Document:

EX-10.26

 Exhibit 10.26 
  

			
	

	  	  
 PO Box 362708

San Juan, Puerto Rico 00936-2708    

Telephone 787-765-9800

 FORM OF DOCUMENTS RELATED TO DIRECTOR COMPENSATION 

February 11, 2019 
 PERSONAL AND CONFIDENTIAL

 [INSERT ADDRESS] 
 Dear [INSER NAME OF DIRECTOR]:

 We are writing to set forth the general terms of your revised compensation as a director of Popular, Inc. (the “Corporation”) and certain
of its wholly-owned subsidiaries. The annual compensation for directors approved by the Corporation’s Board on September 21, 2018 is as follows: 
  

	 	•	 	 A grant (the “Equity Grant”) of $125,000 (payable in equity) under the Popular, Inc. 2004
Omnibus Incentive Plan (the “Omnibus Plan”); 

  

	 	•	 	 A retainer fee (the “Annual Retainer”) of $75,000 (payable in cash or in equity, at your
option); 

	 	•	 	 A committee chair retainer (the “Committee Chair Retainer”) payable (in cash or in equity, at
the director’s option) to the director designated as Chairperson of the following Committees: 

  

	 	•	 	 Audit and Risk Committees: $20,000. 

 

	 	•	 	 Compensation and Corporate Governance & Nominating Committees $15,000; and 

 

	 	•	 	 A grant (the “Lead Director Grant”) of $25,000 (payable in equity) under the Omnibus Plan, to
the director designated as lead director. 

 All equity payments may be received in either immediately vested Restricted Stock or
Restricted Stock Units, at your option. 
 The aforementioned compensation is attributable to the period commencing on May 7, 2019 and ending on the
day before the 2020 annual shareholder’s meeting, and for each subsequent year that you are a director and/or elected as committee chair or lead director until such compensation is modified by the Board of Directors. The annual compensation
period for subsequent years will commence on the day of the corresponding annual shareholders’ meeting and end on the day before the following year’s annual shareholder’s meeting. 

The Annual Retainer and Committee Chair Retainer will be paid in cash, unless you elect to receive the payment in the form of equity under the Omnibus Plan, as
discussed below. The Equity Grant, Lead Director Grant (if applicable) and any retainers which you elected to receive in the form of equity will be paid in the form of Restricted Stock, unless you elect to receive the payment in Restricted Stock
Units. Shares of Restricted Stock will vest immediately on the grant date and be issued to you on such date. If you elect to receive the equity component of your compensation in the form of Restricted Stock Units, you will elect to receive the
shares of stock of the underlying Restricted Stock Units in one of the two following forms: 
  

	 	•	 	 Lump-Sum – You will receive the shares of stock of the
underlying Restricted Stock Units on the 15th of August immediately following the date you cease to be a director of the Corporation. 

 

	 	•	 	 Annual Installments – You will receive the shares of Stock of the underlying Restricted Stock Units
in equal annual installments on each 15th of August of the 1st, 2nd, 3rd, 4th and 5th year after you cease to be a director of the Corporation.

 In order to make the elections discussed above, you must return to us the attached Director Compensation Election Form no later than
February 28, 2019. If you do not submit the Director Compensation Election Form prior to such date, the Annual Retainer and Committee Chair Retainer will be payable to you in cash and the equity component of your compensation
will be payable to you in immediately vested Restricted Stock. Once you have made an election it will be applicable to all future payments, unless you notify us in writing of your desire to change the election. You may make such change in connection
with future payments, by sending us a written notice no later than the 31st of December of the year preceding the date of the Corporation’s annual shareholders’ meeting to which the
change would be in effect. 

 The number of shares of Restricted Stock or Restricted Stock Units (depending on your election) to be
delivered in payment of the Equity Grant, the Annual Retainer, the Committee Chair Retainer and the Lead Director Grant, as applicable, will be determined by dividing the corresponding amount of the payment in cash by the closing price of the
Corporation’s common stock on the date of the annual shareholder’s meeting. 
 The Restricted Stock Units will be subject to the terms and
conditions of the Restricted Stock Unit Award Agreement attached hereto. To the extent that cash dividends are declared and paid on the Corporation’s outstanding common stock after the award of Restricted Stock Units but before the actual
shares of common stock are delivered, you will receive an additional number of Restricted Stock Units that reflect reinvested dividend equivalents. 
 We
have enclosed the following documents in connection to your compensation: 
  

	 	•	 	 Director Compensation Election Form; 

 

	 	•	 	 Restricted Stock Unit Award Agreement; and 

 

	 	•	 	 Omnibus Plan. 

Please complete and sign the Director Compensation Election Form and the Restricted Stock Unit Award Agreement where indicated, and return the executed
documents to Marie Reyes Rodríguez at the Corporate Secretary’s Office. Please retain a copy of the documents for your records.     
  

	
	
	Cordially,
	
	/s/ Javier D. Ferrer
	
	Javier D. Ferrer
	Executive Vice President,
	Chief Legal Officer & Secretary

 

 
 DIRECTOR COMPENSATION ELECTION FORM 

Name: [INSERT NAME OF DIRECTOR]     
 This
Election Form is subject to all the terms and conditions of Popular, Inc.’s (the “Corporation”) 2004 Omnibus Incentive Plan, as amended (the “Plan”) and the Restricted Stock Unit Award Agreement (as applicable)
executed by me and the Corporation in connection with this Election Form (the “Agreement”). I acknowledge that I have received the letter informing me of my compensation as a member of the Board of Directors of the Corporation (the
“Board”) and/or certain of its wholly-owned subsidiaries commencing on the Corporation’s 2019 Annual Meeting of Shareholders and continuing until such compensation is changed by the Board and that I agree with the terms set
forth therein. Capitalized terms used in this Election Form but not defined herein shall have the meanings set forth in the Plan. 
 In accordance with the
Plan and the Agreement, I hereby make the following elections with respect to the compensation to be received by me for my services as a member of the Board and/or certain of its wholly-owned subsidiaries for the period commencing on the
Corporation’s 2019 Annual Meeting of Shareholders and continuing in future years: 
 Election I 

ANNUAL RETAINERS 
 I hereby elect to
receive the Annual Retainer and Committee Chair Retainer (if applicable) component of my compensation for the period commencing on the Corporation’s 2019 Annual Meeting of stockholders and continuing for future years in the following form
(select only one): 

			
	 CASH
	  	 EQUITY

		  	

 Election II 

EQUITY AWARDS 
 I hereby elect to receive
the equity components of my compensation (Equity Grant, Lead Director Grant (if applicable) and any annual retainers which I elected to receive in the form of equity in Election I above) for the period commencing on the Corporation’s
2019 Annual Meeting of Stockholders and continuing for future years in the following form (select only one): 
  

	 	•	 	 Restricted Stock – The shares of Common Stock will vest immediately on the grant date and be issued
to the Director on such date. 

  

	 	•	 	 Restricted Stock Units – The delivery of the shares of Common Stock of the underlying Restricted
Stock Unit Award will be deferred to a future date selected by the Director in Election III below. 

  

			
	 RESTRICTED STOCK
	  	 RESTRICTED

STOCK UNITS

		  	

 Election III 

DEFERRAL OF SETTLEMENT OF RESTRICTED STOCK UNITS 

To be completed only if you selected “Restricted Stock Units” in Election II above. 

I hereby defer the settlement of the Restricted Stock Units granted to me by the Corporation and elect to receive the shares of Common Stock of the underlying
Restricted Stock Units (including any additional Restricted Stock Units resulting from dividend equivalents) in the following form (select only one): 
  

	 	•	 	 Lump-Sum –The Director will receive the shares of Common Stock of the underlying
Restricted Stock Unit Award on the 15th of August immediately following the date the Director ceases to be a director of the Corporation. 

  

	 	•	 	 Annual Installments –The Director will receive the shares of Common Stock of the underlying
Restricted Stock Unit Award in equal annual installments on each 15th of August of the 1st, 2nd, 3rd, 4th and 5th year after the Director ceases to be a director of the Corporation. 

 

			
	 LUMP-SUM DISTRIBUTION 
	  	 ANNUAL INSTALLMENTS 

		  	

 I acknowledge that, notwithstanding any deferral election I make under this Election Form, as set forth in the Agreement, in
the event of my death or a Change of Control, the settlement of my Restricted Stock Units will accelerate and be settled as soon as practicable but in no event more than sixty (60) days following my death or such Change of Control. 

Other Information: 
 I hereby inform the Corporation that
my place of residence for tax purposes is: 
 (2) The Commonwealth of Puerto Rico 

(3) Mainland United States of America 

(4) Other: ____________________ 

 I hereby instruct the Corporation to deliver and deposit the shares of Common Stock awarded to me as part of
my compensation to my account at: 
  

	 	(5)	 Popular Securities (Account Number:
                        ) 

  

	 	(6)	 Popular, Inc.’s Dividend Reinvestment and Stock Purchase Plan (Account Number:
                        ) 

  

	 	(7)	 Other:
                                (Account Number:
                                ) 

This Election Form will become irrevocable with respect to the grant year to which it applies and shall be effective for subsequent grant years until I file
with the Corporation a new Election Form revoking or changing such election in accordance with the requirements of Section 409A of the U.S. Code and the procedures specified by the Corporate Governance & Nominating Committee. To be effective,
any revocation or change of this Election Form must be filed by December 31st of the year preceding the date of the Corporation’s annual shareholders meeting to which the revocation or change
is made. I understand that this Election Form may be revoked or changed in accordance with the requirements of Section 409A of the U.S. Code, or that I may need to complete another Election Form for future compensation, if the terms of the Plan are
amended. I further understand that the ability to make a subsequent deferral election may not be available to me in the future if the Corporation changes the Plan or its Plan administration policies. I am aware that any elections I have hereby made
may have significant tax consequences to me and, to the extent I deem necessary, I have received advice from my personal tax advisor before making this deferral election. This Election Form is in all respects subject to the terms and conditions of
the Plan and the Agreement. Should any inconsistency exist between this Election Form, the Plan, and/or the Agreement, then the provisions of either the Plan or the Agreement will control. 

The undersigned hereby agrees to be bound by this Election Form and agrees to comply with the terms and conditions of the Plan, the Agreement (as applicable),
and the elections set forth herein. 
 Please send the executed version of this Election Form to Marie Reyes Rodriguez at the Corporate Secretary’s
Office no later than February 28, 2019. Any Election Form received after that date will not be given effect. 
  

			
	
	DIRECTOR
		
	By:	 	  

	Name:	 	[INSERT NAME OF DIRECTOR]
	Date:	 	[INSERT DATE]

 POPULAR, INC. 

RESTRICTED STOCK UNIT AWARD AGREEMENT 

This RESTRICTED STOCK UNIT AWARD AGREEMENT (the “Agreement”) is made and entered into as of
            , by and between Popular, Inc. (the “Corporation”) and              (“Director”).
Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them under the Plan (as defined therein). 

WHEREAS, the Corporation maintains the Popular, Inc. 2004 Omnibus Incentive Plan, as amended (the “Plan”); 

WHEREAS, in connection with the Director’s service as a member of the Board of Directors of the Corporation and/or certain of its
wholly-owned subsidiaries, the Corporation desires to grant Restricted Stock Units to the Director, subject to the terms and conditions of the Plan and this Agreement; and 

NOW, THEREFORE, in consideration of the covenants and agreements contained herein and for other good and valuable consideration, the
parties agree as follows: 
  

	 	•	 	 Award of Restricted Stock Units. Subject to the terms and conditions of this Agreement and the
Plan, in consideration of Director’s services as a member of the Board of Directors of the Corporation and/or certain of its wholly-owned subsidiaries, the Corporation hereby grants to the Director the number of Restricted Stock Units
(“RSUs”) set forth from time to time in Annex I of this Agreement (the “Award”). Annex I will be delivered to the Director upon each Award and will form part of this Agreement. Each RSU represents the
unfunded and unsecured promise of the Corporation to issue to the Director one share of Common Stock, par value $.01 per share, of the Corporation on the Settlement Date (as set forth in Section 4 hereof). No fractional RSUs shall be issued.
Whenever the computation of the number of RSUs to be awarded results in a fractional amount, such amount shall be rounded up to the next greater whole number of RSUs. 

 

	 	•	 	 Vesting and Transfer Restrictions. The RSUs awarded under this Agreement shall vest
and become non-forfeitable on the Grant Date (as set forth in Annex I) of such Award. The RSUs may not be assigned, transferred, pledged or otherwise disposed of in any way other than by the Last
Will and Testament of the Director or the laws of descent and distribution, subject to the bylaws of the Corporation. Any RSUs held by a beneficiary shall be subject to the restrictions imposed on such RSUs by this Agreement and the Plan. Any such
attempt at assignment, transfer, pledge or other disposition shall be without effect. 

  

	 	•	 	 Election to Defer Receipt of Shares. The Director has elected to defer, to some future date as
provided in Section 4 of this Agreement and set forth in Annex I, the receipt of all the shares of Common Stock underlying the Award granted pursuant to this Agreement (the “Shares”). In order to defer the receipt of the
Shares, the Director has completed and filed an election form with the Plan administrator, which election form is incorporated herein by reference. 

 • Settlement Date and Issuance of Shares. The Director has
elected to receive the Shares in one of the following manners (each a “Settlement Date”) as set forth in Annex I hereto: 

1.    Lump-Sum. The Director will receive the Shares on the 15th of August immediately following the date the Director ceases to be a director of the Corporation, or 

2.    Annual Installments. The Director will receive the Shares in equal annual installments on each 15th of August of the 1st, 2nd, 3rd, 4th and 5th year after the Director ceases to be a director of the Corporation. 

On the Settlement Date selected by the Director, the Corporation shall issue to the Director the Shares as provided in this section. 

• Death; Change of Control. Notwithstanding the forgoing or anything in this Agreement or any deferral election form to the
contrary, in the event of the Director’s death or a Change of Control, the Settlement Date of the Award shall accelerate and the Award shall be settled as soon as practicable but in no event more than sixty (60) days following the date of
the Director’s death or such Change of Control. 
 • Rights as Stockholder. The Director shall not have
any rights (including voting rights) of a shareholder of the Corporation with respect to the RSUs until the Shares have been issued to the Director on the Settlement Date. 

• Dividend Equivalents. To the extent that cash dividends are declared and paid on the
Corporation’s outstanding Common Stock after the Grant Date but before the Settlement Date of the Award, the Director shall receive an additional number of RSUs that reflect reinvested dividend equivalents. The dividend equivalents will be
equal in value (based on the reported dividend rate on the date dividends are paid) to the amount of dividends that would have been paid on the Shares not yet delivered to the Director (the “Dividend Equivalents”). The Director
shall receive as of the date of the dividend payment a number of RSUs equal to the amount of the cash dividend paid by the Corporation on a single share of Common Stock multiplied by the number of RSUs awarded under this Agreement, divided by the
Fair Market Value of the Common Stock of the Corporation on the date of the dividend payment (the “Dividend Equivalent RSUs”). The Dividend Equivalent RSUs will be delivered to the Director as soon as practicable following the date
of the dividend payment and will vest immediately. The underlying shares of Common Stock of such Dividend Equivalent RSUs will be issued to the Director on the Settlement Date in accordance with Section 4 and Annex I of this Agreement,
in the same manner as the Shares are issued. Dividend Equivalent RSUs obtained by the Director will also be entitled to obtain Dividend Equivalents in accordance with this Section 7, when cash dividends are declared and paid by the Corporation.
Shares of Common Stock underlying Dividend Equivalent RSUs shall also be referred to herein as “Shares”. 

 • Tax Matters. 

1. Tax Witholding. The Director shall be solely responsible for any applicable taxes (including, without limitation, income and excise
taxes) and penalties, and any interest that accrues thereon, incurred in connection with the Award and any Dividend Equivalent RSUs. The Corporation may withhold or cause to be withheld from the Award and any Dividend Equivalent RSUs (or
Director’s other compensation) any Federal, Puerto Rico, state or local taxes required by law to be withheld with respect to such Award or Dividend Equivalent RSUs. By acceptance of this Agreement, Director agrees to such deductions. If a tax
withholding is required under applicable law, the Corporation will withhold shares of Common Stock with a value equal to the payment of the taxes that the Corporation determines it is required to withhold under applicable tax laws with respect to
the Award and any Dividend Equivalent RSUs (with such withholding obligation determined based on any applicable minimum statutory withholding rates), in connection with the issuance of the Shares thereof. The Corporation will use the Fair Market
Value of the Common Stock on the Settlement Date in order to determine the number of shares to be withheld. If the Director wishes to remit cash to the Corporation (through payment deductions or otherwise), in each case in an amount sufficient in
the opinion of the Corporation to satisfy such withholding obligation, the Director must notify the Corporation in advance and do so in compliance with all applicable laws and pursuant to such rules as the Corporation may establish from time to
time, including, but not limited to, the Corporation’s Insider Trading Policy. 
 2. Section 409A. The intent of the
parties is that the Award and any Dividend Equivalent RSUs granted hereunder comply with Section 409A of the U.S. Code to the extent subject thereto, and, accordingly, to the maximum extent permitted, this Agreement, the Plan and the deferral
election form shall be interpreted and be administered to be in compliance therewith. Notwithstanding anything to the contrary, the Director shall not be considered to have ceased to be a director or to have terminated service with the Corporation
for purposes of this Agreement until the Director has incurred a “separation from service” from the Corporation within the meaning of Section 409A of the U.S. Code. In addition, for purposes of this Agreement, each amount to be
paid to the Director pursuant to this Agreement shall be construed as a separate payment for purposes of Section 409A of the U.S. Code. 

• Securities Law Compliance. The delivery of all or any of the Shares under this Agreement shall only be effective at such
time as the issuance of such Shares will not violate any state or federal securities or other laws. The Corporation is under no obligation to effect any registration of Shares under the Securities Act of 1933 or to effect any state registration or
qualification of the Shares. The Corporation may, in its sole discretion, delay the delivery of the Shares or place restrictive legends on such Shares in order to ensure that the issuance of any Shares will be in compliance with federal or state
securities laws and the rules of NASDAQ or any other exchange upon which the Corporation’s Common Stock is traded. If the Corporation delays the delivery of the Shares in order to ensure compliance with any state or federal securities or other
laws, the Corporation shall deliver the Shares at the earliest date at which the Corporation reasonably believes that such delivery will not cause such violation, or at such other date that may be permitted under law. 

 • Agreement not a Service Contract. This Agreement is not an employment
or service contract, and nothing in this Agreement nor the Plan shall be deemed to confer on Director any right to continue in the service of, or to continue or establish any other relationship with, the Corporation or its subsidiaries, as
applicable, or limit in any way the right of the Corporation or its subsidiaries or its shareholders to terminate its relationship with the Director at any time. 

• Plan Governs. This Agreement is subject to the terms and conditions of the Plan, which is incorporated herein by
reference and which the Director hereby acknowledges receiving a copy. The Director agrees to be bound by all terms and provisions of the Plan and related administrative rules and procedures, including, without limitation, terms and provisions and
administrative rules and procedures adopted and/or modified after the granting of the Award. If any provisions hereof are inconsistent with those of the Plan, the provisions of the Plan shall control. 

• Notices. Any notices required to be given or delivered to the Director or the Corporation under the terms of this
Agreement or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by mail by the Corporation to the Director, five (5) days after deposit in the United States mail, postage
prepaid, addressed to the Director at the last address the Director provided to the Corporation. Notice to the Corporation shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by mail to
the Corporation by the Director, five (5) days after deposit in the United States mail, postage prepaid, addressed to Chief Legal Officer, Popular, Inc. Board of Directors (751), PO Box 362708, San Juan, Puerto Rico 00936-2708. 

• Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth
of Puerto Rico, without regard to principles of conflicts of laws. 
 • Severability. If any provision of this
Agreement is held to be illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions of the Agreement, but such provision shall be fully severable and the Agreement shall be construed and enforced as if
the illegal or invalid provision had never been included in the Agreement. 
 • Successors. This Agreement shall
be binding upon and inure to the benefit of any successors or assigns of the Corporation. Subject to the restrictions on transfer set forth herein, this Agreement and the Plan shall be binding upon Director and Director’s heirs, legatees,
executors, administrators, legal representatives, and successors. 
 • Counterparts. This Agreement may be executed in
any number of counterparts, all of which shall constitute one and the same instruments, and any party hereto may execute this Agreement by signing and delivering one or more counterparts. 

[Signature Page Follows] 

 IN WITNESS WHEREOF, THE PARTIES HERETO HAVE ENTERED INTO THIS AGREEMENT AS OF
            . 

							
			
	POPULAR, INC.	  	DIRECTOR	  	

							
				
	By:	  	
                 
	  		  	

							
	Name:	  	Javier D. Ferrer	  	By:	  	
                     

	Title:	  	Executive Vice President,	  	Name:	  	[INSERT NAME OF DIRECTOR]
	Chief Legal Officer and Secretary	  		  	

 ANNEX I 

POPULAR, INC. 

RESTRICTED STOCK UNIT AWARD 

Recipient: ___________ 
 Grant Date: ________
_____, 2019 
 Total Dollar Value of Award: $__________ 

Common Stock Market Price on Grant Date: $_________ 

Restricted Stock Units Awarded: ________ 
 Settlement
Date selected by the Director on the Director Compensation Election Form: 
 __________ Lump-Sum –
the 15th of August immediately following the date the Director ceases to be a director of the Corporation. 

__________ Annual Installments – each 15th of August of the 1st, 2nd, 3rd, 4th and 5th year after the Director ceases to be a director of the Corporation.Exhibit 10.8

 

Form of Medifast, Inc. Amended
and Restated 2012 Share Incentive Plan Grant Notice Performance Share Unit

 

Medifast,
Inc. Amended and Restated 2012 Share Incentive Plan

 

GRANT NOTICE PERFORMANCE SHARE UNITS

 

Medifast, Inc. (the “Company”)
hereby grants to the Participant named below performance-based Deferred Shares (“Performance Share Units” or “PSUs”)
pursuant to the Medifast, Inc. Amended and Restated 2012 Share Incentive Plan (the “Plan”) in the number specified
below (the “Target Award Opportunity”) covering the three-year Performance Period specified below and subject to the
achievement of Performance Goals, which relate to the Performance Measures specified below. Each PSU relates to and corresponds
in value to a single share of Company common stock (“Share”) and represents the right to receive one Share for each
vested PSU.

 

The PSUs are subject to all of the terms
and conditions as set forth in this Grant Notice, the Performance Share Units Award Agreement (the “Award Agreement”)
and the Plan, all of which are attached hereto and incorporated herein in their entirety. Capitalized terms not otherwise defined
herein shall have the meanings set forth in the Plan or the Award Agreement.

 

	 	Participant Name:	 
	  	Grant Date:	 
	  	Target Award Opportunity:	 
	 	Performance Period:	 
	 	Vesting Schedule (other than in connection with a Change in Control as provided in Section 8 of the Plan)	 

 

 

Additional Terms/Acknowledgements:
The undersigned Participant acknowledges receipt of, and understands and agrees to the terms set forth in this Grant Notice, the
Award Agreement and the Plan (by accepting this Grant Notice and attached Award Agreement electronically, you agree to the
terms and conditions in the Grant Notice, Award Agreement and Plan).

 

Participant further acknowledges that as
of the Grant Date, this Grant Notice, the Award Agreement, the Plan, and any employment or change in control agreement between
you and the Company set forth the entire understanding between Participant and the Company regarding the acquisition of Shares
in accordance with this Grant Notice, the Award Agreement and the Plan and supersede all prior oral and written Award Agreements
on that subject.

 

    	 	1	 

     

    

 

Medifast,
Inc. Amended and Restated 2012 Share Incentive Plan

 

PERFORMANCE
SHARE UNITS AWARD AGREEMENT

 

Pursuant to your Performance Share Units
Grant Notice (“Grant Notice”) and this Award Agreement, Medifast, Inc. (the “Company”) has granted to you
performance-based Deferred Shares (“Performance Share Units”, “PSUs” or “Award”) under the
Plan covering the number of PSUs indicated in your Grant Notice, which vest in accordance with the Vesting Schedule indicated in
your Grant Notice and this Award Agreement.

 

Capitalized terms not otherwise defined
herein shall have the meanings set forth in the Plan or your Grant Notice.

 

The details of your Performance Share Units
are as follows:

 

		1.	Eligibility for Payment or Distribution of Vested PSUs. You must be continuously employed by
the Company or any of its subsidiaries from the Grant Date through and up to the last day of the Performance Period specified in
your Grant Notice to be eligible for a payment or distribution of your PSUs that vest and become nonforfeitable in accordance with
Section 2 of this Award Agreement. If you incur a Termination of Service prior the last day of the Performance Period, you will
forfeit any nonvested PSUs that you then hold and you shall not be entitled to any distribution or payout with respect to such
forfeited PSUs, except as otherwise provided in Section 3 of this Award Agreement.

 

		2.	Determination of Number of Vested PSUs. Subject to the requirements of Section 1 of this Agreement,
at the conclusion of the Performance Period the Committee shall determine whether and to what extent you have become vested in
your Award in accordance with Appendix A to this Agreement.

 

		3.	Effect of a Change in Control Prior to a Vesting Date. The treatment of any nonvested PSUs
that you hold upon or after a Change in Control will be determined under Section 8 of the Plan.

 

		4.	Form and Timing of Settlement of PSUs. Within thirty (30) days of a Vesting Date, the Company
will issue and deliver to you (at the Company’s sole discretion) the number of shares of Stock equal to the number of your
PSUs that vested on such Vesting Date, subject to satisfaction of applicable tax and/or other obligations as described in Section
9 of this Award Agreement.

 

		5.	Dividend Equivalents. In the event that the Company declares and pays a dividend in respect
of its outstanding Shares and, on the record date for such dividend, you hold PSUs granted pursuant to this Award Agreement that
have not been settled, the Company shall credit to an account maintained by the Company for your benefit an amount equal to the
cash dividends you would have received if you were the holder of record, as of such record date, of the number of Shares related
to the portion of the PSUs that have not been settled or forfeited as of such record date (the “Dividend Equivalent”
or “DER”). Such account is intended to constitute an “unfunded” account, and neither this Section 5 nor
any action taken pursuant to or in accordance with this Section 5 shall be construed to create a trust of any kind. Amounts credited
to such account with respect to PSUs that vest in accordance with Sections 2 or 3 of this Award Agreement will become vested DERs
and will be paid to you in cash, Shares, or a combination thereof, as determined by the Committee in its sole discretion, at the
same time as your vested PSUs are settled. You shall not be entitled to receive any interest with respect to the timing of payment
of DERs. In the event all or any portion of the PSUs granted to you pursuant to this Award Agreement fail to become vested under
Sections 2 or 3 of this Award Agreement, the unvested DERs accumulated in your account with respect to such PSUs shall be forfeited.

 

    	 	2	 

     

    

 

		6.	Delivery of Shares. The Company shall deliver Shares in settlement of your vested PSUs to you
in accordance with this Section 6; provided, however, the Company shall not be obligated to deliver Shares to you if (i) you have
not satisfied all applicable tax withholding obligations, (ii) Shares are not properly registered or subject to an applicable exemption
therefrom, (iii) Shares are not listed on the stock exchanges on which Company Shares are otherwise listed, or (iv) the Company
determines that the delivery of Shares would violate any federal or state securities or other applicable laws. At the discretion
of the Company, Shares may be delivered to you by book-entry credit to an account in your name established by the Company with
the Company’s transfer agent, or upon written request from you (or your personal representative, beneficiary or estate, as
the case may be) in certificates in your name (or your personal representative, beneficiary or estate).You shall not acquire or
have any rights as a shareholder of the Company until Shares issuable hereunder are actually issued and delivered to you in accordance
with the Award Agreement.

 

		7.	Forfeiture and Recoupment. Notwithstanding any provision of this Award Agreement or the Plan
to the contrary, you agree that your right to retain your Award, to retain any amount received pursuant to your Award and to retain
any profit or gain your realized in connection with sale of such Shares, shall be subject to any recoupment or “clawback”
policy or forfeiture policy adopted by the Company.

 

		8.	Restrictions on Resales of Shares. The Company may impose such restrictions, conditions, and
limitations as it determines appropriate as to the timing and manner of any resales by you or other subsequent transfers by you
of any Shares issued as a result of the settlement of your PSUs, including (i) restrictions under an insider trading policy, (ii)
restrictions designed to delay and/or coordinate the timing and manner of sales by you and other PSU holders, and (iii) restrictions
as to the use of a specified brokerage firm for such resales or other transfers.

 

		9.	Tax Withholding Obligations.

 

		a.	At the time your PSUs are settled, you hereby authorize withholding from payroll and any other amounts
payable to you by the Company, and otherwise agree to make adequate provision for, any sums required to satisfy the federal, state,
local and foreign tax withholding obligations (“Withholding Obligations”) of the Company, if any, which arise in connection
with the settlement of your PSUs.

 

		b.	Upon your request and subject to approval by the Company, in its sole discretion, and compliance with
any applicable legal conditions or restrictions, the Company may withhold from fully vested Shares otherwise issuable to you upon
the settlement of your PSUs a number of whole Shares having a Fair Market Value, determined by the Company as of the date of settlement,
at least equal to the minimum statutory amount of tax required to be withheld by law but in no event in excess of the maximum statutory
amount of tax that is permitted to be withheld by law.

 

		10.	Tax Consequences. You hereby agree that the Company does not have a duty to design or administer
the Plan or its other compensation programs in a manner that minimizes your tax liabilities. You shall not make any claim against
the Company, or any of its Officers, Directors, Employees or Affiliates related to tax liabilities arising from your PSUs or your
other compensation.

 

    	 	3	 

     

    

 

		11.	Applicability of Section 409A of the Internal Revenue Code.

 

		a.	Your PSUs granted hereunder are not intended to provide for a “deferral of compensation”
within the meaning of Section 409A of the U.S. Internal Revenue Code (“Section 409A”) and shall be interpreted and
construed in a manner consistent with that intent. If any provision of this Award Agreement, your Grant Notice or the Plan causes
your PSUs to be subject to the requirements of Section 409A, or could otherwise cause you to recognize income or be subject to
the interest and penalties under Section 409A, then the provision shall have no effect or, to the extent practicable, the Committee
may, in its sole discretion and without the Participant’s consent, modify the provision to (i) comply with, or avoid being
subject to Section 409A, or to avoid the incurrence of any taxes, interest and penalties under Section 409A, and/or (ii) maintain,
to the maximum extent practicable, the original intent and economic benefit to you of the applicable provision without materially
increasing the cost to the Company or contravening the provisions of Section 409A. This Section 12 does not create an obligation
of the Company to modify this Award Agreement, your Grant Notice or the Plan and does not guarantee that your PSUs will not be
subject to taxes, interest and penalties under Section 409A.

 

		b.	If you are a “specified employee” as defined under Code Section 409A and your PSUs are
to be settled on account of your separation from service (for reasons other than death) and such PSUs constitutes “deferred
compensation” as defined under Code Section 409A, then any portion of your PSUs that would otherwise be settled during the
six-month period commencing on your separation from service shall be settled as soon as practicable following the conclusion of
the six-month period (or following your death if it occurs during such six-month period).

 

		c.	Your Termination of Service shall not be deemed to have occurred for purposes of any provision of
the Award Agreement providing for the payment of any amounts or benefits that are considered nonqualified deferred compensation
under Section 409A upon or following a Termination of Service, unless such termination is also a “separation from service”
within the meaning of Section 409A and the payment thereof prior to a “separation from service” could otherwise cause
you to recognize income or be subject to the interest and penalties under Section 409A.

 

		12.	Restrictions on Transferability. Your PSUs may not be sold, transferred, pledged, assigned,
exchanged, encumbered, or otherwise alienated or hypothecated, except (i) by will or by the laws of descent and distribution; (ii)
to the extent permitted by the Plan and allowed under applicable law and approved by the Committee in its sole discretion; or (iii)
pursuant to a domestic relations order.

 

		13.	Beneficiary Designation. You may, from time to time, name any beneficiary or beneficiaries
(who may be named contingently or successively) to whom any benefit under this Award Agreement is to be paid in case of your death
before you receive any or all of such benefit. Each such designation shall revoke all prior designations by you, shall be in a
form prescribed by the Company, and will be effective only when filed by you in writing with the Secretary of the Company during
your lifetime. In the absence of any such designation, benefits remaining unpaid at the time of your death shall be paid to your
estate.

 

		14.	Securities Laws. This Award Agreement shall be subject to all applicable laws, rules, and regulations,
and to such approvals by any governmental agencies or national securities exchanges as may be required, or the Committee determines
are advisable. You agree to take all steps that the Company determines are necessary to comply with all applicable provisions of
federal and state securities law in exercising your rights under this Award Agreement. The Committee may impose such restrictions
on any Shares acquired by you under the Award Agreement as it may deem necessary or advisable, under applicable federal securities
laws, the requirements of any stock exchange or market upon which such Shares are then listed or traded or any blue sky or state
securities laws applicable to such Shares. In addition, the Shares shall be subject to any trading restrictions, stock holding
requirements or other policies in effect from time to time as determined by the Committee.

 

    	 	4	 

     

    

 

		15.	Data Privacy. To administer the Plan, the Company may process personal data about you. Such
data includes the information provided in this Award Agreement, other appropriate personal and financial data about you such as
home address and business addresses and other contact information, payroll information and any other information deemed appropriate
by the Company to facilitate the administration of the Plan. By accepting this award, you consent to the Company’s processing
of such personal data and the transfer of such data outside the country in which you work or are employed, including, with respect
to non-U.S. residents, to the United States, to transferees who shall include the Company and other persons designated by the Company
to administer the Plan.

 

		16.	No Right to Continued Employment or Further Awards.

 

		a.	Neither the Plan nor this Award Agreement shall (i) alter your status as an “at-will”
employee of the Company; (ii) be construed as giving you any right to continue in the employ of the Company; or (iii) be construed
as giving you any right to be reemployed by the Company following any Termination of Service. The Termination of Service provisions
in this Award Agreement shall solely apply to the treatment of your PSUs as specified herein and shall not otherwise affect your
employment relationship with the Company.

 

		b.	The Company has granted your PSUs in its sole discretion. Your Grant Notice, this Award Agreement
and the Plan do not confer to you any right or entitlement to receive another grant of PSUs, or any other similar award at any
time in the future or in respect of any future period. Your PSU grant does not confer on you any right or entitlement to receive
compensation in any specific amount for any future fiscal year, and does not diminish in any way the Company’s discretion
to determine the amount, if any, of your compensation.

 

		17.	Notices. Any notice required or permitted to be given under this Award Agreement, or Grant
Notice or the Plan shall be in writing and shall be deemed to have been given when delivered personally or by courier, or sent
by certified or registered United States mail, postage prepaid, return receipt requested, duly addressed to the party concerned
at the address indicated below or to such changed address as such party may subsequently by similar process give notice of:

 

If to the Company:

Medifast,
Inc.

100 International Drive

18th
Floor

Baltimore, Maryland 21202

Attn.: General Counsel

 

If to the Employee:

To the last address delivered to
the Company by the

Employee in the manner set forth herein.

 

		18.	General Provisions.

 

		a.	Headings. The headings preceding the text of the sections in this Award Agreement are inserted
solely for convenience of reference, and shall not constitute a part of this Award Agreement, nor shall they affect its meaning,
construction, or effect.

 

		b.	Severability. If any provision of this Award Agreement is declared to be illegal, invalid,
or otherwise unenforceable by a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary
to render it legal, valid, and enforceable, or otherwise deleted, and the remainder of the provisions of this Award Agreement shall
not be affected except to the extent necessary to reform or delete such illegal, invalid, or unenforceable provision.

 

    	 	5	 

     

    

 

		c.	Governing Documents. This Award Agreement is subject to all of the terms and conditions as
set forth in your Grant Notice and the Plan, all of which are incorporated herein in their entirety. Your Grant Notice, this Award
Agreement, the Plan, and any employment or change in control agreement between you and the Company constitute the entire understanding
between you and the Company regarding the PSUs. Any prior Award Agreements, commitments or negotiations concerning the PSUs are
superseded. In the event of any conflict between the provisions of your Grant Notice and this Award Agreement and those of the
Plan, the provisions of the Plan shall control.

 

		d.	Binding on Parties. The provisions of this Award Agreement shall inure to the benefit of and
be binding upon the parties hereto and their respective permitted heirs, beneficiaries, successors and assigns.

 

		e.	Applicable Law. Your Grant Notice and this Award Agreement shall be governed, construed, interpreted,
and administered solely in accordance with the laws of the state of Delaware, without regard to principles of conflicts of law,
with consent of jurisdiction by you in the State of Maryland.

 

		f.	Rescission of Award Agreement and PSU Grant. Your PSUs granted under this Award Agreement may
be rescinded if necessary to ensure compliance with federal, state or other applicable laws.

 

		g.	Administration of PSUs. All questions arising under your Grant Notice, this Award Agreement
and the Plan shall be decided by the Committee in its total and absolute discretion. It is expressly understood that the Committee
is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of your Grant
Notice, this Award Agreement and the Plan; all such determinations shall be binding upon you and your successors.

 

		h.	No Shareholder Rights. The PSUs granted to you under pursuant this Award Agreement do not and
shall not entitle you to any rights of a holder of a Share of Company common stock prior to the date Shares are issued to you in
settlement of the PSUs, if at all (or an appropriate book entry has been made). Except as described in the Plan, no adjustments
are made for dividends or other rights if the applicable record date occurs prior to the date Shares are issued to you in settlement
of the PSUs (or an appropriate book entry has been made).

 

		i.	Unfunded Arrangement. The PSUs create a contractual obligation on the part of the Company to
distribute to you Shares in connection with the vesting of the PSUs at the time provided for in this Award Agreement. Neither you
nor any other party claiming an interest under this Agreement shall have any interest whatsoever in any specific assets of the
Company. Your right to receive Shares under this Agreement is that of an unsecured general creditor of Company.

 

		j.	Consent to Electronic Delivery. Certain statutory materials relating to the Plan may be delivered
to you in electronic form. By accepting this grant, you consent to electronic delivery and acknowledge receipt of these materials,
including the Plan.

 

This Award Agreement is not a stock
certificate or a negotiable instrument.

 

    	 	6	 

     

    

 

Appendix A

 

Unless otherwise provided in the Award
Agreement or Plan, set forth below are the Performance Goals applicable to your Award and the method for calculating the number
of your PSUs that vest at the conclusion of the Performance Period ending on ________________, 20__.

 

    	 	7

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