Company: PNBK
Filing Date: 2025-05-19
Form Type: 8-K
Source: 0001171843-25-003304
Chunk: 2

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-05-19
Form: 8-K
Item: Item 5.02
Chunk 2
---
 policies and subject
to the review for increase at least annually by the Compensation Committee of the Board of Directors of the Company pursuant to customary
performance review policies. With respect to each fiscal year ending during the Employment Period, the executive will be eligible to receive
an annual bonus (the “ Annual Bonus”) under the Company’s 2025 Omnibus Equity Incentive Plan (the “ Plan”),
with an annual target of at least 50% of the Annual Base Salary, prorated for any partial year, in either cash or in the form of equity
awards.

The Company is obligated to issue, within ninety (90) days
following the closing of the Private Placement, an initial equity award of restricted stock units (“ RSUs”) under the Plan
(the “ Initial Equity Award”) to each of Mr. Simmons and Ms. Miranda. Mr. Simmons’ Initial Equity Award represents the
right to receive 1,000,000 shares of Common Stock and Ms. Miranda’s Initial Equity Award represents the right to receive 450,000
shares of Common Stock, in each case, subject to the terms of the applicable Employment Agreement and award agreement. RSUs vest in three
equal annual installments beginning on April 30, 2026, subject to each executive’s continued employment through each applicable
vesting date.

The Company is also obligated to issue to Mr. Simmons an
annual equity award of RSUs (the “ Annual Equity Award”) within thirty (30) days following the end of each calendar year during
the term of the Simmons Employment Agreement. The Annual Equity Award represents the right to receive the number of shares of Common Stock
equal to 0.5% multiplied by the number of then outstanding shares of Common Stock and shares of Common Stock issuable upon the conversion
of preferred stock or convertible debt instruments, subject to certain exceptions, as of the most recent year-end minus the greater of
(i) the number of shares of Common Stock previously issued to Mr. Simmons in connection with his Initial Equity Award and Annual Equity
Awards and (ii) 100,000,000 shares of Common Stock.

Within ten business days following the date on which the
RSUs are vested, the Company will be obligated to deliver to each executive: (i) to the extent the Plan has not been approved by the Company’s
shareholders, cash equal to the fair market value of one share of Common Stock for each RSU that vested on the applicable vesting date;
or (ii) to