Document:

Exhibit 10.1

 

HUDSON GLOBAL, INC.

RESTRICTED STOCK AWARD AGREEMENT

 

RESTRICTED STOCK AWARD AGREEMENT (“Agreement”)
made as of the [DAY] day of [MONTH], [YEAR] and effective as of the seventh calendar day following the date of the [QUARTER NUMBER]
quarter [YEAR] earnings release of the Company (the “Grant Date”), by and between HUDSON GLOBAL, INC., a Delaware
corporation (the “Company”) and [FIRST NAME][LAST NAME] (the “Grantee”).

 

WITNESSETH:

 

WHEREAS, pursuant to the Hudson Global,
Inc. 2009 Incentive Stock and Awards Plan (the “Plan”), the Company desires to grant to the Grantee and the Grantee
desires to accept an award of shares of common stock, $.001 par value, of the Company (the “Common Stock”) upon the
terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, the parties hereto agree
as follows:

 

1.                 
Award. Subject to the terms and conditions set forth herein, the Company hereby awards the Grantee on the Grant Date
[NUMBER OF SHARES] shares of Common Stock (the “Restricted Stock”).

 

2.                 
Restrictions; Vesting. Except as otherwise provided herein, the Restricted Stock may not be sold, transferred, pledged,
encumbered, assigned or otherwise alienated or hypothecated, if at all, until such shares of Restricted Stock have vested upon
satisfaction of both the performance vesting conditions and the service vesting conditions set forth below. The performance vesting
conditions with respect to the Restricted Stock shall be satisfied as follows:

 

(a)               
80.0% of the shares of Restricted Stock (the “EBITDA Restricted Stock”) shall vest upon the determination by
the Committee that the Company achieved for the year ending December 31, [____] a “target” Aggregated Regional EBITDA
(as defined below) of $[___] million; provided that 40.0% to 99.9% of the shares of EBITDA Restricted Stock will vest if the Aggregated
Regional EBITDA is between $[____] million and $[____] million (such vesting percentage determined pro rata for Aggregated Regional
EBITDA achievement within such range), and a number of shares equal to 100.1% to 180.0% of the EBITDA Restricted Stock will vest
(in the case of a number of shares up to 100.0% of the EBITDA Restricted Stock) or be granted (in the case of shares in excess
of 100.0% of the EBITDA Restricted Stock) if the Aggregated Regional EBITDA is between $[____] million and $[____] million (such
vesting percentage determined pro rata for Aggregated Regional EBITDA achievement within such range), subject in each case to satisfaction
of the service vesting conditions; and provided further that any such newly granted shares in excess of 100.0% of the EBITDA Restricted
Stock shall be deemed Restricted Stock subject to all of the terms and conditions of this Agreement; and

 

(b)              
20.0% of the shares of Restricted Stock (the “Corporate Costs Restricted Stock”) shall vest upon the determination
by the Committee that the Company achieved for the year ending December 31, [____] a “target” Corporate Costs (as defined
below) of $[____] million; provided that 50% to 99.9% of the shares of Corporate Costs Restricted Stock will vest if the Corporate
Costs is between $[___] million and $[___] million (such vesting percentage determined pro rata for Corporate Costs achievement
within such range), and a number of shares equal to 100.1% to 180.0% of the Corporate Costs Restricted Stock will vest (in the
case of a number of shares up to 100.0% of the Corporate Costs Restricted Stock) or be granted (in the case of shares in excess
of 100.0% of the Corporate Costs Restricted Stock) if the Corporate Costs is between $[____] million and $[____] million (such
vesting percentage determined pro rata for Corporate Costs achievement within such range), subject in each case to satisfaction
of the service vesting conditions; and provided further that any such newly granted shares in excess of 100.0% of the Corporate
Costs Restricted Stock shall be deemed Restricted Stock subject to all of the terms and conditions of this Agreement.

 

    	 

    	 

    

 

The Grantee shall forfeit the number of shares
of EBITDA Restricted Stock and Corporate Costs Restricted Stock that do not vest or are not granted (subject to satisfaction of
the service vesting conditions) pursuant to the preceding provisions. To the extent the performance vesting conditions above have
been satisfied, the service vesting conditions with respect to the Restricted Stock shall be satisfied as follows: (i) 33-1/3%
of the shares of Restricted Stock shall vest on the later of the determination of the satisfaction of the performance vesting conditions
or the first anniversary of the grant date, (ii) 33-1/3% of the shares of Restricted Stock shall vest on the second anniversary
of the grant date, and (iii) 33-1/3% of the shares of Restricted Stock shall vest on the third anniversary of the grant date; provided
that, in each case, the Grantee remains employed by the Company or an affiliate (as defined below) of the Company from the Grant
Date through the applicable service vesting date. As used in this Agreement, the term “affiliate” means an affiliate
of the Company within the meaning of Rule 405 under the Securities Act of 1933, as amended. If any fractional shares would result
from the strict application of the incremental vesting percentages described above, then the actual number of shares of Restricted
Stock that vest on any specific date will cover only the full number of shares determined by rounding the number of shares to be
issued from the strict application of the incremental percentages set forth above to the nearest whole number.

 

For purposes of this Section 2, the following
definitions apply:

 

(1)“Aggregated Regional EBITDA”
means the Company’s aggregated regional earnings before interest, income taxes, depreciation and amortization, non-operating
income or expense, goodwill and other impairment charges, business reorganization expenses and other charges and before corporate
allocations, for the year ending December 31, [YEAR], as determined by the Committee.

 

(2)“Corporate Costs” means the
Company’s total costs for corporate, including corporate costs allocated to the regions, for the year ending December 31,
[YEAR], as determined by the Committee.

 

3.                 
Evidence of Restricted Stock. The shares of Restricted Stock awarded under this Agreement initially will be evidenced
by book entries on the Company’s stock transfer records. If and when the shares of Restricted Stock vest pursuant to Section
2, 5 or 8 and the restrictions imposed by Section 2 terminate, the Company will deliver to the Grantee one or more stock certificates
for the appropriate number of shares, free of any restrictions imposed under this Agreement.

 

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4.                 
Tax Withholding. Notwithstanding anything herein to the contrary, certificates for shares of Restricted Stock that
have vested shall not be delivered to the Grantee unless and until the Grantee has delivered to the Executive Vice President, Human
Resources of the Company (or such other executive officer of the Company performing a similar function), at its corporate headquarters
in New York, New York, cash payment, if any, deemed necessary by the Company to enable it to satisfy any federal, foreign or other
tax withholding obligations with respect to the shares of Restricted Stock that have vested (the “Tax Amount”) (unless
other arrangements acceptable to the Company in its sole discretion have been made). Notwithstanding anything herein to the contrary,
in the event that a Grantee has not satisfied the conditions outlined in the immediately preceding sentence within twenty (20)
days after the shares of Restricted Stock have vested, the Company may (but shall not be required to), in its sole discretion,
at any time by notice to the Grantee, choose to satisfy the conditions outlined in the immediately preceding sentence by unilaterally
revoking the Grantee’s right to receive that number of shares of Restricted Stock that have vested with an aggregate value
equal to 150% of the Tax Amount. For purposes of the preceding sentence, each share of Restricted Stock shall be deemed to have
a value equal to the average closing price of a share of the Common Stock on the Nasdaq Global Market (or such other U.S. exchange
or market on which the Common Stock is then primarily traded) on the five (5) trading days up to and including the date of vesting.
The Company may from time to time change (or provide alternatives to) the method of tax withholding on the Restricted Stock granted
hereunder by notice to the Grantee, it being understood that from and after such notice the Grantee will be bound by the method
(or alternatives) specified in any such notice. The Company (in its sole and absolute discretion) may permit all or part of the
Tax Amount to be paid with shares of Common Stock owned by the Grantee, or in installments (together with interest) evidenced by
the Grantee’s secured promissory note.

 

5.                 
Termination of Employment. If the Grantee’s employment or service with the Company or its Affiliates is terminated
for any reason other than death, including but not limited to by reason of disability, then the shares of Restricted Stock that
have not yet become fully vested in accordance with Section 2 will automatically be forfeited by the Grantee (or the Grantee’s
successors) and any book entry with respect thereto will be canceled. If the Grantee’s employment terminates by reason of
the Grantee’s death, then the shares of Restricted Stock that have not yet become fully vested as a result of a service vesting
condition contained in Section 2 not being satisfied will automatically become fully vested and the restrictions imposed upon the
Restricted Stock by Section 2 will be immediately deemed to have lapsed, but only if and to the extent that the performance vesting
conditions contained in Section 2 shall have been achieved on or prior to the date of such termination of employment.

 

6.                 
Voting Rights; Dividends and Other Distributions.

 

(a)   
While the Restricted Stock is subject to restrictions under Section 2 and prior to any forfeiture thereof, the Grantee may
exercise full voting rights for the Restricted Stock registered in his name.

 

(b)  
While the Restricted Stock is subject to the restrictions under Section 2 and prior to any forfeiture thereof, the Grantee
shall be entitled to receive all dividends and other distributions paid with respect to the Restricted Stock. If any such dividends
or distributions are paid in shares of Common Stock, then such shares shall be subject to the same restrictions as the shares of
Restricted Stock with respect to which they were paid.

 

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(c)   
Subject to the provisions of this Agreement, the Grantee shall have, with respect to the Restricted Stock, all other rights
of holders of Common Stock.

 

7.                 
Securities Law Restrictions. Notwithstanding anything herein to the contrary, shares of Restricted Stock shall not
be issued hereunder if, in the opinion of counsel to the Company, such exercise and/or issuance may result in a violation of federal
or state securities laws or the securities laws of any other relevant jurisdiction.

 

8.                 
Change in Control. Effective upon a Change in Control (as defined in the Plan), if the Grantee is employed by the
Company or an Affiliate immediately prior to the date of such Change in Control, the shares of Restricted Stock will fully vest
and the restrictions imposed upon the Restricted Stock by Section 2 will be immediately deemed to have lapsed.

 

9.                 
No Employment Rights. Nothing in this Agreement shall give the Grantee any right to continue in the employment of
the Company or any Affiliate, or interfere in any way with the right of the Company or any Affiliate to terminate the employment
of the Grantee.

 

10.             
Plan Provisions. The provisions of the Plan shall govern if and to the extent that there are inconsistencies between
those provisions and the provisions hereof. The Grantee acknowledges receipt of a copy of the Plan prior to the execution of this
Agreement. Capitalized terms used in this Agreement but not defined herein shall have the meaning given to them in the Plan.

 

11.             
Administration. The Committee will have full power and authority to interpret and apply the provisions of this Agreement
and act on behalf of the Company and the Board in connection with this Agreement, and the decision of the Committee as to any matter
arising under this Agreement shall be binding and conclusive as to all persons.

 

12.             
Binding Effect; Headings. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto
and their respective successors and permitted assigns. The subject headings of Sections of this Agreement are included for the
purpose of convenience only and shall not affect the construction or interpretation of any of its provisions. All references in
this Agreement to “$” or “dollars” are to United States dollars.

 

13.             
Employee Handbook and Arbitration Agreements. As a material inducement to the Company to grant this award of Restricted
Stock and to enter into this Agreement, the Grantee hereby expressly agrees to (a) comply with and abide by the terms and conditions
of, and rules relating to, such Grantee’s employment with the Company or an Affiliate set forth in the applicable employee
handbook and (b) be bound by the terms and provisions of any arbitration or similar agreement to which the Grantee is or becomes
a party with the Company or an Affiliate.

 

14.             
Confidentiality, Non-Solicitation and Work Product Assignment. As a material inducement to the Company to grant this
award of Restricted Stock and enter into this Agreement, the Grantee hereby expressly agrees to be bound by the following covenants,
terms and conditions:

 

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(a)   
Definition. “Confidential Information” consists of all information or data relating to the business of
the Company, including but not limited to, business and financial information; new product development and technological data;
personnel information and the identities of employees; the identities of clients and suppliers and prospective clients and suppliers;
client lists and potential client lists; development, expansion and business strategies, plans and techniques; computer programs,
devices, methods, techniques, processes and inventions; research and development activities; trade secrets as defined by applicable
law and other materials (whether in written, graphic, audio, visual, electronic or other media, including computer software) developed
by or on behalf of the Company which is not generally known to the public, which the Company has and will take precautions to maintain
as confidential, and which derives at least a portion of its value to the Company from its confidentiality. Additionally, Confidential
Information includes information of any third party doing business with the Company (actively or prospectively) that the Company
or such third party identifies as being confidential. Confidential Information does not include any information that is in the
public domain or otherwise publicly available (other than as a result of a wrongful act by the Grantee or an agent or other employee
of the Company). For purposes of this Section 14, the term “the Company” also refers to each of its officers, directors,
employees and agents, all subsidiary and affiliated entities, all benefit plans and benefit plans’ sponsors and administrators,
fiduciaries, affiliates, and all successors and assigns of any of them.

 

(b)  
Agreement to Maintain the Confidentiality of Confidential Information. The Grantee acknowledges that, as a result
of his/her employment by the Company, he/she will have access to such Confidential Information and to additional Confidential Information
which may be developed in the future. The Grantee acknowledges that all Confidential Information is the exclusive property of the
Company, or in the case of Confidential Information of a third party, of such third party. The Grantee agrees to hold all Confidential
Information in trust for the benefit of the owner of such Confidential Information. The Grantee further agrees that he/she will
use Confidential Information for the sole purpose of performing his/her work for the Company, and that during his/her employment
with the Company, and at all times after the termination of that employment for any reason, the Grantee will not use for his/her
benefit, or the benefit of others, or divulge or convey to any third party any Confidential Information obtained by the Grantee
during his/her employment by the Company, unless it is pursuant to the Company’s prior written permission.

 

(c)   
Return of Property. The Grantee acknowledges that he/she has not acquired and will not acquire any right, title or
interest in any Confidential Information or any portion thereof. The Grantee agrees that upon termination of his/her employment
for any reason, he/she will deliver to the Company immediately, but in no event later that the last day of his/her employment,
all documents, data, computer programs and all other materials, and all copies thereof, that were obtained or made by the Grantee
during his/her employment with the Company, which contain or relate to Confidential Information and will destroy all electronically
stored versions of the foregoing.

 

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(d)  
Disclosure and Assignment of Inventions and Creative Works. The Grantee agrees to promptly disclose in writing to
the Company all inventions, ideas, discoveries, developments, improvements and innovations (collectively “Inventions”),
whether or not patentable and all copyrightable works, including but limited to computer software designs and programs (“Creative
Works”) conceived, made or developed by the Grantee, whether solely or together with others, during the period the Grantee
is employed by the Company. The Grantee agrees that all Inventions and all Creative Works, whether or not conceived or made during
working hours, that: (1) relate directly to the business of the Company or its actual or demonstrably anticipated research or development,
or (2) result from the Grantee’s work for the Company, or (3) involve the use of any equipment, supplies, facilities, Confidential
Information, or time of the Company, are the exclusive property of the Company. The Grantee hereby assigns and agrees to assign
all right, title and interest in and to all such Inventions and Creative Works to the Company. The Grantee understands that he/she
is not required to assign to the Company any Invention or Creative Work for which no equipment, supplies, facilities, Confidential
Information or time of the Company was used, unless such Invention or Creative Work relates directly to the Company’s business
or actual or demonstrably anticipated research and development, or results from any work performed by the Grantee for the Company.

 

(e)   
Non-Solicitation of Clients. During the period of the Grantee’s employment with the Company and for a period
of one year from the date of termination of such employment for any reason, the Grantee agrees that he/she will not, directly or
indirectly, for the Grantee’s benefit or on behalf of any person, corporation, partnership or entity whatsoever, call on,
solicit, perform services for, interfere with or endeavor to entice away from the Company any client to whom the Grantee provides
services at any time during the 12 month period proceeding the date of termination of the Grantee’s employment with the Company,
or any prospective client to whom the Grantee had made a presentation at any time during the 12 month period preceding the date
of termination of the Grantee’s employment with the Company.

 

(f)   
Non-Solicitation of Employees. For a period of one year after the date of termination of the Grantee’s employment
with the Company for any reason, the Grantee agrees that he/she will not, directly or indirectly, hire, attempt to hire, solicit
for employment or encourage the departure of any employee of the Company, to leave employment with the Company, or any individual
who was employed by the Company as of the last day of the Grantee’s employment with the Company.

 

(g)  
Enforcement. If, at the time of enforcement of this Section 14, a court holds that any of the restrictions stated
herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum period, scope or geographical
area deemed reasonable under such circumstances will be substituted for the stated period, scope or area as contained in this Section
14. Because money damages would be an inadequate remedy for any breach of the Grantee’s obligations under this Agreement,
in the event the Grantee breaches or threatens to breach this Section 14, the Company, or any successors or assigns, may, in addition
to other rights and remedies existing in its favor, apply to any court of competent jurisdiction for specific performance, or injunctive
or other equitable relief in order to enforce or prevent any violations of this Section 14.

 

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(h)   Miscellaneous.
The Grantee acknowledges and agrees that the provisions of this Section 14 are in addition to, and not in lieu of, any
confidentiality, non-solicitation, work product assignment and/or similar obligations that the Grantee may have with respect
to the Company and/or its Affiliates, whether by agreement, fiduciary obligation or otherwise and that the grant and
the vesting of the Restricted Stock contemplated by this Agreement are expressly made contingent on the Grantee's compliance
with the provisions of this Section 14. Notwithstanding anything to the contrary in this Agreement, to the extent
there is any conflict between the terms of this Agreement and the terms of any executive employment agreement (the
“Employment Agreement”) between the Grantee and the Company, the terms of the Employment Agreement will control. Without
in any way limiting the provisions of this Section 14, the Grantee further acknowledges and agrees that the provisions of
this Section 14 shall remain applicable in accordance with their terms after the Grantee's termination of employment with the
Company, regardless of whether (1) the Grantee's termination or cessation of employment is voluntary or involuntary or (2)
the Restricted Stock has not or will not vest.

 

15.             
Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware,
without regard to conflict of law principles thereof. This Agreement constitutes the entire agreement between the parties with
respect to the subject matter hereof and controls and supersedes any prior understandings, agreements or representations by or
between the parties, written or oral with respect to its subject matter and may not be modified except by written instrument executed
by the parties. The Grantee has not relied on any representation not set forth in this Agreement.

 

IN WITNESS WHEREOF, this Agreement has been executed as of the date
first above written.

 

	 	HUDSON GLOBAL, INC.
	 	 	 	 
	 	By:  	 
	 	 	Name: 	Tracy Noon
	 	 	Title: 	Chief Corporate Services Officer
	 	 	 	 
	 	 
	 	Grantee – Signature
	 	 	 	 
	 	 
	 	Grantee – Print Name

  

    	7a51024754ex10_2.htm

Exhibit 10.2

 

[Management Team]

 

FOUR OAKS FINCORP, INC.

2015 RESTRICTED STOCK PLAN

AWARD AGREEMENT

(Awarding Restricted Stock)

THIS AWARD AGREEMENT (this “Agreement”) is made by and between Four Oaks Fincorp, Inc., a North Carolina corporation (the “Company”), and «Name» (the “Participant”) pursuant to the provisions of the Four Oaks Fincorp, Inc. 2015 Restricted Stock Plan (the “Plan”), which is incorporated herein by reference.  Capitalized terms not defined in this Agreement shall have the meanings given to them in the Plan.

WITNESSETH:

WHEREAS, the Participant is providing, or has agreed to provide, services to the Company, or Affiliate or a Subsidiary of the Company, as an Employee, Director or Third Party Service Provider; and

WHEREAS, the Company considers it desirable and in its best interests that the Participant be given a personal stake in the Company’s growth, development and financial success through the grant of Shares in the form of Restricted Stock, pursuant to the terms and conditions of the Plan and this Agreement.

NOW, THEREFORE, in consideration of the premises and the mutual agreements set forth herein, the parties agree as follows:

1.           Grant of Restricted Stock.  Effective as of «Grant Date» (the “Grant Date”), the Company hereby awards to the Participant «Number» shares of Restricted Stock, having a Fair Market Value per share of $«FVM»  on the Grant Date.  The Restricted Stock is subject to the terms and conditions of the Plan and this Agreement.

2.           Vesting Schedule.  Provided that the Participant continues to render services to the Company through the applicable vesting date, the Restricted Stock shall vest as follows:

	
(a)  

	
Time-Based Shares.  Fifty percent (50%) of the Restricted Stock will vest in two (2) separate tranches over four (4) years as follows:

	
Vesting Date

	
Number of Shares

	
December 31, 2015

	
7.5% of total Award

	
December 31, 2018

	
42.5% of total Award

	
(b)  

	
Performance-Based Shares.  Fifty percent (50%) of the Restricted Stock will be eligible to vest in two (2) separate tranches, seven and a half percent (7.5%) at the end of the one-year Performance Period ending on December 31, 2015, and forty-two and a half percent (42.5%) at the end of the three-year performance period ending on December 31, 2018, in each case based on the Performance Measures and goals for each such period set forth on Addendum A hereto.  Each tranche will vest on the later of the last day of the Performance Period and the date the Committee determines in its discretion that the performance goals for that particular Performance Period have been met.  If the performance goals for a particular Performance Period are not met, that tranche of Restricted Stock will be forfeited.

 

  

  

  

 

3.           Termination of Service Relationship.  Any Restricted Stock that has not vested at the time of the termination of the Participant’s service relationship will be forfeited, although, consistent with the Plan, the Committee has the power, in its sole and absolute discretion, to accelerate vesting where such termination is as a result of the Participant’s death or Disability or in other termination situations.

 

4.           Book Entry and Delivery of Shares.  The Participant agrees that the Participant’s ownership of the Restricted Stock will be evidenced solely by a computerized or manual entry in the records of the Company or its designated stock transfer agent in the Participant’s name.  Once the Restricted Stock has vested, the Company will deliver (subject to any withholding of Shares as described in Section 5 below) the Shares to the Participant either by (i) delivering one or more stock certificates representing such Shares to the Participant, registered in the name of the Participant, or (ii) electronically depositing such Shares into an online securities account maintained for the Participant with such brokerage firm as may be designated by the Company in connection with any Company plan or arrangement providing for investment in Shares.  All certificates for Shares and all Shares shall be subject to such stop transfer orders and other restrictions as the Company may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange or quotation system upon which the Shares are then listed or quoted, and any applicable federal or state securities law.

5.           Withholding and Taxes.  In connection with the vesting of Restricted Stock, the Company shall have the right to require that the Participant make such provision, or furnish the Company such authorization, as may be necessary or desirable so that the Company may satisfy any obligation it has under applicable income tax laws to withhold for income or other taxes due upon or incident to such vesting.  The Committee may, in its discretion, permit or require such withholding obligation to be satisfied through the withholding of Shares that otherwise would be delivered to the Participant.  In the event the Participant elects immediate Federal income taxation with respect to all or any portion of this Award pursuant to Section 83(b) of the Code, the Participant agrees to deliver a copy of such election to the Company within ten (10) days after filing such election with the Internal Revenue Service.

6.           Non-Transferability of Restricted Stock.  Except as may be otherwise determined by the Committee in its sole discretion, prior to its vesting, the Restricted Stock may not be sold, transferred, pledged, assigned, encumbered, alienated, hypothecated or otherwise disposed of (whether voluntarily or involuntarily or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings, including bankruptcy).

 

  

2

  

 

7.           Restrictions on Shares.  This Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or stock exchange as may be required.  The Participant agrees to take all steps the Committee determines are necessary to comply with all applicable provisions of federal and state securities law in exercising his or her rights under this Agreement.  The Committee may impose such restrictions on any Shares acquired pursuant to this Agreement as it deems advisable, including without limitation, minimum holding period requirements, restrictions under applicable federal securities laws, under the requirements of any stock exchange or market upon which such Shares are then listed or traded, or under any blue sky or state securities laws as may be applicable to such Shares.

8.           Forfeiture.  Where a Participant engages in certain competitive activity or is terminated by the Company for Cause, his or her Restricted Stock and Shares are subject to forfeiture conditions under Section 7.3 of the Plan.  Upon the occurrence of any of the events set forth in Section 7.3 of the Plan, in addition to the remedies provided in Section 7.3, the Company shall be entitled to issue a stop transfer order or other document implementing the forfeiture to its transfer agent, the depository or any of its nominees, and any other person with respect to the Restricted Stock and Shares.

9.           Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth, the terms and conditions of the Plan and this Agreement shall be binding upon the Participant and his or her heirs, executors, administrators, successors and assigns.

10.           Interpretation.  Any dispute regarding the interpretation of this Agreement shall be submitted by the Participant or by the Company forthwith to the Committee, which shall review such dispute at its next regular meeting.  The resolution of such a dispute by the Committee shall be final and binding on all parties.

11.           Acknowledgement.  The Participant acknowledges and agrees:  (i) that the Plan is discretionary in nature and may be suspended or terminated by the Company at any time; (ii) that the award of Restricted Stock does not create any contractual or other right to receive future Awards or any right to continue an employment or other relationship with the Company (for the vesting period or otherwise); (iii) that the Participant remains subject to discharge from such relationship to the same extent as if the Restricted Stock had not been granted; (iv) that all determinations with respect to any such future grants, including, but not limited to, when and on what terms they shall be made, will be at the sole discretion of the Committee; (v) that participation in the Plan is voluntary; (vi) that the value of the Restricted Stock is an extraordinary item of compensation that is outside the scope of the Participant’s employment contract if any; and (vii) that the Restricted Stock is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar benefits.

 

  

3

  

 

12.           Entire Agreement; Governing Law.  The Plan is incorporated herein by reference.  The Plan and this Agreement con­sti­tute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Participant with respect to the subject matter hereof, and may not be modified adversely to the Participant’s interest except by means of a writing signed by the Company and Participant.  This Agreement is governed by the internal substantive laws but not the choice of law rules of North Carolina.

[The remainder of this page left blank intentionally]

 

 

  

4

  

 

[Signature Page to Restricted Stock Agreement]

 

By signing below, you accept the award of this Restricted Stock and agree that this Award is subject in all respects to the terms and conditions of the Plan.  Copies of the Plan and a Prospectus containing information concerning the Plan are available upon request to Wanda Blow at (919) 963-2177.

 

	PARTICIPANT	 	FOUR OAKS FINCORP, INC.	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
 

	 	
By: 

	 	 
	Signature	 	Name:	 	 
	 	 	Title:	 	 
	 	 	 	 	 

 

  

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Addendum A to Restricted Stock Agreement

Performance Measures and Goals

I.             For Performance Period Ending December 31, 2015

The Performance Measures for the one-year period ending December 31, 2015 will be (1) budgeted Net Income as set forth in the Company’s 2015 budget and (2) the Company having Net Income in each quarter of 2015.

Provided that the Company has Net Income in each quarter of 2015, the performance-based Shares will vest as follows:

	
Percentage of Budgeted Net Income Achieved

	
Number of Shares Vested

	
Less than 70%

	
0% of total Award

	
70%

	
5.25% of total Award

	
80%

	
6% of total Award

	
90%

	
6.75% of total Award

	
100%

	
7.5% of total Award

Where achievement against budgeted Net Income falls between the performance levels set out above, the number of Shares vested shall be determined based on straight line interpolation.

Shares will vest on the later of December 31, 2015 and the date the Committee determines in its discretion that the performance goals for the Performance Period have been met.  If the performance goals are not met, 7.5% of the total Award will be forfeited.

II.           For Performance Period Ending December 31, 2018

The Performance Measures and related goals for the three-year period ending December 31, 2018 will be determined by the Committee in its sole discretion in the fourth quarter of 2015.

 

 

6

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