Document:

Exhibit 10(t)(t)

 

Amendments to Grant Agreements Effective January 1, 2016

 

For grantees with awards outstanding as of January 1, 2016 of either restricted stock units or performance-adjusted restricted stock units, HP Inc. (the “Company”) has amended the Grant Agreements to provide for full vesting in the event of the Employee’s termination of employment death and, for performance-adjusted restricted stock units, to also provide for full vesting in the event of the employee’s termination of employment due to total and permanent disability. (Grant agreements for time-based restricted stock units already provided for full vesting in the event of termination of employment due to total and permanent disability.) Accordingly, the following provisions of any Grant Agreement that is outstanding on January 1, 2016 are amended as reflected below.  All other provisions of your Grant Agreement remain unchanged.

 

These amendments apply only to grants made under a Company equity plan.  Grant agreements that were assumed by the Company pursuant to an acquisition have not been amended and continue to be treated according to their original terms, except to the extent modified due to the relevant acquisition.

 

Time-based Restricted Stock Units granted before January 1, 2016

 

Current Section 9

 

9.                                In the event of the Employee’s death prior to the end of the Restriction Period, the Employee shall vest in a prorated number of RSUs equal to the total number of RSUs, multiplied by a fraction equal to the number of completed calendar months during which the Employee was employed during the Restriction Period, divided by the number of months in the total Restriction Period, less any shares that vested prior to termination, plus any dividend equivalent payments on such vested RSUs.

 

New Section 9:

 

9.                                      In the event of the Employee’s death prior to the end of the Restriction Period, all unvested RSUs shall immediately vest including any amounts for dividend equivalent payments on such vested RSUs and any such vested portion shall be delivered within 75 days of vesting.

 

Performance-adjusted Restricted Stock Units granted before January 1, 2016

 

Current Section 9:

 

9.                                      In the event that termination of employment is due to the death of the Employee, a Pro Rata Portion of the PARSUs shall vest. “Pro Rata Portion” for purposes of this Grant Agreement shall mean a number of PARSUs equal to the number of PARSUs that are determined to be vested pursuant to Section 3 above for each Segment, multiplied by a

 

 

fraction equal to the number of whole months during which the Employee was employed in such Segment, divided by the number of months in the Segment.

 

New Section 9:

 

9.                                      In the event that termination of employment is due to the death of the Employee, all unvested portions of the PARSUs, including any amounts for dividend equivalent payments, shall vest based on performance at target levels and any such vested portion shall be delivered within 75 days of vesting.

 

Current Section 11:

 

11.                               In the event that termination of employment is due to the total and permanent disability of the Employee, a Pro Rata Portion of the PARSUs shall vest.  The Company’s obligation to deliver the amounts that vest pursuant to this Section 11 is subject to the condition that (a) the Employee shall have executed a current ARCIPD that is satisfactory to the Company, and (b) during the portion of the Performance Period following termination of the Employee’s active employment, the Employee is in compliance with any-post employment restrictions in the ARCIPD and does not engage in any conduct that creates a conflict of interest in the opinion of the Company.

 

New Section 11:

 

11.                               In the event that termination of employment is due to the total and permanent disability of the Employee, all unvested portions of the PARSUs, including any amounts for dividend equivalent payments, shall vest based on performance at target levels and any such vested portion shall be delivered within 75 days of vesting.  The Company’s obligation to deliver the amounts that vest pursuant to this Section 11 is subject to the condition that (a) the Employee shall have executed a current ARCIPD that is satisfactory to the Company, and (b) during the portion of the Performance Period following termination of the Employee’s active employment, the Employee is in compliance with any-post employment restrictions in the ARCIPD and does not engage in any conduct that creates a conflict of interest in the opinion of the Company.ex109.htm

Exhibit 10.9

Schedule of Board Fees

The Compensation Committee and Board of Directors of Lakeland Financial Corporation adopted the following fee schedule effective January 1, 2016:

 

	
Annual Director Retainer:

	  	
$

	
25,000

	  	  
	
Annual Audit Committee Chairman Retainer:

	  	
$

	
35,000

	  	  
	
Annual Lead Director and Governance Committee Chairman Retainer:

	  	
$

	
35,000

	  	  
	
Annual Compensation Committee Chairman Retainer:

	  	
$

	
30,000

	  	  
	
Annual Corporate Risk Committee Chairman Retainer

	  	
$

	
30,000

	  	  
	
Board Meeting Fee:

	  	
$

	
1,000

	  	
per meeting

	
Committee Meeting Fee:

	  	
$

	
1,000

	  	
per meeting

	
Annual stock grant:

	  	  	
1,250

	  	
sharesExhibit

EXHIBIT 10.1

2016 Executive Annual Incentive Plan
Objectives 
The purpose of the LegacyTexas Financial Group, Inc. (“LegacyTexas” or the “Bank”) Executive Annual Incentive Plan (the “EIP”) is to motivate and reward senior executives for their contributions to the performance and success of the Bank. LegacyTexas's incentive plan focuses on the financial measures that are critical to the company's growth and profitability. This document summarizes the elements and features of the Plan. The objectives for LegacyTexas's Incentive Plan are as follows:
		
	•
	Recognize and reward achievement of Bank's annual business goals.

		
	•
	Motivate and reward superior performance.

		
	•
	Attract and retain talent needed to grow the Bank.

		
	•
	Be competitive with market.

		
	•
	Encourage teamwork and collaboration among the Bank's leadership and across business groups.

		
	•
	Increase engagement and commitment to the Bank

		
	•
	Ensure appropriate risk balance in plan design and governance policies. 

Plan Year
The annual incentive plan follows the Bank's fiscal year, January 1st to December 31st. 
Eligibility/Participation
Eligibility - Senior executive officers are eligible to participate. To participate in the plan, the employee should meet the following requirements: 
		
	•
	Employees hired after January 1st of the plan year will receive a pro-rata award based on the number of weeks employed during the plan year. 

		
	•
	Participants must be employed at the time of incentive distribution to receive an incentive award except death, disability and retirement.

Participation - Every year the participants will be proposed by CEO and approved by the Compensation Committee. For 2016, the participants include the NEOs and others as determined by the Compensation Committee.

Incentive Award Opportunity
Each participant will have a target award (expressed as a percentage of base earnings) and range that defines their incentive opportunity. Actual awards will be allocated based on specific performance goals defined for each participant and will range from 0% to 170% of target incentives. The table below summarizes target incentives for the 2016 plan year.
Annual Incentive Targets
	
					
	Role
	Below Threshold
	Threshold (50%)
	Target (100%)
	Maximum (170%)

	CEO
	0%
	25%
	60%
	85%

	Executive VPs
	0%
	20%
	40%
	68%

Performance Gate/Trigger
The threshold “gate” for participation in the Short term incentive plan is 85% of budgeted net income, excluding one-time, non-recurring charges such as those associated with a merger or acquisition. Any exclusions are approved by the Compensation Committee and ratified by the Board of Directors. Once the gate is achieved, the plan is “turned on” and payouts are then determined based on performance against four defined performance measures. No payments will be made if the gate is not met. The four performance goals are 1) net interest margin, 2) efficiency ratio, 3) return on equity and 4) non-performing assets to average total assets (see table below). Performance of these metrics is measured on a relative basis against the KBW NASDAQ Regional Bank Index, excluding non-exchange traded banks (e.g., OTCBB, Pink Sheet).

Performance Measures
The Incentive Plan will reward Bank performance as measured by Net Interest Margin, Efficiency Ratio, ROE and NPA/Avg. Assets. 
Performance will be measured on a relative basis against an Industry Index defined as the KBW NASDAQ Regional Bank Index excluding non-exchange traded banks (e.g. OTCBB, Pink Sheet). The index component companies will be determined at the end of performance period (e.g. 12/31/2016). 

	
					
	Performance Measure
	Performance Results and Payout
	Weight

	Threshold (50% payout)
	Target 
(100% payout)
	Stretch  
(150% payout)

	Net Interest Margin
	35th Percentile 
	50th Percentile 
	75th Percentile 
	25%

	Efficiency Ratio
	25%

	Return on Equity 
	25%

	NPAs/Average Assets
	25%

	Total
	 
	 
	 
	100%

Payouts
Performance will be assessed at the end of the fiscal year, with 100% of the awards calculated formulaically. Due to the financial data availability, the index financials will be measured based on trailing twelve months as of September 30 of the prior calendar year, while LegacyTexas's financials will be measured as of December 31. Actual payouts for each performance goal will be pro-rated between threshold and maximum levels to reward incremental improvement.
Performance of each specific goal (e.g. Net Interest Margin, Efficiency Ratio, ROE and NPA / Avg. Assets) is calculated independently to determine the payout for the goal. The sum of the awards for each performance measure determines the total incentive award. Payouts will be made in cash as soon as possible after the closing of Company financials each year and the Committee review and approve the results. 
Payouts will be made in cash at the completion of the annual performance period (January - December). Participants must be employed at the time of award in order to receive payment. Incentive compensation will be tracked and paid annually approximately 75 days following the conclusion of the company's fiscal year. In no event will a payment be paid later than March 15 of the following year. 
Each participant's payout is calculated on Base Earnings. Base earnings reflect the base salary actually earned during the course of the plan year. The actual incentive calculation is then based on each participant's performance goals as outlined above. 

Committee Discretion

The Compensation Committee reserves the right to apply negative discretion to the plan as needed to reflect business environment, market conditions that may affect the Bank's performance and incentive plan funding as well as overall risk and regulatory issues. The Committee also reserves the right to amend, modify and adjust payouts as necessary.

Illustration of Sample Performance Scorecard
Below is an illustration of how the plan might work. We assume net income exceeded 85 percent of budget to 
“turn the plan on”. Our illustration uses a sample base salary of $270,000 and an incentive target of 40% 
($108,000). Threshold payout opportunity equals 50% of target while stretch payout opportunity equals 170% of target. 
	
						
	Performance Goals
	Performance and Payout

	Performance Measures
	Weight
	$
	Actual Performance
	Payout Allocation 
(0% - 170%)
	Payout 
($)

	Net Interest Margin
	25%
	$27,000
	50th percentile (target)
	100%
	$27,000

	Efficiency Ratio
	25%
	$27,000
	35th percentile (threshold)
	50%
	$13,500

	ROE
	25%
	$27,000
	80th percentile (stretch)
	170%
	$45,900

	NPA / Avg. Assets
	25%
	$27,000
	57th percentile
(between target and stretch)
	120%
	$32,400

	Total
	100%
	$108,000
	 
	$118,800

This participant's payout of $118,800 is 110% of target. 

Terms and Conditions 

Participation
Senior executives are eligible to participate in the Plan. New employees will receive a prorated award. 

Effective Date
This program is a continuation of that plan originally adopted in 2013.  The plan is effective January 1, 2016 to reflect plan year January 1st to December 31st, 2016. The Plan will be reviewed annually by the Bank's Compensation Committee and Executive Management to ensure proper alignment with the Bank's business objectives. LegacyTexas retains the rights as described below to amend, modify or discontinue the Plan at any time during the specified period. The Incentive Plan will remain in effect each year until terminated or modified by LegacyTexas. 
Program Administration
The Program is authorized by the Board of Directors and administered by the Compensation Committee. The Compensation Committee has the sole authority to interpret the Plan and to make or nullify any rules and procedures, as necessary, for proper administration. Any determination by the Compensation Committee will be final and binding on all participants. 

Program Changes or Discontinuance
LegacyTexas has developed the Plan on the basis of existing business, market and economic conditions; current services; and staff assignments. If substantial changes occur that affect these conditions, services, assignments, or forecasts, LegacyTexas may add to, amend, modify or discontinue any of the terms or conditions of the Plan at any time. The Compensation Committee may, at its sole discretion, waive, change or amend any of the Plan as it deems appropriate. 
Incentive Award Payments
Awards will be paid in cash before the end of the first quarter following the Plan year. Awards will be paid out as a percentage of a participant's base earnings for the Plan year. Incentive awards will be considered taxable income to participants in the year paid and will be subject to withholding for required income and other applicable taxes.  Any rights accruing to a participant or his/her beneficiary under the Plan shall be solely those of an unsecured general creditor of LegacyTexas. Nothing contained in the Plan, and no action taken pursuant to the provisions hereof, will create or be construed to create a trust of any kind, or a pledge, or a fiduciary relationship between LegacyTexas or the Committee and the participant or any other person. Nothing herein will be construed to require LegacyTexas or the CEO to maintain any fund or to segregate any amount for a participant's benefit. In the event that an individual, who is due an incentive payout under the plan, terminates their employment with the Bank after the plan year and prior to the date the incentive is paid, that individual's incentive will be included in the pool and allocated to other participants of the plan.  
Program Funding
The Plan is funded and accrued based on Bank performance results for a given year. Achieving higher levels of performance will increase the Plan payouts to participants. Similarly, achieving less than target performance will reduce the Plan payouts. If the Bank does not achieve its threshold bank performance goal or the trigger performance requirement, the Plan will not be paid. 
New Hires, Reduced Work Schedules, Promotions, and Transfers
Participants who are not employed by LegacyTexas at the beginning of the Plan year will receive a pro rata incentive award based on their length of employment during a given year. Part time employees are eligible to participate. Their award percentage will reflect their base earnings based on actual hours worked. A participant whose work schedule changes during the year will be eligible for prorated treatment that reflects his/her time in the different schedules. If a participant changes his/her role or is promoted during the Plan year, he/she will be eligible for the new role's target incentive award opportunity on a pro rata basis (i.e. the award will be prorated based on the number of weeks employed in the respective positions.)
In the event of an approved leave of absence, the award opportunity level for the year will be adjusted to reflect the time in active status. For example, a participant on leave status for 13 weeks during a Plan year will have his or her calculated award reduced by one-fourth (13 weeks/52 weeks) to reflect the period of leave.
Termination of Employment
If a Plan participant is terminated by the Bank, no incentive award will be paid. To encourage employees to remain in the employment of LegacyTexas, a participant must be an active employee of the Bank on the date the incentive is paid to receive an award. (See exceptions for death, disability and retirement below.) 
Disability, Death or Retirement
If a participant is disabled by an accident or illness, and is disabled long enough to be placed on long-term disability, his/her bonus award for the Plan period shall be pro-rated for the time served.
In the event of death, LegacyTexas will pay to the participant's estate the pro-rated award that would have been earned by the participant for the time served.
Individuals who retire will receive the pro-rated payment for the time served. 

Ethics and Interpretation
If there is any ambiguity as to the meaning of any terms or provisions of this plan or any questions as to the correct interpretation of any information contained therein, the Bank's interpretation expressed by the Compensation Committee will be final and binding.
The altering, inflating, and/or inappropriate manipulation of performance/financial results or any other infraction of recognized ethical business standards, will subject the employee to disciplinary action up to and including termination of employment. In addition, any incentive compensation as provided by this plan to which the employee would otherwise be entitled will be revoked.
Participants who have willfully engaged in any activity, injurious to the Bank, will upon termination of employment, death, or retirement, forfeit any incentive award earned during the award period in which the termination occurred.
Clawback (Subject to change based upon the requirements of governing law or regulation)
If for any reason LegacyTexas has to restate its financial statements (as determined by the members of the Board of Directors who are considered “independent” for purposes of the listing standards of the NASDAQ), the Committee will take, in its sole discretion, such action as it deems necessary to take adjustments to the incentive awards earned during the current year and up to three years before the restatement. The Committee may require reimbursement of a bonus or incentive compensation awarded to current and past officers or cancel unvested restricted stock or other stock or stock-based awards previously granted to such officers in the amount by which such compensation exceeded any lower payment that would have been made based on the restated financial results.

Miscellaneous
The Plan will not be deemed to give any participant the right to be retained in the employ of LegacyTexas, nor will the Plan interfere with the right of LegacyTexas to discharge any participant at any time.
In the absence of an authorized, written employment contract, the relationship between employees and LegacyTexas is one of at-will employment. The Plan does not alter the relationship.
This incentive plan and the transactions and payments hereunder shall, in all respect, be governed by, and construed and enforced in accordance with the laws of the state of Texas.
Each provision in this Plan is severable, and if any provision is held to be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining provisions shall not, in any way, be affected or impaired thereby.

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