Document:

EXHIBIT 10.4

  

  

  

  

  

  

  

  FORM OF

  NON-QUALIFIED STOCK OPTION AWARD AGREEMENT

  

  

  Granted by

  

  

  KEARNY FINANCIAL CORP.

  

  

  under the

  

  

  KEARNY FINANCIAL CORP.

  2021 EQUITY INCENTIVE PLAN

  

  

  This stock option agreement (“Option”
    or “Agreement”) is and will be subject in every respect to the provisions of the 2021 Equity Incentive Plan (the “Plan”) of Kearny Financial Corp. (the “Company”), which are incorporated
    herein by reference and made a part hereof, subject to the provisions of this Agreement.  A copy of the Plan and related prospectus have been provided to each person granted a stock option pursuant to the Plan.  The holder of this Option (the “Participant”) hereby accepts this Option, subject to all the terms and provisions of the Plan and this Agreement, and agrees that all decisions under and
    interpretations of the Plan and this Agreement by the committee appointed to administer the Plan (the “Committee”) or the Board of Directors will be
    final, binding and conclusive upon the Participant and the Participant’s heirs, legal representatives, successors and permitted assigns.  Except where the context otherwise requires, the term “Company” includes the parent and all present and future
    subsidiaries of the Company as defined in Section 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended from time to time (the “Code”). 
    Capitalized terms used herein but not defined will have the same meaning as in the Plan.

  

    	1.	
            Name of Participant:__________________

          

  

  

  

  
    	2.	
            Date of Grant:  __________, 20      .

          

  

   

  
    

    

    

  
    	
            3.

          	
            Total number of shares of Company
                common stock, $0.01 par value per share, that may be acquired pursuant to this Option:________

              (subject to adjustment pursuant to Section 9 hereof).

             

            

          

  

  
    	
            •

          	
            This is a Non-Qualified Stock Option.

          

  

  

    	4.	
            
              Exercise price per share: $
                  _______

              (subject to adjustment pursuant to Section 9 below)

            

          

  

  

  	5.	
          Expiration Date of Option:  _________, 20      .  Notwithstanding anything in this Agreement to the contrary, no part of this Option may be exercised at any time on or after the expiration date.

           

          

        

  	6.	
          Vesting Schedule.  Unless sooner vested in accordance with the
            terms of the Plan and this Agreement, the Option granted hereunder will vest (i.e., become exercisable) in accordance with the following schedule:

           

          

        

  Vesting Date Number of Shares Exercisable

  

  

  

  

  As set forth in Section 10 of this Agreement, vesting will automatically accelerate pursuant to Sections 2.5, 2.7 and 4.1 of the Plan
    in the event of death or Disability or an Involuntary Termination at or following a Change in Control.

  
    
      

  

  
  	7.	
          Exercise Procedure and Delivery of Notice of Exercise of Option. 
            This Option may be exercised in whole or in part by the Participant’s delivery to the Company of written notice (the “Notice of Exercise of Option”
            attached hereto as Exhibit A or as otherwise acceptable to the Company) setting forth the number of shares with respect to which this Option is to be exercised, together with payment by cash or other means acceptable to the Committee, in
            accordance with Section 2.2(b) of the Plan.

           

          

        

  	8.	
          Delivery of Shares.  Delivery of shares of Stock upon the exercise
            of this Option will comply with all applicable laws (including the requirements of the Securities Act) and the applicable requirements of any securities exchange or similar entity.

        

  

    	9.	
            Adjustment Provisions.

          

  

  

  

  This Option, including the number of shares subject to the Option and the exercise price, will be adjusted upon
    the occurrence of the events specified in, and in accordance with the provisions of, Section 3.4 of the Plan.

  

    	10.	
            Accelerated Vesting and Exercisability Period.

          

  

  

    

  The vesting of this Option will accelerate as set forth in the following  provisions:

   

  

  
    	
            (i)

          	
            Death.  In the event of the Participant’s
              Termination of Service by reason of death, any unvested portion of the Option subject to this Agreement will vest and any unexercised portion of the Option may thereafter be exercised by the Participant’s legal representative or beneficiaries
              for a period of one (1) year from the Participant’s death.

             

            

          

  

  
    	
            (ii)

          	
            Disability.  In the event of the
              Participant’s Termination of Service by reason of the Participant’s Disability, any unvested portion of this Option will vest and any unexercised portion of the Option may thereafter be exercised by the Participant or the Participant’s legal
              representative for a period of one (1) year following the Termination of Service due to Disability.

             

            

          

  

  
    	
            (iii)

          	
            Change in Control.  In the event of the
              Participant’s Involuntary Termination at or following a Change in Control, any unvested portion of the Option will vest and any unexercised portion of the Option may be exercised by the Participant or the Participant’s legal representative
              for a period of one (1) year following the Participant’s Involuntary Termination.

          

  

  

  

  
    	
            (iv)

          	
            Retirement.  In the event of the
              Participant’s Termination of Service by reason of the Participant’s Retirement, vested Options may be exercised for a period of one (1) year from the date of Termination of Service. Options that have not vested will expire and be forfeited on
              the date of Termination of Service by reason of Retirement.  “Retirement” shall have the meaning set forth in Section 2.7(a) of the Plan.

          

  

  

  

  
    	
            (v)

          	
            Termination for Cause.  In the event of the Participant’s Termination of Service for Cause, all Options subject to this Agreement that have not been exercised will immediately
              expire and be forfeited.

          

  

  

  

  	

        	(vi)	
          Other Termination.  In the event of the Participant’s Termination from Service for any reason other than due to death, Disability, Involuntary Termination at or following a Change in Control or for Cause,
            this Option may thereafter be exercised, only to the extent it was exercisable at the time of the termination and only for a period of three (3) months following the termination.

        

  
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    	11.	
            Miscellaneous.

          

  

  

  

  	

        	11.1	
          No Option will confer upon the Participant any rights as a stockholder of the Company prior to the date on which the individual fulfills all conditions for receipt of
            such rights.

        

  

  

  	

        	11.2	
          This Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Participant.

        

  

  

  	

        	11.3	
          At the discretion of the Committee, a Non-Qualified Option granted under the Plan may be transferable by the Participant, provided, however, that transfers will be
            limited to Immediate Family Members of Participants, trusts and partnerships established for the primary benefit of such family members or to charitable organizations, and provided, further, that the transfers are not made for consideration to
            the Participant.

        

  

  

  	

        	11.4	
          This Agreement will be governed by and construed in accordance with the laws of the State of New Jersey.

        

  

  

  	

        	11.5	
          This Option will be subject to any required federal, state and local tax withholding, which may be effected in the manner or manners permitted by the Company.

           

          

        

  	

        	11.6	
          The granting of this Option does not confer upon the Participant any right to be retained in the service of the Company or any subsidiary.

        

  

  

  	

        	11.7	
          This Option is subject to forfeiture in accordance with the provisions of Section 7.16 of the Plan or as otherwise adopted by the Company.

        

  

  

  [Signature Page to Follow]

  
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  IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in its name and on its behalf as of the date
    of grant of this Option set forth above.

  KEARNY FINANCIAL CORP.

  By: ______________________

  Its: ______________________

  

  

  PARTICIPANT’S ACCEPTANCE

  The undersigned hereby accepts the foregoing Option and agrees to the terms and conditions hereof, including the
    terms and provisions of the Plan.  The undersigned hereby acknowledges receipt of a copy of the Plan and related prospectus.

  PARTICIPANT

   

  

   

  

   

  

  __________________________

  

  

  

  

  

   

  

  

  

  
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  EXHIBIT A

  NOTICE OF EXERCISE OF OPTION

  

  

  I hereby exercise the stock option (the “Option”) granted to me by Kearny Financial Corp. (the “Company”) or its affiliate, subject to all
    the terms and provisions set forth in the Non-Qualified Stock Option Agreement (the “Agreement”) and the Kearny Financial Corp. 2021 Equity Incentive Plan (the “Plan”) referred to therein, and notify you of my desire to purchase __________________
    shares of common stock of the Company (“Common Stock”) for a purchase price of $______ per share.

  

  

  I elect to pay the exercise price by:

  

  

  	

        	___	
          Cash or personal, certified or cashier’s check in the sum of $_______, in full/partial payment of the purchase price.

        

  	

        	___	
          Stock of the Company with a fair market value of $______ in full/partial payment of the purchase price.*

        

  	

        	___	
          My check in the sum of $_______ and stock of the Company with a fair market
            value of $______, in full/partial payment of the purchase price.*

        

  

  

  	

        	___	
          A net settlement of the Option, using a portion of the shares obtained on exercise in payment of the exercise price of the Option (and, if applicable, any minimum
            required tax withholding).

        

  	

        	___	
          Selling  ______ shares from my Option shares through a broker in full/partial payment of the purchase price.

        

  I understand that after this exercise, ____________ shares of Common Stock remain subject to the Option, subject to
    all terms and provisions set forth in the Agreement and the Plan.

  I hereby represent that it is my intention to acquire these shares for the following purpose:

  ___ investment

  ___ resale or distribution

  

  

  Please note: if your intention is to resell (or distribute within the meaning of Section 2(11) of the Securities Act
    of 1933) the shares you acquire through this Option exercise, the Company or transfer agent may require an opinion of counsel that such resale or distribution would not violate the Securities Act of 1933 prior to your exercise of such Option.

  Date: ____________, _____.                      _________________________________________

  Participant’s signature

  

  

  * If I elect to exercise by exchanging shares I already own, I will constructively
      return shares that I already own to purchase the new option shares.  If my shares are in certificate form, I must attach a separate statement indicating the certificate number of the shares I am treating as having exchanged.  If the shares are held
      in “street name” by a registered broker, I must provide the Company with a notarized statement attesting to the number of shares owned that will be treated as having been exchanged.  I will keep the shares that I already own and treat them as if they
      are shares acquired by the option exercise.  In addition, I will receive additional shares equal to the difference between the shares I constructively exchange and the total new option shares that I acquire.

  5EXHIBIT 10.5

  

  

  

  

  

  

  FORM OF

  PERFORMANCE-BASED

  RESTRICTED STOCK AWARD

  

  

  Granted by

  

  

  KEARNY FINANCIAL CORP.

  

  

  under the

  

  

  KEARNY FINANCIAL CORP.

  2021 EQUITY INCENTIVE PLAN

  

  

  This restricted stock agreement (“Restricted Stock Award” or “Agreement”) is and will be subject in
    every respect to the provisions of the 2021 Equity Incentive Plan (the “Plan”) of Kearny Financial Corp. (the “Company”) which are incorporated herein by reference and made
    a part hereof, subject to the provisions of this Agreement.  A copy of the Plan has been provided or made available to each person granted a Restricted Stock Award pursuant to the Plan.  The holder of this Restricted Stock Award (the “Participant”) hereby accepts this Restricted Stock Award, subject to all the terms and provisions of the Plan and this Agreement, and agrees that all decisions under and interpretations of the Plan and this Agreement
    by the Committee appointed to administer the Plan (“Committee”) or the Board will be final, binding and conclusive upon the Participant and the Participant’s heirs, legal representatives, successors and permitted
    assigns.  Except where the context otherwise requires, the term “Company” will include the parent and all present and future subsidiaries of the Company as defined in Section 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended from time
    to time (the “Code”).  Capitalized terms used herein but not defined will have the same meaning as in the Plan.  Any reference to the “Bank” herein shall refer to Kearny Bank and any reference to “Employer” shall
    mean either or both the Company and the Bank.

  

    	
            1.

          	
            Name of Participant: ___________________________

          

  

  

     

      

  
    	
            2.

          	
            Date of Grant: ___________________________

          

    

     

      

  
    	
            3.

          	
            Total number of shares of Company common stock, $0.01 par value per share, covered by the Restricted Stock Award:______

              (subject to adjustment pursuant to Section 9 hereof).

             

            

          

  

  
    	
            4.

          	
            Vesting Schedule.  Except as otherwise provided in this Agreement, this Restricted Stock Award first becomes
              earned in accordance with the vesting schedule specified in Exhibit A attached to this Agreement.  The Participant must be employed as of the applicable [DATE] following the applicable fiscal year end to vest and to receive the number of
              shares calculated in accordance with this Agreement and Exhibit A.

             

            

          

  

  In addition, vesting will automatically accelerate pursuant to Sections 2.5, 2.7 and 4.1 of the Plan (in the event of death, Disability or Involuntary Termination at or following a
    Change in Control).

  
    
      

  

  
  

    	5.	
            Grant of Restricted Stock Award.

          

  

  

  

  The Restricted Stock Award will be in the form of issued and outstanding shares of Stock that will be either registered in the name of the Participant and held by the Company,
    together with a stock power executed by the Participant in favor of the Company, pending the vesting or forfeiture of the Restricted Stock, or registered in the name of, and delivered to, the Participant.  Notwithstanding the foregoing, the Company
    may, in its sole discretion, issue Restricted Stock in any other format (e.g., electronically or through book entry) in order to facilitate the paperless transfer of such Awards.  The Restricted Stock awarded to the Participant will not be sold,
    encumbered, hypothecated or otherwise transferred except in accordance with the terms of the Plan and this Agreement.

   

  

  	6.	
          Terms and Conditions.

           

          

        

  	

        	6.1	
          The Participant will have the right to vote the shares of Restricted Stock awarded hereunder on matters which require shareholder vote.

           

          

        

  	

        	6.2	
          Any cash dividends or distributions declared with respect to shares of Stock subject to the Restricted Stock Award will be delayed and distributed to the Participant within thirty (30) days after the Restricted Stock
            Award vests.  If the shares of Stock do not vest, the dividends held by the Company with respect to the Stock shall be forfeited by the Participant. No dividend will be paid with respect to any Restricted Stock Award subject to
            performance-based vesting conditions unless and until the Participant vests in such Restricted Stock Award.  Upon vesting of Restricted Stock granted as a Performance Award, any cash dividends declared but not paid tot the Participant during
            the vesting period shall be paid, without interest, within thirty (30) days after the vesting date. Any stock dividends declared on shares of Stock subject to a Restricted Stock Award will be subject to the same restrictions and will vest at
            the same time as the shares of Restricted Stock from which said dividends were derived.

        

   

  

  
    	7.	
            Delivery of Shares.

          

  

   

  

  Delivery of shares of Stock under this Restricted Stock Award will comply with all applicable laws (including, the requirements of the Securities Act), and the applicable
    requirements of any securities exchange or similar entity.

  

    	8.	
            Change in Control.

          

  

  

  

  	

        	8.1	
          In the event of an Involuntary Termination at or following a Change in Control, a prorated portion of any Performance Awards will vest based on actual performance measured as of the most recent completed fiscal
            quarter.  If actual performance cannot be determined, a prorated portion of the Performance Awards will vest at the target performance level. The pro-rata portion will be calculated based on a number of months worked during the performance
            period as a percentage of the total performance period.

        

  
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        	8.2	
          A “Change in Control” will be deemed to have occurred as provided in Section 4.2 of the Plan.

        

  

    	9.	
            Adjustment Provisions.

          

  

  

    

  This Restricted Stock Award, including the number of shares subject to the Restricted Stock Award, will be adjusted upon the occurrence of the events specified
    in, and in accordance with the provisions of, Section 3.4 of the Plan.

  

    	10.	
            Effect of Termination of Service on Restricted Stock Award.

          

  

  

    

  10.1 This Restricted
      Stock Award will vest as follows:

   

    

  
    	
            (i)

          	
            Death.  In the event of the Participant’s Termination of Service by reason of the Participant’s death, all Awards will vest, pro rata, by multiplying
              (i) the number of Awards that would be obtained based on achievement at target (or if actual achievement of the performance measures is greater than the target level, at such actual achievement level) as of the date of death, by (ii) a
              fraction, the numerator of which is the number of whole months the Participant was in Service during the performance period and the denominator of which is the number of months in the performance period.

             

            

          

  

  
    	
            (ii)

          	
            Disability.  In the event of the Participant’s Termination of Service by reason of
                Disability, all Awards will vest, pro rata, by multiplying (i) the number of Awards that would be obtained based on achievement at target (or if actual achievement of the performance measures is greater than the target level, at such actual
                achievement level) as of the date of Disability, by (ii) a fraction, the numerator of which is the number of whole months the Participant was in Service during the performance period and the denominator of which is the number of months in
                the performance period.  

             

              

          

  

  
    	
            (iii)

          	
            Retirement.  In the event of the Participant’s Termination of Service by reason of the Participant’s Retirement, any Restricted Stock Award that has not
              vested as of the date of Termination of Service will expire and be forfeited.  “Retirement” shall have the meaning set forth in Section 2.7(a) of the Plan.

             

            

          

  

  
    	
            (iv)

          	
            Termination for Cause.  If the Participant’s Service has been terminated for Cause, all Restricted Stock Awards
              granted to a Participant that have not vested will expire and be forfeited.

             

            

          

  

  
    	
            (v)

          	
            Other Termination.  If a Participant terminates Service for any reason other than due to death, Disability,
              Involuntary Termination at or following a Change in Control or for Cause, all shares of  Restricted Stock awarded to the Participant which have not vested as of the date of Termination of Service will expire and be forfeited.

          

  

  
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    	11.	
            Miscellaneous.

          

  

  	

        	11.1	
          No Restricted Stock Award will confer upon the Participant any rights as a stockholder of the Company prior to the date on which the individual fulfills all conditions for receipt of such rights.

           

          

        

  	

        	11.2	
          This Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Participant.

           

          

        

  	

        	11.3	
          Restricted Stock Awards are not transferable prior to the time such Awards vest in the Participant.

           

          

        

  	

        	11.4	
          This Restricted Stock Award will be governed by and construed in accordance with the laws of the State of New Jersey.

           

          

        

  	

        	11.5	
          This Restricted Stock Award is subject to all laws, regulations and orders of any governmental authority which may be applicable thereto and, notwithstanding any of the provisions hereof, the Company will not be
            obligated to issue any shares of stock hereunder if the issuance of such shares would constitute a violation of any such law, regulation or order or any provision thereof.

        

   

  

  [Signature Page Follows]

  

  

  
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  IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in its name and on its behalf as of the date of grant of this
    Restricted Stock Award set forth above.

  KEARNY FINANCIAL CORP.

  By:
      _____________________________

  Its:
      _____________________________

  

  

  PARTICIPANT’S ACCEPTANCE

  The undersigned hereby accepts the foregoing Restricted Stock Award and agrees to the terms and conditions hereof, including the terms and provisions of the 2021
    Equity Incentive Plan.  The undersigned hereby acknowledges receipt of a copy of the Company’s 2021 Equity Incentive Plan.

  PARTICIPANT

   

  

  ____________________________

  

  

  

   

  

  
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  EXHIBIT A

  

  

  VESTING SCHEDULE

  

  

  The Restricted Stock Awards granted under the Plan may vest in       (    ) annual installments, provided that the annual performance metrics are achieved, as follows:

  

  

  

  

  	
          
            Number of Restricted Stock Awards

          

        	
          
            Performance Metric

            Determined at FYE

          

        	
          
            Return on Average Assets

          

        
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

  

  

  *  The Return on Average Assets performance metric will be determined annually.

  The number of restricted stock awards that will become vested is the product of (i) the number of restricted stock awards that may vest, and (ii) the percentage of the performance metric obtained.

   

  

  Example 1A (Year 1):  100% of Performance Metric is Achieved.  The Committee determines that, for the fiscal year ended [DATE], the
    Company’s Return on Average Assets is [   ]%.  Since 100% of the target was achieved, [# of shares] ([# of shares] multiplied by 100%) shares of restricted stock will vest on [DATE] based on that current year’s performance.

   

  

  Example 1B (Year 1):  50% of Performance Metric is Achieved.  The Committee determines that, for the fiscal year ended [DATE], the
    Company’s Return on Average Assets is [  ]%.  Since only 50% of the target was achieved, [# of shares] ([# of shares] multiplied by 50%) shares of restricted stock will vest on [DATE] based on that current year’s performance.  The remaining [#
    of shares] unearned shares ([# of shares] multiplied by 50%) are carried over and held in reserve and may be potentially earned in future periods as compensation for over-performance during those subsequent periods (see Example 2C below).

   

  

  Example 1C (Year 1):  150% of Performance Metric is Achieved.  The Committee determines that, for the fiscal year ended [DATE], the
    Company’s Return on Average Assets is [   ]%.  Since greater than 100% of the target was achieved, [# of shares] ([# of shares] multiplied by 100%) shares of restricted stock will vest on [DATE] based on that current year’s performance.  An
    additional [# of shares] shares ([# of shares] multiplied by 50%) are carried over and held in reserve and may be potentially earned in future periods to offset the effects of under-performance during those subsequent periods (see example 2B below).

  

  

  
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  Example 2A (Year 2):  100% of Performance Metric is Achieved.  Beginning with the facts presented in Example 1A, 1B or 1C, the Committee
    determines that, for the fiscal year ended [DATE], the Company’s achieves 100% of the Return on Average Assets performance target established for that period.  Since 100% of the target was achieved, [# of shares] ([# of shares] multiplied by 100%)
    shares of restricted stock will vest on [DATE].  Carryovers from Example 1B (prior under-performance) or Example 1C (period over-performance) are not earned during Year 2 but deferred for potential earning in future periods.

   

  

  Example 2B (Year 2):  50% of Performance Metric is Achieved.  The Committee determines that, for the fiscal year ended [DATE], the
    Company’s Return on Average Assets from [DATE] to [DATE] equals 50% of the annual performance metric established for that year.

   

  

  
    	
            •

          	
            Beginning with facts presented in Example 1A: Since only 50% of the target was achieved in Year 2, [# of shares] ([# of shares] multiplied by 50%) shares
              of restricted stock will vest on [DATE] based on that current year’s performance.  The remaining [# of shares] unearned shares ([# of shares] multiplied by 50%) are carried over and held in reserve and may be potentially earned in future
              periods as compensation for over-performance during those subsequent periods.

             

            

          

  

  
    	
            •

          	
            Beginning with facts presented in Example 1B: Since only 50% of the target was achieved in Year 2, [# of shares] ([# of shares] multiplied by 50%) shares
              of restricted stock will vest on [DATE] based on that current year’s performance.  The remaining [# of shares] unearned shares ([# of shares] multiplied by 50%) are added to those carried over from Year 1 resulting in a cumulative total of [#
              of shares] shares being held in reserve.  Such shares may be potentially earned in future periods as compensation for over-performance during those subsequent periods.

             

            

          

  

  
    	
            •

          	
            Beginning with facts presented in Example 1C: Since only 50% of the target was achieved, [# of shares] ([# of shares] multiplied by 50%) shares of
              restricted stock will vest on [DATE] based on that current year’s performance.  However, the [# of shares] shares previously held in reserve based on the prior year’s over-performance are “earned back” in the current year.  Consequently, a
              total of [# of shares] shares are earned and vested during the current year.

             

            

          

  

  Example 2C (Year 2):  150% of Performance Metric is Achieved.  The Committee determines that, for the fiscal year ended [DATE], the
    Company’s Return on Average Assets from [DATE] to [DATE] equals 150% of the annual performance metric established for that year.

   

  

  
    	
            •

          	
            Beginning with facts presented in Example 1A: Since greater than 100% of the target was achieved in Year 2, [# of shares] ([# of shares] multiplied by
              100%) shares of restricted stock will vest on [DATE] based on that current year’s performance.  An additional [# of shares] shares ([# of shares] multiplied by 50%) are carried over and held in reserve and may be potentially earned in future

          

  

  
    7

    
      

  

  periods to offset the effects of under-performance during those subsequent periods.

   

  

  
    	
            •

          	
            Beginning with facts presented in Example 1B: Since greater than 100% of the target was achieved in Year 2, [# of shares] ([# of shares] multiplied by
              100%) shares of restricted stock will vest on [DATE] based on that current year’s performance.  However, the [# of shares] shares previously held in reserve based on the prior year’s under-performance are “earned back” in the current year. 
              Consequently, a total of [# of shares] shares are earned and vested during the current year.

             

            

          

  

  
    	
            •

          	
            Beginning with facts presented in Example 1C: Since greater than 100% of the target was achieved in Year 2, [# of shares] ([# of shares] multiplied by
              100%) shares of restricted stock will vest on [DATE] based on that current year’s performance.  An additional [# of shares] shares ([# of shares] multiplied by 50%) are added to those carried over from Year 1 resulting in a cumulative total
              of [# of shares] shares being held in reserve.  Such shares may be potentially earned in future periods to offset the effects of under-performance during those subsequent periods.

             

            

          

  

  Date of Vesting and Employment Requirement:  The Participant must be employed, except in the event of death, Disability or an Involuntary Termination at or
    following a Change in Control, as of the [DATE] following the applicable fiscal year end to vest and to receive the number of shares calculated in accordance with the above examples.  If a Participant terminates employment for any reason other than due
    to death, Disability, or an Involuntary Termination at or following a Change in Control prior to the [DATE] following the applicable fiscal year end, all shares of Restricted Stock awarded to the Participant which have not vested as of the date of
    Termination of Service will expire and be forfeited.  For the avoidance of doubt, the Participant will become vested in all non-vested restricted stock awards upon an Involuntary Termination of Employment following a Change in Control on the date of
    such event.

   

  

  Effects of Cumulative Over-Performance and Under-Performance:  The aggregate number shares carried over and held in reserve from period to period due to
    cumulative net under-performance shall only be earned by the participant through the over-performance in a subsequent period.  Similarly, the aggregate number of shares carried over and held in reserve from period to period due to cumulative net
    over-performance shall only be earned by the participant through the under-performance in a subsequent period.  Shares shall only be earned by the participant during the five-year vesting period presented above.  Consequently, any unearned shares held
    in reserve due to cumulative under-performance, as described in the example above,  shall be forfeited by the participant upon the expiration of the five-year vesting period noted above.  Conversely, the cumulative number of shares that may be earned
    by the participant is limited to 100% of the shares granted.  Consequently, a participant’s ability to earn any shares held in reserve resulting from cumulative over-performance ceases upon the expiration of the five-year vesting period noted above.

  
    8

    
      

  

  

  

  Amount of Taxation Determined Each [DATE]:  For income tax purposes, compensation income will be determined as of
    the applicable [DATE] following the applicable fiscal year end in which the shares of Restricted Stock become vested based on the fair market value of the shares vesting on [DATE].

   

  

  Return on Average Assets:  The Committee has sole discretion to determine whether the performance measures have
    been achieved.  In determining whether performance measures have been met, the Committee may take into consideration any nonrecurring or extraordinary items that affect income, expense, gain or loss and other factors it may deem relevant. 
    Extraordinary items include events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence.

  9

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