Document:

EX-10.27

EXHIBIT 10.27

AWARD NO.: _____________

ORIENTAL FINANCIAL GROUP INC.

2007 OMNIBUS PERFORMANCE INCENTIVE PLAN

RESTRICTED UNIT AWARD AND AGREEMENT

     This Restricted Unit Award and Agreement (the “Award”) is made and entered into on
this ___th day of                     , 20___, by and between Oriental Financial Group Inc. (the
“Corporation”) and                     (the “Grantee”). All capitalized
terms not otherwise defined herein shall have the meanings ascribed to them in the 2007 Omnibus
Performance Incentive Plan, as amended and restated (the “Plan”). Whenever appropriate,
words and terms used in the singular shall be deemed to include the plural, and vice versa, and the
masculine gender shall be deemed to include the feminine gender.

     WHEREAS, the Corporation has established and maintains the Plan to, among other things,
provide flexibility to the Corporation and its Affiliates to attract, retain and motivate their
directors, officers, and other key employees through the grant of awards based on performance and
to adjust their compensation practices to the best compensation practices and corporate governance
trends as they develop from time to time;

     WHEREAS, the Plan is further intended to motivate high levels of individual performance
coupled with increased shareholder returns;

     WHEREAS, the Plan is administered by the Compensation Committee of the Board of Directors of
the Corporation (the “Plan Administrators”);

     WHEREAS, Grantee is eligible to participate in the Plan; and

     WHEREAS, the Plan Administrators have determined that Grantee shall participate and receive
performance incentives under the Plan.

     NOW, THEREFORE, in consideration of the premises, and subject to the terms and conditions of
the Plan, the Corporation and Grantee agree as follows:

     SECTION 1. Award; Grantee Rights. The Corporation hereby awards                    
(                    ) Restricted Units (the “Restricted Units”) to Grantee for the acquisition of an
equal number of shares of Common Stock at the end of the Restricted Period. A Restricted Unit does
not represent an equity interest in the Corporation and carries not voting or dividend rights. The
Restricted Units may be forfeited to, and acquired at no cost by, the Corporation as set forth in
Sections 3 and 4 below.

     SECTION 2. Lapse of Restricted Period. Subject to Article X of the Plan regarding a
Change of Control, the Restricted Period shall commence on the date of this Award and shall lapse
in its entirety on the third anniversary of the date of this Award. Notwithstanding anything to
the contrary herein, upon the lapse of the Restricted Period, the Compensation Committee may, in
its sole discretion, elect to pay cash or part cash and part Common Stock in lieu of delivering
only Common Stock. If a cash payment is made in lieu of delivering Common Stock, the amount of
such cash payment for each share of Common Stock to which Grantee is entitled shall be equal to the
Fair Market Value of the Common Stock on the date on which the Restricted Period lapsed.

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     SECTION 3. Termination of Employment. The following provisions shall apply in the
event of Grantee’s termination of employment with the Corporation or any Affiliate:

	 	(a)	 	Due to Death. In the event Grantee’s employment terminates by reason
of his death, Grantee’s estate or beneficiaries shall receive a payment calculated in
the following manner: (i) the number of Restricted Units will be reduced by multiplying
the grant under this Award by a fraction, the numerator of which is the number of full
months in the applicable vesting period during which Grantee was an active employee and
the denominator of which is the number of months in the vesting period set forth in
Section 2 above (with a partial month worked counted as a full month if Grantee is an
active employee for 15 days or more in that month); and (ii) the resulting reduced
number of Restricted Units shall be considered vested and payment of such pro-rated
Award is to be made to Grantee’s beneficiaries or estate as soon as practicable after
Grantee’s termination of employment.
	 
	 	(b)	 	Due to Disability. In the event Grantee’s employment is terminated by
reason of his Disability, Grantee (or his estate or beneficiaries, if he subsequently
dies) shall receive a payment calculated in the following manner: (i) the number of
Restricted Units will be reduced by multiplying the grant under this Award by a
fraction, the numerator of which is the number of full months in the applicable vesting
period during which Grantee was an active employee and the denominator of which is the
number of months in the vesting period set forth in Section 2 above (with a partial
month worked counted as a full month if Grantee is an active employee for 15 days or
more in that month); and (ii) the resulting reduced number of Restricted Units shall be
considered vested and payment of such pro-rated Award is to be made to Grantee (his
beneficiaries or estate, if he subsequently dies) as soon as practicable after
Grantee’s termination of employment.
	 
	 	(c)	 	Due to Cause. In the event Grantee’s employment is terminated by the
Corporation or any Affiliate for Cause, the remaining Restricted Units shall be
forfeited at the time of such termination, and Grantee shall disgorge any profit, gain
or other benefit received in respect of the lapse of restrictions on any prior
Restricted Units for a period of twelve (12) months prior to the termination of his
employment for Cause. In the event Grantee’s employment is terminated by the
Corporation or any Affiliate for Cause, the provisions of this paragraph will apply
notwithstanding any assertion (by Grantee or otherwise) of a termination of employment
for any other reason enumerated under this Section.
	 
	 	(d)	 	Due to Resignation. In the event Grantee’s employment ends as a result
of his resignation from the Corporation or any Affiliate, any Restricted Units shall be
forfeited upon his termination of employment.

     SECTION 4. Termination of Non-Employee Director. In the event a Grantee’s service as
a Non-Employee Director shall terminate for reasons other than removal for Cause, Grantee (or his
estate or beneficiaries, if he subsequently dies) shall receive a payment calculated in the
following manner: (i) the number of Restricted Units will be reduced by multiplying the grant under
this Award by a fraction, the numerator of which is the number of full months in the applicable
vesting period during which Grantee was an active Non-Employee Director and the denominator of
which is the number of months in the applicable vesting period (with a partial month worked counted
as a full month if Grantee is an active Non-Employee Director for 15 days or more in that month);
and (ii) the resulting reduced number of Restricted Units shall be considered vested and payment of
such pro-rated Awards is to be made to Grantee (or his or her beneficiaries or estate, if he
subsequently dies) as soon as practicable after his termination as a Non-Employee Director. In the
event Grantee’s service as a Non-Employee Director is terminated for Cause, any remaining
Restricted Units granted to him shall be forfeited at the time of such termination, and Grantee
shall disgorge any profit, gain or other benefit received in respect of the lapse of restrictions
on any prior Restricted Units for a period of twelve (12) months prior to his termination for
Cause. In the event Grantee’s service as a Non-Employee Director is terminated for Cause, the
provisions of this paragraph will apply notwithstanding any assertion (by Grantee or otherwise) of
a termination for any other reason.

     SECTION 5. Transferability of Award. This Award may not be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution. No transfer of this Award by will or by the laws of descent and
distribution shall be effective to bind the Corporation unless the Corporation shall have been
furnished with written notice thereof and a copy of the will and/or such other evidence as the
Board or the Plan Administrators may determine necessary to establish the validity of the transfer.

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     SECTION 6. Miscellaneous Provisions.

	 	(a)	 	This Award is subject to the terms of the Plan, which are incorporated herein
by reference.
	 
	 	(b)	 	The laws of the Commonwealth of Puerto Rico shall be controlling in all matters
relating to this Award.
	 
	 	(b)	 	The titles and captions in this Award are used only for convenience and are not
to be used in its interpretation.

     IN WITNESS WHEREOF, the Corporation and Grantee have duly executed this Award on the date
first above written.

	 	 	 	 	 
	ORIENTAL FINANCIAL GROUP INC.

	 	 	     GRANTEE	 
	 
	 	 	 	 
	By:  

Name:

	 	 	By:  

     Name:	 
	Title:

	 	 	     Title:	 

3EX-10.26

Exhibit 10.26

AMENDED AND RESTATED

COMMUNITY FIRST BANK AND TRUST

MANAGEMENT INCENTIVE COMPENSATION PLAN

Objective

	A.	 	To maximize the Bank’s long term profitability and the return on shareholders
equity.
	 
	B.	 	To promote teamwork among members of management and to encourage superior
individual performance.
	 
	C.	 	To provide management the ability to earn incentive compensation proportional
to the Bank’s success and their individual contributions.

Eligibility

All senior officers of the Bank may be eligible for consideration as plan participants.
Actual participation will be recommended by Senior Bank Management and approved by the Board
of Directors. To be recommended an individual participant must:

	1.	 	be performing in a fully satisfactory manner; and
	 
	2.	 	hold a position appropriate for the use of incentive compensation.

Participation Groups

The plan will have three groups of participants based upon level of management
responsibilities.

Plan Components

The Management Incentive Compensation Plan has two components:

	1.	 	The Bank and/or unit performance measurement; and
	 
	2.	 	The individual measurement.

Individual Awards

Individual awards are expressed as a percentage of each individual’s base salary as of
December 31 of the plan year, and are payable by virtue of Bank and/or Branch performance.

If approved for participation, an employee hired during the plan year will be eligible to
receive partial incentive compensation based upon the base salary at time of eligibility and
the period remaining in the plan year. No payment will be made for participation of less
than two months of the plan year.

 

 

A.    Ineligibility During Plan Period

An individual participant who becomes ineligible during the plan year for any reason other
than normal retirement as defined in the Bank’s retirement plan, death or disability, will
cease to participate in the plan and will not receive any incentive payment for the period
of eligibility.

B.    Calculation of Performance Targets

All performance targets will be calculated on an after bonus basis.

C.    Distribution of Awards

Payments will be made upon recommendation by Senior Bank Management and approval of the
Board of Directors and shall occur between January 1 and March 15 following the completion
of the management incentive compensation year. Any undistributed funds will revert to the
Bank and the fund will terminate.

D.    Termination of Employment

Except as specifically provided below, to receive payment an employee must be an active
employee at the end of the management incentive compensation year.

E.    Retirement

A participant in the plan who has been employed during the entire plan year, but who is
retired, as defined in the Bank’s retirement plan, at the time the awards are paid, will be
eligible for full management incentive compensation payment. Employees retiring prior to the
end of the plan year will be eligible for pro-rata participation based upon Bank and/or
Branch performance for the plan year, the employee’s individual performance, and the time of
the employee’s active participation in the plan, provided such participation is at least two
months.

F.    Leave of Absence or Disability

A participant in the plan who becomes disabled, as defined in the Bank’s long-term
disability plan, or who, for other reasons, must take a leave of absence during the plan
year may, at the discretion of Bank management, be eligible to receive partial management
incentive compensation. Such award, if approved, will be based upon Bank and/or Branch
performance for the plan year, the employee’s individual performance, and the time of the
employee’s active participation in the plan, provided such participation is at least two
months.

G.    Death

The estate of a participant in the plan who has been employed during the entire plan year,
but who dies prior to the time the awards are paid, will be eligible to receive full
management incentive compensation payment. The estate of employees dying prior to the end of
the plan year will be eligible to receive pro-rata participation based upon Bank

 

 

and/or Branch performance for the plan year, the employee’s individual performance, and the
time of the employee’s active participation in the plan, provided such participation is at
least two months.

H.    Amendments

The Bank reserves the rights to change, modify, or terminate this plan, with or without
notice, in whole or in part, at any time. However, if the decision is ever made to change,
modify, or terminate the plan, then, incentive compensation earned prior to the date the
decision to change, modify, or terminate the plan is made, will be pro-rated and paid
accordingly.

I.    General Information

No individual employee or other person has any claim to be included in the plan or to be
paid management incentive compensation under the plan until said individual has been
declared an eligible participant by Senior Bank Management and approved by the Board of
Directors. In addition, all of the applicable provisions of the Management Incentive
Compensation Plan must have been met, including the availability of funds, the determination
of the extent to which goals have been met, and the individual performance evaluation.

General Program Provisions

A.    Administration of the Plan

Senior Bank Management has full power and final authority to construe, interpret, and
administer the plan. No member of management shall be personally liable for damage, in the
absence of bad faith, for any act or omission with respect to the operation or
administration of the plan.

B.    Eligibility During Plan Period

Any employee, who becomes eligible for participation in the plan due to employment or
promotion during the plan year, will be considered for inclusion in a participant group
consistent with the employee’s assigned position.

If approved for participation, the employee will be eligible to receive partial incentive
compensation based upon the base salary at time of eligibility and the period remaining in
the plan year. No payment will be made for participation of less than two months of the plan
year.

C.    Ineligibility During Plan Period

An individual participant who becomes ineligible during the plan year for any reason other
than normal retirement as defined in the Bank’s retirement plan, death or disability, will
cease to participate in the plan, and will not receive any incentive payment for the period
of eligibility.

 

 

D.    Calculation of Performance Targets

All performance targets will be calculated on an after bonus basis.

E.    Distribution of Awards

Payments will be made upon approval by Senior Bank Management and shall occur between
January 1 and March 15 following the completion of the incentive compensation year. Any
undistributed funds will revert to the Bank and the fund will terminate.

F.    Termination of Employment

Except as specifically provided below, to receive payment an employee must be an active
employee at the end of the incentive compensation year.

G.    Retirement

A participant in the plan who has been employed during the entire plan year, but who is
retired, as defined in the Bank’s retirement plan, at the time the awards are paid, will be
eligible for full incentive compensation payment. Employees retiring prior to the end of
the plan year will be eligible for pro-rata participation based upon Branch performance for
the plan year, the employee’s individual performance, and the time of the employee’s active
participation in the plan, provided such participation is at least two months.

H.    Leave of Absence or Disability

A participant in the plan who becomes disabled, as defined in the Bank’s long-term
disability plan, or who, for other reasons, must take a leave of absence during the plan
year may, at the discretion of Bank management, be eligible to receive partial incentive
compensation. Such award, if approved, will be based upon Branch performance for the plan
year, the employee’s individual performance, and the time of the employee’s active
participation in the plan, provided such participation is at least two months.

I.    Death

The estate of a participant in the plan who has been employed during the entire plan year,
but who dies prior to the time the awards are paid, will be eligible to receive full
incentive compensation payment. The estate of employees dying prior to the end of the plan
year will be eligible to receive pro-rata participation based upon Branch performance for
the plan year, the employee’s individual performance, and the time of the employee’s active
participation in the plan, provided such participation is at least two months.

J.    Amendments

The Bank reserves the rights to change, modify, or terminate this plan, with or without
notice, in whole or in part, at any time. However, if the decision is ever made to change,
modify, or terminate the plan, then, incentive compensation earned prior to the date the

 

 

decision to change, modify, or terminate the plan is made, will be pro-rated and paid
accordingly.

K.    General Information

No individual employee or other person has any claim to be included in the plan or to be
paid incentive compensation under the plan until said individual has been declared an
eligible participant by Senior Bank Management. In addition, all of the applicable
provisions of the Management Incentive Compensation Plan must have been met, including the
availability of funds, the determination of the extent to which goals have been met, and the
individual performance evaluation.

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