Company: FFWM
Filing Date: 2025-02-13
Form Type: 8-K
Source: 0001104659-25-012975
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Company: First Foundation Inc.
Filing Date: 2025-02-13
Form: 8-K
Item: Item 5.02
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Item 5.02      Departure                                                                                  

As previously reported, First Foundation Inc. (the
“ Company”) and its wholly-owned subsidiary, First Foundation Bank (the “ Bank”), appointed Thomas C. Shafer as
Chief Executive Officer on November 21, 2024. On February 11, 2025, the Company and the Bank entered into an Employment Agreement with
Mr. Shafer, with an initial term commencing on February 11, 2025 and ending on March 15, 2028 (the “ Shafer Employment Agreement”).
The term of the Shafer Employment Agreement will automatically renew for single one-year terms absent notice by any party of non-renewal.
Pursuant to the Shafer Employment Agreement, Mr. Shafer will receive an annual base salary of $1,090,000, subject to annual adjustment,
but not reduction, at the discretion of the Board of Directors or its Compensation Committee. In addition, during each fiscal year during
the term, Mr. Shafer will be entitled to an annual discretionary incentive opportunity equal to 150% of his then-current annual base salary,
one-half of which will be in the form of an annual cash bonus and one-half of which will be in the form of performance restricted stock
units. Each of such annual cash bonus and performance restricted stock unit award will be earned and paid based on the terms and conditions
(including achievement of performance metrics) determined by the Board of Directors in its sole discretion; provided that with respect
to the 2025 fiscal year, Mr. Shafer will be entitled to receive a cash bonus of not less than $500,000. Mr. Shafer will also be eligible
to participate in the other benefit programs of the Company and the Bank available to executive employees generally.

If Mr. Shafer’s employment is terminated
without cause or Mr. Shafer terminates his employment for good reason (in each case, as defined in the Shafer Employment Agreement), then
he will be entitled to a lump sum payment equal to the lesser of (i) 12 months of his annual base salary and (ii) the aggregate base salary
that would have been paid to him for the remainder of the term of the Shafer Employment Agreement if such remaining term is shorter than
12 months. In the event of termination of Mr. Shafer’s employment due to his death, his beneficiaries will be paid an amount equal
to 100% of his base annual salary at the rate in effect immediately