Document:

exv10w10

 

Exhibit 10.10

ESB FINANCIAL CORPORATION

AMENDED AND RESTATED 2005 STOCK INCENTIVE PLAN

ARTICLE I

ESTABLISHMENT OF THE PLAN

     ESB Financial Corporation (the “Corporation”) hereby amends and restates its 2005 Stock
Incentive Plan (as amended and restated, the “Plan”) upon the terms and conditions hereinafter
stated, with the amendment and restatement effective as of November 21, 2006.

ARTICLE II

PURPOSE OF THE PLAN

     The purpose of this Plan is to improve the growth and profitability of the Corporation and its
Subsidiary Companies by providing Employees and Non-Employee Directors with a proprietary interest
in the Corporation as an incentive to contribute to the success of the Corporation and its
Subsidiary Companies, and rewarding Employees for outstanding performance and the attainment of
targeted goals. All Incentive Stock Options issued under this Plan are intended to comply with the
requirements of Section 422 of the Code, and the regulations thereunder, and all provisions
hereunder shall be read, interpreted and applied with that purpose in mind.

ARTICLE III

DEFINITIONS

     3.01 “Award” means an Option, Stock Appreciation Right or Share Award granted pursuant to the
terms of this Plan.

     3.02 “Bank” means ESB Bank, the wholly owned subsidiary of the Corporation.

     3.03 “Beneficiary” means the person or persons designated by a Recipient or Optionee to
receive any benefits payable under the Plan in the event of such Recipient’s death. Such person or
persons shall be designated in writing on forms provided for this purpose by the Committee and may
be changed from time to time by similar written notice to the Committee. In the absence of a
written designation, the Beneficiary shall be the Recipient’s surviving spouse, if any, or if none,
his estate.

     3.04 “Board” means the Board of Directors of the Corporation.

     3.05 “Change in Control” shall mean a change in the ownership of the Corporation or the Bank,
a change in the effective control of the Corporation or the Bank or a change in the

 

 

ownership of a substantial portion of the assets of the Corporation or the Bank, in each case
as provided under Section 409A of the Code and the regulations thereunder.

     3.06 “Code” means the Internal Revenue Code of 1986, as amended.

     3.07 “Committee” means a committee of two or more directors appointed by the Board pursuant to
Article IV hereof, each of whom shall be a non-employee director (i) as defined in Rule
16b-3(b)(3)(i) of the Exchange Act or any successor thereto and (ii) within the meaning of Section
162(m) of the Code and the regulations promulgated thereunder.

     3.08 “Common Stock” means shares of the common stock, $.01 par value per share, of the
Corporation.

     3.09 “Disability” means in the case of any Optionee or Recipient that the Optionee or
Recipient: (i) is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any
medically determinable physical or mental impairment which can be expected to result in death or
can be expected to last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than three months under an accident and health plan
covering employees of the Corporation or the Bank (or would have received such benefits for at
least three months if he had been eligible to participate in such plan).

     3.10 “Effective Date” means the day upon which the Board originally adopted this Plan.

     3.11 “Employee” means any person who is employed by the Corporation or a Subsidiary Company,
or is an Officer of the Corporation or a Subsidiary Company, but not including directors who are
not also Officers of or otherwise employed by the Corporation or a Subsidiary Company.

     3.12 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     3.13 “Exercise Price” means the price at which a share of Common Stock may be purchased by an
Optionee pursuant to an Option.

     3.14 “Fair Market Value” shall be equal to the fair market value per share of the
Corporation’s Common Stock on the date an Award is granted. For purposes hereof, the Fair Market
Value of a share of Common Stock shall be the closing sale price of a share of Common Stock on the
date in question (or, if such day is not a trading day in the U.S. markets, on the nearest
preceding trading day), as reported with respect to the principal market (or the composite of the
markets, if more than one) or national quotation system in which such shares are then traded, or if
no such closing prices are reported, the mean between the high bid and low asked prices that day on
the principal market or national quotation system then in use, or if no such quotations are
available, the price furnished by a professional securities dealer making a market in such shares
selected by the Committee.

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     3.15 “Incentive Stock Option” means any Option granted under this Plan which the Board intends
(at the time it is granted) to be an incentive stock option within the meaning of Section 422 of
the Code or any successor thereto.

     3.16 “Non-Employee Director” means a member of the Board of the Corporation or Board of
Directors of the Bank, including an advisory director or a director emeritus of the Board of the
Corporation and/or the Bank, who is not an Officer or Employee of the Corporation or any
Subsidiary Company.

     3.17 “Non-Qualified Option” means any Option granted under this Plan which is not an Incentive
Stock Option.

     3.18 “Officer” means an Employee whose position in the Corporation or Subsidiary Company is
that of a corporate officer, as determined by the Board.

     3.19 “Option” means a right granted under this Plan to purchase Common Stock.

     3.20 “Optionee” means an Employee or Non-Employee Director or former Employee or Non-Employee
Director to whom an Option is granted under the Plan.

     3.21 “Performance Share Award” means a Share Award granted to a Recipient pursuant to Section
9.06 of the Plan.

     3.22 “Performance Goal” means an objective for the Corporation or any Subsidiary Company or
any unit thereof or any Employee of the foregoing that may be established by the Committee for a
Performance Share Award to become vested, earned or exercisable. The establishment of Performance
Goals are intended to make the applicable Performance Share Awards “performance based” compensation
within the meaning of Section 162(m) of the Code, and the Performance Goals shall be based on one
or more of the following criteria:

	 	(i)	 	net income, as adjusted for non-recurring items;
	 
	 	(ii)	 	cash earnings;
	 
	 	(iii)	 	earning per share;
	 
	 	(iv)	 	cash earnings per share;
	 
	 	(v)	 	return on average equity;
	 
	 	(vi)	 	return on average assets;
	 
	 	(vii)	 	assets;
	 
	 	(viii)	 	stock price;
	 
	 	(ix)	 	total stockholder return;
	 
	 	(x)	 	capital;
	 
	 	(xi)	 	net interest income;
	 
	 	(xii)	 	market share;
	 
	 	(xiii)	 	cost control or efficiency ratio; and
	 
	 	(xiv)	 	asset growth.

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     3.23 “Recipient” means an Employee who receives a Share Award or Performance Share Award under
the Plan.

     3.24 “Retirement” means a termination of employment which constitutes a retirement under the
Corporation’s qualified retirement plan maintained by the Corporation or a Subsidiary Corporation,
or, if no such plan is applicable, which would constitute retirement under the Corporation’s
qualified retirement plan, if such individual were a participant in that plan.

     3.25 “Share Award” means a right granted under this Plan to receive a distribution of shares
of Common Stock upon completion of the service and other requirements described in Article IX and
includes Performance Share Awards.

     3.26 “Stock Appreciation Right” means a right to surrender an Option in consideration for a
payment by the Corporation in cash and/or Common Stock, as provided in the discretion of the
Committee in accordance with Section 8.10.

     3.27 “Subsidiary Companies” means those subsidiaries of the Corporation, including the Bank,
which meet the definition of “subsidiary corporations” set forth in Section 425(f) of the Code, at
the time of granting of the Award in question.

ARTICLE IV

ADMINISTRATION OF THE PLAN

     4.01 Duties of the Committee. The Plan shall be administered and interpreted by the
Committee, as appointed from time to time by the Board pursuant to Section 4.02. The Committee
shall have the authority to adopt, amend and rescind such rules, regulations and procedures as, in
its opinion, may be advisable in the administration of the Plan, including, without limitation,
rules, regulations and procedures which (i) deal with satisfaction of an Optionee’s tax withholding
obligation pursuant to Section 13.02 hereof, (ii) include arrangements to facilitate the Optionee’s
ability to borrow funds for payment of the exercise or purchase price of an Award, if applicable,
from securities brokers and dealers, and (iii) include arrangements which provide for the payment
of some or all of such exercise or purchase price by delivery of previously-owned shares of Common
Stock or other property and/or by withholding some of the shares of Common Stock which are being
acquired. The interpretation and construction by the Committee of any provisions of the Plan, any
rule, regulation or procedure adopted by it pursuant thereto or of any Award shall be final and
binding in the absence of action by the Board.

     4.02 Appointment and Operation of the Committee. The members of the Committee shall be
appointed by, and will serve at the pleasure of, the Board. The Board from time to time may remove
members from, or add members to, the Committee, provided the Committee shall continue to consist of
two or more members of the Board, each of whom shall be a non-employee director, as defined in Rule
16b-3(b)(3)(i) of the Exchange Act or any successor thereto. In addition, each member of the
Committee shall be an “outside director” within the meaning of Section 162(m) of the Code and
regulations thereunder at such times as is

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required under such regulations. The Committee shall act by vote or written consent of a
majority of its members. Subject to the express provisions and limitations of the Plan, the
Committee may adopt such rules, regulations and procedures as it deems appropriate for the conduct
of its affairs. It may appoint one of its members to be chairman and any person, whether or not a
member, to be its secretary or agent. The Committee shall report its actions and decisions to the
Board at appropriate times but in no event less than one time per calendar year.

     4.03 Revocation for Misconduct. The Board or the Committee may by resolution immediately
revoke, rescind and terminate any Award, or portion thereof, to the extent not yet vested or
exercised, previously granted or awarded under this Plan to an Employee who is discharged from the
employ of the Corporation or a Subsidiary Company for cause, which, for purposes hereof, shall mean
termination because of the Employee’s personal dishonesty, incompetence, willful misconduct, breach
of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful
violation of any law, rule, or regulation (other than traffic violations or similar offenses) or
final cease-and-desist order. Awards granted to a Non-Employee Director who is removed for cause
pursuant to the Corporation’s Articles of Incorporation and Bylaws or the Bank’s Charter and Bylaws
shall terminate as of the effective date of such removal.

     4.04 Limitation on Liability. Neither the members of the Board nor any member of the
Committee shall be liable for any action or determination made in good faith with respect to the
Plan, any rule, regulation or procedure adopted by it pursuant thereto or any Awards granted under
it. If a member of the Board or the Committee is a party or is threatened to be made a party to
any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative, by reason of anything done or not done by him in such capacity
under or with respect to the Plan, the Corporation shall, subject to the requirements of applicable
laws and regulations, indemnify such member against all liabilities and expenses (including
attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred
by him in connection with such action, suit or proceeding if he acted in good faith and in a manner
he reasonably believed to be in the best interests of the Corporation and its Subsidiary Companies
and, with respect to any criminal action or proceeding, had no reasonable cause to believe his
conduct was unlawful.

     4.05 Compliance with Law and Regulations. All Awards granted hereunder shall be subject to
all applicable federal and state laws, rules and regulations and to such approvals by any
government or regulatory agency as may be required. The Corporation shall not be required to issue
or deliver any certificates for shares of Common Stock prior to the completion of any registration
or qualification of or obtaining of consents or approvals with respect to such shares under any
federal or state law or any rule or regulation of any government body, which the Corporation shall,
in its sole discretion, determine to be necessary or advisable. Moreover, no Option may be
exercised if such exercise would be contrary to applicable laws and regulations.

     4.06 Restrictions on Transfer. The Corporation may place a legend upon any certificate
representing shares acquired pursuant to an Award granted hereunder noting that the transfer of
such shares may be restricted by applicable laws and regulations.

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     4.07 No Deferral of Compensation Under Section 409A of the Code. All Awards granted under the
Plan are designed to not constitute a deferral of compensation for purposes of Section 409A of the
Code. Notwithstanding any other provision in this Plan to the contrary, all of the terms and
conditions of any Options granted under this Plan shall be designed to satisfy the exemption for
stock options set forth in the regulations issued under Section 409A of the Code. Both this Plan
and the terms of all Options granted hereunder shall be interpreted in a manner that requires
compliance with all of the requirements of the exemption for stock options set forth in the
regulations issued under Section 409A of the Code. No Optionee shall be permitted to defer the
recognition of income beyond the exercise date of a Non-Qualified Option or beyond the date that
the Common Stock received upon the exercise of an Incentive Stock Option is sold. No Recipient
shall be permitted to defer the recognition of income beyond the date a Share Award shall be deemed
earned pursuant to Section 9.02 of this Plan.

ARTICLE V

ELIGIBILITY

     Awards may be granted to such Employees and Non-Employee Directors of the Corporation and its
Subsidiary Companies as may be designated from time to time by the Board or the Committee. Awards
may not be granted to individuals who are not Employees or Non-Employee Directors of either the
Corporation or its Subsidiary Companies. Non-Employee Directors shall be eligible to receive only
Non-Qualified Options under the Plan.

ARTICLE VI

COMMON STOCK COVERED BY THE PLAN

     6.01 Number of Shares. The aggregate number of shares of Common Stock which may be issued
pursuant to this Plan, subject to adjustment as provided in Article X, shall be 650,000. None of
such shares shall be the subject of more than one Award at any time, but if an Option as to any
shares is surrendered before exercise, or expires or terminates for any reason without having been
exercised in full, or for any reason ceases to be exercisable, the number of shares covered thereby
shall again become available for grant under the Plan as if no Awards had been previously granted
with respect to such shares.

     6.02 Source of Shares. The shares of Common Stock issued under the Plan may be authorized but
unissued shares, treasury shares or shares purchased by the Corporation on the open market or from
private sources for use under the Plan.

ARTICLE VII

DETERMINATION OF

AWARDS, NUMBER OF SHARES, ETC.

     7.01 Determination of Awards. The Board or the Committee shall, in its discretion, determine
from time to time which Employees and Non-Employee Directors will be granted

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Awards under the Plan, the number of shares of Common Stock subject to each Award, whether
each Option will be an Incentive Stock Option or a Non-Qualified Stock Option and the Exercise
Price of an Option and whether a Share Award will be a Performance Share Award. In making all such
determinations there shall be taken into account the duties, responsibilities and performance of
each Optionee, his present and potential contributions to the growth and success of the
Corporation, his salary and such other factors deemed relevant to accomplishing the purposes of the
Plan.

     7.02 Limitation on Share Awards. Notwithstanding anything contained in this Plan to the
contrary, the maximum number of shares of Common Stock to which Share Awards may be issued under
this Plan shall be 130,000 shares, or 20% of the total shares available for issuance under this
Plan. None of such shares shall be the subject of more than one Award at any time, but if a Share
Award as to any shares is surrendered before vested, or expires or terminates for any reason
without vesting in full, the number of shares covered thereby shall again become available for
grant under the Plan as if no Awards had been previously granted with respect to such shares.

     7.03 Maximum Awards to any Person. Notwithstanding anything contained in this Plan to the
contrary, the maximum number of shares of Common Stock to which Awards may be granted to any
individual in any calendar year shall be 50,000 shares.

ARTICLE VIII

OPTIONS AND STOCK APPRECIATION RIGHTS

     Each Option granted hereunder shall be on the following terms and conditions:

     8.01 Stock Option Agreement. The proper Officers on behalf of the Corporation and each
Optionee shall execute a Stock Option Agreement which shall set forth the total number of shares of
Common Stock to which it pertains, the exercise price, whether it is a Non-Qualified Option or an
Incentive Stock Option, and such other terms, conditions, restrictions and privileges as the Board
or the Committee in each instance shall deem appropriate, provided they are not inconsistent with
the terms, conditions and provisions of this Plan. Each Optionee shall receive a copy of his
executed Stock Option Agreement.

     8.02 Option Exercise Price.

          (a) Incentive Stock Options. The per share price at which the subject Common Stock may be
purchased upon exercise of an Incentive Stock Option shall be no less than one hundred percent
(100%) of the Fair Market Value of a share of Common Stock at the time such Incentive Stock Option
is granted, except as provided in Section 8.09(b).

          (b) Non-Qualified Options. The per share price at which the subject Common Stock may be
purchased upon exercise of a Non-Qualified Option shall be established by the Committee at the time
of grant, but in no event shall be less than the greater of (i) the par

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value or (ii) one hundred percent (100%) of the Fair Market Value of a share of Common Stock
at the time such Non-Qualified Option is granted.

     8.03 Vesting and Exercise of Options.

          (a) General Rules. Incentive Stock Options and Non-Qualified Options shall become vested and
exercisable at the rate, to the extent and subject to such limitations as may be specified by the
Board or the Committee. Notwithstanding the foregoing, no vesting shall occur on or after an
Optionee’s employment or service as a Non-Employee Director with the Corporation and all Subsidiary
Companies is terminated for any reason other than his death, Disability, Retirement or a Change in
Control. In determining the number of shares of Common Stock with respect to which Options are
vested and/or exercisable, fractional shares will be rounded up to the nearest whole number if the
fraction is 0.5 or higher, and down if it is less.

          (b) Accelerated Vesting. Unless the Committee or Board shall specifically state otherwise at
the time an Option is granted, all Options granted under this Plan shall become vested and
exercisable in full on the date an Optionee terminates his employment with the Corporation or a
Subsidiary Company or service as a Non-Employee Director because of his death, Disability or
Retirement. In addition, all outstanding Options shall become immediately vested and exercisable
in full as of the effective date of a Change in Control.

     8.04 Duration of Options.

          (a) Employee Grants. Except as provided in Sections 8.04(b) and 8.09, each Option or portion
thereof granted to an Employee shall be exercisable at any time on or after it vests and remain
exercisable until the earlier of (i) ten (10) years after its date of grant or (ii) three (3)
months after the date on which the Employee ceases to be employed by Corporation and all Subsidiary
Companies, or any successor thereto, unless the Board or the Committee in its discretion decides at
the time of grant to extend such period of exercise upon termination of employment or service to a
period not exceeding five (5) years.

          (b) Non-Employee Director Grants. Except as provided in Section 8.05(c), each Option or
portion thereof granted to a Non-Employee Director shall be exercisable at any time on or after it
vests and becomes exercisable until the earlier of (i) ten (10) years after its date of grant or
(ii) three (3) years after the date on which the Optionee ceases to serve as a Non-Employee
Director.

          (c) Exceptions. Unless the Board or the Committee shall specifically state otherwise at the
time an Option is granted, if an Employee terminates his employment with the Corporation or a
Subsidiary Company as a result of Disability or Retirement without having fully exercised his
Options, the Employee shall have the right, during the one (1) year period following his
termination due to Disability or Retirement, to exercise such Options.

     Unless the Board or the Committee shall specifically state otherwise at the time an Option is
granted, if an Employee or Non-Employee Director terminates his employment or service with the
Corporation or a Subsidiary Company following a Change in Control without

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having fully exercised his Options, the Optionee shall have the right to exercise such Options
during the remainder of the original ten (10) year term of the Option from the date of grant.

     If an Optionee dies while in the employ or service of the Corporation or a Subsidiary Company
or terminates employment or service with the Corporation or a Subsidiary Company as a result of
Disability or Retirement and dies without having fully exercised his Options, the executors,
administrators, legatees or distributees of his estate shall have the right, during the one (1)
year period following his death, to exercise such Options.

     In no event, however, shall any Option be exercisable more than ten (10) years from the date
it was granted.

     8.05 Nonassignability. Options shall not be transferable by an Optionee except by will or the
laws of descent or distribution, and during an Optionee’s lifetime shall be exercisable only by
such Optionee or the Optionee’s guardian or legal representative. Notwithstanding the foregoing,
or any other provision of this Plan, an Optionee who holds Non-Qualified Options may transfer such
Options to his or her spouse, lineal ascendants, lineal descendants, or to a duly established trust
for the benefit of one or more of these individuals. Options so transferred may thereafter be
transferred only to the Optionee who originally received the grant or to an individual or trust to
whom the Optionee could have initially transferred the Option pursuant to this Section 8.05.
Options which are transferred pursuant to this Section 8.05 shall be exercisable by the transferee
according to the same terms and conditions as applied to the Optionee.

     8.06 Manner of Exercise. Options may be exercised in part or in whole and at one time or from
time to time. The procedures for exercise shall be set forth in the written Stock Option Agreement
provided for in Section 8.01 above.

     8.07 Payment for Shares. Payment in full of the purchase price for shares of Common Stock
purchased pursuant to the exercise of any Option shall be made to the Corporation upon exercise of
the Option. All shares sold under the Plan shall be fully paid and nonassessable. Payment for
shares may be made by the Optionee (i) in cash or by check, (ii) by delivery of a properly executed
exercise notice, together with irrevocable instructions to a broker to sell the shares and then to
properly deliver to the Corporation the amount of sale proceeds to pay the exercise price, all in
accordance with applicable laws and regulations and Emerging Issues Task Force Issue No. 00-23 and
Financial Accounting Standards Board Statement No. 123R, (iii) at the discretion of the Board or
the Committee, by delivering shares of Common Stock (including shares acquired pursuant to the
exercise of an Option) equal in Fair Market Value to the purchase price of the shares to be
acquired pursuant to the Option, (iv) at the discretion of the Board or the Committee, by
withholding some of the shares of Common Stock which are being purchased upon exercise of an
Option, or (v) any combination of the foregoing. With respect to subclause (iii) hereof, the
shares of Common Stock delivered to pay the purchase price must have either been (x) purchased in
open market transactions or (y) issued by the Corporation pursuant to a plan thereof, in each case
more than six months prior to the exercise date of the Option.

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     8.08 Voting and Dividend Rights. No Optionee shall have any voting or dividend rights or
other rights of a stockholder in respect of any shares of Common Stock covered by an Option prior
to the time that his name is recorded on the Corporation’s stockholder ledger as the holder of
record of such shares acquired pursuant to an exercise of an Option.

     8.09 Additional Terms Applicable to Incentive Stock Options. All Options issued under the
Plan as Incentive Stock Options will be subject, in addition to the terms detailed in Sections 8.01
to 8.08 above, to those contained in this Section 8.09.

          (a) Notwithstanding any contrary provisions contained elsewhere in this Plan and as long as
required by Section 422 of the Code, the aggregate Fair Market Value, determined as of the time an
Incentive Stock Option is granted, of the Common Stock with respect to which Incentive Stock
Options are exercisable for the first time by the Optionee during any calendar year under this
Plan, and stock options that satisfy the requirements of Section 422 of the Code under any other
stock option plan or plans maintained by the Corporation (or any parent or Subsidiary Company),
shall not exceed $100,000.

          (b) Limitation on Ten Percent Stockholders. The price at which shares of Common Stock may be
purchased upon exercise of an Incentive Stock Option granted to an individual who, at the time such
Incentive Stock Option is granted, owns, directly or indirectly, more than ten percent (10%) of the
total combined voting power of all classes of stock issued to stockholders of the Corporation or
any Subsidiary Company, shall be no less than one hundred and ten percent (110%) of the Fair Market
Value of a share of the Common Stock of the Corporation at the time of grant, and such Incentive
Stock Option shall by its terms not be exercisable after the earlier of the date determined under
Section 8.04 or the expiration of five (5) years from the date such Incentive Stock Option is
granted.

          (c) Notice of Disposition; Withholding; Escrow. An Optionee shall immediately notify the
Corporation in writing of any sale, transfer, assignment or other disposition (or action
constituting a disqualifying disposition within the meaning of Section 421 of the Code) of any
shares of Common Stock acquired through exercise of an Incentive Stock Option, within two (2) years
after the grant of such Incentive Stock Option or within one (1) year after the acquisition of such
shares, setting forth the date and manner of disposition, the number of shares disposed of and the
price at which such shares were disposed of. The Corporation shall be entitled to withhold from
any compensation or other payments then or thereafter due to the Optionee such amounts as may be
necessary to satisfy any withholding requirements of federal or state law or regulation and,
further, to collect from the Optionee any additional amounts which may be required for such
purpose. The Committee may, in its discretion, require shares of Common Stock acquired by an
Optionee upon exercise of an Incentive Stock Option to be held in an escrow arrangement for the
purpose of enabling compliance with the provisions of this Section 8.09(c).

     8.10 Stock Appreciation Rights.

          (a) General Terms and Conditions. The Board or the Committee may, but shall not be obligated
to, authorize the Corporation, on such terms and conditions as it deems

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appropriate in each case, to grant rights to Optionees to surrender an exercisable Option, or
any portion thereof, in consideration for the payment by the Corporation of an amount equal to the
excess of the Fair Market Value of the shares of Common Stock subject to the Option, or portion
thereof, surrendered over the exercise price of the Option with respect to such shares (any such
authorized surrender and payment being hereinafter referred to as a “Stock Appreciation Right”).
Such payment, at the discretion of the Board or the Committee, may be made in shares of Common
Stock valued at the then Fair Market Value thereof, or in cash, or partly in cash and partly in
shares of Common Stock.

     The terms and conditions set with respect to a Stock Appreciation Right may include (without
limitation), subject to other provisions of this Section 8.10 and the Plan: the period during
which, date by which or event upon which the Stock Appreciation Right may be exercised; the method
for valuing shares of Common Stock for purposes of this Section 8.10; a ceiling on the amount of
consideration which the Corporation may pay in connection with exercise and cancellation of the
Stock Appreciation Right; and arrangements for income tax withholding. The Board or the Committee
shall have complete discretion to determine whether, when and to whom Stock Appreciation Rights may
be granted.

          (b) Time Limitations. If a holder of a Stock Appreciation Right terminates service with the
Corporation as an Officer or Employee, the Stock Appreciation Right may be exercised only within
the period, if any, within which the Option to which it relates may be exercised.

          (c) Effects of Exercise of Stock Appreciation Rights or Options. Upon the exercise of a Stock
Appreciation Right, the number of shares of Common Stock available under the Option to which it
relates shall decrease by a number equal to the number of shares for which the Stock Appreciation
Right was exercised. Upon the exercise of an Option, any related Stock Appreciation Right shall
terminate as to any number of shares of Common Stock subject to the Stock Appreciation Right that
exceeds the total number of shares for which the Option remains unexercised.

          (d) Time of Grant. A Stock Appreciation Right granted in connection with an Incentive Stock
Option must be granted concurrently with the Option to which it relates, and a Stock Appreciation
Right granted in connection with a Non-Qualified Option must also be granted concurrently with the
Option to which it relates.

          (e) Non-Transferable. The holder of a Stock Appreciation Right may not transfer or assign the
Stock Appreciation Right otherwise than by will or in accordance with the laws of descent and
distribution, and during a holder’s lifetime a Stock Appreciation Right may be exercisable only by
the holder.

ARTICLE IX

SHARE AWARDS

     9.01 Share Award Notice. As promptly as practicable after the granting of a Share Award
pursuant to the terms hereof, the Board or the Committee shall notify the Recipient in

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writing of the grant of the Share Award, the number of shares covered by the Share Award,
whether the Share Award is a Performance Share Award and the terms upon which the shares subject to
the Share Award shall be distributed to the Recipient. The Board or the Committee shall maintain
records as to all grants of Share Awards and Performance Share Awards under the Plan.

     9.02 Earning Plan Shares; Forfeitures.

          (a) General Rules. Subject to the terms hereof, Share Awards granted hereunder shall be
earned at the rate and to the extent as may be specified by the Committee at the date of grant
thereof. If the employment of an Employee is terminated before the Share Award has been completely
earned for any reason (except as specifically provided in subsections (b), (c) and (d) below), the
Recipient shall forfeit the right to any shares subject to the Share Award which have not
theretofore been earned. In the event of a forfeiture of the right to any shares subject to a
Share Award, such forfeited shares shall become available for grant pursuant to Articles VI and VII
as if no Share Award had been previously granted with respect to such shares. No fractional shares
shall be distributed pursuant to this Plan.

          (b) Exception for Termination Due to Death or Disability. Notwithstanding the general rule
contained in Section 9.02(a), all shares subject to a Share Award held by a Recipient whose
employment with the Corporation or any Subsidiary Company terminates due to death or Disability
shall be deemed fully earned as of the Recipient’s last day of employment with the Corporation or
any Subsidiary Company and shall be distributed as soon as practicable thereafter.

          (c) Exception for a Change in Control. Notwithstanding the general rule contained in Section
9.02(a), all shares subject to a Share Award held by a Recipient shall be deemed to be fully earned
as of the effective date of a Change in Control.

     9.03 Dividends and Voting. A Recipient shall not be entitled to receive any cash dividends
declared on the Common Stock with respect to any unvested Share Award. A Recipient shall not be
entitled to any voting rights with respect to any unvested Share Award which has not yet been
earned and distributed to him or her pursuant to Section 9.04.

     9.04 Distribution of Plan Shares.

          (a) Timing of Distributions: General Rule. Subject to the provisions of Section 9.06 hereof,
shares shall be distributed to the Recipient or his Beneficiary, as the case may be, as soon as
practicable after they have been earned.

          (b) Form of Distributions. All shares shall be distributed in the form of Common Stock. One
share of Common Stock shall be given for each share earned and distributable.

          (c) Restrictions on Selling of Plan Shares. Share Awards may not be sold, assigned, pledged
or otherwise disposed of prior to the time that they are earned and distributed

12

 

pursuant to the terms of this Plan. Upon distribution, the Board or the Committee may require
the Recipient or his Beneficiary, as the case may be, to agree not to sell or otherwise dispose of
his distributed shares except in accordance with all then applicable Federal and state securities
laws, and the Board or the Committee may cause a legend to be placed on the stock certificate(s)
representing the distributed shares in order to restrict the transfer of the distributed shares for
such period of time or under such circumstances as the Board or the Committee, upon the advice of
counsel, may deem appropriate.

     9.05 Rights of Recipients. Notwithstanding anything to the contrary herein, a Participant who
receives a Share Award payable in Common Stock shall have no rights as a stockholder until the
Common Stock is issued pursuant to the terms of the Award Agreement.

     9.06 Performance Awards

          (a) Designation of Performance Share Awards. The Committee may determine to make any Share
Award a Performance Share Award by making such Share Award contingent upon the achievement of a
Performance Goal or any combination of Performance Goals. Each Performance Share Award shall be
evidenced by a written agreement (“Award Agreement”), which shall set forth the Performance Goals
applicable to the Performance Share Award, the maximum amounts payable and such other terms and
conditions as are applicable to the Performance Share Award. Each Performance Share Award shall be
granted and administered to comply with the requirements of Section 162(m) of the Code.

          (b) Timing of Grants. Any Performance Share Award shall be made not later than 90 days after
the start of the period for which the Performance Share Award relates and shall be made prior to
the completion of 25% of such period. All determinations regarding the achievement of any
Performance Goals will be made by the Committee. The Committee may not increase during a year the
amount of a Performance Share Award that would otherwise be payable upon achievement of the
Performance Goals but may reduce or eliminate the payments as provided for in the Award Agreement.

          (c) Restrictions on Grants. Nothing contained in the Plan will be deemed in any way to limit
or restrict the Committee from making any Award or payment to any person under any other plan,
arrangement or understanding, whether now existing or hereafter in effect.

          (d) Distribution. No Performance Share Award or portion thereof that is subject to the
attainment or satisfaction of a condition of a Performance Goal shall be distributed or considered
to be earned or vested until the Committee certifies in writing that the conditions or Performance
Goal to which the distribution, earning or vesting of such Award is subject have been achieved.

     9.07. Nontransferable. Share Awards and Performance Share Awards and rights to shares shall
not be transferable by a Recipient, and during the lifetime of the Recipient, shares which are the
subject of Share Awards may only be earned by and paid to a Recipient who was notified in writing
of a Share Award by the Committee pursuant to Section 9.01. No Recipient

13

 

or Beneficiary shall have any right in or claim to any assets of the Plan nor shall the
Corporation or any Subsidiary Company be subject to any claim for benefits hereunder.

ARTICLE X

ADJUSTMENTS FOR CAPITAL CHANGES

     The aggregate number of shares of Common Stock available for issuance under this Plan, the
number of shares to which any outstanding Award relates, the maximum number of shares that can be
covered by Awards to each Employee, each Non-Employee Director and all Non-Employee Directors as a
group, and the exercise price per share of Common Stock under any outstanding Option shall be
proportionately adjusted for any increase or decrease in the total number of outstanding shares of
Common Stock issued subsequent to the effective date of this Plan resulting from a split,
subdivision or consolidation of shares or any other capital adjustment, the payment of a stock
dividend, or other increase or decrease in such shares effected without receipt or payment of
consideration by the Corporation. If, upon a merger, consolidation, reorganization, liquidation,
recapitalization or the like of the Corporation, the shares of the Corporation’s Common Stock shall
be exchanged for other securities of the Corporation or of another corporation, each Recipient of
an Award shall be entitled, subject to the conditions herein stated, to purchase or acquire such
number of shares of Common Stock or amount of other securities of the Corporation or such other
corporation as were exchangeable for the number of shares of Common Stock of the Corporation which
such Recipients would have been entitled to purchase or acquire except for such action, and
appropriate adjustments shall be made to the per share exercise price of outstanding Options,
provided that in each case the number of shares or other securities subject to the substituted or
assumed stock options and the exercise price thereof shall be determined in a manner that satisfies
the requirements of Treasury Regulation §1.424-1 and the regulations issued under Section 409A of
the Code so that the substituted or assumed option is not deemed to be a modification of the
outstanding Options.

ARTICLE XI

AMENDMENT AND TERMINATION OF THE PLAN

     The Board may, by resolution, at any time terminate or amend the Plan with respect to any
shares of Common Stock as to which Awards have not been granted, subject to any required
stockholder approval or any stockholder approval which the Board may deem to be advisable for any
reason, such as for the purpose of obtaining or retaining any statutory or regulatory benefits
under tax, securities or other laws or satisfying any applicable stock exchange listing
requirements. The Board may not, without the consent of the holder of an Award, alter or impair
any Award previously granted or awarded under this Plan except as specifically authorized herein.

14

 

ARTICLE XII

EMPLOYMENT AND SERVICE RIGHTS

     Neither the Plan nor the grant of any Awards hereunder nor any action taken by the Committee
or the Board in connection with the Plan shall create any right on the part of any Employee or
Non-Employee Director to continue in such capacity.

ARTICLE XIII

WITHHOLDING

     13.01 Tax Withholding. The Corporation may withhold from any cash payment made under this
Plan sufficient amounts to cover any applicable withholding and employment taxes, and if the amount
of such cash payment is insufficient, the Corporation may require the Optionee to pay to the
Corporation the amount required to be withheld as a condition to delivering the shares acquired
pursuant to an Award. The Corporation also may withhold or collect amounts with respect to a
disqualifying disposition of shares of Common Stock acquired pursuant to exercise of an Incentive
Stock Option, as provided in Section 8.09(c).

     13.02 Methods of Tax Withholding. The Board or the Committee is authorized to adopt rules,
regulations or procedures which provide for the satisfaction of an Optionee’s tax withholding
obligation by the retention of shares of Common Stock to which the Employee would otherwise be
entitled pursuant to an Award and/or by the Optionee’s delivery of previously-owned shares of
Common Stock or other property.

ARTICLE XIV

EFFECTIVE DATE OF THE PLAN; TERM

     14.01 Effective Date of the Plan. This Plan as originally adopted was effective as of the
Effective Date, and Awards may be granted hereunder no earlier than the date that this Plan was
approved by stockholders of the Corporation and no later than the termination of the Plan. The
stockholders of the Corporation approved this Plan as originally adopted at a meeting held on April
20, 2005 pursuant to Article XV hereof. The amendment and restatement of this Plan was adopted
effective as of November 21, 2006.

     14.02 Term of the Plan. Unless sooner terminated, this Plan shall remain in effect for a
period of ten (10) years ending on the tenth anniversary of the Effective Date. Termination of the
Plan shall not affect any Awards previously granted and such Awards shall remain valid and in
effect until they have been fully exercised or earned, are surrendered or by their terms expire or
are forfeited.

15

 

ARTICLE XV

STOCKHOLDER APPROVAL

     The stockholders of the Corporation approved this Plan as originally adopted at a meeting of
stockholders of the Corporation held on April 20, 2005 within twelve (12) months following the
Effective Date in order to meet the requirements of (i) Section 422 of the Code and regulations
thereunder, (ii) Section 162(m) of the Code and regulations thereunder, and (iii) the National
Association of Securities Dealers, Inc. for quotation of the Common Stock on the Nasdaq Stock
Market’s National Market.

ARTICLE XVI

MISCELLANEOUS

     16.01 Governing Law. To the extent not governed by federal law, this Plan shall be construed
under the laws of the Commonwealth of Pennsylvania.

     16.02 Pronouns. Wherever appropriate, the masculine pronoun shall include the feminine
pronoun, and the singular shall include the plural.

16exv10w11

 

Exhibit 10.11

Workingmens Bank

Amended and Restated Restricted Stock Plan

and Trust Agreement

Article I

ESTABLISHMENT OF THE PLAN AND TRUST

     1.01 ESB Bank (the “Bank”) hereby amends and restates the Workingmens Bank Restricted Stock
Plan (the “Plan”) and Trust (the “Trust”) upon the terms and conditions hereinafter stated in this
amended and restated Restricted Stock Plan and Trust Agreement (the “Agreement”), with this
amendment and restatement effective as of November 21, 2006.

     1.02 The Trustee hereby accepts this Trust and agrees to hold the Trust assets existing on the
date of this Agreement and all additions and accretions thereto upon the terms and conditions
hereinafter stated.

Article II

PURPOSE OF THE PLAN

     2.01 The purpose of the Plan is to reward and to retain personnel of experience and ability in
key positions of responsibility with the Bank and its subsidiaries, by providing such personnel of
the Bank and its subsidiaries with an equity interest in the parent corporation of the Bank, ESB
Financial Corporation, as successor to WSB Holding Company (“Parent”), as compensation for their
prior and anticipated future professional contributions and service to the Bank and its
subsidiaries.

Article III

DEFINITIONS

     The following words and phrases when used in this Plan with an initial capital letter, unless
the context clearly indicates otherwise, shall have the meaning as set forth below. Wherever
appropriate, the masculine pronoun shall include the feminine pronoun and the singular shall
include the plural.

     3.01 “Bank” means ESB Bank, as the successor to Workingmens Bank.

 

 

     3.02 “Beneficiary” means the person or persons designated by the Participant to receive any
benefits payable under the Plan in the event of such Participant’s death. Such person or persons
shall be designated in writing on forms provided for this purpose by the Committee and may be
changed from time to time by similar written notice to the Committee. In the absence of a written
designation, the Beneficiary shall be the Participant’s surviving spouse, if any, or if none, the
Participant’s estate.

     3.03 “Board” means the Board of Directors of the ESB Bank, or any successor corporation
thereto.

     3.04 “Cause” means the personal dishonesty, incompetence, willful misconduct, breach of
fiduciary duty involving personal profits, intentional failure to perform stated duties, willful
violation of a material provision of any law, rule or regulation (other than traffic violations and
similar offense), or a material violation of a final cease-and-desist order or any other action
which results in a substantial financial loss to the Parent, the Bank or its Subsidiaries,

     3.05 “Change in Control” shall mean a change in the ownership of the Parent or the Bank, a
change in the effective control of the Parent or the Bank or a change in the ownership of a
substantial portion of the assets of the Parent or the Bank, in each case as provided under Section
409A of the Code and the regulations thereunder.

     3.06 “Committee” means the Board of Directors of the Parent or the Restricted Stock Plan
Committee appointed by the Board of Directors of the Parent pursuant to Article IV hereof.

     3.07 “Common Stock” means shares of the common stock of the Bank or any successor corporation
or Parent thereto.

     3.08 “Conversion” means the effective date of the stock charter of Workingmens Bank and
simultaneous acquisition of all of the outstanding stock of the Workingmens Bank by WSB Holding
Company.

     3.09 “Director” means a member of the Board of the Bank.

     3.10 “Director Emeritus” means a person serving as a director emeritus, advisory director,
consulting director, or other similar position as may be appointed by the Board of Directors of the
Bank or the Parent from time to time.

     3.11 “Disability” means the Participant (i) is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than 12
months, or (ii) is, by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous period of not less than
12 months, receiving income replacement benefits for a period of not less than three months under
an accident and health plan covering employees of the Parent or the Bank (or would have received
such benefits for at least three months if he had been eligible to participate in such plan).

2

 

     3.12 “Employee” means any person who is employed by the Bank or a Subsidiary.

     3.13 “Effective Date” means the day upon which the stockholders of WSB Holding Company
originally adopted this Plan. The amendment and restatement of this Plan shall be effective as of
November 21, 2006.

     3.14 “Parent” shall mean ESB Financial Corporation, the parent corporation of the Bank and
successor to WSB Holding Company.

     3.15 “Participant” means an Employee, Director or Director Emeritus who receives a Plan Share
Award under the Plan.

     3.16 “Plan Shares” means shares of Common Stock held in the Trust which are awarded or
issuable to a Participant pursuant to the Plan.

     3.17 “Plan Share Award” or “Award” means a right granted to a Participant under this Plan to
earn or to receive Plan Shares.

     3.18 “Plan Share Reserve” means the shares of Common Stock held by the Trust pursuant to
Sections 5.03 and 5.04.

     3.19 “Subsidiary” means those subsidiaries of the Parent which, with the consent of the Board,
agree to participate in this Plan.

     3.20 “Trustee” or “Trustee Committee” means that person(s) or entity nominated by the
Committee and approved by the Board pursuant to Sections 4.01 and 4.02 to hold legal title to the
Plan assets for the purposes set forth herein.

Article IV

ADMINISTRATION OF THE PLAN

     4.01 Role of the Committee. The Plan shall be administered and interpreted by the Board of
Directors of the Parent or a Committee appointed by said Board, which shall consist of not less
than two non-employee members of the Board, which shall have all of the powers allocated to it in
this and other sections of the Plan. All persons designated as members of the Committee shall be
“Non-Employee Directors” within the meaning of Rule 16b-3 under the Securities Exchange Act of
1934, as amended (“1934 Act”). The interpretation and construction by the Committee of any
provisions of the Plan or of any Plan Share Award granted hereunder shall be final and binding. The
Committee shall act by vote or written consent of a majority of its members. Subject to the express
provisions and limitations of the Plan, the Committee may adopt such rules, regulations and
procedures as it deems appropriate for the conduct of its affairs. The Committee shall report its
actions and decisions with respect to the Plan to the Board at appropriate times, but in no event
less than one time per calendar year. The Committee shall recommend to the Board one or more
persons or entity to act as Trustee in accordance with the provision of this Plan and Trust and the
terms of Article VIII hereof.

3

 

     4.02 Role of the Board. The members of the Committee and the Trustee shall be appointed or
approved by, and will serve at the pleasure of the Board. The Board may in its discretion from time
to time remove members from, or add members to, the Committee, and may remove, replace or add
Trustees. The Board shall have all of the powers allocated to it in this and other sections of the
Plan, may take any action under or with respect to the Plan which the Committee is authorized to
take, and may reverse or override any action taken or decision made by the Committee under or with
respect to the Plan, provided, however, that the Board may not revoke any Plan Share Award already
made except as provided in Section 7.01(b) herein.

     4.03 Limitation on Liability. No member of the Board, the Committee or the Trustee shall be
liable for any determination made in good faith with respect to the Plan or any Plan Share Awards
granted. If a member of the Board, Committee or any Trustee is a party or is threatened to be made
a party to any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative, by any reason of anything done or not done by him in
such capacity under or with respect to the Plan, the Parent and the Bank shall indemnify such
member against expenses (including attorney’s fees), judgments, fines and amounts paid in
settlement actually and reasonably incurred by him or her in connection with such action, suit or
proceeding if he or she acted in good faith and in a manner he or she reasonably believed to be in
the best interests of the Parent, the Bank and its Subsidiaries and, with respect to any criminal
action or proceeding, had no reasonable cause to believe his conduct was unlawful. Notwithstanding
anything herein to the contrary, in no event shall the Bank take any actions with respect to this
Section 4.03 which is not in compliance with the limitations or requirements set forth at 12 CFR
545.121, as may be amended from time to time.

     4.04 No Deferral of Compensation Under Section 409A of the Code. All Plan Share Awards
granted under the Plan are designed to not constitute a deferral of compensation for purposes of
Section 409A of the Code, in reliance upon the short-term deferral exception in the proposed
regulations. No Participant shall be permitted to defer the recognition of income beyond the date
a Plan Share Award shall be deemed earned pursuant to Article VII of this Plan.

Article V

CONTRIBUTIONS; PLAN SHARE RESERVE

     5.01 Amount and Timing of Contributions. The Board of Directors of the Bank shall determine
the amounts (or the method of computing the amounts) to be contributed by the Bank to the Trust
established under this Plan. Such amounts shall be paid to the Trustee at the time of contribution.
No contributions to the Trust by Participants shall be permitted except with respect to amounts
necessary to meet tax withholding obligations.

     5.02 Initial Investment. Any funds held by the Trust prior to investment in the Common Stock
shall be invested by the Trustee in such interest-bearing account or accounts at the Bank as the
Trustee shall determine to be appropriate.

     5.03 Investment of Trust Assets. Following approval of the Plan by stockholders of the Parent
and receipt of any other necessary regulatory approvals, the Trust shall purchase Common

4

 

Stock of the Parent in an amount equal to up to 100% of the Trust’s assets, after providing
for any required withholding as needed for tax purposes, provided, however, that the Trust shall
not purchase more than 13,224 shares of Common Stock, representing 4% of the aggregate shares of
Common Stock issued by the Parent in the Conversion. The Trustee may purchase shares of Common
Stock in the open market or, in the alternative, may purchase authorized but unissued shares of the
Common Stock or treasury shares from the Parent sufficient to fund the Plan Share Reserve.

     5.04 Effect of Allocations, Returns and Forfeitures Upon Plan Share Reserves. Upon the
allocation of Plan Share Awards under Sections 6.02 and 6.05, or the decision of the Committee to
return Plan Shares to the Parent, the Plan Share Reserve shall be reduced by the number of Shares
subject to the Awards so allocated or returned. Any Shares subject to an Award which are not earned
because of forfeiture by the Participant pursuant to Section 7.01 shall be added to the Plan Share
Reserve.

Article VI

ELIGIBILITY; ALLOCATIONS

     6.01 Eligibility. Employees and Directors Emeritus are eligible to receive Plan Share Awards
within the sole discretion of the Committee. Directors who are not otherwise Employees shall
receive Plan Share Awards pursuant to Section 6.05.

     6.02 Allocations. The Committee will determine which of the Employees will be granted Plan
Share Awards and the number of Shares covered by each Award, provided, however, that in no event
shall any Awards be made which will violate the Charter or Bylaws of the Bank or its Parent or
Subsidiaries or any applicable federal or state law or regulation. In the event Shares are
forfeited for any reason or additional Shares are purchased by the Trustee, the Committee may, from
time to time, determine which of the Employees will be granted Plan Share Awards to be awarded from
forfeited Shares. In selecting those Employees and Directors Emeritus to whom Plan Share Awards
will be granted and the number of shares covered by such Awards, the Committee shall consider the
prior and anticipated future position, duties and responsibilities of the Employees, the value of
their prior and anticipated future services to the Bank and its Subsidiaries, and any other factors
the Committee may deem relevant. All actions by the Committee shall be deemed final, except to the
extent that such actions are revoked by the Board. Notwithstanding anything herein to the contrary,
in no event shall any Participant receive Plan Share Awards in excess of 25% of the aggregate Plan
Shares authorized under the Plan.

     6.03 Form of Allocation. As promptly as practicable after a determination is made pursuant to
Section 6.02 or Section 6.05 that a Plan Share Award is to be made, the Committee shall notify the
Participant in writing of the grant of the Award, the number of Plan Shares covered by the Award,
and the terms upon which the Plan Shares subject to the award may be earned. The date on which the
Committee makes its award determination or the date the Committee so notifies the Participant shall
be considered the date of grant of the Plan Share Awards as determined by the Committee. The
Committee shall maintain records as to all grants of Plan Share Awards under the Plan.

5

 

     6.04 Allocations Not Required. Notwithstanding anything to the contrary at Sections 6.01, 6.02
or 6.05, no Employee shall have any right or entitlement to receive a Plan Share Award hereunder,
such Awards being at the sole discretion of the Committee and the Board, nor shall the Employees as
a group have such a right. The Committee may, with the approval of the Board (or, if so directed by
the Board) return all Common Stock in the Plan Share Reserve to the Bank at any time, and cease
issuing Plan Share Awards.

     6.05 Awards to Directors. Notwithstanding anything herein to the contrary, upon the Effective
Date, a Plan Share Award consisting of 793 Plan Shares shall be awarded to each Director of the
Bank that is not otherwise an Employee; provided however, such awards shall be limited to 661
shares absent a letter of approval or non-objection issued by the Office of Thrift Supervision with
regard to such larger award. Such Plan Share Award shall be earned and non-forfeitable at the rate
of one-fifth as of the one-year anniversary of the Effective Date and an additional one-fifth
following each of the next four successive years during such periods of service as a Director or
Director Emeritus. Further, such Plan Share Award shall be immediately 100% earned and
non-forfeitable in the event of the death or Disability of such Director or Director Emeritus, or
upon a Change in Control of the Bank or Parent; provided that such accelerated vesting is not
inconsistent with applicable regulations of the Office of Thrift Supervision (“OTS”) or other
applicable banking regulatory agency at the time of such Change in Control. Subsequent to the
Effective Date, Plan Share Awards may be awarded to newly elected or appointed Directors of the
Bank by the Committee, provided that total Plan Share Awards granted to non-employee Directors of
the Bank shall not exceed 30% of the total Plan Share Reserve in the aggregate under the Plan or 5%
of the total Plan Share Reserve to any individual non-employee Director, unless the Bank shall
receive a letter of approval or non-objection from the OTS approving the award of up to 6% to any
individual non-employee Director.

Article VII

EARNINGS AND DISTRIBUTION OF PLAN SHARES; VOTING RIGHTS

     7.01 Earnings Plan Shares; Forfeitures.

     (a) General Rules. Unless the Committee shall specifically state to the contrary at the time a
Plan Share Award is granted, Plan Shares subject to an Award shall be earned and non-forfeitable by
a Participant at the rate of one-fifth of such Award following one year after the granting of such
Award, and an additional one-fifth following each of the next four successive years; provided that
such Participant remains an Employee, Director, or Director Emeritus during such period.
Notwithstanding anything herein to the contrary, in no event shall a Plan Share Award granted
hereunder be earned and non-forfeitable by a Participant more rapidly than at the rate of one-fifth
of such Award as of the one year anniversary of the date of grant and an additional one-fifth
following each of the next four successive years.

     (b) Revocation for Misconduct. Notwithstanding anything herein to the contrary, the Board
shall, by resolution, immediately revoke, rescind and terminate any Plan Share Award, or portion
thereof, previously awarded under this Plan, to the extent Plan Shares have not been delivered
thereunder to the Participant, whether or not yet earned, in the case of a Participant

6

 

who is discharged from the employ or service of the Parent, Bank or a Subsidiary for Cause, or
who is discovered after termination of employment or service to have engaged in conduct that would
have justified termination for Cause. A determination of Cause shall be made by the Board within
its sole discretion.

     (c) Exception for Terminations Due to Death or Disability. Notwithstanding the general rule
contained in Section 7.01(a) above, all Plan Shares subject to a Plan Share Award held by a
Participant whose employment or service with the Parent, Bank or a Subsidiary terminates due to
death or Disability, shall be deemed earned and nonforfeitable as of the Participant’s last date of
employment or service with the Parent, the Bank or Subsidiary and shall be distributed as soon as
practicable thereafter.

     (d) Exception for Termination after a Change in Control. Notwithstanding the general rule
contained in Section 7.01 above, all Plan Shares subject to a Plan Share Award held by a
Participant shall be deemed to be immediately 100% earned and non-forfeitable in the event of a
Change in Control of the Parent or the Bank and shall be distributed as soon as practicable
thereafter; provided that such accelerated vesting is not inconsistent with applicable regulations
of the OTS or other applicable banking regulatory agency at the time of such Change in Control.

     7.02 Accrual and Payment of Dividends. A holder of a Plan Share Award, whether or not earned,
shall also be entitled to receive an amount equal to any cash dividends declared and paid with
respect to shares of Common Stock represented by such Plan Share Award between the date the
relevant Plan Share Award was granted to such Participant and the date the Plan Shares are
distributed. Such cash dividend amounts shall be held in arrears under the Trust and distributed
upon the earning of the applicable Plan Share Award. Such payment shall also include an appropriate
amount of earnings, if any, of the Trust assets with respect to any cash dividends so distributed.

     7.03 Distribution of Plan Shares.

     (a) Timing of Distributions: General Rule. Except as provided in Subsections (d) and (e)
below, Plan Shares shall be distributed to the Participant or his Beneficiary, as the case may be,
as soon as practicable after they have been earned. No fractional shares shall be distributed.
Notwithstanding anything herein to the contrary, at the discretion of the Committee, Plan Shares
may be distributed prior to such Shares being 100% earned, provided that such Plan Shares shall
contain a restrictive legend detailing the applicable limitations of such shares with respect to
transfer and forfeiture.

     (b) Form of Distribution. All Plan Shares, together with any shares representing stock
dividends, shall be distributed in the form of Common Stock. One share of Common Stock shall be
given for each Plan Share earned. Payments representing cash dividends (and earnings thereon) shall
be made in cash. Notwithstanding anything within the Plan to the contrary, upon a Change in Control
whereby substantially all of the Common Stock of the Company shall be acquired for cash, all Plan
Shares associated with Plan Share Awards, together with any shares representing stock dividends
associated with Plan Share Awards, shall be, at the sole discretion of the Committee, distributed
as of the effective date of such Change in Control, or as soon as administratively feasible
thereafter, in the form of cash equal to the consideration received in exchange for such Common
Stock represented by such Plan Shares.

7

 

     (c) Withholding. The Trustee may withhold from any payment or distribution made under this
Plan sufficient amounts of cash or shares of Common Stock necessary to cover any applicable
withholding and employment taxes, and if the amount of such payment or distribution is not
sufficient, the Trustee may require the Participant or Beneficiary to pay to the Trustee the amount
required to be withheld in taxes as a condition of delivering the Plan Shares. The Trustee shall
pay over to the Parent, Bank or Subsidiary which employs or employed such Participant any such
amount withheld from or paid by the Participant or Beneficiary.

     (d) Timing: Exception for 10% Shareholders. Notwithstanding Subsection (a) above, no Plan
Shares may be distributed prior to the date which is five years from the effective date of the
Conversion to the extent the Participant or Beneficiary, as the case may be, would after receipt of
such Shares owned in excess of ten percent (10%) of the issued and outstanding shares of Common
Stock held by parties other than Parent, unless such action is approved in advance by a majority
vote of disinterested directors of the Board of the Parent. Any Plan Shares remaining undistributed
solely by reason of the operation of this Subsection (d) shall be distributed to the Participant or
his Beneficiary on the date which is five years from the effective date of the Conversion.

     (e) Regulatory Exceptions. No Plan Shares shall be distributed, however, unless and until all
of the requirements of all applicable law and regulation shall have been fully complied with,
including the receipt of approval of the Plan by the stockholders of the Parent by such vote, if
any, as may be required by applicable law and regulations as determined by the Board.

     7.04 Voting of Plan Shares. After a Plan Share Award has become earned and non- forfeitable,
the Participant shall be entitled to direct the Trustee as to the voting of the Plan Shares which
are associated with the Plan Share Award and which have not yet been distributed pursuant to
Section 7.03, subject to rules and procedures adopted by the Committee for this purpose. All shares
of Common Stock held by the Trust as to which Participants are not entitled to direct, or have not
directed, the voting of such Shares, shall be voted by the Trustee as directed by the Committee.

Article VIII

TRUST

     8.01 Trust. The Trustee shall receive, hold, administer, invest and make distributions and
disbursements from the Trust in accordance with the provisions of the Plan and Trust and the
applicable directions, rules, regulations, procedures and policies established by the Committee
pursuant to the Plan,

     8.02 Management of Trust. It is the intention of this Plan and Trust that the Trustee shall
have complete authority and discretion with respect to the management, control and investment of
the Trust, and that the Trustee shall invest all assets of the Trust, except those attributable to
cash dividends paid with respect to Plan Shares not held in the Plan Share Reserve, in Common Stock
to the fullest extent practicable, except to the extent that the Trustee determines that the
holding of monies in cash or cash equivalents is necessary to meet the obligations of the Trust. In

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performing their duties, the Trustees shall have the power to do all things and execute such
instruments as may be deemed necessary or proper, including the following powers:

(a) To invest up to one hundred percent (100%) of all Trust assets in the Common Stock
without regard to any law now or hereafter in force limiting investments for Trustees or
other fiduciaries. The investment authorized herein may constitute the only investment of
the Trust, and in making such investment, the Trustee is authorized to purchase Common Stock
from the Parent or from any other source, and such Common Stock so purchased may be
outstanding, newly issued, or treasury shares.

(b) To invest any Trust assets not otherwise invested in accordance with (a) above in such
deposit accounts, and certificates of deposit (including those issued by the Bank),
obligations of the United States government or its agencies or such other investments as
shall be considered the equivalent of cash.

(c) To sell, exchange or otherwise dispose of any property at any time held or acquired by
the Trust.

(d) To cause stocks, bonds or other securities to be registered in the name of a nominee,
without the addition of words indicating that such security is an asset of the Trust (but
accurate records shall be maintained showing that such security is an asset of the Trust).

(e) To hold cash without interest in such amounts as may be in the opinion of the Trustee
reasonable for the proper operation of the Plan and Trust.

(f) To employ brokers, agents, custodians, consultants and accountants.

(g) To hire counsel to render advice with respect to their rights, duties and obligations
hereunder, and such other legal services or representation as they may deem desirable.

(h) To hold funds and securities representing the amounts to be distributed to a Participant
or his Beneficiary as a consequence of a dispute as to the disposition thereof, whether in a
segregated account or held in common with other assets.

     Notwithstanding anything herein contained to the contrary, the Trustee shall not be required
to make any inventory, appraisal or settlement or report to any court, or to secure any order of a
court for the exercise of any power herein contained, or to maintain bond.

     8.03 Records and Accounts. The Trustee shall maintain accurate and detailed records and
accounts of all transactions of the Trust, which shall be available at all reasonable times for
inspection by any legally entitled person or entity to the extent required by applicable law, or
any other person determined by the Committee.

     8.04 Earnings. All earnings, gains and losses with respect to Trust assets shall be allocated
in accordance with a reasonable procedure adopted by the Committee, to bookkeeping accounts for
Participants or to the general account of the Trust, depending on the nature and allocation of the
assets generating such earnings, gains and losses. In particular, any earnings on cash dividends
received with respect to shares of Common Stock shall be allocated to accounts for Participants,
except to the extent that such cash dividends are distributed to Participants, if such shares are
the subject of outstanding Plan Share Awards, or, otherwise to the Plan Share Reserve.

     8.05 Expenses. All costs and expenses incurred in the operation and administration of this

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Plan, including those incurred by the Trustee, shall be paid by the Bank.

     8.06 Indemnification. Subject to the requirements and limitations of applicable laws and
regulations, the Parent and the Bank shall indemnify, defend and hold the Trustee harmless against
all claims, expenses and liabilities arising out of or related to the exercise of the Trustee’s
powers and the discharge of their duties hereunder, unless the same shall be due to their gross
negligence or willful misconduct.

Article IX

MISCELLANEOUS

     9.01 Adjustments for Capital Changes. The aggregate number of Plan Shares available for
issuance pursuant to the Plan Share Awards and the number of Shares to which any Plan Share Award
relates shall be proportionately adjusted for any increase or decrease in the total number of
outstanding shares of Common Stock issued subsequent to the effective date of the Plan resulting
from any split, subdivision or consolidation of the Common Stock or other capital adjustment,
change or exchange of the Common Stock, or other increase or decrease in the number or kind of
shares effected without receipt or payment of consideration by the Parent.

     9.02 Amendment and Termination of the Plan. The Board may, by resolution, at any time, amend
or terminate the Plan. The power to amend or terminate the Plan shall include the power to direct
the Trustee to return to the Parent all or any part of the assets of the Trust, including shares of
Common Stock held in the Plan Share Reserve, as well as shares of Common Stock and other assets
subject to Plan Share Awards which have not yet been earned by the Participants to whom they have
been awarded. However, the termination of the Trust shall not affect a Participant’s right to earn
Plan Share Awards and to the distribution of Common Stock relating thereto, including earnings
thereon, in accordance with the terms of this Plan and the grant by the Committee or the Board.
Notwithstanding the foregoing, no action of the Board may increase (other than as provided in
Section 9.01 hereof) the maximum number of Plan Shares permitted to be awarded under the Plan as
specified at Section 5.03, materially increase the benefits accruing to Participants under the Plan
or materially modify the requirements for eligibility for participation in the Plan unless such
action of the Board shall be subject to ratification by the stockholders of the Parent.

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