Document:

EX-10.3

 

Exhibit 10.3

AGREEMENT FOR RESTRICTED STOCK AWARD

This Agreement for Restricted Stock Award agreement (the “Agreement”) is between FIRST FINANCIAL BANCORP., an
Ohio Corporation (the “Corporation”), and [employee name], who, as of [date], which is the date of
this Agreement, is an employee of [employer name] (the “Employee”):

WHEREAS, the Corporation established the 1999 Stock Incentive Plan for Officers and Employees (the
“Plan”) and a Committee of the Board of Directors of the Corporation designated in the Plan (the
“Committee”) approved the execution of this Agreement containing the Restricted Stock Award herein
set forth to the Employee upon the terms and conditions hereinafter set forth:

NOW THEREFORE, in consideration of the mutual obligations contained herein, it is hereby agreed:

	1.  	Award of Restricted Stock. The Corporation hereby awards to Employee as of the date
of this Agreement [number of shares awarded] shares of restricted Common Stock of the
Corporation (“Common Stock”), without par value, in consideration of services to be rendered.
	 
	2.  	Restrictions on Transfer. The shares of restricted Common Stock so received by the
Employee and any additional shares attributable thereto received by the Employee as a result
of any stock dividend, recapitalization, merger, reorganization or similar event are subject
to the restrictions set forth herein and may not be sold, assigned, transferred, pledged or
otherwise encumbered during the Restriction Period, except as permitted hereby.
	 
	3.  	Restriction Period. The Restriction Period begins as of the date of this Agreement
and ends with respect to the restricted Common Stock granted under this Agreement as of
whichever is later: (i) the applicable anniversary date(s) of the date of this Agreement (the
“Anniversary Dates”) as set forth in Schedule 3(a), or (ii) the applicable Anniversary Date(s)
as of which the Committee determines that the applicable Benchmarks are met as set forth in
Schedule 3(b). The ending of the Restriction Period also may be referred to in this Agreement
as the vesting of the restricted Common Stock or as when the Common Stock vests.
Notwithstanding the foregoing, if the Committee determines that there has been a Change in
Control (as such term is defined in the Plan), the Restriction Period ends with respect to
such shares of restricted Common Stock, effective as of the date of such Change in Control (as
determined by the Committee).
	 
	   	The Committee may, at the time of the granting to the Employee of the restricted Common
Stock or at any time thereafter, reduce or terminate the Restriction Period otherwise
applicable to all or any portion of the restricted Common Stock, provided, however, that if
the Employee is a Covered Employee (as defined in the Plan), any applicable Benchmarks have
been satisfied, or the Covered Employee has terminated employment due to his or her death or
Disability (as defined in the Plan).

Schedule 3(a)

	 	 	 	 	 
	 	 	 	 	Shares of Common Stock
	 	 	 	 	First Eligible to Vest on
	 	 	Anniversary Date	 	Indicated Anniversary Date
	Group	 	of this Agreement	 	If Benchmarks Are Met
	A

	 	1st anniversary date
	 	 
	B

	 	2nd anniversary date
	 	 
	C

	 	3rd anniversary date
	 	 
	D

	 	4th anniversary date
	 	 

Schedule 3(b)

	   	The following performance-based standards (“Benchmarks”) apply separately to each Group as
described in Schedule 3(a) of the restricted Common Stock awarded under this Agreement. The
Benchmark for each such Group is met only if the Committee determines that First Financial
Bancorp. achieved at least a 12% return on equity (“ROE”) for an applicable period for that
Group as specified below. The Anniversary Dates as of which the applicable Benchmarks, if
met, will be deemed to be satisfied are set forth in this Schedule 3(b). For the purposes
of this Agreement, return on equity will mean after-tax earnings as determined according to
generally accepted accounting principles (GAAP) divided by average shareholders’ equity for
the applicable periods.

	 	a.  	For the shares of Common Stock in Group A, Group B, and Group C
which are first eligible to vest on a specified Anniversary Date, the Benchmark
for each such Group is met as of such specified Anniversary Date only if the
Committee determines that ROE for the calendar year prior to the calendar year
containing the specified Anniversary Date is at least 12%.

 

 

	 	b.  	As an example, for shares of Common Stock in Group A which are
first eligible to vest on the first Anniversary Date, the Benchmark for Group A
is met on the first Anniversary Date only if the Committee determines that ROE
for the calendar year prior to the calendar year containing the first
Anniversary Date is at least 12%. If that is the case, shares in Group A will
vest on the first Anniversary Date (provided such shares have not been
forfeited prior to such Anniversary Date pursuant to Section 4 of this
Agreement).
	 
	 	c.  	As another example, for shares of Common Stock in Group C which are
first eligible to vest on the third Anniversary Date, the Benchmark for Group C
is not met on the third Anniversary Date if the Committee determines that ROE
for the calendar year prior to the calendar year containing the third
Anniversary Date is less than 12%. In that case, shares in Group C will not
vest on the third Anniversary Date. This result occurs even if the average of
the returns on equity for all calendar years since the year containing the date
of this Agreement is 12% or higher.
	 
	 	d.  	For the shares of Common Stock in Group D, the Benchmark is met as
of the fourth Anniversary Date and those shares will vest on the fourth
Anniversary Date (provided such shares have not been forfeited prior to such
Anniversary Date pursuant to Section 4 of this Agreement) if the Committee
determines that either: (i) ROE for the calendar year prior to the calendar
year containing the fourth Anniversary Date is at least 12%, or (ii) the
average of the returns on equity calculated separately for each calendar year
beginning with the calendar year containing the date of this Agreement and
ending with the calendar year prior to the fourth Anniversary Date is at least
12%.
	 
	 	e.  	If shares of Common Stock in Group A, Group B, or Group C do not
vest on the Anniversary Date on which they first are eligible to vest because
the Committee determines that ROE for the calendar year prior to the calendar
year containing the such Anniversary Date for the Group is less than 12%, the
Benchmark for the shares in such Group will be met and such shares will vest on
the first subsequent Anniversary Date (provided such shares have not been
forfeited prior to such Anniversary Date pursuant to Section 4 of this
Agreement) which is not later than the fourth Anniversary Date and on which the
Committee determines that the average of the returns on equity calculated
separately for each calendar year beginning with the calendar year containing
the date of this Agreement and ending with the calendar year prior to such
Anniversary Date is at least 12%.
	 
	 	f.  	For example, if the Benchmark described in paragraph a is not met
for Group A as of the first Anniversary Date, but the Committee determines that
the average of the ROE for the calendar year containing the date of this
Agreement and the ROE for the following calendar year is at least 12%, the
shares of Common Stock in Group A will vest on the second Anniversary

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	 	   	Date (provided no forfeiture has occurred pursuant to Section 4). In this
example, the shares in Group B will vest on the second Anniversary Date only if
the ROE for the calendar year prior to the year containing the second
Anniversary Date is at least 12% (and provided no forfeiture has occurred
pursuant to Section 4).

	4.  	Forfeiture Provision. Notwithstanding any other provision of this Agreement,
Employee hereby agrees that if his or her employment with the Corporation is terminated for
any reason, voluntarily or involuntarily, whether by retirement, death, disability,
resignation or dismissal for cause or otherwise, and such termination is prior to the ending
of the Restriction Period applicable to any shares of the restricted Common Stock, the
Employee’s ownership and all related rights with respect to all shares of Common Stock for
which the Restriction Period has not ended as of the date that the termination of employment
occurs will be forfeited automatically as of the date that such termination of employment
occurs, and the Corporation automatically will become the sole owner of such shares as of such
date.
	 
	   	References to the Corporation in this Section include the Corporation’s subsidiaries and
Affiliates. A transfer of the Employee’s employment between subsidiaries and/or Affiliates
of the Corporation or between any subsidiary or Affiliate and the Corporation will not be
considered a termination of employment for purposes of this Agreement. Notwithstanding the
foregoing, an Employee’s employment will be considered terminated for purposes of this
Agreement as of the date that the Employee’s employing subsidiary or Affiliate ceases to be
a subsidiary or Affiliate of the Corporation for any reason, unless prior to or as of such
date the Employee’s employment is transferred to the Corporation or to a remaining
subsidiary or Affiliate of the Corporation.

	5.  	Stock Certificates.

	 	(a)  	Upon award of the restricted Common Stock to the Employee, one or more stock
certificates which evidence such shares of restricted Common Stock will be issued by
the Corporation for the benefit of the Employee. Each such stock certificate will be
deposited with and held by the Corporation or its agent. Any such certificate for
restricted Common Stock of the Corporation resulting from any stock dividend,
recapitalization, merger, reorganization or similar event will also be deposited with
and held by the Corporation or its agent. All such stock certificates and Common Stock
evidenced thereby will be subject to the forfeiture provisions, limitations on
transferability and all other restrictions herein contained. The Employee hereby
agrees to deposit with the Corporation stock powers endorsed by the Employee in blank
and in such number as requested by the Corporation.
	 
	 	(b)  	All stock certificates for shares of restricted Common Stock issued during the
Restriction Period will bear the following legend:

“The transferability of this certificate and the shares of stock represented hereby
are subject to the terms and conditions (including forfeiture) of the First
Financial Bancorp. 1999 Stock Incentive Plan and a Restricted Stock Agreement.
Copies of such Plan and Agreement are on file at the offices of First Financial
Bancorp., Hamilton, Ohio.”

	 	(c)  	With regard to any shares of restricted Common Stock which cease to be subject
to restrictions pursuant to Section 3, the Corporation will, within sixty (60) days of
the date such shares cease to be subject to restrictions, transfer Common Stock for
such shares free of all restrictions set forth in the Plan and this Agreement to the
Employee or the Employee’s designee, or in the event of such Employee’s death
subsequent to expiration of the Restriction Period, to the Employee’s legal
representative, heir or legatee.

	6.  	Shareholder’s Rights. Subject to the terms of this Agreement, during the Restriction
Period:

	 	(a)  	The Employee will have, with respect to the restricted Common Stock, the right
to vote all shares of the restricted Common Stock received under or as a result of this
Agreement, including shares which are subject to the restrictions on transfer in
Section 2 and to the forfeiture provisions in Section 4 of this Agreement.

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	 	(b)  	Cash dividends paid with respect to restricted Common Stock during the
Restriction Period will be paid in cash to the Employee.
	 
	 	(c)  	Dividends payable in Common Stock with respect to the restricted Common Stock
during the Restriction Period will be held subject to the vesting of the
underlying restricted Common Stock and then automatically paid in the form of Common
Stock to the Employee.

	7.  	Regulatory Compliance. The issue of shares of restricted Common Stock and Common
Stock will be subject to full compliance with all then-applicable requirements of law and the
requirements of the exchange upon which Common Stock may be traded, as set forth in the Plan.
	 
	8.  	Withholding Tax. The Employee agrees that, in the event that award and receipt of
the restricted Common Stock or the expiration of restrictions thereon results in the
Employee’s realization of income which for federal, state or local income tax purposes is, in
the opinion of counsel for the Corporation, subject to withholding of tax at source by the
Employee’s employer, the Employee will pay to such Employee’s employer an amount equal to such
withholding tax or make arrangements satisfactory to the Corporation regarding the payment of
such tax (or such employer on behalf of the Corporation may withhold such amount from
Employee’s salary or from dividends paid by the Corporation on shares of the restricted Common
Stock or any other compensation payable to the Employee).
	 
	9.  	Investment Representation. The Employee represents and agrees that if he or she is
awarded and receives the restricted Common Stock at a time when there is not in effect under
the Securities Act of 1933 a registration statement pertaining to the shares and there is not
available for delivery a prospectus meeting the requirements of Section 10(A)(3) of said Act,
(i) he or she will accept and receive such shares for the purpose of investment and not with a
view to their resale or distribution, (ii) that upon such award and receipt, he or she will
furnish to the Corporation an investment letter in form and substance satisfactory to the
Corporation, (iii) prior to selling or offering for sale any such shares, he or she will
furnish the Corporation with an opinion of counsel satisfactory to the Corporation to the
effect that such sale may lawfully be made and will furnish the Corporation with such
certificates as to factual matters as the Corporation may reasonably request, and (iv) that
certificates representing such shares may be marked with an appropriate legend describing such
conditions precedent to sale or transfer.
	 
	10.  	Federal Income Tax Election. The Employee hereby acknowledges receipt of advice
that, pursuant to current federal income tax laws, (i) he or she has thirty (30) days in which
to elect to be taxed in the current taxable year on the fair market value of the restricted
Common Stock in accordance with the provisions of Internal Revenue Code Section 83(b), and
(ii) if no such election is made, the taxable event will occur upon expiration of restrictions
on transfer at termination of the Restriction Period and the tax will be measured by the fair
market value of the restricted Common Stock on the date of the taxable event.
	 
	11.  	Adjustments. If, after the date of this Agreement, the Common Stock of the
Corporation is, as a result of a merger, reorganization, consolidation, recapitalization,
reclassification, split-up, spin-off, separation, liquidation, stock dividend, stock split,
reverse stock split, property dividend, share repurchase, share combination, share exchange,
issuance of warrants, rights or debentures or other change in corporate structure of the
Corporation, increased or decreased or changed into or exchanged for a different number or
kind of shares of stock or other securities of the Corporation or of another corporation,
then:

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	 	(a)  	there automatically will be substituted for each share of restricted Common
Stock for which the Restriction Period has not ended granted under the Agreement the
number and kind of shares of stock or other securities into which each outstanding
share is changed or for which each such share is exchanged; and
	 
	 	(b)  	the Corporation will make such other adjustments to the securities subject to
provisions of the Plan and this Agreement as may be appropriate and equitable;
provided, however, that the number of shares of restricted Common Stock will always be
a whole number.

	12.  	Notices. Each notice relating to this Agreement must be in writing and delivered in
person or by registered mail to the Corporation at its office, 300 High Street, Hamilton, Ohio
45011, attention of the Secretary, or at such other place as the Corporation has designated by
notice. All notices to the Employee or other person or persons succeeding to his or her
interest will be delivered to the Employee or such other person or persons at the Employee’s
address below specified or such other address as specified in a notice filed with the
Corporation.
	 
	13.  	Determinations of the Corporation Final. Any dispute or disagreement which arises
under, as a result of, or in any way relates to the interpretation or construction of this
Agreement will be determined by the Board of Directors of the Corporation or by a committee
appointed by the Board of Directors of the Corporation (or any successor corporation). The
Employee hereby agrees to accept any such determination as final, binding and conclusive for
all purposes.
	 
	14.  	Successors. All rights under this Agreement are personal to the Employee and are not
transferable except that in the event of the Employee’s death, such rights are transferable to
the Employee’s legal representatives, heirs or legatees. This Agreement will inure to the
benefit of and be binding upon the Corporation and its successors and assigns.
	 
	15.  	Obligations of the Corporation. The liability of the Corporation under the Plan and
this Agreement is limited to the obligations set forth therein. No term or provision of the
Plan or this Agreement will be construed to impose any liability on the Corporation in favor
of the Employee with respect to any loss, cost or expense which the Employee may incur in
connection with or arising out of any transaction in connection therewith.
	 
	16.  	Governing Law. This Agreement will be governed by and interpreted in accordance with
the laws of the State of Ohio.
	 
	17.  	Plan. The First Financial Bancorp. 1999 Stock Incentive Plan for Officers and
Employees (the “Plan”) will control if there is any conflict between the Plan and this
Agreement and on any matters that are not contained in this Agreement. A copy of the Plan has
been provided to the Employee and is incorporated by reference and made a part of this
Agreement. Capitalized terms used but not specifically defined in this Agreement will have
the definitions given to them in the Plan.
	 
	18.  	Entire Agreement. This Agreement and the Plan supersede any other agreement, whether
written or oral, that may have been made or entered into by the Corporation and/or any of its
subsidiaries and the Employee relating to the shares of restricted Common Stock that are
granted under this Agreement. This Agreement and the Plan constitute the entire agreement by
the parties with respect to such matters, and there are no agreements or commitments except as set forth
herein and in the Plan.

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	19.  	Captions; Counterparts. The captions in this Agreement are for convenience only and
will not be considered a part of or affect the construction or interpretation of any provision
of this Agreement. This Agreement may be executed in any number of counterparts, each of
which will constitute one and the same instrument.

IN WITNESS WHEREOF, this Agreement for Restricted Stock Award has been executed and dated by the
parties hereto as of the ___day of ___, 200___.

	 	 	 	 	 	 	 
	 	 	FIRST FINANCIAL BANCORP.
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	

	 	 
	 
	 	 	 	 	 	 
	

	 	Title:
	 	President & CEO	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	

	 	 
	

	 	 	 	Signature of Employee	 	 

I hereby direct that all cash dividends to which I am entitled on my shares of restricted Common
Stock under the foregoing Agreement as well as all notices and other written communications in
connection with such shares be mailed to me at the following address:

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	

	 	 	 	Name of Employee	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	

	 	 	 	Street Address	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	

	 	 	 	City, State, and Zip Code	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	

	 	 	 	Social Security Number	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	

	 	 	 	Signature of Employee	 	 

RSA99-EMP

6Exhibit 10.1

 

 

PROMISSORY NOTE

		

$500,000.00 

				April 18, 2005

            FOR VALUE RECEIVED, on or before March
31, 2010 (the "Maturity Date"), the undersigned, HOME
SOLUTIONS OF AMERICA, INC., a Delaware corporation ("Maker"),
promises to pay to the order of LADDCAP VALUE PARTNERS L.P., a Delaware limited
partnership ("Payee"; Payee and any subsequent holder[s]
hereof are hereinafter referred to individually and collectively as "Holder"),
at such other place as Holder may designate to Maker in writing from time to
time, the principal sum of FIVE HUNDRED THOUSAND AND NO/100THS DOLLARS ($500,000.00),
together with interest on the outstanding principal balance hereof from the
date hereof at the rate of twelve percent (12%) per annum (computed on the
basis of a 360-day year and the actual number of days elapsed, to the extent
permitted by applicable law).

            Interest on the outstanding principal balance
hereof shall be due and payable quarterly, in arrears, with the first
installment being payable on the last business day of June, 2005, and
subsequent installments being payable on the last business day of each
succeeding Fiscal Quarter thereafter.  On the Maturity Date, the entire
outstanding principal balance, together with all accrued and unpaid interest,
shall be immediately due and payable in full.

            The indebtedness evidenced hereby may be prepaid
in whole or in part, at any time and from time to time, without premium or
penalty.  Any such prepayments shall be credited first to any accrued and
unpaid interest and then to the outstanding principal balance hereof, in
inverse order of maturity.

            Reference is here made to that certain Loan
Agreement of even date herewith, by and among Maker, Payee, certain Lenders and
Petra Mezzanine Fund, L.P., as Administrative Agent (together with any and all
amendments, modifications, supplements, extensions, renewals, substitutions
and/or replacements thereof, herein referred to as the "Loan Agreement";
capitalized terms used but not otherwise defined herein shall have the same
meanings as in the Loan Agreement).  This Note is a "Note" as defined
and referred to in the Loan Agreement, and this Note is entitled to the
benefits and security of, and is secured by, the Loan Agreement, the other
Security Documents and the other Loan Documents.

Upon the occurrence of an Event
of Default, the entire outstanding principal balance of the indebtedness
evidenced hereby, together with all accrued and unpaid interest thereon, may be
declared, and immediately shall become, due and payable in full, as provided in
the Loan Agreement.

 

PAGE 1 OF A 3 PAGE NOTE

Upon the occurrence of any Event
of Default, at the option of Holder and without notice to Maker, all accrued
and unpaid interest, if any, shall be added to the outstanding principal
balance hereof, and the entire outstanding principal balance, as so adjusted,
shall bear interest thereafter until paid at an annual rate (the "Default
Rate") equal to the lesser of (1) the rate that is two percentage
points (2.0%) in excess of the above-specified interest rate, or (2) the
maximum rate of interest allowed to be charged under applicable law (the "Maximum
Rate"), regardless of whether there has been an acceleration of the
payment of principal as set forth herein.  All such interest shall be paid at
the time of and as a condition precedent to the curing of any such Event of
Default.

            In the event this Note is placed in the hands of
an attorney for collection or for enforcement or protection of the security, or
if Holder incurs any costs incident to the collection of the indebtedness evidenced
hereby or the enforcement or protection of the security, Maker and any
indorsers hereof agree to pay to Holder an amount equal to all such costs,
including without limitation reasonable attorney's fees and all court and other
costs.

            Presentment for payment, demand, protest and
notice of demand, protest and nonpayment are hereby waived by Maker and all
other parties hereto.  No failure to accelerate the indebtedness evidenced
hereby by reason of default hereunder, acceptance of a past-due installment or
other indulgences granted from time to time, shall be construed as a novation
of this Note or as a waiver of such right of acceleration or of the right of
Holder thereafter to insist upon strict compliance with the terms of this Note
or to prevent the exercise of such right of acceleration or any other right
granted hereunder or by applicable laws.  No extension of the time for payment
of the indebtedness evidenced hereby or any installment due hereunder, made by
agreement with any person now or hereafter liable for payment of the
indebtedness evidenced hereby, shall operate to release, discharge, modify,
change or affect the original liability of Maker hereunder or that of any other
person now or hereafter liable for payment of the indebtedness evidenced
hereby, either in whole or in part, unless Holder agrees otherwise in writing. 
This Note may not be changed orally, but only by an agreement in writing signed
by the party against whom enforcement of any waiver, change, modification or
discharge is sought.

            All agreements herein made are expressly limited
so that in no event whatsoever, whether by reason of advancement of proceeds
hereof, acceleration of maturity of the unpaid balance hereof or otherwise,
shall the interest and loan charges agreed to be paid to Holder for the use of
the money advanced or to be advanced hereunder exceed the maximum amounts
collectible under applicable laws in effect from time to time.  If for any
reason whatsoever the interest or loan charges paid or contracted to be paid in
respect of the indebtedness evidenced hereby shall exceed the maximum amounts
collectible under applicable laws in effect from time to time, then, ipso
facto, the obligation to pay such interest and/or loan charges shall be
reduced to the maximum amounts collectible under applicable laws in effect from
time to time, and any amounts collected by Holder that exceed such maximum
amounts shall be applied to the reduction of the principal balance remaining
unpaid hereunder and/or refunded to Maker so that at no time shall the interest
or loan charges paid or payable in respect of the indebtedness evidenced hereby
exceed the maximum amounts permitted from time to time by applicable law.  This
provision shall control every other provision in any and all other agreements
and instruments now existing or hereafter arising between Maker and Holder with
respect to the indebtedness evidenced hereby.

 

 

 

PAGE 2 OF A 3 PAGE NOTE

            This Note is
intended as a contract under and shall be construed and enforceable in
accordance with the laws of the State of Tennessee, without reference to the
conflicts or choice of law principles thereof, except that with respect to the
maximum amount of interest collectable by Holder in respect of the indebtedness
evidenced hereby, the law of the jurisdiction in which Payee's principal place
of business is located shall govern the rights and duties of Maker and Holder
as to such matters.

            IN WITNESS WHEREOF, Maker has executed
this Note, or has caused this Note  to be executed by its duly authorized
officer or other representative, as of the date first above written.

                                                                        MAKER:

                                                                        Home
Solutions of America, Inc.

                                                                        By:_______________________________________

                                                                                    Rick
J. O'Brien

                                                                                    Chief
Financial Officer

 

 

 

 

 

 

PAGE 3 OF A 3 PAGE NOTE

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