Document:

Exhibit

Exhibit 10.2
SunTrust Banks, Inc. 
2018 Omnibus Incentive Compensation 

NON-EMPLOYEE DIRECTOR
RESTRICTED STOCK UNIT AGREEMENT

SunTrust Banks, Inc. (“SunTrust”), a Georgia corporation, upon the recommendation of the Governance and Nominating Committee of its Board of Directors and pursuant to action of the Compensation Committee (“Committee”) in accordance with the SunTrust Banks, Inc. 2018 Omnibus Incentive Compensation Plan (“Plan”), has granted restricted stock units (the “Restricted Stock Units”) as an incentive for Grantee to promote the interests of SunTrust and its Subsidiaries. Each Restricted Stock Unit represents the right to receive a payment in cash equal to the Fair Market Value of SunTrust Common Stock, $1.00 par value, at a future date and time, subject to the terms of this Restricted Stock Unit Agreement.   

	
									
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Name of Grantee
	 
	 
	  
	 
	 
	 
	 
	 

	 
	 
	 

	Number of Restricted Stock Units
	 
	 
	  
	 
	 
	 
	 
	 

	 
	 
	 

	Grant Date
	 
	 
	  
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	Closing Price of SunTrust Stock on Grant Date
	$
	 
	 
	 
	 
	 
	 
	 

This Non-Employee Director Restricted Stock Unit Agreement (the “Agreement”) evidences this grant, which has been made subject to all the terms and conditions set forth on the attached Terms and Conditions and in the Plan.   

	
	
	 

	 

	 

TERMS AND CONDITIONS RESTRICTED STOCK UNIT AGREEMENT

§ 1. EFFECTIVE DATE. This Grant of Restricted Stock to the Grantee is effective as of [Grant Date] (“Grant Date”). 

§ 2. VESTING. All Restricted Stock Units subject to this Agreement shall vest upon the earlier of (a) the first (1st) anniversary of the Grant Date, and (b) the next annual meeting of shareholders of the Company (“Vesting Date”), provided that Grantee is an active member of SunTrust’s Board of Directors (“Board”) on that date and such Restricted Stock Units have not previously vested or been forfeited pursuant to § 3. 

§ 3. ACCELERATED VESTING. 

(a) If the Grantee’s membership on the Board terminates prior to the Vesting Date and the date of a Change in Control as a result of the Grantee’s (i) death, (ii) disability within the meaning of Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”)) or (iii) attainment of mandatory retirement age for Board members, then all Restricted Stock Units (and related Dividend Equivalent Rights) subject to this Agreement shall become vested on the date of such termination. 

(b) If there is a Change in Control followed by the involuntary termination of the Grantee’s membership on the Board prior to the Vesting Date, and if such termination is not a Termination for Cause (as defined below), then all Restricted Stock Units (and related Dividend Equivalent Rights) subject to this Agreement shall become vested on the date of such termination. 

(c) If the Grantee’s membership on the Board terminates prior to the Vesting Date for any reason other than those described in § 3(a) or § 3(b), then any Restricted Stock Units that are not then vested (and related Dividend Equivalent Rights) shall be completely forfeited on the date of such termination. 

(d) For purposes of this Agreement, the following terms shall have the meanings set forth below: 

(i) Termination for Cause - means termination of membership on the Board which is made primarily because of (A) Grantee’s commission of a felony, or Grantee’s perpetration of a dishonest act, misappropriation of funds, embezzlement, criminal conduct or common law fraud against SunTrust or any Subsidiary, or (B) any other willful act or omission of the Grantee which is materially injurious to the financial condition or business reputation of SunTrust or any Subsidiary. 

(ii) Dividend Equivalent Right - means a right that entitles the Grantee to receive an amount equal to any dividends paid on a share of Stock, which dividends have a record date between the Grant Date and the date the Restricted Stock Units are paid. 

§ 4. GRANTEE’S RIGHTS PRIOR TO PAYMENT. 

(a) The Grantee shall be entitled to a Dividend Equivalent Right for each Restricted Stock Unit subject to this Agreement that vests. Amounts deemed received pursuant to such Dividend Equivalent Rights shall be treated as though they were reinvested in Restricted Stock Units and as part of this grant on the date related dividends are paid, so that they shall be forfeited or payable at the same time as the Restricted Stock Units. 

(b) Neither the Plan, this Agreement nor the Restricted Stock Units give the Grantee any rights as a shareholder of SunTrust, including the right to vote or receive dividends. The Grantee is an unsecured general creditor of SunTrust with respect to any cash payment relating to vested Restricted Stock Units, and any payment provided pursuant to this Agreement shall be made from SunTrust’s general assets. 

(c) No Restricted Stock Units granted pursuant to this Agreement shall be deemed transferable by the Grantee other than by will or by the laws of descent and distribution prior to the time the Restricted Stock Units become payable to the Grantee or to his or her beneficiary. 

§ 5. PAYMENT OF AWARD. 

(a) Unless the Restricted Stock Units subject to this Agreement are deferred pursuant to the SunTrust Banks, Inc. Directors Deferred Compensation Plan (the “Deferred Compensation Plan”), the value of the vested Restricted Stock Units (and related Dividend Equivalent Rights) shall be paid in a cash lump sum on the Vesting Date. For purposes of the preceding sentence, the value of each vested Restricted Stock Unit will equal the Fair Market Value of a share of Stock on the Vesting Date. In the event the Restricted Stock Units subject to this Agreement are deferred, such Restricted Stock Units (and related Dividend Equivalent Rights) shall be paid in accordance with the terms of the Deferred Compensation Plan. 

TERMS AND CONDITIONS RESTRICTED STOCK UNIT AGREEMENT

(b) To the extent that Grantee does not vest in any Restricted Stock Units, all interest in such Restricted Stock Units (and related Dividend Equivalent Rights) shall be forfeited. The Grantee has no right or interest in any Restricted Stock Unit or related share of Stock that is forfeited. 

§ 6. WITHHOLDING. Upon the payment of any Restricted Stock Units, SunTrust’s obligation to deliver cash to settle the vested Restricted Stock Units and Dividend Equivalent Rights shall be subject to the satisfaction of applicable tax withholding requirements, including federal, state, and local requirements. The Grantee must pay to SunTrust any applicable federal, state or local withholding tax due as a result of such payment. 

§ 7. NO SERVICE RIGHTS. Nothing in the Plan or this Agreement or any related material shall give the Grantee the right to continue as a member of the Board of SunTrust or any Subsidiary or adversely affect the right of SunTrust or any Subsidiary to terminate the Grantee’s membership on the Board with or without cause at any time. 

§ 8. MISCELLANEOUS. 

(a) This Agreement shall be subject to all of the provisions, definitions, terms and conditions set forth in the Plan and any interpretations, rules and regulations promulgated by the Committee from time to time, all of which are incorporated by reference in this Agreement. 

(b) The Plan and this Agreement shall be governed by the laws of the State of Georgia (without regard to its choice-of-law provisions). 

(c) Any written notices provided for in this Agreement that are sent by mail shall be deemed received three (3) business days after mailing, but not later than the date of actual receipt. Notices shall be directed, if to Grantee, at Grantee’s address indicated by SunTrust’s records and, if to SunTrust, at SunTrust’s principal executive office. (c) If one or more of the provisions of this Agreement shall be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and the invalid, illegal or unenforceable provisions shall be deemed null and void; however, to the extent permissible by law, any provisions which could be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Agreement to be construed so as to foster the intent of this Agreement and the Plan. 

(d) This Agreement (which incorporates the terms and conditions of the Plan) and, in the event the Restricted Stock Units are deferred, the Deferred Compensation Plan constitute the entire agreement of the parties with respect to the subject matter hereof. This Agreement and the Deferred Compensation Plan, if applicable, supersede all prior discussions, negotiations, understandings, commitments and agreements with respect to such matters. 

(e) The Restricted Stock Units and related Dividend Equivalent Rights are intended to comply with Code Section 409A and official guidance issued thereunder. Notwithstanding anything herein to the contrary, this Agreement shall be interpreted, operated and administered in a manner consistent with this intention.OFG
BANCORP

2007
OMNIBUS PERFORMANCE INCENTIVE PLAN

RESTRICTED
UNIT AWARD AND AGREEMENT

                This
Restricted Unit Award and Agreement (the “Award”) is made and entered into on
this XXth day of XXXXXXXXXX of 20XX, by and between OFG Bancorp (the
“Corporation”) and XXXXXXXXXXXXXX (the “Grantee”).  All capitalized terms not
otherwise defined herein shall have the meanings ascribed to them in the 2007
Omnibus Performance Incentive Plan, as amended and restated (the “Plan”). 
Whenever appropriate, words and terms used in the singular shall be deemed to
include the plural, and vice versa, and the masculine gender shall be deemed to
include the feminine gender.

 

                WHEREAS, 
the Corporation has established and maintains the Plan to, among other things,
provide flexibility to the Corporation and its Affiliates to attract, retain
and motivate their directors, officers, and other key employees through the
grant of awards based on performance and to adjust their compensation practices
to the best compensation practices and corporate governance trends as they
develop from time to time;  

 

                WHEREAS, 
the Plan is further intended to motivate high levels of individual performance
coupled with increased shareholder returns;

 

                WHEREAS, 
the Plan is administered by the Compensation Committee of the Board of
Directors of the Corporation (the “Plan Administrator”);  

 

                WHEREAS, 
Grantee is eligible to participate in the Plan; and

 

                WHEREAS, 
the Plan Administrator has determined that Grantee shall participate and
receive performance incentives under the Plan.

 

                NOW,
THEREFORE, in consideration of the premises, and subject to the terms and
conditions of the Plan, the Corporation and Grantee agree as follows:

 

                SECTION
1.  Award; Grantee Rights.  The Corporation hereby awards XXX
XXXX(XXX) Restricted Units (the “Restricted Units”) to Grantee for the
acquisition of an equal number of shares of Common Stock at the end of the
Restricted Period.  A Restricted Unit does not
represent an equity interest in the Corporation and carries no voting or
dividend rights, except as otherwise set forth in this Agreement.  The
Restricted Units may be forfeited to, and acquired at no cost by, the
Corporation as set forth in this Agreement.  

 

                SECTION
2.  Deferred Dividends.  During the Restricted Period, the Grantee
will not have any right to receive the payment of any dividends in connection
with the Restricted Units.  Upon the lapse of the Restricted Period, the
Grantee will have the right to receive, together with the shares of Common
Stock, a cash payment equal to the dividends declared by the Corporation during
the Restricted Period that would have been paid upon such shares of Common
Stock.

 

                SECTION
3.  Lapse of Restricted Period.   Subject to Article X
of the Plan regarding a Change of Control and Section 3 of this Agreement, the
Restricted Period shall commence on the date of this Award and shall lapse with
respect to thirty-three percent (33%) of the Restricted Units on the first
anniversary of the date of this Award, with respect to an additional
thirty-three percent (33%) of the Restricted Units on the second anniversary of
the date of this Award, and with respect to the remaining thirty-four percent
(34%) of the Restricted Units on the third anniversary of the date of this
Award.  Notwithstanding anything to the contrary herein, upon the lapse of the
Restricted Period, the Compensation Committee may, in its sole discretion,
elect to pay cash or part cash and part Common Stock in lieu of delivering only
Common Stock.  If a cash payment is made in lieu of delivering Common Stock,
the amount of such cash payment for each share of Common Stock to which Grantee
is entitled shall be equal to the Fair Market Value of the Common Stock on the
date on which the Restricted Period lapsed.

 

SECTION 4.  Termination of Employment. 
The following provisions shall apply in the event of Grantee’s termination of
employment with the Corporation or any Affiliate: 

 

 

 

(a)           Due
to Death or Disability.  In the event Grantee’s employment or service
terminates by reason of his death or disability during the Restricted Period,
the Restricted Units will be considered fully vested and payment of the Award
will be made to Grantee, or Grantee’s estate or beneficiaries, as applicable.

 

(b)           Due
to Retirement.  In the event Grantee’s employment terminates by reason of
retirement during the applicable Restricted Period, Grantee (or Grantee’s
estate or beneficiaries, if Grantee subsequently dies) shall receive a payment
calculated in the following manner: (i) the Restricted Units will be
reduced by multiplying the grant under this Award by a fraction, the numerator
of which is the number of full months in the applicable Restricted Period
during which Grantee was an active employee and the denominator of which is the
number of months in the full Restricted Period applicable to such Restricted
Units (with a partial month worked counted as a full month if Grantee is an
active employee for 15 days or more in that month); and (ii) the resulting
reduced number of Restricted Units shall be considered vested and payment of
such pro-rated Award is to be made to Grantee (or Grantee’s beneficiaries or
estate, if Grantee subsequently dies) as soon as practicable after Grantee’s
termination of employment.  For purposes of this Section, resignation by the
Participant will only be considered a “retirement” if they have achieved a minimum
of ten (10) years of service and attained a minimum age of sixty (60) years as
of the date of termination.

 

(c)           Due
to Any Other Reason.  In the event Grantee’s employment is terminated by
the Corporation or any Affiliate for any other reason during
the applicable Restricted Period, the Restricted Units shall be forfeited.

 

                SECTION 5.  Termination of Non-Employee Director. 
In the event a Grantee’s service as a Non-Employee Director shall terminate for
reasons other than removal for Cause, Grantee (or his estate or beneficiaries,
if he subsequently dies) shall receive a payment calculated in the following
manner: (i) the number of Restricted Units will be reduced by multiplying
the grant under this Award by a fraction, the numerator of which is the number
of full months in the applicable vesting period during which Grantee was an
active Non-Employee Director and the denominator of which is the number of
months in the applicable vesting period (with a partial month worked counted as
a full month if Grantee is an active Non-Employee Director for 15 days or more
in that month); and (ii) the resulting reduced number of Restricted Units
shall be considered vested and payment of such pro-rated Awards is to be made
to Grantee (or his or her beneficiaries or estate, if he subsequently dies) as
soon as practicable after his termination as a Non-Employee Director.  In the
event Grantee’s service as a Non-Employee Director is terminated for Cause, any
remaining Restricted Units granted to him shall be forfeited at the time of
such termination, and Grantee shall disgorge any profit, gain or other benefit
received in respect of the lapse of restrictions on any prior Restricted Units
for a period of twelve (12) months prior to his termination for Cause.  In the
event Grantee’s service as a Non-Employee Director is terminated for Cause, the
provisions of this paragraph will apply notwithstanding any assertion (by
Grantee or otherwise) of a termination for any other reason.

 

                SECTION
6.  Adjustments to or Forfeiture of Award.  The Plan Administrator
may determine on a case-by-case basis any adjustments to the terms of this
Award or the forfeiture of the Award because of violations by the Grantee of
the Corporation’s policies or any applicable laws and regulations.  In addition,
the Restricted Units will be subject to any clawback policy established by the
Corporation or the Plan Administrator from time to time.

 

                SECTION
7.  Transferability of Award.  This Award may not be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other
than by will or by the laws of descent and distribution.  No transfer of this
Award by will or by the laws of descent and distribution shall be effective to
bind the Corporation unless the Corporation shall have been furnished with
written notice thereof and a copy of the will and/or such other evidence as the
Board or the Plan Administrator may determine necessary to establish the
validity of the transfer.

 

                SECTION
8.  Miscellaneous Provisions. 

 

(a)           This
Award is subject to the terms of the Plan and any regulations approved by the
Plan Administrator from time to time, which are incorporated herein by
reference.

(b)           The laws
of the Commonwealth of Puerto Rico shall be controlling in all matters relating
to this Award.

(c)           The titles
and captions in this Award are used only for convenience and are not to be used
in its interpretation.

 

IN WITNESS WHEREOF, the Corporation
and Grantee have duly executed this Award on the date first above written.

 

 

 

OFG
BANCORP                                                                                GRANTEE

 

By: _____________________________                       By:
_____________________________

Name:    XXXXXXXXXXXXX                                        Name:
XXXXXXXXXXXXXX

Title: Chair
Compensation Committee                           Title: XXXXXXXXXXX

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