Document:

EXHIBIT 10.4

  

  

  

  

  

  
    Restricted Stock Award Agreement

    

    

    Granted by

    

    

    Waterstone Financial, Inc.

    

    

    under the

    

    

    Waterstone Financial, INC.

    2020 Omnibus Incentive Plan

    

    

    This restricted stock award agreement (“Restricted Stock Award” or “Agreement”) is and will be subject
      in every respect to the provisions of the 2020 Omnibus Incentive Plan (the “Plan”) of Waterstone Financial, Inc. (the “Company”) which are incorporated herein by
      reference and made a part hereof, subject to the provisions of this Agreement.  A copy of the Plan has been provided or made available to each person granted a Restricted Stock Award pursuant to the Plan.  The holder of this Restricted Stock Award
      (the “Participant”) hereby accepts this Restricted Stock Award, subject to all the terms and provisions of the Plan and this Agreement, and agrees that all decisions under and interpretations of the Plan and
      this Agreement by the committee responsible for administering the Plan (the “Committee”) will be final, binding and conclusive upon the Participant and the Participant’s heirs, legal representatives, successors
      and permitted assigns.  Except where the context otherwise requires, the term “Company” will include the parent and all present and future subsidiaries of the Company as defined in Section 424(e) and 424(f) of the Internal Revenue Code of 1986, as
      amended from time to time (the “Code”).  Capitalized terms used herein but not defined will have the same meaning as in the Plan.  Any reference to the “Bank” herein shall refer to WaterStone Bank SSB and any
      reference to “Employer” shall mean either or both the Company and the Bank.

     

    

    1.   Name of Participant:________________________

    

    

    2.   Date of Grant:_____________________________

    (subject to adjustment pursuant to Section 9 hereof)

    

    

    
      
        3.   Total number of shares of Company common stock, $0.01 par value per share, covered by the Restricted
          Stock Award:____________

      

    

    

    

    
      
        4.    Vesting Schedule.  Except as otherwise provided in this Agreement, this Restricted Stock Award first becomes earned in accordance with the 

         vesting schedule specified herein.

         

        

      

    

    The Restricted Stock granted under this Agreement shall vest in _______(___) equal annual installments (provided that fractional shares of Restricted Stock will not vest), with
      the first installment vesting on the first anniversary of the date of grant, or , 20, and succeeding installments on each anniversary thereafter, through , 20, subject to accelerated vesting under Section 8 and 10 of this Agreement.  Notwithstanding
      the foregoing, to the extent vesting would vest in a fractional share of Restricted Stock vesting, the number of shares of Restricted Stock vesting should be rounded to the nearest share (with “.5” of a share rounded up).

    
      
        

    

    
    Vesting will automatically accelerate in the event of death, Disability or Involuntary Termination at or following a Change in Control.

    

    

    5.   Grant of Restricted Stock Award.

    

    

    The Restricted Stock Award will be in the form of issued and outstanding shares of Stock that will be either registered in the name of the Participant and held by the Company,
      together with a stock power executed by the Participant in favor of the Company, pending the vesting or forfeiture of the Restricted Stock, or registered in the name of, and delivered to, the Participant.  Notwithstanding the foregoing, the Company
      may, in its sole discretion, issue Restricted Stock in any other format (e.g., electronically) in order to facilitate the paperless transfer of such Awards.

    

    

    If certificated, the certificates evidencing the Restricted Stock Award will bear a legend restricting the transferability of the Restricted Stock.  The Restricted Stock awarded
      to the Participant will not be sold, encumbered hypothecated or otherwise transferred except in accordance with the terms of the Plan and this Agreement.

    

    

    	6.	
            Terms and Conditions.

          

    

    

    	

          	6.1	
            The Participant will have the right to vote the shares of Restricted Stock awarded hereunder on matters which require shareholder vote.

          

    

    

    	

          	6.2	
            Any cash dividends or distributions declared with respect to shares of Stock subject to the Restricted Stock Award will be retained and distributed to the Participant after the Restricted Stock vests.  If the
              Restricted Stock does not vest, the dividends will be forfeited by the Participant.  Any stock dividends declared on shares of Stock subject to a Restricted Stock Award will be subject to the same restrictions and will vest at the same time
              as the shares of Restricted Stock from which said dividends were derived.

          

    

    

    
      	7.	
              Delivery of Shares.

            

    

    
      

      

    

    Delivery of shares of Stock under this Restricted Stock Award will comply with all applicable laws (including, the requirements of the Securities Act), and the applicable
      requirements of any securities exchange or similar entity.

    

      	8.	
              Change in Control

            

    

    

    

    	

          	8.1	
            Upon the occurrence of a Change in Control, any Restricted Stock Award awarded hereunder that is not replaced by a Replacement Award, as defined in Section 9(c) of the Plan, will vest in full, and be deemed earned
              and payable in an amount equal to the full value of such Award, except to the extent that another Award meeting the requirements of Section 9(c) of the Plan is provided to the Participant to replace such Award.  Any Award replaced by a
              Replacement Award shall be referred to herein as a “Replaced Award.”

          

    
      2

      
        

    

    	

          	8.2	
            In the event of a Change in Control, if a Replacement Award is granted, the Replaced Award shall not vest upon the Change in Control.  An Award will be considered a Replacement Award if: (i) it is of the same type
              as the Replaced Award; (ii) it has a value equal to the value of the Replaced Award as of the date of the Change in Control, as determined by the Committee in its sole discretion consistent with Section 3(d); (iii) the underlying Replaced
              Award was an equity-based award and related to publicly traded equity securities of the Company or the entity surviving the Company following the Change in Control; (iv) it contains terms relating to vesting (including with respect to a
              Termination of Service) that are substantially identical to those of the Replaced Award; and (v) its other terms and conditions are not less favorable to the Participant than the terms and conditions of the Replaced Award (including the
              provisions that would apply in the event of a subsequent Change in Control) as of the date of the Change in Control.  Without limiting the generality of the foregoing, a Replacement Award may take the form of a continuation of the applicable
              Replaced Award if the requirements of the preceding sentence are satisfied.  The determination whether the conditions of this Section 9(c) are satisfied shall be made by the Committee, as constituted immediately before the Change in Control,
              in its sole discretion.

          

    

    

    	

          	8.3	
            In the event of a Termination of Service by the Company other than for Cause at or within 24 months following a Change in Control, all Restricted Stock Awards held by the Participant will become fully vested.

          

    

    

    	

          	8.4	
            A “Change in Control” will be deemed to have occurred as provided in Section 9(e) of the Plan.

          

    

    

    9.   Adjustment Provisions.

     

      

    This Restricted Stock Award, including the number of shares subject to the Restricted Stock Award, will be adjusted upon the occurrence of the events
      specified in, and in accordance with the provisions of, Section 3(d) of the Plan.

     

    

    10.   Effect of Termination of Service on Restricted Stock Award.

     

      

      10.1 This
        Restricted Stock Award will vest as follows:

     

      

    
      	
              (i)

            	
              Death.  In the event of the Participant’s Termination of Service by reason of the Participant’s death, all Restricted Stock will vest as to all shares
                subject to an outstanding Award, whether or not then vested, at the date of Termination of Service.

            

    

    

    

    
      	
              (ii)

            	
              Disability.  In the event of the Participant’s Termination of Service by reason
                  of Disability, all Restricted Stock will vest as to all shares subject to an outstanding Award, whether or not then vested, at the date of Termination of Service.

            

    

    

    

    
      	
              (iii)

            	
              Retirement.  In the event of the Participant’s Termination of Service by reason of the Participant’s Retirement, any Restricted Stock that has not
                vested as of the date of Termination of Service will expire and be forfeited.

            

    

    
      3

      
        

    

    The term “Retirement” shall have the meaning set forth in Section 1(dd) of the Plan.

    

    

    
      	
              (iv)

            	
              Termination for Cause.  If the Participant’s Service has been terminated for Cause, all Restricted Stock
                granted to a Participant that has not vested will be forfeited.

            

    

    

    

    
      	
              (v)

            	
              Other Termination.  If a Participant terminates Service for any reason other than due to death, Disability, Termination of Service
                by the Company other than for Cause within 24 months following a Change in Control, Retirement, Retirement or for Cause, all shares of  Restricted Stock awarded to the Participant which have not vested as of the date of Termination of
                Service will be forfeited.

            

    

    

    

    11.   Miscellaneous.

    

    

    	

          	11.1	
            No Restricted Stock Award will confer upon the Participant any rights as a stockholder of the Company prior to the date on which the individual fulfills all conditions for receipt of such rights.

          

    

    

    	

          	11.2	
            This Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Participant.

          

    

    

    	

          	11.3	
            Restricted Stock Awards are not transferable prior to the time such Awards vest in the Participant.

          

    

    

    	

          	11.4	
            This Restricted Stock Award will be governed by and construed in accordance with the laws of the State of Wisconsin.

          

    

    

    	

          	11.5	
            This Restricted Stock Award is subject to all laws, regulations and orders of any governmental authority which may be applicable thereto and, notwithstanding any of the provisions hereof, the Company will not be
              obligated to issue any shares of stock hereunder if the issuance of such shares would constitute a violation of any such law, regulation or order or any provision thereof.

          

    

    

    [Signature page follows]

    

    

    
      4

      
        

    

    IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in its name and on its behalf as of the date of grant of this Restricted Stock Award set forth above.

     

    

    WATERSTONE FINANCIAL, INC.

    

    

    

    

    By:____________________________

    Its:____________________________ 

      

     

      

    

    

    PARTICIPANT’S ACCEPTANCE

     

    

    The undersigned hereby accepts the foregoing Restricted Stock Award and agrees to the terms and conditions hereof, including the terms and provisions of the 2020 Omnibus Incentive
      Plan.  The undersigned hereby acknowledges receipt of a copy of the Company’s 2020 Omnibus Incentive Plan.

    

    

    PARTICIPANT

     

    

     

    

     ______________________________

    

    

    

    

    

     

    

    

    

    

    

  

  5EXHIBIT 10.5

  

  

  

  

  

  
    PERFORMANCE AWARD

    RESTRICTED STOCK UNITS

    

    

    Granted by

    

    

    WATERSTONE FINANCIAL, INC.

    

    

    under the

    

    

    WATERSTONE FINANCIAL, INC.

    2020 OMNIBUS INCENTIVE PLAN

    

    

    This Performance Award Agreement for Restricted Stock Units (“Performance Award” or “Agreement”)

      is and will be subject in every respect to the provisions of the 2020 Omnibus Incentive Plan (the “Plan”) of Waterstone Financial, Inc. (the “Company”) which are
      incorporated herein by reference and made a part hereof, subject to the provisions of this Agreement.  A copy of the Plan has been provided or made available to each person granted a Performance Award pursuant to the Plan.  The holder of this
      Performance Award (the “Participant”) hereby accepts this Performance Award, subject to all the terms and provisions of the Plan and this Agreement, and agrees that all decisions under and interpretations of
      the Plan and this Agreement by the Compensation Committee of the Board of Directors of the Company (“Committee”) will be final, binding and conclusive upon the Participant and the Participant’s heirs, legal
      representatives, successors and permitted assigns.  Capitalized terms used herein but not defined will have the same meaning as in the Plan.

    1.   Name of Participant.______________________

     
    2.   Date of Grant.___________________

    	3.	
            Target number of Restricted Stock Units granted at Target.  [##____##]

          

    The total number of shares to be issued may increase or decrease depending on whether the performance conditions are satisfied at the threshold, target or
      maximum levels, as provided in Exhibit A.  In the aggregate, a Participant can earn between 0% and [###]% of the Award based upon the attainment of the Performance Targets as provided in Exhibit A (the “Performance Targets”).  The Committee shall determine the extent to which the Performance Targets have been achieved, and the level of achievement.  The Committee has the authority to extrapolate between the
      threshold, target and maximum levels achieved.  Notwithstanding anything to the contrary herein, the Committee, in its sole discretion exercised at the time of settlement of the Restricted Stock Unit, may settle the Restricted Stock Unit in cash
      equal to the then fair market value of the Restricted Stock Units earned or may settle the Restricted Stock Unit in a combination of cash and Stock.

    4.   Restricted Stock Unit.

    

    

    A Restricted Stock Unit is an Award denominated in shares of Stock, except that no shares of Stock are actually awarded to the Participant on the date of
      grant. 

    

    
      
        

    

    
    The Restricted Stock Units will be credited to the Participant’s account, subject to the terms of the Plan and this Agreement.  A Restricted Stock Unit will
      be settled in shares of the Company’s Stock.

    	5.	
            Performance Goal(s)/Vesting Schedule.  Except as otherwise provided in this Agreement, this Performance Award is earned at the end of the measurement period (sometimes
              referred to herein as the “performance period”) based on the level of achievement of the Performance Goal(s).  The measurement period for the Award is the three (3) calendar years from [Year 1] through
              [Year 3].  The determination date for purposes of vesting of the Award will be no later than March 15, [Year 4] (or as soon thereafter during [Year 4] as achievement or non-achievement of the performance measure can be determined,  with any earlier or delayed date being deemed the “determination date”).  In order to vest in the Award: (i) the
              Committee must certify in writing, the level at which the performance measure was, in fact, satisfied and (ii) the Participant must be employed on the determination date, unless vesting is accelerated due to the Participant’s death or
              Disability or following a Change in Control.

          

    The actual number of Restricted Stock Units earned will be scaled, based on actual performance over the measurement period versus the
      stated goals. For further information regarding the performance metrics that must be achieved to earn an Award and the percentage of the Award that may be earned at various levels of achievement, please refer to Exhibit A.

    	6.	
            Terms and Conditions.

          

    	

          	6.1	
            
              Voting Rights.  Restricted Stock Units are not shares of Stock.  The Participant will have no voting right with respect to any Restricted Stock Unit granted hereunder.

            

          

    
      	

            	6.2	
              Dividend Equivalent Rights.  If set forth in the Committee’s grant resolutions and noted by checking the box below, cash dividend equivalents

            

    

    ☐ will   ☒ will not

    be paid on Restricted Stock Units.  If cash dividend equivalents are to be paid on the Restricted Stock Units, any such dividend equivalents shall be credited by
      the Company to an account for the Participant and will be distributed, after the Restricted Stock Unit vests and the Participant receives a share of Stock or the cash equivalent.  If the Restricted Stock Unit does not vest, the cash dividend
      equivalent will be forfeited.  If Stock dividends are declared, similar Stock dividend equivalents will be credited to the Restricted Stock Units and will be converted to shares of Stock or forfeited in the same manner and at the same time as the
      cash dividend equivalents would be paid or forfeited.

    	

          	7.	
            Delivery of Shares.

          

    Delivery of shares of Stock under this Performance Award will comply with all applicable laws (including, the requirements of the 1934 Act), and the applicable requirements of any
      securities exchange or similar entity.

    

    

    
      2

      
        

    

    8. Change in Control.

    

    

    	

          	8.1	
            Upon the occurrence of a Change in Control, any Restricted Stock Unit awarded hereunder that is not replaced by a Replacement Award, as defined in Section 9(c) of the Plan, will vest based upon an assumed
              achievement of the performance goals at the greater of the target level or actual achievement level (measured at the date of the Change in Control), taking into account performance through the latest date preceding the Change in Control as to
              which performance can, as a practical matter, be determined (but not later than the end of the applicable performance period.  Any Award replaced by a Replacement Award shall be referred to herein as a “Replaced Award.”

          

    

    

    	

          	8.2	
            In the event of a Change in Control, if a Replacement Award is granted, the Replaced Award shall not vest upon the Change in Control.  An Award will be considered a Replacement Award if: (i) it is of the same type
              as the Replaced Award; (ii) it has a value equal to the value of the Replaced Award as of the date of the Change in Control, as determined by the Committee in its sole discretion consistent with Section 3(d); (iii) the underlying Replaced
              Award was an equity-based award and related to publicly traded equity securities of the Company or the entity surviving the Company following the Change in Control; (iv) it contains terms relating to vesting (including with respect to a
              Termination of Service) that are substantially identical to those of the Replaced Award; and (v) its other terms and conditions are not less favorable to the Participant than the terms and conditions of the Replaced Award (including the
              provisions that would apply in the event of a subsequent Change in Control) as of the date of the Change in Control.  Without limiting the generality of the foregoing, a Replacement Award may take the form of a continuation of the applicable
              Replaced Award if the requirements of the preceding sentence are satisfied.  The determination whether the conditions of this Section 9(c) are satisfied shall be made by the Committee, as constituted immediately before the Change in Control,
              in its sole discretion.

          

    

    

    	

          	8.3	
            In the event of a Termination of Service by the Company other than for Cause at or within 24 months following a Change in Control, all Replacement  Awards held by the Participant will vest in full and be free of
              restrictions, and be deemed to be earned in full, at the greater of (x) the applicable target level and (y) the level of achievement of the Performance Goals as determined by the Committee taking into account performance through the latest
              date preceding the Termination of Service as to which performance can be determined (but not later than the end of the applicable performance period).

          

    

    

    	

          	8.4	
            A “Change in Control” will be deemed to have occurred as provided in Section 9(e) of the Plan.

          

    

    

    9.   Adjustment Provisions.

    

    

    This Performance Award will be adjusted, in accordance with Exhibit A, based on actual achievement at the end of the measurement period.

    
      3

      
        

    

    In addition, this Performance Award, including the number of shares of Stock subject to the Restricted Stock Units, will be adjusted
      upon the occurrence of the events specified in, and in accordance with the provisions of, Section 3(d) of the Plan.

    10.   Effect of Termination of Service on Performance Award.

    10.1 This Performance Award will vest as follows:

     

     

     

     

     

    

      
        	
                (i)

              	
                Death.  In the event of the Participant’s termination of service by reason of the Participant’s death, all Restricted Stock Units will vest at the
                  (i) greater of target or actual achievement (if known) at the Participant’s date of death, multiplied by a fraction, the numerator of which is the full months worked by the Participant during the performance period and the denominator of
                  which is the total months in the performance period.

                 

                

              

      

      
        	
                (ii)

              	
                Disability.  In the event of the Participant’s termination of service by reason of Disability, all Restricted Stock Units will vest at the (i)
                  greater of target or actual achievement (if known) as of the date of the Participant’s termination of service due to Disability, multiplied by a fraction, the numerator of which is the full months worked by the Participant during the
                  performance period and the denominator of which is the total months in the performance period.

                 

                

              

      

      
        	
                (iii)

              	
                Retirement.  In the event of the Participant’s termination of service by reason of Retirement, Restricted Stock Units that are granted as Performance Awards hereunder shall vest as follows: vesting shall not be accelerated to the retirement date, but at the end of the measurement period, the Participant
                    may vest in a portion of the Award on a pro rata basis by multiplying: (i) the number of shares of Stock that would have been earned by the Participant based on achievement of the performance measures over the measurement period (as set
                    forth on Exhibit A) by a fraction, the numerator of which is the full months worked by the Participant during the performance period and the denominator of which is the total months in the
                    performance period (i.e., 18 months out of 36 months equals 50%). For these purposes, a Participant will be deemed to have a termination of service due to
                    “Retirement” if the Participant terminates Service voluntarily with the Company or an Affiliate on or after attainment of either (i) age 65 or
                    (ii) age 60 with ten years of service (measured from a participant’s date of hire).  Notwithstanding anything herein to the contrary, the Participant shall not be eligible for, or shall forfeit the entire Award if the Participant
                    violates the terms of the noncompete requirements set forth in Section 11.6 hereof within the first year after Retirement.

                 

                

              

      

      
        	
                (iv)

              	
                Termination for Cause.  If the Participant’s Service has been terminated for Cause, all Restricted Stock Units granted to a Participant hereunder
                  will expire and be forfeited.

                 

                

              

      

      
        	
                (v)

              	
                Other Termination.  If a Participant terminates Service for any reason other than due to death, Disability, Termination of
                  Service by the Company other than for Cause within 24 months following a Change in Control, Retirement or for Cause, all Restricted Stock Units awarded to the Participant hereunder which have not vested as of the date of termination of
                  service will expire and be forfeited.

              

      

    

    
      4

      
        

    

    11.   Miscellaneous.

    	

          	11.1	
            No Performance Award will confer upon the Participant any rights as a stockholder of the Company prior to the date on which the individual fulfills all conditions for receipt of such rights and shares of Stock are
              transferred to the Participant.

          

    	

          	11.2	
            This Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Participant.

          

    	

          	11.3	
            Restricted Stock Units are not transferable prior to the time such Awards vest in the Participant.

          

    	

          	11.4	
            This Performance Award will be governed by and construed in accordance with the laws of the State of Wisconsin.

          

    	

          	11.5	
            This Performance Award is subject to all laws, regulations and orders of any governmental authority which may be applicable thereto and, notwithstanding any of the provisions hereof, the Company will not be
              obligated to issue any shares of Stock hereunder if the issuance of such shares would constitute a violation of any law, regulation or order or any provision thereof.

          

    	

          	11.6	
            In order to be eligible for any portion of this Performance Award following a termination of service due to retirement, the Participant shall not, for a period of one year after termination of service, Executive agrees not to compete with an Affiliate, the Company or any Affiliate of Company (collectively said entities are referred to as the “Company” for purposes of this Section 11) for a period of twelve
              (12) months following such termination in any county where the Company has one or more branches with aggregate deposits in excess of $100 million.  Executive agrees that during such period and within any county where the Company has one or
              more branches with aggregate deposits in excess of $100 million, Executive shall not work for or advise, consult or otherwise serve with, directly or indirectly, any entity whose business materially competes with the depository, lending or
              other business activities of the Company; provided, however, that this restriction shall not apply if the Participant’s retirement occurs contemporaneously with or following a Change in Control.

          

    	

          	11.7	
            The granting of this Performance Award does not confer upon the Participant any right to be retained in the employ of the Company or any subsidiary.

          

    	

          	11.8	
            Subject to written consent by the Committee, the Participant shall have the right to direct the Company (or an Affiliate) to collect federal, state and local income taxes and the employee portion of FICA taxes
              (Social Security and Medicare) with respect to any Restricted Stock Unit Award in accordance with Section 15.2 of the Plan.  Notwithstanding the foregoing, the Company shall have the right to require the Participant to pay the Company (or
              Affiliate) the amount of any tax that the Company (or Affiliate) is required to withhold with respect to the settlement of the Restricted Stock Unit or sell without notice, a sufficient number of shares of Stock received upon settlement of
              the Restricted Stock Unit to cover the maximum amount required to be withheld under applicable law.

          

    	

          	11.9	
            To the extent any provision of this Agreement conflict with the terms of the Plan, the terms of the Plan shall control.

          

    [Signature Page Follows]

    
      5

      
        

    

    IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in its name and on its behalf as of the date of grant of this Performance Award set forth above.

    WATERSTONE FINANCIAL, INC.

     
    __________________________________ 

       

     
    By:  Douglas S. Gordon

    Its:   President and Chief Executive Officer 

    

    

    PARTICIPANT’S ACCEPTANCE

    The undersigned hereby accepts the foregoing Performance Award and agrees to the terms and conditions hereof, including the terms and provisions of the 2020
      Omnibus Incentive Plan.  The undersigned hereby acknowledges receipt of a copy of the Company’s 2020 Omnibus Incentive Plan.

    PARTICIPANT

     
    

       

     
    __________________________________ 

       

     
    [NAME]

     

    

    
      6

      
        

    

    EXHIBIT A

    

    

    Example of Grant: 1,000 Performance-Based Restricted Stock Units

    

    

    The number of shares that vest will be based on achievement of specified performance measures as compared to  compensation peer group over the three year (3) performance period.*

    

    

    	
            Level

          	
            Achievement

          	
            Payout %

             

          	
            Shares

             

          
	
            Threshold

          	
            Greater than 25% but less than 50% of peers

          	
            50%

          	
            500

          
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
            Target

          	
            50% but less than 75% of peers

          	
            100%

          	
            1,000

          
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
            Maximum

          	
            Equal to 75% or greater than peers

          	
            150%

          	
            1,500

          

    

    

    Performance Measure(s):

    

    

    *This type of schedule might be used for performance measured against the Company’s comparative peer group.  Also, can have scaling of awards in between threshold, target and maximum, i.e., achievement at 60% level would result in an award between
      target and maximum.

    
      7

      
        

    

    

    

    EXHIBIT A

    PERFORMANCE MEASURES AND VESTING SCHEDULE*

    Performance Measures – [TBD] 
    

    

    	
            Performance Goal(s)

              (January 1, 2020–December 31, 2022)

          
	
            Performance Measure/

            Award Percentage

          	
            Threshold (50%)

          	
            Target (100%)

          	
            Maximum (150%)

          	
            Weighting

          
	
            Example - Core Return on Average Assets (ROAA)

          	
            0.XX%

          	
            0.XX%

          	
            0.XX%

          	
            100%**

          
	
            ** If have more than one goal (i.e., two or three, weighting of the total of all goals would equal 100%)

          
	 
	
            Performance Award Payouts

              (January 1, 2020–December 31, 2022)

          
	
            Performance Award (shares of Company common stock)

          	
            Threshold

          	
            Target

          	
            Maximum

          	 
	 	
            500

          	
            1,000

          	
            1,500

          	 

    

    

    Vesting Schedule

    If the Performance Threshold is met or exceeded, the number of shares in the Award shall be determined and settled no later than March 15th of the year immediately following the end of
      the Performance Period, according to the following table:

    	
            Vested Percentage over Performance Period

          	
            Vesting Year

          
	
            0%

          	
            One

          
	
            0%

          	
            Two

          
	
            Up to 100% at applicable Threshold,

            Target or Maximum

          	
            Three

          

    

    

    *  This type of schedule can be used if you are looking at achievement of internal performance goals by the corporation. 

  8

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