Document:

Exhibit 10.1

 

Eagle Bancorp, Inc.

Senior Executive Annual Incentive Plan

 

Performance Year 2015 REVISED

 

 

Eagle Bancorp, Inc. and EagleBank

Executive Annual Incentive Plan

Plan Document and Administrative Guidelines

 

This Annual Incentive Plan is for the Executive Management Team of Eagle Bancorp, Inc. (“Company”) and EagleBank.  The annual incentive plan is designed to compensate plan participants for the attainment of specified overall bank and individual goals.  The objective is to align the interests of senior executives with the interests of the Bank in obtaining superior financial results.

 

The Plan operates on a calendar year basis (January 1st to December 31st).  This same calendar year is the performance-period for determining the amount of incentive awards to be paid following year end.

 

PERFORMANCE CRITERIA

 

·                                          Bank Performance - For all plan participants, a portion of the annual incentive will be based on overall bank performance.  The Compensation Committee will approve bank wide goals for each senior staff member on an annual basis.  In addition, they will review the Bank’s annual incentive programs to ensure they do not encourage risky behavior.

 

·                                          Individual Performance - For all participants, individual performance in meeting outlined expectations, as determined by annual performance evaluations, will represent at least fifteen percent (15%) of the plan participant’s incentive payout.

 

PERFORMANCE STANDARDS

 

For each performance factor (Overall Bank, Strategic Alignment and Individual), an appropriate standard of performance must be established with three essential performance points:

 

·                                          Target Performance:  The level of performance for each objective at budgeted goals.  The budgeted, or expected, level of performance is based upon historical data, and management’s best judgment as to expected performance during the upcoming performance period.  The Compensation Committee will approve bank wide goals on an annual basis.

 

·                                          Target Plus Performance:  The target plus performance level is capped per the attached chart and will be paid in proportion to the results achieved in excess of 15% above target; however we include it to show potential payouts if we exceed target goals by 15%.

 

PLAN PAYOUTS

 

The Net Operating Income, Threshold level, must be met for there to be any payment made for the Bank Performance and Strategic Alignment categories.  Participants will still be eligible to receive a payout for Individual Performance.

 

After all performance results are available at year-end, the awards will be calculated for each Plan participant and approved by the CEO, and Compensation Committee.  The Compensation Committee has the discretion to pay out annual incentives in cash or awards of restricted stock under the 2006 Stock Plan.

 

 

The actual award payouts will be calculated using a ratable approach, where award payouts are calculated as a proportion of threshold, target and target plus award opportunities.  If actual performance falls between a performance level, the payout will also fall between the pre-defined performance level on a pro-rated basis.  A Plan participant must be an employee at the time of the award payout in order to receive a payout.  The result of the performance criteria is calculated as a percent of base salary for participants during the current Plan year.  Plan payouts will be made no later than 75 days after the year end.

 

The Company has the right to recover any incentive payments that were made based on material misstatements or inaccurate performance metrics.

 

PLAN ADMINISTRATION

 

Responsibilities of the Compensation Committee:  The Compensation Committee has the responsibility to approve, amend, or terminate the Plan as necessary.  The actions of the Compensation Committee shall be final and binding on all parties.  The Compensation Committee shall also review the operating rules of the Plan on an annual basis and revise these rules if necessary.  The Compensation Committee also has the sole ability to decide if an extraordinary event(1) totally outside of management’s influence, be it a windfall or a shortfall, has occurred during the current Plan year, and whether the figures should be adjusted to neutralize the effects of such events.  After approval by the Compensation Committee, management shall, as soon as practical, inform each of the Plan participants under the Plan of their potential award under the operating rules adopted for the Plan year.

 

Nothing herein limits the Compensation Committee from awarding one or more members of the Executive Management Team a bonus in cash and/or Restricted Stock for individual and/or Company performance beyond that reflected as a result of the Plan.

 

Responsibilities of the CEO:  The CEO of the Company administers the program directly and provides liaison to the Compensation Committee, including the following specific responsibilities: recommend the Plan participants to be included in the Plan each year.  This includes determining if additional employees should be added to the Plan and if any Plan participants should be removed from participating in the Plan. Provide recommendations for the award opportunity amounts at threshold, target and target plus for tiers II and below.  The CEO will review the objectives and evaluations, adjust guideline awards for performance and recommend final awards to the Compensation Committee. The CEO may also provide other appropriate recommendations that may become necessary during the life of the plan.  This could include such items as changes to Plan provisions.

 

Amendments and Plan Termination:  The Company has developed the Plan on the basis of existing business, market and economic conditions, current services, and staff assignments.  If substantial changes occur that affect these conditions, services, assignments, or forecasts, the Company may add to, amend, modify or discontinue any of the terms or conditions of the Plan at any time with approval from the Compensation Committee.  The Compensation Committee may, at its sole discretion, terminate, change or amend any of the Plan as it deems appropriate.

 

 

MISCELLANEOUS

 

Reorganization:  If the Company shall merge into or consolidate with another company, or reorganize, or sell substantially all of its assets to another company, firm, or person such succeeding or continuing company, firm, or person shall succeed to, assume and discharge the obligations of the Company under this Plan.  Upon the occurrence of such event, the term “Company” as used in this Plan shall be deemed to refer to the successor or survivor company.

 

Tax Withholding:  The Company shall withhold any taxes that are required to be withheld from the benefits provided under this Plan.

 

Designated Fiduciary:  The Company shall be the named fiduciary and Plan Administrator under the Plan.  The named fiduciary may delegate to others certain aspects of the management and operation responsibilities of the Plan including the employment of advisors and the delegation of ministerial duties to qualified individuals.

 

No Guarantee of Employment:  This Plan is not an employment policy or contract.  It does not give the Plan participant the right to remain an employee of the Company, nor does it interfere with the Company’s right to discharge the Plan participant.

 

(1) An extraordinary event may include a merger, acquisition or divestiture that was not outlined in strategic plan, investment gains or losses, changes in capital cost structure, unplanned branch openings, unexpected and strong sales oriented addition to staff, and increase of 50% or more of collection expenses.

 

 

INCENTIVE RANGES AND AWARD OBJECTIVES

 

Eagle Bancorp, Inc.

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Proposed Incentive Ranges
    	
 
    	
Award Objectives
    	
 
    
	
Tier
    	
 
    	
Name
    	
 
    	
Position
    	
 
    	
Threshold
    	
 
    	
Target
    	
 
    	
Target
   Plus
    	
 
    	
Cap as
    a % of
   Salary
    	
 
    	
Bank
    	
 
    	
Strategic
    	
 
    	
Dept/Ind*
    	
 
    
	
I
    	
 
    	
Ron Paul
    	
 
    	
Chairman and CEO
    	
 
    	
95.0
    	
%
    	
150
    	
%
    	
200
    	
%
    	
250
    	
%
    	
35
    	
%
    	
25
    	
%
    	
40
    	
%
    
	
II
    	
 
    	
Susan Riel
    	
 
    	
Sr. EVP & COO of the Bank
    	
 
    	
60.0
    	
%
    	
85
    	
%
    	
100
    	
%
    	
125
    	
%
    	
50
    	
%
    	
25
    	
%
    	
25
    	
%
    
	
II
    	
 
    	
Antonio Marquez
    	
 
    	
Chief Lending Officer — CRE
    	
 
    	
60.0
    	
%
    	
85
    	
%
    	
100
    	
%
    	
125
    	
%
    	
80
    	
%
    	
0
    	
%
    	
20
    	
%
    
	
II
    	
 
    	
Janice Williams
    	
 
    	
EVP & Chief Credit Officer
    	
 
    	
60.0
    	
%
    	
85
    	
%
    	
100
    	
%
    	
125
    	
%
    	
75
    	
%
    	
0
    	
%
    	
25
    	
%
    
	
II
    	
 
    	
James Langmead
    	
 
    	
EVP & Chief Financial Officer
    	
 
    	
60.0
    	
%
    	
85
    	
%
    	
100
    	
%
    	
125
    	
%
    	
50
    	
%
    	
25
    	
%
    	
25
    	
%
    
	
III
    	
 
    	
Charles C. Brockett
    	
 
    	
Director of Operations
    	
 
    	
50.0
    	
%
    	
75
    	
%
    	
85
    	
%
    	
100
    	
%
    	
85
    	
%
    	
0
    	
%
    	
15
    	
%
    
	
III
    	
 
    	
Larry Bensignor
    	
 
    	
EVP & General Counsel
    	
 
    	
50.0
    	
%
    	
75
    	
%
    	
85
    	
%
    	
100
    	
%
    	
35
    	
%
    	
35
    	
%
    	
30
    	
%
    
	
III
    	
 
    	
Lindsey Rheaume
    	
 
    	
Chief Lending Officer - C&I
    	
 
    	
50.0
    	
%
    	
75
    	
%
    	
85
    	
%
    	
100
    	
%
    	
80
    	
%
    	
0
    	
%
    	
20
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Percent   of Salary
    	
 
    	
 
    	
 
    	
Weighting   of Award
    	
 
    

 

	
NOTE:
    	
 
    	
Threshold, target and target plus payout thresholds   have been established for each tier in order to ensure competitive payouts   and budget costs associated with this program.
    

 

 

2015 Senior Staff Incentive Goals

 

	
 
    	
 
    	
Paul
    	
 
    	
Riel
    	
 
    	
Brockett
    	
 
    	
Marquez
    	
 
    	
Rheaume
    	
 
    	
Langmead
    	
 
    	
Williams
    	
 
    	
Bensignor
    	
 
    	
Target
    	
 
    
	
Net Income   (available to common shareholders)
    	
 
    	
35
    	
 
    	
20
    	
 
    	
20
    	
 
    	
 
    	
 
    	
 
    	
 
    	
15
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
75,686,645
    	
 
    
	
NPAs
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
30
    	
 
    	
 
    	
 
    	
$
    	
37,497,398
    	
 
    
	
Strategic   Alignment
    	
 
    	
25
    	
 
    	
20
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
25
    	
 
    	
 
    	
 
    	
25
    	
 
    	
 
    	
 
    
	
Annual Average   Loan Growth for Division CRE
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
30
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
705,136,168
    	
 
    
	
Annual Average   Loan Growth for Division C&I
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
30
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
403,368,612
    	
 
    
	
Annual   Average/Portfolio per Deposit Penetration (Lending) Reports
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
CLO CRE
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 20
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
32,000,000
    	
 
    
	
CLO C&I
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
20
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
123,000,000
    	
 
    
	
Non Interest   Income
    	
 
    	
 
    	
 
    	
 
    	
 
    	
25
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
24,123,817
    	
 
    
	
Efficiency Ratio
    	
 
    	
 
    	
 
    	
20
    	
 
    	
20
    	
 
    	
 
    	
 
    	
 
    	
 
    	
20
    	
 
    	
 
    	
 
    	
 
    	
 
    	
42.76
    	
%
    
	
Non Credit Legal   Fees
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
30
    	
 
    	
$
    	
497,096
    	
 
    
	
Expenses   (Non-Interest Expenses)
    	
 
    	
 
    	
 
    	
20
    	
 
    	
20
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
20
    	
 
    	
 
    	
 
    	
$
    	
108,270,110
    	
 
    
	
Net Interest   Margin
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
25
    	
 
    	
25
    	
 
    	
15
    	
 
    	
 
    	
 
    	
 
    	
 
    	
4.22
    	
%
    
	
Annual Average   Individual Deposits
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
20
    	
 
    	
 
    	
 
    
	
Charge Offs
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
30
    	
 
    	
 
    	
 
    	
$
    	
12,730,010
    	
 
    
	
Dept/Individual   Performance
    	
 
    	
40
    	
 
    	
20
    	
 
    	
15
    	
 
    	
25
    	
 
    	
25
    	
 
    	
25
    	
 
    	
20
    	
 
    	
25
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
100
    	
%
    	
100
    	
%
    	
100
    	
%
    	
100
    	
%
    	
100
    	
%
    	
100
    	
%
    	
100
    	
%
    	
100
    	
%Exhibit 4.4

 

FORM OF

STOCK OPTION AWARD AGREEMENT

FOR BENEFICIAL BANCORP, INC.

2016 OMNIBUS INCENTIVE PLAN

 

This Stock Option Grant is awarded to                                (the “Participant”) by Beneficial Bancorp, Inc. (the “Company”) as of                                (the “Grant Date”), the date the Compensation Committee of the Board of Directors of the Company (the “Committee”) granted the Participant the right and option to purchase                                    Shares pursuant to Beneficial Bancorp, Inc. 2016 Omnibus Incentive Plan (the “2016 Plan”), subject to the terms and conditions of the 2016 Plan and this Award Agreement:

 

	
Type of Option(s):
    	
 
    	
                    Incentive Stock Option (ISO)
    
	
 
    	
 
    	
                    Non-Statutory Stock Option (NSO)
    
	
 
    	
 
    	
 
    
	
Shares Subject to the ISO Portion of this Stock   Option Award:
    	
 
    	
                                      shares of Common Stock.
    
	
 
    	
 
    	
 
    
	
Shares Subject to the NSO Portion of this Stock   Option Award:
    	
 
    	
                         shares of Common Stock.
    
	
 
    	
 
    	
 
    
	
Date of Grant:
    	
 
    	
                               ,   20          
    
	
 
    	
 
    	
 
    
	
Exercise Price:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    
	
Expiration Date:
    	
 
    	
                                      ,   unless sooner as set forth in this Award Agreement
    
	
 
    	
 
    	
 
    
	
Vesting Schedule:
    	
 
    	
Unless sooner vested in accordance with Section 2 of   the Terms and Conditions (attached hereto)   the Options shall vest (become exercisable) in accordance with the following   schedule:
    

 

	
 
    	
 
    	
ISO Schedule
    	
 
    	
NSO Schedule
    	
 
    
	
 
    	
 
    	
Installment
    	
 
    	
Vesting Date
    	
 
    	
Installment
    	
 
    	
Vesting Date
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

IN WITNESS WHEREOF, Beneficial Bancorp, Inc., acting by and through the Committee, has caused this Award Agreement to be executed as of the Grant Date set forth above.

 

	
 
    	
BENEFICIAL BANCORP, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
On behalf of the   Committee
    

 

	
Accepted by Participant:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    	
 
    
			

 

 

TERMS AND CONDITIONS

 

1.                                      Grant of Option.  The Grant Date, Exercise Price and number of Shares subject to your Option are stated on page 1 of this Award Agreement.  Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the 2016 Plan.

 

2.                                      Vesting of Options.  The Option shall vest (become exercisable) in accordance with the vesting schedule shown on page 1 of this Award Agreement.  Notwithstanding the vesting schedule on page 1, the Option will also vest and become exercisable upon your death or Disability during your Continuous Status as a Participant and upon a Change in Control.

 

3.                                      Term of Options and Limitations on Right to Exercise.  The term of the Option will be for a period of ten (10) years, expiring at 5:00 p.m., Eastern Time, on the tenth anniversary of the Grant Date (the “Expiration Date”).  To the extent not previously exercised, the vested portion of your Option will lapse prior to the Expiration Date upon the earliest to occur of the following circumstances:

 

(a)                                 Three (3) months after the termination of your Continuous Status as a Participant for any reason other than your death or Disability.

(b)                                 Twelve (12) months after termination of your Continuous Status as a Participant by reason of Disability.

(c)                                  Twelve (12) months after the date of your death, if you die while employed, or during the three-month period described in subsection (a) above or during the twelve-month period described in subsection (b) above and before the Option would otherwise lapse.  Upon your death, your beneficiary (designated pursuant to the terms of the 2016 Plan) may exercise your Option.

(d)                                 At the end of the remaining original term of the Option if your employment is involuntarily or constructively terminated within twelve (12) months of a Change in Control.

 

If you or your beneficiary exercises an Option after your termination of service, the Option may be exercised only with respect to the Shares that were otherwise vested on the date of your termination of service.

 

4.                                      Exercise of Option.  You may exercise your Option by providing:

 

(a)                                 a written notice of intent to exercise to the address and in the form specified by the Committee from time to time; and

(b)                                 payment to the Company in full for the Shares subject to the exercise (unless the exercise is a cashless exercise).  Payment for the Shares can be made in cash, shares, net settlement, broker assisted cashless exercise or a combination thereof.

 

5.                                      Beneficiary Designation.  You may, in a manner determined by the Committee, designate a beneficiary to exercise your rights under the 2016 Plan and to receive any distribution with respect to this Option upon your death.  A beneficiary, legal guardian, legal representative, or other person claiming any rights under the 2016 Plan is subject to all terms and conditions of this Award Agreement and the 2016 Plan, and to any additional restrictions deemed necessary or appropriate by the Committee.  If you have not designated a beneficiary or none survives you, the Option may be exercised by the legal representative of your estate, and payment shall be made to your estate.  You may change or revoke a beneficiary designation at any time provided the change or revocation is filed with the Company.

 

6.                                      Withholding.  The Company or any affiliate has the authority and the right to deduct or withhold, or require you to remit to the Company, an amount sufficient to satisfy federal, state, and local (if any) withholding taxes and employment taxes (i.e., FICA and FUTA).

 

 

7.                                      Limitation of Rights.  This Option does not confer on you or your beneficiary designated pursuant to Paragraph 5 any rights as a shareholder of the Company unless and until the Shares are in fact issued in connection with the exercise of the Option.  Nothing in this Award Agreement shall interfere with or limit in any way the right of the Company or any affiliate to terminate your employment at any time, nor confer upon you any right to continue in the service of the Company or any affiliate.

 

8.                                      Restrictions on Transfer and Pledge.  You may not pledge, encumber, or hypothecate your right or interest in this Option to or in favor of any party other than the Company or an affiliate, and this Option shall not be subject to any lien, obligation, or liability of the Participant to any other party other than the Company or an affiliate.  You may not assign or transfer this Option other than by will or the laws of descent and distribution or pursuant to a domestic relations order that would satisfy Section 414(p)(1)(A) of the Code if such Section applied to an Option under the 2016 Plan; provided, however, that the Committee may (but need not) permit other requested transfers.  Only you or any permitted transferee may exercise this Option during your lifetime.

 

9.                                      Plan Controls.  The terms contained in the 2016 Plan are incorporated into and made a part of this Award Agreement and this Award Agreement shall be governed by and construed in accordance with the 2016 Plan.  In the event of any actual or alleged conflict between the provisions of the 2016 Plan and the provisions of this Award Agreement, the provisions of the 2016 Plan will control.

 

10.                               Successors.  This Award Agreement shall be binding upon any successor of the Company, in accordance with the terms of this Award Agreement and the 2016 Plan.

 

11.                               Severability.  If any one or more of the provisions contained in this Award Agreement is invalid, illegal or unenforceable, the other provisions of this Award Agreement will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included in this Award Agreement.

 

12.                               Notice.  Notices and communications under this Award Agreement must be in writing and either personally delivered or sent by registered or certified United States mail, return receipt requested, postage prepaid.  Notices to the Company must be addressed to:

 

[INSERT CONTACT]

 

or any other address designated by the Company in a written notice to the Participant. Notices to you will be directed to your address, as then currently on file with the Company, or to any other address that you provide in a written notice to the Company.

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