Document:

Exhibit 10.1

Exhibit 10.1

UNITED COMMUNITY FINANCIAL CORP. &

THE HOME SAVINGS AND LOAN COMPANY OF YOUNGSTOWN, OHIO

DRAFT

EXECUTIVE INCENTIVE PLAN

ADOPTED: April 28, 2011

The United Community Financial Corp.’s (the “Company”) Executive Incentive Plan (“EIP”)
provides incentive compensation awards to certain executive officers, which at the time of
adoption of the EIP included Patrick W. Bevack, President and CEO of the Company and the Company’s
wholly-owned subsidiary, The Home Savings and Loan Company of Youngstown, Ohio (“Home Savings”),
James R. Reske, Treasurer and Chief Financial Officer of the Company and Senior Vice President,
Chief Financial Officer and Treasurer of Home Savings, Jude J. Nohra, General Counsel and Secretary
of the Company and Senior Vice President, General Counsel and Secretary of Home Savings, Gregory G.
Krontiris, Senior Vice President and Chief Lending Officer of Home Savings and Matthew T. Garrity,
Senior Vice President and Chief Credit Officer of Home Savings. Executive incentive awards are
based upon the actual performance of the Company for the 12 months ended September 30 compared to
the actual performance of the peer group (see below) during the same 12 month period. See the
“Weightings” table below.

The Compensation Committee and the Board of Directors engaged an independent consultant to
assist the Compensation Committee in developing a peer group focused upon the following industry
categories: (i) regional banks, and (ii) thrifts and mortgage finance. Within these industry
groupings, the Committee and consultant considered organizations with
assets between $1.5 billion
and approximately $3.0 billion and organizations limited to those in states contiguous to Ohio
(with the exception of one peer in Illinois). The criteria resulted in a peer group of nineteen
(19) organizations. Of that group, fifteen (15) are within the commercial banking industry group
and four (4) are within the savings institutions industry group.

2011 Peer Group:

	 	 	 
	Community Trust Bancorp, Inc. (CTBI)

	 	MainSource Financial Group, Inc. (MSFG)
	ESB Financial Corporation (ESBF)

	 	Mercantile Bank Corporation (MBWM)
	Farmers Capital Bank Corporation (FFKT)

	 	Metro Bancorp, Inc. (METR)
	First Defiance Financial Corp. (FDEF)

	 	Old Second Bancorp, Inc. (OSBC)
	First Financial Corporation (THFF)

	 	Parkvale Financial Corporation (PVSA)
	First Place Financial Corp. (FPFC)

	 	Peoples Bancorp Inc. (PEBO)
	Independent Bank Corporation (IBCP)

	 	Porter Bancorp, Inc. (PBIB)
	Integra Bank Corporation (IBNK)

	 	S. Y. Bancorp, Inc. (SYBT)
	Lakeland Financial Corporation (LKFN)

	 	Univest Corporation of Pennsylvania (UVSP)
	Macatawa Bank Corporation (MCBC)
	 	 

In order for any awards to be made under the EIP for a calendar year’s performance, the
Company must report positive net income for that calendar year ended December 31, calculated in
accordance with GAAP, but adjusted to exclude the effect of extraordinary items. If this threshold
is met, incentive awards will be calculated based upon the Company’s performance against its peers
in five of the six weighted performance measures. Performance against the peer group is only
measured against five of the six weighted performance measures because performance against budgeted
net income is intrinsic to UCFC. See the “Weightings” table below.

For 2011, the target and maximum incentive awards, respectively, measured as a percentage of
base salary are as follows: Mr. Bevack—50%, 100%; and Messrs. Reske, Krontiris, Nohra and
Garrity—40%, 80%. Once the award under the EIP is calculated, it is paid 60% in cash and 40% in
restricted stock or stock options. The restricted stock or stock option awards will be awarded
under the Amended and
Restated United Community Financial Corp. 2007 Long-Term Incentive Plan and vest equally over
three years, beginning on the first anniversary of the award.

 

 

 

The calculation of the incentive awards under the EIP is as follows. First, it must be
determined where the Company’s actual performance falls in comparison to the peer group for each of
the six performance measures. The comparison is based upon percentiles that correspond to a
threshold level for that performance measure. See the “Threshold Levels” table below.

Threshold Levels:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Growth	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Rate	 	 	Asset Quality	 
	 	 	Overall Profitability	 	 	Core	 	 	 	 	 	NCOs/	 
	 	 	Core	 	 	Core	 	 	Net Income	 	 	Deposit	 	 	Texas	 	 	Average	 
	Level	 	ROAE	 	 	ROAA	 	 	Budget	 	 	Growth	 	 	Ratio	 	 	Loans	 
	1
	 	<25th Pct	 	<25th Pct	 	70% of Budget	 	<25th Pct	 	<25th Pct	 	<25th Pct
	2
	 	25th	 	25th	 	 	75	%	 	25th	 	25th	 	25th
	3
	 	30th	 	30th	 	 	80	%	 	30th	 	30th	 	30th
	4
	 	35th	 	35th	 	 	85	%	 	35th	 	35th	 	35th
	5
	 	40th	 	40th	 	 	95	%	 	40th	 	40th	 	40th
	6
	 	Median	 	Median	 	 	100	%	 	Median	 	Median	 	Median
	7
	 	55th	 	55th	 	 	105	%	 	55th	 	55th	 	55th
	8
	 	60th	 	60th	 	 	115	%	 	60th	 	60th	 	60th
	9
	 	65th	 	65th	 	 	120	%	 	65th	 	65th	 	65th
	10
	 	70th	 	70th	 	 	125	%	 	70th	 	70th	 	70th
	11
	 	>75th Pct	 	>75th Pct	 	 	130	%	 	>75th Pct	 	>75th Pct	 	>75th Pct

Definitions:

	 	•	 	Pct: Percentile Rank within defined Peer Group
	 
	 	•	 	“Core” ROAE and ROAA: GAAP performance excluding extraordinary items;
	 
	 	•	 	Core Deposit Growth: Total Deposits, less CDs > $100,000, brokered deposits
and public deposits;
	 
	 	•	 	Texas Ratio: Nonperforming Assets divided by sum of Tangible Common Equity
plus Loan Loss Reserve; and
	 
	 	•	 	“NCOs”: means Net charge offs.

Then, the threshold level achieved is used to determine the bonus percentage for that
performance measure based upon the executive officer’s position. See the “Bonus Percentages” table
below.

 

 

 

Bonus Percentages as Percent of Base Compensation:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Threshold	 	Pres/CEO	 	 	CFO/SVP’s	 	 	Actual Performance versus	 
	Level	 	Group 1	 	 	Group 2	 	 	Peers	 
	1
	 	 	0.0	%	 	 	0.0	%	 	Below 25th Percentile
	2
	 	 	10.0	%	 	 	8.0	%	 	Above 25th percentile
	3
	 	 	20.0	%	 	 	16.0	%	 	Above 30th percentile
	4
	 	 	30.0	%	 	 	24.0	%	 	Above 35th Percentile
	5
	 	 	40.0	%	 	 	32.0	%	 	Above 40th Percentile
	6
	 	 	50.0	%	 	 	40.0	%	 	At or Above Median
	7
	 	 	60.0	%	 	 	48.0	%	 	Above 55th Percentile
	8
	 	 	70.0	%	 	 	56.0	%	 	Above 60th Percentile
	9
	 	 	80.0	%	 	 	64.0	%	 	Above 65th Percentile
	10
	 	 	90.0	%	 	 	72.0	%	 	Above 70th Percentile
	11
	 	 	100.0	%	 	 	80.0	%	 	At or Above 75th Percentile

The bonus percentage is multiplied by the performance measure’s assigned weighting and by the
executive’s base salary to determine what amount, if any, is awarded for the Company’s actual
performance for that performance measure. The amount earned for each performance measure is added
together to determine the total incentive award under the EIP.

Weightings for Performance Measures:

	 	 	 	 	 
	Profitability	 	Weight	 
	 
	 	 	40.0	%
	ROAE
	 	 	5.0	%
	ROAA
	 	 	25.0	%
	Budget Net Income
	 	 	10.0	%
	 
	 	 	 	 
	Growth
	 	 	10.0	%
	Core Deposit Growth
	 	 	10.0	%
	 
	 	 	 	 
	Asset Quality
	 	 	50.0	%
	Texas Ratio
	 	 	40.0	%
	NCOs/Average Loans
	 	 	10.0	%
	 
	 	 	 	 
	Total Weighting
	 	 	100.0	%

For example, if the Company’s Core ROAE for 2011 falls into the 40th percentile
when compared to its peers, Mr. Bevack’s incentive award for that performance measure would be as
follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Incentive Plan	 	 	 	 	 	Bonus Percentage (based)	 	 	 	 	 	 	 	 	 	 	 	 
	Weighting	 	 	 	 	 	on Threshold Level achieved	 	 	 	 	 	 	Base Salary	 	 	 	 	 
	5.0%
	 	 	X	 	 	 	40	%	 	 	X	 	 	$	350,000.00	 	 	 	= $7,000.00	 

The Plan further provides that a participant in the Plan must be employed with the Company on
the date the award is made; otherwise, the participant is not entitled to any award.

The Board maintains discretion to amend, modify, terminate or otherwise adjust the Plan as
necessary.Exhibit 10.2

Exhibit 10.2

UNITED COMMUNITY FINANCIAL CORP.

&

THE HOME SAVINGS AND LOAN COMPANY OF YOUNGSTOWN, OHIO

STAY BONUS AND RETENTION PLAN

1. Purpose. Effective as of April 28, 2011 (the “Effective Date”), the Boards of
Directors (collectively, the “Board”) of United Community Financial Corp. (“UCFC”) and UCFC’s
wholly owned subsidiary, The Home Savings and Loan Company of Youngstown, Ohio (“Home Savings” and
together with UCFC, the “Company”), hereby adopt this STAY BONUS AND RETENTION PLAN (the “Retention
Plan”) for the purpose of recruiting and retaining qualified
officers and employees of the Company
by providing additional procedures and guidelines for payments of Cash Awards and Equity Awards to
Participants (all as defined herein). Equity Awards will be granted in the form of Restricted
Shares issued under and pursuant to the terms and conditions of the United Community Financial
Corp. Amended and Restated 2007 Long Term Incentive Plan (the “2007 Plan”).

2. Definitions. Capitalized terms used but not defined in this Retention Plan shall
have the meanings given to such terms in the 2007 Plan. To the extent that any term defined herein
conflicts with the definition of such term under the 2007 Plan, the definition in this Retention
Plan shall control, except to the extent such conflict would render any term or provision of the
2007 Plan ineffective or inoperable.

3. Administration.

(a) This Retention Plan shall be administered by the Company’s Compensation Committee
(“Committee”), subject to such terms and conditions as the Committee may prescribe that are not
inconsistent with the Retention Plan.

(b) Subject to the terms and conditions of the Retention Plan and the 2007 Plan, the Committee
shall have the discretion and (subject to subsequent approval by a majority of the independent
members of the Board, as defined under applicable NASDAQ listing rules) exclusive power to:

	 	(i)	 	Make Cash Awards and Equity Awards to
Participants as described herein;
	 
	 	(ii)	 	Determine the terms and conditions with respect
to Cash Awards and/or Equity Awards to the extent not inconsistent with
the provisions of the Retention Plan or the 2007 Plan; and
	 
	 	(iii)	 	Resolve all questions relating to the
administration of the Retention Plan and applicable law.

(c) The interpretation of, and application by, the Committee of any provision of the Retention
Plan shall be final and conclusive. The Committee, in its sole discretion, may establish rules and
guidelines relating to the Retention Plan as it may deem appropriate.

 

 

 

4. Participation.

(a) The Committee shall recommend officers and employees of the Company to be participants in
the Retention Plan at or any time after the Effective Date, including any officers or employees
hired after the Effective Date in accordance with this Section 4(a). The officers and employees
recommended for participation by the Committee shall be approved by at least a majority of the
independent members of the Board (and upon such approval, each such officer and employee shall
become a “Participant,” and collectively shall be the “Participants”). Attached hereto as
Exhibit A is a list of Participants of the Plan as of the Effective Date, which may be
amended from time to time by the Board and the Committee in their sole and absolute discretion.

(b) To be eligible for any Cash Award or Equity Award, each Participant must maintain no less
than a consolidated rating of competent performance of such Participant’s goals and
responsibilities within the Participant’s current job description and other related/required duties
that may be assigned. In addition, each Participant must be actively employed by UCFC or Home
Savings at the time any Cash Award is paid or an Equity Award is granted.

5. Awards.

(a) For purposes of this Retention Plan,

	 	(i)	 	“Cash Award” shall mean any payment of cash by
the Company payable to a Participant in accordance with the terms and
conditions of this Retention Plan.

	 	(ii)	 	“Equity Award” shall mean any Award of
Restricted Shares under the 2007 Plan to a Participant in accordance
with the terms and conditions of this Retention Plan, the 2007 Plan and
the award agreement provided by the Company.

(b) Each eligible Participant shall receive a Cash Award of One Thousand and 00/100 Dollars
($1,000.00) on the first regular pay date occurring in January 2012, subject to all applicable
Federal, state and local payroll taxes.

(c) Each eligible Participant also shall receive a Cash Award and be granted an Equity Award
upon receipt by the Board of Home Savings of official notice that the Order to Cease and Desist,
Order No. FDIC -08-175b, as may be amended from time to time (the “Order”), has been terminated.
For purposes of this Retention Plan, the words “terminated” or “termination” used in connection
with the Order shall mean a termination by the Federal Deposit Insurance Corporation (the “FDIC”)
and the Ohio Division of Financial Institutions (“ODFI”), or either of such regulatory authority’s
successors or assigns, of the Order, which Order is not replaced, amended or modified in such a
manner as to be considered terminated but replaced with a new order or agreement.

 

2

 

(d) The combined award described above shall be based upon a specified percentage of each
Participant’s base salary in effect at the time the Order has been terminated, which percentage
shall be determined by the Board and set forth in Exhibit A attached hereto,
and as may be amended from time to time by the Board and the Committee in their sole and
absolute discretion.

	 	(i)	 	The Cash Award shall equal fifty percent (50%)
of the combined award and will be paid in a single lump sum payment
following receipt of the notice of termination of the Order, in
accordance with the Company’s regular pay practices, but in no event
more than thirty (30) days following receipt of such notice. Payment
of the Cash Award shall be subject to all applicable Federal, state and
local payroll taxes.

	 	(ii)	 	The Equity Award shall consist of a number of
Restricted Shares equal to fifty percent (50%) of the combined award
divided by the Fair Market Value of a Common Share on the Grant Date
(defined below), rounded down to the nearest whole Common Share.
Fractional Common Shares shall not be issued, so any portion of the
Equity Award that is not converted to Restricted Shares on a Grant Date
shall be paid to the Participant in cash as part of the Cash Award.

(e) For purposes of this Retention Plan, the “Grant Date” of the Equity Award shall be the
date upon which the Compensation Committee and a majority of the independent members of the Board
meet and formally approve the issuance of Restricted Shares pursuant to the Retention Plan. The
Compensation Committee and the Board shall use their best efforts to hold a meeting on the date
notice of termination of the Order is received by the Board or as soon thereafter as practicable.

(f) Restricted Shares awarded pursuant to the Retention Plan shall be evidenced by an award
agreement containing such terms and conditions as the Committee may prescribe and that are not
inconsistent with the terms of the 2007 Plan or the Retention Plan; provided, however, that no
Restricted Shares may vest prior to the first anniversary of the Grant Date except as specifically
set forth in the 2007 Plan or as provided herein. For purposes of applying Section 13.3 of the
2007 Plan to any Equity Award, a Participant’s “Retirement” shall mean the Participant’s Separation
from Service as provided under 2.1(bb) of the 2007 Plan.

(g) Restricted Shares that vest shall be settled by the Company as soon as reasonably
practicable. In accordance with the terms and conditions of the 2007 Plan, in the case of Equity
Awards paid in Restricted Shares, the Company may withhold Common Shares otherwise issuable upon
exercise or settlement of such Equity Award in order to satisfy withholding obligations, unless
otherwise instructed by the Participant or unless the Committee determines otherwise at the time of
Grant.

 

3

 

(h) In the event that the Company terminates a Participant’s employment for cause prior to the
date upon which a Cash Award is actually paid to a Participant or a Participant’s Equity Award has
vested, the Participant shall forfeit all his or her rights, title or interest in any such Cash or
Equity award, and the Participant shall not be entitled to receive all or any part of the Cash or
Equity Award. When used in this Retention Plan, “cause” means (A) the Participant’s continued
intentional failure or refusal to perform substantially the Participant’s
assigned duties (other than as a result of total or partial incapacity due to physical or
mental illness) for a period of ten days following written notice by the Company to the Executive
of such failure; (B) the Participant’s engagement in willful misconduct, including without
limitation, fraud, embezzlement, theft or dishonesty in the course of Participant’s employment with
the Company; (C) the Participant’s conviction of, or plea of guilty or nolo contendere to a felony
or a crime other than a felony, which felony or crime involves moral turpitude or a breach of trust
or fiduciary duty owed to the Company or any of its affiliates; (D) the Participant’s disclosure of
trade secrets or material, non-public confidential information of the Company or any of its
affiliates in violation of the Company’s or its affiliates’ policies that applies to the Executive
or any agreement with the Company or any of its Affiliates in respect of confidentiality,
nondisclosure, non-competition or otherwise; or (E) with respect to any Participant not otherwise
employed by the Company pursuant to an executed employment agreement, any other termination for
cause pursuant to the Company’s policies, procedures or employment practices, where such
termination is not otherwise prohibited by applicable law or regulation.

6. Plan as Controlling. Except as provided otherwise herein, any Equity Award granted
to a Participant under the Retention Plan shall be subject to the terms and conditions of the 2007
Plan, including such additional terms and conditions as the Committee may impose that are not
inconsistent with the 2007 Plan or the Retention Plan.

7. Amendment and Termination. Subject to any limitations contained in the 2007 Plan,
the Board may, at any time and from time to time, amend, modify or suspend the Retention Plan and
all rules and guidelines hereunder; provided, however, that no such amendment, modification,
suspension or termination shall impair or adversely alter any Cash Award or Equity Award previously
granted under the Retention Plan without the consent of the affected Participant.

8. Term of Retention Plan. The Retention Plan shall terminate on the earlier of the
date of termination of the 2007 Plan or after all Equity Awards issued hereunder have vested and
been settled by the Company, and no Equity Award may be granted pursuant to the Retention Plan
thereafter; provided, however, that neither the termination of the 2007 Plan nor the termination of
the Retention Plan shall affect the vesting of any Equity Award outstanding upon such termination
or the right of a Participant to receive Common Shares upon vesting of an Equity Award.

9. Regulatory Matters. In the event and to the extent the payment of any Cash Award
or grant of any Equity Award is subject to regulatory approval and/or may be nullified or rendered
inoperative or inapplicable by operation of applicable Federal or state law, this Retention Plan
shall be effective only to the extent permissible under such regulatory and/or other legal
requirements, but to the fullest extent as may be permissible thereunder.

 

4

 

10. Miscellaneous

(a) Except as otherwise specifically provided in the Retention Plan or as set forth in an
award agreement (and to the extent not otherwise inconsistent with the 2007 Plan), during the
vesting period and after the certificates for the Restricted Shares have been issued, the
Participant shall be entitled to all rights of a shareholder of the Company, including the right to
vote and the right to receive dividends, with respect to the Restricted Shares subject to this
Retention Plan. Subject to applicable withholding requirements, if any, dividends on the
Restricted Shares shall be paid to the Participant when earned and payable.

(b) An Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in
exchange for consideration.

(c) Nothing contained herein shall be deemed to restrict or prohibit any employee from making
a Section 83(b) election under the Code.

(d) Except as otherwise explicitly stated herein, the adoption of the Retention Plan by the
Board shall not be construed as amending, modifying or rescinding the 2007 Plan but is intended to
serve as a framework for the Board and the Committee with respect to grants to Participants.

(e) Nothing contained in the Retention Plan or in an award agreement granted hereunder shall
confer upon any Participant any right to continue serving as an employee of the Company or
interfere in any way with the right of UCFC or Home Savings to terminate the Participant’s service
as an employee at any time.

(f) An award agreement may provide that Common Shares issuable upon settlement of an Equity
Award may be subject to such restrictions, including, without limitation, restrictions as to
transferability as the Committee may determine at the time such Equity Award is granted.

(g) The Retention Plan and all actions taken hereunder shall be governed by and construed in
accordance with the laws of the State of Ohio, except to the extent federal law shall be deemed
applicable. All disputes and matters arising under, in connection with or incident to this
Agreement shall be litigated, if at all, in and before any Federal court sitting within the
Northern District of Ohio or any State court sitting in Mahoning County, Ohio, to the exclusion of
the courts of any other state or county.

 

5

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