee regularly reviews the services provided by its outside consultant and believes that PM&PMeridian is independent in providing specialized executive compensation consulting services. The Committee conducted a specific review of its relationship with PM&PMeridian in 2012,2014, and determined that PM&P’sMeridian’s work for the Committee did not raise any conflicts of interest, and is consistent with the guidance provided under the Dodd-Frank Act, the SEC and the NASDAQ. In making this determination, the Committee noted that during 2012:

PM&P did not provide any services to the Company or its management other than service to the Compensation Committee, and its services were limited to executive compensation consulting;

Fees from the Company were less than 1% of PM&P’s total revenue for fiscal year 2012;

PM&P maintains a Conflicts Policy which details specific policies and procedures designed to ensure independence;

None of the PM&P consultants working with the Company had any business or personal relationship with Committee members;

None of the PM&P consultants working with the Company had any business or personal relationship with executive officers of the Company; and

None of the PM&P consultants working with the Company directly own Company stock.

The Committee continues to monitor the independence of its compensation consultant on a periodic basis.

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Role of the Company’s Management

The Company’s Management provides information and input, as requested by the Compensation Committee to facilitate decisions related to executive compensation. At the start of each year, the Chief Executive Officer develops proposed Company goals and objectives that are reviewed and approved by the Board of Directors. Performance measures for the incentive plan are derived from the Board approved goals.

Members of management may be asked to provide input relating to potential changes in compensation programs for review by the Compensation Committee. The Chief Executive Officer and the Executive Vice President and Chief Human CapitalResources Officer provide the Committee and other advisors with Company information related to the Committee’s needs.

The Compensation Committee occasionally requests members of executive management to be present at Committee meetings where executive compensation and Company or individual performance are discussed and evaluated. Executives are free to provide insight, suggestions or recommendations regarding executive compensation. However,compensation; however, only Committee members are allowed to vote on decisions regarding executive compensation.

The Chief Executive Officer reviews executive performance with the Committee and makes recommendations relating to executive compensation decisions. The Committee meets with the Chief Executive Officer to discuss his own performance and compensation package, but ultimately decisions regarding his package are made solely based upon the Committee’s deliberations. Decisions regarding other executives’ performance and compensation are made by the Committee considering recommendations from the Chief Executive Officer. The Committee also relies on data and advice provided by PM&P and corporate counsel.

Inputs to Committee Decisions

Competitive Benchmarking

Understanding the competitive landscape is a key element the Committee considers in setting program targets and making compensation decisions. The Committee relies on data and advice of PM&P,Meridian, which provides benchmarking data, best practices information and general education to members of the Committee as needed throughout the year.

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Due to the timing of 2012 pay decisions, the Committee used two peer groups;

For decisions in early 2012, the Committee used a peer group analysis conducted and presented in mid-2011 for decisions on CEO and Named Executive Officers salary and incentive plan targets and award ranges.

For decisions related to the development of the CEO’s supplemental executive retirement plan (“SERP”), the Committee used an updated peer group, presented to the Committee in November 2012.

The peer group selection process was the same; industry, asset size and region. The only differences in the member banks between 2011 and 2012 banks were (1) one bank grew out of the asset range; and (2) two banks were added; Bridge Bancorp grew into the asset range and Hudson Valley became an exchange traded bank.

The Committee used the assessments conducted of the 2011 peer group and market data provided by PM&P to assess the competitiveness and appropriateness of its 2011 programs and to provide guidance for setting pay levels and making decisions for the 2012 program.

A primary data source used in setting a competitive market for the Named Executive Officers is the information publicly disclosed by a custom peer group currently consisting of twenty-two (22)twenty-five (25) publicly traded banks of similar asset size and region. TheDue to the Merger, Meridian worked with the Committee to develop a new peer group representsfor 2014 based upon the Post-Merger asset size of $5.1 billion. The revised peer group includes banks and thrifts approximately 1/2 a half to 2xtwo times the Company’s assets (~ $1.0 billion to $4.0 billion),following the Merger, and includes banks located in Connecticut, Massachusetts, Rhode Island, New Jersey and New York (excluding Manhattan).the Northeast with median assets of $4.5 billion compared to United’s assets of $5.1 billion. The peer group was approved by the Committee. The peer companies are reviewed regularlyCommittee and may change slightly depending on changes in the market place, acquisitions, divesturesserved as a reference for pay program designs and business focus of the Company.pay decisions Post-Merger. The following banks were included in the 2011 competitive assessment (for 2012 pay program decisions) conducted by PM&P:2014 peer group:

 

Alliance Financial Corporation

Berkshire Hills Bancorp, Inc.

  OceanFirst Financial Corp.Lakeland Bancorp, Inc.  
Arrow

Boston Private Financial CorporationHoldings, Inc.

  Oritani Financial Corp.National Penn Bancshares, Inc.  
Berkshire Hills

Brookline Bancorp, Inc.

NBT Bancorp, Inc.  Peapack-Gladstone

Century Bancorp, Inc.

Provident Financial CorporationServices, Inc.  
Bridge Bancorp,

Community Bank System, Inc.**

  Provident New YorkS&T Bancorp, Inc.

Customers Bancorp, Inc.

Sandy Spring Bancorp, Inc.

Dime Community Bancshares, Inc.

Sterling Bancorp  
Brookline

Eagle Bancorp, Inc.

Suffolk Bancorp
Center Bancorp, Inc.

  Sun Bancorp, Inc.  
Enterprise Bancorp,

Financial Institutions, Inc.

  Tompkins Financial Corporation  

First Commonwealth Financial Institutions, Inc.Corp.

  TrustCo Bank Corp. NY*Corp NY  
First Connecticut Bancorp, Inc.United

Flushing Financial Bancorp, Inc.

First of Long Island Corporation

  Washington Trust Bancorp, Inc.  

Hudson Valley Holding Corp.**

  WestfieldWSFS Financial Inc.Corporation  
Lakeland Bancorp, Inc.

Independent Bank Corp.

    

 

*Only in 2011 peer group; **only in 2012 peer group

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In addition to the peer group, the Consultant, Meridian, includes data from other industry surveys such as the Watson Wyatt Financial Institutions Benchmark2013 Pearl Meyer & Partners Bank Compensation Survey and the PM&P Northeast2013 McLagan Regional Banking Compensation Survey.Survey Report. Both surveys are broad-based compensation surveys with more than 100 financial institutions. The information from these competitive data sources were used to make 20122014 base salary adjustments and to confirm our incentive plan award targets and ranges as well as the CEO’s SERP design.of our incentive programs.

20122014 Executive Compensation Program Components and Decisions

The Company’s executive compensation program consists of the following components: base salary, short-term incentive, long-term equity awards and participation in our employee and executive benefit plans.

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Base Salaries.Base salaries provide compensation to the executives that reflect their roles at the Company. Base salaries are reviewed annually and adjusted as appropriate to reflect each executive’s performance, contribution, experience and pay relative to the market. Internal responsibilities and relationships which may be unique to the Company are also taken into consideration.

In making salary decisions, During 2014, base salaries for executive officers were increased to reflect increased roles and responsibilities following the Committee considers each individual’s particular responsibilities, experience,Merger, and contributions at the Company, internal relationships,new roles for Mr. Newell as Chief Financial Officer and market pay guidelines.Mr. Kucia as Chief Credit Officer.

The following summarizes the 20112013 and 20122014 salaries for the Company’s Named Executive Officers:

 

Named Executive Officer

  2011 Base Salary   2012 Base Salary   % of Increase   2013 Base Salary   2014 Base Salary* 

Mr. William H. W. Crawford, IV

  $410,000    $436,500     6  $476,000    $595,000  

Mr. John T. Lund

  $210,000    $218,000     4

Mr. Eric R. Newell

  $215,000    $300,000  

Mr. Marino J. Santarelli

  $250,000    $264,000     6  $280,000    $305,000  

Mr. Scott C. Bechtle

  $206,000    $220,000     7

Mr. David C. Paulson

   —      $275,000  

Mr. Mark A. Kucia

  $202,000    $215,000     6  $240,000    $275,000  

Mr. J. Jeffrey Sullivan

   —      $320,000  

Mr. Scott C. Bechtle

  $240,000    $250,000  

The salary increases were in part designed to bring individuals closer to the market mid-point, while allowing reflection of each executive’s experience and performance.

*2014 base salary increases were effective at Merger-close, May 1, 2014. Mr. Crawford’s base salary increased to $500,000 from $476,000 effective January 1, 2014 and increased to the above reported amount effective at the time of the Merger.

Short-Term Incentive Compensation. All executives andexecutive officers participate in the Company’s Senior Officer Incentive Compensation Plan (the “OICP”“SOICP”) which is administered by the Compensation Committee of the Board of Directors. The OICPSOICP is a short-term compensationan annual incentive plan specifically designed to encourage participants to focus on key performance goals during the fiscal year. The OICPSOICP provides participants with an opportunity to earn variable rewards that are contingent on a combination of Company and Individual performance. In 2014, as a result of the Merger, the Company administered two short-term incentive compensation plans, including one Pre-Merger, with a performance period of January 1, 2014 through April 30, 2014; and one Post-Merger, with a performance period of May 1, 2014 through December 31, 2014.

EachPre-Merger Short-Term Incentive Compensation (January 1 – April 30, 2014)

The SOICP provides that each participant has a defined incentive opportunity expressed as a percentage of base salary. The incentive opportunity reflects a target award that will be paid assuming all financial and individual goals are achieved. The target incentive opportunity is 60%50% of base salary for the Chief Executive Officer and 40% for the Executive Vice Presidents.

For 2012, the Committee (with input from the CEO) established plan goalsPresidents and awardcertain Senior Vice Presidents. These opportunities and payouts were prorated for the OICP. During 2012,four month period of the Pre-Merger plan.

As shown in the table below, four different performance goals were established for the Pre-Merger plan. Performance was measured by a combination of Company and individual goals to support a “balanced” view of performance and incorporate sound risk management features.

The 2012 goals for executives included:

 

(25%) Commercial Loan Growth25


Performance Measure

Weight

Earning Asset Growth

25

Deposit Growth

25

Relative Non-Performing Assets / Total Assets*

25

Individual Performance

25

 

*Measured compared to Performance Comparison Group

(25%) Total Funding Cost

(25%) Non-Performing Assets/Total Assets as measured by an SNL Performance Comparison Group (“asset quality”)

(25%) Individual Performance

The SNL Performance Comparison Group used for measuring performance in the OICP is used for asset quality analytical purposes only. The Performance Comparison Group is reviewed and approved by the Committee and is relevant as it includes financial institutions based in the Company’s lending footprint and subject to the same economic circumstances and conditions.Committee. The group totals 16 institutions, includingis defined as the Company,SNL U.S. Bank and includes financial institutions ranging in asset size form $375 million to $37 billion, all of which are headquartered in Connecticut, with the exception of First Niagara Bank (NY) and United Bank (Springfield, MA).Thrift Index.

Performance for each measure is defined at threshold, target and stretch levels which are designedcorrespond to result in correspondinga range of potential payouts (50%, of target incentive for threshold performance, 100% of target incentive for target performance and 150% of target for Executive Vice Presidents and 50%, 100% and 125% for CEO)stretch performance). Awards are interpolated in between these levels to provide for incremental rewards.

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In order for the OICPplan to “activate” the Company must attain 80% of the budgeted Net Income After Taxes (NIAT), ($9.0711.61 million in 2012)2014; pro-rated to $3.87 million for the four month Pre-Merger period). If this level of NIAT is not met, the OICPSOICP will not pay out any awards regardless of performance on other goals. Once 80% of the NIAT is achieved, the incentive plan will activate and payouts will be determined based on Company and individual performance as defined below.

As soon as practical, following the endUpon legal close of the fiscal year,merger, April 30, 2014, the Pre-Merger SOICP performance isperiod ended and performance was assessed against the Company goals to determine payouts related to each performance measure. The Chief Financial Officer validates and confirms the results in comparison to the OICP’s performance metrics for NIAT, Earning Asset Growth and communicates that assessmentDeposit Growth, were annualized in order to assess against full year goals. The relative measure was assessed as of the Executive Vice President Human Capital andmost recent quarter end, March 31, 2014.

As shown in the Compensation Committee Chairman throughtable below, the Chief Executive Officer.Company met stretch level for all three corporate performance measures. Individual performance is assessed for each executive to determine the award related to individual goals. The final payout is then calculated for each executive. With respect

Performance Measures Weighting  Threshold   

Target

(Annualized) 

  Stretch  Actual
(Annualized)
  

Earned

%

 

Plan Gate/Trigger

  —      —       $11.61M       —       $11.67M        
 
Plan
Activated   
  
  

Earning Asset Growth

  25  7%-9%    9.01%-11%    11.01+%    16.36%    150%  

Deposit Growth

  25  9%-11%    11.01%-13%    13.01+%    13.61%    150%  

NPA/Total Assets As Measured by SNL Performance Comparison Group

  25  
 
50th  
Percentile    
  
  
  
 
33rd  
Percentile   
  
  
  
 
25th
Percentile    
  
  
  
 
Top  
Quartile    
  
  
  150%  
   

Individual Performance

  25  Set individually based on role    
 
Varies by  
Participant  
  
  
  Varies  

The individual performance component of the SOICP is based on the Chief Executive Officer’s recommendation to the Committee of each individual’s performance. Individual performance is weighted 25% and evaluated based on a payout scale of 50% to 150%.

For 2014, all Named Executive Officers exceeded their performance goals and received near stretch level payout for the individual component. Each executive officers,has individual goals specific to his or her role that focus on the Presidentsuccessful execution of the Bank’s 2014 strategic plan.

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Despite the achievement of near stretch performance for each executive, the Chief Executive Officer recommended, and the Committee approved, a Pre-Merger incentive at target.

The following table shows the payout targets and resulting actual payout of annual cash incentives for the Pre-Merger incentive period of January 1, 2014 through April 30, 2014 and pro-rated for the partial year.

Named Executive Officer

  Pre-Merger
Incentive Actual
(pro-rated)
 

Mr. William H.W. Crawford, IV

  $82,175  

Mr. Eric R. Newell

  $28,268  

Mr. Marino J. Santarelli

  $36,814  

Mr. David C. Paulson

  $36,157  

Mr. Mark A. Kucia

  $31,555  

Mr. J. Jeffrey Sullivan(1)

   —    

Mr. Scott C. Bechtle

  $31,555  

(1)Mr. Sullivan was not a Company executive prior to the Merger.

Post-Merger Short-Term Incentive Compensation

Similar to the Pre-Merger Plan, each participant has a defined incentive opportunity expressed as a percentage of base salary. The incentive opportunity reflects a target award that will be paid assuming all financial and individual goals are achieved. The target incentive opportunity was 50% of base salary for the Chief Executive Officer and 40% for the Executive Vice President Human Capital presentPresidents and certain Senior Vice Presidents, the same as that used for the Pre-Merger Plan.

As shown the in the table below, four different performance goals were established for the Post-Merger plan period from May 1, 2014 through December 31, 2014. Performance was measured by a combination of Company and individual goals to support a “balanced” view of performance and incorporate sound risk management features. Performance against goals was annualized for the purpose of calculation of attainment.

Performance Measure

Weight

Earning Asset Growth

25

Successful Merger

25

Cost Savings

25

Individual Performance

25

Performance for each measure is defined at threshold, target and stretch levels which correspond to a range of potential payouts: 50% of target incentive award payments as determined byfor threshold performance, 100% of target incentive for target performance and 150% of target incentive for stretch performance. Awards are interpolated in between these levels to provide for incremental rewards.

There was no performance gate or trigger for the incentive formulaPost-Merger plan due to the Compensation Committee for reviewqualitative aspects of the plan and approval.the focus on a successful integration. The Committee meets in executive session to assess the Chief Executive Officer’sincentive plan payouts were determined based on Company and individual performance and determine his incentive award.as defined below.

For fiscal year 2012,the Post-Merger period in 2014, the Company met stretch performance goals for all three corporate performance measures. The following table summarizes performance achievement relative to the financial goals.

 

Performance Measure  Weighting  Threshold  Target  Stretch  Actual  Earned
%
 

Commercial Loan Growth (in millions)

   25 $99.8   $112.3   $124.7   $130.0    150

Total Funding Cost

   25  0.78  0.76  0.73  0.71  150

NPA/Total Assets As Measured by SNL Performance Comparison Group

   25  
 
50th
Percentile
  
  
  
 
33th
Percentile
  
  
  
 
25th
Percentile
  
  
  
 
Top
Quartile
  
  
  150

Individual Performance

   25  Individual Goals    Varied    Varied  
  

Total

   100                    

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Performance Measure  Weight  Threshold  Target  Stretch  Actual
(Annualized)
  Payout
Percentage
 

Earning Asset Growth

   25  3  5  7.01+  11  150

Successful Merger

   25  1-2    3    4-5    3    100

Cost Savings

   25  1-2    3    4-5    4    150

A qualitative factor rating of one (1) represents a partially achieved goal or expectation; a qualitative factor rating of two (2) represents slightly below goal; a qualitative factor rating of three (3) represents meeting goal or expectation; a qualitative factor of four (4) represents exceeding the goal or expectation; and a qualitative factor of five (5) represents significantly exceeding the goal or expectation.

The individual performance component of the OICPSOICP is based on the Chief Executive Officer’s recommendation to the Compensation Committee of each individual’s performance. Individual performance is evaluated based on a payout scale of 50% to 150%.

For 2012,2014, all Named Executive Officers exceeded their performance goals and received near stretch level payout for the individual component. Some of the individual items that were considered include:

 

Mr. Santarelli’s leadership was instrumentalNewell oversaw the investment portfolio and ensured systems were in place for appropriate risk-adjusted growth, achieving a growth in earning assets that exceeded expectations. He contributed to the successful completionoversight of numerous projectssystems integration, policies and procedures which focusedwere critical for an effective merger. Mr. Newell led the strategic planning process with the executive management team and the Board, ensuring success on revenue enhancement,key initiatives and prioritized selection of investments for future growth and expense reduction and improved efficiencies.savings.

 

Mr. Lund successfully presidedSantarelli led a Bank Merger team which integrated both organizations and converted over half of the customer base with above average industry success. He restructured the branch system and optimized locations to achieve substantial cost savings. He championed a home equity program that doubled originations over the re-designprevious year and improved efficienciesdeveloped a bank investment services program recognized as having the third best growth in the Company’s ALCO process, budgeting and accounts payable system, as well ascountry for the Treasury function. Additionally Mr. Lund was a key contributor to the developmentfirst half of the Company’s secondary market program.2014.

 

Mr. Bechtle was integral toPaulson joined the successful completionBank in March, 2014 and quickly led expansion into the Fairfield, Connecticut market, including the recruitment of various audits and examinations processes after assistinga highly respected commercial banking team. Later in the buildingyear, Mr. Paulson laid the groundwork for further acquisition and expansion of outstanding loan teams in other markets, and introduced and conducted numerous cultural, strategic and tactical changes to facilitate the success of the merger.

Mr. Kucia oversaw a credit platform supporting strong growth in the commercial portfolio that was both prudent and profitable. This included a full review of the credit platform and effectively handling new complexities and associated remediation efforts as the Bank doubled in size with the merger. Mr. Kucia’s valuable leadership has ensured a disciplined approach to asset quality.

Mr. Bechtle’s management of the Company’s risk management infrastructure.has led to continued strong results in audit and regulatory findings. Additionally, his direct involvement in the loan approval and credit administration processes allowed the Company to attain some of the industry’s highest asset quality metrics while exceeding loan production goals.

Mr. Kucia, in accordance with the Company’s strategic goals and objectives, met all lending related production goals (loans, deposits and fee generation). Also the outstanding asset quality enjoyed by the Company is a result of Mr. Kucia’s strong credit and oversight skills.metrics.

The earnedfollowing table shows the payout opportunity and the actual payout of annual cash incentives for the Pre-Merger incentive award will be paid between Januaryperiod of April 1, 20132014 through December 31, 2014 and March 15, 2013, except as otherwise provided, with respect to participants inpro-rated for the OICP who are Named Executive Officers. Apartial year.

 

2628


Named Executive Officer

  Post-Merger
Incentive Target
   Post-Merger
Incentive Actual
   % of Target Incentive 

Mr. William H.W. Crawford, IV

  $199,712    $262,121     131

Mr. Eric R. Newell

  $80,556    $114,965     143

Mr. Marino J. Santarelli

  $81,899    $107,491     131

Mr. David C. Paulson

  $73,843    $113,843     154

Mr. Mark A. Kucia

  $73,843    $105,384     143

Mr. J. Jeffrey Sullivan(1)

   —       —       —    

Mr. Scott C. Bechtle(2)

  $67,130    $100,000     149

participant who has retired, died or become disabled

(1)Mr. Sullivan was not a Company executive during the performance period.
(2)Mr. Bechtle’s earned incentive award in 2014 was based on the change-of-control provision of his employment agreement.

The following table shows the 2012 plantotal payout opportunity and the total actual payout of annual cash incentives for the full year in accordance with the provisions of the “Eligibility” section of the plan will be eligible for a pro-rated payment of the entire earned incentive award based on goals actually achieved in 2012, but prorated as of the date of termination based on the number of days of employment in 2012 divided by 365, and such pro-rated award shall be paid between January 1, 20132014 through December 31, 2014, including actual Pre-Merger and March 15, 2013. Payment of earned incentive awards will be made in cash except that the Company may, at its sole discretion, make payment of earned incentive awards to Named Executive Officers in the form of shares of Company stock, the value of which shall equal the amount to be paid, as determined by the Compensation Committee of the Board.

As a result, the following incentive awards were allocated to the Named Executive Officers based on the actual performance of the Company and the individuals during fiscal year 2012:Post-Merger payouts.

 

Named Executive Officer

  2012 Incentive Target   2012 Incentive Actual   % of Target Incentive   2014 Incentive Target   2014 Incentive Actual   % of Target Incentive 

Mr. William H.W. Crawford, IV

  $261,900    $327,375     125  $281,887    $344,296     122

Mr. John T. Lund

  $87,200    $130,800     150

Mr. Eric R. Newell

  $108,824    $143,233     132

Mr. Marino J. Santarelli

  $105,600    $158,400     150  $118,713    $144,305     122

Mr. Scott C. Bechtle

  $88,000    $132,000     150

Mr. David C. Paulson(1)

  $110,000    $150,000     136

Mr. Mark A. Kucia

  $86,000    $129,000     150  $105,398    $136,939     130

Mr. J. Jeffrey Sullivan(2)

   —       —       —    

Mr. Scott C. Bechtle

  $98,685    $131,555     133

(1)Mr. Paulson’s earned incentive award in 2014 was based on the terms of his employment offer which required a minimum $150,000 payout for the plan year.
(2)Mr. Sullivan was not a participant in the Pre-Merger plan, and Mr. Sullivan’s resignation was effective June 2, 2014.

Long-Term Equity Awards.The Compensation Committee and management believe that equity compensation is a critical component of a total direct compensation package which enhances the Company’s ability to recruit, retain and reward key talents needed for the Company’s success, align executives’ interests with those of our shareholders, encourage executives’ best performance and provide additional incentives for long-term sustained performance. Our shareholdersshareholder approved the Rockville Financial, Inc. 2012 Stock Incentive Plan at the 2012 annual shareholder meeting, which allowsstock incentive plans allow us to execute our philosophy by providing equity compensation to our key executives and Board members.

The Compensation Committee approved equity awards to members of the executive management team, including the CEO, NEOs and Directors, pursuant to the Company’s shareholder-approved 2006 Stock Incentive Award Plan (the “2006 Plan”) and the 2012 Stock Incentive Plan (the “2012 Plan.”) In determining the form of equity to be granted, the Committee considered many factors including the ability to drive corporate performance, retention, executive officers’ current stock ownership level, tax and accounting treatment and the impact on dilution. Awards were made within regulatory limits for converting banksin consideration of market practice and in linealignment with the Company’s compensation philosophy, and market practicesphilosophy. The 2014 equity grants were comprised of other recent conversion banks. The Committee also considered executive officers’ current ownership level, performance and ability to contribute to the success of the Company when determining the allocation of equity awards.

    2012 Equity Awards 
Named Executive Officer  The 2012
Plan
Time-
Vested
Restricted
Stock
(# of
Shares)
   The 2012
Plan
Performance-
Vested
Restricted
Stock
(# of Shares)
   The 2006
Plan
Stock
Options
(# of
Shares)
   

The 2012
Plan

Stock
Options
(# of Shares)

   Total Value
($000)
 

Mr. William H.W. Crawford, IV

   71,861     23,945     62,750     178,788    $1,405  

Mr. John T. Lund

   15,212     5,071     19,292     54,352    $331  

Mr. Marino J. Santarelli

   17,783     5,928     22,552     63,536    $387  

MrScott C. Bechtle

   17,783     5,928     22,552     63,536    $387  

Mr. Mark A. Kucia

   17,783     5,928     22,552     63,536    $387  

Our long-term incentive program consists of25% stock options, time-vested25% time-vesting restricted stock and performance-vested50% performance-vesting restricted stock (“performance shares”).

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    2014 Equity Awards 
Named Executive Officer  Target
LTI as %
of Base
  

The 2012
Plan
Time-
Vested
Restricted
Stock

(# of
Shares)

   

The 2012
Plan
Performance-
Vested
Restricted
Stock

(# of

Shares)

   The
2006
Plan
Stock
Options
(# of
Shares)
   The 2012
Plan
Stock
Options
(# of
Shares)
   Total
Value at
Target
($000)
 

Mr. William H.W. Crawford, IV

   70  11,340     15,167     6,702     20,107    $417  

Mr. Eric R. Newell

   30  2,731     5,462     4,783     14,349    $150  

Mr. Marino J. Santarelli

   45  2,499     4,998     4,376     13,129    $137  

Mr. David C. Paulson(1)

   n/a    17,019     5,673     0     0    $300  

Mr. Mark A. Kucia

   30  1,820     3,641     3,188     9,566    $100  

Mr. Jeffry Sullivan(2)

   0  0     0     0     0     0  

Mr. Scott C. Bechtle

   30  1,820     3,641     3,188     9,566    $100  

(1)Mr. Paulson received new hire grants on May 12, 2014; 17,019 shares of time-vesting restricted stock and 5,673 shares of performance-vesting restricted stock. He was not eligible for the annual LTI award granted on June 20, 2014.
(2)Mr. Sullivan’s resignation was effective prior to the annual LTI awards granted on June 20, 2014.

Stock options from the 2006 Plan have an incremental vesting schedule which vests 20% upon the first anniversary of the grant withdate, and the remaining 80% vested 20% annually over the next four

27


years. Stock options and time-vested restricted stock granted from the 2012 Plan have an incremental vesting schedule which vests 25%33.33% upon the first anniversary of the grant date with the remaining 75% vested 25%33.33% annually over the next threetwo years.

Performance-vested restricted stock havehas a three-year performance period (July 1, 20122014 – June 30, 2015)2017) with performance criteria reflecting two key financial measures with equal weighting: Non-Performing Loans over total loansthree-year change in Core Earnings Per Share (EPS) and Net Loan Charge-Offs over average total loans and leases.three-year Total Shareholder Return (TSR). These goals were selected to reflect our focus of sound risk management strategiesand shareholder value enhancement over the long-term horizon. Performance will be evaluated after three years based on the Company’s performance relative to the SNL U.S. Bank and Thrift index.index with assets between $3.5 billion and $10 billion.

 

3 year Performance

Relative to SNL U.S. Bank

& Thrift Index

  Payout Schedule

175stthquartileto 100thpercentile

  125%150% of target

250ndthquartileto 74thpercentile

  100% of target

335rdthquartileto 49thpercentile

  50% of target

4Below the 35thquartilepercentile

  0% of target

Each measure’s performance is determined independently. A payout percentage will be interpolated between 50% and 100% and between 100% and 150% dependent on the reported percentile to peers. However, if either metric is negative, the total payout will be capped at Target. The performance-based restricted stock will be vested as soon as practical after performance results are known and the Committee reviews and approves the results.

Equity Compensation Grant Practices

The Committee is solely responsible for the development of the schedule of equity awards made to our Chief Executive Officer and the other Named Executive Officers. As a general matter, the Committee’s process is independent of any consideration of the timing of the release of material non-public information, including with respect to the determination of grant dates or stock option exercise prices. Similarly, we

30


have never timed the release of material non-public information to affect the value of executive compensation. In general, the release of such information reflects long-established timetables for the disclosure of material non-public information such as earnings reports or, with respect to other events reportable under federal securities laws, the applicable requirements of such laws with respect to timing of disclosure. The Committee’s decisions are reviewed by the full Board of Directors.

In accordance with our equity plan, the Committee may grant stock options only at or above fair market value, which is defined as the closing sales price of our common stock on the NASDAQ on the date of grant.

Stock Ownership Guidelines:

In February 2012, the Compensation Committee implemented new stock ownership guidelines to encourage select senior executive officers and directors to hold meaningful ownership in Company stock and align their interests with those of our shareholders.

Our new policy requires executivessenior executive officers and Board members to obtain and maintain beneficial ownership (by Company grant and through individual purchase) of the following amount of shares in Rockville Financial, Inc.the Company’s common stock.

 

Position / Level

  

Requirement

Directors

  

Board Member

  3 times Board retainer

NamedSenior Executive Officers

  

Chief Executive Officer

  3 times base salary

Executive Vice Presidents

  2 times base salary

Senior Vice Presidents

  1 times base salary

Beneficially owned shares include shares that the individual owns or has voting power including the power to vote, or to direct the voting; and/or, investment power including the power to dispose or to direct the disposition. Shares owned by an individual in the Company’s benefit plans (e.g. 401(k), ESOP) would with ESOP component) count toward the stock ownership requirement. In addition, unvested time-vesting restricted stock count toward the stock ownership requirements since those shares convey voting rights during the vesting period.

Until the requirement is met, executivessenior executive officers and Directors are expected to hold 75% of net of tax shares from equity grants.

Hedging Policy and Pledging Restrictions:

Our policy prohibits our senior executive officers and Directors from engaging in transactions having the effect of hedging the unvested portion of any equity or equity-linked award. In addition, the Company does not permit shares pledged for senior executive officers and Directors to be applied toward stock ownership guidelines, and limits the number of shares they may pledge.

Clawback Policy

In 2015, the Company adopted a Clawback Policy (the “Policy”), triggered by the restatement of the financial statements. The Policy covers performance-based incentive and equity compensation awarded when vesting, settlement or payment is contingent up on the achievement of a specified performance metric. Excess compensation, determined to be the amount of compensation that would not have been paid to the Executive Officer if the financial statements were correct at the time of the payment, would be subject to recoupment at the discretion of the Committee.

Chief Executive Officer Compensation Review

In recognition of his strong performance and market data provided by PM&P,Meridian following the Merger in which the Company increased its total assets to $5.1 billion from $2.4 billion; and changed its peer group to one of banks with assets of $3 billion to $7 billion from one of assets of $1 billion to $4

31


billion, the Committee increased the CEO’s Post-Merger base salary by 6%19% to $436,500.$595,000. His short-term incentive target increasedwas decreased to 50% from 60% of base salary (consistent with his employment agreementin the prior year, and promotion to CEO in 2011) while his cap stayed atincreased to 150% from 125% of the target.target in the prior year. Mr. Crawford’s 20122014 incentive, determined under the OICP,Pre-Merger SOICP, was $327,375$82,175. Despite the achievement of near stretch performance, the Committee approved a Pre-Merger incentive paid to Mr. Crawford at target. Mr. Crawford’s incentive, determined under the Post-Merger SOICP, was $262,121, or approximately 125%131% of his target incentive. He received equity grants with a fair market value of $1.4 million$416,487 comprised of $352,121$52,546 of stock options and $1,053,007$363,941 of restricted stock (75%(43% time-vesting and 25%57% performance-vesting) as part of the Company’s second step conversion grants..

28


Also pursuant to his employment agreement, the Committee granted a defined contribution supplemental executive retirement plan (“SERP”) in December 2012. The new SERP provides Mr. Crawford with annual contributions on the last day of the plan year equal to 30% of base salary, less all employer contributions (other than matching contributions) to his accounts under the 401(k) Plan, the Employee Stock Ownership Plan (which merged with the 401(k) Plan effective January 1, 2014 and for 2014 contributions) and the Supplemental Savings and Retirement Plan. Mr. Crawford has the opportunity to receive an additional annual contribution equal to 15% of base salary if certain performance criteria are achieved during overlapping three-year performance periods, as established within ninety (90) days of the beginning of each performance period by the Committee.

Benefits and Supplemental Executive Retirement Plans

In addition to the compensation paid to executive officers as described above, executive officers received, along with and on the same terms as other employees, certain benefits pursuant to the 401(k) Plan, the Employee Stock Ownership Plan (which merged into the Retirement401(k) Plan of Rockville Bank (the “Pension Plan”)effective January 1, 2014), and life insurance. All of the Named Executive Officers are also eligible to participate in the Supplemental Savings and Retirement Plan. This Plan provides restorative payments to select highly compensated executives designated by the Compensation Committee who are prevented by federal law from receiving the full benefits contemplated by the Retirement Plan, 401(k) Plan and Employee Stock Ownership Plan.

The Company offered a tax-qualified defined benefit Pension Plan for the benefit of employees hired prior to January 1, 2005. During 2012, the Committee reviewed the Bank’s retirement program, benefitbenefits trends and best practices, and made a strategic decision to hard freeze the Pension Plan effective as of December 31, 2012. For a transition, the Committee approved to provide transitional credit for current Pension Plan participants to the 401(k) Plan equal to an additional 3% of compensation for each year beginning in 20132014 and through 2017. None of the current Named Executive Officers are participants in this plan.

Mr. Kucia and Mr. Lund participateparticipates in an individual Supplemental Executive Retirement AgreementsAgreement designed to provide themhim with retirement benefits outside of the Retirement Plan of Rockville Bank which was closed to new entrants as of January 1, 2005. The Committee believes this nonqualified supplementalsupplement retirement benefit is both appropriate and common for executives based on information reviewed by the Committee at the time the plans were established.Plan was established in 2010.

In December 2012, the Company adopted a defined contribution supplemental executive retirement plan (“SERP”) for Mr. Crawford to fulfill the promise made in Mr. Crawford’s 2011 employment agreement, as well as to encourage retention and provide an additional opportunity for long-term performance-based compensation. The SERP provides Mr. Crawford annual contributions on the last day of the plan year equal to 30% of base salary, less all employer contributions (other than matching contributions) to his accounts under the 401(k) Plan the Employee Stock Ownership Plan and the Supplemental Savings and Retirement Plan. Mr. Crawford has the opportunity to receive an additional annual contribution equal to 15% of base salary if certain performance criteria are achieved during overlapping three-year performance periods, as establishestablished within ninety (90) days of the beginning of each performance period by the Committee. The initial performance periods ending December 31, 2013 and December 31, 2014, are based on one-year and two-year periods, respectively, each commencing on January 1, 2013. The first full three-year performance period is the period commencing on January 1, 2013 and ending on December 31, 2015.

In addition to the contributions described above, the SERP account balance is credited with interest each month based on the monthly Moody’s Seasoned AAAAaa Corporate Bond Yield. At termination of employment, Mr. Crawford receives his vested account balance, payable as a lump sum on the first day of the month following the one year anniversary of his separation from service. If termination occurs for reasons other than death, disability, involuntary termination following a change in control, or for cause, the

32


percentage of the account that is vested is as follows: 0% prior to December 31, 2015; 50% if still employed at December 31, 2015, and an additional 10% at each subsequent anniversary until fully vested, if Mr. Crawford remains continuously employed by the Company through December 31, 2020. If termination occurs due to death or disability, the account balance becomes 100% vested and the balance is distributed as a lump sum payment on the first of the month following separation from service. Upon involuntary termination (or termination for good reason) within two years following a change in control, the account balance becomes 100% vested and an additional amount is added to the account equal to the product of A and B, where:

 

A is an amount equal to 30% of annual salary, less all employer contributions (other than matching contributions) to Mr. Crawford’s accounts under the 401(k) Plan, the Employee Stock Ownership Plan and the Supplemental Savings and Retirement Plan for the respective plan year, and;

 

B is the lesser of 10 or the number of years between Mr. Crawford’s age at separation from service and age 65.

29


All benefits under the SERP are forfeited if Mr. Crawford is terminated for cause. As the SERP is an unfunded, non-qualified plan, Mr. Crawford has the status of an unsecured general creditor of the Company with respect to the benefits accrued under the SERP.

Mr. Crawford, Mr. Santarelli, Mr. Paulson and Mr. Bechtle received automobile allowances, and Mr. Crawford, Mr. Lund,Newell, Mr. Santarelli, Mr. BechtlePaulson, Mr. Kucia, Mr. Sullivan and Mr. KuciaBechtle received club dues reimbursement, the value of which is disclosed in the notes to the Summary Compensation Table.

Death Benefits for Certain Officers

The Bank maintains an unfunded plan for a select group of officers whose lives have been insured by Bank Owned Life Insurance (“BOLI”) pursuant to which $25,000 is payable to a beneficiary designated by the officer upon the death of the officer while actively employed by the Bank or after attaining eligible to retirement age. The benefits of the Plan are primarily for the Bank but each policy provides that a $25,000 portion of the proceeds upon death be paid to the officer’s designated beneficiary.

Executive Employment/Severance Agreements

The Company has entered into employment agreements with all of its Named Executive Officers and certain non-executive officers. The employment agreements include change of control provisions. All of these contracts reflect a term of one year, with the exception of Mr. Crawford, CEO, who has a three year contract resulting from hiscontract. On November 14, 2013, the Committee entered into a new hireemployment agreement with Mr. Crawford with an initial term of three years, effective as of April 30, 2014. The term of the agreement is until April 30, 2017, subject to possible annual extensions. The agreement provides for an initial base salary of $500,000 per year. The agreement also provides that Mr. Crawford will be eligible to earn annual incentive compensation with an incentive target in 2011.amounts determined by the Company’s Compensation Committee. Mr. Crawford will be eligible to participate in employee and executive benefit plans and programs of the Bank.

The employment agreements include change of control provisions. The Company believes these agreements are necessary to preserve a stable executive team during the transition process related to a change of control, and appropriate to provide a level of financial security so that executives will remain focused on shareholders’ and customers’ interests in connection with the change of control.

Named Executive Officers are not entitled to those officers importantreceive severance benefits due simply to a change of control. The change of control provisions provide for the successpayment of severance benefits upon a “double trigger” event. A “double trigger” event used in this context means that an executive is only entitled to change of control benefits if the Company inexecutive’s employment is terminated without cause or the eventexecutive resigns for good reason within two years of a change of control. All of

If the contracts providing change of control protection contain “double trigger” provisions which only provide severancepayments and benefits to the officers in the event that their employment is terminatedpayable in connection with a change of control would be subject to the excise tax under Section 4999 of the Internal Revenue Code (the “Code”), the Named Executive Officer will receive either (a) the payment reduced to the maximum amount that will not result in control.

For contracts effective January 1, 2012,any excise tax under Code Section 4999 being triggered; or (b) the Committee approvedfull payment, in which case, the enhanced and clarified definitions of “cause” and “good reason.”Named Executive Officer will be responsible for paying the excise tax, but only if this alternative leaves the Named Executive Officer in a better after-tax position.

The following provisions constitute “cause”:

 

Behaviors materially damaging to the Company

Failure to perform duties of the job

Any material breach of the agreements

Attempts for personal gain at the expense of the Company

Engaging in dishonesty, immoral acts and acts that constitute a felony

The following provisions constitute “good reason”:33

Material reduction in compensation and benefits

Failure to pay any material portion of the executive’s compensation

Failure to continue any material portion of the executive’s compensation or benefits which were provided prior to a change in control without an equitable arrangement

Failure of the Company to obtain a satisfactory employment agreement from the successor following a change in control

Failure to perform any material obligation under the agreement


Tax, Accounting and Other Considerations

The Compensation Committee considers the effects of tax and accounting treatments when it determines executive compensation. For example, in 1993, the Internal Revenue Code was amended to

30


disallow publicly traded companies from receiving a tax deduction on compensation paid to executive officers in excess of $1 million (section 162(m) of the Code), unless, among other things, the compensation meets the requirements for performance-based compensation. In structuring Rockville’s compensation programs and in determining executive compensation, the Committee takes into consideration the deductibility limit for compensation. The Committee reserves the right, however, in the exercise of its business judgment, to establish appropriate compensation levels for executive officers that may exceed the limits on tax deductibility established under Section 162(m) of the Code. The employment contracts for the Named Executive Officers were amended in 2012 and contain change of control limitation provisions such that if the change of control payment to any of the executive officers exceeds the limit on such payments pursuant to Internal Revenue Code Section 280G. If a change of control payment exceeds the limit for deductible payments under Section 280G of the paymentInternal Revenue Code, the higher of (i) safe harbor amounts; or (ii) full payments after tax (i.e., “best of after-tax benefit”) will be reduced so it does not exceed that limit.paid to the Named Executive Officer. For the full payments, the Named Executive Officer is responsible for paying the excise tax. The Compensation Committee takes into consideration the accounting effects of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 718 in determining vesting periods for stock options and restricted stock awards under the Rockville Financial, Inc. 2006 Stock Incentive Award Plan and the Rockville Financial, Inc. 2012 Stock Incentive Plan.

COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION

The Compensation Committee has reviewed and discussed with Management the “Compensation Discussion and Analysis” disclosure appearing above in this Proxy Statement. Based on this review and discussion, the Compensation Committee recommended to the Board of Directors of the Company that the Compensation Discussion and Analysis be included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012,2014, which incorporates by reference the disclosure contained in this Proxy Statement.

March 5, 2013xx, 2015

The Compensation Committee:

Kristen A. Johnson, Chairman

DavidCarol A. Engelson,Leary, Vice Chairman

C. Perry ChilbergPaula A. Aiello

Raymond H. Lefurge, Jr.

Rosemarie Novello Papa

31


COMPENSATION OF EXECUTIVE OFFICERS AND TRANSACTIONS WITH MANAGEMENT

Summary Compensation Table

The following table sets forth certain information with respect to the compensation of our principal executive officer, principal financial officer, and three most highly compensated executive officers.officers, and our former Chief Financial Officer. Each individual listed in the table below may be referred to as a Named Executive Officer or NEO or Executive Officer. The material terms of each officer’s employment agreement are described above on page 30. No options or other equity-based awards were repriced or otherwise modified during 20122014 for the Named Executive Officers.

 

Name and Principal Position (a) Year
(b)
  Salary(4)
(c)$
  Bonus(5)
(d)$
  Stock(6)
Awards
(e)$
  

Option
Awards
(7)

(f)$

  

Non-Equity
Incentive Plan
Compensation
(8)

(g)$

  Change in
Pension Value
and
Nonqualified
Deferred
Compensation
Earnings(9)
(h)$
  

All Other
Compensation
(10)

(i)$

  

Total

(j)$

 

William H. W. Crawford, IV(1)
President and Chief Executive Officer

  

 

2012

2011

  

  

  

 

429,006

399,231

  

  

  

 

0

300,000

  

  

  

 

1,053,007

64,990

  

  

  

 

352,121

184,996

  

  

  

 

327,375

205,000

  

  

  

 

0

0

  

  

  

 

178,715

169,921

  

  

  

 

2,340,224

1,324,138

  

  

 

John T Lund
Executive Vice President, Chief Financial Officer
and Treasurer

  

 

 

2012

2011

2010

  

  

  

  

 

 

216,069

194,746

158,693

  

  

  

  

 

 

0

0

0

  

  

  

  

 

 

222,910

29,393

16,875

  

  

  

  

 

 

108,257

54,598

20,930

  

  

  

  

 

 

130,800

90,000

66,654

  

  

  

  

 

 

64,950

56,570

56,112

  

  

  

  

 

 

53,109

41,811

29,314

  

  

  

  

 

 

796,095

467,118

348,578

  

  

  

 

Marino J. Santarelli(2)
Executive Vice President, Chief Operating Officer

  

 

2012

2011

  

  

  

 

260,169

105,769

  

  

  

 

0

0

  

  

  

 

260,584

43,744

  

  

  

 

126,549

81,472

  

  

  

 

158,400

100,000

  

  

  

 

0

0

  

  

  

 

76,674

24,093

  

  

  

 

882,376

355,078

  

  

 

Scott C. Bechtle(3)
Executive Vice President, Chief Risk Officer

  2012    216,077    0    260,584    126,549    132,000    0    70,032    805,242  

 

Mark A. Kucia
Executive Vice President, Head of Commercial Banking

  

 

 

2012

2011

2010

  

  

  

  

 

 

211,327

191,977

158,807

  

  

  

  

 

 

0

0

0

  

  

  

  

 

 

260,584

28,272

22,500

  

  

  

  

 

 

126,549

52,517

15,561

  

  

  

  

 

 

129,000

92,800

66,654

  

  

  

  

 

 

37,493

53,062

181,504

  

  

  

  

 

 

58,086

43,487

28,277

  

  

  

  

 

 

823,039

462,115

473,303

  

  

  

34


Name and Principal Position (a)Year
(b)
Salary(2)
(c)$
Bonus(3)
(d)$
Stock(4)
Awards
(e)$

Option
Awards (5)

(f)$

Non-

Equity
Incentive

Plan
Compensation (6)

(g)$

Change in
Pension

Value

and
Nonqualified
Deferred
Compensation
Earnings(7)
(h)$

All Other
Compensation (8)

(i)$

Total

(j)$

William H. W. Crawford, IV
President and Chief Executive Officer



2014
2013
2012




565,865
439,925
429,006



0

0

0




363,941
118,985
1,053,007




52,546
118,999
352,121




344,296
346,290
327,375



0

0

0




TBD
305,077
178,715




TBD
1,329,276
2,340,224


Eric R. Newell(1)
Executive Vice President, Chief Financial Officer and Treasurer



2014
2013
2012




273,039
201,396
0



0

0

0




112,490
32,224
0




37,499
32,247
0




143,233
125,130

0




0

0

0




34,641
48,245

0





600,902
439,242

0



Marino J. Santarelli
Executive Vice President, Chief Operating Officer



2014
2013
2012




297,904
264,831
260,169



0

0

0




102,934
48,999
260,584




34,310
48,998
126,549




144,305
162,960
158,400



0

0

0




38,941
69,752
76,674




618,394
595,540
882,376


David C. Paulson(1)
Executive Vice President, Head of Wholesale Banking



2014
2013
2012




235,865
0

0





150,000
0

0





299,988
0

0




0

0

0




150,000
0

0




0

0

0



31,721

0

0



867,574

0

0


Mark A. Kucia
Executive Vice President, Chief Credit Officer



2014
2013
2012




264,480
223,135
211,327



0

0

0




74,980
35,987
260,584




24,998
36,000
126,549




136,939
139,680
129,000



69,256

(41,690

37,493




32,096
69,042
58,086




602,749
462,154
823,039


J. Jeffrey Sullivan(1)
Former President



2014
2013
2012




37,502
0

0




0

0

0


0 0 0

0

0

0



0

0

0



0

0

0



1,206,218

0

0




1,243,720
0

0



Scott C. Bechtle(1)
Executive Vice President, Chief Risk Officer



2014
2013
2012




247,654
244,846
216,077



0

0

0




74,980
35,987
260,584




24,998
36,000
126,549




131,555
139,680
132,000



0

0

0




1,564,539
62,989
70,032




2,043,726
519,502
805,242


 

(1)Mr. CrawfordPaulson was hired on January 2, 2011 as a Senior Executive Vice PresidentMarch 2014 and became President and Chiefa Named Executive Officer on April 26, 2011.
(2)in 2014; Mr. SantarelliKucia became a Named Executive Officer in 2014 and was hiredreported as Executive Vicean NEO in 2012. Mr. Sullivan was President and Chief Operating Officer on July 18, 2011.
(3)until June 2, 2014. Mr. Bechtle was hired as Executive Vice President and Chief Risk Officer on June 1, 2011 and became a Named Executive Officer in 2012.until December 30, 2014.
(4)(2)Reflects actual base salary amounts paid for fiscal years 2010-2012.2012-2014. Annualized base salaries as of December 31, 20122014 were as follows: Mr. Crawford: $436,500;$595,000; Mr. Lund: $218,000;Newell: $300,000; Mr. Santarelli: $264,000;$305,000; Mr. Paulson: $275,000; Mr. Kucia: $275,000; Mr. Sullivan: $320,000; and Mr. Bechtle: $220,000; and Mr. Kucia: $215,000$250,000.
(5)(3)The amount shown represents new hire bonus for Mr. Crawford.Paulson in 2014.
(6)(4)These amounts represent the aggregate grant date fair value of restricted stock awards made pursuant to Rockville’s 2012 Stock Incentive Plan determined in accordance with FASB Topic 718. All time-vesting restricted stock awards vest 25% upon grant and 25% per year overwith the next three years.first vesting occurring on the one-year anniversary of the grant. All performance-vesting restricted stock awards vest 100% upon the three year anniversary of the grant if such defined performance metrics are met. The value attributed to performance shares in the Summary Compensation table above (25%(50% of the total value of the Stock Awards) reflects target performance. The maximum value assuming performance at stretch level would be: Mr. Crawford, $1,118,820,$468,063, Mr. Lund, $236,842,Newell, $149,984, Mr. Santarelli, $276,870,$137,245, Mr. Bechtle, $276,870,Paulson, $337,487, Mr. Kucia, $276,870.$99,975; and Mr. Bechtle: $99,975. Assumptions made in valuing these awards are disclosed in footnote 14, “Share-Based Compensation Plans” to Rockville’sUnited’s Consolidated Financial Statements for the year ended December 31, 20122014 as contained in Rockville’sUnited’s Annual Report on Form 10-K incorporated herein by reference.

 

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(7)(5)These amounts represent the aggregate grant date fair value of stock option awards made pursuant to both Rockville Financial, Inc. 2006 Stock Incentive Award Plan and Rockville Financial Inc. 2012 Stock Incentive Plan determined in accordance with FASB Topic 718. The stock options awarded in December 2006 vested on December 13, 2008. All other stock option awards granted from the 2006 Stock Incentive Award Plan prior to 2014 vest 20% upon grant and 20% per year over the next four years. Stock option awards granted from the 2012 Stock Incentive Plan prior to 2014 vest 25% upon grant and 25% per year over the next three years. Grants beginning in 2014 begin vesting on the first anniversary of the grant and vest 20% per year if granted from the Rockville Financial Inc., 2006 Stock Incentive Award Plan and 33.33% per year if granted from the Rockville Financial Inc., 2012 Stock Incentive Plan. Assumptions made in valuing these awards are disclosed in footnote 14, “Share-Based Compensation Plans” to Rockville’s Consolidated Financial Statements for the year ended December 31, 20122014 as contained in Rockville’sUnited’s Annual Report on Form 10-K incorporated herein by reference.
(8)(6)Reflects the annual bonus award earned for fiscal year 20122014 under the Pre-Merger Rockville Bank Senior Officer Incentive Compensation (OICP)Plan and the Post-Merger United Bank Senior Officer Incentive Compensation Plan.
(9)(7)Reflects the changechanges in the present value of the life annuity from fiscal year end 20112013 to 20122014 for both the qualified and non-qualified defined benefit retirement plans (The Retirement Plan of Rockville Bank, SERP, Supplemental Savings and Retirement Plan, and Supplementalplan (Supplemental Executive Retirement Agreement). Change in Pension Value as follows:

 

Name

  Retirement Plan
(Pension)
   Supplemental
Executive
Retirement Plan
   Supplemental
Savings &
Retirement Plan
   Supplemental
Executive Ret.
Agreement
 Total   Retirement Plan
(Pension)
   Supplemental
Executive
Retirement Plan
   Supplemental
Savings &
Retirement Plan
   Supplemental
Executive Ret.
Agreement
   Total 
      (SERP)       (Flat $ Benefit)         (SERP)       (Flat $ Benefit)     

William H.W. Crawford, IV

  $0    $0    $0    $0   $0    $0    $0    $0    $0    $0  

John T. Lund

         64,950(a)   64,950  

Eric R. Newell

           0  

Marino J. Santarelli

          0             0  

David C. Paulson

           0  

Mark A. Kucia

         69,256     69,256  

J. Jeffrey Sullivan

           0  

Scott C. Bechtle

          0             0  

Mark A. Kucia

         37,493    37,493  

 

(a)Participant is not yet vested in the benefit under this plan.

(10)(8)All Other Compensation includes 401(k) matching contributions, automobile allowance, ESOP contributions, Company Contribution to Supplemental Savings and Retirement Plan, present value of SERP, Group term life insurance premium, and dividends on unvested restricted stock awards.awards and Mr. Sullivan’s severance payments made based on his resignation agreement and Mr. Bechtle’s severance payments made based on the change-of-control provisions of his employment agreement.

The following table shows individual amounts for fiscal year 20122014 included in the “All Other Compensation” column.

All Other Compensation - Break Out

 

Name and Principal
Position
  401(k)(a)   Employee
Stock
Ownership
Plan(b)
  Bank
Owned
Life
Insurance(c)
   

Group
Term

Life
Insurance(d)

   Dividend
Paid(e)
   Automobile
Allowance
   Supplemental
Savings and
Retirement
Plan
   Supplemental
Executive
Retirement
Plan(f)
   Other(g)   Total   401(k)(a)   

Employee

Stock

Ownership

Plan(b)

   

Bank

Owned

Life

Insurance(c)

   

Group

Term

Life

Insurance (d)

   Dividend
Paid(e)
   Automobile
Allowance
   Supplemental
Savings and
Retirement
Plan
   Supplemental
Executive
Retirement
Plan(f)
   Other(g)   Total 

William H.W. Crawford, IV

  $15,000    $21,579   $235    $384    $29,063    $9,000    $44,274    $57,597    $1,583    $178,715    $19,500     n/a    $316    $360    $12,199    $9,000    $10,690    $TBD    $9,574     TBD  

John T. Lund

   15,000     21,579    235     302     7,804     0     6,392     0     1,797     53,109  

Eric R. Newell

   19,500     n/a     316     216     3,035     0     653     0     10,921     34,641  

Marino J. Santarelli

   11,460     21,579    235     1,584     8,436     6,000     12,278     0     15,102     76,674     19,500     n/a     316     3,564     3,485     6,000     2,795     0     3,281     38,941  

David C. Paulson

   6,975     n/a     0     717     5,531     9,692     0     0     8,806     31,721  

Mark A. Kucia

   19,500     n/a     316     696     2,991     0     180     0     8,413     32,096  

J. Jeffrey Sullivan

   0     n/a     0     80     0     1,385     0     0     1,204,753     1,206,218  

Scott C. Bechtle

   14,478     21,579    235     1,584     6,743     6,000     4,358     0     15,055     70,032     19,207     n/a     316     3,089     2,812     6,000     0     0     1,533,115     1,564,539  

Mark A. Kucia

   13,800     21,579    235     454     9,097     0     5,176     0     7,745     58,086  

 

(a)Rockville’sUnited’s matching and Safe Harbor contributions to the qualified defined contribution 401(k) retirement plan.
(b)Rockville’s contributions allocated underThe ESOP merged into the Employee Stock OwnershipRockville Bank 401(k) Plan, during 2012. As of December 31, 2012, the executives were vested in the following portions of their total shares: 100%effective January 1, 2014, and for Mr. Kucia; 60% for Mr. Lund; 20% for Mr. Crawford and Mr. Bechtle; and 0% for Mr. Santarelli.2014 contributions.
(c)The cost of a $25,000 death benefit through Bank Owned Life Insurance. Each Executive hasMr. Crawford, Mr. Newell, Mr. Santarelli, Mr. Kucia and Mr. Bechtle have two such benefits.
(d)Group term life insurance premiums for coverage in excess of $50,000.
(e)Dividends paid on unvested, time-vesting restricted stock and dividend equivalents accrued on unvested, performance-vesting restricted stock.
(f)The present value of Mr. Crawford’s SERP based on his current compensation structure.
(g)Messrs. Crawford, Newell, Santarelli, Paulson and Kucia’s other compensation includes club dues reimbursement. Mr. Crawford’s Other CompensationSullivan’s other compensation includes club dues reimbursements and payments made based on his resignation agreement.

36


Mr. Bechtle’s other compensation includes club dues reimbursement and payments made based on the change-of-control provisions of $1,583. Mr. Lund’s Other Compensation includes club dues reimbursement of $1,797. Mr. Santarelli’s Other Compensation includes club dues reimbursement of $1,606 and $13,496 of relocation expenses. Mr. Bechtle’s Other Compensation includes club dues reimbursement of $2,985 and $12,070 of relocation expenses. Mr. Kucia’s Other Compensation includes club dues reimbursement of $7,745.his employment agreement.

33


Grants of Plan-Based Awards

The following table presents information on plan-based compensation in 20122014 for the Named Executive Officers. The restricted stock awards were granted under the Rockville Financial, Inc. 2012 Stock Incentive Plan (the “2012 Plan”) and the stock option awards were granted under the Rockville Financial, Inc. 2006 Stock Incentive Award Plan (the “2006 Plan”) and the 2012 Plan. See the CD&A “Incentive Compensation” and “Stock Awards” section for detailed descriptions.

 

Name(a)

       

 

Estimated Possible Payouts Under
Non-Equity Incentive Plan
Awards(2)

   Estimated Possible Payouts
Under Equity Incentive Plan
Awards(3)
   

All
Other
Stock
Awards:
Number
of
Shares
of Stock
or Units
(#)

(i)

   

All Other
Stock
Awards:
Number of
Securities
Underlying
Options
(#)

(j)

   

Exercise
or Base
Price of
Option
Awards(4)
($/Sh)

(k)

   

Grant

Date Fair
Value of
Stock

and

Option
Awards(5)
($/Sh)

(l)

   

Grant

Date(1)

(b)

   

 

Estimated Possible Payouts Under

Non-Equity Incentive Plan

Awards(2)

   Estimated Possible Payouts Under
Equity Incentive Plan Awards(3)
   

All Other

Stock

Awards:

Number
of

Shares of

Stock or

Units (#)

(i)

   

All Other

Stock

Awards:

Number
of

Securities

Under-

lying

Options

(#)

(j)

   

Exercise

or Base

Price of

Option

Awards(4)

($/Sh)

(k)

   

Grant

Date Fair

Value of

Stock
and

Option

Awards(5)

($/Sh)

(l)

 
  (c)   (d)   (e)   (f)   (g)   (h)      (c)   (d)   (e)   (f)   (g)   (h)   

Grant

Date(1)
(b)

   Threshold
($)
   

Target

($)

   Maximum
($)
   Threshold
(#)
   Target
(#)
   Maximum
(#)
      Threshold
($)
   

Target

($)

   Maximum
($)
   

Threshold

(#)

   Target
(#)
   Maximum
(#)
   

William H.W. Crawford, IV

   6/21/12    $130,950    $261,900    $327,375     11,977     23,954     29,942     71,861     239,538     10.99     1,405,128     6/20/14    $140,943    $281,887    $422,830     7,584     15,167     22,751     26,507     26,809     13.73     416,487  

John T. Lund

   6/21/12     43,600     87,200     130,800     2,535     5,071     6,338     15,212     73,644     10.99     331,167  

Eric R. Newell

   6/20/14     54,412     108,824     163,236     2,731     5,462     8,193     8,193     19,132     13.73     149,989  

Marino J. Santarelli

   6/21/12     52,800     105,600     158,400     2,964     5,928     7,410     17,783     86,088     10.99     387,133     6/20/14     59,357     118,713     178,070     2,499     4,998     7,497     7,497     17,505     13.73     137,244  

David C. Paulson

   5/12/14     55,000     110,000     165,000     2,837     5,673     8,510     22,692     0     0     299,988  

Mark A. Kucia

   6/20/14     52,699     105,398     158,097     1,821     3,641     5,462     5,461     12,754     13.73     99,977  

Jeffrey Sullivan

   n/a     —       —       —       0     0     0     0     0     0     0  

Scott C. Bechtle

   6/21/12     44,000     88,000     132,000     2,964     5,928     7,410     17,783     86,088     10.99     387,133     6/20/14     49,342     98,685     148,028     1,821     3,641     5,462     5,461     12,754     13.73     99,977  

Mark A. Kucia

   6/21/12     43,000     86,000     129,000     2,964     5,928     7,410     17,783     86,088     10.99     387,133  

 

(1)This column shows the date of the grant for all equity awards granted in 2012.2014.
(2)For Mr. Crawford, the Annual Incentive Compensation Plan target represents 60%50% of base salary. All other executives’ Annual Incentive Compensation Plan targets as a percentage of base salary are 40% of base salary. Incentive opportunity ranges from 50% to 150% of targettarget. Threshold, Target and Maximum represent a combined total of incentive opportunity for NEOsthe Pre-Merger SOICP and 50% to 125% for Mr. Crawford pursuant to his employment contract.the Post-Merger SOICP.
(3)Performance will be evaluated after three years basedFor awards granted on the Company’s performance relative to the SNL U.S. Bank and Thrift Index, andMay 12, 2014, vesting will be baseddetermined by the Company’s relative performance of loan growth median annualized percentage. The payout ranges from 50% to 150% of target. For awards granted on June 20, 2014, vesting will be determined by the following: 1st quartile: 125%Company’s relative performance of target; 2nd quartile: 100% of target; 3rd quartile:three-year Core Earnings Per Share and Total Shareholder Return. The payout ranges from 50% of target; and 4th quartile: 0%to 150% of target.
(4)Exercise price represents the closing price on the grant date.
(5)For stock option awards column (l) reflects the grant date FASB Topic 718 fair value for awards disclosed in column (j); the Black-Scholes value is $1.47($1.96 per share for the grant dated June 21, 2012.20, 2014). Assumptions made in valuing these awards are disclosed in footnote 14, “Share-Based Compensation” to Rockville’s Consolidated Financial Statements for the year ended December 31, 20122014 as contained in Rockville’sUnited’s Annual Report on Form 10-K incorporated herein by reference.

Stock Incentive Award Plans

The Board of Directors and shareholders of the Company approved the Rockville Financial, Inc. 2012 Stock Incentive Plan (the “2012 Plan”) effective as of the Company’s 2012 annual meeting in May 2012. The Company presented the 2012 Plan, which includes provisions that are more shareholder friendly than the 2006 Plan, for approval following the second-step conversion. The awards from the 2012 Plan consist of several components to meet objectives to provide a well-balanced perspective on long-term performance. Additionally, the 2006 Plan approved by the Board of Directors and shareholders of the Company no longer had an appropriate level of awards remaining to fulfill the Company’s long-term incentive strategy. The Board of Directors believes that the ability to grant stock options, stock awards, stock appreciation rights and/or performance awards is an important component of the Company’s overall compensation philosophy. In order to attract, retain and motivate qualified employees and Board members, the Board believes the Company must offer market competitive, long-term compensation opportunities. The Board believes that the availability of stock-based benefits is a key component in this strategy and that this strategy also furthers the objective of aligning the interests of Management and Company shareholders.

 

3437


The following table sets forth certain information with respect to the value of all unexercised options and unvested stock awards previously awarded to each Named Executive Officer as of December 31, 2012.2014.

Outstanding Equity Awards at Fiscal Year-End

 

  

Option Awards

   

Stock Awards

   

Option Awards

   

Stock Awards

 
Name  Grant
Date
 

Number of
Securities
Underlying
Unexercised
Options
Exercisable
Options

(#)

   Number of
Securities
Underlying
Unexercised
Options(2)
Unexercisable
(#)
   

Equity
Incentive
Plan
Awards
Number of
Securities
Underlying
Unearned
Options

(#)

   Option
Exercise
Price
($)
   Option
Expiration
Date
   

Number
of
Shares
or Units
of Stock
That
Have
Not
Vested

(3)

(#)

   

Market
Value

of

Shares
or

Units

of

Stock
That
Have

Not
Vested(4)
($)

   

Equity
Incentive
Plan
Awards:
Number
of
Unearned
Shares,
Units

or

Other
Rights
That
Have

Not
Vested
(#)

   Equity
Incentive
Plan
Market
or Payout
Value of
Unearned
Shares,
Units or
Other
Rights
That
Have Not
Vested
($)
   Grant
Date
  Number of
Securities
Underlying
Unexercised
Options
Exercisable
Options
(#)
   Number of
Securities
Underlying
Unexercised
Options(2)
Unexercisable
(#)
   Equity
Incentive
Plan
Awards
Number of
Securities
Underlying
Unearned
Options
(#)
   

Option
Exercise
Price

($)

   Option
Expiration
Date
   Number
of
Shares
or Units
of Stock
That
Have
Not
Vested(3)
(#)
   Market
Value of
Shares or
Units of
Stock
That
Have Not
Vested(4)
($)
   Equity
Incentive
Plan
Awards:
Number
of
Unearned
Shares,
Units or
Other
Rights
That
Have Not
Vested
(#)
   Equity
Incentive
Plan
Market
or Payout
Value of
Unearned
Shares,
Units or
Other
Rights
That
Have Not
Vested
($)
 

William H.W. Crawford, IV

  6/21/12(1)   56,747     182,791     —       10.99     6/21/22     53,896     695,258     23,954     309,007     6/20/14(1)   —       26,809     —       13.73     6/20/24     11,340     162,842     15,167     217,798  
3/15/11  17,874     26,811     —       10.54     3/15/21     3,700     47,730     —       —      6/21/13    65,384     —       —       13.25     6/21/23     —       —       —       —    

John T. Lund

  6/21/12(1)  17,446     56,198        10.99     6/21/22     11,409     147,176     5,071     65,416  
9/2/11  6,276     9,413     —       9.50     9/2/21     1,856     23,942     —       —    
11/15/10  4,186     2,790     —       7.42     11/15/20     910     11,739     —       —    
3/16/09  7,583     1,896     —       6.09     3/16/19     455     5,870     —       —    

William H.W. Crawford, IV

 6/21/12    239,538     —       —       10.99     6/21/22     —       —       —       —    
 3/15/11    44,685     —       —       10.54     3/15/21     —       —       —       —    
   6/20/14(1)   —       19,132     —       13.73     6/20/24     2,731     39,217     5,462     78,434  
 6/21/13    17,718     —       —       13.25     6/21/23     —       —       —       —    

Eric R. Newell

 6/21/12    68,748     —       —       10.99     6/21/22     —       —       —       —    
  6/21/12(1)  20,394     65,694     —       10.99     6/21/22     13,337     172,047     5,928     76,471     6/20/14(1)   —       17,505     —       13.73     6/20/24     2,499     35,886     4,998     71,771  
8/5/11  8,904     13,356     —       9.71     8/5/21     2,703     34,869     —       —      6/21/13    26,922     —       —       13.25     6/21/23     —       —       —       —    

Scott C. Bechtle

  6/21/12(1)  20,394     65,694     —       10.99     6/21/22     13,337     172,047     5,928     76,471  
6/1/11  4,838     7,258     —       9.41     6/1/21     —       —       —       —    

Marino J. Santarelli

 6/21/12    86,088     —       —       10.99     6/21/22     —       —       —       —    
 8/5/11    22,260     —           9.71     8/5/21     —       —       —       —    
   5/12/14(1)   —       —       —       —       —       12,764     183,295     5,673     81,464  
  6/21/12(1)  20,394     65,694     —       10.99     6/21/22     13,337     172,047     5,928     76,471     6/20/14(1)   —       12,754     —       13.73     6/20/24     1,820     26,135     3,641     52,285  

Mark A. Kucia

9/2/11  6,036     9,055     —       9.50     9/2/21     1,786     23,039     —       —      6/21/13    19,780     —       —       13.25     6/21/23     —       —       —       —    
11/15/10  3,112     2,075     —       7.42     11/15/20     1,213     15,648     —       —      6/21/12    86,088     —       —       10.99     6/21/22     —       —       —       —    
3/16/09  7,583     1,896     —       6.09     3/16/19     607     7,830     —       —      9/2/11    15,091     —       —       9.50     9/2/21     —       —       —       —    
2/20/08  9,858     —       —       7.90     2/20/18     —       —       —       —      11/15/10    5,187     —       —       7.42     11/15/20     —       —       —       —    
 3/16/09    9,479     —       —       6.09     3/16/19     —       —       —       —    

Mark A. Kucia

 2/20/08    8,858     —       —       7.90     2/20/18     —       —       —       —    
   —      —       —       —       —       —       —       —       —       —    
   6/20/14(1)   12,754     —       —       13.73     6/20/24     —       —       —       —    
 6/21/13    19,780     —       —       13.25     6/21/23     —       —       —       —    
 6/21/12    86,088     —       —       10.99     6/21/22     —       —       —       —    
 6/1/11    12,096     —       —       9.71     8/5/21     —       —       —       —    

 

(1)Options granted in 2014 from the 2006 Stock Incentive Award Plan and the 2012 Stock Incentive Plan, respectively, are as follows: Mr. Crawford, 62,75020,107 and 178,788;6,702; Mr. Lund, 19,292Newell, 14,349 and 54,352;4,783; Mr. Santarelli, 22,55213,129 and 63,536;4,376; Mr. Kucia, 9,566 and 3,188; and Mr. Bechtle, 22,5529,566 and 63,536;3,188. Mr. Paulson and Mr. Kucia, 22,552 and 63,536.Sullivan did not receive options awards in 2014.
(2)Mr. Paulson became a Named Executive Officer in 2014.
(3)All options granted prior to the Merger vested 20% on the grant date and vested 20% annually thereafter if they were granted from Rockville’s 2006 Stock Incentive Award Plan; vested 25% on the grant date and vested 25% annually thereafter if they were granted from Rockville’s 2012 Stock Incentive Plan, with any remaining unvested options granted vesting on an accelerated basis at the time of the Merger. The options granted on December 13, 2006 vested on December 13, 2008, the options granted on August 14, 2007 vested 20% on each August 14, 2007-2011, the options granted on each FebruaryJune 20, 2008 vested 20% on each February 20, 2008-2012, the options granted on March 16, 2009 vest 20% on each March 16, 2009-2013, the options granted on November 15, 2010 vest 20% on each November 15, 2010-2014, the options granted on March 15, 2011 vest 20% on March 15, 2011 and 20% on each January 3, 2012-2015, the options granted on August 5, 2011 vest 20% on August 5, 2011 and 20% on each July 18, 2012-2015, the options granted on September 2, 2011 vest 20% on each September 2, 2011-2015, the options granted on June 21, 20122014 from Rockville’s 2006 Stock Incentive Award Plan vest 20% on each June 21, 2012-2016,20, 2015-2019, and the options granted from Rockville’s 2012 Stock Incentive Plan on June 21,20, 2014 vest 33.33% on each June 20, 2015-2017.
(4)All time-vesting restricted stock awards granted prior to the Merger vested 20% on the grant date and vested 20% annually thereafter if they were granted from Rockville’s 2006 Stock Incentive Award Plan; vested 25% on the grant date and vested 25% annually thereafter if they were granted from Rockville’s 2012 Stock Incentive Plan, with any remaining unvested time-vesting restricted stock granted vesting on an accelerated basis at the time of the Merger. The time-vesting restricted stock awarded on May 12, 2014 vest 25% on each June 21, 2012-2015.
(3)Vesting dates forMay 12, 2014-2017 and the stock awards are as follows: Thetime-vesting restricted stock awarded on FebruaryJune 20, 2008, 20%2014 vest 33.33% on each FebruaryJune 20, 2008-2012, the restricted stock awarded on March 16, 2009, 20% on each March 16, 2009-2013, the restricted stock on November 15, 2010, 20% on each November 15, 2010-2014 , the restricted stock granted on March 15, 2011 vest 20% on March 15, 2011 and 20% on each January 3, 2012-2015, the restricted stock granted on August 5, 2011 vest 20% on August 5, 2011 and 20% on each July 18, 2012-2015, the restricted stock granted on September 2, 2011 vest 20% on each September 2, 2011-2015, the time-vesting2015-2017. The performance-vesting restricted stock granted on June 21, 2012 vest 25% on each June 21, 2012-2015, and the performance-vesting restricted stock granted on June 21, 20122013 scheduled to vest 100% on June 30, 2015.2015 and June 30, 2016, respectively, vested at Target at the time of the Merger. The performance-vesting restricted stock awarded on May 12, 2014 vest 100% on June 30, 2017, and the performance-vesting restricted stock awarded on June 20, 2014 vest 100% on June 30, 2017.
(4)(5)Market values are based on the closing market price of the Company’s stock of $12.90$14.36 on December 31, 2012.2014.

 

3538


The following information sets forth the stock awards vested and stock options exercised by the Named Executive Officers during the fiscal year ended December 31, 2012.2014.

Option Exercises and Stock Vested

 

  Option Awards   Stock Awards   Option Awards   Stock Awards 

Name

  Number
of
Shares
Acquired
on
Exercise
   Value
Realized
Upon
Exercise
($)
   Number
of

Shares
Acquired
on
Vesting
   Value
Realized
on
Vesting
($)(1)
   Number
of

Shares
Acquired
on
Exercise
   Value
Realized
Upon
Exercise
($)
   Number
of

Shares
Acquired
on
Vesting
   Value
Realized
on
Vesting
($)(1)
 

William H.W. Crawford, IV

   0     0     19,198     210,382     0     0     70,207     925,095  

John T. Lund

   0     0     5,332     60,269  

Eric R. Newell

   0     0     13,962     183,740  

Marino J. Santarelli

   0     0     5,346     59,608     0     0     19,857     261,318  

David C. Paulson

   0     0     4,255     56,251  

Mark A. Kucia

   0     0     18,992     249,935  

J. Jeffrey Sullivan

   162,209     845,459     0     0  

Scott C. Bechtle

   0     0     4,445     48,851     0     0     22,656     306,017  

Mark A. Kucia

   0     0     7,466     84,665  

 

(1)Value reflects the vested shares at the relevant vesting price on January 3, 20122014 of $10.50,$14.11, February 21, 201211, 2014 of $11.50, March 16, 2012$13.09, April 30, 2014 of $11.62, June 21, 2012$13.16, May 12, 2014 of $10.99, July 18, 2012$13.22 and December 30, 2014 of $11.94, August 31, 2012 of $11.99 and November 15, 2012 of $12.67.$14.60.

Supplemental Executive Retirement Plan

The Bank has adopted the Supplemental Executive Retirement Plan (the “SERP”) for the purpose of providing designated executives of RockvilleUnited Bank with supplemental retirement benefits. Mr. Crawford has been designated by the Committee for participation in the SERP which provides him with a retirement benefit equal to 30% of base salary, less all employer contributions (other than matching contributions) to his accounts under the 401(k) Plan, the Employee Stock Ownership Plan and the Supplemental Savings and Retirement Plan. Mr. Crawford has the opportunity to receive an additional annual contribution equal to 15% of base salary if certain performance criteria are achieved during overlapping three-year performance periods, as established within ninety (90) days of the beginning of each performance period by the Committee.

All other participants in the SERP are entitled to their benefit upon the later of termination of employment or attainment of age 60, subject to the completion of five years of service with the Bank. Benefits under the SERP are payable in monthly installments in the form of a straight life annuity unless the participant has made a lump sum election in accordance with the terms of the SERP. A participant may elect to receive all, none or a specified portion of his or her retirement benefit as a lump sum determined on the basis of the interest rate and mortality assumptions used to calculate benefits under the tax-qualified Retirement Plan. Any such lump sum election must be made prior to the date of the participant’s commencement of participation in the SERP; otherwise, such an election becomes effective only if the participant remains in the employment of the Bank for the full 12 calendar months immediately following the date of the election (except in the case of death or disability) and payment of such lump sum pursuant to such election is not made until the fifth anniversary of the date on which payment would otherwise have been made.

In the event that a participant who has made an election dies or becomes disabled during the 12 calendar month period following the election date, the requirement to remain employed during such 12-month period will be deemed to have been satisfied. Benefits under the SERP are not payable if barred by any action of the Connecticut Banking Commissioner or the Federal Deposit Insurance Corporation. Moreover, benefits are not payable if the participant is in breach of any non-competition or other restrictive covenant agreement in such participant’s employment or change in control agreement or if the participant has been discharged from employment for cause. In the event of a participant’s death, the participant’s spouse will receive a benefit equal to 100% of the benefit that would have been provided from the SERP had the participant retired on the date of death and commenced benefits on the later of the date the participant would have attained age 60 or the date of the participant’s death; provided, however, that in calculating the participant’s benefit, the offset attributable to the participant’s tax-qualified Retirement Plan shall be determined on the basis of the 50% survivor annuity payable to the spouse under the tax-qualified Retirement Plan.

39


Upon the death of a participant after benefits commence under the SERP, 100% of the benefit that the participant was receiving at the time of death will be continued to his or her spouse; provided, however, that if a participant previously received a lump sum payment of all or a portion of the participant’s retirement benefit, such death benefit to the participant’s surviving spouse shall be proportionately reduced.

36


In the event of the death of a participant who has one or more children who are dependents for federal income tax purposes and whose spouse dies while such child is a dependent, 100% of the benefit payable to the participant or the spouse, as the case may be, shall be continued to such dependent(s) for so long as any child remains a dependent. In 2008, the Compensation Committee amended the SERP to comply with new Section 409A of the Internal Revenue Code and its regulations.

Supplemental Executive Retirement Agreement

RockvilleUnited Bank established a Supplemental Executive Retirement AgreementsAgreement (the “Agreements”“Agreement”) for Mr. Kucia and Mr. Lundin 2010 to supplement theirhis individual retirement benefits from other sources. After five years of service or termination before five years of service due to disability, eachthe executive is entitled to receive a retirement benefit for twenty years in monthly installment payments. If a termination occurs after five years of service but before the age of 60, the retirement benefit is reduced 5% per year for the period that precedes the individual’s attainment of age 65. However, if a termination occurs before age 60 due to disability, without cause or for good reason, the full benefit will be provided later, upon the individual’s attainment of age 60. Termination upon change in control or death will provide full benefit regardless of a service period immediately following the event.

Pension Benefits

The following table provides information regarding the retirement benefits for the NEOs under the Company’s tax-qualified defined benefit and supplemental executive retirement plans, namely the Supplemental Executive Retirement Plan and Supplemental Executive Retirement Agreement, and Supplemental Savings and Retirement Plan, described below.

 

Name

  Number of Years
Credited Service
   Present Value of
Accumulated
Benefit($)
   Payments During
Last Fiscal
Year($)
   Number of Years
Credited Service
   Present Value of
Accumulated
Benefit($)
   Payments During
Last Fiscal
Year($)
 

William H. W. Crawford, IV(1)

   2.00     57,597     0     4.00     TBD     0  

Supplemental Executive Retirement Plan (Defined Contribution)

            

John T. Lund(1)

      

Eric R. Newell(2)

   0     0     0  

Marino J. Santarelli(2)

   0     0     0  

David C. Paulson(2)

   0     0     0  

Mark. A. Kucia

      

Supplemental Executive Retirement Agreement (Flat $ Benefit)

   4.08     177,632     0     9.17     299,625     0  

Marino J. Santarelli

   1.50     0     0  

Scott C. Bechtle

   1.50     0     0  

Mark A. Kucia

      

Supplemental Executive Retirement Agreement (Flat $ Benefit)

   7.17     272,059     0  

J. Jeffrey Sullivan(2)

   0     0     0  

Scott C. Bechtle(2)

   0     0     0  

 

(1)Participant is not yet vested in the benefit under this plan.
(2)Currently not participating in such a plan described above.

Non-Qualified Deferred Compensation

RockvilleUnited maintains one non-qualified defined contribution plan, the Supplemental Savings and Retirement Plan.

The Bank adopted the Supplemental Savings and Retirement Plan, which was implemented in connection with the reorganization and offering that took place in 2005. This plan provides restorative payments to executives designated by the Compensation Committee who are prevented by federal law from receiving the full benefits contemplated by the tax-qualified Retirement Plan, 401(k) Plan and Employee Stock Ownership Plan.Plan (merged in to the 401(k) Plan effective January 1, 2014 and for the 2014 contributions). All NEOs participate in the plan. The restorative payments under the plan consist of cash payments in lieu of shares that cannot be allocated to the participant’s account under the Employee Stock

40


Ownership Plan, deferrals and payments for employer safe harbor or matching contributions that cannot be made under the 401(k) Plan due to the legal limitations imposed on the 401(k) Plan and payments for benefits that cannot be paid under the Retirement Plan due to legal limitations imposed on benefits payable from the Retirement Plan.

37


The following table provides information in respect to each defined contribution or other plan that provides for the deferral of compensation on a basis that is not tax qualified.

 

Name

  Executive
Contributions
in Last FY($)
   Registrant
Contributions
in Last
FY($)(1)
   Aggregate
Earnings
in

Last
FY($)(2)
   Aggregate
Withdrawals /
Distributions($)
   Aggregate
Balance
at

Last
FYE($)
   Executive
Contributions
in Last FY($)
   Registrant
Contributions
in Last
FY($)(1)
   Aggregate
Earnings
in

Last
FY($)(2)
 Aggregate
Withdrawals /
Distributions($)
   Aggregate
Balance
at

Last
FYE($)
 

William H.W. Crawford, IV

   0     44,274     6,635     0     105,046     0     10,690     (3,727  0     185,688  

John T. Lund

   0     6,392     461     0     9,321  

Eric R. Newell

   0     652     219    0     10,994  

Marino J. Santarelli

   0     12,278     0     0     12,278     0     2,795     468    0     34,636  

David C. Paulson(3)

   0     0     0    0     0  

Mark A. Kucia

   0     180     274    0     15,712  

J. Jeffrey Sullivan(3)

   0     0     0    0     0  

Scott C. Bechtle

   0     4,358     0     0     4,358     0     0     (534  0     18,311  

Mark A. Kucia

   0     5,176     33     0     5,616  

 

(1)20122014 deferred compensation match on current year deferrals.
(2)20122014 deferred compensation interest accrued on all deferrals.
(3)Mr. Paulson and Mr. Sullivan were not participants in the Plan in 2014.

Potential Payments Upon Termination or Change in Control

The Bank and the Company have employment agreements with Named Executive Officers Messrs. Crawford, Lund,Newell, Santarelli, BechtlePaulson, and Kucia. All of these contracts, with the exception of the contract with Mr. Crawford, CEO, reflect a term of one year ending on December 31, 2012 and may be extended on an annual basis upon written notice provided by the Compensation Committee. The contracts with the NEOs have been extended to December 31, 2013.2015. The contract with Mr. Crawford, CEO had an initial three year term ending on December 31, 2013April 30, 2017, which may be extended annually upon written notice from the Compensation Committee.

Under specified circumstances including change in control, termination for reasons other than cause or resignation due to good reason, the employment agreements provide for certain additional payments. However, the Named Executive Officer’s employment may be terminated for cause without incurring any continuing obligations.

Payments and Benefits upon any Termination

Executive officers are entitled to receive earned and unpaid compensation upon any termination of employment. In addition, all unvested stock awards and all unvested stock options held by the Named Executive Officers will be forfeited upon termination of employment, except death, disability, retirement and change-in-control.

Death

The Named Executive Officer’s survivor is entitled to receive earned and unpaid compensation upon the death of the Named Executive Officer and all unvested stock awards and all unvested stock options held by the Named Executive Officer granted from the 2006 Plan will be accelerated and the beneficiary can exercise the options at any time within five years from the termination (but not after the expiration date of the option). All unvested stock awards and all unvested stock options held by the Named Executive Officer granted from the 2012 Plan will be accelerated and the beneficiary can exercise the options at any time within one year from the termination (but not after the expiration date of the option). In addition, the health care benefit will be provided for the maximum COBRA continuation period available to Executive’s surviving spouse and eligible dependents, if any.

Disability

The Named Executive Officer is entitled to receive earned and unpaid compensation upon the separation from service due to disability of the Named Executive Officer and all unvested stock awards and all unvested stock options held by the Named Executive Officer granted from the 2006 Plan will be

41


accelerated and the beneficiary can exercise the options at any time within five years from the termination (but not after the expiration date of the option). All unvested stock awards and all unvested stock options held by the Named Executive Officer granted from the 2012 Plan will be accelerated and the beneficiary can exercise the options at any time within one year from the termination (but not after the expiration date of the option). In addition, the health care benefit, long-term disability and group-term life insurance will be continued until the Named Executive Officer is eligible for Medicare.

38


Retirement

The Named Executive Officer is entitled to receive earned and unpaid compensation upon the retirement of the Named Executive Officer. The vesting of all unvested stock awards and all unvested stock options held by the Named Executive Officer granted pursuant to the 2006 Plan will be accelerated and the Named Executive Officer can exercise the options at any time within five years from the termination (but not after the expiration date of the option). The vesting of all unvested stock awards and all unvested stock options held by the Named Executive Officer granted pursuant to the 2012 Plan will vest according to the original grant agreement terms; the 2012 Plan does not have an accelerated vesting upon retirement provision. However, with regard to the stock options granted pursuant to the 2012 Plan all such options shall be exercisable on the earlier of the exercise period or prior to three years from the date of vesting with respect to unvested stock options, or within three years of retirement for vested stock options. In addition, the health care benefit will be continued until the Named Executive Officer is eligible for Medicare.

Voluntary Termination or Involuntary Termination for Cause

A Named Executive Officer who voluntarily terminates employment or whose employment is terminated by the Company due to cause is not entitled to any additional benefits.

Involuntary Termination Without Cause or Voluntary Termination for Good Reason

Involuntary Termination Without Cause, the CEO is entitled to:

 

ThreeA lump sum payment equal to three times the sum of the Base Salaryhis base salary immediately prior to termination if his employment is terminated before the third-year anniversary of the effective date of his employment agreement (two and one-half times if his employment is terminated between the third-year anniversary and fourth-year anniversary and two and one-quarter times if his employment is terminated at or following the fourth-year anniversary), plus an amount equal to thehis annual target cash incentive compensation payable in cash for the year of termination.

 

A lump sum payment equal to the pro-rata portion of the CEO’s annual target cash incentive compensation for the year of termination.

 

A lump sum payment equal on an after-tax basis to the present value of the total cost of the medical coverage under the Health Plan that would have been incurred by both the Named Executive Officer and the Company for the period of one and a half years.

 

A lump sum payment equal on an after-tax basis to the cost of continuing coverage under the Company’s group long-term disability and group life insurance policies for three years.

 

Acceleration of unvested stock options and restricted stock.

Voluntary Termination for Good Reason, the CEO is entitled to:

 

Two and one-quarterA lump sum payment equal to three times the sum of the Base Salaryhis base salary immediately prior to termination if his employment is terminated before the third-year anniversary of the effective date of his employment agreement (two and one-half times if his employment is terminated between the third-year anniversary and fourth-year anniversary and two and one-quarter times if his employment is terminated at or following the fourth-year anniversary), plus an amount equal to thehis annual target cash incentive compensation payable in cash for the year of termination.

 

A lump sum payment equal to the pro-rata portion of the CEO’s annual target cash incentive compensation for the year of termination.

 

42


A lump sum payment equal on an after-tax basis to the present value of the total cost of the medical coverage under the Health Plan that would have been incurred by both the Named Executive Officer and the Company for the period of one and a half years.

 

A lump sum payment equal on an after-tax basis to the cost of continuing coverage under the Company’s group long-term disability and group life insurance policies for one and a half years.

 

Acceleration of unvested stock options and restricted stock.

The Named Executive Officer (with the exception of the CEO) is entitled to:

 

One and a half times the sum of the Named Executive Officer’s Base Salary immediately prior to termination plus an amount equal to the greater of the Named Executive Officer’s annual target incentive compensation for the year of termination or the Named Executive Officer’s annual incentive compensation received for the latest year preceding the year of termination.

 

39


A lump sum payment equal to the pro-rata portion of the Named Executive Officer’s annual target incentive compensation for the year of termination.

 

A lump sum payment equal on an after-tax basis to the present value of the total cost of the medical coverage under the Health Plan that would have been incurred by both the Named Executive Officer and the Bank for the period of three years.

 

A lump sum payment equal on an after-tax basis to the cost of continuing coverage under the Bank’s group long-term disability and group life insurance policies for three years.

 

Acceleration of unvested stock options and restricted stock.

Involuntary Termination Without Cause or Voluntary TerminationResignation for Good Reason Within Two Years after Change-in-Control

Upon an involuntary termination without cause or voluntary resignation for good reason within two years after a Change-in-Control,change in control, the Named Executive OfficerOffice is entitled to the following benefits:

 

ThreeA lump sum payment equal to three times the sum of the Named Executive Officer’s Base Salarybase salary immediately prior to termination, plus an amount equal to the greater of the portion of the Executive’sNamed Executive Officer’s annual target incentive compensation payable in cash for the year of termination or the portion of the Named Executive Officer’s annual incentive compensation received in cash for the latest year preceding the year of termination. For the CEO, it is three times the sum of the CEO’s Base Salaryhis base salary immediately prior to termination if his employment is terminated before the third-year anniversary of the effective date of his employment agreement (two and one-half times if his employment is terminated between the third-year anniversary and fourth-year anniversary and two and one-quarter times if his employment is terminated at or following the fourth-year anniversary), plus the CEO’shis annual target incentive compensation payable in cash for the year of termination.

 

A lump sum payment equal to the pro-rata portion of the Named Executive Officer’s annual target incentive compensation for the year of termination.

 

Acceleration of unvested stock options and restricted stock.

A lump sum payment equal on an after-tax basis to the present value of the total cost of the medical coverage under the Health PlanCompany’s health plan that would have been incurred by both the Named Executive Officer and the Bank for three years.years, provided that the Named Executive Officer is not eligible for retiree benefits under the Bank’s health plan or Medicare, and provided further that the Named Executive Officer is in compliance with the non-solicitation, confidentiality and non-disparagement provisions in the Named Executive Officer’s employment agreement.

 

A lump sum payment equal on an after-tax basis to the cost of continuing coverage under the Bank’s group long-term disability and group life insurance policies for three years.years, provided the Named Executive Officer is in compliance with the non-solicitation, confidentiality and non-disparagement provisions in the Named Executive Officer’s employment agreement.

 

43


The above benefits, if any, due under the employment agreements with the Company’s Named Executive Officers are payable in the payroll period following the payroll period in which termination of employment occurs. However, any change in control benefits that are subject to Section 409A of the Code will be delayed six months following the date of termination if the Named Executive Officer is a “key employee” under applicable regulations. If payments are delayed for such six-month period, the Named Executive Officer is entitled to interest on the delayed payment at the six-month CMT Treasury Bill annualized yield rate as published by the U.S. Treasury on the date such payment would have been made but for the delay.

If payments and benefits payable to the Named Executive Officers under the employment agreements, together with other payments and benefits they may have the right to receive on account of a change in control, would exceed the maximum limit imposed on the total of such payments by Section 280G of the Code (without triggering the excise tax imposed under Section 4999 of the Code), then the employment agreements provide that the payments to the Named Executive Officers will be reduced to the maximum amount that will not exceed that limit, provided that the net after-tax proceeds to the Named Executive Officer is not thereby decreased. Specifically, if the payments and benefits payable in connection with a change in control arewould be subject to the excise tax on excess parachute payments under Section 4999 of the Internal Revenue Code, the higher of (1) reduced payments to the Named Executive Officer will receive either (a) the payment reduced to the maximum amount that will not result in an excess parachute payment;any excise tax under Code Section 4999 being triggered; or (2)(b) the full payments will be provided butpayment, in which case, the Named Executive Officer will be responsible for paying the excise tax, but only if incurring the excise taxthis alternative leaves the Named Executive Officer in a better after-tax position.

Acceleration of unvested stock options and restricted stock.

The tables below reflect the compensation and benefits that would be due to each of the Named Executive Officers, following or in connection with any termination of employment. The amounts shown assume that each termination of employment was effective as of December 31, 2012,2014, and the fair market value of the Company’s common stock was $12.90,$14.36, the closing price of common stock on the NASDAQ Global Select Stock Market on that date. The amounts shown in the table are estimates of the amounts which would be paid upon termination of employment. Actual amounts to be paid can only be determined at the time of the termination of employment.

40


The following table describes the potential payments based upon a hypothetical termination or a change in control of the Company on December 31, 20122014 for William H.W. Crawford, IV. Column (d) assumes an involuntary termination of the executive in mid-year as opposed to the mere expiration of the term of his one year employment agreement, for which termination payments would be substantially less:

 

Executive benefits and Payments Upon
Termination (a)
  

Voluntary
Termination
for Good
Reason

$ (b)

   Normal
Retirement
$ (c)
   Involuntary
Not For
Cause
Termination
$ (d)
   For Cause
Termination
$ (e)
   

Involuntary
or Good
Reason
Termination
within 2
Years of a
CIC

$ (f)

   

Death

$ (g)

   

Disability

$ (h)

  

Voluntary

Termination
for Good
Reason

$ (b)

 Normal
Retirement
$ (c)
 

Involuntary

Not For

Cause
Termination
$ (d)

   For Cause
Termination
$ (e)
   

Involuntary

or Good

Reason

Termination

within 2

Years of a

CIC

$ (f)

   

Death

$ (g)

   Disability
$ (h)
 

 

 

Compensation:

                         

Base Compensation

  $1,571,400     0    $2,095,200     0    $2,095,200     0     0   $2,630,661    0   $2,630,661     0    $2,630,661     0     0  

Pro-rata Short-Term Incentive

   261,900     0     261,900     0     261,900     327,375     327,375    281,887    0    281,887     0     281,887     344,296     344,296  

Stock Option Unvested and Accelerated

   412,405     0     412,405     0     412,405     412,405     412,405    16,890    0    16,890     0     16,890     16,890     16,890  

Restricted Stock Unvested and Accelerated

   1,051,987     0     1,051,987     0     1,051,987     1,051,987     1,051,987    383,675    0    383,675     0     383,675     383,675     383,675  

Benefits and Perquisites:

                         

Health and Welfare Benefit Continuation(1)

   56,262     0     58,554     0     115,955     111,245     876,883    48,107    0    50,503     0     98,764     93,838     686,794  

Supplemental Executive Retirement Agreement(2) Acceleration

   0     0     1,367,097     0     1,367,097     57,597     57,597    0    0    TBD     0     TBD     TBD     TBD  

280G Tax & Scale Back

   0     0     0     0     0     0     0    0    0    0     0     0     0     0  

 

 

Total:

   3,353,954     0     5,247,143     0     5,304,544     1,960,609     2,726,247    3,361,220    0    TBD     0     TBD     TBD     TBD  

 

 

 

44


(1)Includes postretirement health care, postretirement life insurance, health care continuation for eligible non-spouse dependent only, group term life benefit and long-term disability benefit.
(2)Participant is not yet vested in the benefit under this plan.

The following table describes the potential payments based upon a hypothetical termination or a change in control of the Company on December 31, 20122014 for John T. Lund.Eric R. Newell. Column (d) assumes an involuntary termination of the executive in mid-year as opposed to the mere expiration of the term of his one year employment agreement, for which termination payments would be substantially less:

 

Executive benefits and Payments Upon Termination (a) Voluntary
Termination
$ (b)
 Normal
Retirement
$ (c)
 Involuntary
Not For
Cause
Termination
$ (d)
   For Cause
Termination
$ (e)
   

Involuntary
or Good
Reason
Termination
within 2
Years of a
CIC

$ (f)

   

Death

$ (g)

   

Disability

$ (h)

  Voluntary
Termination
$ (b)
 Normal
Retirement
$ (c)
 Involuntary
Not For
Cause
Termination
$ (d)
   For Cause
Termination
$ (e)
   Involuntary
or Good
Reason
Termination
within 2
Years of a
CIC $ (f)
   Death $
(g)
   Disability $
(h)
 

 

 

Compensation:

                      

Base Compensation

  0    0   $462,000     0    $924,000     0     0    0    0   $664,850     0    $1,329,699     0     0  

Pro-rata Short-Term Incentive

  0    0    87,200     0     87,200     130,800     130,800    0    0    108,824     0     108,824     143,233     143,233  

Stock Option Unvested and Accelerated

  0    0    167,548     0     167,548     167,548     167,548    0    0    12,053     0     12,053     12,053     12,053  

Restricted Stock Unvested and Accelerated

  0    0    254,148     0     254,148     254,148     254,148    0    0    118,745     0     118,745     118,745     118,745  

Benefits and Perquisites:

                      

Health and Welfare Benefit Continuation(1)

  0    0    81,633     0     81,633     76,951     764,392    0    0    72,748     0     72,748     31,354     1,018,688  

Supplemental Executive Retirement Agreement(2) Acceleration

  0    0    0     0     494,107     494,107     262,099  

280G Tax & Scale Back

  0    0    0     0     0     0     0    0    0    0     0     0     0     0  

 

 

Total:

  0    0    1,052,529     0     2,008,636     1,123,554     1,578,987    0    0    977,220     0     1,642,069     305,385     1,292,719  

 

 

 

(1)Includes postretirement health care, postretirement life insurance, group term life benefit and long-term disability benefit.
(2)Participant is not yet vested in the benefit under this plan.

41


The following table describes the potential payments based upon a hypothetical termination or a change in control of the Company on December 31, 20122014 for Marino J. Santarelli. Column (d) assumes an involuntary termination of the executive in mid-year as opposed to the mere expiration of the term of his one year employment agreement, for which termination payments would be substantially less:

 

Executive benefits and Payments Upon Termination (a) Voluntary
Termination
$ (b)
   Retirement(2)
$ (c)
   Involuntary
Not For
Cause
Termination
$ (d)
   For Cause
Termination
$ (e)
   

Involuntary
or Good
Reason
Termination
within 2
Years of a
CIC

$ (f)

   

Death

$ (g)

   

Disability

$ (h)

  Voluntary
Termination
$ (b)
 

Retirement(2)

$ (c)

 Involuntary
Not For
Cause
Termination
$ (d)
   For Cause
Termination
$ (e)
   

Involuntary
or Good
Reason
Termination

within 2
Years of a
CIC

$ (f)

   

Death

$ (g)

   

Disability

$ (h)

 

 

 

Compensation:

                        

Base Compensation

  0     0     554,400     0     1,108,800     0     0    0    0    673,959     0     1,347,918     0     0  

Pro-rata Short-Term Incentive

  158,400     158,400     105,600     0     105,600     158,400     158,400    144,306    144,306    118,713     0     118,713     144,306     144,306  

Stock Option Unvested and Accelerated

  0     0     168,080     0     168,080     168,080     168,080    0    0    11,028     0     11,028     11,028     11,028  

Restricted Stock Unvested and Accelerated

  0     0     283,390     0     283,390     283,390     283,390    0    0    108,657     0     108,657     108,657     108,657  

Benefits and Perquisites:

                        

Health and Welfare Benefit Continuation(1)

  191,509     191,509     117,928     0     117,928     111,245     202,100    111,549    111,549    100,735     0     100,735     93,838     118,264  

280G Tax & Scale Back

  0     0     0     0     0     0     0    0    0    0     0     0     0     0  

 

 

Total:

  349,909     349,909     1,229,398     0     1,783,798     721,115     811,970    255,855    255,855    1,013,092     0     1,687,051     357,829     382,255  

 

 

 

45


(1)Includes health care continuation, group term life benefit and long-term disability benefit. The value represents three years continuation of benefits grossed up for tax. For voluntary termination or disability, benefit is assumed to continue until the participant is eligible for Medicare and for his spouse until the expiration of her COBRA continuation period.
(2)Participant is retirement eligible age.

The following table describes the potential payments based upon a hypothetical termination or a change in control of the Company on December 31, 20122014 for ScottDavid C. Bechtle.Paulson. Column (d) assumes an involuntary termination of the executive in mid-year as opposed to the mere expiration of the term of his one year employment agreement, for which termination payments would be substantially less:

 

Executive benefits and Payments Upon Termination (a)  Voluntary
Termination
$ (b)
   Retirement(2)
$ (c)
   Involuntary
Not For
Cause
Termination
$ (d)
   For Cause
Termination
$ (e)
   

Involuntary
or Good
Reason
Termination
within 2
Years of a
CIC

$ (f)

   

Death

$ (g)

   Disability
$ (h)
 

 

 

Compensation:

              

Base Compensation

   0     0     462,000     0     924,000     0     0  

Pro-rata Short-Term Incentive

   132,000     132,000     88,000     0     88,000     132,000     132,000  

Stock Option Unvested and Accelerated

   0     0     150,804     0     150,804     150,804     150,804  

Restricted Stock Unvested and Accelerated

   0     0     248,522     0     248,522     248,522     248,522  

Benefits and Perquisites:

              

Health and Welfare Benefit Continuation(1)

   109,635     109,635     87,045     0     87,045     36,559     117,340  

280G Tax & Scale Back

   0     0     0     0     0     0     0  

 

 

Total:

   241,635     241,635     1,036,371     0     1,498,371     567,885     648,666  

 

 

(1)Includes health care continuation, group term life benefit and long-term disability benefit. The value represents three years continuation of benefits grossed up for tax. For disability, benefit is assumed to continue until the participant is eligible for Medicare.
(2)Participant is retirement eligible age.

42


The following table describes the potential payments based upon a hypothetical termination or a change in control of the Company on December 31, 2012 for Mark A. Kucia. Column (d) assumes an involuntary termination of the executive in mid-year as opposed to the mere expiration of the term of his one year employment agreement, for which termination payments would be substantially less:

Executive benefits and Payments Upon Termination (a)  Voluntary
Termination
$ (b)
   Normal
Retirement
$ (c)
   Involuntary
Not For
Cause
Termination
$ (d)
   For Cause
Termination
$ (e)
   

Involuntary
or Good
Reason
Termination
within 2
Years of a
CIC

$ (f)

   

Death

$ (g)

   Disability
$ (h)
  Voluntary
Termination
$ (b)
 Retirement(2)
$ (c)
 Involuntary
Not For
Cause
Termination
$ (d)
   For Cause
Termination
$ (e)
   Involuntary
or Good
Reason
Termination
within 2
Years of a
CIC $ (f)
   Death $
(g)
   Disability
$ (h)
 

 

 

Compensation:

                         

Base Compensation

   0     0     461,700     0     923,400     0     0    0    0    637,500     0     1,275,000     0     0  

Short-Term Incentive

   0     0     86,000     0     86,000     129,000     129,000  

Pro-rata Short-Term Incentive

  0    0    110,000     0     110,000     150,000     150,000  

Stock Option Unvested and Accelerated

   0     0     180,542     0     180,542     180,542     180,542    0    0    0     0     0     0     0  

Restricted Stock Unvested and Accelerated

   0     0     295,031     0     295,031     295,031     295,031    0    0    266,457     0     266,457     266,457     266,457  

Benefits and Perquisites:

                         

Health and Welfare Benefit Continuation(1)

   0     0     4,594     0     4,594     0     21,073    0    0    4,926     0     4,926     0     19,538  

Supplemental Executive Retirement Agreement Acceleration

   72,397     0     327,831       494,107     494,107     327,831  

280G Tax & Scale Back

   0     0     0     0     0     0     0    0    0    0     0     0     0     0  

 

 

Total:

   72,397     0     1,355,698     0     1,983,674     1,098,680     953,477    0    0    1,018,883     0     1,656,383     416,457     435,995  

 

 

 

(1)Includes health care continuation, group term life benefit and long-term disability benefit. The value represents three years continuation of benefits grossed up for tax. For disability, benefit is assumed to continue until the participant is eligible for Medicare.

The following table describes the potential payments based upon a hypothetical termination or a change in control of the Company on December 31, 2014 for Mark A. Kucia. Column (d) assumes an involuntary termination of the executive in mid-year as opposed to the mere expiration of the term of his one year employment agreement, for which termination payments would be substantially less:

Executive benefits and Payments Upon Termination (a) 

Voluntary
Termination

$ (b)

   

Normal
Retirement

$ (c)

   

Involuntary
Not For
Cause
Termination

$ (d)

   

For Cause
Termination

$ (e)

   

Involuntary
or Good
Reason
Termination
within 2
Years of a
CIC

$ (f)

   

Death

$ (g)

   Disability
$ (h)
 

 

 

Compensation:

             

Base Compensation

  0     0     617,909     0     1,235,817     0     0  

Short-Term Incentive

  0     0     105,398     0     105,398     136,939     136,939  

Stock Option Unvested and Accelerated

  0     0     8,035     0     8,035     8,035     8,035  

Restricted Stock Unvested and Accelerated

  0     0     79,149     0     79,149     79,149     79,149  

Benefits and Perquisites:

             

Health and Welfare Benefit Continuation(1)

  0     0     4,923     0     4,923     0     20,609  

Supplemental Executive Retirement Agreement Acceleration

  78,499     0     289,840     0     458,801     458,801     289,840  

280G Tax & Scale Back

  0     0     0     0     0     0     0  

 

 

Total:

  78,499     0     1,105,254     0     1892,123     682,924     534,572  

 

 

46


(1)Includes health care continuation, group term life benefit and long-term disability benefit. The value represents three years continuation of benefits grossed up for tax. For disability, benefit is assumed to continue until the participant is eligible for Medicare.

47


Director Compensation

Director Fees

The Compensation Committee reviews the Board compensation regularly to ensure it is appropriate, competitive and effective. In 2012, the Committee decided to increase the annual Board retainer from $11,400 to $15,000 after considering the fact that the Board had not received an increase in annual retainer compensation since 2008, as well as the performance of the Company and market competitiveness with the assistance of the compensation consultant. Other compensation components are not changed from 2011.

Each non-employee Director receives an annual retainer of $15,000, and $950 for each Board meeting and $850 for each Committee meeting that he or she attends. In addition to the above fees, the Chairman of the Board receives an annual retainer of $60,000, and the Vice Chairman of the Board, the Audit Committee Chairman, the Compensation Committee Chairman, the Governance Committee Chairman, the Lending Committee Chairman and the Asset/Liability Committee Chairman receive annual retainers of $11,400. During 2012, the Vice Chairman of the Board also served as the Governance Committee Chairman and the Lending Committee Chairman; however the Company compensated the incumbent for one “special” committee retainer at the full remuneration of $11,400 and one at half that rate at $5,700. The Company paid fees totaling $576,975$561,025 to non-employee Directors during the fiscal year ended December 31, 2012.2014. Directors are not paid separately for their services on the Board of both the Company and the Bank. In 2014, the Committee decided that effective upon the closing of the Merger, the non-employee members of the Boards of Directors of the Company and the Bank became entitled to the following compensation:

Type of Compensation

  Amount 

Annual Cash Retainer

  $25,000

Annual Equity Grant Retainer

  $25,000

Annual Chairman of the Board Retainer

  $60,000** 

Annual Vice Chairman of the Board Retainer

  $36,000** 

Annual Committee Chair Retainer

  $11,400*** 

Annual Retainer for Non-Chair Director of the Company

  $6,840

Board Fee Per Meeting

  $1,000++ 

Committee Fee Per Meeting

  $850++ 

*Represents an aggregate amount payable for service on either or both of the Boards of Directors.
**The same person serves in this position for the Company and the Bank, and this amount represents an aggregate fee for such service.
***Applies to the Chair of a Committee of the Company or the Bank. A Chair of the same Committee of the Company and the Bank will receive this amount in the aggregate for such service.
+Applies to members of the Board of Directors of the Company who do not serve as Chair of a Committee of the Company or the Bank.
++A joint meeting of the Company and the Bank would be considered one meeting for purposes of the fee.

On June 21, 2012,20, 2014, each non-employee Director received 5,6821,820 shares of restricted stock options from the Rockville Financial, Inc. 2012 Stock Incentive Plan (the “2012 Plan”), 2,017 shares of stock options from the Rockville Financial, Inc. 2006 Stock Incentive Award Plan (the “2006 Plan”), and 10,266 shares ofPlan. The restricted stock from the 2012 Plan. The exercise price of these options is $10.99, the grant date closing price. The grant date fair value for each stock option award is $11,318. The options and restricted stock granted from the 2012 Plan will vest 100% on the first anniversary of the grant date. The options granted from the 2006 Plan vested 20% immediately and the remaining 80% will vest 20% annually on each anniversary of the grant date over the next four years.

 

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The following table details the compensation paid to each of our non-employee Directors in 2012.2014.

 

Name  Fees
Earned
or Paid
in Cash
($)
   

Stock
Awards
(2)

($)

   

Option
Awards
(3)

($)

   Non-Equity
Incentive Plan
Compensation
($)
   

Change in
Pension Value
and
Nonqualified
Deferred
Compensation
Earnings

($)

   All Other
Compensation
($)
  

Total

($)

 

 

Michael A. Bars

   61,425     112,812     11,318     0     0     0    185,555  

 

C. Perry Chilberg

   49,450     112,812     11,318     0     0     0    173,580  

 

David A. Engelson

   46,050     112,812     11,318     0     0     0    170,180  

 

Pamela J. Guenard(1)

   14,250     0     0     0     0     0    14,250  

 

Joseph F. Jeamel

   53,200     112,812     11,318     0     0     60,000(5)   237,330  

 

Raymond H. Lefurge, Jr.

   83,600     112,812     11,318     0     0     0    207,730  

 

Kristen A. Johnson

   55,325     112,812     11,318     0     0     0    179,455  

 

Stuart E. Magdefrau

   62,975     112,812     11,318     0     0     0  �� 187,105  

 

Thomas S. Mason(1)(4)

   15,900     0     0     0     0     0    15,900  

 

William J. McGurk

   36,075     112,812     11,318     0     0     102,000(5)   262,205  

 

Rosemarie Novello Papa

   40,525     112,812     11,318     0     0     0    164,655  

 

Peter F. Olson(1)

   16,400     0     0     0     0     0    16,400  

 

Richard M. Tkacz

   41,800     112,812     11,318     0     0     0    165,930  
Name  Fees
Earned
or Paid
in Cash
($)
   

Stock
Awards
(3)

($)

   

Option
Awards
(4)

($)

   

Non-Equity
Incentive Plan

Compensation

($)

   

Change in
Pension Value
and
Nonqualified
Deferred
Compensation
Earnings

($)

   

All Other
Compensation

($)

   

Total

($)

 

Paula A. Aiello(1)

   41,963     24,989     0     0     0     0     66,952  

Michael A. Bars

   70,992     24,989     0     0     0     0     95,981  

C. Perry Chilberg(2)

   18,575     0     0     0     0     0     18,575  

Michael F. Crowley(1)

   47,283     24,989     0     0     0     0     72,272  

David A. Engelson(2)

   16,450     0     0     0     0     0     16,450  

Joseph F. Jeamel(2)

   19,825     0     0     0     0     0     19,825  

Kristen A. Johnson

   70,691     24,989     0     0     0     0     95,680  

Carol A. Leary(1)

   41,968     24,989     0     0     0     0     66,957  

Raymond H. Lefurge, Jr.

   105,942     24,989     0     0     0     0     130,931  

Stuart E. Magdefrau

   67,752     24,989     0     0     0     0     92,741  

Rosemarie Novello Papa(2)

   15,600     0     0     0     0     0     15,600  

Kevin E. Ross(1)

   42,717     24,989     0     0     0     0     67,706  

Robert A. Stewart, Jr.(1)

   71,717     24,989     0     0     0     0     96,706  

Richard M. Tkacz(2)

   15,175     0     0     0     0     0     15,175  

 

(1)Messers. Mason and Olson, and Ms. Guenard completed theirIncludes Board fees paid by the Company beginning with service on the Board asfollowing legal close of the Company’s Annual Meeting in May of 2012.Merger.
(2)Includes Board fees paid by the Company prior to legal close of the Merger for joint service as Bank and Holding Company Directors. Ms. Papa and Messrs. Chilberg, Engelson, Jeamel and Tkacz no longer served as Holding Company Directors following the Merger. Mr. Jeamel retired from the Bank Board effective June 30, 2014.
(3)As of December 31, 2012,2014, Directors have the following unvested restricted stock shares; Aiello – 1,820 shares; Bars – 10,2651,820 shares; ChilbergCrowley10,265 shares; Engelson – 10,265 shares; Jeamel – 10,2651,820 shares; Johnson – 10,2651,820 shares; Leary – 1,820 shares; Lefurge – 10,2651,820 shares; Magdefrau – 10,2651,820 shares; McGurkRoss10,265 shares; Papa – 10,2651,820 shares; and TkaczStewart10,2651,820 shares. Messers Mason and Olson and Ms. Guenard did not have any unvested shares as of December 31, 2012.
(3)(4)As of December 31, 2012, Directors have the following unvested stock options; Bars – 10,480 options; Chilberg – 10,480 options; Engelson – 10,480 options; Jeamel – 10,026 options; Johnson – 9,419 options; Lefurge – 10,480 options; Magdefrau – 10,480 options; McGurk – 7,296 options; Papa – 10,480 options; and 10,480 – 6,370 options. Messers Mason and Olson and Ms. Guenard did not have any unvested stock options as of December 31, 2012.
(4)Mr. Mason elected to defer 50% of his annual fees, $7,750, and received a distribution from the Non-Qualified Deferred Compensation Plan for Directors in the amount of $186,347 upon his retirement from the Board in 2012.
(5)Mr. Jeamel and Mr. McGurk earned consulting fee income during the year 2012.2014.

Deferred Compensation Plan

The Bank maintains the Rockville Bank Non-Qualified Deferred Compensation Plan for Directors, a non-qualified plan that permits Directors to defer all or part of their total fees for a plan year in 25% increments. The participants in the Non-Qualified Deferred Compensation Plan direct the investment of their deferred amounts among several investment funds. Participants elect the method of payment of their deferral accounts either on a date certain or upon termination of their service as a Director. Participants may elect to receive the deferral amounts in a lump sum payment or in consecutive annual installments over a period not to exceed five years. The Bank accrueddid not accrue expenses totaling $24,574 to Directors in connection with this plan during the fiscal year ended December 31, 2012.2014.

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Compensation in the form of perquisites and other personal benefits provided by us has been omitted for all individual Directors as the total amount of those perquisites and personal benefits constituted less than $10,000 for 20122014 for each.

49


Certain Relationships and Related Transactions

Federal regulations require that all loans or extensions of credit to executive officers and directors of insured institutions must be made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons, and must not involve more than the normal risk of repayment or present other unfavorable features. Notwithstanding this rule, federal regulations permit banks like RockvilleUnited Bank to make loans to executive officers and directors at reduced interest rates if the loan is made under a benefit program generally available to all Bank employees and does not give preference to any executive officer or director over any other employee. RockvilleUnited Bank maintains certain loan programs whereby employees with one year of service or more, including executive officers and directors, may obtain loans with an interest rate discount upon request. From time to time, RockvilleUnited Bank also makes loans and extensions of credit, directly and indirectly, to its executive officers and directors that are not part of an employee discount loan program. These loans are made in the ordinary course of business, are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans with persons not related to RockvilleUnited Bank, and do not involve more than the normal risk of collectability or present other unfavorable features.

The following information is furnished for outstanding loans made by RockvilleUnited Bank to executive officers and directors under the discounted loan programs:

 

Name

  

Original
Loan Date

  

Loan Type

  Original
Note
Rate
  

Current Rate

  Largest
Aggregate
Principal
Outstanding
During 2012
   Principal
Balance as of
12/31/12
   Interest Paid
During 2012
 

Michael A. Bars

  1/12/2011  Fixed Residential   4.00 4.00%No employee rate reduction requested  $214,760    $203,258    $8,381  

Judy Keppner Clark

  7/21/2008  Fixed Residential   5.125 

4.625%

Rate Modified

  $67,452    $62,058    $3,006  

Kristen A. Johnson

  11/2/2011  Fixed Residential   3.375 

2.875%

Rate Modified

  $119,487    $112,347    $3,640  

John T. Lund

  11/23/2011  Fixed Residential   3.375 

2.875%

Rate Modified

  $269,000    $254,444    $7,543  

William J. McGurk

  5/5/2003  ARM Loan-.50% off Rate Margin   4.250 

2.75%

Rate Modified

  $15,928    $5,684    $253  

Rosemarie N. Papa

  6/29/2009  Fixed Residential   4.750 

3.250%

No employee rate reduction requested

  $263,629    $136,981    $5,106  

Howard Stanton III

  3/21/2012  Fixed Residential   3.125 

2.625%

Rate Modified

  $215,000    $206,959    $3,901  

Richard M. Tkacz

  2/7/2011  Fixed Residential   4.500 

4.500%

No employee rate reduction requested

  $145,228    $142,763    $6,485  

Richard J. Trachimowicz

  9/29/2008  ARM Loan-.50% off Rate Margin   5.375 

4.875%

Rate Modified

  $281,935    $276,703    $13,628  

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Name

  Original
Loan Date
  Loan Type  Original
Note
Rate
  Current Rate Largest
Aggregate
Principal
Outstanding
During 2014
   Principal
Balance as
of 12/31/14
   Interest Paid
During 2014
 

Eric R. Newell

  6/26/2014  Fixed
Residential
   3.75 3.25%
Rate Modified
 $528,000    $523,340    $7,838  

Samir R. Patel

  7/21/2014  Fixed
Residential
   3.50 3.00%
Rate Modified
 $929,600    $923,590    $11,415  

ELECTION OF DIRECTORS

(Proposal 1)

THE BOARD OF DIRECTORS RECOMMENDS THAT SHAREHOLDERS VOTEFOR THE ELECTION OF JOSEPH F. JEAMEL, JR. TO SERVE AS DIRECTOR OF THE COMPANY FOR A TERM OF ONE YEARPAULA A. AIELLO, CAROL A. LEARY AND THE ELECTION OF RAYMOND H. LEFURGE, JR. AND STUARTKEVIN E. MAGEDFRAUROSS. TO SERVE AS DIRECTORS OF THE COMPANY FOR A TERM OF FOUR YEARS, AND UNTIL THEIR RESPECTIVE SUCCESSORS ARE QUALIFIED AND ELECTED.

ADVISORY (NON-BINDING) VOTE ON EXECUTIVE COMPENSATION

(Proposal 2)

As part of our commitment to corporate governance best practices, and as required by the Section 14A(a)(2) of the Securities Exchange Act of 1934, the Company’s Board of Directors is providing shareholders with the opportunity to cast an advisory vote on its compensation program at the Annual Meeting through the following resolution:

“RESOLVED, that the shareholders approve the Company’s executive compensation, as described in the Compensation Discussion and Analysis and the tabular disclosure regarding named executive officer compensation (together with the accompanying narrative disclosure) in this Proxy Statement.”

We believe that our compensation policies and procedures, which are described more fully in the “Compensation Discussion and Analysis” section of this Proxy Statement and in the tables and narrative in the “Executive Compensation” section, are strongly aligned with the long-term interests of shareholders. The Company’s executive compensation philosophy is designed to be attractive, market-based, tied to performance and aligned with shareholders’ interests. We believe the Bank’s objective of remaining community centric, focusing on quality personal service, and expanding its lending activities, banking networks and consumer products, will be enhanced by this strategy. Our compensation programs are designed to consider competitive market data, specific role functions that may be unique to our structure, internal equity and the performance of both the individual and the Company. We believe this approach will help us attract, retain and reward the best employees, fulfill the Company’s growth objectives and promote shareholder value.

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This vote will not be binding on or overrule any decisions by the Company’s Board of Directors or Compensation Committee, will not create or imply any additional fiduciary duty on the part of the Board of Directors or the Compensation Committee, and will not restrict or limit the ability of our shareholders to make proposals in the future for inclusion in proxy materials related to executive compensation. The Company’s Compensation Committee and Board of Directors will, however, take into account the outcome of the vote when considering future executive compensation arrangements.

THE BOARD OF DIRECTORS RECOMMENDS A VOTEFOR APPROVAL OF THE COMPANY’S EXECUTIVE COMPENSATION, AS DESCRIBED IN “COMPENSATION DISCUSSION AND ANALYSIS”, AND THE TABULAR DISCLOSURE REGARDING NAMED EXECUTIVE OFFICER COMPENSATION (TOGETHER WITH ACCOMPANYING NARRATIVE DISCLOSURE) IN THIS PROXY STATEMENT.

ADVISORY VOTE ON THE FREQUENCY OF ADVISORY VOTES ON

EXECUTIVE COMPENSATION

(Proposal 3)

As an additional part of our commitment corporate governance best practices, and as required by the Section 14A(a)(2) of the Exchange Act, the Company’s Board of Directors is providing shareholders with the opportunity to provide an advisory vote to assist the Board in determining whether the shareholder advisory vote on executive compensation should occur every one, two or three years.

Consistent with the Company’s compensation philosophy, the Company’s executive compensation program promotes a total compensation program designed to support our belief that all executives should have a significant portion of their compensation tied to performance. We define performance to reflect a balance of Company and individual performance on both a short- and long-term basis. In setting our total compensation guidelines, we target a significant portion of our compensation in the form of annual cash incentives and equity/long-term incentive awards that focus on performance-based, at-risk compensation. Stock options and time-vested restricted stock granted in 2014 vest 33.33% on the first anniversary of the grant, and 33.33% annually thereafter. Performance-vested restricted stock granted in 2014 will have a three-year performance period with 100% vesting at the end of that time. In addition, the Company generally maintains one year employment contracts for its executives (except for the contract term for Mr. Crawford, the Company’s Chief Executive Officer).

The Company believes holding an advisory vote on executive compensation every year would allow the Company to conduct a meaningful and detailed review of its pay practices in response to such shareholder advisory vote on executive compensation.

For the reasons discussed above, the Board of Directors recommends that shareholders vote to hold the advisory vote on executive compensation every year. Shareholders are not voting, however, to approve or disapprove of this particular recommendation. The proxy card provides for four choices and shareholders are entitled to vote on whether the advisory vote on executive compensation should be held every one, two, or three years, or to abstain from voting.

While the result of this advisory vote on the frequency of the vote on executive compensation is non-binding, the Board of Directors values the opinions that shareholders express in their votes. It will consider the outcome of the vote and those opinions when deciding how frequently to conduct the vote on executive compensation.

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT YOU VOTE

TO HOLD THE ADVISORY VOTE ON EXECUTIVE COMPENSATIONANNUALLY.

51


APPROVAL OF AMENDMENT TO THE CERTIFICATE OF INCORPORATION

(Proposal 4)

The Board of Directors approved and recommends that shareholders approve the amendment to our Certificate of Incorporation to eliminate the 80% super majority vote on certain Certificate of Incorporation amendments. If Proposal Four is approved, it will immediately lower the vote required to approve amendments to certain provisions of the Certificate of Incorporation, including the amendment in Proposal Five and Proposal Six. The proposed amendments are incorporated in the Certificate of Incorporation, a copy of which is attached asExhibit A and marked to show the proposed amendments. The description below of the material changes to the Certificate of Incorporation is qualified in its entirety by reference toExhibit A. We encourage you to carefully readExhibit A in its entirety.

Board Recommendation

The 80% super majority voting provision was included in the Company’s Certificate of Incorporation at a time when the Company’s priorities were focused on successfully converting the Company to public ownership and out of concern for unwanted takeover initiatives. The Board of Directors believes that the adoption of the amendments to the Certificate of Incorporation will eliminate an impediment to corporate expansion efforts and shareholder democracy, and will provide added flexibility to the Board to respond to the needs of the Company and its shareholders and is in the best interest of its shareholders.

ACCORDINGLY, THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTEFOR THE PROPOSAL TO AMEND THE CERTIFICATE OF INCORPORATION.

INCREASE IN AUTHORIZED SHARES OF COMMON STOCK

(Proposal 5)

The Board of Directors has approved a proposal to amend the Company’s Certificate of Incorporation to increase the number of authorized shares of the Company’s Common Stock from 60 million to 120 million. The proposed amendment would replace Section (a) of Article Fourth of the Certificate of Incorporation with the following language:

The total number of shares of all classes of capital stock which the Corporation is authorized to issue is one hundred twenty two million (122,000,000), of which one hundred twenty million (120,000,000) shall be common stock, no par value per share, and of which two million shares (2,000,000) shall be preferred stock, no par value per share.

The actual language proposed to be changed is set forth inExhibit B.

The Board of Directors believes it is in the best interest of the Company to increase the number of authorized shares of Common Stock in order to give the Company greater flexibility in considering and planning for future corporate needs, including, but not limited to, stock dividends, grants under equity compensation plans, stock splits, financings, potential strategic transactions, including mergers, acquisitions, and business combinations, as well as other general corporate transactions. The Board of Directors believes that additional authorized shares of Common Stock will enable the Company to take timely advantage of market conditions and favorable financing and acquisition opportunities that become available to the Company without the delay and expense associated with convening a special meeting of the Company’s stockholders.

The Company has no current plan, commitment, arrangement, understanding or agreement regarding the issuance of the additional shares of Common Stock that will result from the Company’s adoption of the proposed amendment. Except as otherwise required by law or by a regulation of NASDAQ, the newly authorized shares of Common Stock will be available for issuance at the discretion of the Board of Directors (without further action by the stockholders) for various future corporate needs, including those outlined above. While adoption of the proposed amendment would not have any immediate dilutive effect on the proportionate voting power or other rights of the Company’s existing stockholders, any future issuance of additional authorized shares of the Company’s Common Stock may, among other things, dilute the earnings per share of the Common Stock and the equity and voting rights of those holding Common Stock at the time the additional shares are issued.

52


In addition to the corporate purposes mentioned above, an increase in the number of authorized shares of the Company’s Common Stock may make it more difficult to, or discourage an attempt to, obtain control of the Company by means of a takeover bid that the Board of Directors determines is not in the best interest of the Company and its stockholders. However, the Board of Directors does not intend or view the proposed increase in the number of authorized shares of the Company’s Common Stock as an anti-takeover measure and is not aware of any attempt or plan to obtain control of the Company.

Any newly authorized shares of the Company’s Common Stock will be identical to the shares of Common Stock now authorized and outstanding. The proposed amendment will not affect the rights of current holders of the Company’s Common Stock, none of whom have preemptive or similar rights to acquire the newly authorized shares.

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTEFOR THE PROPOSED AMENDMENT TO INCREASE THE NUMBER OF AUTHORIZED SHARES OF THE COMPANY’S COMMON STOCK FROM 60 MILLION TO 120 MILLION.

APPROVAL OF CHANGE OF STATE OF

INCORPORATION FROM CONNECTICUT TO DELAWARE

(Proposal 6)

The Board of Directors has approved and recommends to the shareholders a proposal to change the Company’s state of incorporation from the State of Connecticut to the State of Delaware (the “Charter Change”). If our shareholders approve the Charter Change, we will accomplish the Charter Change by converting the corporation as provided in the Delaware General Corporation Law (the “DGCL”) and the Connecticut Business Corporations Act (the “CBCA”). For the purposes of this Proposal Six, we sometimes refer to the Company as “UNITED-Connecticut” prior to the Charter Change and “UNITED-Delaware” after the Charter Change.

Summary

The principal effects of the Charter Change will be that:

The affairs of the Company will cease to be governed by Connecticut corporation laws and will become subject to Delaware corporation laws.

The resulting Delaware corporation, “UNITED-Delaware,” will be the same entity as the Company as currently incorporated in Connecticut, and will continue with all of the rights, privileges and powers of UNITED-Connecticut, will possess all of the properties of UNITED-Connecticut, will continue with all of the debts, liabilities and obligations of UNITED-Connecticut and will continue with the same officers and directors of UNITED-Connecticut immediately prior to the Charter Change, as more fully described below.

When the Charter Change becomes effective, each outstanding share of UNITED-Connecticut capital stock will continue to be an outstanding share of capital stock of a like class of the resulting Delaware corporation, and each outstanding option or right to acquire shares of UNITED-Connecticut common stock will continue to be an option or right to acquire shares of common stock of the resulting Delaware corporation, UNITED-Delaware.

General Information

The Company will complete the Charter Change by entering into a Plan of Domestication, a draft copy of which is attached hereto asExhibit C. Approval of the Charter Change will constitute approval of the Plan of Domestication. At the effective time of the Charter Change the Company will file with the Connecticut Secretary of State a Statement of Domestication, and will also file with the Delaware Secretary of State a Certificate of Conversion and Certificate of Incorporation, draft copies of which are attached hereto asExhibits D, E and F. In addition, the Board of Directors of the Company will adopt bylaws for the resulting Delaware corporation, which is referred to here as the Delaware bylaws, a draft copy of which is attached asExhibit G. Approval of the Charter Change will constitute approval of the Delaware certificate of incorporation and Delaware bylaws.

53


Apart from being governed by the Delaware certificate of incorporation, the Delaware bylaws and the DGCL, for all other purposes, UNITED-Delaware will be the same entity as UNITED-Connecticut immediately prior to the Charter Change: UNITED-Delaware will continue with all of the rights, privileges and powers of UNITED-Connecticut, it will possess all of the properties of UNITED-Connecticut, it will continue with all of the debts, liabilities and obligations of UNITED-Connecticut and it will continue with the same officers and directors of UNITED-Connecticut immediately prior to the Charter Change.

After the Charter Change, the Company will continue to be a publicly-held company and the shares of the Company’s common stock will continue to be traded, without interruption, on the NASDAQ under the same symbol (UBNK). The Company will continue to file periodic reports and other documents with the SEC and provide to its shareholders the same type of information that it has previously filed and provided. In summary, the Charter Change will not change the respective positions under federal securities laws of the Company or its shareholders.

Reasons for the Charter Change

Delaware is a nationally recognized leader in adopting and implementing comprehensive and flexible corporate laws. The DGCL is frequently revised and updated to accommodate changing legal and business needs and is more comprehensive, widely used and interpreted than other state corporate laws, including the CBCA.

In addition, Delaware has established a specialized court, the Court of Chancery, that has exclusive jurisdiction over matters relating to the DGCL. In the Court of Chancery, corporate cases are heard by judges, without juries, who have many years of experience with corporate issues. Traditionally, this has meant that the Delaware courts are able in most cases to process corporate litigation relatively quickly and effectively. By comparison, many states, including Connecticut, do not have a specialized judiciary for matters relating to corporate issues.

Delaware courts have developed considerable expertise in dealing with corporate legal issues and produced a substantial body of case law construing the DGCL, with multiple cases concerning areas that no Connecticut court has considered. Because the judicial system is based largely on legal precedents, the abundance of Delaware case law should serve to enhance the relative clarity and predictability of many areas of corporate law, which should offer added advantages to the Company by allowing the Company’s Board of Directors and management to make corporate decisions and take corporate actions with greater assurance as to the validity and consequences of those decisions and actions.

The Charter Change from Connecticut to Delaware may also make it easier to attract future candidates willing to serve on the Company’s Board of Directors, because many such candidates are already familiar with Delaware corporate law, including provisions relating to director indemnification, from their past business experience.

In addition, in the opinion of the Board of Directors and the Company, underwriters and other members of the financial services industry may be more willing and better able to assist in capital-raising programs for corporations having the greater flexibility afforded by the DGCL. Based on data reported by the Delaware Secretary of State’s Office, over half of publicly-traded corporations in the United States and more than 60% of the Fortune 500 companies are incorporated in Delaware.

Changes as a Result of Charter Change

If the Charter Change proposal is approved, the Charter Change will effect a change in the legal domicile of the Company and other changes of a legal nature, the most significant of which are described below in the section entitled “Comparison of the Company Shareholders’ Rights Before and After the Charter Change” below. The Charter Change is not expected to affect any of the Company’s material contracts with any third parties and the Company’s rights and obligations under such material contractual arrangements will continue as rights and obligations of the Company as a Delaware corporation. The Charter Change itself will not result in any change in headquarters, business, jobs, management, location of any of the Company’s offices or facilities, number of employees, assets, liabilities or net worth (other than as a result of the costs incident to the Charter Change), or officers and directors of the Company.

54


Mechanism for Charter Change into Delaware

The process for reincorporating the Company from Connecticut to Delaware calls for the Statement of Domestication to be filed with the Connecticut Secretary of State and for the Delaware Certificate of Incorporation and a Certificate of Conversion to be filed with the Delaware Secretary of State at approximately the time desired for the Charter Change to take effect.

The Plan of Domestication

The Charter Change will be effected pursuant to the Plan of Domestication to be entered into by the Company. The Plan of Domestication provides that the Company will convert into a Delaware corporation, with all of the assets, rights, privileges and powers of UNITED-Connecticut, and all property owned by UNITED-Connecticut, all debts due to UNITED-Connecticut, as well as all other causes of action belonging to UNITED-Connecticut immediately prior to the conversion, remaining vested in UNITED-Delaware following the conversion. UNITED-Delaware will remain as the same entity following the conversion. The directors and officers of UNITED-Connecticut immediately prior to the conversion will be the directors and officers of UNITED-Delaware.

At the effective time of the Charter Change, each then-outstanding share of UNITED-Connecticut common stock will automatically be converted into one share of common stock of the resulting Delaware corporation and each shares of UNITED-Connecticut preferred stock will automatically be converted into one share of preferred stock of a like class of the resulting Delaware corporation (there are no shares of preferred stock outstanding). Existing shareholders of the Company will not be required to exchange existing stock certificates for new stock certificates. Following the effective time of the Charter Change, any pre-Charter Change shares submitted for transfer, whether pursuant to a sale or other disposition, or otherwise, will automatically be exchanged for post-Charter Change shares. Shareholders of the Company should not destroy any stock certificate(s) and should not submit any certificate(s).

Pursuant to the Charter Change, UNITED-Delaware will assume all of UNITED-Connecticut’s obligations related to convertible equity securities and other rights to purchase UNITED-Connecticut common stock. UNITED-Connecticut’s outstanding convertible securities consist of options to purchase UNITED-Connecticut common stock granted under the Company’s incentive plans. Each outstanding option to purchase shares of UNITED-Connecticut common stock will be converted into an option to purchase a number of shares of UNITED-Delaware common stock on the same terms and conditions as in effect immediately prior to the Charter Change. In addition, we have granted restricted stock and performance restricted stock awards under the Incentive Plan. Each share of restricted stock and performance restricted stock that entitles the holder to shares of UNITED-Connecticut common stock will be converted into a restricted stock or performance restricted stock that entitles the holder to shares of UNITED-Delaware common stock on the same terms and conditions as in effect immediately prior to the Charter Change.

Effect of Vote for the Charter Change

A vote in favor of the Charter Change proposal is a vote to approve the Plan of Domestication and therefore the Charter Change. A vote in favor of the Charter Change proposal is also effectively a vote in favor of the Delaware Certificate of Incorporation and the Delaware bylaws.

Effective Time

If the Charter Change proposal is approved, the Charter Change will become effective upon the filing of, and at the date and time specified in (as applicable), the Statement of Domestication filed with the Secretary of State of Connecticut and the Certificate of Conversion and the Delaware Certificate of Incorporation filed with the Secretary of State of Delaware, in each case upon acceptance thereof by the Connecticut Secretary of State and the Delaware Secretary of State. If the Charter Change proposal is approved, it is anticipated that the Company’s Board of Directors will cause the Charter Change to be effected as soon as reasonably practicable. However, the Charter Change may be delayed by the Company’s Board of Directors or the Plan of Domestication may be terminated and abandoned by action of

55


the Company’s Board of Directors at any time prior to the effective time of the Charter Change, whether before or after the approval by the Company’s shareholders, if the Company’s Board of Directors determines for any reason that the consummation of the Charter Change should be delayed or would be inadvisable or not in the best interests of the Company and its shareholders, as the case may be.

Effect of Not Obtaining the Required Vote for Approval

If the Charter Change proposal fails to obtain the requisite vote for approval, the Charter Change will not be consummated and the Company will continue to be incorporated in Connecticut and be subject to the Company’s existing certificate of incorporation and bylaws.

Comparison of Shareholders’ Rights Before and After the Charter Change

Because of differences between the CBCA and the DGCL, as well as differences between the Company’s governing documents before and after the Charter Change, the Charter Change will effect certain changes in the rights of the Company’s shareholders. Summarized below are the most significant provisions of the CBCA and DGCL, along with the differences between the rights of the shareholders of the Company before and after the Charter Change that will result from the differences among the CBCA and the DGCL and the differences between UNITED-Connecticut’s certificate of incorporation and bylaws and UNITED-Delaware’s certificate of incorporation and bylaws. The summary below is not an exhaustive list of all differences or a complete description of the differences described, and is qualified in its entirety by reference to the CBCA, the DGCL, UNITED-Connecticut’s certificate of incorporation, UNITED-Connecticut’s bylaws and UNITED-Delaware’s certificate of incorporation and UNITED-Delaware’s bylaws.

56


Provision

UNITED-Connecticut

(Connecticut law)

UNITED-Delaware

(Delaware law)

ELECTIONS; VOTING; PROCEDURAL MATTERS
Number of DirectorsConnecticut law provides that a corporation must have at least one director and may provide in its certificate of incorporation or in its bylaws for a fixed number of directors or a variable number, and for the manner in which the number of directors may be increased or decreased.Delaware law provides that a corporation must have at least one director and that the number of directors shall be fixed by or in the manner provided in the bylaws unless the certificate of incorporation fixes the number of directors.
UNITED-Connecticut’s certificate of incorporation provides that the number of directors shall be no fewer than eight and not more than 16. Subject to this limitation, the number of directors shall be set by a resolution of the board of directors. The number of directors is currently fixed at 10.No change.
Classified Board of DirectorsConnecticut law permits corporations to classify their boards of directors. At least one-fourth of the total number of directors of a Connecticut corporation must be elected annually.Delaware law permits any Delaware corporation to classify its board of directors into as many as three classes divided as equally as possible with staggered terms of office.
UNITED-Connecticut has a classified Board with four classes.UNITED-Delaware will have a classified Board of Directors with three classes. Current directors in the 2019 class (3) will be reassigned to the 2016 class (1) and 2017 class (2).
Removal of DirectorsUnder Connecticut law, any one or all of the directors of a corporation may be removed by the holders of a plurality vote unless the certificate of incorporation provides otherwise. Connecticut does not distinguish between removal of directors with or without cause.Under Delaware law, directors of a corporation with a classified board may be removed only for cause, by the holders of a majority of shares then entitled to vote in an election of directors.
UNITED-Connecticut’s certificate of incorporation provide that any director may be removed, with cause, by a vote of at least two- thirds of the directors then in office or 80% of the issued and outstanding stock entitled to vote on the matter. Amendment of this provision requires that affirmative vote of 80% of the issued and outstanding stock entitled to vote.UNITED-Delaware’s certificate of incorporation will provide that any director may be removed, only for cause, by a majority vote of the issued and outstanding stock entitled to vote on the matter.

57


Provision

UNITED-Connecticut

(Connecticut law)

UNITED-Delaware

(Delaware law)

Board Action by Written ConsentConnecticut law provides that, unless the certificate of incorporation or bylaws provide otherwise, any action required or permitted to be taken at a meeting of the board of directors or of a committee thereof may be taken without a meeting if, before or after the action, a written consent thereto is signed by all the members of the board or committee.Delaware law provides that, unless the certificate of incorporation or bylaws provide otherwise, any action required or permitted to be taken at a meeting of the board of directors or of any committee thereof may be taken without a meeting if all members of the board or committee consent thereto in writing or by electronic transmission and the writing or writings or electronic transmission or transmissions are filed with the minutes of proceedings of the board or committee.
UNITED-Connecticut’s certificate of incorporation and bylaws do not change this statutory rule.UNITED-Delaware’s certificate of incorporation and bylaws will not change this statutory rule.
Special Meetings of ShareholdersConnecticut law provides that, for a public company, shareholders holding 35% or more of outstanding stock may call for a special meeting of shareholders, as can the Board of Directors or other persons authorized in the certificate of incorporation or bylaws.Delaware law permits special meetings of shareholders to be called by the board of directors or by any other person authorized in the certificate of incorporation or bylaws to call a special stockholder meeting.
UNITED-Connecticut’s bylaws provide that special meetings of the shareholders may be called only by the Chairman of the Board or by the Board of Directors.No change.
Cumulative VotingUnless otherwise provided in the certificate of incorporation, directors of a Connecticut corporation are elected by a plurality of the votes cast by the shares entitled to vote in the election at a meeting at which a quorum is present. Connecticut law permits cumulative voting in the election of directors as long as the certificate of incorporation provides for cumulative voting and certain procedures for the exercise of cumulative voting are followed.A Delaware corporation may provide for cumulative voting in the corporation’s certificate of incorporation.
UNITED-Connecticut does not have a provision granting cumulative voting rights in the election of its directors in its certificate of incorporation or bylaws.No change.

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Provision

UNITED-Connecticut

(Connecticut law)

UNITED-Delaware

(Delaware law)

VacanciesAll vacancies on the board of directors of a Connecticut corporation may be filled by a majority of the remaining directors, though less than a quorum, unless the certificate of incorporation provide otherwise. Unless otherwise provided in the certificate of incorporation, the board may fill the vacancies for the remainder of the term of office of resigning director or directors.All vacancies on the board of directors of a Delaware corporation may be filled by a majority of the remaining directors, though less than a quorum, unless the certificate of incorporation provide otherwise. Unless otherwise provided in the certificate of incorporation, the board may fill the vacancies for the remainder of the term of office of resigning director or directors.
On November 14, 2013, the board of directors of UNITED-Connecticut adopted a resolution amending UNITED- Connecticut’s bylaws, effective as of the effective time of the merger between Rockville Financial, Inc. and United Financial Bancorp, Inc., to provide that any vacancy occurring on the board of directors, including a vacancy resulting from an increase in the number of directors, may be filled by the affirmative vote of a majority of the remaining directors although less than a quorum of the board of directors; provided, however, that, during the three–year period following the merger, the board of directors will consider for election only nominees recommended by the governance and nominating committee. A director elected to fill a vacancy, including a vacancy resulting from an increase in the number of directors, will be elected to serve for a term expiring at the next annual meeting at which directors are elected and which such director’s successor will have been elected and qualified.No change.

59


Provision

UNITED-Connecticut

(Connecticut law)

UNITED-Delaware

(Delaware law)

Stockholder Voting ProvisionsUnder Connecticut law, a majority of the voting power, which includes the voting power that is present in person or by proxy, regardless of whether the proxy has authority to vote on all matters, generally constitutes a quorum for the transaction of business at a meeting of shareholders. Generally, action by the shareholders on a matter other than the election of directors is approved if the number of votes cast in favor of the action exceeds the number of votes cast in opposition to the action, unless otherwise provided in Connecticut law or the certificate of incorporation or bylaws of the corporation. Generally, directors are elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on election of directors. Where a separate vote by a class or series or classes or series is required, a majority of the voting power of the class or series that is present or by proxy, regardless of whether the proxy has authority to vote on all matters, generally constitutes a quorum for the transaction of business. Generally, an act by the shareholders of each class or series is approved if a majority of the voting power of a quorum of the class or series votes for the action.Under Delaware law, a majority of the shares entitled to vote, present in person or represented by proxy, generally constitutes a quorum at a meeting of shareholders. Generally, in all matters other than the election of directors, the affirmative vote of the majority of shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter constitutes the act of shareholders. Directors are generally elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors. Where a separate vote by a class or series or classes or series is required, a majority of the outstanding shares of such class or series or classes or series, present in person or represented by proxy, generally constitutes a quorum entitled to take action with respect to that vote on that matter and, generally, the affirmative vote of the majority of shares of such class or series or classes or series present in person or represented by proxy constitutes the act of such class or series or classes or series.
UNITED-Connecticut’s certificate and bylaws do not change these statutory rules.No change.

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Provision

UNITED-Connecticut

(Connecticut law)

UNITED-Delaware

(Delaware law)

Stockholder Vote for Mergers and Other Corporate ReorganizationsIn general, Connecticut requires authorization by an absolute majority of outstanding shares entitled to vote, as well as approval by the board of directors, with respect to the terms of a merger or a sale of substantially all of the assets of the corporation. So long as the surviving corporation is organized in Connecticut, Connecticut law does not generally require a stockholder vote of the surviving corporation in a merger if: (a) the plan of merger does not amend the existing certificate of incorporation; (b) each share of stock of the surviving corporation outstanding immediately before the effective date of the merger is an identical outstanding share after the merger; (c) the number of voting shares outstanding immediately after the merger, plus the number of voting shares issued as a result of the merger, either by the conversion of securities issued pursuant to the merger or the exercise of rights and warrants issued pursuant to the merger, will not exceed by more than 20% of the total number of voting shares of the surviving domestic corporation outstanding immediately before the merger; and (d) the number of participating shares outstanding immediately after the merger, plus the number of participating shares issuable as a result of the merger, either by the conversion of securities issued pursuant to the merger or the exercise of rights and warrants issued pursuant to the merger, will not exceed by more than 20 percent the total number of participating shares outstanding immediately before the merger.In general, Delaware requires authorization by an absolute majority of outstanding shares entitled to vote, as well as approval by the board of directors, with respect to the terms of a merger or a sale of substantially all of the assets of the corporation. Delaware law does not generally require a stockholder vote of the surviving corporation in a merger (unless the corporation provides otherwise in its certificate of incorporation) if: (a) the plan of merger does not amend the existing certificate of incorporation; (b) each share of stock of the surviving corporation outstanding immediately before the effective date of the merger is an identical outstanding share after the merger; and (c) either no shares of common stock of the surviving corporation and no shares, securities or obligations convertible into such stock are to be issued or delivered under the plan of merger, or the authorized unissued shares or shares of common stock of the surviving corporation to be issued or delivered under the plan of merger plus those initially issuable upon conversion of any other shares, securities or obligations to be issued or delivered under such plan do not exceed 20% of the shares of common stock of such constituent corporation outstanding immediately prior to the effective date of the merger.
UNITED-Connecticut’s certificate provide that a merger or sale of all or substantially all of the assets of the Company requires the vote of 66 2/3% of outstanding shares entitled to vote. Amendment of this provision requires the vote of 80% of outstanding shares entitled to vote.No change, except 80% vote requirement is removed.

61


Provision

UNITED-Connecticut

(Connecticut law)

UNITED-Delaware

(Delaware law)

Advance Notice of Stockholder ProposalsConnecticut law permits a corporation to include in its bylaws provisions requiring advance notice of shareholder proposals.Delaware law permits a corporation to include in its bylaws provisions requiring advance notice of shareholder proposals.
UNITED- Connecticut’s bylaws establish an advance notice procedure with regard to director nominations and other new business proposals to be brought before UNITED- Connecticut’s annual meeting by stockholders. For nominations to be properly brought before an annual meeting of stockholders, such nominations must be stated in writing and filed with UNITED- Connecticut’s secretary at least 100 days prior to any meeting called for the election of directors; provided however, that if fewer than 100 days’ notice of the meeting is given to stockholders, such nominations must be filed with UNITED- Connecticut’s secretary at least 10 business days following the earlier of (a) the date on which notice of such meeting was given to stockholders; or (b) the date on which a public announcement of such meeting was first made. All nominations must comply with the board of directors’ nomination policy.No change.
For new business to be properly brought before an annual meeting by a stockholder, such new business must be stated in writing and filed with UNITED- Connecticut’s secretary at least 30 days before the date of the annual meeting, and all business so stated, proposed, and filed will be considered at the annual meeting. However, no other proposal other than at the direction of the board of directors will be acted upon at the annual meeting.

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Provision

UNITED-Connecticut

(Connecticut law)

UNITED-Delaware

(Delaware law)

Amendments to the Certificate of Incorporation or Certificate of IncorporationConnecticut law requires the adoption of a resolution by the board of directors followed by the affirmative vote of the majority of shares present or in person and entitled to vote to approve any amendment to the certificate of incorporation, unless a greater percentage vote is required by the certificate of incorporation. If any proposed amendment would adversely alter or change any preference or any relative or other right given to any class or series of outstanding shares, then the amendment must be approved by the vote, in addition to the affirmative vote otherwise required, of the holders of shares representing a majority of the voting power of each class or adversely affected by the amendment.Under the DGCL, shareholders are not entitled to enact an amendment to the certificate of incorporation without appropriate action taken by the board of directors. Amendments to the certificate of incorporation generally require that the board of directors adopt a resolution setting forth the amendment, declaring its advisability and submitting it to a vote of the shareholders.
Assuming approval of Proposal 4 above, UNITED-Connecticut’s certificate of incorporation may be amended by the vote of at least a majority of each class of outstanding shares entitled to vote as a separate class on such matter.No change.
Amendments to the BylawsConnecticut law provides that, unless otherwise prohibited by any bylaws adopted by the shareholders, the board of directors may amend any bylaw, including any bylaw adopted by the shareholders. The certificate of incorporation may grant the authority to adopt, amend or repeal bylaws exclusively to the directors.Delaware law provides that the power to adopt, amend, or repeal the bylaws shall be vested in the shareholders entitled to vote, provided that the certificate of incorporation may confer such power on the board of directors, although the power vested in the shareholders is not divested or limited where the board of directors also has such power.

63


Provision

UNITED-Connecticut

(Connecticut law)

UNITED-Delaware

(Delaware law)

Amendments to the BylawsOn November 14, 2013, the board of directors of UNITED- Connecticut adopted a resolution amending UNITED- Connecticut’s bylaws, effective as of the effective time of the Rockville/United merger, to provide that the bylaws may be amended by: (a) a majority vote of the board of directors, unless a different vote requirement is prescribed in the bylaws or (b) a majority vote of the votes cast by the stockholders at any meeting, provided that an amendment by the stockholders to the provisions of Articles II (relating to stockholders), III (relating the board of directors) or XII (relating to amendments to the bylaws) requires a vote of not less than 80% of the outstanding capital stock. No bylaws may be amended or repealed unless written notice of such proposed action has been given with respect to the meeting at which such action will be taken. In addition, the bylaws provide that during the three–year period following the merger, any amendment or repeal or provision inconsistent with the provisions of Article IV of the bylaws (relating to Committees) must be adopted by an affirmative vote of at least two-thirds of the full board of directors.No change, except 80% vote requirement is removed.

64


Provision

UNITED-Connecticut

(Connecticut law)

UNITED-Delaware

(Delaware law)

INDEMNIFICATION OF OFFICERS AND DIRECTORS AND ADVANCEMENT OF

EXPENSES; LIMITATION ON PERSONAL LIABILITY

IndemnificationA Connecticut corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, except an action by or in the right of the corporation, by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with the action, suit or proceeding, if he acted in “good faith” and in a manner he reasonably believed to be in and not opposed to the best interests of the corporation, and with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. However, with respect to actions by or in the right of the corporation, no indemnification shall be made with respect to any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which such court shall deem proper. A director or officer who is successful, on the merits or otherwise, in defense of any proceeding subject to the Connecticut corporate statutes’ indemnification provisions must be indemnified by the corporation for reasonable expenses incurred in connection therewith, including attorneys’ feesThrough, among other means, a majority vote of disinterested directors, a corporation may indemnify any director, officer, employee or agent who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding (other than an action by or in the right of the corporation), by reason of service in that capacity, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding if such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, and with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. However, with respect to actions by or in the right of the corporation, no indemnification shall be made with respect to any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Court of Chancery or the court in which such action or suit is brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which such court shall deem proper. A director or officer who is successful, on the merits or otherwise, in defense of any proceeding subject to the Delaware corporate statutes’ indemnification provisions must be indemnified by the corporation for reasonable expenses incurred in connection there with, including attorneys’ fees.

65


Provision

UNITED-Connecticut

(Connecticut law)

UNITED-Delaware

(Delaware law)

IndemnificationUNITED- Connecticut’s bylaws provide that UNITED- Connecticut will indemnify and reimburse each of its current and former directors, officers or employees, or any other agents or persons performing on behalf of UNITED- Connecticut, and their heirs, executors, or administrators, to the fullest extent permitted by law, including but not limited to those situations for which reimbursement and indemnification is permitted under Sections 33-770 through 33-778, inclusive, of the CBCA. In no event will any indemnification payments made by UNITED- Connecticut exceed the amount permissible under the CBCA or the limitations on indemnification imposed by Section 18(k) of the Federal Deposit Insurance Act and the regulations issued thereunder by the Federal Deposit Insurance CorporationNo change except that references to law will be to the DGCL.
Advancement of ExpensesUnder Connecticut law, the certificate of incorporation, bylaws or an agreement made by the corporation may provide that the corporation must pay advancements of expenses in advance of the final disposition of the action, suit or proceedings upon receipt of an undertaking by or on behalf of the director or officer to repay the amount if it is ultimately determined that he or she is not entitled to be indemnified by the corporation.Delaware law provides that expenses incurred by an officer or director in defending any civil, criminal, administrative or investigative action, suit or proceeding may be paid by the corporation in advance of the final disposition of the action, suit or proceeding upon receipt of an undertaking by or on behalf of the director or officer to repay the amount if it is ultimately determined that he or she is not entitled to be indemnified by the corporation. A Delaware corporation has the discretion to decide whether or not to advance expenses, unless its certificate of incorporation or bylaws provides for mandatory advancement.
UNITED-Connecticut’s certificate and bylaws allow for the advancement of expenses.No change.

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Provision

UNITED-Connecticut

(Connecticut law)

UNITED-Delaware

(Delaware law)

Limitation on Personal Liability of DirectorsSection 33-636(b)(4) of the CBCA allows UNITED-Connecticut to include in its certificate of incorporation a provision limiting the personal liability of a director to UNITED-Connecticut or its stockholders for monetary damages in respect of claims for breach of duty as a director, and UNITED-Connecticut has provided in its certificate of incorporation that each director’s liability will be limited to the amount of the compensation received by such director for serving on the board during the year of the violation, provided such breach did not (a) involve a knowing and culpable violation of law by the director, (b) enable the director or an associate, as defined in Section 33- 843(3) of the CBCA, to receive an improper personal economic gain, (c) show a lack of good faith and a conscious disregard for the duty of the director to UNITED-Connecticut under circumstances in which the director was aware that his or her conduct or omission created an unjustifiable risk of serious injury to UNITED-Connecticut, (d) constitute a sustained and unexcused pattern of inattention that amounted to an abdication of the director’s duty to UNITED-Connecticut, or (e) create liability under Section 36a-58 of the Connecticut General Statutes. Any lawful repeal or modification of such limitations of liability by the stockholders and the board of directors will not adversely affect any right or protection of a director existing at or prior to the time of such repeal or modification.A Delaware corporation is permitted to adopt provisions in its certificate of incorporation limiting or eliminating the liability of a director to a company and its shareholders for monetary damages for breach of fiduciary duty as a director, provided that such liability does not arise from certain proscribed conduct, including breach of the duty of loyalty, acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law or liability to the corporation based on unlawful dividends or distributions or improper personal benefit.
UNITED-Delaware’s certificate of incorporation will provide for elimination of director liability to the fullest extent permitted by the DGCL. It will continue the reference to Section 36a-58 of the Connecticut General Statutes as an exception.

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Provision

UNITED-Connecticut

(Connecticut law)

UNITED-Delaware

(Delaware law)

DIVIDENDS
Declaration and Payment of DividendsUnder Connecticut law, a corporation may make distributions to its shareholders, including by the payment of dividends, provided that, after giving effect to the distribution, the corporation would be able to pay its debts as they become due in the usual course of business and the corporation’s total assets would not be less than the sum of its total liabilities plus any amount needed, if the corporation were to be dissolved at the time of the distribution, to satisfy the preferential rights of shareholders whose rights are superior to those receiving the distribution.Delaware law is more restrictive than Connecticut law with respect to when dividends may be paid. Under Delaware law, unless further restricted in the certificate of incorporation, a corporation may declare and pay dividends, out of surplus, or if no surplus exists, out of net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year, only if the amount of capital of the corporation is greater than or equal to the aggregate amount of the capital represented by the issued and outstanding stock of all classes having a preference upon the distribution of assets. In addition, Delaware law provides that a corporation may redeem or repurchase its shares only if the capital of the corporation is not impaired and such redemption or repurchase would not impair the capital of the corporation.
UNITED-Connecticut’s bylaws state that dividends may be declared and paid from the accumulated profits of the Company in excess of the amounts reserved over and above the capital stock paid in, and the Board may declare stock dividends of the unissued capital stock of the Company.UNITED-Delaware’s bylaws will not change these statutory rules.

Dissenters’ Rights

Holders of record of shares of the Company’s common stock who do not vote in favor of the Charter Change or consent thereto in writing will not be entitled to dissenters’ rights in connection with the Charter Change under Sections 33-856 of the CBCA.

Accounting Treatment of the Charter Change

The Charter Change has no effect from an accounting perspective because there is no change in the entity as a result of the Charter Change. Accordingly, the historical consolidated financial statements of UNITED-Connecticut previously reported to the SEC as of and for all periods through the date of this proxy statement remain the consolidated financial statements of UNITED-Delaware.

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Regulatory Approval

To the Company’s knowledge, the only required regulatory or governmental approval or filing necessary in connection with the consummation of the Charter Change will be the filing of the Statement of Domestication with the Secretary of State of Connecticut and the filing of the Certificate of Incorporation and the Certificate of Conversion with the Secretary of State of Delaware, and a subsequent listing application with the NASDAQ.

Material United States Federal Income Tax Consequences of the Charter Change

The following discussion summarizes the material United States federal income tax consequences of the Charter Change that are expected to apply generally to holders of the Company’s common stock. This summary is based upon current provisions of the Code, existing Treasury Regulations and current administrative rulings and court decisions, all of which are subject to change and to differing interpretations, possibly with retroactive effect.

This summary only applies to a holder of the Company’s common stock that is a “U.S. person,” defined to include:

a citizen or resident of the United States;

a corporation created or organized in or under the laws of the United States, or any political subdivision thereof (including the District of Columbia);

an estate the income of which is subject to United States federal income taxation regardless of its source;

a trust if either:

a court within the United States is able to exercise primary supervision over the administration of such trust and one or more United States persons have the authority to control all substantial decisions of such trust, or

the trust has a valid election in effect to be treated as a United States person for United States federal income tax purposes; and

any other person or entity that is treated for United States federal income tax purposes as if it were one of the foregoing.

A holder of the Company’s common stock other than a “U.S. person” as so defined is, for purposes of this discussion, a “non-U.S. person.” If a partnership holds the Company’s common stock, the tax treatment of a partner will generally depend on the status of the partner and the activities of the partnership. If you are a partner of a partnership holding the Company’s common stock, you should consult your tax advisor.

This summary assumes that holders of the Company’s common stock hold their shares of the Company’s common stock as capital assets within the meaning of Section 1221 of the Code (generally, property held for investment). No attempt has been made to comment on all United States federal income tax consequences of the Charter Change that may be relevant to particular holders, including holders:

who are subject to special treatment under United States federal income tax rules such as dealers in securities, financial institutions, non-U.S. persons, mutual funds, regulated investment companies, real estate investment trusts, insurance companies, or tax-exempt entities;

who are subject to the alternative minimum tax provisions of the Code;

who acquired their shares in connection with stock option or stock purchase plans or in other compensatory transactions;

who hold their shares as qualified small business stock within the meaning of Section 1202 of the Code; or

who hold their shares as part of an integrated investment such as a hedge or as part of a hedging, straddle or other risk reduction strategy.

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In addition, the following discussion does not address the tax consequences of the Charter Change under state, local and foreign tax laws. Furthermore, the following discussion does not address any of the tax consequences of transactions effectuated before, after or at the same time as the Charter Change, whether or not they are in connection with the Charter Change.

Accordingly, holders of the Company’s common stock are advised and expected to consult their own tax advisers regarding the federal income tax consequences of the Charter Change in light of their personal circumstances and the consequences of the Charter Change under state, local and foreign tax laws.

The Company believes that the Charter Change of the Company from Connecticut to Delaware will constitute a reorganization within the meaning of Section 368(a)(1)(F) of the Code. Assuming that the Charter Change will be treated for United States federal income tax purposes as a reorganization within the meaning of Section 368(a)(1)(F) of the Code and subject to the qualifications and assumptions described in this proxy statement: (i) holders of the Company’s common stock will not recognize any gain or loss as a result of the consummation of the Charter Change, (ii) the aggregate tax basis of shares of the resulting Delaware corporation’s common stock received in the Charter Change will be equal to the aggregate tax basis of the shares of the Company’s common stock converted therefor, and (iii) the holding period of the shares of the resulting Delaware corporation’s common stock received in the Charter Change will include the holding period of the shares of the Company’s common stock converted therefor.

THE PRECEDING DISCUSSION IS INTENDED ONLY AS A SUMMARY OF CERTAIN UNITED STATES FEDERAL INCOME TAX CONSEQUENCES OF THE CHARTER CHANGE AND DOES NOT PURPORT TO BE A COMPLETE ANALYSIS OR DISCUSSION OF ALL OF THE CHARTER CHANGE’S POTENTIAL TAX EFFECTS. HOLDERS OF THE COMPANY’S COMMON STOCK ARE URGED TO CONSULT THEIR OWN TAX ADVISORS AS TO THE SPECIFIC TAX CONSEQUENCES TO THEM OF THE CHARTER CHANGE AND THE APPLICABILITY AND EFFECT OF FEDERAL, STATE, LOCAL AND OTHER APPLICABLE TAX LAWS.

Approval Requirements

Assuming approval by the shareholders of Proposal 4, the affirmative vote of holders of record of not less than a majority of the outstanding shares of common stock on the record date is required for approval of the proposed change in the Company’s state of incorporation from Connecticut to Delaware. Because the affirmative vote of a majority of our outstanding shares is required to approve this proposal, broker non-votes and abstentions have the same effect as a vote against this proposal. If Proposal 4 is not approved, then an 80% vote of our outstanding shares is required to approve the Charter Change.

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTEFOR THE PROPOSAL

TO CHANGE THE COMPANY’S STATE OF INCORPORATION FROM CONNECTICUT TO

DELAWARE.

RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS

(Proposal 2)7)

The Audit Committee has appointed the firm of Wolf & Company, P.C. to be independent auditors for RockvilleUnited for the year ending December 31, 2013,2015, subject to ratification of the appointment by Rockville’sUnited’s shareholders. Unless otherwise indicated, properly executed proxies will be voted in favor of ratifying the appointment of Wolf & Company, P.C., independent certified public accountants, to audit the books and accounts of RockvilleUnited for the year ending December 31, 2013.2015. If Rockville’sUnited’s shareholders do not ratify the appointment, the Audit Committee will consider a change in auditors for the next year.

Wolf & Company, P.C. has advised RockvilleUnited that they are independent accountants with respect to Rockville,the Company, within the meaning of standards established by the Independence Standards Board and federal securities laws administered by the SEC.

Assuming the presence of a quorum at the Annual Meeting, the affirmative vote of the majority of the votes cast is required to ratify the appointment of Wolf & Company, P.C. as Rockville’s independent auditors for the year ending December 31, 2013.

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Representatives of Wolf & Company, P.C., the Company’s independent registered public accounting firm for the year ended December 31, 2012,2014, are expected to be present at the Annual Meeting. They will be given an opportunity to make a statement if they desire to do so and will be available to respond to appropriate questions.

THE BOARD OF DIRECTORS RECOMMENDS THAT SHAREHOLDERS VOTEFOR

RATIFICATION OF THE APPOINTMENT OF WOLF & COMPANY, P.C. AS ROCKVILLE’S UNITED’S

INDEPENDENT AUDITORS FOR THE YEAR ENDING DECEMBER 31, 2013.2015.

OTHER BUSINESS

As of the date of this Proxy Statement, the Board of Directors knows of no matters to be brought before the Annual Meeting other than procedural matters incident to the conduct of the Annual Meeting. If further business is properly presented, the proxy holders will vote proxies as determined by a majority of the Board of Directors.

SHAREHOLDER PROPOSALS FOR 20142016 ANNUAL MEETING

Pursuant to the proxy solicitation regulations of the SEC, any shareholder proposal intended for inclusion in the Company’s proxy statement and form of proxy relating to the Company’s 20142016 Annual Meeting of Shareholders must be received by the Company by November 17, 2013.a reasonable time before the Company begins to print and send its proxy materials. The Company’s 20142016 Annual Meeting of Shareholders is currently scheduled to take place on May 15, 2014.19, 2016. Nothing in this paragraph shall be deemed to require RockvilleUnited to include in its proxy statement and form of proxy any shareholder proposal which does not meet the requirements of the SEC in effect at the time.

In addition, the Company’s Bylaws establish procedures with regard to director nominations and other business proposals to be brought before the 2016 Annual Meeting of Shareholders but not included in the Company’s proxy statement or form of proxy for that meeting. Any new business to be taken up at the 2016 Annual Meeting other than at the direction of the Company’s Board of Directors must be stated in writing and filed with the Company’s corporate secretary at least thirty (30) days before the date of the 2016 Annual Meeting, and all business so stated, proposed, and filed will be considered at such Annual Meeting; but no other proposal other than at the direction of the Board of Directors will be acted upon at the Annual Meeting. Any nominations of directors by stockholders of record must be stated in writing and filed with the Company’s corporate secretary at least one hundred (100) days prior to the 2016 Annual Meeting; provided however, that if fewer than 100 days’ notice of the meeting is given to shareholders, such nomination must be filed with the corporate secretary at least ten (10) business days following the earlier of (1) the date on which notice of such meeting was given to shareholders; or (2) the date on which a public announcement of such meeting was first made. All nominations must comply with the Company’s nomination policy.

46


ANNUAL REPORTS

Copies of the Company’s 20122014 Annual Report to Shareholders, which includes its Annual Report to the SEC on Form 10-K for the year ended December 31, 2012,2014, accompanying this proxy statement are not a part of the proxy solicitation materials. The Annual Report to the SEC accompanying this proxy statement does not include the Form 10-K’s exhibits filed with the SEC. These exhibits are listed in the Form 10-K and can be viewed on the SEC’s website (www.sec.gov) or, upon written request, we will provide any recipient of this proxy statement, free of charge, all exhibits filed at the SEC with the Form 10-K. Requests should be directed to Marliese L. Shaw, Corporate Secretary and Investor Relations, RockvilleUnited Financial Bancorp, Inc., 25 Park Street, Rockville,45 Glastonbury Boulevard, Glastonbury, CT 06066.06033.

71


HOUSEHOLDING OF ANNUAL MEETING MATERIALS

Some banks, brokers and other nominee record holders may be participating in the practice of “householding” proxy statements, annual reports and notices of Internet availability of proxy materials. This means that only one copy of such materials may have been sent to multiple shareholders in your household. We will promptly deliver a separate copy of any such document to you if you write or call us at the following address: Marliese L. Shaw, Corporate Secretary and Investor Relations, United Financial Bancorp, Inc., 45 Glastonbury Boulevard, Glastonbury, CT 06033. Ms. Shaw can also be reached by e-mail at mshaw@bankatunited.com. You can request a copy of any such document by visiting the 2015 Annual Meeting page of our Internet website at www.unitedfinancialinc.com. If you want to receive separate copies of the annual report, proxy statement or notice of Internet availability of proxy materials in the future, or if you are receiving multiple copies and would like to receive only one copy for your household, you should contact your bank, broker or other nominee record holder, or you may contact us at the above address.

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY STATEMENTMATERIALS FOR THE SHAREHOLDER MEETING TO BE HELD ON MAY 21, 2015.

Important Notice Regarding the Availability of Proxy Materials for the Shareholder Meeting to be held on May 16, 2013. The proxy statement, the 20122014 Annual Report to Shareholders and the form of proxy are available in the “Financial Information - Annual Meeting Materials” portion of the Investor Relations section of the Company’s website (www.rockvillefinancialinc.comwww.unitedfinancialinc.com, click on “Financial Information” and then click on “Annual Meeting Materials”).

The Board of Directors urges each shareholder, whether or not he or she intends to be present at the Annual Meeting, to complete, sign and return the enclosed proxy as promptly as possible.

 

By Order of the Board of Directors

/s/ Judy Keppner Clark

Marliese L. Shaw

Judy Keppner Clark

Secretary

Marliese L. Shaw
Corporate Secretary

 

4772


Exhibit A

Section 13. Amendment of Certificate of Incorporation.

Except as provided in Section 5, no amendment, addition, alteration, change or repeal of this Certificate of Incorporation shall be made, unless such is first proposed by the Board of Directors of the Corporation and thereafter approved by the shareholders by the affirmative vote of a majority of the total votes eligible to be cast at a meeting.; provided that, a vote of not less than eighty percent (80%) of the total votes eligible to be cast will be required to amend Sections 5, 6, 7, 8, 9, 10, 11, 12, 13 and 14.

1


Exhibit B

Section 5. Authorized Capital Stock.

The total number of shares of all classes of capital stock which the Corporation is authorized to issue issixty-twoone hundred twenty two million (62,000,000122,000,000), of whichsixtyone hundred twenty million (60,000,000120,000,000) shall be common stock, no par value per share, and of which two million shares (2,000,000) shall be preferred stock, no par value per share. The shares may be issued from time to time as authorized by the Board of Directors without further approval of shareholders, except as otherwise provided in this Section 45, or subject to applicable law. The consideration for the issuance of the shares shall be paid in full before their issuance and otherwise shall comply with all requirements of Connecticut law. Upon payment of such consideration, such shares shall be deemed to be fully paid and non-assessable.

1


Exhibit C

PLAN OF DOMESTICATION

OF

UNITED FINANCIAL BANCORP, INC.

This Plan of Domestication has been adopted by United Financial Bancorp, Inc., a Connecticut corporation (the “Corporation”) as of [    ], 2015.

WITNESSETH:

WHEREAS, the Corporation is a corporation duly organized and existed under the laws of the State of Connecticut; and

WHEREAS, the Corporation wishes to change its domicile of incorporation from Connecticut to Delaware by domesticating in Delaware on the terms set forth herein.

NOW THEREFORE, the Corporation agrees as follows:

1. The Corporation shall be domesticated in the State of Delaware.

2. The name of the Corporation immediately prior to the domestication shall, automatically upon such domestication, be the name of the Corporation immediately after the domestication.

3. The Corporation shall be domesticated as a Delaware business corporation in conformity with the provisions of this Plan of Domestication, as the same may be amended in conformity with Paragraph 6, below (the “Plan”).

4. There shall be no reclassification of the shares of the Corporation by reason of the domestication, whether into other shares or other securities, obligations, rights to acquire shares or other securities, cash, other property, or any combination of the foregoing.

5. The Certificate of Incorporation of the Corporation existing immediately prior to the domestication shall, automatically upon such domestication, be replaced by the Amended and Restated Certificate of Incorporation set forth inAnnex A hereto.

6. The Bylaws of the Corporation existing immediately prior to the domestication shall, automatically upon such domestication, be replaced by the Bylaws set forth inAnnex B hereto.

7. The Plan may be amended before filing the documents required by the laws of Connecticut or Delaware to consummate the domestication except that, subsequent to the approval of the Plan by the stockholders of the Corporation, the Plan may not be amended to make any changes that are prohibited by applicable law, including any change that would adversely affect any of the stockholders of the Corporation in any material respect.

[SIGNATURE PAGE TO FOLLOW]


This Plan of Domestication has been adopted by the Board of Directors of United Financial Bancorp, Inc. as of the date set forth above.

UNITED FINANCIAL BANCORP, INC.,
a Connecticut corporation
By:

Name:
Title:


ANNEX A

AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

[attached]


Exhibit C

Annex A

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

UNITED FINANCIAL BANCORP, INC.

(A Delaware Corporation)

The corporation was originally formed under the Connecticut Business Corporation Act and has been converted to a Delaware corporation under the Delaware General Corporation Law.

Section 1. Name of Corporation.

The name of the corporation shall be UNITED FINANCIAL BANCORP, INC., hereinafter referred to as the “Corporation.”

Section 2. Registered Office and Registered Agent.

The street address of the initial registered office of the Corporation is                     .

Section 3. Duration.

The duration of the Corporation is perpetual.

Section 4. Purpose and Powers of Corporation.

The nature of the activities to be transacted and the purposes to be promoted, carried out and engaged in by the Corporation are the following:

A. To pursue any or all of the lawful objectives of a bank holding company chartered pursuant to the laws of the State of Delaware, and to exercise all of the express, implied and incidental powers conferred by such laws and by all amendments or supplements to such laws, subject to all lawful and applicable rules, regulations and orders of the Banking Commissioner of the State of Connecticut (the “Commissioner”), the Federal Reserve Board, or any other state or federal agency having the authority to supervise or regulate the Corporation and the conduct of its business.

B. Subject to the foregoing paragraph A hereof, to engage generally in any business that may be promoted, carried out and engaged in by a corporation organized under the Delaware General Corporation Law.


Section 5. Authorized Capital Stock.

The total number of shares of all classes of capital stock which the Corporation is authorized to issue is one hundred twenty two million (122,000,000), of which one hundred twenty million (120,000,000) shall be common stock, no par value per share, and of which two million shares (2,000,000) shall be preferred stock, no par value per share. The shares may be issued from time to time as authorized by the Board of Directors without further approval of shareholders, except as otherwise provided in this Section 5, or subject to applicable law. The consideration for the issuance of the shares shall be paid in full before their issuance and otherwise shall comply with all requirements of Connecticut law. Upon payment of such consideration, such shares shall be deemed to be fully paid and nonassessable.

Nothing contained in this Section 5 (or in any other sections herein) shall entitle the holders of any class or series of capital stock to vote as a separate class or series or to more than one vote per share.

A description of the different classes and series (if any) of the Corporation’s capital stock and a statement of the designations, and the relative rights, preferences and limitations of the shares of each class of and series (if any) of capital stock are as follows:

A.Common Stock. Except as provided in this Section 5 (or in any resolution or resolutions adopted by the Board of Directors pursuant hereto), the holders of the Common Stock shall exclusively possess all voting power. Each holder of shares of Common Stock shall be entitled to one vote for each share held by such holder. There shall be no cumulative voting rights in the election of Directors. Each share of Common Stock shall have the same relative rights as and be identical in all respects with all other shares of Common Stock.

Whenever there shall have been paid, or declared and set aside for payment, to the holders of the outstanding shares of any class of stock having preference over the Common Stock as to the payment of dividends, the full amount of dividends and of any sinking fund or retirement fund or other retirement payments, if any, to which such holders are respectively entitled in preference to the Common Stock, then dividends may be paid on the Common Stock and on any class or series of stock entitled to participate therewith as to dividends, out of any assets legally available for the payment of dividends, but only when and as declared by the Board of Directors.

In the event of any liquidation, dissolution or winding up of the Corporation, after there shall have been paid to or set aside for the holders of any class having preferences over the Common Stock in the event of liquidation, dissolution or winding up of the Corporation the full preferential amounts of which they are respectively entitled, the holders of the Common Stock, and of any class or series of stock entitled to participate therewith, in whole or in part, as to distribution of assets, shall be entitled after payment or provision for payment of all debts and liabilities of the Corporation, to receive the remaining assets of the Corporation available for distribution, in cash or in kind.

2


B.Preferred Stock. Shares of preferred stock may be issued from time to time in one or more series as may from time to time be determined by the Board of Directors, each of such series to be distinctly designated. All shares of any one series of preferred stock shall be identical. Shares of preferred stock shall not entitle the holder or holders thereof to vote except when specifically authorized to vote by the Board of Directors or if required to vote as a class pursuant to the Delaware General Corporation Law. All other preferences and relative, participating, optional and other special rights of each of such series, and the qualifications, limitations or restrictions thereof, if any, may differ from those of any and all other series at any time outstanding; and the Board of Directors of the Corporation is hereby expressly granted exclusive authority to fix, by resolution or resolutions adopted prior to the issuance of any shares of a particular series of preferred stock, the designations, preferences and relative, participating, optional and other special rights, and the qualifications, limitations and restrictions, of such series including, but without limiting the generality of the foregoing, the following:

i) The distinctive designation of and the number of shares of preferred stock that shall constitute such series, which number may be increased or decreased (but not below the number of shares then outstanding) from time to time by action of the Board of Directors;

ii) The rate and times at which, and the terms and conditions on which, dividends, if any, on preferred stock of such series shall be paid, the extent of the preference or relation, if any, of such dividends to the dividends payable on any other class or classes or series of the same or other classes of capital stock and whether (and the dates from which) such dividends shall be cumulative or noncumulative;

iii) The right, if any, of the holders of preferred stock of such series to convert the shares thereof into or exchange the same for, shares of any other class or classes or of any series of the same or any other class or classes of capital stock of the Corporation or any other corporation and the terms and conditions of such conversion or exchange;

iv) Whether or not preferred stock of such series shall be subject to redemption, and the redemption price or prices and the time or times at which, and the terms and conditions on which, the shares of such series may be redeemed;

v) The rights, if any, of the holders of preferred stock of such series upon the voluntary or involuntary liquidation, merger, consolidation, distribution or sale of assets, dissolution or winding-up of the Corporation;

vi) The terms of the sinking fund or redemption or purchase account, if any, to be provided for the preferred stock of such series; and

vii) The voting rights, if any, of the holders of preferred stock in any particular series.

3


Unless otherwise provided in this Certificate of Incorporation or in the Bylaws of the Corporation, to constitute a quorum for the transaction of business on any matter at a meeting of shareholders, there must be present, in person or by proxy, a majority of the shares of voting stock of the Corporation entitled to vote thereon. The shareholders present at a duly held meeting at which a quorum is present may continue to transact business notwithstanding the withdrawal of enough shares to leave less than a quorum.

The Corporation may from time to time, pursuant to authorization by the Board of Directors of the Corporation and without action by the shareholders, purchase or otherwise acquire shares of any class, bonds, debentures, notes, scrip, warrants, obligations, evidences of indebtedness, or other securities of the Corporation in such a manner, upon such terms, and in such amounts as the Board of Directors shall determine; subject, however, to such limitations or restrictions, if any, as are contained in the express terms of any class of shares of the Corporation outstanding at the time of the purchase or acquisition in question or as are imposed by law or by regulation or order of the Commissioner. Such shares shall constitute authorized but unissued shares.

Section 6. Restrictions on Ownership of Stock

Notwithstanding anything contained in this Certificate of Incorporation or Bylaws of the Corporation to the contrary, until March 3, 2016, the following provision shall apply:

No person shall directly or indirectly offer to acquire or acquire the beneficial ownership of ten percent (10%) or more of any class of any equity security of the Corporation without the prior approval of two-thirds (2/3) of the Board of Directors and the prior written approval of the Commissioner. In the event shares are acquired in violation of this Section 6, all shares beneficially owned by any person in excess of ten percent (10%) shall be considered “excess shares” and shall not be counted as shares entitled to vote, shall not be voted by any person or counted as voting shares in connection with any matter submitted to the shareholders for a vote, and shall not be counted as outstanding for purposes of determining the affirmative vote necessary to approve any matter submitted to the shareholders for a vote.

Notwithstanding anything contained in this Certificate of Incorporation or Bylaws of the Corporation to the contrary, the provisions requiring prior approval of two-thirds (2/3) of the Board of Directors in the event the acquisition of the beneficial ownership of ten percent (10%) or more of any class of any equity security of the Corporation is perpetual, and not limited to the March 3, 2016 end date.

“Beneficial ownership” shall be determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended (or any successor rule or statutory provision), or, if said Rule 13d-3 shall be rescinded and there shall be no successor rule or provision thereto, pursuant to said Rule 13d-3 as in effect on the date of filing of this Certificate of Incorporation;provided, however, that a person shall, in any event, also be deemed the “beneficial owner” of any common stock:

4


(1) which such person or any of its Affiliates (as defined in Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended, as in effect on the date of filing of this Certificate of Incorporation) beneficially owns, directly or indirectly; or

(2) which such person or any of its Affiliates has: (a) the right to acquire (whether such right is exercisable immediately or only after the passage of time), pursuant to any agreement, arrangement or understanding, or upon the exercise of conversion rights, exchange rights, warrants or options or otherwise, or (b) sole or shared voting or investment power with respect thereto pursuant to any agreement, arrangement, understanding, relationship or otherwise (but shall not be deemed to be the beneficial owner of any voting shares solely by reason of a revocable proxy granted for a particular meeting of stockholders, pursuant to a public solicitation of proxies for such meeting, with respect to shares of which neither such person nor any such Affiliate is otherwise deemed the beneficial owner); or

(3) which are beneficially owned, directly or indirectly, by any other person with which such first mentioned person or any of its Affiliates acts as a partnership, limited partnership, syndicate or other group pursuant to any agreement, arrangement or understanding for the purpose of acquiring, holding, voting or disposing of any shares of capital stock of the Corporation; and

provided further, however, that: (a) no director or officer of the Corporation (or any Affiliate of any such director or officer) shall, solely by reason of any or all of such directors or officers acting in their capacities as such, be deemed, for any purposes hereof, to beneficially own any common stock beneficially owned by any other such director or officer (or any Affiliate thereof); and (b) neither any employee stock ownership plan or similar plan of the Corporation or any subsidiary of the Corporation, nor any trustee with respect thereto or any Affiliate of such trustee (solely by reason of such capacity of such trustee), shall be deemed, for any purposes hereof, to beneficially own any common stock held under any such plan.

The Board of Directors shall have the power to construe and apply the provisions of this Section and to make all determinations necessary or desirable to implement such provisions, including but not limited to matters with respect to: (a) the number of shares of common stock beneficially owned by any person; (b) whether a person is an Affiliate of another; (c) whether a person has an agreement, arrangement or understanding with another as to the matters referred to in the definition of beneficial ownership; (d) the application of any other definition or operative provision of this Section to the given facts; or (e) any other matter relating to the applicability or effect of this Section.

The Board of Directors shall have the right to demand that any person who is reasonably believed to beneficially own shares of common stock that are “excess shares” (or holds of record common stock beneficially owned by any person in excess of the limit described above) supply the Corporation with complete information as to: (a) the record owner(s) of all shares beneficially owned by such person who is reasonably believed to own shares in excess of the limit described above; and (b) any other factual matter relating to the applicability or effect of this Section as may reasonably be requested of such person.

5


Special meetings of shareholders relating to changes in control of the Corporation or amendments to its Certificate of Incorporation shall be called only at the direction of the Board of Directors. This provision is perpetual.

Section 7. Preemptive Rights.

Holders of the stock of the Corporation are not entitled to preemptive rights with respect to any shares of the Corporation that may be issued.

Section 8. Directors.

The business and affairs of the Corporation shall be managed under the direction of its Board of Directors. The authorized number of Directors, as stated in the Corporation’s Bylaws, shall not be fewer than eight (8) nor more than sixteen (16). The Directors of the Corporation shall be divided into three (3) classes, namely, Class I, Class II, and Class III, as nearly equal in number as possible as set forth below. At each annual meeting, the successors, if any, to the class of directors whose terms expire at that meeting shall be elected to serve three (3) year terms and until their successors are elected and qualified.

Class I Directors

(Term Expiring at 2016 Annual Meeting)

Carol A. Leary

Stuart E. Magdefrau

Robert A. Stewart, Jr.

Class II Directors

(Term Expiring at 2017 Annual Meeting)

Paula A. Aiello

Michael A. Bars

Kristen A. Johnson

Kevin E. Ross

Class III Directors

(Term Expiring at 2018 Annual Meeting)

William H. W. Crawford, IV

Raymond H. Lefurge, Jr.

Michael F. Crowley

The personal liability of any Director to the Corporation or its shareholders for monetary damages for breach of fiduciary duty as a Director is hereby limited to the amount of the compensation received by the Director for serving the Corporation during the year of the violation except (i) any breach of the director’s duty of loyalty to the Corporation or its stockholders; (ii) any acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law; (iii) under Section 174 of the Delaware General Corporation Law; (iv) for any transaction from which the director derived an improper personal benefit; or (v) any

6


acts that create liability under Section 36a-58 of the Connecticut General Statutes. All references in this paragraph to a director shall also be deemed to refer to such other person or persons, if any, who, pursuant to a provision of the certificate of incorporation in accordance with the Delaware General Corporation Law, exercise or perform any of the powers or duties otherwise conferred or imposed upon the board of directors by this title. Any lawful repeal or modification of this provision by the shareholders and the Board of Directors of the Corporation shall not adversely affect any right or protection of a Director existing at or prior to the time of such repeal or modification.

Section 9. Consideration of a Merger or Other Business Combinations

The Directors shall consider the following criteria when determining whether to authorize the Corporation to engage in a merger, consolidation, share exchange, or sale of assets other than in the ordinary course of business:

(a)the long and short-term interests of the Corporation;

(b)the long and short-term interests of the Corporation’s shareholders;

(c)the interests of the Corporation’s employees, customers, creditors and suppliers; and

(d)community and societal considerations including those of any community in which the Corporation or its subsidiary bank(s), has an office.

A Director may also, in his/her discretion, consider any other factors he/she considers appropriate in determining what he/she believes to be in the Corporation’s best interest.

Section 10. Removal of Directors.

Any Director may be removed from office at any time, for cause only, by the affirmative vote of at least two-thirds (2/3) of the Directors then in office or by the affirmative vote of the holders of at least eighty percent (80%) of the voting power of the issued and outstanding shares of the capital stock of the Corporation entitled to vote for the election of Directors.

Section 11. Certain Business Combinations.

Without limiting the restrictions of Section 6 above, the provisions of Section 203 of the Delaware General Corporation Law as in effect on the date hereof (or any succeeding, substantially similar statutory provisions) regarding the prohibition of a business combination with an Interested Shareholder for three (3) years as described therein shall also apply to the Corporation and are incorporated herein by reference.

Section 12. Mergers, Consolidations and Other Business Combinations.

Without limiting the restrictions of Section 6 and 11 above, the Corporation may only engage in a merger, consolidation, share exchange or sale of substantially all of the assets of the Corporation other than in the ordinary course of business upon receiving the vote of at least two-

7


thirds (2/3) of the Directors then in office and by the affirmative vote of the holders of shares of capital stock having two-thirds (2/3) of the voting power of all issued and outstanding shares of the capital stock of the Corporation entitled to vote upon such approval, authorization, ratification or determination.

Section 13. Amendment of Certificate of Incorporation.

Except as provided in Section 5, no amendment, addition, alteration, change or repeal of this Certificate of Incorporation shall be made, unless such is first proposed by the Board of Directors of the Corporation and thereafter approved by the shareholders by the affirmative vote of a majority of the total votes eligible to be cast at a meeting.

Section 14. Liquidation Account.

Under the regulations of the State of Connecticut Department of Banking, the Corporation must establish and maintain a liquidation account (the “Liquidation Account”) for the benefit of certain Eligible Account Holders and Supplemental Eligible Account Holders as defined in the Plan of Conversion and Reorganization dated September 16, 2010 (the “Plan of Conversion”). In the event of a complete liquidation involving the (i) Rockville Bank (now United Bank) or (ii) the Corporation and Rockville Bank (now United Bank), the Corporation must comply with the regulations of the Connecticut Department of Banking and the provisions of the Plan of Conversion with respect to the amount and priorities of each Eligible Account Holder’s and Supplemental Eligible Account Holder’s interests in the Liquidation Account. The interest of an Eligible Account Holder or Supplemental Eligible Account Holder in the Liquidation Account does not entitle such account holders to voting rights.

8


ANNEX B

[AMENDED AND RESTATED] BYLAWS

[attached]


Exhibit C

Annex B

SECOND AMENDED AND RESTATED

BYLAWS

OF

UNITED FINANCIAL BANCORP, INC.

Effective as of [    ], 2015

TABLE OF CONTENTS

ARTICLE I. OFFICE

1

ARTICLE II. SHAREHOLDERS

1

Section 1. Place of Meetings

1

Section 2. Annual Meeting

1

Section 3. Special Meetings

1

Section 4. Conduct of Meetings

1

Section 5. Notice of Meetings

1

Section 6. Fixing of Record Date

1

Section 7. Voting Requirements

2

Section 8. Voting Lists

2

Section 9. Quorum

2

Section 10. Proxies

2

Section 11. Voting of Shares in the Name of Two or More Persons

2

Section 12. Voting of Shares by Certain Holders

3

Section 13. No Cumulative Voting

3

Section 14. Inspectors of Election

3

Section 15. New Business

3

Section 16. Director Nominations

3

ARTICLE III. BOARD OF DIRECTORS

4

Section 1. General Powers

4

Section 2. Board Composition

4

Section 3. Regular Meetings

5

Section 4. Qualifications

5

Section 5. Special Meetings

5

Section 6. Quorum

5

Section 7. Manner of Acting

5

i


z

Section 8. Action Without a Meeting

 {

REVOCABLE PROXY

ROCKVILLE FINANCIAL, INC.

5
  

ANNUAL MEETING OF SHAREHOLDERS ON

MAY 16, 2013

THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS.

The undersigned being a shareholder of Rockville Financial, Inc. hereby appoints Michael A. Bars, David A. Engelson and Rosemarie Novello Papa or each of them, with full power of substitution in each, as proxies to cast all votes which the undersigned shareholder is entitled to cast at the 2013 Annual Meeting of Shareholders to be held at 10:00 a.m., local time, on May 16, 2013, at Maneeley’s Banquet Facility, 65 Rye Street, South Windsor, Connecticut 06074, and at any adjournments thereof. The undersigned shareholder hereby revokes any proxy or proxies heretofore given.

IMPORTANT ANNUAL MEETING INFORMATION

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE SHAREHOLDER MEETING TO BE HELD ON MAY 16, 2013.

THE PROXY STATEMENT, THE 2012 ANNUAL REPORT TO SHAREHOLDERS AND THE FORM OF PROXY ARE AVAILABLE AT:

www.rockvillefinancialinc.com – click Financial Information and Annual Meeting Materials

Mark here if you no longer wish to receive paper annual meeting materials and instead view them online.

Section 9. Resignation

 ¨
Mark here if you plan to attend the meeting.5  ¨
Mark here for address change.¨

Comments:

FOLD HERE – PLEASE DO NOT DETACH – PLEASE ACT PROMPTLY

PLEASE COMPLETE, DATE, SIGN, AND MAIL THIS PROXY CARD IN THE ENCLOSED POSTAGE-PAID ENVELOPE

x

Section 10. Vacancies

 

PLEASE MARK VOTES

AS IN THIS EXAMPLE

5

Section 11. Director Nominations

 For

With-

hold

6  
1.Election of one Director for a one year term:¨¨

Section 12. Compensation

 Joseph F. Jeamel, Jr.6

Section 13. Presumption of Assent

 6

Section 14. Removal of Directors

 6

ARTICLE IV. COMMITTEES

6

Section 1. Appointment

6

Section 2. Executive Committee

7

Section 3. Audit Committee

7

Section 4. Compensation Committee

7

Section 5. Governance and Nominating Committee

7

Section 6. Other Committees

8

Section 7. Quorum

8

Section 8. Amendments

8

ARTICLE V. OFFICERS

8

Section 1. Positions

8

Section 2. Chairman and Vice Chairman of the Board

8

Section 3. Chief Executive Officer

8

Section 4. President

9

Section 5. Appointment and Term of Office

9

Section 7. Vacancies

9

Section 8. Remuneration

9

ARTICLE VI. CONTRACTS, LOANS, CHECKS AND DEPOSITS

9

Section 1. Contracts

9

Section 2. Loans

9

Section 3. Checks, Drafts, etc

10

Section 4. Deposits

10

ARTICLE VII. CERTIFICATES FOR SHARES AND THEIR TRANSFER

10

Section 1. Certificates for Shares

10

Section 2. Transfer of Shares

10

ii


ARTICLE VIII. FISCAL YEAR

Election of two Director for a four year term: For10  

With-

hold

ARTICLE IX. DIVIDENDS

 Raymond H. Lefurge, Jr.11

ARTICLE X. CORPORATE SEAL

 ¨11

ARTICLE XI. INDEMNIFICATION

 ¨11

ARTICLE XII. AMENDMENTS

 11

iii


Second Amended and Restated

Bylaws

of

United Financial Bancorp, Inc.

(Effective as of [    ], 2015)

ARTICLE I. OFFICE

The home office of United Financial Bancorp, Inc. (the “Corporation”) is in Glastonbury, Connecticut.

ARTICLE II. SHAREHOLDERS

Section 1. Place of Meetings. All annual and special meetings of shareholders shall be held at the principal office of the Corporation or at such other place as the Board of Directors may designate from time to time.

Section 2. Annual Meeting. A meeting of the shareholders of the Corporation for the election of Directors and for the transaction of any other business of the Corporation shall be held on such day and at such time and place as the Board of Directors may designate.

Section 3. Special Meetings. Subject to the terms of the Corporation’s Certificate of Incorporation, special meetings of the shareholders for any purpose or purposes may be called at any time by the Chairman of the Board, the Chief Executive Officer, or the Secretary upon the written request of a majority of the Directors or the holders of not less than ten (10%) of all of the outstanding capital stock of the Corporation entitled to vote at the meeting. Such written request shall state the purpose or purposes of the meeting and shall be delivered to the Secretary of the Corporation. Business to be transacted at any special meeting shall be limited to the purpose or purposes stated in the notice to such meeting.

Section 4. Conduct of Meetings. Annual and special meetings shall be conducted in accordance with any requirements prescribed by applicable law or these Bylaws or adopted by the Board of Directors. The Board of Directors shall designate, when present, either the Chairman of the Board or Chief Executive Officer to preside at such meetings.

Section 5. Notice of Meetings. Written notice stating the place, day, and hour of the meeting and the purpose(s) for which the meeting is called shall be delivered not fewer than ten (10) nor more than sixty (60) days before the date of the meeting, either personally or by mail, by or at the direction of the Chairman of the Board, the Chief Executive Officer, or the Secretary, to each shareholder of record entitled to vote at such meeting. If mailed, such notice shall be deemed to be delivered when deposited in the mail, addressed to the shareholder at the address as it appears on the stock transfer books or records of the Corporation as of the record date prescribed in Section 6 of this Article II with postage prepaid. When any shareholders’ meeting, either annual or special, is adjourned to a different date, time or place, notice need not be given of the new date, time or place if the new date, time or place is announced at the meeting before adjournment. If a new record date for the adjourned meeting is or must be fixed under the provisions of the Delaware General Corporation Law, notice of the adjourned meeting must be given to persons who are shareholders as of the new record date.

Section 6. Fixing of Record Date. For the purpose of determining shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment, or shareholders entitled to receive payment of any dividend, or in order to make a determination of shareholders for any other proper purpose, the Board of Directors shall fix in advance a date as the record date for any such determination of shareholders. Such date in any case shall be not more than seventy (70) days prior to the date on which the particular action, requiring such determination of shareholders, is to be taken.

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Section 7. Voting Requirements. Except as may be otherwise specifically provided in these Bylaws, in the Certificate of Incorporation, or in the Delaware General Corporation Law, the Connecticut Banking Laws, or other applicable law, the affirmative vote, at a meeting of shareholders duly held and at which a quorum is present, of a majority of the voting power of the shares represented at such meeting that are entitled to vote on the subject matter shall be the act of the shareholders.

Section 8. Voting Lists. After fixing the record date for the meeting, the officer or agent having charge of the stock transfer books for shares of the Corporation shall make a complete list of the shareholders of record entitled to vote at such meeting, or any adjournment thereof, arranged in alphabetical order, with the address and the number of shares held by each. This list of shareholders shall be kept on file at the principal office of the Corporation and shall be subject to inspection by any shareholder of record, the shareholder’s agent or attorney at any time during usual business hours beginning two (2) business days after the notice of the meeting is given for which the list was prepared and continuing through the meeting. Such list shall also be produced and kept open at the time and place of the meeting and shall be subject to inspection by any shareholder of record, the shareholder’s agent or attorney during the entire time of the meeting. The original stock transfer book shall constitute prima facie evidence of the shareholders entitled to examine such list or transfer books or to vote at any meeting of shareholders.

Section 9. Quorum. A majority of the outstanding shares of the Corporation entitled to vote, represented in person or by proxy, shall constitute a quorum at a meeting of shareholders. If less than a majority of the outstanding shares is represented at a meeting, a majority of the shares so represented may adjourn the meeting from time to time without further notice. Once a share is represented for any purpose at a meeting, it is deemed present for quorum purposes for the remainder of the meeting and for any adjournment of that meeting unless a new record date is set for that adjourned meeting. At such adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally notified. The shareholders present at a duly organized meeting may continue to transact business until adjournment, notwithstanding the withdrawal of enough shareholders to constitute less than a quorum. If a quorum is present, the affirmative vote of the majority of the shares represented at the meeting and entitled to vote on the subject matter shall be the act of the shareholders, unless the vote of a greater number of shareholders voting together or voting by classes is required by law or the Certificate of Incorporation.

Section 10. Proxies. At all meetings of shareholders, a shareholder may vote by proxy executed in writing by the shareholder or by his or her duly authorized attorney in fact and filed with the Secretary of the Corporation, the inspector of election or the officer or agent of the Corporation authorized to tabulate votes. A proxy shall be filed with the Secretary of the Corporation prior to the meeting to the extent required by Delaware law. No proxy shall be valid more than eleven (11) months from the date of its execution unless a longer period is expressly provided in the appointment.

Section 11. Voting of Shares in the Name of Two or More Persons. When ownership stands in the name of two or more persons, in the absence of written directions to the Corporation to the contrary, at any meeting of the shareholders of the Corporation any one or more of such shareholders may cast, in person or by proxy, all votes to which such ownership is entitled. In the event an attempt is made to cast conflicting votes, in person or by proxy, by the several persons in whose names shares of stock stand, the vote or votes to which those persons are entitled shall be cast as directed by a majority of those holding such and present in person or by proxy at such meeting, but no votes shall be cast for such stock if a majority cannot agree.

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Section 12. Voting of Shares by Certain Holders. Shares standing in the name of another corporation may be voted by any officer, agent, or proxy as the Bylaws of such corporation may prescribe, or, in the absence of such provision, as the Board of Directors of such corporation may determine. Shares held by an administrator, executor, guardian, or conservator may be voted by him or her, either in person or by proxy, without a transfer of such shares into his or her name. Shares outstanding in the name of a trustee may be voted by him or her, either in person or by proxy, but no trustee shall be entitled to vote shares held by him or her without a transfer of such shares into his or her name. Shares outstanding in the name of a receiver may be voted by such receiver, and shares held by or under control of a receiver may be voted by such receiver without the transfer into his or her name if authority to do so is consigned in an appropriate order of the court or other public authority by which such receiver was appointed.

A shareholder whose shares are pledged shall be entitled to vote such shares until the shares have been transferred into the name of the pledgee, and thereafter the pledgee shall be entitled to vote the shares so transferred.

Section 13. No Cumulative Voting. Each holder of shares of common stock shall be entitled to one vote for each share held by such holder. No holder of such shares shall be entitled to cumulative voting for any purpose, including, but not limited to, the election of Directors.

Section 14. Inspectors of Election. In advance of any meeting of shareholders, the Board of Directors may appoint one or more inspectors to act at a meeting of shareholders and make a written report of the inspector’s determinations. In case any person appointed as inspector fails to appear or fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting or at the meeting by the Chairman of the Board or the Chief Executive Officer. Each inspector shall take and sign an oath to faithfully execute the duties of inspector with strict impartiality and according to the best of the inspector’s ability. An inspector may be an officer or employee of the Corporation.

Unless otherwise prescribed by law, the duties of such inspectors shall include: determining the number of shares outstanding and the voting power of each share, the shares represented at the meeting, and the validity of proxies and ballots; counting and tabulating all votes or consents; and determining the result.

Section 15. New Business. Any new business to be taken up at the annual meeting other than at the direction of the Board of Directors shall be stated in writing and filed with the Secretary of the Corporation at least thirty (30) days before the date of the annual meeting, and all business so stated, proposed, and filed shall be considered at the annual meeting; but no other proposal other than at the direction of the Board of Directors shall be acted upon at the annual meeting. This provision shall not prevent the consideration and approval or disapproval at the annual meeting of reports of officers, Directors, and committees.

Section 16. Director Nominations. Any nominations of Directors by shareholders of record shall be stated in writing and filed with the Secretary of the Corporation at least one hundred (100) days prior to any meeting of shareholders called for the election of directors; provided however, that if fewer than 100 days’ notice of the meeting is given to shareholders, such nomination shall be filed with the Secretary of the Corporation not later than ten (10) business days following the earlier of (i) the date on which notice of such meeting was given to shareholders; or (ii) the date on which a public announcement of such meeting was first made. All nominations must comply with the Board of Directors’ nomination policy.

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ARTICLE III. BOARD OF DIRECTORS

Section 1. General Powers. The property, business and affairs of the Corporation shall be under the direction of its Board of Directors.

Section 2. Board Composition.

(a) Effective as of the Effective Time (as defined in the Agreement and Plan of Merger, dated as of November 14, 2013, by and between United Financial Bancorp, Inc. (“United”) and Rockville Financial, Inc. (“Rockville”), as the same may be amended from time to time (the “Merger Agreement”)) and notwithstanding any other provision of these Bylaws that may be to the contrary, the Board of Directors of the Corporation shall consist of ten (10) Directors, half of whom shall be former members of the Board of Directors of Rockville chosen by Rockville (the “Former Rockville Directors”), including William H. W. Crawford, IV, and half of whom shall be former members of the Board of Directors of United (other than Richard B. Collins, who will be replaced by J. Jeffrey Sullivan) chosen by United (the “Former United Directors”). The Former United Directors and Former Rockville Directors shall be apportioned among the three (3) classes of the Board of Directors as nearly evenly as is possible. The placement of specific Former United Directors by class shall be as determined by United, and the placement of specific Former Rockville Directors by class shall be as determined by Rockville, in each case subject to the preceding sentence; provided, however, that each of Messrs. Crawford and Sullivan shall be placed in the class whose term shall expire at the Corporation’s first annual meeting of shareholders following the Effective Time (or special meeting in lieu thereof) and, subject to satisfaction of the Corporation’s then-existing re-nomination policies and criteria applicable to incumbent directors, shall be nominated for a full term; and provided further, however, that all Former Rockville Directors and Former United Directors (or any successors thereto nominated in accordance with these Bylaws) whose terms shall expire at the Corporation’s first and second annual meetings of shareholders following the Effective Time (or special meetings in lieu thereof), subject to satisfaction of the Corporation’s then-existing re-nomination policies and criteria applicable to incumbent Directors, shall be nominated for full terms. During the period (the “Three-Year Period”) beginning immediately following the Effective Time and extending through the point in time immediately prior to the later of the Corporation’s third annual meeting of shareholders following the Effective Time (or special meeting in lieu thereof) or the 2017 annual meeting of shareholders (collectively, the “Third Annual Meeting”), the number of Directors of the Corporation shall be as determined by a two-thirds vote of the entire Board of Directors; provided that the Board of Directors shall consist of an equal number of Former Rockville Directors and Former United Directors. Following the expiration of the Three-Year Period (for the avoidance of doubt, the election of Directors at the Third Annual Meeting shall be deemed for purposes of these Bylaws to follow the expiration of the Three-Year Period, and the provisions of this sentence shall apply to such election), the number of Directors of the Corporation shall be as determined by a two-thirds vote of the entire Board of Directors, and the requirement to have an equal number of Former Rockville Directors and Former United Directors shall expire. Subject to Article IV of these Bylaws, each of the Former Rockville Directors and Former United Directors shall serve on committees of the Board of Directors, consistent with their expertise and interest, and based on the needs of the Board of Directors and the requirements of such positions.

(b) The Board of Directors has resolved that, effective as of the Effective Time and notwithstanding any other provision of these Bylaws that may be to the contrary, Robert A. Stewart, Jr. shall serve as Chairman of the Board of Directors and Raymond H. Lefurge, Jr. shall serve as Vice Chairman of the Board of Directors. If, during the Three-Year Period, (i) Robert A. Stewart, Jr. cannot serve as Chairman of the Board of Directors, then a new Chairman of the Board of Directors shall be elected by a majority vote of the Former United Directors, or (ii) Mr. Lefurge cannot serve as Vice Chairman of the Board of Directors, then a new Vice Chairman of the Board of Directors shall be elected by a majority vote of the Former Rockville Directors.

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(c) Until the expiration of the Three-Year Period, the provisions of this Section 2 may be modified, amended or repealed, and any Bylaw provision inconsistent with the provisions of this Section 2 may be adopted, only by an affirmative vote of at least two-thirds of the full Board of Directors.

Section 3. Regular Meetings. A regular meeting of the Board of Directors for the appointment of officers and the transaction of any other business that may come before such meeting shall be held without other notice than this Bylaw following the annual meeting of shareholders. The Board of Directors shall meet regularly without notice at a time and place fixed by resolution of the Board of Directors. Directors may participate in a meeting by means of a conference telephone or similar communications device through which all persons participating can hear each other at the same time. Participation by such means shall constitute presence in person for all purposes.

Section 4. Qualifications. A Director need not be a resident of the State of Delaware or Connecticut or a shareholder of the Corporation. Any person under the age of twenty-five (25) is ineligible to be elected to the Board of Directors. No person aged seventy (70) years or more is eligible for election or re-election as a Director; provided, however, that, during the Three-Year Period (for the avoidance of doubt, the election of Directors at the Third Annual Meeting shall be deemed to follow the expiration of the Three-Year Period), no Former United Director or Former Rockville Director who served as a Director as of the Effective Time shall be ineligible for re-election as a Director by virtue of being aged seventy (70) years or more at the time of re-election.

Section 5. Special Meetings. Special Meetings of the Board of Directors may be held upon the call of the Chief Executive Officer or Chairman at any time; and the Chief Executive Officer or Chairman must, upon written request of any two Directors, stating the purpose thereof, call a Special Meeting to be held not less than seven (7) or more than fifty (50) days after the receipt of such request. Written notice of the date, time, place and general purpose of all Special Meetings of the Board of Directors shall be given to each Director in person or by mail to the residence or usual place of business of each Director at least five (5) days prior to the date of such meeting.

Section 6. Quorum. A majority of the Board of Directors shall constitute a quorum for the transaction of business at any meeting of the Board of Directors.

Section 7. Manner of Acting. The act of the majority of the Directors present at a meeting at which a quorum is present shall be the act of the Board of Directors, unless a greater number is prescribed by law or by these Bylaws.

Section 8. Action Without a Meeting. Any action required or permitted to be taken by the Board of Directors at a meeting may be taken without a meeting if one or more consents in writing, setting forth the action so taken, shall be signed by all of the Directors and delivered to the Corporation. Such consents shall be filed with the Secretary in the minute books of the Corporation.

Section 9. Resignation. Any Director may resign at any time by sending a written notice of such resignation to the Board of Directors, the Chairman of the Board or the Corporation. Such resignation shall take effect when delivered unless the notice specifies a later effective date upon receipt by the Chairman of the Board or the Chief Executive Officer.

Section 10. Vacancies. Any vacancy occurring on the Board of Directors, including a vacancy resulting from an increase in the number of Directors, may be filled by the affirmative vote of a majority of the remaining Directors although less than a quorum of the Board of Directors; provided, however, that, during the Three-Year Period, the Board of Directors shall consider for election only nominees recommended by the Governance and Nominating Committee. A Director elected to fill a vacancy, including a vacancy resulting from an increase in the number of Directors, shall be elected to serve for a term expiring at the next annual meeting at which Directors are elected and which such Director’s successor shall have been elected and qualified.

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Section 11. Director Nominations. During the Three-Year Period, but excluding nominations with respect to the Third Annual Meeting, the Governance and Nominating Committee shall nominate for election to the full Board of Directors in accordance with applicable federal securities laws and applicable stock listing regulations, by majority vote of the Former Rockville Directors serving on the Governance and Nominating Committee (with respect to election of a successor to a Former Rockville Director (it being understood that a Former Rockville Director may be re-elected as his or her successor)) or by majority vote of the Former United Directors serving on the Governance and Nominating Committee (with respect to election of a successor to a Former United Director (it being understood that a Former United Director may be re-elected as his or her successor)), as the case may be, Board nominees for election and/or re-election to the Board at the annual meeting of shareholders and candidates to fill vacancies on the Board in between annual meetings of shareholders. During the Three-Year Period, (a) any person elected to replace a Former Rockville Director shall be deemed to be a “Former Rockville Director” for all purposes under these Bylaws and (b) any person elected to replace a Former United Director shall be deemed to be a “Former United Director” for all purposes under these Bylaws.

Beginning with nominations for election to the Board at the Third Annual Meeting, the Governance and Nominating Committee shall recommend to the full Board of Directors, by majority vote, Board nominees for election and/or re-election to the Board at the annual meeting of shareholders and candidates to fill vacancies on the Board in between annual meetings of shareholders. Beginning with nominations for election to the Board at the Third Annual Meeting, the Board of Directors shall nominate Board nominees for election and/or re-election to the Board at the annual meeting of shareholders and shall fill vacancies on the Board in between annual shareholder meetings from the candidates recommended by the Governance and Nominating Committee in accordance with the foregoing procedure.

Section 12. Compensation. The Board of Directors shall have authority to fix fees of Directors, including a reasonable allowance for expenses actually incurred in connection with their duties.

Section 13. Presumption of Assent. A Director of the Corporation who is present at a meeting of the Board of Directors at which action on any association matter is taken shall be presumed to have assented to the action taken unless: (a) he or she objects at the beginning of the meeting, or promptly upon his or her arrival, to holding it or transacting business at the meeting; (b) his or her dissent or abstention from the action taken shall be entered in the minutes of the meeting; or (c) he or she shall file a written notice of such dissent or abstention to such action with the presiding officer of the meeting before the adjournment thereof or to the Corporation immediately after adjournment of the meeting. Such right to dissent or abstain shall not apply to a Director who voted in favor of such action.

Section 14. Removal of Directors. At a meeting of shareholders called expressly for that purpose, any Director may be removed only for cause by a vote of the holders of not less than two-thirds (2/3) of the Board of Directors and eighty percent (80%) of the shares then entitled to vote at an election of Directors.

ARTICLE IV. COMMITTEES

Section 1. Appointment. Effective as of the Effective Time, the Board of Directors shall maintain the following Committees of the Board of Directors: Executive Committee, Audit Committee, Compensation Committee, and Governance and Nominating Committee. The designation of any committee pursuant to this Section 1 and the delegation of authority shall not operate to relieve the Board of Directors, or any Director, of any responsibility imposed by law or regulation. The Board may establish other committees from time to time.

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Section 2. Executive Committee. Effective as of the Effective Time, the Board of Directors shall appoint an Executive Committee. During the Three-Year Period, (a) the Executive Committee shall consist of eight (8) Directors, four (4) of whom shall be Former Rockville Directors and four (4) of whom shall be Former United Directors, (b) the Chairman of the Executive Committee shall be the Chairman of the Board and (c) the Executive Committee shall include the Chairman of the Board, the Vice Chairman of the Board, the Chairmen of each of the Audit, Compensation and Governance and Nominating Committees, an at-large Former United Director and two at-large Former Rockville Directors (provided that the Chairman of the Risk Committee of United Bank (successor to Rockville Bank) shall be one of the at-large Former Rockville Directors to the extent such Chairman is serving on the Board of Directors of the Corporation). Except as required by law or as otherwise provided by the Board of Directors, the Executive Committee shall be vested with the full powers and authority of the Board of Directors of the Corporation.

Section 3. Audit Committee. Effective as of the Effective Time, the Board of Directors shall appoint an Audit Committee, all of the members of which shall be independent as required by applicable federal securities laws and any applicable stock listing regulations. During the Three-Year Period, (a) the Audit Committee shall consist of an equal number of Former Rockville Directors and Former United Directors unless the Board unanimously determines otherwise and (b) the Chairman of the Audit Committee shall be a Former United Director and shall be designated by a majority vote of the Former United Directors. At least one (1) one member shall be a financial expert in accordance with applicable federal securities law and any applicable stock listing regulations, or disclosure must be made in accordance with applicable securities disclosure rules. The Audit Committee shall, annually, have an audit or examination of the books, records, accounts and affairs of the Corporation made by certified public accountants selected by the Audit Committee in accordance with Delaware law and applicable federal securities laws. The Audit Committee shall have authority to determine what other or further audits or examinations of the Corporation or its affairs shall be made, the extent thereof and by whom the same shall be made and to arrange therefore.

Section 4. Compensation Committee. Effective as of the Effective Time, the Board of Directors shall appoint a Compensation Committee, all of the members of which shall be independent as required by applicable federal securities laws and any applicable stock listing regulations. During the Three-Year Period, (a) the Compensation Committee shall consist of an equal number of Former Rockville Directors and Former United Directors unless the Board unanimously determines otherwise and (b) the Chairman of the Compensation Committee shall be a Former Rockville Director and shall be designated by a majority vote of the Former Rockville Directors. The Compensation Committee shall have such powers as are delegated from time to time by the Board of Directors.

Section 5. Governance and Nominating Committee. Effective as of the Effective Time, the Board of Directors shall appoint a Governance and Nominating Committee, all of the members of which shall be independent as required by applicable federal securities laws and any applicable stock listing regulations. During the Three-Year Period, (a) the Governance and Nominating Committee shall consist of an equal number of Former Rockville Directors and Former United Directors unless the Board unanimously determines otherwise and (b) the Chairman of the Governance and Nominating Committee shall be a Former United Director and shall be designated by a majority vote of the Former United Directors. Until (and excluding elections to the Board at) the Third Annual Meeting, the Governance and Nominating Committee shall nominate persons for election and/or re-election in accordance with applicable federal securities laws, any applicable stock listing regulations and these Bylaws. Beginning with nominations for election to the Board at the Third Annual Meeting, and in accordance with applicable federal securities laws and stock listing requirements, the Governance and

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Nominating Committee shall recommend to the Board of Directors, Board nominees for election and/or re-election to the Board at the annual meeting of shareholders and candidates to fill vacancies on the Board between annual meetings of shareholders. The Governance and Nominating Committee shall have such other powers as are delegated from time to time by the Board of Directors.

Section 6. Other Committees. The Board of Directors may by resolution establish other Committees composed of Directors as they may determine to be necessary or appropriate for the conduct of the business of the Corporation and may prescribe the duties, constitution, and procedures thereof. Notwithstanding the foregoing, during the Three-Year Period, (a) any such resolution of the Board of Directors shall be approved by two-thirds of the full Board of Directors and (b) each Committee shall consist of an equal number of Former Rockville Directors and Former United Directors.

Section 7. Quorum. A majority of the members of any Committee shall constitute a quorum, and the vote of a majority of the members present at a meeting shall be the act of the Committee.

Section 8. Amendments. During the Three-Year Period, the provisions of this Article IV may be modified, amended or repealed, and any Bylaw provision inconsistent with the provisions of this Article IV may be adopted, only by an affirmative vote of at least two-thirds of the full Board of Directors.

ARTICLE V. OFFICERS

Section 1. Positions. The officers of the Corporation shall be a Chairman of the Board of Directors, a Vice Chairman of the Board of Directors, a Chief Executive Officer, a President, one or more Vice Presidents, a Secretary, and a Treasurer and/or a Chief Financial Officer, each of whom shall be elected by the Board of Directors. The Board of Directors may designate one or more Vice Presidents as Executive Vice President, Senior Vice President or other designation. The Board of Directors may also elect or authorize the appointment of such other officers as the business of the Corporation may require. The officers shall have such authority and perform such duties as the Board of Directors may from time to time authorize or determine. In the absence of action by the Board of Directors, the officers shall have such powers and duties as generally pertain to their respective offices. Except as otherwise provided herein, any two (2) or more offices may be held by the same person.

Section 2. Chairman and Vice Chairman of the Board. It shall be the duty of the Chairman of the Board to preside, when present, at all meetings of the Board of Directors. The Chairman shall perform such duties and have such powers as may from time to time be prescribed by statutes or by these Bylaws, or by the Board of Directors. The Chairman of the Board of Directors may not serve as the Chief Executive Officer of the Corporation. The Vice Chairman of the Board shall assume the duties of the Chairman in his or her absence. The Vice Chairman shall also perform such duties as may be prescribed from time to time by the Board of Directors; during the Three-Year Period, he or she shall assist with the integration of the Former United Directors and Former Rockville Directors.

Section 3. Chief Executive Officer. The Chief Executive Officer shall be the principal executive officer of the Corporation and shall have the active management of the business, property and affairs of the Corporation, subject to the authority of the Board of Directors. The Chief Executive Officer shall be responsible for driving the strategic objectives of the Corporation. In the absence of the Chairman and Vice Chairman of the Board, the Chief Executive Officer may preside at meetings of the Board of Directors, or with his or her approval a chairman of the meeting may be appointed to preside. He or she shall perform such duties and have such powers as are incident to the office of the Chief Executive Officer and as may from time to time be prescribed by statute or by these Bylaws, or by the Board of Directors. As of the Effective Time, William H. W. Crawford, IV shall be appointed as Chief Executive Officer. The removal of Mr. Crawford from, or the failure to appoint Mr. Crawford to, the Chief Executive Officer position, and any amendment to or termination of any employment agreement with

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Mr. Crawford, prior to the expiration of the Three-Year Period, and any determination not to nominate Mr. Crawford as a Director of the Corporation, prior to the Third Annual Meeting, shall each require the affirmative vote of at least two-thirds of the full Board of Directors, excluding Mr. Crawford.

Section 4. President. The President shall be an executive officer reporting on a straight line to the Chief Executive Officer and shall have such line authority as designated by the Chief Executive Officer and shall otherwise assist the Chief Executive Officer in the active management of the business, property and affairs of the Corporation, subject to the authority of the Board of Directors. As of the Effective Time, J. Jeffrey Sullivan shall be appointed as President. The removal of Mr. Sullivan from, or the failure to appoint Mr. Sullivan to, the President position, and any amendment to or termination of any employment agreement with Mr. Sullivan, prior to the expiration of the Three-Year Period, and any determination not to nominate Mr. Sullivan as a Director of the Corporation, prior to the Third Annual Meeting, shall each require the affirmative vote of at least two-thirds of the full Board of Directors, excluding Mr. Sullivan.

Section 5. Appointment and Term of Office. The officers of the Corporation shall be appointed annually at the first meeting of the Board of Directors held after each annual meeting of the shareholders. If the appointment of officers is not made at such meeting, such appointment shall be held as soon thereafter as possible. Each officer shall hold office until a successor has been duly appointed and qualified or until the officer’s death, resignation or removal in the manner hereinafter provided. Appointment of an officer, employee, or agent shall not of itself create contractual rights. The Board of Directors may authorize the Corporation to enter into an employment contract with any officer in accordance with applicable regulations; but no such contract shall impair the right of the Board of Directors to remove any officer at any time in accordance with Section 6 of this Article V.

Section 6.Removal. Except as otherwise provided in these Bylaws, any officer may be removed by the Board of Directors at any time with or without cause. An officer’s removal does not affect the officer’s contract rights, if any, with the Corporation.

Section 7. Vacancies. A vacancy in any office because of death, resignation, removal, disqualification, or otherwise may be filled by the Board of Directors for the unexpired portion of the term.

Section 8. Remuneration. The remuneration of the named executive officers shall be determined by, or at the direction of, the Board of Directors or the Human Resources Committee pursuant to policies developed by such bodies from time to time in compliance with applicable law, regulations and rules.

ARTICLE VI. CONTRACTS, LOANS, CHECKS AND DEPOSITS

Section 1. Contracts. Except as otherwise prescribed by law or these Bylaws with respect to certificates for shares and subject always to the directions of the Board of Directors, the Chief Executive Officer may authorize any officer, employee, or agent of the Corporation to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Corporation. Such authority may be general or confined to specific instances.

Section 2. Loans. Subject always to the specific directions of the Board of Directors, no loans shall be contracted on behalf of the Corporation and no evidence of indebtedness shall be issued in its name unless executed in its name by the Chief Executive Officer or the President or such officer as may be designated by the Chief Executive Officer or the President. Such authority may be general or confined to specific instances.

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Section 3. Checks, Drafts, etc. Subject always to the specific directions of the Board of Directors, all checks, drafts, or other orders for the payment of money, notes, or other evidences of indebtedness issued in the name of the Corporation shall be signed by one or more officers, employees or agents of the Corporation in such manner as shall from time to time be determined by the Chief Executive Officer or the President.

Section 4. Deposits. All funds of the Corporation not otherwise employed shall be deposited from time to time to the credit of the Corporation in any duly authorized depositories as the Board of Directors may select.

ARTICLE VII. CERTIFICATES FOR SHARES AND THEIR TRANSFER

Section 1. Certificates for Shares. The shares of the Corporation’s stock may be certificated or uncertificated, as provided under the Delaware General Corporation Law, and shall be entered into the books of the Corporation and registered as they are issued. Any registered shareholder shall be entitled to a physical stock certificate upon written request to the transfer agent or registrar of the Corporation. In the case of certified shares, certificates representing shares of capital stock of the Corporation shall be in such form as shall be determined by the Board of Directors and permitted by law. Such certificates shall be signed by the Chief Executive Officer or by any other officer of the Corporation authorized by the Board of Directors, attested by the Chief Financial Officer, and sealed with the corporate seal or a facsimile thereof. The signatures of such officers upon a certificate may be facsimiles if the certificate is manually signed on behalf of a transfer agent or a registrar other than the Corporation itself or one of its employees. Each certificate for shares of capital stock shall be consecutively numbered or otherwise identified. The name and address of the person to whom the shares are issued, with the owner of shares and date of issue, shall be entered on the stock transfer books of the Corporation. All certificates surrendered to the Corporation for transfer shall be cancelled and no new certificate shall be issued until the former certificate, if such shares were represented by a certificate, for a like number of shares has been surrendered and cancelled, except that in the case of a lost or destroyed certificate, a new certificate may be issued upon such terms and indemnity to the Corporation as the Board of Directors may prescribe.

Section 2. Transfer of Shares. Subject to any applicable restrictions on transfer and ownership of securities, and unless otherwise provided by the Board of Directors, transfers of capital stock of the Corporation, if such stock is certificated, shall be made only on its stock transfer books. Authority for such transfer shall be given only by the holder of record or by his or her legal representative, who shall furnish proper evidence of such authority, or by his or her attorney authorized by a duly executed power of attorney filed with the Corporation. Such transfer shall be made only on surrender for cancellation of the certificate for such shares. The person in whose name shares of capital stock stand on the books of the Corporation shall be deemed by the Corporation to be the owner for all purposes. Upon the receipt of proper transfer instructions from the registered owner of uncertificated shares, the Corporation shall cancel the uncertificated shares and issue new equivalent uncertificated shares or certificated shares to the shareholder entitled thereto. Such transfers of stock shall be recorded on the books of the Corporation kept at an office of the Corporation or by transfer agents designated to transfer shares of the stock of the Corporation. Any or all of the signatures required by this Section may be made by facsimile.

ARTICLE VIII. FISCAL YEAR

The fiscal year of the Corporation shall end on the 31st day of December of each year.

10


ARTICLE IX. DIVIDENDS

The Board of Directors may authorize and the Corporation may pay dividends and make distributions to shareholders to the extent permitted by law. Such dividends will be payable to shareholders of record at the close of business on the date determined by the Board of Directors provided that if the Board of Directors does not designate the record date for determining shareholders entitled to a distribution, it shall be the date the Board of Directors authorizes the distribution. Such distribution shall be paid on a named day not more than seventy (70) days thereafter, and the Directors may further close the transfer books during the period from the day as of which the right to such dividend is determined through the day upon which the same is to be paid. No dividend shall be paid unless duly voted by the Directors of the Corporation. Dividends may be paid in cash, property, or shares of the Corporation.

ARTICLE X. CORPORATE SEAL

The seal of the Corporation shall have inscribed thereon the name of the Corporation and the words “Seal” and “Delaware”.

ARTICLE XI. INDEMNIFICATION

The Corporation shall indemnify and reimburse each current and former Director, officer or employee of this Corporation, or any other agent or person performing on behalf of the Corporation, and his or her heirs, executors, or administrators, to the fullest extent permitted by law, including but not limited to those situations for which reimbursement and/or indemnification is permitted under Section 145 of the Delaware General Corporation Law. In no event shall any payments made by the Corporation pursuant to this Article XI exceed the amount permissible under state or federal law, including but not limited to the limitations on indemnification imposed by Section 18(k) of the Federal Deposit Insurance Act and the regulations issued thereunder by the Federal Deposit Insurance Corporation.

ARTICLE XII. AMENDMENTS

These Bylaws may be amended by: (i) the approval of the amendment by a majority vote of the Board of Directors, unless a different vote requirement is prescribed by these Bylaws; or (ii) a majority vote of the votes cast by the shareholders of the Corporation at any meeting providing that an amendment by the shareholders to the provisions of Articles II, III or XII shall require a vote of not less than eighty percent (80%) of the outstanding capital stock of the Corporation. No Bylaws shall be amended or repealed unless written notice of such proposed action shall have been given with respect to the meeting at which such action shall be taken.

11


Exhibit D

STATEMENT OF DOMESTICATION

OF

UNITED FINANCIAL BANCORP, INC.

This Statement of Domestication has been adopted by United Financial Bancorp, Inc., a Connecticut corporation (the “Corporation”) as of [ ], 2015, pursuant to Section 34-645 of the Connecticut General Statutes.

WITNESSETH:

WHEREAS, the Corporation is a corporation duly organized and existed under the laws of the State of Connecticut; and

WHEREAS, the Corporation wishes to change its domicile of incorporation from Connecticut to Delaware by domesticating in Delaware on the terms set forth herein; and

WHEREAS, a Plan of Domestication of the Corporation dated [ ], 2015 (the “Plan of Domestication”) has been adopted by the Board of Directors of the Corporation and approved by the shareholders of the Corporation entitled to vote thereon.

NOW THEREFORE, the Corporation agrees as follows:

1. The Corporation shall be domesticated in the State of Delaware.

2. The name of the Corporation immediately prior to the domestication shall, automatically upon such domestication, be the name of the Corporation immediately after the domestication.

3. The Corporation shall be domesticated as a Delaware business corporation in conformity with the provisions of the Plan of Domestication, which was approved in accordance with Part V of Chapter 616 of the Connecticut General Statutes.

4. The Secretary of State of the State of Connecticut may send any process served on the Secretary of the State pursuant to subsection (e) of Section 34-646 to: United Bank, 45 Glastonbury Boulevard, Glastonbury, Connecticut 06033, Attn: Eric R. Newell.

5. This Statement of Domestication shall be effective upon filing with the Secretary of State of the State of Connecticut.

[SIGNATURE PAGE TO FOLLOW]


This Statement of Domestication has been approved by United Financial Bancorp, Inc. as of the date set forth above.

UNITED FINANCIAL BANCORP, INC.,
a Connecticut corporation
By:

Name:
Title:


Exhibit E

STATE OF DELAWARE

CERTIFICATE OF CONVERSION

FROM A NON-DELAWARE CORPORATION

TO A DELAWARE CORPORATION

PURSUANT TO SECTION 265 OF THE

DELAWARE GENERAL CORPORATION LAW

1.)The jurisdiction where the Non-Delaware Corporation first formed is Connecticut.

2.)The jurisdiction immediately prior to filing this Certificate is Connecticut.

3.)The date the Non-Delaware Corporation first formed is 9/13/2010.

4.)The name of the Non-Delaware Corporation immediately prior to filing this Certificate is United Financial Bancorp, Inc..

5.) The name of the Corporation as set forth in the Certificate of Incorporation is United Financial Bancorp, Inc..

IN WITNESS WHEREOF, the undersigned being duly authorized to sign on behalf of the converting Non-Delaware Corporation have executed this Certificate on the              day of                     , A.D. 2015.

By:

Name:

Print or Type
Title:

Print or Type


Exhibit F

STATEofDELAWARE

CERTIFICATEofINCORPORATION

ASTOCK CORPORATION

• First: The name of this Corporation is 

.

Second:Its registered office in the State of Delaware is to be located atStreet, in the City ofCounty ofZip Code.

The registered agent in charge thereof is 

.

Third:The purpose of the corporation is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of Delaware.

Fourth:The amount of the total stock of this corporation is authorized to issue isshares (number of authorized shares) with a par value ofper share.

• Fifth:The name and mailing address of the incorporator are as follows:

Name 
Mailing Address 

Zip Code

I, The Undersigned,for the purpose of forming a corporation under the laws of the State of Delaware, do make, file and record this Certificate, and do certify that the facts herein stated are true, and I have accordingly hereunto set my hand this  day of  , A.D. 20.

BY:

(Incorporator)
NAME:

(type or print)


Exhibit G

SECOND AMENDED AND RESTATED

BYLAWS

OF

UNITED FINANCIAL BANCORP, INC.

Effective as of [    ], 2015

TABLE OF CONTENTS

ARTICLE I. OFFICE

 Stuart E. Magdefrau1  ¨¨

ARTICLE II. SHAREHOLDERS

 1

Section 1. Place of Meetings

For

 1

Section 2. Annual Meeting

Against

 

Abstain

1
2.

Section 3. Special Meetings

 Ratification1

Section 4. Conduct of the appointment of Wolf & Company P.C. as independent auditors for the current year.Meetings

 ¨1

Section 5. Notice of Meetings

 ¨1

Section 6. Fixing of Record Date

 ¨1

The Board of Directors recommends a vote “FOR” Proposals 1 and 2.

THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS.

This proxy will be voted as directed or, if no direction is given, will be voted “FOR” the nominees under Proposal 1, “FOR” the ratification of Rockville Financial, Inc.’s appointment of independent auditors in Proposal 2; and in accordance with the determination of a majority of the Board of Directors as to any other matters. If the proxy is not marked to withhold authority to vote for the nominees, it will be voted FOR the nominees.

If you receive more than one proxy card, please sign and return all cards in the accompanying envelope. Please check your mailing address as it appears on the Revocable Proxy. If it is inaccurate, please include your correct address above.

Section 7. Voting Requirements

2

Section 8. Voting Lists

2

Section 9. Quorum

2

Section 10. Proxies

2

Section 11. Voting of Shares in the Name of Two or More Persons

2

Section 12. Voting of Shares by Certain Holders

3

Section 13. No Cumulative Voting

3

Section 14. Inspectors of Election

3

Section 15. New Business

3

Section 16. Director Nominations

3

ARTICLE III. BOARD OF DIRECTORS

4

Section 1. General Powers

4

Section 2. Board Composition

4

Section 3. Regular Meetings

5

Section 4. Qualifications

5

Section 5. Special Meetings

5

Section 6. Quorum

5

Section 7. Manner of Acting

5

i


Please be sure to date and sign this proxy card in the box below.Section 8. Action Without a Meeting

 Date5

Section 9. Resignation

 5

Section 10. Vacancies

Sign Above

 5

Section 11. Director Nominations

 Co-holder (if any) sign above6  

Section 12. Compensation

6

Section 13. Presumption of Assent

6

Section 14. Removal of Directors

6

ARTICLE IV. COMMITTEES

6

Section 1. Appointment

6

Section 2. Executive Committee

7

Section 3. Audit Committee

7

Section 4. Compensation Committee

7

Section 5. Governance and Nominating Committee

7

Section 6. Other Committees

8

Section 7. Quorum

8

Section 8. Amendments

8

ARTICLE V. OFFICERS

8

Section 1. Positions

8

Section 2. Chairman and Vice Chairman of the Board

8

Section 3. Chief Executive Officer

8

Section 4. President

9

Section 5. Appointment and Term of Office

9

Section 7. Vacancies

9

Section 8. Remuneration

9

ARTICLE VI. CONTRACTS, LOANS, CHECKS AND DEPOSITS

9

Section 1. Contracts

9

Section 2. Loans

9

Section 3. Checks, Drafts, etc

10

Section 4. Deposits

10

ARTICLE VII. CERTIFICATES FOR SHARES AND THEIR TRANSFER

10

Section 1. Certificates for Shares

10

Section 2. Transfer of Shares

10  

When shares are held by joint tenants, both should sign. Executors, administrators, trustees, etc. should give full title as such. If the signer is a corporation, please sign full corporate name by duly authorized officer.

 

ii


x

ARTICLE VIII. FISCAL YEAR

 10

6979ARTICLE IX. DIVIDENDS

 y11

ARTICLE X. CORPORATE SEAL

11

ARTICLE XI. INDEMNIFICATION

11

ARTICLE XII. AMENDMENTS

11

iii


Second Amended and Restated

Bylaws

of

United Financial Bancorp, Inc.

(Effective as of [    ], 2015)

ARTICLE I. OFFICE

The home office of United Financial Bancorp, Inc. (the “Corporation”) is in Glastonbury, Connecticut.

ARTICLE II. SHAREHOLDERS

Section 1. Place of Meetings. All annual and special meetings of shareholders shall be held at the principal office of the Corporation or at such other place as the Board of Directors may designate from time to time.

Section 2. Annual Meeting. A meeting of the shareholders of the Corporation for the election of Directors and for the transaction of any other business of the Corporation shall be held on such day and at such time and place as the Board of Directors may designate.

Section 3. Special Meetings. Subject to the terms of the Corporation’s Certificate of Incorporation, special meetings of the shareholders for any purpose or purposes may be called at any time by the Chairman of the Board, the Chief Executive Officer, or the Secretary upon the written request of a majority of the Directors or the holders of not less than ten (10%) of all of the outstanding capital stock of the Corporation entitled to vote at the meeting. Such written request shall state the purpose or purposes of the meeting and shall be delivered to the Secretary of the Corporation. Business to be transacted at any special meeting shall be limited to the purpose or purposes stated in the notice to such meeting.

Section 4. Conduct of Meetings. Annual and special meetings shall be conducted in accordance with any requirements prescribed by applicable law or these Bylaws or adopted by the Board of Directors. The Board of Directors shall designate, when present, either the Chairman of the Board or Chief Executive Officer to preside at such meetings.

Section 5. Notice of Meetings. Written notice stating the place, day, and hour of the meeting and the purpose(s) for which the meeting is called shall be delivered not fewer than ten (10) nor more than sixty (60) days before the date of the meeting, either personally or by mail, by or at the direction of the Chairman of the Board, the Chief Executive Officer, or the Secretary, to each shareholder of record entitled to vote at such meeting. If mailed, such notice shall be deemed to be delivered when deposited in the mail, addressed to the shareholder at the address as it appears on the stock transfer books or records of the Corporation as of the record date prescribed in Section 6 of this Article II with postage prepaid. When any shareholders’ meeting, either annual or special, is adjourned to a different date, time or place, notice need not be given of the new date, time or place if the new date, time or place is announced at the meeting before adjournment. If a new record date for the adjourned meeting is or must be fixed under the provisions of the Delaware General Corporation Law, notice of the adjourned meeting must be given to persons who are shareholders as of the new record date.

Section 6. Fixing of Record Date. For the purpose of determining shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment, or shareholders entitled to receive payment of any dividend, or in order to make a determination of shareholders for any other proper purpose, the Board of Directors shall fix in advance a date as the record date for any such determination of shareholders. Such date in any case shall be not more than seventy (70) days prior to the date on which the particular action, requiring such determination of shareholders, is to be taken.

1


Section 7. Voting Requirements. Except as may be otherwise specifically provided in these Bylaws, in the Certificate of Incorporation, or in the Delaware General Corporation Law, the Connecticut Banking Laws, or other applicable law, the affirmative vote, at a meeting of shareholders duly held and at which a quorum is present, of a majority of the voting power of the shares represented at such meeting that are entitled to vote on the subject matter shall be the act of the shareholders.

Section 8. Voting Lists. After fixing the record date for the meeting, the officer or agent having charge of the stock transfer books for shares of the Corporation shall make a complete list of the shareholders of record entitled to vote at such meeting, or any adjournment thereof, arranged in alphabetical order, with the address and the number of shares held by each. This list of shareholders shall be kept on file at the principal office of the Corporation and shall be subject to inspection by any shareholder of record, the shareholder’s agent or attorney at any time during usual business hours beginning two (2) business days after the notice of the meeting is given for which the list was prepared and continuing through the meeting. Such list shall also be produced and kept open at the time and place of the meeting and shall be subject to inspection by any shareholder of record, the shareholder’s agent or attorney during the entire time of the meeting. The original stock transfer book shall constitute prima facie evidence of the shareholders entitled to examine such list or transfer books or to vote at any meeting of shareholders.

Section 9. Quorum. A majority of the outstanding shares of the Corporation entitled to vote, represented in person or by proxy, shall constitute a quorum at a meeting of shareholders. If less than a majority of the outstanding shares is represented at a meeting, a majority of the shares so represented may adjourn the meeting from time to time without further notice. Once a share is represented for any purpose at a meeting, it is deemed present for quorum purposes for the remainder of the meeting and for any adjournment of that meeting unless a new record date is set for that adjourned meeting. At such adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally notified. The shareholders present at a duly organized meeting may continue to transact business until adjournment, notwithstanding the withdrawal of enough shareholders to constitute less than a quorum. If a quorum is present, the affirmative vote of the majority of the shares represented at the meeting and entitled to vote on the subject matter shall be the act of the shareholders, unless the vote of a greater number of shareholders voting together or voting by classes is required by law or the Certificate of Incorporation.

Section 10. Proxies. At all meetings of shareholders, a shareholder may vote by proxy executed in writing by the shareholder or by his or her duly authorized attorney in fact and filed with the Secretary of the Corporation, the inspector of election or the officer or agent of the Corporation authorized to tabulate votes. A proxy shall be filed with the Secretary of the Corporation prior to the meeting to the extent required by Delaware law. No proxy shall be valid more than eleven (11) months from the date of its execution unless a longer period is expressly provided in the appointment.

Section 11. Voting of Shares in the Name of Two or More Persons. When ownership stands in the name of two or more persons, in the absence of written directions to the Corporation to the contrary, at any meeting of the shareholders of the Corporation any one or more of such shareholders may cast, in person or by proxy, all votes to which such ownership is entitled. In the event an attempt is made to cast conflicting votes, in person or by proxy, by the several persons in whose names shares of stock stand, the vote or votes to which those persons are entitled shall be cast as directed by a majority of those holding such and present in person or by proxy at such meeting, but no votes shall be cast for such stock if a majority cannot agree.

2


Section 12. Voting of Shares by Certain Holders. Shares standing in the name of another corporation may be voted by any officer, agent, or proxy as the Bylaws of such corporation may prescribe, or, in the absence of such provision, as the Board of Directors of such corporation may determine. Shares held by an administrator, executor, guardian, or conservator may be voted by him or her, either in person or by proxy, without a transfer of such shares into his or her name. Shares outstanding in the name of a trustee may be voted by him or her, either in person or by proxy, but no trustee shall be entitled to vote shares held by him or her without a transfer of such shares into his or her name. Shares outstanding in the name of a receiver may be voted by such receiver, and shares held by or under control of a receiver may be voted by such receiver without the transfer into his or her name if authority to do so is consigned in an appropriate order of the court or other public authority by which such receiver was appointed.

A shareholder whose shares are pledged shall be entitled to vote such shares until the shares have been transferred into the name of the pledgee, and thereafter the pledgee shall be entitled to vote the shares so transferred.

Section 13. No Cumulative Voting. Each holder of shares of common stock shall be entitled to one vote for each share held by such holder. No holder of such shares shall be entitled to cumulative voting for any purpose, including, but not limited to, the election of Directors.

Section 14. Inspectors of Election. In advance of any meeting of shareholders, the Board of Directors may appoint one or more inspectors to act at a meeting of shareholders and make a written report of the inspector’s determinations. In case any person appointed as inspector fails to appear or fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting or at the meeting by the Chairman of the Board or the Chief Executive Officer. Each inspector shall take and sign an oath to faithfully execute the duties of inspector with strict impartiality and according to the best of the inspector’s ability. An inspector may be an officer or employee of the Corporation.

Unless otherwise prescribed by law, the duties of such inspectors shall include: determining the number of shares outstanding and the voting power of each share, the shares represented at the meeting, and the validity of proxies and ballots; counting and tabulating all votes or consents; and determining the result.

Section 15. New Business. Any new business to be taken up at the annual meeting other than at the direction of the Board of Directors shall be stated in writing and filed with the Secretary of the Corporation at least thirty (30) days before the date of the annual meeting, and all business so stated, proposed, and filed shall be considered at the annual meeting; but no other proposal other than at the direction of the Board of Directors shall be acted upon at the annual meeting. This provision shall not prevent the consideration and approval or disapproval at the annual meeting of reports of officers, Directors, and committees.

Section 16. Director Nominations. Any nominations of Directors by shareholders of record shall be stated in writing and filed with the Secretary of the Corporation at least one hundred (100) days prior to any meeting of shareholders called for the election of directors; provided however, that if fewer than 100 days’ notice of the meeting is given to shareholders, such nomination shall be filed with the Secretary of the Corporation not later than ten (10) business days following the earlier of (i) the date on which notice of such meeting was given to shareholders; or (ii) the date on which a public announcement of such meeting was first made. All nominations must comply with the Board of Directors’ nomination policy.

3


ARTICLE III. BOARD OF DIRECTORS

Section 1. General Powers. The property, business and affairs of the Corporation shall be under the direction of its Board of Directors.

Section 2. Board Composition.

(a) Effective as of the Effective Time (as defined in the Agreement and Plan of Merger, dated as of November 14, 2013, by and between United Financial Bancorp, Inc. (“United”) and Rockville Financial, Inc. (“Rockville”), as the same may be amended from time to time (the “Merger Agreement”)) and notwithstanding any other provision of these Bylaws that may be to the contrary, the Board of Directors of the Corporation shall consist of ten (10) Directors, half of whom shall be former members of the Board of Directors of Rockville chosen by Rockville (the “Former Rockville Directors”), including William H. W. Crawford, IV, and half of whom shall be former members of the Board of Directors of United (other than Richard B. Collins, who will be replaced by J. Jeffrey Sullivan) chosen by United (the “Former United Directors”). The Former United Directors and Former Rockville Directors shall be apportioned among the three (3) classes of the Board of Directors as nearly evenly as is possible. The placement of specific Former United Directors by class shall be as determined by United, and the placement of specific Former Rockville Directors by class shall be as determined by Rockville, in each case subject to the preceding sentence; provided, however, that each of Messrs. Crawford and Sullivan shall be placed in the class whose term shall expire at the Corporation’s first annual meeting of shareholders following the Effective Time (or special meeting in lieu thereof) and, subject to satisfaction of the Corporation’s then-existing re-nomination policies and criteria applicable to incumbent directors, shall be nominated for a full term; and provided further, however, that all Former Rockville Directors and Former United Directors (or any successors thereto nominated in accordance with these Bylaws) whose terms shall expire at the Corporation’s first and second annual meetings of shareholders following the Effective Time (or special meetings in lieu thereof), subject to satisfaction of the Corporation’s then-existing re-nomination policies and criteria applicable to incumbent Directors, shall be nominated for full terms. During the period (the “Three-Year Period”) beginning immediately following the Effective Time and extending through the point in time immediately prior to the later of the Corporation’s third annual meeting of shareholders following the Effective Time (or special meeting in lieu thereof) or the 2017 annual meeting of shareholders (collectively, the “Third Annual Meeting”), the number of Directors of the Corporation shall be as determined by a two-thirds vote of the entire Board of Directors; provided that the Board of Directors shall consist of an equal number of Former Rockville Directors and Former United Directors. Following the expiration of the Three-Year Period (for the avoidance of doubt, the election of Directors at the Third Annual Meeting shall be deemed for purposes of these Bylaws to follow the expiration of the Three-Year Period, and the provisions of this sentence shall apply to such election), the number of Directors of the Corporation shall be as determined by a two-thirds vote of the entire Board of Directors, and the requirement to have an equal number of Former Rockville Directors and Former United Directors shall expire. Subject to Article IV of these Bylaws, each of the Former Rockville Directors and Former United Directors shall serve on committees of the Board of Directors, consistent with their expertise and interest, and based on the needs of the Board of Directors and the requirements of such positions.

(b) The Board of Directors has resolved that, effective as of the Effective Time and notwithstanding any other provision of these Bylaws that may be to the contrary, Robert A. Stewart, Jr. shall serve as Chairman of the Board of Directors and Raymond H. Lefurge, Jr. shall serve as Vice Chairman of the Board of Directors. If, during the Three-Year Period, (i) Robert A. Stewart, Jr. cannot serve as Chairman of the Board of Directors, then a new Chairman of the Board of Directors shall be elected by a majority vote of the Former United Directors, or (ii) Mr. Lefurge cannot serve as Vice Chairman of the Board of Directors, then a new Vice Chairman of the Board of Directors shall be elected by a majority vote of the Former Rockville Directors.

4


(c) Until the expiration of the Three-Year Period, the provisions of this Section 2 may be modified, amended or repealed, and any Bylaw provision inconsistent with the provisions of this Section 2 may be adopted, only by an affirmative vote of at least two-thirds of the full Board of Directors.

Section 3. Regular Meetings. A regular meeting of the Board of Directors for the appointment of officers and the transaction of any other business that may come before such meeting shall be held without other notice than this Bylaw following the annual meeting of shareholders. The Board of Directors shall meet regularly without notice at a time and place fixed by resolution of the Board of Directors. Directors may participate in a meeting by means of a conference telephone or similar communications device through which all persons participating can hear each other at the same time. Participation by such means shall constitute presence in person for all purposes.

Section 4. Qualifications. A Director need not be a resident of the State of Delaware or Connecticut or a shareholder of the Corporation. Any person under the age of twenty-five (25) is ineligible to be elected to the Board of Directors. No person aged seventy (70) years or more is eligible for election or re-election as a Director; provided, however, that, during the Three-Year Period (for the avoidance of doubt, the election of Directors at the Third Annual Meeting shall be deemed to follow the expiration of the Three-Year Period), no Former United Director or Former Rockville Director who served as a Director as of the Effective Time shall be ineligible for re-election as a Director by virtue of being aged seventy (70) years or more at the time of re-election.

Section 5. Special Meetings. Special Meetings of the Board of Directors may be held upon the call of the Chief Executive Officer or Chairman at any time; and the Chief Executive Officer or Chairman must, upon written request of any two Directors, stating the purpose thereof, call a Special Meeting to be held not less than seven (7) or more than fifty (50) days after the receipt of such request. Written notice of the date, time, place and general purpose of all Special Meetings of the Board of Directors shall be given to each Director in person or by mail to the residence or usual place of business of each Director at least five (5) days prior to the date of such meeting.

Section 6. Quorum. A majority of the Board of Directors shall constitute a quorum for the transaction of business at any meeting of the Board of Directors.

Section 7. Manner of Acting. The act of the majority of the Directors present at a meeting at which a quorum is present shall be the act of the Board of Directors, unless a greater number is prescribed by law or by these Bylaws.

Section 8. Action Without a Meeting. Any action required or permitted to be taken by the Board of Directors at a meeting may be taken without a meeting if one or more consents in writing, setting forth the action so taken, shall be signed by all of the Directors and delivered to the Corporation. Such consents shall be filed with the Secretary in the minute books of the Corporation.

Section 9. Resignation. Any Director may resign at any time by sending a written notice of such resignation to the Board of Directors, the Chairman of the Board or the Corporation. Such resignation shall take effect when delivered unless the notice specifies a later effective date upon receipt by the Chairman of the Board or the Chief Executive Officer.

Section 10. Vacancies. Any vacancy occurring on the Board of Directors, including a vacancy resulting from an increase in the number of Directors, may be filled by the affirmative vote of a majority of the remaining Directors although less than a quorum of the Board of Directors; provided, however, that, during the Three-Year Period, the Board of Directors shall consider for election only nominees recommended by the Governance and Nominating Committee. A Director elected to fill a vacancy, including a vacancy resulting from an increase in the number of Directors, shall be elected to serve for a term expiring at the next annual meeting at which Directors are elected and which such Director’s successor shall have been elected and qualified.

5


Section 11. Director Nominations. During the Three-Year Period, but excluding nominations with respect to the Third Annual Meeting, the Governance and Nominating Committee shall nominate for election to the full Board of Directors in accordance with applicable federal securities laws and applicable stock listing regulations, by majority vote of the Former Rockville Directors serving on the Governance and Nominating Committee (with respect to election of a successor to a Former Rockville Director (it being understood that a Former Rockville Director may be re-elected as his or her successor)) or by majority vote of the Former United Directors serving on the Governance and Nominating Committee (with respect to election of a successor to a Former United Director (it being understood that a Former United Director may be re-elected as his or her successor)), as the case may be, Board nominees for election and/or re-election to the Board at the annual meeting of shareholders and candidates to fill vacancies on the Board in between annual meetings of shareholders. During the Three-Year Period, (a) any person elected to replace a Former Rockville Director shall be deemed to be a “Former Rockville Director” for all purposes under these Bylaws and (b) any person elected to replace a Former United Director shall be deemed to be a “Former United Director” for all purposes under these Bylaws.

Beginning with nominations for election to the Board at the Third Annual Meeting, the Governance and Nominating Committee shall recommend to the full Board of Directors, by majority vote, Board nominees for election and/or re-election to the Board at the annual meeting of shareholders and candidates to fill vacancies on the Board in between annual meetings of shareholders. Beginning with nominations for election to the Board at the Third Annual Meeting, the Board of Directors shall nominate Board nominees for election and/or re-election to the Board at the annual meeting of shareholders and shall fill vacancies on the Board in between annual shareholder meetings from the candidates recommended by the Governance and Nominating Committee in accordance with the foregoing procedure.

Section 12. Compensation. The Board of Directors shall have authority to fix fees of Directors, including a reasonable allowance for expenses actually incurred in connection with their duties.

Section 13. Presumption of Assent. A Director of the Corporation who is present at a meeting of the Board of Directors at which action on any association matter is taken shall be presumed to have assented to the action taken unless: (a) he or she objects at the beginning of the meeting, or promptly upon his or her arrival, to holding it or transacting business at the meeting; (b) his or her dissent or abstention from the action taken shall be entered in the minutes of the meeting; or (c) he or she shall file a written notice of such dissent or abstention to such action with the presiding officer of the meeting before the adjournment thereof or to the Corporation immediately after adjournment of the meeting. Such right to dissent or abstain shall not apply to a Director who voted in favor of such action.

Section 14. Removal of Directors. At a meeting of shareholders called expressly for that purpose, any Director may be removed only for cause by a vote of the holders of not less than two-thirds (2/3) of the Board of Directors and eighty percent (80%) of the shares then entitled to vote at an election of Directors.

ARTICLE IV. COMMITTEES

Section 1. Appointment. Effective as of the Effective Time, the Board of Directors shall maintain the following Committees of the Board of Directors: Executive Committee, Audit Committee, Compensation Committee, and Governance and Nominating Committee. The designation of any committee pursuant to this Section 1 and the delegation of authority shall not operate to relieve the Board of Directors, or any Director, of any responsibility imposed by law or regulation. The Board may establish other committees from time to time.

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Section 2. Executive Committee. Effective as of the Effective Time, the Board of Directors shall appoint an Executive Committee. During the Three-Year Period, (a) the Executive Committee shall consist of eight (8) Directors, four (4) of whom shall be Former Rockville Directors and four (4) of whom shall be Former United Directors, (b) the Chairman of the Executive Committee shall be the Chairman of the Board and (c) the Executive Committee shall include the Chairman of the Board, the Vice Chairman of the Board, the Chairmen of each of the Audit, Compensation and Governance and Nominating Committees, an at-large Former United Director and two at-large Former Rockville Directors (provided that the Chairman of the Risk Committee of United Bank (successor to Rockville Bank) shall be one of the at-large Former Rockville Directors to the extent such Chairman is serving on the Board of Directors of the Corporation). Except as required by law or as otherwise provided by the Board of Directors, the Executive Committee shall be vested with the full powers and authority of the Board of Directors of the Corporation.

Section 3. Audit Committee. Effective as of the Effective Time, the Board of Directors shall appoint an Audit Committee, all of the members of which shall be independent as required by applicable federal securities laws and any applicable stock listing regulations. During the Three-Year Period, (a) the Audit Committee shall consist of an equal number of Former Rockville Directors and Former United Directors unless the Board unanimously determines otherwise and (b) the Chairman of the Audit Committee shall be a Former United Director and shall be designated by a majority vote of the Former United Directors. At least one (1) one member shall be a financial expert in accordance with applicable federal securities law and any applicable stock listing regulations, or disclosure must be made in accordance with applicable securities disclosure rules. The Audit Committee shall, annually, have an audit or examination of the books, records, accounts and affairs of the Corporation made by certified public accountants selected by the Audit Committee in accordance with Delaware law and applicable federal securities laws. The Audit Committee shall have authority to determine what other or further audits or examinations of the Corporation or its affairs shall be made, the extent thereof and by whom the same shall be made and to arrange therefore.

Section 4. Compensation Committee. Effective as of the Effective Time, the Board of Directors shall appoint a Compensation Committee, all of the members of which shall be independent as required by applicable federal securities laws and any applicable stock listing regulations. During the Three-Year Period, (a) the Compensation Committee shall consist of an equal number of Former Rockville Directors and Former United Directors unless the Board unanimously determines otherwise and (b) the Chairman of the Compensation Committee shall be a Former Rockville Director and shall be designated by a majority vote of the Former Rockville Directors. The Compensation Committee shall have such powers as are delegated from time to time by the Board of Directors.

Section 5. Governance and Nominating Committee. Effective as of the Effective Time, the Board of Directors shall appoint a Governance and Nominating Committee, all of the members of which shall be independent as required by applicable federal securities laws and any applicable stock listing regulations. During the Three-Year Period, (a) the Governance and Nominating Committee shall consist of an equal number of Former Rockville Directors and Former United Directors unless the Board unanimously determines otherwise and (b) the Chairman of the Governance and Nominating Committee shall be a Former United Director and shall be designated by a majority vote of the Former United Directors. Until (and excluding elections to the Board at) the Third Annual Meeting, the Governance and Nominating Committee shall nominate persons for election and/or re-election in accordance with applicable federal securities laws, any applicable stock listing regulations and these Bylaws. Beginning with nominations for election to the Board at the Third Annual Meeting, and in accordance with applicable federal securities laws and stock listing requirements, the Governance and

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Nominating Committee shall recommend to the Board of Directors, Board nominees for election and/or re-election to the Board at the annual meeting of shareholders and candidates to fill vacancies on the Board between annual meetings of shareholders. The Governance and Nominating Committee shall have such other powers as are delegated from time to time by the Board of Directors.

Section 6. Other Committees. The Board of Directors may by resolution establish other Committees composed of Directors as they may determine to be necessary or appropriate for the conduct of the business of the Corporation and may prescribe the duties, constitution, and procedures thereof. Notwithstanding the foregoing, during the Three-Year Period, (a) any such resolution of the Board of Directors shall be approved by two-thirds of the full Board of Directors and (b) each Committee shall consist of an equal number of Former Rockville Directors and Former United Directors.

Section 7. Quorum. A majority of the members of any Committee shall constitute a quorum, and the vote of a majority of the members present at a meeting shall be the act of the Committee.

Section 8. Amendments. During the Three-Year Period, the provisions of this Article IV may be modified, amended or repealed, and any Bylaw provision inconsistent with the provisions of this Article IV may be adopted, only by an affirmative vote of at least two-thirds of the full Board of Directors.

ARTICLE V. OFFICERS

Section 1. Positions. The officers of the Corporation shall be a Chairman of the Board of Directors, a Vice Chairman of the Board of Directors, a Chief Executive Officer, a President, one or more Vice Presidents, a Secretary, and a Treasurer and/or a Chief Financial Officer, each of whom shall be elected by the Board of Directors. The Board of Directors may designate one or more Vice Presidents as Executive Vice President, Senior Vice President or other designation. The Board of Directors may also elect or authorize the appointment of such other officers as the business of the Corporation may require. The officers shall have such authority and perform such duties as the Board of Directors may from time to time authorize or determine. In the absence of action by the Board of Directors, the officers shall have such powers and duties as generally pertain to their respective offices. Except as otherwise provided herein, any two (2) or more offices may be held by the same person.

Section 2. Chairman and Vice Chairman of the Board. It shall be the duty of the Chairman of the Board to preside, when present, at all meetings of the Board of Directors. The Chairman shall perform such duties and have such powers as may from time to time be prescribed by statutes or by these Bylaws, or by the Board of Directors. The Chairman of the Board of Directors may not serve as the Chief Executive Officer of the Corporation. The Vice Chairman of the Board shall assume the duties of the Chairman in his or her absence. The Vice Chairman shall also perform such duties as may be prescribed from time to time by the Board of Directors; during the Three-Year Period, he or she shall assist with the integration of the Former United Directors and Former Rockville Directors.

Section 3. Chief Executive Officer. The Chief Executive Officer shall be the principal executive officer of the Corporation and shall have the active management of the business, property and affairs of the Corporation, subject to the authority of the Board of Directors. The Chief Executive Officer shall be responsible for driving the strategic objectives of the Corporation. In the absence of the Chairman and Vice Chairman of the Board, the Chief Executive Officer may preside at meetings of the Board of Directors, or with his or her approval a chairman of the meeting may be appointed to preside. He or she shall perform such duties and have such powers as are incident to the office of the Chief Executive Officer and as may from time to time be prescribed by statute or by these Bylaws, or by the Board of Directors. As of the Effective Time, William H. W. Crawford, IV shall be appointed as Chief Executive Officer. The removal of Mr. Crawford from, or the failure to appoint Mr. Crawford to, the Chief Executive Officer position, and any amendment to or termination of any employment agreement with

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Mr. Crawford, prior to the expiration of the Three-Year Period, and any determination not to nominate Mr. Crawford as a Director of the Corporation, prior to the Third Annual Meeting, shall each require the affirmative vote of at least two-thirds of the full Board of Directors, excluding Mr. Crawford.

Section 4. President. The President shall be an executive officer reporting on a straight line to the Chief Executive Officer and shall have such line authority as designated by the Chief Executive Officer and shall otherwise assist the Chief Executive Officer in the active management of the business, property and affairs of the Corporation, subject to the authority of the Board of Directors. As of the Effective Time, J. Jeffrey Sullivan shall be appointed as President. The removal of Mr. Sullivan from, or the failure to appoint Mr. Sullivan to, the President position, and any amendment to or termination of any employment agreement with Mr. Sullivan, prior to the expiration of the Three-Year Period, and any determination not to nominate Mr. Sullivan as a Director of the Corporation, prior to the Third Annual Meeting, shall each require the affirmative vote of at least two-thirds of the full Board of Directors, excluding Mr. Sullivan.

Section 5. Appointment and Term of Office. The officers of the Corporation shall be appointed annually at the first meeting of the Board of Directors held after each annual meeting of the shareholders. If the appointment of officers is not made at such meeting, such appointment shall be held as soon thereafter as possible. Each officer shall hold office until a successor has been duly appointed and qualified or until the officer’s death, resignation or removal in the manner hereinafter provided. Appointment of an officer, employee, or agent shall not of itself create contractual rights. The Board of Directors may authorize the Corporation to enter into an employment contract with any officer in accordance with applicable regulations; but no such contract shall impair the right of the Board of Directors to remove any officer at any time in accordance with Section 6 of this Article V.

Section 6. Removal. Except as otherwise provided in these Bylaws, any officer may be removed by the Board of Directors at any time with or without cause. An officer’s removal does not affect the officer’s contract rights, if any, with the Corporation.

Section 7. Vacancies. A vacancy in any office because of death, resignation, removal, disqualification, or otherwise may be filled by the Board of Directors for the unexpired portion of the term.

Section 8. Remuneration. The remuneration of the named executive officers shall be determined by, or at the direction of, the Board of Directors or the Human Resources Committee pursuant to policies developed by such bodies from time to time in compliance with applicable law, regulations and rules.

ARTICLE VI. CONTRACTS, LOANS, CHECKS AND DEPOSITS

Section 1. Contracts. Except as otherwise prescribed by law or these Bylaws with respect to certificates for shares and subject always to the directions of the Board of Directors, the Chief Executive Officer may authorize any officer, employee, or agent of the Corporation to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Corporation. Such authority may be general or confined to specific instances.

Section 2. Loans. Subject always to the specific directions of the Board of Directors, no loans shall be contracted on behalf of the Corporation and no evidence of indebtedness shall be issued in its name unless executed in its name by the Chief Executive Officer or the President or such officer as may be designated by the Chief Executive Officer or the President. Such authority may be general or confined to specific instances.

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Section 3. Checks, Drafts, etc. Subject always to the specific directions of the Board of Directors, all checks, drafts, or other orders for the payment of money, notes, or other evidences of indebtedness issued in the name of the Corporation shall be signed by one or more officers, employees or agents of the Corporation in such manner as shall from time to time be determined by the Chief Executive Officer or the President.

Section 4. Deposits. All funds of the Corporation not otherwise employed shall be deposited from time to time to the credit of the Corporation in any duly authorized depositories as the Board of Directors may select.

ARTICLE VII. CERTIFICATES FOR SHARES AND THEIR TRANSFER

Section 1. Certificates for Shares. The shares of the Corporation’s stock may be certificated or uncertificated, as provided under the Delaware General Corporation Law, and shall be entered into the books of the Corporation and registered as they are issued. Any registered shareholder shall be entitled to a physical stock certificate upon written request to the transfer agent or registrar of the Corporation. In the case of certified shares, certificates representing shares of capital stock of the Corporation shall be in such form as shall be determined by the Board of Directors and permitted by law. Such certificates shall be signed by the Chief Executive Officer or by any other officer of the Corporation authorized by the Board of Directors, attested by the Chief Financial Officer, and sealed with the corporate seal or a facsimile thereof. The signatures of such officers upon a certificate may be facsimiles if the certificate is manually signed on behalf of a transfer agent or a registrar other than the Corporation itself or one of its employees. Each certificate for shares of capital stock shall be consecutively numbered or otherwise identified. The name and address of the person to whom the shares are issued, with the owner of shares and date of issue, shall be entered on the stock transfer books of the Corporation. All certificates surrendered to the Corporation for transfer shall be cancelled and no new certificate shall be issued until the former certificate, if such shares were represented by a certificate, for a like number of shares has been surrendered and cancelled, except that in the case of a lost or destroyed certificate, a new certificate may be issued upon such terms and indemnity to the Corporation as the Board of Directors may prescribe.

Section 2. Transfer of Shares. Subject to any applicable restrictions on transfer and ownership of securities, and unless otherwise provided by the Board of Directors, transfers of capital stock of the Corporation, if such stock is certificated, shall be made only on its stock transfer books. Authority for such transfer shall be given only by the holder of record or by his or her legal representative, who shall furnish proper evidence of such authority, or by his or her attorney authorized by a duly executed power of attorney filed with the Corporation. Such transfer shall be made only on surrender for cancellation of the certificate for such shares. The person in whose name shares of capital stock stand on the books of the Corporation shall be deemed by the Corporation to be the owner for all purposes. Upon the receipt of proper transfer instructions from the registered owner of uncertificated shares, the Corporation shall cancel the uncertificated shares and issue new equivalent uncertificated shares or certificated shares to the shareholder entitled thereto. Such transfers of stock shall be recorded on the books of the Corporation kept at an office of the Corporation or by transfer agents designated to transfer shares of the stock of the Corporation. Any or all of the signatures required by this Section may be made by facsimile.

ARTICLE VIII. FISCAL YEAR

The fiscal year of the Corporation shall end on the 31st day of December of each year.

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ARTICLE IX. DIVIDENDS

The Board of Directors may authorize and the Corporation may pay dividends and make distributions to shareholders to the extent permitted by law. Such dividends will be payable to shareholders of record at the close of business on the date determined by the Board of Directors provided that if the Board of Directors does not designate the record date for determining shareholders entitled to a distribution, it shall be the date the Board of Directors authorizes the distribution. Such distribution shall be paid on a named day not more than seventy (70) days thereafter, and the Directors may further close the transfer books during the period from the day as of which the right to such dividend is determined through the day upon which the same is to be paid. No dividend shall be paid unless duly voted by the Directors of the Corporation. Dividends may be paid in cash, property, or shares of the Corporation.

ARTICLE X. CORPORATE SEAL

The seal of the Corporation shall have inscribed thereon the name of the Corporation and the words “Seal” and “Delaware”.

ARTICLE XI. INDEMNIFICATION

The Corporation shall indemnify and reimburse each current and former Director, officer or employee of this Corporation, or any other agent or person performing on behalf of the Corporation, and his or her heirs, executors, or administrators, to the fullest extent permitted by law, including but not limited to those situations for which reimbursement and/or indemnification is permitted under Section 145 of the Delaware General Corporation Law. In no event shall any payments made by the Corporation pursuant to this Article XI exceed the amount permissible under state or federal law, including but not limited to the limitations on indemnification imposed by Section 18(k) of the Federal Deposit Insurance Act and the regulations issued thereunder by the Federal Deposit Insurance Corporation.

ARTICLE XII. AMENDMENTS

These Bylaws may be amended by: (i) the approval of the amendment by a majority vote of the Board of Directors, unless a different vote requirement is prescribed by these Bylaws; or (ii) a majority vote of the votes cast by the shareholders of the Corporation at any meeting providing that an amendment by the shareholders to the provisions of Articles II, III or XII shall require a vote of not less than eighty percent (80%) of the outstanding capital stock of the Corporation. No Bylaws shall be amended or repealed unless written notice of such proposed action shall have been given with respect to the meeting at which such action shall be taken.

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