Document:

sec10k123114_ex10-9.htm

EXHIBIT 10.9

SUMMARY OF BONUS PROGRAM

OF OHIO VALLEY BANC CORP.

The following is a description of the Bonus Program (the "Bonus Program") of Ohio Valley Banc Corp. ("Ohio Valley") provided pursuant to Item 601(b)(10)(iii) of Regulation S-K promulgated by the Securities and Exchange Commission, which requires a written description of a compensatory plan when no formal document contains the compensation information.

The executive officers of the Company receive no compensation from the Company.  Instead they are paid by subsidiaries for services rendered in their capacities as executive officers of subsidiaries of the Company.

The objectives of the bonus component of the Company's compensation program are to: (a) motivate executive officers and other employees and reward such persons for the accomplishment of both annual and long range goals of the Company and its subsidiaries, (b) reinforce a strong performance orientation with differentiation and variability in individual awards based on contribution to long-range business results and (c) provide a fully competitive compensation package that will attract, reward, and retain individuals of the highest quality.   All employees of the Company's subsidiaries holding positions with a pay grade of 9 or above, as well as some employees who were graded 9 or above before the redesign of the salary structure, are eligible to participate in the bonus program, including all of the named executive officers.

Bonuses payable to participants in the bonus program are based on (a) the performance of the Company and its subsidiaries as measured against specific performance targets; and (b) each employee's individual performance.    At the beginning of each fiscal year, the Compensation Committee sets specific performance targets for the Company and its subsidiaries based on a combination of some or all of a number of performance criteria.  The targets are based on one or more of the following performance criteria: net income, net income per share, return on assets, return on equity, asset quality (as measured by the ratio of adversely classified assets to tier 1 capital plus the ALLL), tier 1 leverage ratio and efficiency ratio.  It is the objective of the Compensation Committee to establish goals that are “reaching” but “reachable.”  The Compensation Committee may not consider the goals to be of equal weight, but, in the aggregate, it considers them to be fundamental metrics which are important to the long-term performance of the Company and which, at the same time, do not expose the Company to, nor incent the employees to undertake, excessive risks which would threaten the Company’s long-term value.  At the end of the fiscal year, the aggregate amount available for the payment of a bonus, if any at all, is determined by the Company’s Board of Directors upon recommendation of its Compensation Committee based on an evaluation of the accomplishment of the performance targets.  A bonus may be paid without targets having been established or achieved.  No officer or employee has any right to the payment of a bonus until the Board of Directors has exercised its discretion to award one and the amount to be paid to each person has been determined and announced.

Once the aggregate amount of the bonus pool is determined, individual bonus awards, for eligible employees in grades 11 and below, are determined through a formula that applies each employee's performance evaluation score to a “bonus grid,” reflecting the individual employee's job grade and individual job performance using the performance criteria referenced above.  For employees in grades 12 and above, individual bonus awards are determined by the level of achievement by the Company and its subsidiaries of some or all of a number of previously mentioned performance metrics. Upon the recommendation of the Compensation Committee and approval by the Board, individual bonus awards for grades 12 and above are typically awarded as a percent of base compensation.  Employees are evaluated by their supervisors, except for Mr. Smith and Mr. Wiseman, who are evaluated by the Compensation Committee.  The Company’s Board of Directors approves the bonuses payable to the executive officers under the Bonus Program based upon the recommendation of the Compensation Committee.

Bonuses are normally paid in February in cash in a single lump sum, subject to payroll taxes and tax withholdings.Exhibit 10.2

 

FIRST AMENDMENT TO THE
 PMC COMMERCIAL TRUST
  2005 EQUITY INCENTIVE PLAN

 

THIS FIRST AMENDMENT (the “Amendment”) to the PMC Commercial Trust 2005 Equity Incentive Plan (the “Plan”) is effective as of the date this Amendment is approved by the shareholders of PMC Commercial Trust (the “Company”).

 

W I T N E S S E T H:

 

WHEREAS, the Plan was originally adopted by the Company’s Board of Trust Managers (the “Board”) on March 5, 2005, and approved by the shareholders of the Company on June 11, 2005 (unless otherwise defined herein, capitalized terms defined in the Plan, when used herein, shall have the respective meanings set forth therein);

 

WHEREAS, the Board now finds it desirable and in the best interest of the Company to amend the Plan, subject to approval by the shareholders of the Company, to (i) increase the number of Shares to be reserved and authorized for issuance under the Plan by 1,000,000 Shares to 1,500,000 Shares; and (ii) increase the limitation on the number of Restricted Shares that may be granted to all Independent Trust Managers in the aggregate during any fiscal year.

 

NOW THEREFORE, the Plan is hereby amended as follows:

 

1.                                      Increase in Shares Issuable.  The first sentence of Section 3(a) of the Plan is amended as follows:

 

“The maximum number of Shares reserved and available for issuance under the Plan shall be 1,500,000 Shares, subject to adjustment as provided in Section 3(b).”

 

2.                                      Increase in Restricted Share Limitation.  The final sentence of Section 6(a) of the Plan is amended as follows:

 

“No more than 20,000 Restricted Shares may be granted to all executive officers in the aggregate and no more than 500,000 Restricted Shares may be granted to all Independent Trust Managers in the aggregate during any fiscal year.”

 

 

IN WITNESS WHEREOF, the Company has caused this Amendment to be executed by its duly authorized officer.

 

	
 
    	
 
    	
PMC   COMMERCIAL TRUST
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/S/   Jan F. Salit
    
	
 
    	
 
    	
 
    	
Name:   Jan. F. Salit
    
	
 
    	
 
    	
 
    	
Title:   President and SecretaryExhibit 10.15

 

STAFFING AND REIMBURSEMENT AGREEMENT

 

This Staffing and Reimbursement Agreement (the “Agreement”), dated as of January 1, 2015, by and among CIM SBA Staffing, LLC, a Delaware limited liability company (“CIM SBA”), PMC Commercial Lending, LLC, a Delaware limited liability company, on behalf of itself and its subsidiaries (collectively, “PMC Commercial Lending”), and CIM Commercial Trust Corporation, a Maryland corporation (“CMCT”).

 

RECITALS

 

WHEREAS, CIM SBA desires to provide CMCT and PMC Commercial Lending with personnel and resources to carry out their activities.

 

NOW THEREFORE, the parties agree as follows:

 

AGREEMENT

 

1.                                      Certain Definitions.  As used in this Agreement, the following terms have the meanings set forth below:

 

“Annual Expense Study” shall mean an annual analysis by a public accounting firm of all expenses incurred by CIM SBA which are attributable to CMCT and PMC Commercial Lending and subject to reimbursement by CMCT and PMC Commercial Lending, as the case may be, under this Agreement.

 

“GAAP” shall mean generally accepted accounting principles.

 

2.                                      Personnel and Resources to be Provided by CIM SBA.  CIM SBA will provide and make available to CMCT and PMC Commercial Lending and their respective affiliates personnel and resources as may be requested by CMCT or PMC Commercial Lending, as the case may be, from time to time and agreed by CIM SBA.  CIM SBA will use commercially reasonable efforts to ensure that CMCT and PMC Commercial Lending will have sufficient personnel and resources to carry out their respective activities as conducted on the date hereof, provided that CIM SBA makes no representation or warranty about the personnel or resources that will be made available to CMCT and PMC Commercial Lending, including, without limitation, the abilities or performance of such personnel or whether the resources are sufficient for their intended purposes.  CMCT and PMC Commercial Lending agree that each will (i) exercise independent judgment in deciding whether to accept resources that will be made available by CIM SBA and (ii) supervise, direct and control the work of CIM SBA’s personnel made available to it.

 

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3.                                      Reimbursement of Expenses; Annual Expense Study.  CIM SBA will allocate to each of CMCT and PMC Commercial Lending in accordance with GAAP the costs and expenses of providing personnel and resources to them, and each of CMCT and PMC Commercial Lending will reimburse CIM SBA for such allocable costs and expenses as provided in this Agreement, provided that, with respect to personnel expenses, the initial compensation level of the employees of CIM SBA shall be consistent with the past employment practices of CMCT and PMC Commercial Lending, as the case may be.  Such costs and expenses will include, without limitation, to the extent applicable and in each to the extent allocable to service performed on behalf of CMCT and/or PMC Commercial Lending:

 

(a)                                 actual employment expenses of CIM SBA’s personnel, including, but not limited to, salaries, wages, payroll taxes, and the cost of employee benefits;

 

(b)                                 rent, telephone equipment, utilities, office furniture and equipment and machinery (including computers, to the extent utilized), other office and administrative expenses and any other overhead expenses of CIM SBA;

 

(c)                                  out-of-pocket fees and expenses incurred by CIM SBA’s personnel in connection with the performance of services on behalf of CMCT and PMC Commercial Lending; and

 

(d)                                 costs, fees and expenses of third parties for services rendered for CMCT and PMC Commercial Lending by providers retained by CIM SBA’s personnel.

 

Each of CMCT and PMC Commercial Lending agrees to reimburse CIM SBA for all costs and expenses pursuant to this Agreement monthly. CIM SBA shall prepare a written statement in reasonable detail documenting the costs and expenses incurred by CIM SBA on behalf of CMMT and PMC Commercial Lending during each month, and shall deliver such written statement to CMMT and PMC Commercial Lending within 45 days after the end of each month. Each of CMMT and PMC Commercial Lending shall pay all amounts payable to CIM SBA in cash within five (5) business days after the receipt of the written statement without demand, deduction offset or delay, The provisions of this Section shall survive the expiration or earlier termination of this Agreement to the extent any expenses have previously been incurred or are incurred in connection with such expiration or termination.

 

On an annual basis, if CIM SBA, CMCT and PMC Commercial Lending agree, or otherwise at the request of CMCT upon a resolution adopted by the independent members of the Board of Directors of CMCT, an Annual Expense Study will be performed to review the annual amount of expenses incurred by CIM SBA to determine the portion thereof that should be allocated to CMCT and PMC Commercial Lending.  In the event that the amounts previously reimbursed to CIM SBA by CMCT or PMC Commercial Lending for any such annual period differ from the annual amount of reimbursable expenses established by the Annual Expense Study, such aggregate amount will be adjusted or “trued up” to cause the amount of expenses actually reimbursed to be equal to the amount determined by the Annual Expense Study.  CMCT and PMC Commercial Lending shall each bear fifty percent (50%) of the fees and expenses of the third party retained to perform such Annual Expense Study.

 

From time to time, CMCT or PMC Commercial Lending, as the case may be, may, in its sole discretion, either advance funds to CIM SBA to allow it to pay for costs and expenses that

 

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are eligible for reimbursement under this Agreement or to, on behalf of CIM SBA, pay costs or expenses of third parties and/or employee salaries or benefits of CIM SBA if such costs, expenses, salaries and benefits are eligible for reimbursement under this Agreement.  CIM SBA agrees that the advancement or payment by CMCT or PMC Commercial Lending, as the case may be, under this Section shall not affect the right of CMCT and PMC Commercial Lending under Section 3 of this Agreement with respect to the amounts so advanced or paid.

 

4.                                      Records.  CIM SBA shall keep proper books of account and records relating to the expenses for which it sought reimbursement under this Agreement, which books and records shall be available (i) to inspection by CMCT, PMC Commercial Lending or any government agency having jurisdiction over CMCT, PMC Commercial Lending or any of their respective subsidiaries, as the case may be and (ii) to be audited by or on behalf of CMCT upon resolution adopted by the independent members of the Board of Directors of CMCT, in each case upon reasonable notice to CIM SBA during normal business hours.  The costs of any inspection or audit and out-of pocket expenses incurred by CIM SBA shall be borne by CMCT or PMC Commercial Lending, as the case may be.

 

5.                                      Term.  The “initial term” of this Agreement shall be for a period from the date hereof through December 31, 2015, unless sooner terminated pursuant to this Section.  After the initial term, this Agreement shall automatically be extended on an annual basis until terminated, which may, during such period, be effected by either party upon ninety (90) days’ prior written notice to the other party.

 

In the event this Agreement is terminated pursuant to this Section, each of CMCT and PMC Commercial Lending shall pay CIM SBA any and all amounts then due and payable to CIM SBA under this Agreement in immediately available funds within thirty (30) days of such termination.

 

In the event this Agreement is terminated by CIM SBA, at CMCT’s or PMC Commercial Lending’s election, CIM SBA agrees that it will use commercially reasonable efforts to help transition its employees who have been providing services to CMCT or PMC Commercial Lending, as the case may be, under this Agreement to become employees of CMCT or PMC Commercial Lending, as the case may be.

 

6.                                      Master Services Agreement.  The parties hereto agree that to the extent there is any inconsistency between the Master Services Agreement, dated as of March 11, 2014 (as amended, modified or supplemented from time to time, the “MSA”), by and among CIM Service Provider, LLC, CMCT and the other parties thereto, the MSA shall be deemed to have been amended by this Agreement.

 

7.                                      Binding Effect; Assignment.  This Agreement shall inure to the benefit of and shall be binding on the parties hereto and their respective successors and assigns.  Other than to a wholly-owned subsidiary, no party may (i) assign its rights hereunder or (ii) delegate its duties under this Agreement, in each case other (y) than to a successor organization that is the surviving entity in a merger or that acquires all or substantially all of the assets of the applicable party or (z) with the prior written consent of the other parties to this Agreement.

 

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8.                                      LIABILITY AND INDEMNITY.

 

(a)                                 CIM SBA assumes no responsibilities under this Agreement other than to provide the personnel and resources that it has agreed hereunder to provide to CMCT and PMC Commercial Lending, as the case may be (in each case at the request of CMCT and PMC Commercial Lending, as the case may be).  CMCT and PMC Commercial Lending agree that CIM SBA and its affiliates and their members, stockholders, directors, officers and employees will have no liability to CMCT or PMC Commercial Lending under this Agreement except by reason of acts or omissions constituting fraud, gross negligence or willful misconduct.

 

(b)                                 Each of CMCT and PMC Commercial Lending shall severally indemnify, reimburse (if necessary) and hold CIM SBA, its affiliates and their members, stockholders, directors, officers, employees and agents harmless from and against any and all claims, losses, damages, penalties, fines, forfeitures, liabilities, demands, charges, legal fees and expenses, judgments and other costs and expenses of any nature whatsoever in respect of or arising from any claim, demand, defense or assertion based on or grounded upon, or resulting from, acts or omissions by CIM SBA pursuant to this Agreement, so long as the conduct against which the claim is made was not the result of fraud, gross negligence or willful misconduct.  Without limitation of the foregoing, it is the express intention of the parties hereto that CIM SBA shall be indemnified hereunder and held harmless from and against all of such claims, losses, damages, penalties, fines, forfeitures, liabilities, demands, charges, legal fees and expenses, judgments and other costs and expenses of any nature whatsoever directly or indirectly arising out of or resulting from the sole or contributory negligence of CIM SBA.

 

(c)                                  CIM SBA shall indemnify, reimburse (if necessary) and hold each of CMCT and PMC Commercial Lending, their respective affiliates and their respective members stockholders, directors, officers, employees and agents harmless from and against any and all claims, losses, damages, penalties, fines, forfeitures, liabilities, demands, charges, legal fees and expenses, judgments and other costs and expenses of any nature whatsoever that each of CMCT and PMC Commercial Lending, their respective affiliates and their respective members stockholders, directors, officers, employees and agents may suffer or incur, or which may be asserted against any of them, in respect of or arising from any claim, demand, defense or assertion based on or grounded upon, or resulting from, any acts or omissions of CIM SBA constituting fraud, gross negligence or willful misconduct under this Agreement.

 

9.                                      No Agency or Partnership.  The parties hereto agree that this Agreement shall not create a partnership or joint venture among any of the parties hereto.

 

10.                               Notices.  No notices or any other communication shall be deemed given unless sent in the manner as specified in this Section.  All notices and other communication hereunder will be in writing and will be deemed given (a) seventy-two (72) hours after dispatch if mailed by registered or certified mail, (b) on dispatch if transmitted by telex, telegraph, telecopy or other means of facsimile, or (c) on receipt if delivered by any other means (including, without limitation, by air courier) in any case to the parties at the following address (or at such other address for a party as will be specified by like notice):

 

	
(i)
    	
If to CIM SBA   Staffing:
    
	
 
    	
 
    
	
 
    	
% The CIM Group
    
	
 
    	
4700 Wilshire   Blvd.,
    

 

4

 

	
 
    	
Los   Angeles, California 90010
    
	
 
    	
Attention: David   Thompson
    
	
 
    	
Fax No.: (323) 446-8711
    
	
 
    	
E-mail: dthompson@cimgroup.com
    
	
 
    	
 
    
	
 
    	
Copy   to:
    
	
 
    	
 
    
	
 
    	
17950 Preston   Road, Suite 600
    
	
 
    	
Dallas, Texas   75252
    
	
 
    	
Attention:        Jan Salit
    
	
 
    	
Fax No.: (972) 349-3265
    
	
 
    	
E-mail:     J.Salit@pmctrust.com
    
	
 
    	
 
    
	
(ii)
    	
If   to CMCT:
    
	
 
    	
 
    
	
 
    	
% The CIM Group
    
	
 
    	
4700 Wilshire   Blvd.,
    
	
 
    	
Los Angeles,   California 90010
    
	
 
    	
Attention: David   Thompson
    
	
 
    	
Fax No.: (323) 446-8711
    
	
 
    	
E-mail: dthompson@cimgroup.com
    
	
 
    	
 
    
	
(iii)
    	
PMC Commercial Lending:
    
	
 
    	
17950 Preston   Road, Suite 600
    
	
 
    	
Dallas, Texas   75252
    
	
 
    	
Attention:        Chief Financial Officer
    
	
 
    	
Fax No.: (972) 349-3265
    
	
 
    	
E-mail:     B.Berlin@pmctrust.com
    

 

Any party may at any time give notice in writing to the other party of the change of its address for purposes of this provision.

 

11.                               Severability.  If any term or provision of this Agreement or the application thereof with respect to any party or circumstance shall, to any extent, be invalid or unenforceable, then the remainder of this Agreement, or the application of that term or provision to parties or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

 

12.                               Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the state of Delaware.

 

13.                               Amendments; Counterparts.  This Agreement shall not be amended, changed, modified, terminated or discharged in whole or in part except by an instrument in writing signed by both parties hereto or their respective successors or assigns, or otherwise as provided herein. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute, collectively, one and the same agreement.  Delivery of

 

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an executed counterpart signature page of this Agreement by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart hereof.

 

14.                               Headings.  The section headings herein have been inserted for convenience of reference only and shall not be construed to affect the meaning, construction or effect of this Agreement.

 

[Remainder of page intentionally left blank.]

 

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IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date first above written.

 

 

	
 
    	
 
    	
CIM   SBA STAFFING, LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Eric Rubenfeld
    
	
 
    	
 
    	
 
    	
Name:   Eric Rubenfeld
    
	
 
    	
 
    	
 
    	
Title:   Vice President & Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
CIM   COMMERCIAL TRUST CORPORATION
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   David Thompson
    
	
 
    	
 
    	
 
    	
Name:   David Thompson
    
	
 
    	
 
    	
 
    	
Title:   Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PMC   COMMERCIAL LENDING, LLC (on behalf of itself and its subsidiaries)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Jan F. Salit
    
	
 
    	
 
    	
 
    	
Name:   Jan F. Salit
    
	
 
    	
 
    	
 
    	
Title:   President, CEO & Secretary
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Solely   with respect to Section 6 of this Agreement:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
CIM   Service Provider, LLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Eric Rubenfeld
    	
 
    	
 
    
	
 
    	
Name:   Eric Rubenfeld
    	
 
    	
 
    
	
 
    	
Title:   Vice President & Secretary
    	
 
    	
 
    

 

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