Document:

EX-10.4

 Exhibit 10.4 

OFFICE DEPOT, INC. 

CORPORATE ANNUAL BONUS PLAN 

Section 1 
 Purpose
and Effective Date 
 The purpose of the Plan is to provide annual incentive compensation to select employees of the Employer Group who make substantial
contributions to the success of the Company’s business, to provide a means for eligible employees to participate in this success, and to assist in attracting and retaining the highest quality individuals to key positions. The Plan shall apply
to annual incentive awards granted on or after June 19, 2015. 
 Section 2 

Definitions 
 The following terms, when
written in this Plan with initial capital letters, shall have the respective meanings set forth below (unless the context indicates otherwise). 
  

	(a)	“Award” means the amount authorized for payment to a Participant in connection with the achievement of one or more Performance Targets or upon satisfaction of such other conditions that the Committee may
establish. An Award may be either a Qualified Performance-Based Award or a General Award. 

  

	(b)	“Board” means the Board of Directors of the Company. 

  

	(c)	“Code” means the Internal Revenue Code of 1986, as now in effect or as hereafter amended from time to time. All citations to Sections of the Code are to such Sections as they are currently designated and any
reference to such Sections shall include the provisions thereof as they may from time to time be amended or renumbered as well as any successor provisions and any applicable regulations. 

 

	(d)	“Committee” means the Compensation Committee of the Board, as the same from time to time may be constituted, or any other committee designated by the Board to have responsibility for administering all or a
part of this Plan. 

  

	(e)	“Company” means Office Depot, Inc. and its successors and assigns. 

  

	(f)	“Employee” means any employee of any member of the Employer Group. 

  

	(g)	“Employer” means the member of the Employer Group by whom the Participant is employed at the time in question. 

  

	(h)	“Employer Group” means the Company and its direct and indirect subsidiaries. 

  

	(i)	“Exception” means the performance-based compensation exception to the deductibility limitation of Code Section 162(m). 

 

	(j)	“Exchange Act” means the Securities Exchange Act of 1934, as now in effect or as hereafter amended from time to time. All citations to Sections of the Exchange Act are to such Sections as they are currently
designated and any reference to such Sections shall include the provisions thereof as they may from time to time be amended or renumbered as well as any successor provisions and any applicable regulations. 

 

	(k)	“General Award” means an Award that is not a Qualified Performance-Based Award. 

  

	(l)	“Measurement Period” means, generally, the Company’s fiscal year. However, the Committee may, at the time a Performance Target is established, specify a different period over which performance shall be
measured against such Performance Target. 

  
 1 

	(m)	“Negative Discretion” means the absolute and unrestricted discretion that the Committee may exercise to reduce, but not increase, the amount of an Award that otherwise would be payable to a Participant in
connection with the attainment of a Performance Target under an Award for any reason, including but not limited to the Committee’s determination that the Performance Target has become an inappropriate measure of achievement, a change in the
employment status, position or duties of the Participant, or unsatisfactory performance of the Participant. It is expressly permissible to reduce the amount otherwise payable to zero. 

 

	(n)	“Participant” means any Employee whom the Committee designates as eligible for an Award under Section 3. 

  

	(o)	“Performance Target” means one or more specified performance goals that are used in determining (i) whether to make an Award to a Participant, or (ii) the amount of any Award, as described in
Section 5. 

  

	(p)	“Plan” means this Office Depot, Inc. Corporate Annual Bonus Plan, as it may be amended from time to time. 

  

	(q)	“Qualified Performance-Based Award” means an Award (or a specified portion of an Award) to a Participant that is intended to satisfy the requirements of the Exception. 

 

	(r)	“Section 409A” means Code Section 409A and the Treasury rulings and regulations thereunder. 

  

	(s)	“Treasury” means the United States Department of the Treasury. 

 Section 3

 Eligibility 
 The Committee shall
determine, from time to time, those Employees who are eligible to be granted Awards for a Measurement Period pursuant to Section 5 below, thereby causing them to become Participants. The Committee shall determine whether an Employee is selected
as a Participant separately for each Measurement Period. Accordingly, an Employee who is a Participant for one Measurement Period may be excluded from Participant status with respect to any other Measurement Period. 

Section 4 

Administration of Plan 
  

	(a)	This Plan shall be administered by the Committee. Each member of the Committee shall be both a member of the Board and shall satisfy the “outside director” (or any similar successor requirements) of Code
Section 162(m). The Committee shall have full power, discretion and authority to (i) construe and interpret the Plan (including any part thereof and the terms employed in the Plan), and (ii) make, amend and rescind such rules and
regulations for the administration of the Plan as it deems advisable. Any determination by the Committee in administering, interpreting or construing the Plan in accordance with this Section shall be final, conclusive and binding upon all persons
for all purposes. The Committee may delegate its responsibilities under the Plan to such individuals, including members of management, as the Committee may deem appropriate, provided that the Committee shall not delegate its responsibilities with
respect to an opportunity to receive a Qualified Performance-Based Award to the extent such delegation would cause such Award to fail to satisfy the requirements of the Exception. 

 

	(b)	The Committee’s decisions and determinations under the Plan, and with respect to any Award opportunity or Award, need not be uniform and may be made selectively among Award opportunities, Awards or Participants,
whether or not such opportunities or Awards are similar or whether the Participants are similarly situated. 

  
 2 

	(c)	The Committee may employ such legal counsel, including, without limitation, independent legal counsel and counsel regularly employed by the Company, consultants and agents as the Committee may deem appropriate for the
administration of the Plan and may rely upon any opinion received from any such counsel or consultant and any computations received from any such consultant or agent. 

 

	(d)	No member or former member of the Committee or the Board or person to whom the Committee has delegated responsibility under the Plan shall be liable for any action or determination made in good faith with respect to the
Plan or any Award granted under it. The Company shall indemnify and hold harmless each member and former member of the Committee and the Board against all cost or expense (including counsel fees and expenses) or liability (including any sum paid in
settlement of a claim with the approval of the Board) arising out of any act or omission to act in connection with the Plan, unless arising out of such member’s or former member’s own willful misconduct, fraud, bad faith or as expressly
prohibited by statute. Such indemnification shall be in addition (without duplication) to any rights to indemnification or insurance the member or former member may have as a director or under the by-laws of the Company or otherwise.

 Section 5 

Grant and Payment of Award 
  

	(a)	The Committee may assign to an individual who is a Participant for a Measurement Period an Award opportunity that makes it possible for the Participant to receive, upon attainment of any applicable Performance Target
and subject to Negative Discretion, an incentive Award for that Measurement Period. The Committee may establish different Award opportunities for different Participants or groups of Participants. 

 

	(b)	If the Committee intends to assign an opportunity to receive a Qualified Performance-Based Award, the Committee shall designate the Award opportunity as such in writing at the time the Award opportunity is established.
Any such designation is irrevocable. To the extent the Committee does not designate an Award opportunity as an opportunity to receive a Qualified Performance-Based Award at the time the Award opportunity is established, it shall be an opportunity to
receive a General Award. 

  

	(c)	The maximum aggregate dollar amount of compensation that may be payable to an individual Participant with respect to one or more Qualified Performance-Based Awards granted in any single fiscal year of the Company and
having Measurement Period(s) of one fiscal year or less shall be $5 million; provided, however, that if one or more Qualified Performance-Based Awards granted in any single fiscal year of the Company have Measurement Period(s) that span more than
one fiscal year of the Company, then the maximum aggregate dollar amount of compensation that may be payable to the Participant with respect to such Qualified Performance-Based Awards shall be $5 million multiplied by the total number of whole or
partial fiscal years of the Company spanned by such Measurement Periods. 

  

	(d)	 If the Committee assigns a Participant an opportunity to receive a Qualified Performance-Based Award, the Committee shall establish at least one
Performance Target that is intended to permit the Award to satisfy the Exception with respect to the Qualified Performance-Based Award and shall determine the maximum dollar amount of compensation payable under the Qualified Performance-Based Award
for attainment of such Performance Target. The Committee may also establish lower dollar amounts of compensation payable for lower levels of achievement with respect to the Performance Target and may also establish one or more threshold levels of
achievement with respect to the Performance Target in order for any compensation to be paid pursuant to the Qualified Performance-Based Award. If none of the threshold levels of achievement with respect to the Performance Target intended to permit
the Award to satisfy the Exception are attained, no compensation may be paid pursuant to the Qualified Performance-Based Award. The Committee shall establish in writing the Performance Target intended to permit the Award to satisfy the Exception
within the first 90 days of the Measurement Period and at a time when the outcome of the Performance Target is 

  
 3 

	 	
substantially uncertain. Notwithstanding the 90-day deadline specified in the prior sentence, in the event that a Measurement Period (or a Participant’s service during a Measurement Period)
is expected to be less than 12 months, the Committee shall establish in writing the Performance Target intended to permit the Award to satisfy the Exception on or before the date when 25% of the Measurement Period (or a Participant’s service
during the Measurement Period), as each is scheduled in good faith at the time the goal is established, has elapsed. In addition to specifying the Performance Target intended to permit the Award to satisfy the Exception, the Committee may specify
one or more additional Performance Targets, or such other conditions and criteria as it chooses, to guide the exercise of its Negative Discretion and thereby determine the final amount payable to the Participant under the Qualified Performance-Based
Award. 

  

	(e)	In the case of a Qualified Performance-Based Award, the Performance Target intended to permit the Award to satisfy the Exception shall be stated as levels of, or growth or changes in, or other objective specification of
performance with respect to one or more of the following performance criteria: earnings, earnings before income taxes; earnings before interest and taxes (EBIT); earnings before interest, taxes, depreciation and amortization (EBITDA); earnings
before interest, taxes, depreciation, amortization and rent (EBITDAR); gross margin; operating margin; profit margin; market value added; market share; revenue; revenue growth; return measures (including but not limited to return on equity, return
on shareholders’ equity, return on investment, return on assets, return on net assets, return on capital, return on sales, and return on invested capital); total shareholder return; profit; economic profit; capitalized economic profit;
operating profit; after-tax profit; net operating profit after tax (NOPAT); pre-tax profit; cash; cash flow measures (including but not limited to operating cash flow; free cash flow; cash flow return; cash flow per share; and free cash flow per
share); earnings per share (EPS); consolidated pre-tax earnings; net earnings; operating earnings; segment income; economic value added; net income; net income from continuing operations available to common shareholders excluding special items;
operating income; adjusted operating income; assets; sales; net sales; sales volume; sales growth; net sales growth; comparable store sales; sales per square foot; inventory turnover; inventory turnover ratio; productivity ratios; debt/capital
ratio; return on total capital; cost; unit cost; cost control; expense targets or ratios, charge-off levels; operating efficiency; operating expenses; customer satisfaction; improvement in or attainment of expense levels; working capital; working
capital targets; improvement in or attainment of working capital levels; debt; debt to equity ratio; debt reduction; capital targets; capital expenditures; price/earnings growth ratio; acquisitions, dispositions, projects or other specific events,
transactions or strategic milestones; the Company’s common stock price (and stock price appreciation, either in absolute terms or in relationship to the appreciation among members of a peer group determined by the Committee); and book value per
share. All criteria may be measured on a Generally Accepted Accounting Principles (“GAAP”) basis, adjusted GAAP basis, or non-GAAP basis. 

  

	(f)	If the Committee assigns a Participant an opportunity to receive a General Award, the amount of compensation payable under the General Award may be stated as a dollar amount or as a percentage of the Participant’s
base compensation. The Committee may provide for a threshold level of performance below which no amount of compensation will be paid and a maximum level of performance above which no additional amount will be paid, and it may provide for the payment
of differing amounts of compensation for different levels of performance. In addition, nothing in the Plan shall be construed as limiting the Committee’s discretion to provide a General Award to a Participant without first assigning an Award
opportunity. 

  

	(g)	In the case of a General Award, and when selecting targets to guide the exercise of Negative Discretion with respect to a Qualified Performance-Based Award, the Committee may establish one or more Performance Targets
that are based on categories of performance that are listed in or are different than those set forth in Section 5(e). 

  

	(h)	 If the Committee makes the opportunity to receive an Award subject to a Performance Target, the Committee shall adopt or confirm a written definition
of that Performance Target at the time the Performance Target is established, provided that the Committee shall have the discretion to forgo such written definition in connection with a General Award. The Performance Target for an Award may be
described in terms of Company-wide objectives or objectives that are related to a specific division, 

  
 4 

	 	
subsidiary, Employer, department, region, or function in which the Participant is employed or as some combination of these (as alternatives or otherwise). A Performance Target may be measured on
an absolute basis or relative to a pre-established target, results for a previous year, the performance of other corporations, or a stock market or other index. If the Committee specifies more than one individual performance goal in defining a
Performance Target, the Committee shall also specify, in writing, whether one, all or some other number of such goals must be attained in order for the Performance Target to be met. 

 

	(i)	For each Award that has been made subject to a Performance Target, within 90 days following the end of each Measurement Period, the Committee shall determine whether the Performance Target for such Measurement Period
has been satisfied. A Qualified Performance-Based Award may not be paid out unless and until the Committee has made a final written certification that the Performance Target intended to permit such Award to satisfy the Exception has, in fact, been
satisfied. This may be accomplished through approved minutes of the Committee meeting (or by some other form of written certification). In addition, prior to paying out an Award, the Committee shall complete the exercise of its Negative Discretion
or shall decide not to apply Negative Discretion. In this regard, the Committee shall determine whether any Performance Target or other conditions or criteria specified to guide the exercise of its Negative Discretion were satisfied and thereby make
a final determination with respect to an Award opportunity. Thereafter, the Company shall pay any compensation payable in respect of Awards to Participants in cash or in shares of Common Stock of the Company pursuant to a stockholder-approved
compensation plan maintained by the Company or in a combination thereof, as determined by the Committee in its discretion, as soon as reasonably practicable, but no later than the fifteenth day of the third month that begins after the month
containing the end of the Measurement Period; provided, however, that the Committee may permit the deferral of such compensation under a deferred compensation plan of the Employer. If a Performance Target applicable to the opportunity to receive a
General Award (but not a Qualified Performance-Based Award) for a Measurement Period is not achieved, the Committee in its sole discretion may pay out all or a portion of that General Award based on such criteria as the Committee deems appropriate,
including without limitation individual performance, Company-wide performance or the performance of the specific division, subsidiary, Employer, department, region, or function employing the Participant. 

 

	(j)	 In determining whether any Performance Target has been satisfied, the Committee may exclude any or all extraordinary items and other items that are
unusual or non-recurring, including but not limited to (i) charges, costs, benefits, gains or income associated with reorganizations or restructurings of the Employer Group, discontinued operations, goodwill, other intangible assets, long-lived
assets (non-cash), real estate strategy (e.g., costs related to lease terminations or facility closure obligations), litigation or the resolution of litigation (e.g., attorneys’ fees, settlements or judgments), or currency or commodity
fluctuations; and (ii) the effects of changes in applicable laws, regulations or accounting principles. In addition, the Committee may adjust any Performance Target for a Measurement Period as it deems equitable to recognize unusual or
non-recurring events affecting the Employer Group, changes in tax laws or regulations or accounting procedures, mergers, acquisitions and divestitures, or any other factors as the Committee may determine (including adjustments that would result in
the Company’s payment of non-deductible compensation under a General Award). In the case of Qualified Performance-Based Awards, such exclusions and adjustments may only apply to the extent the Committee specifies in writing (not later than the
time Performance Targets are required to be established) which exclusions and adjustments the Committee will apply to determine whether a Performance Target has been satisfied, as well as an objective manner for applying them, or to the extent that
the Committee determines (if such determination is memorialized in writing) that they may apply without adversely affecting the Award’s status as a Qualified Performance-Based Award. To the extent that a Performance Target is based on the price
of the Company’s common stock, then in the event of any stock dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, any merger, consolidation, spin-off, reorganization, partial
or complete liquidation or other distribution of assets (other than a normal cash dividend), issuance of rights or warrants to purchase securities or any other corporate transaction having an effect similar to any of the foregoing, the Committee
shall make or provide for such adjustments in such Performance Target as the Committee in its sole discretion may in good faith determine to be equitably required in order to prevent

  
 5 

	 	
dilution or enlargement of the rights of Participants. In the case of a Qualified Performance-Based Award, the Committee’s adjustments as described in the preceding sentence shall apply only
to the extent the Committee determines that such adjustments will not adversely affect the Award’s status as a Qualified Performance-Based Award. 

  

	(k)	The Committee may establish rules and procedures for cases where employment begins after the start of a Measurement Period, or ends before payment of an Award, to the extent they are consistent with the following:

  

	 	(i)	Generally, if a Participant terminates employment with the Company prior to the last day of a Measurement Period, any Award opportunity assigned to the Participant for the Measurement Period shall be cancelled and any
Award granted to the Participant in respect of that Measurement Period shall be forfeited. However, the Committee may, in its sole discretion and in such manner as it may from time to time prescribe (including, but not by way of limitation, in
granting an Award or in an individual employment agreement, severance plan or individual severance agreement), provide that a Participant shall be eligible for a full or prorated Award in the event of the Participant’s termination of employment
in certain circumstances (including, but not limited to, death, disability, retirement or reduction in force). In the Committee’s sole discretion, any such full or prorated Award may be paid under the provisions of this paragraph (i) prior
to when the Performance Target is certified (or without regard to whether it is certified), provided that an opportunity to receive a Qualified Performance-Based Award may result in payment of the Award prior to or without certification of the
Performance Target only in connection with death, disability, or change in control of the Company. 

  

	 	(ii)	In the case of a Participant who is hired by an Employer after the beginning of a Measurement Period, the Committee may in its discretion designate such newly hired Participant as a Participant for that Measurement
Period and may specify that such newly hired Participant’s Award shall be prorated based on the period of time the Participant was an Employee or Participant during the Measurement Period compared to the total duration of the Measurement
Period. A newly hired Participant may be granted a Qualified Performance-Based Award only to the extent the Participant’s period of service during the Measurement Period would not cause the Performance Target for such Award to be established
later than permitted by Section 5(d). 

  

	 	(iii)	A Participant who is promoted, transferred or otherwise changes positions and who becomes or ceases to be a Participant during the Measurement Period may, at the discretion of the Committee and under such rules as the
Committee may from time to time prescribe, be eligible for a prorated Award based on the period of time the individual was a Participant during the Measurement Period compared to the total duration of the Measurement Period. If the individual is a
Participant for the entire Measurement Period but has a promotion, demotion, or other job change during the Measurement Period that changes the Participant’s Award opportunity for the Measurement Period, the Participant’s Award will be
prorated based on the number of days worked in each position, the eligible earnings in each position, and the Award opportunity applicable to each position. Notwithstanding the foregoing, a promotion or job change cannot (A) increase the amount
payable under a Qualified Performance-Based Award, or (B) cause the Performance Target for a Qualified Performance-Based Award to be established after the time required by Section 5(d). 

 

	 	(iv)	A Participant who is on a leave of absence for more than 90 days (consecutive or not) during the Measurement Period may, at the discretion of the Committee and under such rules as the Committee may from time to time
prescribe, be eligible for a prorated Award based on the number of days worked during the Measurement Period pursuant to such rules as the Committee may establish. However, in the case of a Qualified Performance-Based Award, this may not result in
payment prior to certification of (or without regard to) achievement of the Performance Target that is intended to permit such Award to satisfy the Exception. 

  

	(l)	 In the event of a change in control of the Company, outstanding Awards will be treated as specified in the Office Depot, Inc. Executive Change in
Control Severance Plan, as applicable, with respect to Participants 

  
 6 

	 	
who participate in such plan at the time of the change in control. For other Participants, the Committee may, in its sole discretion and in such manner as it may from time to time prescribe
(including, but not by way of limitation, in granting an Award or in an individual employment agreement, severance plan or individual severance agreement), provide that a Participant shall be eligible for a full or prorated Award in the event of a
change in control of the Company. In the Committee’s sole discretion, any such full or prorated Award may be paid under the provisions of this Section 5(l) prior to when the Performance Target is certified (or without regard to whether it
is certified). 

  

	(m)	Nothing contained in this Section 5 or elsewhere in this Plan shall eliminate, impair or otherwise affect the right of the Employer to terminate or change the employment of any Participant at any time, and a
person’s eligibility for an Award shall not be deemed to, and shall not, result in any agreement, expressed or implied, by the Employer to retain the person eligible in any specific position or in its employ for the duration of the Measurement
Period applicable to such Award opportunity (or until the payment date of an Award, even if an Award is granted). 

Section 6 

Miscellaneous 
  

	(a)	Neither an Award nor any other right or benefit under this Plan shall be subject to anticipation, alienation, sale, assignment, pledge, encumbrance or charge, and any attempt to anticipate, alienate, sell, assign,
pledge, encumber or charge the same shall be void and shall not be recognized or given effect by the Company. 

  

	(b)	The Plan shall at all times be an unfunded payroll practice and no provision shall at any time be made with respect to segregating assets of the Company for payment of any Award. No Participant or any other person shall
have any interest in any particular assets of the Company by reason of the right to receive an Award under the Plan and any such Participant or any other person shall have only the rights of a general unsecured creditor of the Company.

  

	(c)	The Employer Group shall withhold the amount of applicable Federal, State, or local withholding taxes of any kind required by law to be withheld from payment of each Award. 

 

	(d)	The Performance Targets and Awards under the Plan will be administered in a manner intended to qualify payments of Qualified Performance-Based Awards for the Exception, except when the Committee determines such
compliance is not necessary or desirable. In the event that changes are made to Code Section 162(m) that permit greater flexibility with respect to Qualified Performance-Based Awards made under the Plan, the Committee may, subject to the
requirements of Section 8, made any adjustment it deems appropriate. 

  

	(e)	 The Company intends for all payments under this Plan to be exempt from Code Section 409A as “short-term deferrals” pursuant to Treasury
regulation section 1.409A-1(b)(4). However, to the extent that any payment under this Plan does not qualify for exemption from Section 409A, the Company intends for such payment to comply with the requirements of Section 409A. Accordingly,
to the extent applicable, this Plan shall at all times be interpreted and operated in accordance with the requirements of Section 409A. The Company shall take action, or refrain from taking any action, with respect to the payments and benefits
under this Plan that is reasonably necessary to comply with Section 409A. To the extent necessary to avoid the imposition of an additional tax under Section 409A, if the Plan provides for the payment of any deferred compensation payable or
deliverable under this Plan to a Participant on account of the Participant’s termination of employment, the Plan shall be deemed to: (i) require payment upon the Participant’s “separation from service” within the meaning of
Section 409A, and (ii) to delay payment until the earliest date of payment that will result in compliance with the rules of Code Section 409A(a)(2)(B)(i) (regarding the required six-month delay for payments to specified employees upon
separation from service within the meaning of 

  
 7 

	 	
Section 409A). In the event that any payment under the Plan shall be deemed not to comply with Section 409A, then neither the Company, the Board, the Committee nor its or their
designees or agents, nor any of their affiliates, assigns or successors (each a “protected party”) shall be liable to any Participant or other person for actions, inactions, decisions, indecisions or any other role in relation to the Plan
by a protected party if made or undertaken in good faith or in reliance on the advice of counsel (who may be counsel for the Company), or made or undertaken by someone other than a protected party. 

 

	(f)	Any person who believes he or she is being denied any benefit or right under the Plan may file a written claim with the Committee. Any claim must be delivered to the Committee within 90 days of the later of the end of
the Measurement Period to which the claim relates or the specific event giving rise to the claim. Untimely claims will not be processed and shall be deemed denied. The Committee, or its designated agent, will notify the claimant of its decision in
writing as soon as administratively practicable. Claims not responded to by the Committee in writing within 90 days of the date the written claim is delivered to the Committee shall be deemed denied. The Committee’s decision is final and
conclusive and binding on all persons. No lawsuit relating to the Plan may be filed before a written claim is filed with the Committee and is denied or deemed denied and any lawsuit must be filed within one year of such denial or deemed denial or be
forever barred. 

  

	(g)	Payments of Awards shall not be treated as compensation for purposes of any other compensation or benefit plan, program or arrangement of the Employer Group, unless either (i) such other plan’s definition of
compensation expressly includes payments made pursuant the Plan, or (ii) the Board or the Committee determines otherwise. 

  

	(h)	Awards under the Plan and amounts paid pursuant to Awards under the Plan shall be subject to the terms of the Company’s recoupment (claw-back) policy as in effect from time to time. 

Section 7 

Amendment, Suspension or Termination 
 The
Committee may, at any time, amend, suspend or terminate the Plan. No amendments shall become effective unless approved by affirmative vote of the Company’s shareholders if such approval is necessary for the continued validity of the Plan or if
the failure to obtain such approval would adversely affect the compliance of the Plan with Code Section 162(m) or any other rule or regulation. No amendment or termination shall, when taken as a whole, adversely affect the compliance of any
Qualified Performance-Based Award with the Exception, unless the written documents related to such action expressly state the intent to do so. 

Section 8 

Governing Law 
 The Plan shall be
construed and administered in accordance with the laws of the State of Florida. 
 Section 9 

Shareholder Approval 
 The Plan has been
adopted by the Committee on April 27, 2015 subject to the approval of the Company’s shareholders at the 2015 annual shareholders meeting. 

  
 8EXHIBIT 10.1

CHANGE IN CONTROL AGREEMENT

 

THIS CHANGE IN CONTROL
AGREEMENT (the “Agreement”) is made by MACATAWA BANK CORPORATION, a Michigan corporation (the “Corporation”),
and RONALD L. HAAN (“Executive”) as of this June 22, 2015. Any reference to the Corporation shall jointly include the
Bank and any Affiliate, each as defined below.

WHEREAS, the Corporation
operates a wholly owned commercial banking subsidiary, Macatawa Bank (the “Bank”; reference to the "Corporation"
in this Agreement includes the Bank unless otherwise indicated by context), which is engaged in the general business of banking;
and

WHEREAS, the Board
of Directors of the Corporation believes that the future services of Executive will be of great value to the Corporation and Bank;
and

WHEREAS, the Board
of Directors of the Corporation has determined that it is in the best interests of the Corporation and its shareholders to secure
Executive’s continued services and to ensure Executive’s continued dedication and objectivity in the event of any threat
or occurrence of, or negotiation or other action that could lead to, or create the possibility of, a Change in Control of the Corporation,
without concern as to whether Executive might be hindered or distracted by personal uncertainties and risks created by any such
possible Change in Control, and to encourage Executive’s full attention and dedication to the Corporation and the Bank, the
Board of Directors has authorized the Corporation to enter into this Agreement.

NOW, THEREFORE, the parties
agree as follows.

1.     Effective Date and Term. This Agreement will take effect as of the date first written
above. This Agreement shall remain in effect until the end of the calendar year following that in which either party gives
the other notice of intention to terminate this Agreement; provided, however, that:

(a)     except for termination
as provided above pursuant to notice from Executive to the Corporation, this Agreement will not terminate during an Active Change
in Control Proposal Period, even if the Corporation has given Executive notice of intention to terminate this Agreement;

(b)     except for termination
as provided above pursuant to notice from Executive to the Corporation, upon the occurrence of a Change in Control the term of
this Agreement shall automatically be extended until the second anniversary of the effective date of the Change in Control, even
if the Corporation has given Executive notice of intention to terminate this Agreement; and

(c)     termination of this
Agreement shall not affect the obligations of either party accrued before termination of this Agreement, Executive’s obligations
under Section 5, 6 or 7, or the obligations of the parties under Section 12 or 14.

    	 

    	 

    

2.     Change in Control Severance
Payment. The Corporation will make the payments provided for in this Section 2 (the “Severance Pay”) if Executive’s
employment is terminated during the term of this Agreement in a manner that constitutes a “separation from service”
as that term is defined by Section 409A of the Internal Revenue Code (the “Code”) due to: (A) Executive terminating
employment for Good Reason, or (B) the Corporation terminating Executive’s employment for any reason other than death, Permanent
Disability or Cause, and, in the case of either (A) or (B), such termination of employment occurs either (i) within twenty-four
months after the date of a Change in Control or (ii) within six months before the date of a Change in Control.

(a)     Amount
and Payment of Cash Severance. The Corporation will make a cash payment (the “Cash Payment”) to Executive in an
amount equal to the sum of (i) two times Executive’s Average Compensation and (ii) Executive’s target annual bonus,
if any, for the year in which employment terminates (with such calculations to be made as though the target level has been achieved
for each performance goal), prorated by multiplying Executive’s target annual bonus by the number of days in the year completed
through the date of Executive’s termination of employment divided by 365. The Cash Payment shall be paid to Executive in
a single lump sum within sixty days after termination of employment; provided, however, that if the sixty day period overlaps two
calendar years that the payment will be made in the later calendar year. If Executive dies after becoming entitled to the Cash
Payment but before it has been paid, the Cash Payment will be made to Executive’s designated beneficiary (or Executive’s
estate if Executive fails to designate a beneficiary).

(b)     Health
Coverage Payment. The Corporation will make a cash payment (the "Health Coverage Payment") to Executive equal to
24 times the Corporation’s monthly pre-tax cost of contribution towards Executive’s then current employee and dependent
health, prescription drug and dental coverage. If Executive is not enrolled in the Corporation’s health, prescription drug
and dental plans, then the monthly amount will be equal to the Corporation’s contribution towards family coverage for such
plans determined at the time employment terminates. Although the right to payment under this paragraph is based on the Corporation’s
health, prescription drug and dental plan at the time employment terminates and is intended to fund payment for health coverage,
the Health Coverage Payment is not required to be used for health coverage and Executive may use the Health Coverage Payment for
any purpose. The Health Coverage Payment shall be paid to Executive in a single lump sum with the Cash Payment provided
by Section 2(a).

(c)     Conditions
to Severance Pay. To be eligible for Severance Pay, Executive must meet the following conditions: (i) Executive must comply
with Executive’s obligations under this Agreement that continue after termination of employment; and (ii) Executive must
resign upon written request by the Corporation from all positions with or representing the Corporation, including but not limited,
to membership on boards of directors; and (iii) Executive must enter into, and not revoke, an agreement in form reasonably acceptable
to the Corporation that releases the Corporation and any officer, director, agent, employee, shareholder, or other representative
of the Corporation from any and all claims of Executive except for claims 

    	-2-

    	 

    

or rights relating to: (A) this Agreement; (B) unpaid
salary through the employment termination date; (C) unpaid expense reimbursements for authorized business expenses incurred before
the employment termination date; (D) any equity plans; (E) benefit plans (for example, to convert life insurance); (F) any rights
under the terms of any qualified retirement plan covering Executive; and (G) rights of indemnification under the Corporation’s
Articles of Incorporation or Bylaws or any agreement to which the Corporation is a party. In addition, the release does not affect
Executive’s right to cooperate in an investigation by the Equal Employment Opportunity Commission.

(d)     Reductions
to Severance Pay. Executive will receive the Severance Pay notwithstanding any other earnings that Executive may have and without
offset of any kind except that the Corporation has the right to deduct from the Severance Pay any income, payroll or other taxes
required to be deducted from such payments.

3.     Definitions.

(a)     Active Change in
Control Proposal Period. “Active Change in Control Proposal Period” means any period:

(i)     during which the Board
of Directors of the Corporation has authorized solicitation by the Corporation of offers or expressions of interest for a transaction
which, if consummated, would constitute a Change in Control; or

(ii)     during which the Corporation
has received a proposal for a transaction which, if consummated, would constitute a Change in Control, and the Board of Directors
has not determined to reject such proposal without any counter-offer or further discussions; or

(iii)     during which any proxy
solicitation or tender offer with regard to the securities of the Corporation is ongoing, if the intent of such proxy solicitation
or tender offer is to cause the Corporation to solicit offers for or enter into a transaction that would constitute a Change in
Control.

(b)     Affiliate.
“Affiliate” means any organization controlling, controlled by or under common control with the Corporation.

(c)     Average
Compensation. “Average Compensation” means (i) the sum of Executive’s annual base salary and cash bonuses,
if any, paid in each of the most recent three complete calendar years of Executive's employment by the Corporation and the total
grant date fair value of all restricted stock awards (calculated as the fair market value of each share of restricted stock on
the date of the award multiplied by the number of shares awarded), if any, awarded in each of the most recent three complete calendar
years of Executive’s employment by the Corporation divided by (ii) three (or the lesser number of complete calendar years
for which Executive has been employed by the Corporation). Average Compensation shall not include any amount, other than base salary,
cash bonuses and restricted stock, included in Executive’s taxable compensation for federal income tax purposes (for example,
taxable income for taxable fringe benefits, 

    	-3-

    	 

    

previously deferred compensation, restricted stock vesting or gain realized upon exercise
of stock options are not included).

(d)     Cause. “Cause”
means Executive’s removal from office by order of a regulatory agency having jurisdiction over the Corporation, or Executive’s
willful and repeated failure to perform Executive’s duties of employment, which failure has not been cured within thirty
(30) days after the Corporation gives notice thereof to Executive; it being expressly understood that negligence or bad judgment
shall not constitute “Cause” so long as such act or omission was without intent of personal profit and was reasonably
believed by Executive to be in or not adverse to the best interests of the Corporation.

(e)     Change in Control.
“Change in Control” means any of the occurrences listed in (i) below, subject to (ii) and (iii) below.

(i)     A Change
in Control shall be deemed to have occurred if:

(A)     Any
person or group (as such terms are used in connection with Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial
owner” (as defined in Rule 13(d)(3) and 13(d)(5) under the Exchange Act), directly or indirectly, of securities of the Corporation
representing more than 50% of the combined voting power of the Corporation’s then outstanding securities;

(B)     A merger,
consolidation, sale of assets, reorganization, or proxy contest is consummated and, as a consequence of which, members of the Corporation’s
Board of Directors in office immediately prior to such transaction or event constitute less than a majority of the Board of Directors
thereafter;

(C)      During
any period of 24 consecutive months, individuals who at the beginning of such period constitute the Board of Directors of the Corporation
(including for this purpose any new director whose election or nomination for election by the Corporation’s shareholders
was approved by a vote of at least one-half of the directors then still in office who were directors at the beginning of such period)
cease for any reason to constitute at least a majority of the Board of Directors; or

(D)     A merger,
consolidation or reorganization is consummated with any other corporation pursuant to which the shareholders of the Corporation
immediately prior to the merger, consolidation or reorganization do not immediately thereafter directly or indirectly own more
than fifty percent (50%) of the combined voting power of the voting securities entitled to vote in the election of directors of
the merged, consolidated or reorganized entity.

(ii)     Notwithstanding
the foregoing, no trust department or designated fiduciary or other trustee of such trust department of the Corporation or a subsidiary
of the Corporation, or other similar fiduciary capacity of the 

    	-4-

    	 

    

Corporation with direct voting control of the stock shall be treated
as a person or group within the meaning of subsection (i)(A) hereof. Further, no profit-sharing, employee stock ownership, employee
stock purchase and savings, employee pension, or other employee benefit plan of the Corporation or any of its subsidiaries, and
no trustee of any such plan in its capacity as such trustee, shall be treated as a person or group within the meaning of subsection
(i)(A) hereof.

(iii)     Notwithstanding
anything contained in this Agreement to the contrary, if Executive’s employment is terminated prior to a Change in Control
and Executive reasonably demonstrates that such termination was at the request of or in response to a third party who has indicated
an intention or taken steps reasonably calculated to effect a Change in Control, and who subsequently effectuates a Change in Control,
then for all purposes of this Agreement, the date of a Change in Control shall mean the date immediately prior to the date of such
termination of Executive’s employment.

(f)     Permanent Disability.
“Permanent Disability” is as defined and provided for in this paragraph. If Executive has been unable by reason of
physical or mental disability to properly perform Executive’s duties hereunder for a period of one hundred eighty (180) days,
the Corporation may give Executive notice of its intention to terminate Executive’s employment due to Permanent Disability.
If Executive wishes to contest the existence of termination due to Permanent Disability, Executive must give the Corporation notice
of Executive’s disagreement within ten (10) days after receipt of the notice from the Corporation, and Executive must promptly
submit to examination by three physicians in Ottawa County or Kent County, Michigan, who are reasonably acceptable to both Executive
and the Corporation (with consultation from other physicians as determined by those three). If (A) within sixty (60) days after
receipt by Executive of the notice from the Corporation, two of such physicians shall issue their written statement to the effect
that in their opinion, based on their diagnosis, Executive is capable of resuming employment and devoting Executive’s full
time and energy to discharging Executive’s duties within sixty (60) days after the date of such statement, and (B) Executive
does in fact within such sixty (60) day period resume employment and properly perform Executive’s duties, then Executive’s
employment shall not be terminated due to Permanent Disability. It is understood that the Corporation has the right to terminate
Executive’s employment due to Executive’s disability without meeting the standards in this paragraph, but in that event
the termination shall be deemed to be a discretionary termination of Executive’s employment.

(g)      Good
Reason. “Good Reason” means a material negative change to the employment relationship between Executive and the
Corporation because: (A) Executive is removed from Executive’s position as Chief Executive Officer of the Corporation and
the Bank; or (B) the authority, duties or responsibilities of Executive’s principal positions is materially diminished; or
(C) Executive’s base compensation is materially reduced, or (D) Executive is required to report to a corporate officer or
employee instead of directly to the Corporation’s Board of Directors; or (E) any requirement of the Corporation that Executive
be based anywhere other than in Ottawa County or Kent County, Michigan, or any substantial increase in the business travel required
of Executive; or (G) any material 

    	-5-

    	 

    

breach by the Corporation or any successor of its obligations to Executive under this Agreement.

Executive
may not terminate employment for “Good Reason” unless:

(i)     Executive
notifies the Board in writing, within 90 days after Executive becomes aware of the act or omission constituting Good Reason that
the act or omission in question constitutes Good Reason and explaining why Executive considers it to constitute Good Reason;

(ii)     the
Corporation fails, within 30 days after notice from Executive under (i) above, to revoke the action or correct the omission and
make Executive whole; and

(iii)     Executive
gives notice of termination within 90 days after expiration of the 30-day period under (ii) above.

4.     Parachute Cap.  Notwithstanding
anything in this Agreement to the contrary, any payment, benefit, or amount payable or benefit to be provided to Executive pursuant
to this Agreement that is a “Parachute Payment” as defined in Section 280G(b)(2) of the Code, will be reduced to the
extent necessary so that the benefits payable or to be provided to Executive under this Agreement that are treated as Parachute
Payments as well as any payments or benefits provided outside of this Agreement that are so treated will not cause the Corporation
to have paid an “Excess Parachute Payment” as defined in Section 280G(b)(1) of the Code. If it is established that
an “Excess Parachute Payment” has occurred or will occur under this Agreement or otherwise, the Corporation will reduce
the amount of any remaining Parachute Payments to be made to ensure that the total payments to Executive do not exceed 2.99 times
Executive’s “base amount” as defined in Section 280G(b)(3) of the Code.

5.     Confidentiality, Return
of Property. Executive has obtained and may obtain confidential information concerning the business, operations, financial
affairs, organizational and personnel matters, policies, procedures and other non-public matters of the Corporation, and those
of third-parties related to their transaction of business with the Corporation, which information is not generally disclosed to
persons not employed by the Corporation. Such information (referred to herein as the “Confidential Information”) may
have been or may be provided in written form or orally. Executive shall not disclose to any other person the Confidential Information
at any time during or after termination of employment, except that during employment Executive may use and disclose Confidential
Information as reasonably required by Executive’s employment. Upon termination of employment, Executive will deliver to the
Corporation any and all property owned or leased by the Corporation and any and all Confidential Information (in whatever form)
including without limitation all customer lists and information, financial information, business notes, business plans, documents,
keys, credit cards, computers and other Corporation-provided equipment. Executive’s commitments in this Section will continue
in effect after termination of employment and after termination of this Agreement. The parties agree that any breach of Executive’s
covenants in this Section would cause the Corporation irreparable harm, and that injunctive relief would be appropriate.

    	-6-

    	 

    

6.     Inventions, Discoveries
and Improvements. Executive hereby agrees to assign and transfer to the Corporation, its successors and assigns, Executive’s
entire right, title and interest in and to any and all inventions, discoveries, trade secrets and improvements thereto which Executive
may discover to develop, either solely or jointly with others, during Executive’s employment and for a period of one year
after termination of such employment, which would relate in any way to the business of the Corporation, together with all rights
to letters patent, copyrights or trademarks which may be granted with respect thereto. Immediately upon making or developing any
invention, discovery, trade secret or improvement thereto, Executive shall notify the Corporation thereof and shall execute and
deliver to the Corporation, without further compensation, such documents as may be necessary to assign and transfer to the Corporation
Executive’s entire right, title and interest in and to such invention, discovery, trade secret or improvement thereto, and
to prepare or prosecute applications for letters patent with respect to the same in the name of the Corporation. Executive’s
obligations under this Section 6 shall continue in effect, as to inventions, discoveries and improvements covered by this Section
6, notwithstanding any termination of employment or this Agreement.

7.     Noncompetition and Nonsolicitation.

(a)     In
view of Executive’s importance to the success of the Corporation, Executive and the Corporation agree that the Corporation
would likely suffer significant harm from Executive’s competing with the Corporation during employment and for some period
of time thereafter. Accordingly, Executive agrees that Executive shall not engage in competitive activities (except in Marginal
Business Areas, as defined in Section 7(e)) either: (A) while employed by the Corporation; or (B) if Executive’s employment
is terminated during the term of this Agreement, during the Restricted Period (as defined below). Executive shall be deemed to
engage in competitive activities if Executive shall, without the prior written consent of the Corporation, (i) in Ottawa County,
Kent County, or Allegan County, Michigan, or in any county contiguous thereto (including the municipalities therein), render services
directly or indirectly, as an employee, officer, director, consultant, advisor, partner or otherwise, for any organization or enterprise
which competes directly or indirectly with the business of the Corporation in providing financial products or services (including,
without limitation, banking, insurance, trust or investment products or services) to consumers and businesses, or (ii) directly
or indirectly acquires any financial or beneficial interest in (except as provided in the next sentence) any organization which
conducts or is otherwise engaged in a business or enterprise in Ottawa County, Kent County, or Allegan County, Michigan, or any
of the counties contiguous thereto (including all municipalities) which competes directly or indirectly with the business of the
Corporation in providing financial products or services (including, without limitation, banking, insurance, trust or investment
products or services) to consumers and businesses. Notwithstanding the preceding sentence, Executive shall not be prohibited from
owning less than one percent (1%) of any class of publicly traded securities. For purposes of this Section 7 the term “Restricted
Period” shall equal twenty-four months following the date of termination of Executive’s employment during the term
of this Agreement. If Executive is in breach of Section 7, then the Restricted Period will be extended for a period equal to the
duration of Executive’s breach.

    	-7-

    	 

    

(b)     While
employed by the Corporation and during the Restricted Period, Executive agrees that Executive shall not, in any manner directly
(i) solicit by mail, by telephone, by personal meeting, or by any other means, any customer or prospective customer of the Corporation
to whom Executive provided services, or for whom Executive transacted business, or whose identity become known to Executive in
connection with Executive’s services to the Corporation (including employment with or services to any predecessor or successor
entities), to transact business with a person or an entity other than the Corporation or reduce or refrain from doing any business
with the Corporation or (ii) interfere with or damage (or attempt to interfere with or damage) any relationship between the Corporation
and any such customer or prospective customer. The term “solicit” as used in this Section 7 means any communication
of any kind whatsoever, inviting, encouraging or requesting any person to take or refrain from taking any action with respect to
the business of the Corporation.

(c)     While
employed by the Corporation and during the Restricted Period, Executive agrees that Executive shall not, in any manner directly
solicit any person who is an employee of the Corporation to apply for or accept employment with any other person or entity.

(d)     The
parties agree that nothing herein shall be construed to limit or negate that common law of torts or trade secrets where it provides
broader protection than that provided herein.

(e)     Activities
by Executive that would otherwise violate Section 7(a) will not be considered a violation of this Agreement if such activities
are conducted only with regard to a “Marginal Business Area”, defined as a line of business (other than banking) engaged
in by the Corporation but which represents less than 5% of the consolidated non-interest income of the Corporation.

(f)     If
Executive’s employment is terminated during the term of this Agreement, Executive’s obligations under this Section
shall survive termination of this Agreement.

8.     Successors; Binding Agreement.

(a)     This
Agreement shall not be terminated by any merger or consolidation of the Corporation whereby the Corporation is or is not the surviving
or resulting corporation or as a result of any transfer of all or substantially all of the assets of the Corporation. In the event
of any such merger, consolidation, or transfer of assets, the provisions of this Agreement shall be binding upon and inure to the
benefit of and be enforceable by the surviving or resulting corporation or the person or entity to which such assets are transferred.

(b)     The
Corporation agrees that concurrently with any merger, consolidation or transfer of assets constituting a Change in Control, it
will cause any successor or transferee unconditionally to assume, by written instrument delivered to Executive (or Executive’s
beneficiary or estate), all of the obligations of the Corporation hereunder. 

    	-8-

    	 

    

Failure of the Corporation to obtain such assumption
prior to the effective date of any Change in Control shall be a material breach of the Corporation’s obligations to Executive
under this Agreement that constitutes Good Reason.

(c)     This
Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If Executive shall die while any amounts would be payable to Executive
hereunder had Executive continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with
the terms of this Agreement to such person or persons appointed in writing by Executive to receive such amounts or, if no person
is so appointed, to Executive’s estate.

9.     Notice. For purposes
of this Agreement, all notices and other communications required or permitted hereunder shall be in writing and shall be deemed
to have been duly given when delivered or received by electronic mail, facsimile transmission or five (5) days after deposit in
the United States mail, certified and return receipt requested, postage prepaid, addressed as follows:

	If to the Corporation:	Macatawa Bank Corporation

10753 Macatawa Drive

Holland, MI 49424

Attn: Chairman of the Board
	 	 
	If to Executive:	Ronald L. Haan

2701 Meadowbrook Drive SE

Grand Rapids, MI 49546

Rhaan17@aol.com

616.949.3303

 

Either party may change its address
for notices by notice to the other party.

10.     Amendment and Waiver.
No provisions of this Agreement may be amended, modified, waived or discharged unless the waiver, modification, or discharge is
authorized by the Corporation’s Board of Directors, or a committee of the Board of Directors, and is agreed to in a writing
signed by Executive and by the Chairman of the Board of Directors of the Corporation. No waiver by either party at any time of
any breach or non-performance of this Agreement by the other party shall be deemed a waiver of any prior or subsequent breach or
non-performance.

11.     Severability. The
invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of any other provision
of this Agreement, which will remain in full force and effect. If a court of competent jurisdiction ever determines that any provision
of this Agreement (including, but not limited to, all or any part of the non-competition covenant in this Agreement) is unenforceable
as written, the parties intend that the provision shall be deemed narrowed or revised in that jurisdiction (as to geographic scope,
duration, or any other matter) to the extent necessary to allow enforcement of the provision. The revision shall thereafter govern
in that jurisdiction, subject only to any allowable appeals of that court decision.

    	-9-

    	 

    

12.     Arbitration. The Corporation
and Executive agree that the sole and exclusive method for resolving any dispute between them arising out of or relating to this
Agreement shall be arbitration under the procedures set forth in this Section; provided, however, that nothing in this Section
prohibits a party from seeking preliminary or permanent judicial injunctive relief, or from seeking judicial enforcement of the
arbitration award. The arbitrator shall be selected pursuant to the Rules for Commercial Arbitration of the American Arbitration
Association. The arbitrator shall hold a hearing at which both parties may appear, with or without counsel, and present evidence
and argument. Pre-hearing discovery shall be allowed in the discretion of and to the extent deemed appropriate by the arbitrator,
and the arbitrator shall have subpoena power. The procedural rules for an arbitration hearing under this Section shall be the rules
of the American Arbitration Association for Commercial Arbitration hearings and any rules as the arbitrator may determine. The
hearing shall be completed within ninety (90) days after the arbitrator has been selected and the arbitrator shall issue a written
decision within sixty (60) days after the close of the hearing. The hearing shall be held in Grand Rapids, Michigan. The award
of the arbitrator shall be final and binding and may be enforced by and certified as a judgment of the Circuit Court for Kent County,
Michigan or any other court of competent jurisdiction. One-half of the fees and expenses of the arbitrator shall be paid by the
Corporation and one-half by Executive, except that the fees and expenses of the Arbitrator incurred by Executive shall be reimbursed
in full by the Corporation with respect to any arbitration initiated after the date of a Change in Control. The attorney fees and
expenses incurred by the parties shall be paid by each party, except that the Corporation shall reimburse Executive’s reasonable
attorney fees incurred with regard to any arbitration proceeding initiated after a Change in Control unless the arbitrator finds
that Executive’s claims or defenses in such proceeding lack merit and were asserted in bad faith. Any such reimbursement
will be made within thirty (30) days after Executive submits documentation of such expenses, provided that no payment will be made
after the last day of the calendar year following the calendar year in which the expense was incurred. To the extent that (i) the
reimbursement of attorney fees, together with any other payments under this Agreement, constitute separation pay under Code Section
409A and the regulations thereunder; (ii) a portion of such separation pay exceeds the amount that would be exempt from consideration
as a deferral of compensation under Treas. Reg. § 1.409A-1(b)(9)(iii) (the “Excess Separation Payment”); and (iii)
the Excess Separation Payment is not otherwise exempt from treatment as a deferral of compensation under Treas. Reg. § 1.409A-1(b),
then such amounts shall be reduced to the extent necessary so that Executive does not receive an Excess Separation Payment.

13.     Entire Agreement.
No agreements or representations, oral or otherwise, express or implied, with respect to Executive’s employment with the
Corporation or any of the subjects covered by this Agreement have been made by either party that are not set forth expressly in
this Agreement, and this Agreement supersedes any other agreements on the subjects covered by this Agreement; provided, however,
except as expressly modified hereby, this Agreement shall not affect Executive’s rights under retirement and health and welfare
plans in which Executive participates which are maintained by the Corporation. This Agreement does not provide Executive any right
to continued employment with the Corporation and does not in any way affect the right of the Corporation to terminate Executive’s
employment at any time with or without Cause.

14.     Governing Law. The
validity, interpretation, and construction of this Agreement are to be governed by Michigan laws, without regard to choice of law
rules. The parties agree 

    	-10-

    	 

    

that any judicial action involving a dispute arising under this Agreement will be filed, heard and decided
in the Kent County Circuit Court. The parties agree that they will subject themselves to the personal jurisdiction and venue of
either court, regardless of where Executive or the Corporation may be located at the time any action may be commenced. The parties
agree that the locations specified above are mutually convenient forums and that each of the parties conducts business in Kent
County.

15.     Counterparts. This
Agreement may be signed in original or by fax in counterparts, each of which shall be deemed an original, and together the counterparts
shall constitute one complete document.

16.     Section 409A. This
Agreement is intended to be exempt from Section 409A of the Internal Revenue Code partially as providing for short-term deferrals
under Treasury Regulation § 1.409A-(b)(4) and partially as an involuntary separation pay plan under Treasury Regulation §
1.409A-1(b)(9), and shall be interpreted and operated consistently with those intentions. To the extent Section 409A is found to
be applicable to this Agreement, this Agreement is to be interpreted to comply with Section 409A and shall be interpreted and operated
consistently with those intentions, including but not limited to, any applicable six-month delay in payment if Executive is a specified
employee of the Corporation.

The parties made this Agreement effective
as of the date first written above.

MACATAWA BANK CORPORATION

 

 

	By:	/s/ Richard L. Postma	 	/s/ Ronald L. Haan
	 	Richard L. Postma	 	Ronald L. Haan
	 	Chairman of the Board of Directors	 	 
	 	 	 	 
	 	“Corporation”	 	“Executive”

 

    	-11-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}]]