Document:

FIRST DEFIANCE FINANCIAL CORP.

2010 EQUITY INCENTIVE PLAN 

 

RESTRICTED STOCK 

AWARD AGREEMENT

 

First Defiance Financial Corp. (the “Company”)
hereby grants the undersigned Participant an Award consisting of Shares of Restricted Stock in the Company, subject to the terms
and conditions described in the First Defiance Financial Corp. 2010 Equity Incentive Plan (the “Plan”) and this
Restricted Stock Award Agreement (this “Award Agreement”).

 

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

 

		2.	Grant Date: _________________ (the “Grant Date”).

 

		3.	Award of Restricted Stock: The Award consists of ______ Shares of Restricted Stock.

 

		4.	Vesting: Subject to the provisions of this Award Agreement, the Award shall vest _________________
(the “Vesting Date”).

 

		5.	Limitations on Vesting: If the Participant’s employment terminates for any reason
prior to the Vesting Date, the Participant shall forfeit the Award. Notwithstanding the foregoing:

 

		(a)	Death or Disability: In the event of the Participant’s death or Disability prior to
the Vesting Date, the Award shall become immediately vested as of the date of death or Disability.

 

		(b)	Change in Control: If a Change in Control of the Company occurs
prior to the Vesting Date and the Participant is terminated by the Company, other than for Cause, immediately prior to or
within six months after such Change in Control, the Award shall become immediately vested.

 

		6.	Settlement: If the applicable terms and conditions of this Award Agreement are satisfied,
the Shares of Restricted Stock shall be released from any transfer restrictions or delivered to the Participant as soon as practicable,
but not later than 30 days after all applicable restrictions have lapsed.

  

		7.	Miscellaneous: 

 

		(a)	Non-Transferability. The Shares of Restricted Stock subject to the Award may not
be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, except by will or the laws of descent and distribution.

 

		(b)	Beneficiary. Unless otherwise specifically designated by the Participant in writing,
the Participant’s beneficiary shall be the Participant’s spouse or, if no spouse survives the Participant, 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 the 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, shall 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 Award. 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 and 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 shall be irrevocable and made in writing and shall be subject to any terms and conditions that the Committee, in
its sole discretion, deems appropriate.

  

		(e)	Requirements of Law. The grant of the Award 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 the Award Agreement 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.

 

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		(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. For purposes
of Section 409A of the Code, each payment of compensation under the Award Agreement shall be treated as a separate payment of compensation.
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 follows]

 

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PARTICIPANT

 

	 	 	Date:	 	 
	Signature	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Print Name	 	 	 	 

 

	FIRST DEFIANCE FINANCIAL CORP.	 	 	 	 
	 	 	 	 	 	 
	By:	     	 	Date:	 	 
	 	 	 	 	 	 
	Its:	 	 	 	 	 

 

    	4CONSULTING AGREEMENT

 

This Consulting Agreement
is made and entered into as of the 1st day of January, 2014 (the “Effective Date”), among First Defiance Financial
Corp. (“First Defiance”), an Ohio-chartered corporation and savings and loan holding company, First Federal Bank of
the Midwest (“First Federal”), a federally-chartered stock savings bank, both of which are located in Defiance, Ohio,
and William J. Small (the “Consultant”). First Defiance and First Federal are referred to jointly herein as the “Companies.”

 

WITNESSETH:

 

WHEREAS, the
Consultant previously provided services to the Companies until the Consultant’s termination of employment effective December
31, 2013 (the “Separation Date”) and the Companies desire to enter into this Agreement whereby the Consultant will
provide consulting services to the Company following the Separation Date; and

 

NOW, THEREFORE,
in consideration of the mutual agreements herein contained, and upon the other terms and conditions hereinafter provided, the parties
hereby agree as follows:

 

Section 1.             Term of the Agreement.

 

The initial term of
this Agreement shall run for the first 12 months following the Effective Date. This Agreement may be renewed in the sole discretion
of the Companies’ Boards of Directors for two additional one year terms (together with the initial term, the “Term”).
The Companies or the Consultant may terminate this Agreement at anytime upon 30 days’ prior notice. In the event that this
Agreement is terminated during a Term, First Defiance shall pay Consultant all consideration due through the date of termination.
The Companies may terminate this Agreement immediately for “Cause.” For purposes of this Agreement, “Cause”
shall mean personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional
failure to perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar offenses)
or final cease-and-desist order or material breach of any provision of this  Agreement.  For purposes of this
paragraph, no act or failure to act on the Consultant’s part shall be considered “willful” unless done, or omitted
to be done, by the Consultant not in good faith and without reasonable belief that the Consultant’s action or omission was
in the best interest of the Companies.

 

Section 2.             Consulting
Services.

 

During the Term, the
Consultant shall perform such consulting services on behalf of the Companies as may be requested of the Consultant by the Companies’
Boards of Directors to assist in the transition of the Consultant’s former duties and responsibilities to other associates
of the Companies; analysis of potential merger and acquisition opportunities; building relationships with customers, the community
and potential acquisition targets; business development; succession planning; and such other projects as the Companies may reasonably
request from time to time (the “Services”). Consultant will adhere to commercially reasonable standards of professional
conduct and performance in carrying out his responsibilities under the terms of this Agreement and in providing the Services. Notwithstanding
the foregoing, the parties agree that during the Term, the Companies shall not request that the Consultant perform, and the Consultant
shall not be obligated to perform, Services at such a level, as reasonably determined by the Consultant in the Consultant’s
sole discretion, that the Consultant would not be deemed to have “separated from service” from the Companies within
the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).

 

    	 

    	 

    

 

Section 3.             Nature of Relationship.

 

(a)             It is expressly understood and
agreed by the parties that the Consultant shall provide the Services described above as an independent contractor to the Companies
and that the Consultant is not and shall not be considered an associate of the Companies or any affiliate. Nothing in this Agreement
shall be construed to confer upon the Consultant the status of an associate or agent of the Companies (or any affiliate) or any
of the rights thereof, nor shall either party have any authority to bind the other in any respect, it being intended that each
shall remain an independent contractor responsible for their own actions. Nothing contained in this Agreement shall be construed
or applied to create a partnership or joint venture between the Companies and the Consultant or their respective affiliates.

 

(b)             The Companies agree not to exert
or retain control of, or the right to control, the terms, mode and manner of the services to be performed by the Consultant. Nothing
herein shall restrict the right of the Consultant to perform services for any other person or entity as long as the performance
of such services does not entail representing any person or entity that may have a conflict of interest with the Companies or one
of its affiliates and does not entail or create the possibility of a breach of any ethical or similar obligation the Consultant
has or may have to the Companies and their affiliates.

 

Section 4.             Agreement
Consideration.

 

(a)             In consideration of the obligations
and commitments of the Consultant under this Agreement, First Defiance or First Federal shall pay the Consultant during the initial
term $100,000, payable in 12 monthly installments of $8,333.33, and, during any subsequent term, $85,000, payable in 12 monthly
installments of $7,083.33.

 

(b)             During the Term, First Defiance or
First Federal shall also (i) pay membership dues for the Consultant for membership in professional organizations that are approved
by the Board of Directors of First Defiance from time to time; and (ii) provide Consultant with office space, a laptop, IPad and
cell phone.

 

(c)             The Consultant shall be solely
responsible for the payment of any and all federal, state and local income taxes, employment taxes, workers’ compensation
taxes and assessments and any other taxes or assessments required to be paid with respect to this compensation.

 

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Section 5.             Confidentiality.

 

The Consultant agrees
that confidential information of any nature acquired by the Consultant regarding the Companies’ business or business operations,
including specifically any information or property acquired or created in connection with providing the Services, is and shall
be considered confidential and shall be held in the strictest confidence. Without limiting the generality of the foregoing, any
and all information so obtained shall not be divulged, furnished or made accessible to any third party without the prior written
permission of the Companies, and the Consultant shall stipulate, consent and agree to protect any such information from disclosure
to third parties (including consenting to the sealing of records and the issuance of appropriate protective orders) in the event
of a dispute. Upon termination of this Agreement, the terms of this Section 5 shall remain in effect indefinitely. 

 

Section
6.             Notices.

 

Except
as otherwise provided in this Agreement, any notice required or permitted to be given under this Agreement shall be deemed properly
given if in writing and if mailed by registered or certified mail, postage prepaid with return receipt requested as follows:

 

	To First Defiance:	First Defiance Financial Corp.
	 	601 Clinton Street
	 	Defiance, Ohio 43512
	 	 
	To First Federal:	First Federal Bank of the Midwest
	 	601 Clinton Street
	 	Defiance, Ohio 43512
	 	 
	To the Consultant:	William J. Small
	 	__________________
	 	__________________

 

or
to such other address as either party may provide the other in writing.

			

 

Section 7.             Waiver.

 

No
provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in
writing and signed by all parties to the Agreement. No waiver by either party hereto at any time of any breach by the other party
hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 

 

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Section 8.             Assignment.

 

This Agreement shall
inure to the benefit of and be binding upon the Company and its successors and assigns. The rights and obligations of the Consultant
hereunder may not be delegated, assigned or otherwise transferred.

 

Section
9.             Entire Agreement.

 

This
Agreement represents the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior
understandings, written or oral. The terms of this Agreement may be changed, modified, or discharged only by an instrument in writing
signed by each of the parties hereto. Notwithstanding the foregoing, the specific arrangements referred to herein are not intended
to exclude any other benefits that may be available to the Consultant upon his termination of employment with the Companies pursuant
to employee benefit plans of the Companies or otherwise.

 

Section 10.             Validity.

 

The invalidity or unenforceability
of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which
shall remain in full force and effect.

 

Section 11.             Governing
Law.

 

This
Agreement shall be governed by and construed and enforced in accordance with laws of the State of Ohio, except to the extent that
federal law controls, and applied without regarding to any conflicts of laws principles.

 

Section 12.             Counterparts.

 

This Agreement may
be executed in two or more counterparts, each of which shall be deemed an original, and all of which shall constitute one and the
same Agreement.

 

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

 

	Attest:	 	FIRST DEFIANCE FINANCIAL CORP.
	 	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	Attest:	 	FIRST FEDERAL BANK OF THE MIDWEST
	 	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	Witness:	 	CONSULTANT
	 	 	 	 
	 	 	 
	 	 	William J. Small

  

    	-5-

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