Document:

pfc-ex1031_109.htm

Exhibit 10.31

 

FIRST DEFIANCE FINANCIAL CORP. 
2018 EQUITY INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD AGREEMENT

 

Premier Financial Corp. (the “Company”) formerly known as First Defiance Financial Corp., hereby grants the undersigned Participant a Restricted Stock Unit Award (the "Award"), subject to the terms and conditions described in the First Defiance Financial Corp. 2018 Equity Incentive Plan (the "Plan") and this Restricted Stock Unit Award Agreement (this "Award Agreement").

For purposes of clarity, the Company adopted the First Defiance Financial Corp. 2018 Equity Incentive Plan pursuant to which Restricted Stock Units (“RSUs”) may be granted; First Defiance Financial Corp. and United Community Financial Corp. merged effective January 31, 2020; and the survivor subsequently changed its name to Premier Financial Corp.

	
1.
	
Name of Participant:                                                     (the “Participant”).

	
2.
	
Grant Date:                       (the "Grant Date").

	
3.
	
Award of Restricted Stock Units: The Award consists of                RSUs.
	
 

 

	
4.
	
Vesting: Subject to the provisions of this Award Agreement, the Award shall vest on third anniversary of the Grant Date (the "Vesting Date") provided that the Participant is employed on that date and the Participant is in compliance with the covenants set forth in Section 7.

 

	
5.
	
Limitations on Vesting: If the Participant's employment terminates for any reason prior to the Vesting Date, the Participant shall forfeit all unvested RSUs subject to the Award. Notwithstanding the foregoing, if the Participant is employed and in compliance with the covenants set forth in Section 7 on the applicable date described below:

	
 
	
(a)
	
Death; Disability or Retirement:  If the Participant Retires, dies or becomes Disabled before the Vesting Date, the Award shall become immediately vested as of the date of such Retirement, death or Disability.  
	
 

	
 
	
(b) 
	
Change in Control:  If a Change in Control occurs after the Grant Date but prior to the Vesting Date and the Participant is terminated by the Company other than for Cause prior to the Vesting Date, the Award shall become immediately vested as of the date of such termination. 
	
 

	
6.
	
Form of Settlement: If the applicable terms and conditions of this Award Agreement are satisfied and the Participant becomes vested in the Award pursuant to Section 4 or 5, the Company shall issue a Share to such Participant for each vested RSU.  The Shares shall be issued as soon as practicable but not later than 30 days after the applicable date of vesting. 
	
 

7.Non-Solicitation Covenant. In consideration for this Award of RSUs, the Participant hereby agrees and covenants that:

	
 
	
(a) 
	
During Participant’s employment with Company, and for an additional period of one (1) year following the termination of Participant’s employment with Company for any reason, Participant agrees that Participant shall not, in any capacity or manner whatsoever, directly or indirectly:
	
 

	
 
	
(i)
	
interfere with, or attempt to interfere with, any contractual or other relationship between Company or its affiliates and any of its or their customers or suppliers;
	
 

	
 
	
(ii)
	
hire or attempt to hire for employment any person who is employed by Company or its affiliates, or who was employed by Company or its affiliates during the one (1) year period prior to Participant’s termination, or attempt to influence such person to terminate employment with Company or its affiliates; or  
	
 

	
 
	
(iii)
	
solicit, or attempt to solicit, any person or entity that was a customer, or an actively sought prospective customer, of Company or its affiliates as of the date of Participant’s termination, for the purpose of taking or diverting away any business from Company or its affiliates. 
	
 

	
 
	
(b)
	
Reasonable Restrictions.  The parties hereto acknowledge and agree that the restrictions in Section 7(a) of this Agreement are reasonable and properly required for the adequate protection of the business of Company and its affiliates.  If it is judicially determined that Participant has violated any obligations under this Agreement, then the period applicable to each obligation determined to have been violated shall automatically be extended by a period of time equal in length to the period during which such violation(s) occurred.  If the scope of any restriction contained in this Section 7 is too broad to permit enforcement of such restriction to its fullest extent, then such restriction will be enforced to the maximum extent permitted by law, and the Participant hereby consents and agrees that such scope may be judicially modified accordingly in any proceeding brought to enforce such restriction
	
 

	
 
	
(c)
	
Remedies for Breach of this Agreement.  Participant acknowledges and agrees that a breach of the covenants, promises, agreements and obligations set forth in this Agreement will result in material and irreparable injury to Company for which there is no adequate remedy at law, and that it would not be possible to measure damages for such injury precisely.  In the event of such a breach or threat thereof, the Company shall have the right to seek, in addition to money damages, a temporary restraining order, preliminary injunction or permanent injunction restraining Participant from engaging in the activities prohibited by this Agreement, or any other relief as may be appropriate in law or equity or required for specific enforcement of the covenants set forth in this Agreement.  
	
 

	
 
	
(d)
	
Waivers.  No waiver of any breach or delay in enforcing the terms of this Agreement shall operate or be construed as a waiver of any subsequent breach.  No action taken pursuant to this Agreement, including any investigation by or on behalf of Company shall be deemed to constitute a waiver by Company of its rights and remedies available to it.
	
 

8.Miscellaneous:

	
 
	
(a)
	
Non-Transferability. RSUs may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, except by will or the laws of descent and distribution.
	
 

	
 
	
(b)
	
Beneficiary. Payments with respect to the Award shall be made to the Participant, except that, in the event of the Participant's death, payment shall be made to the Participant's 
	
 

	
 
		
beneficiary.  Unless otherwise specifically designated by the Participant in writing, the Participant's beneficiary shall be the Participant's spouse or, if none, the Participant's estate.
	
 

	
 
	
(c)
	
No Right to Continued Service or to Awards. The granting of an Award shall impose no obligation on the Company or any Affiliate to continue the employment of a Participant or interfere with or limit the right of the Company or any Affiliate to terminate the employment of the Participant at any time, with or without Cause, which right is expressly reserved.
	
 

	
 
	
(d)
	
Tax Withholding. The Company or an Affiliate, as applicable, will have the power and right to deduct, withhold or collect any amount required by law or regulation to be withheld with respect to any taxable event arising with respect to the RSUs. To the extent permitted by the Committee, in its sole discretion, this amount may be: (i) withheld from other amounts due to the Participant, (ii) withheld from the value of any Award being settled or any Shares transferred in connection with the exercise or settlement of an Award, (iii) withheld from the vested portion of any Award (including Shares transferable thereunder), whether or not being exercised or settled at the time the taxable event arises, or (iv) collected directly from the Participant. Subject to the approval of the Committee, the Participant may elect to satisfy the withholding requirement, in whole or in part, by having the Company or an Affiliate, as applicable, withhold Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax that could be imposed on the transaction; provided that such Shares would otherwise be distributable to the Participant at the time of the withholding if such Shares are not otherwise distributable at the time of the withholding, provided that the Participant has a vested right to distribution of such Shares at such time. All such elections will be irrevocable and made in writing and will be subject to any terms and conditions that the Committee, in its sole discretion, deems appropriate.
	
 

	
 
	
(e)
	
Requirements of Law. The grant of Awards shall be subject to all applicable laws, rules and regulations (including applicable federal and state securities laws) and to all required approvals of any governmental agencies or national securities exchange, market or other quotation system.
	
 

	
 
	
(f)
	
Governing Law. The Plan and all Award Agreements shall be governed by and construed in accordance with the laws of (other than laws governing conflicts of laws) the State of Ohio.
	
 

	
 
	
(g)
	
Award Subject to Plan. The Award is subject to the terms and conditions described in this Award Agreement and the Plan, which is incorporated by reference into and made a part of this Award Agreement. In the event of a conflict between the terms of the Plan and the terms of this Award Agreement, the terms of the Plan will govern. The Committee has the sole responsibility of interpreting the Plan and this Award Agreement, and its determination of the meaning of any provision in the Plan or this Award Agreement will be binding on the Participant. Capitalized terms that are not defined in this Award Agreement have the same meanings as in the Plan.
	
 

	
 
	
(h) 
	
Section 409A of the Code. This Award Agreement is intended, and shall be construed and interpreted, to comply with Section 409A of the Code and if necessary, any provision shall be held null and void to the extent such provision (or part thereof) fails to comply with Section 409A of the Code or the Treasury Regulations thereunder. Any amounts payable solely on account of an involuntary termination shall be excludible from the requirements of Section 409A of the Code, either as separation pay or as short-term deferrals to the maximum possible extent. Nothing herein shall be construed as the guarantee of any particular tax treatment to the Participant, and the Company shall have no liability with respect to any failure to comply with the requirements of Section 409A of the Code. Any 
	
 

	
 
		
reference to the Participant's "termination" shall mean the Participant's "separation from service," as defined in Section 409A of the Code. In addition, if the Participant is determined to be a "specified employee" (within the meaning of Section 409A of the Code and as determined under the Company's policy for determining specified employees), the Participant shall not be entitled to payment or to distribution of any portion of an Award that is subject to Section 409A of the Code (and for which no exception applies) and is payable or distributable on account of the Participant's termination until the expiration of six months from the date of such termination (or, if earlier, the Participant's death). Such Award, or portion thereof, shall be paid or distributed on the first business day of the seventh month following such termination.
	
 

	
 
	
(i)
	
Signature in Counterparts. This Award Agreement may be signed in counterparts, each of which will be deemed an original, but all of which will constitute one and the same instrument.
	
 

[signature page attached]

PARTICIPANT

			
	
 
	
Date:
	
 

	
 
	
 
	
 

 

PREMIER FINANCIAL CORP.

By: Date: 

Its:pfc-ex1032_110.htm

Exhibit 10.32

 

PREMIER FINANCIAL CORP.

 2018 EQUITY INCENTIVE PLAN 

 

2021 LONG-TERM INCENTIVE PLAN PERFORMANCE SHARE UNITS AWARD AGREEMENT

 

This 2021 Long Term Incentive Plan (“LTIP”) Performance Share Units Award Agreement (this “Agreement”) is made and entered into as of [Date], (the “Grant Date”) by and between Premier Financial Corp. (the “Company”), formerly known as First Defiance Financial Corp. and [Name] (the “Grantee”). 

 

WHEREAS, the Company has adopted the First Defiance Financial Corp. 2018 Equity Incentive Plan (the “Plan”) pursuant to which Performance Share Units (“PSUs”) may be granted; and

 

WHEREAS, First Defiance Financial Corp. and United Community Financial Corp. merged effective January 31, 2020, and the survivor subsequently changed its name to Premier Financial Corp.; and

 

WHEREAS, for purposes of clarity, the Plan is now referred to as the Premier Financial Corp. 2018 Equity Incentive Plan; and

 

WHEREAS, the Compensation Committee of the Board of Directors (the “Committee”) has determined that it is in the best interests of the Company and its shareholders to grant the award of PSUs provided for herein.

 

NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

 

1.Grant of Target Award and Performance Period.  The Company hereby grants to the Grantee a target award represented as PSUs as further set forth in Statement of Award attached hereto as Exhibit A and incorporated herein by reference (the “Target Award”).  Each PSU represents the right to receive one Common Share, subject to the terms and conditions set forth in this Agreement and the Plan.  The Target Award will be determined as a percentage of base salary, and translated into PSU’s based upon the Company’s average stock price for the twenty (20) trading days prior to the approval of the LTIP by the Committee.  The actual number of Common Shares that the Grantee earns for the Performance Period will be determined by the level of achievement of the Performance Goals in accordance with Section 2, and is referred to in this Agreement as the “Actual Award.”  Capitalized terms that are used but not defined herein have the meanings ascribed to them in the Plan. 

 

2018 FDEF Equity Plan-2021 Long Term Incentive Plan PSU Award Agreement (EO)1

The “Performance Period” shall be the period commencing on January 1, 2021, and ending on December 31, 2023. 

 

2.Performance Goals and Average Compensation.

 

The Actual Award that shall vest and be payable in Common Shares to the Grantee for the Performance Period will be determined at the end of the Performance Period based on the level of achievement of the Performance Goals listed below and the amount of the Grantee’s average base salary over the Performance Period.  In addition to the issuance of Common Shares to the Grantee upon the certification of performance by the Committee as described further below, the Grantee shall receive all dividends on the Common Shares underlying the PSUs, if any, paid prior to the Certification Date (defined below), whether in cash or in the form of additional Company Common Shares, calculated based upon the actual dividends paid to shareholders during the Peformance Period and the Actual Award of PSUs paid to the Grantee.  All determinations of whether Performance Goals have been achieved, the adjustments attributed to changes in average base salary, the Actual Award earned by the Grantee, and all other matters related to this Section 2 shall be made by the Committee in its sole discretion.

 

Promptly following completion of the Performance Period (and no later than sixty (60) days following the end of the Performance Period), the Committee will review and certify in writing (a) whether, and to what extent, the Performance Goals for the Performance Period have been achieved, and (b) the number of Common Shares that the Grantee shall earn, if any, subject to compliance with the requirements of Section 3 (the date upon which the Committee certifies performance is referred to in this Agreement as the “Certification Date”).  Such certification shall be final, conclusive and binding on the Grantee, and on all other persons, to the maximum extent permitted by law.

 

Following the Certification Date, the Actual Award will be reflected on a Statement of Award, the form of which is attached hereto as Exhibit A. 

 

Peer Group:

 

The “Peer Group” includes the following seventeen (17) organizations:

 

		
	
1st Source Corporation (SRCE)
	
Midland Bancorp, Inc. (MSBI)

	
City Holding Company (CHCO)
	
MidwestOne Financial Group, Inc (MOFG)

	
Enterprise Financial Services Corp. (EFSC)
	
Park National (PRK)

	
First Busey (BUSE)
	
Peoples Bancorp Inc. (PEBO)

	
First Commonwealth Financial Corp. (FCF)
	
QCR Holdings, Inc. (QCRH)

	
German American Bancorp Inc. (GABC)
	
Republic Bancorp, Inc. (RBCA)

	
Great Southern Bancorp, Inc. (GSBC)
	
S & T Bancorp, Inc. (STBA)

	
Horizon Bancorp. (HBNC)
	
Univest Financial Corporation (UVSP)

	
Lakeland Financial Corporation (LKFN)
	
 

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The Committee maintains discretion to amend, modify and replace one or more members of the Peer Group when events warrant, such as in the event that a Peer Group member ceases to be a reporting company or is acquired and in other similar circumstances.

 

Performance Measures, Weightings, Goals, and Payout Calibration:

 

The performance measures are:

 

	
 
	
•
	
3-year average core ROA will be weighted 50% and be evaluated relative to Peer Group performance; and

	
 
	
•
	
3-year relative Total Shareholder Return (TSR) will be weighted 50% and be evaluated relative to the Peer Group.

 

The table below sets forth the two performance measures, their respective weighting, how performance on each measure will be evaluated (relative to peers or relative to plan) and the goals for threshold performance, target performance and superior performance.  Achievement of the threshold performance goal will result in 50% of the target payout, achievement of the target performance goal will result in 100% of target payout for the respective measure, and achievement of the superior performance goal will result in 150% of the target payout for the measure.  Payouts for performance between threshold and target, or between target and superior, will be interpolated.

 

Performance-Payout Table:

						
	
 
	
 
	
Evaluated
	
Performance Goals

	
Performance Measure
	
Weight
	
vs.
	
Threshold
	
Target
	
Superior

	
3-year Average Core ROA
	
50%
	
Peers
	
25th %ile
	
50th %ile
	
75th %ile

	
3-year Total Shareholder Return (rTSR)
	
50%
	
Peers
	
25th %ile
	
50th %ile
	
75th %ile

	
Payout for Performance Level (% of Target Opportunity):
	
50%
	
100%
	
150%

 

Definitions:

 

	
 
	
•
	
3-year Average Core ROA:  determine each company’s core return on average assets for each annual period, which is then averaged over the Performance Period.  The “core return on average assets” means the return on average assets adjusted for merger related costs and expenses; and

	
 
	
•
	
Total Shareholder Return:  stock price appreciation measured by comparing each company’s 20 day average stock price prior to the start of the first calendar year of the Performance Period, with each company’s 20 day average stock price at the end of the third calendar year of the Performance Period, plus reinvested dividends throughout the Performance Period.

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The Committee maintains flexibility and discretion amend, modify, terminate or otherwise adjust the Plan, as necessary, including, but not limited to, adjusting measure definitions, if such adjustments ensure a better comparison relative to the peer group and most appropriately reflect the goals of the LTIP and the Company’s compensation philosophy.

 

3.Vesting of PSUs.  The PSUs are subject to forfeiture until they vest.  Except as otherwise provided herein, the PSUs will vest and become nonforfeitable on the Certification Date, subject to (a) the achievement of the minimum threshold Performance Goals for payout set forth in Section 2, and (b) the Grantee’s Continuous Service from the Grant Date through the Certification Date.  The Actual Award earned upon PSU vesting shall be determined by the Committee based on the level of achievement of the Performance Goals set forth in Section 2 and shall be rounded to the nearest whole Common Share.  “Continuous Service” means that the Grantee’s service with the Company as an Employee is not terminated. 

 

4.Termination of Continuous Service.

 

(a)Except as otherwise expressly provided in this Agreement, if the Grantee’s Continuous Service terminates for any reason at any time before all of his or her PSUs have vested, the Grantee’s unvested PSUs shall be automatically forfeited upon such termination of Continuous Service, and neither the Company nor any Affiliate shall have any further obligations to the Grantee under this Agreement.

 

(b)Notwithstanding Section 4(a):

 

	
 
	
(i)
	
If the Grantee’s Continuous Service terminates during the Performance Period as a result of the Grantee’s death or Disability, all of the outstanding PSUs will vest in accordance with Section 3, and further provided that the amount to be paid shall be determined in the manner set forth in Section 2, as if the Grantee’s Continuous Service had not terminated; and

 

	
 
	
(ii)
	
If the Grantee’s Continuous Service terminates before the end of the Performance Period as a result of Retirement, termination by the Company without Cause, or termination by the Grantee for Good Reason, a pro-rata portion of the outstanding PSUs shall vest in proportion to the number of months, including any partial month, elapsed in the Performance Period, and further provided that the amount to be paid shall be determined in the manner set forth in Section 2.

 

(c)“Good Reason” means the definition of “Good Reason” set forth in the Grantee’s employment, severance, change in control or similar agreement, or in the absence thereof, “Good Reason” means:

 

	
 
	
(i)
	
a material reduction in the Grantee’s rate of base salary; or

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(ii)
	
the Company changes by fifty (50) miles or more the principal location in which the Grantee is required to perform services; or

 

	
 
	
(iii)
	
the Company terminates, materially amends or materially restricts the Grantee’s participation in, any equity, bonus or equity-based compensation plans or qualified or supplemental retirement plans so that, when considered in the aggregate with any substitute plan or plans, the plans in which the Grantee is participating materially fail to provide him or her with a level of benefits provided in the aggregate by such plans prior to such termination or amendment; or

 

	
 
	
(iv)
	
the Company materially breaches the provisions of this Agreement.

 

A termination of the Grantee’s employment shall not be deemed to be for Good Reason unless (i) the Grantee gives notice to the Company of the existence of the event or condition constituting Good Reason within thirty (30) days after such event or condition initially occurs or exists, (ii) the Company fails to cure such event or condition within thirty (30) days after receiving such notice, and (iii) the Grantee’s termination occurs not later than ninety (90) days after such event or condition initially occurs or exists, in each case without the Grantee’s written consent.

 

5.Effect of a Change in Control.  If there is a Change in Control during the Performance Period, all outstanding PSUs shall be earned and vest at Target Award levels for open years in the Performance period and in the manner set forth in Section 2 for any closed years in the Performance Period, on the effective date of the Change in Control and shall be paid in cash no later than sixty (60) days following the effective date of such Change in Control.

 

6.Payment of PSUs.  Payment in respect of the PSUs earned for the Performance Period shall be made in Common Shares and shall be issued to the Grantee as soon as practicable following the later of the vesting date or the end of the Performance Period and in any event not later than two and one-half (2-1/2) months following the end of the year in which the vesting date or the end of the Performance Period occurs.  The Company shall (a) issue and deliver to the Grantee the number of Common Shares equal to the number of vested PSUs, and (b) enter the Grantee’s name on the books of the Company as the shareholder of record with respect to the Common Shares delivered to the Grantee.

 

7.Transferability.  Subject to any exceptions set forth in this Agreement or the Plan, the PSUs or the rights relating thereto may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Grantee, except by will or the laws of descent and distribution, and upon any such transfer by will or the laws of descent and distribution, the transferee shall hold such PSUs subject to all of the terms and conditions that were applicable to the Grantee immediately prior to such transfer. 

 

-5-

8.Rights as Shareholder; Dividend Equivalents.

 

(a)The Grantee shall not have any rights of a shareholder with respect to the Common Shares underlying the PSUs, including voting rights.  Notwithstanding the foregoing, dividends on the Common Shares underlying the PSUs, if any, paid prior to the certification date, whether in cash or in the form of additional Company Common Shares, shall accrue and be deferred and subject to forfeiture if the PSUs granted hereby do not vest with the Grantee on the Certification Date; then paid in cash or shares as applicable, subject to adjustment based upon the Actual Award paid to the Grantee.

 

(b)Upon and following the vesting of the PSUs and the issuance of Common Shares, the Grantee shall be the record owner of the Common Shares underlying the PSUs unless and until such shares are sold or otherwise disposed of, and as record owner shall be entitled to all rights of a shareholder of the Company (including voting and dividend rights).

 

9.No Right to Continued Service.  Neither the Plan nor this Agreement shall confer upon the Grantee any right to be retained in any position, as an Employee, Consultant or Director of the Company.  Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the Grantee’s Continuous Service at any time, with or without Cause.

 

10.Adjustments.  On any change in the number or kind of outstanding Common Shares of the Company by reason of recapitalization, merger, consolidation, reorganization, separation, liquidation, share split, share dividend, combination of shares or any other change in the corporate structure or Common Shares of the Company, the Company, by action of the Committee, is empowered to make such adjustment, if any, in the number and kind of PSUs subject to this Agreement as it considers appropriate for the protection of the Company and of the Grantee. 

 

11.Tax Liability and Withholding.

 

(a)The Grantee shall be required to pay to the Company, and the Company shall have the right to deduct from any compensation paid to the Grantee pursuant to the Plan, the amount of any required withholding taxes in respect of the Common Shares issued upon the vesting of the PSUs and to take all such other action as the Committee deems necessary to satisfy all obligations for the payment of such withholding taxes.  The Committee may permit the Grantee to satisfy any federal, state or local tax withholding obligation by any of the following means, or by a combination of such means: 

 

	
 
	
(i)
	
tendering a cash payment;

 

	
 
	
(ii)
	
authorizing the Company to withhold Common Shares from the Common Shares otherwise issuable or deliverable to the Grantee as a result of the vesting of the PSUs; provided, however, that no Common Shares shall be withheld with a value exceeding the minimum amount of tax required to be withheld by law; or

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(iii)
	
delivering to the Company previously owned and unencumbered Common Shares.

 

(b)Notwithstanding any action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding (“Tax-Related Items”), the ultimate liability for all Tax-Related Items is and remains the Grantee’s responsibility and the Company (i) makes no representation or undertakings regarding the treatment of any Tax-Related Items in connection with the grant, vesting or settlement of the PSUs or the subsequent sale of any shares, and (ii) does not commit to structure the Award to reduce or eliminate the Grantee’s liability for Tax-Related Items.

 

12.Compliance with Law.  The issuance and transfer of Common Shares in connection with the PSUs shall be subject to compliance by the Company and the Grantee with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company’s Common Shares may be listed.  No Common Shares shall be issued or transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. 

 

13.Notices.  Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to the Secretary of the Company at the Company’s principal corporate offices.  Any notice required to be delivered to the Grantee under this Agreement shall be in writing and addressed to the Grantee at the Grantee’s address as shown in the records of the Company.  Either party may designate another address in writing (or by such other method approved by the Company) from time to time. 

 

14.Governing Law.  This Agreement will be construed and interpreted in accordance with the laws of the State of Ohio without regard to conflict of law principles.

 

15.Interpretation.  Any dispute regarding the interpretation of this Agreement shall be submitted by the Grantee or the Company to the Committee for review.  The resolution of such dispute by the Committee shall be final and binding on the Grantee and the Company.

 

16.PSUs Subject to Plan.  The PSUs are in all respects subject to the terms, conditions and provisions of the Agreement and the Plan.

 

17.Successors and Assigns.  The Company may assign any of its rights under this Agreement.  This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon the Grantee and the Grantee’s beneficiaries, executors, administrators and the person(s) to whom the PSUs may be transferred by will or the laws of descent or distribution.

 

18.Severability.  The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this 

-7-

Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law.

 

19.Discretionary Nature of Plan.  The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in its discretion.  The grant of the PSUs in this Agreement does not create any contractual right or other right to receive any PSUs or other Awards in the future. Future Awards, if any, will be at the sole discretion of the Company.  Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Grantee’s employment with the Company.

 

20.Amendment.  The Committee has the right to amend, alter, suspend, discontinue or cancel the PSUs, prospectively or retroactively; provided that, no such amendment shall adversely affect the Grantee’s material rights under this Agreement without the Grantee’s consent. 

 

21.Section 409A.  This Agreement is intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section 409A of the Code.  Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Grantee on account of non-compliance with Section 409A of the Code. 

 

22.Non-solicitation Covenants.  By accepting this Agreement and the Target Award provided for herein, the Grantee agrees that during his or her employment with the Company and/or its subsidiaries and affiliates, including but not limited to Premier Bank, and for a period of one year after such employment ceases, either voluntarily or involuntary for any reason, he or she will not, either directly or indirectly:

 

(a)Solicit, encourage, or induce any person employed by the Company, or attempt to solicit, encourage or induce any person employed by the Company, to terminate his or her employment with the Company or to seek or accept employment with any other person or entity;

 

(b)Contact or attempt to contact any customer or prospective customer of the Company for whom the Grantee performed any services or had any direct or indirect business contact for the purposes of identifying his or her new association or his or her change of employment or current affiliation;

 

(c)Contact any customer of the Company for whom the Grantee performed any services or had any direct or indirect business contact for the purpose of soliciting, influencing, enticing, attempting to divert, or inducing any such customers to obtain any product or service offered by the Company from any person or entity other than the Company; 

 

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(d)Contact any customer or prospective customer of the Company whose identity or other customer specific information the Grantee obtained or gained access to as an employee of Company for the purpose of soliciting, influencing, enticing, attempting to divert, or inducing any such customers or prospective customers to obtain any product or service provided by the Company from any person or entity other than the Company;

 

(e)Accept or provide assistance in the accepting of business from any customers or any prospective customers of the Company for whom the Grantee performed any services or had any direct or indirect business contact, or whose identity or other customer specific information the Grantee obtained or gained access to as an employee of the Company.

 

Notwithstanding the foregoing non-solicitation provisions of this Agreement, if the Grantee separates employment within one (1) year following a Change in Control that is not pursuant to a transaction approved by the Company’s Board of Directors, then the Grantee’s obligations will cease as of the date of his or her employment termination.

 

23.No Impact on Other Benefits.  Except as otherwise provided in a Grantee’s employment agreement, the value of the Grantee’s PSUs is not part of his or her normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit.

 

24.Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature.

 

25.Acceptance.  The Grantee hereby acknowledges receipt of a copy of the Plan and this Agreement.  The Grantee has read and understands the terms and provisions thereof, and accepts the PSUs subject to all of the terms and conditions of the Plan and this Agreement.  The Grantee acknowledges that there may be adverse tax consequences upon the vesting or settlement of the PSUs or disposition of the underlying shares and that the Grantee has been advised to consult a tax advisor prior to such vesting, settlement or disposition.

 

26.Clawback.  Notwithstanding any other provisions in this Agreement or the Plan, all payments made to the Grantee pursuant to this Agreement shall be subject to recovery, deduction or clawback (collectively, “Clawback”) under any law, regulation, stock exchange listing requirement requiring Clawback and under the Company’s Incentive Compensation Clawback Policy, as may be amended from time to time.

 

[Signature Page Follows]

-9-

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

Premier Financial Corp.

 

 

____________________________________

Name: [Name]

Title: [Title]

 

 

____________________________________

Name: [Name]

 

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EXHIBIT A

 

2021 LONG TERM INCENTIVE PLAN

STATEMENT OF AWARD

Grantee’s Name and Address:

[Name]

[Address]

 

Target Award:   Performance Share Units

2018 FDEF Equity Plan-2021 Long Term Incentive Plan PSU Award Agreement (EO)1

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