Document:

exh_1026.htm

Exhibit 10.26

 

FORM OF EMPLOYEE RESTRICTED STOCK UNIT AWARD LETTER

 

 

This award letter sets forth the terms and conditions of the restricted stock units (“RSUs”) which have been granted to you by Flushing Financial Corporation (the “Company”), in accordance with the provisions of its 2005 Omnibus Incentive Plan (the “Plan”).  Your award is subject to the terms and conditions set forth in the Plan, any rules and regulations adopted by the Committee (as defined in the Plan), and this award letter.

 

1.             Grant of RSUs

 

You have been granted the number of RSUs set forth in the grant header information for this grant on the Wealthviews online equity platform.  Each RSU represents the right to receive one share of the Company’s Common Stock (“Common Stock”) on the applicable settlement date for the RSU.  You have also been awarded Dividend Equivalents on your RSUs, as described more fully below.  You do not need to pay any purchase price to receive the RSUs granted to you by this award letter.

 

2.             Vesting of RSUs

 

	
(a)         

	
General Vesting Schedule.  Unless they vest on an earlier date as provided in sub-paragraph (b), (c) or (d) below, your RSUs will vest in installments as set forth in the grant header information for this grant on the Wealthviews online equity platform, provided that you are an employee of the Company or one of its subsidiaries on each such date.

 

	
(b)         

	
Death or Disability.  If your employment terminates by reason of death or Disability, all of your RSUs will immediately vest upon your termination of employment.  For this purpose, “Disability” means that you have been unable to perform the essential functions of your employment due to disability or incapacity for 270 consecutive days or such lesser period as may be determined by the Committee.

 

	
(c)         

	
Retirement.  If your employment terminates by reason of Retirement, all of your RSUs will immediately vest.  For purposes of this provision, “Retirement” means termination of employment with the Company and its subsidiaries either (i) after your attainment of age 65 with 5 years of service, or (ii) when your termination is preceded by at least 5 continuous years of service and the sum of your age plus years of service equals or exceeds 75 years.  For purposes of this definition, “years of service” refers to “vested service” with the Company or its subsidiaries as determined under the Retirement Plan of Flushing Savings Bank, FSB.

 

	
(d)         

	
Change in Control.  All of your RSUs will immediately vest upon the occurrence of a Change in Control (as defined in the Plan), if you are an employee of the Company or its subsidiaries at the time of such Change in Control.

 

	
  

	
(e)          

	
Forfeiture upon other Termination of Employment.  If your employment terminates for any reason other than death, Disability, or Retirement, any of your RSUs which have not vested prior to the termination of your employment will be forfeited.

 

	
  

	
(f)          

	
Committee Determinations.  The Committee shall have absolute discretion to determine the date and circumstances of termination of your employment, and its determination shall be final, conclusive and binding upon you.

 

  

 

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3.            Grant of Dividend Equivalents

 

	
  

	
(a)          

	
Award of Dividend Equivalents.  You have been awarded Dividend Equivalents with respect to each of your RSUs covered by this award letter.

 

	
(b)         

	
Cash Dividends.  The Dividend Equivalents that you have been awarded entitle you to receive, at each time cash dividends are paid on the Common Stock, a cash payment for each of your then outstanding RSUs (whether or not vested) equal to the amount of the dividend paid on a share of Common Stock.

 

	
(c)         

	
Stock Dividends.  In the event the Company pays a dividend in Common Stock or other property, your Dividend Equivalents will entitle you to receive, for each of your then outstanding RSUs (whether or not vested), the amount of Common Stock or other property paid as a dividend on a share of Common Stock.  Such Common Stock or other property will be paid to you at the time of settlement of the underlying RSU and will be subject to the same restrictions, risk of forfeiture, and vesting and delivery provisions as the underlying RSU with respect to which it was paid.

 

4.            Settlement of RSUs; Delivery of Shares.

 

	
(a)         

	
Your RSUs that vest under paragraph 2 above will be settled on their vesting dates, except as follows.   If you both (1) are or will become eligible for Retirement prior to the last scheduled vesting date, and (2) are a specified employee within the meaning of Section 409A of the Internal Revenue Code of 1986 (“Section 409A”), as determined by the Board of Directors in accordance with the election made by the Company for determining specified employees (a “Specified Employee”), your RSUs will be settled as provided in paragraphs 4(b), 4(c) and 4(e) below.  If you are or will become eligible for Retirement prior to the last scheduled vesting date, whether or not you are a Specified Employee, your RSUs will be settled as provided in paragraphs 4(d) and 4(e) below.  As soon as practicable after the settlement date of an RSU, the Company will deliver to you one share of Common Stock for each of your RSUs being settled on such date.  The Common Stock delivered upon the settlement of your RSUs will be fully transferable (subject to any applicable securities law restrictions) and not subject to forfeiture.  The shares of Common Stock delivered upon the settlement of your RSUs will have full voting and dividend rights and will entitle the holder to all other rights of a stockholder of the Company.

 

	
(b)         

	
If your RSUs vest on account of your Retirement and you are a Specified Employee, the settlement of your RSUs will be delayed until, and will occur on, the six month anniversary of your Retirement (or the date of your death if sooner).

 

	
(c)         

	
If your RSUs vest on account of a Disability that does not qualify as  the date you become disabled under Section 409A and you are a Specified Employee, settlement of your RSUs will be delayed until, and will occur on, the six month anniversary of your termination of employment (or the date of your death if sooner).

 

	
(d)         

	
If your RSUs vest on account of a Change of Control that does not qualify as a “change of control” under Section 409A, settlement of your RSUs will be delayed until, and will occur on, the earliest of: (i) the scheduled vesting date under paragraph 2(a) above; (ii) the date of your termination of employment (or the six month anniversary of your termination of employment if you are a Specified Employee); (iii) the date of your death; or (iv) the occurrence of a Change of Control which qualifies as a “change of control” under Section 409A.

 

	
(e)         

	
Notwithstanding paragraphs 4(b), 4(c) and 4(d) above, settlement upon your termination of employment shall not occur unless your termination of employment is also a “separation from service” (within the meaning of Code Section 409A.

 

  

  

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5.            Income Tax Withholding

 

	
(a)         

	
You must make arrangements satisfactory to the Company to satisfy any applicable federal, state, or local withholding tax liability arising with respect to your RSUs.  You can either make a cash payment to the Company of the required amount or you can elect to satisfy your withholding obligation by having the Company retain Common Stock having a value equal to the amount of your withholding obligation from the shares otherwise deliverable to you upon the settlement of such RSUs.  If you fail to satisfy your withholding obligation in a time and manner satisfactory to the Company, the Company shall have the right to withhold the required amount from your salary or other amounts payable to you.

 

	
(b)         

	
You must make your election regarding the manner in which your withholding obligation will be satisfied on the Wealthviews online equity platform.  To make the election, go to the Restricted Elections screen and select the Tax Election column.  If no election is made, the Company will withhold shares to satisfy the withholding election.

 

	
(c)         

	
All cash payments of Dividend Equivalents will be net of any required withholding.

 

	
(d)         

	
The amount of withholding tax retained by the Company or paid by you to the Company will be paid to the appropriate federal, state and local tax authorities in satisfaction of the withholding obligations under the tax laws.  The total amount of income you recognize and tax withheld with respect to your RSUs and Dividend Equivalents will be reported on your Form W-2 in the year in which you recognize the income with respect to that portion of the award.  Whether you owe additional tax will depend on your overall taxable income for the applicable year and the total tax remitted for that year through withholding or by estimated payments.

 

6.            Other Provisions of RSUs

 

	
(a)         

	
 
 
Voting. You will have no voting rights or other rights as a stockholder with respect to your RSUs.

 

	
(b)         

	
 
Transfer Restrictions. You may not sell, transfer, assign or pledge your RSUs or any rights under this award. Any attempt to do so will be null and void.

 

	
(c)         

	
Death.  In the event of your death, any shares of Common Stock and other amounts you are entitled to receive under the Plan will instead be delivered to the legal representative of your estate.

 

7.            Administration of the Plan

 

The Plan is administered by the Committee.  The Committee has authority to interpret the Plan and this award letter, to adopt rules for administering the Plan, to decide all questions of fact arising under the Plan, and generally to make all other determinations necessary or advisable for administration of the Plan.  All decisions and acts of the Committee with respect to the administration and interpretation of the Plan are final and binding on all affected Plan participants.

 

It is intended that this award letter comply with the provisions of Section 409A and the regulations and guidance of general applicability issued thereunder so as to not subject you to the payment of additional interest and taxes under Section 409A, and in furtherance of this intent, this award letter shall be interpreted, operated and administered in accordance with these intentions.

 

8.            Amendments and Adjustments to your Award

 

The Plan authorizes the Committee to make amendments and adjustments to outstanding awards, including the RSUs and Dividend Equivalents granted by this letter, in specified circumstances.  Details are provided in the Plan.

 

  

  

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These circumstances include the Committee’s right, in its sole discretion, to amend the Plan and/or outstanding awards, including this grant of RSUs and Dividend Equivalents, without your consent, to the extent the Committee determines that such amendment is necessary or appropriate to comply with Section 409A.

 

9.             Effect on Other Benefits

 

Income recognized by you as a result of the grant, vesting, or settlement of RSUs or the receipt of Dividend Equivalents will not be included in the formula for calculating benefits under the Company’s other benefit plans.

 

10.           Regulatory Compliance

 

Under the Plan, the Company is not required to deliver Common Stock (including upon the settlement of RSUs) if such delivery would violate any applicable law or regulation or stock exchange requirement.  If required by any federal or state securities law or regulation, the Company may impose restrictions on your ability to transfer shares received under the Plan.

 

11.           Data Privacy

 

By accepting this award you expressly consent to the collection, use and transfer, in electronic or other form, of your personal data by and among the Company, its subsidiaries and any broker or third party assisting the Company in administering the Plan or providing recordkeeping services for the Plan, for the purpose of implementing, administering and managing your participation in the Plan.  By accepting this award you waive any data privacy rights you may have with respect to such information.  You may revoke the consent and waiver described in this paragraph by written notice to the Company’s Senior Vice President/Human Resources; however any such revocation may adversely affect your ability to participate in the Plan.

 

 

*           *           *           *           *

 

Please click “I ACCEPT this grant” below to acknowledge your acceptance of this award.  This letter and the related grant header information contains the formal terms and conditions of your award and accordingly they should be printed and retained in your files for future reference.

 

Very truly yours,

 

 

Maria A. Grasso

Executive Vice President & COO

and Corporate Secretaryexh_1029.htm

EXHIBIT 10.29

Flushing Financial Corporation (FFC)

 Annual Incentive Plan for Executives and Senior Officers

	
1)  

	
Purpose

The Purpose of the Annual Incentive Plan is to provide annual incentive payments to Executives and Senior Officers who contribute to the successful performance of Flushing Financial Corporation (the Bank) during the year.

	
2)  

	
Funding

The program will be funded as a portion of a pool of pre-tax Net Income.

The CEO recommends and the Compensation Committee (the Committee) approves the pre-tax performance required to fund the Bank’s annual incentive pool; funding levels will include:

	
-  

	
A threshold level of performance required to fund the pool; performance below threshold will result in no funding of the pool, and no annual incentive being paid to Senior Officers;

	
-  

	
Target and stretch target levels of performance; and,

	
-  

	
A maximum level of performance that will be considered to fund the pool; performance beyond the maximum will result in no additional funding of the pool

The pool will be divided into two parts, in portions to be determined by the Compensation Committee (the Committee) and the Chief Executive Officer (CEO)

	
-  

	
One portion of the pool funds annual incentive awards to Senior Officers, as discussed in this document; and,

	
-  

	
The other portion of the pool funds annual incentive awards to Vice Presidents and other eligible employees who are not eligible for any other incentive plans of the Bank, as determined by the CEO, to be addressed in a separate document

	
3)  

	
Eligibility

Eligibility for annual incentive payments under this plan is limited to President / CEO, Executive Vice Presidents, and Senior Vice Presidents I & II.

	
4)  

	
Performance Measures

Before or shortly after the commencement of the fiscal year, but not later than the 90th day of the fiscal year, the CEO recommends and the Committee approves performance measures for the determination of annual incentive payments to Senior Officers.

Performance measures may be established to measure performance versus internally-derived goals, external comparisons to a peer group, or a combination of 

 

  

 

  

the internally-derived goals and external comparisons, as defined in the Bank’s 2005 Omnibus Incentive Plan.

Performance measures for the CEO, Chief Operating Officer, and other Senior Officers without direct departmental Profit & Loss (P&L) responsibility are based on the overall Bank performance.

At the recommendation of the CEO, and with the approval of the Committee, performance measures for Senior Officers with direct departmental P&L responsibility may be based on a combination of Bank and Departmental performance.

	
5)  

	
Targets and Awards

Determinations of award targets and actual awards for Senior Officers are typically based solely on actual performance versus pre-established performance measures and, for Senior Officers named in the proxy (Named Officers), are structured so as to comply for with the criteria under Section 162(m) of the Internal Revenue Code, as discussed in the Bank’s 2005 Omnibus Incentive Plan.

 

	
-  

	
For the CEO, targets and awards (i.e., Threshold, Target, Stretch Target and Maximum) are developed by the Committee and approved by the Board

	
-  

	
For the other Senior Officers, targets and awards are recommended by the CEO and approved by the Committee

	
-  

	
The Committee has the discretion to reduce, but not to increase, payment levels from established targets

The 2005 Omnibus Incentive Plan also permits the Committee to grant awards to Named Officers (and all Senior Officers) that are discretionary and not structured to be compliant with the criteria under Section 162(m)1.

6) Payment

Payment will be typically made in cash, as soon as possible after Committee approval and no later than 75 days after the close of the fiscal year.

Unless otherwise provided below or in an individual employment agreement, to receive payment a Senior Officer must be actively employed and in good standing on the date of payment.  Subject to the Committee’s discretion to reduce (but not increase) any amount payable in respect of awards as set forth in the Bank’s 2005 Omnibus Incentive Plan, in the event of the Officer’s termination of employment prior to the payment date on account of death, disability, retirement or termination by the Bank without cause, the Senior Officer shall be entitled to receive: (i) the earned but unpaid bonus for the year prior to the year of termination, which shall be paid at the same time as bonuses for such year are paid to active employees; and (ii) a pro rata portion of the Officer’s bonus for the year of termination determined by multiplying the amount of the bonus which would have been earned by the Officer for the year of termination if the Officer had remained in employment through the end of the year (but only to the extent of achievement of the applicable performance standards for 

  

1 For example, the Committee may choose to grant discretionary awards in the cases of: (i) not attaining an Earnings per Share metric due to an unplanned acquisition; and/or (ii) not attaining a Return on Assets metric due to a balance sheet restructuring these may be further defined.

 

  

2

  

such year) by the number of full months of employment during the year of termination, and dividing by 12, which amount shall be paid at the same time as bonuses for such year are paid to active employees.

 

7) Additional Discussion

The Annual Incentive Plan is governed by the provisions of the shareholder-approved 2005 Omnibus Incentive Plan.

Each year a schedule shall be developed by the CEO and approved by the Committee regarding for that fiscal year:

	
-  

	
The funding of the overall Bank’s annual incentive pool, including the portioning of the overall pool, as discussed above; and,

	
-  

	
Performance measures and payment targets for Senior Officers

Each year a schedule regarding the CEO’s performance measures and annual incentive targets for that fiscal year shall be developed and recommended by the Committee and approved by the Board

  

3

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