Document:

axgn_EX10_1

		
			Exhibit 10.1
		

		
			 
		

		
			EXECUTIVE EMPLOYMENT AGREEMENT
		

		
			 
		

		
			THIS EXECUTIVE EMPLOYMENT AGREEMENT (the "Agreement"), effective as of March 11,  2016, is made by and between AXOGEN CORPORATION, a Delaware corporation (“AXOGEN" or "Employer"), and Kevin Leach ("Employee"), whose resident address is 16 Rowland Drive Hillsborough, NJ  08844 (collectively, the "Parties").  
		

		
			 
		

		
			RECITALS:
		

		
			 
		

		
			A.        WHEREAS, AXOGEN believes it is in its best interest to employ Employee, and Employee desires to be employed by AXOGEN; and 
		

		
			 
		

		
			B.        WHEREAS, AXOGEN and Employee desire to set forth the terms and conditions on which Employee shall be employed by and perform duties on behalf of AXOGEN.
		

		
			 
		

		
			NOW, THEREFORE, in consideration of the promises set forth in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which is acknowledged by this Agreement, the Parties to this Agreement, intending to be legally bound, agree as follows:
		

		
			 
		

		
			1.        Employment.  AXOGEN hereby employs Employee, and Employee hereby accepts such employment, beginning March 14, 2016, all upon the terms and conditions set forth in this Agreement, including those set forth in the attached Schedules and Exhibits.  
		

		
			 
		

		
			(a)       Duties of Employee.  The duties of Employee are set forth on Schedule 1 of this Agreement, which is attached hereto and incorporated herein by reference.
		

		
			 
		

		
			(b)       Compensation and Benefits.  The compensation and benefits to which Employee may be entitled pursuant to this Agreement are set forth on Schedule 2 of this Agreement, which is attached hereto and incorporated herein by reference.
		

		
			 
		

		
			2.        Invention Assignment and Confidentiality Agreement.  Contemporaneously with the execution and delivery of this Agreement, Employee shall enter into an Invention Assignment and Confidentiality Agreement attached hereto as Exhibit "A" to this Agreement (the "Invention and Confidentiality Agreement"), which shall be incorporated herein by reference.
		

		
			 
		

		
			3.        Non-Competition Agreement.  Contemporaneously with the execution and delivery of this Agreement, Employee shall enter into a Non-Solicitation and Non-Competition Agreement attached hereto as Exhibit "B" to this Agreement (the "NSNC Agreement") which shall be incorporated herein by reference. 
		

		
			 
		

		
			4.        Termination.  
		

		
			 
		

		
			(a)       At-will.    Either AXOGEN or Employee may terminate this Agreement at any time during the course of Employee's employment and for any reason, upon giving written notice to the other party.  Employer shall have no further liability or obligation to Employee other than to pay for services rendered through Employee's last date of employment.  If Employee elects to terminate this Agreement and provides Employer with any notice period prior to the date of termination, Employer may elect to terminate this Agreement immediately thereon and incur no further obligation to Employee other than for wages worked through the date of termination of this Agreement.  It is the intention of the Parties that at all times this shall be an at-will employment relationship during the course of Employee's employment with Employer.  Nothing 
		

		
			 
		

		
			
		

		
			

		 

		

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			contained in this Agreement shall be deemed or construed to create a contractual relationship between the Parties for a specific duration of time.  
		

		
			 
		

		
			(b)        Death.  In the event of the death of the Employee, this Agreement shall terminate on the date of Employee's death, without any liability to or upon the Employer other than to pay for services rendered prior to the date of the Employee’s death.  
		

		
			 
		

		
			(c)        Permanent Disability.  For purposes of this Agreement, the term "Permanent Disability" shall mean a physical or mental incapacity of Employee, which renders Employee unable to perform Employee’s duties pursuant to this Agreement, and which shall continue for ninety (90) consecutive days or one hundred and eighty (180) days during any twelve month period.  If AXOGEN or Employee terminates Employee's employment by reason of Permanent Disability of Employee, this Agreement shall terminate immediately upon written notice by AXOGEN to Employee, or the date Employee gives notice to terminate employment to AXOGEN, without any liability to or upon the Employer other than to pay for services rendered through the termination date.     
		

		
			 
		

		
			5.        Change in Control.  
		

		
			 
		

		
			(a)       Definition.  For the purposes of this Agreement, a "Change in Control" shall mean the occurrence of any of the following events:
		

		
			 
		

		
			(i)       any "person" (as that term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended ("Exchange Act")), who holds less than twenty percent (20%) of the combined voting power of the securities of AXOGEN or its parent company AxoGen, Inc. (“INC.”), becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of AXOGEN or INC. representing fifty percent (50%) or more of the combined voting power of the securities of either AXOGEN or INC. then outstanding; or
		

		
			 
		

		
			(ii)       during any period of twenty-four (24) consecutive months, individuals, who, at the beginning of such period constitute all members of the Board of Directors of INC. (the "Board") and cease, for any reason, to constitute at least a majority of the Board, unless the election of each director who was not a director at the beginning of the period was either nominated for election by, or  approved by a vote of, at least two-thirds of the directors then still in office who were directors at the beginning of the period; or
		

		
			 
		

		
			(iii)       AXOGEN or INC. consolidates or merges with another company, and AXOGEN or INC. is not the continuing or surviving corporation, provided, however, that any consolidation or merger whereby INC. continues as the majority holder of AXOGEN securities or a merger or consolidation of AXOGEN and INC. will not constitute a Change in Control; or 
		

		
			 
		

		
			(iv)       shares of AXOGEN’s or INC.’s common stock are converted into cash, securities, or other property, other than by a merger of AXOGEN or INC., pursuant to Section 5(a)(iii), in which the holders of AXOGEN’s or INC.’s common stock immediately prior to the merger have the same proportionate ownership of common stock of the surviving corporation as immediately after the merger; or
		

		
			 
		

		
			
		

		
			

		 

		

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			(v)       AXOGEN or INC. sells, leases, exchanges, or otherwise transfers all, or substantially all, of its assets (in one transaction or in a series of related transactions), provided, however, that any such transaction related to AXOGEN whereby INC. continues as the majority holder of AXOGEN securities or INC. is the sole other party to the transaction, will not constitute a Change in Control; or
		

		
			 
		

		
			(vi)       the holders of AXOGEN’s or INC.’s stock approve a plan or proposal for the liquidation or dissolution of AXOGEN or INC.
		

		
			 
		

		
			(b)       Severance.
		

		
			 
		

		
			(i)       Termination in Connection with a Change of Control.  In the event of Employee’s termination of employment by AXOGEN without Substantial Cause (as defined below) upon or within one hundred and eighty (180) days following a Change in Control or by Employee for Good Reason (as defined below), Employee will be entitled to a severance payment consisting of twelve (12) months of Employee's base salary, an amount equal to any bonuses paid to Employee during the twelve (12) month period prior to Employee’s termination of employment.  For purposes of this Agreement, “Substantial Cause” means: (A) the commission by Employee of any act of fraud, theft, or embezzlement; (B) any material breach by Employee of this Agreement, provided that AXOGEN shall have first delivered to Employee written notice of the alleged breach, specifying the exact nature of the breach in detail, and provided, further, that Employee shall have failed to cure or substantially mitigate such breach within ten (10) days after receiving such written notice; (C) commission or conviction of any felony, or of any misdemeanor involving moral turpitude, or entry of a plea of guilty or nolo contendere to any felony or misdemeanor; (D) material failure to adhere to AXOGEN's or INC.’s corporate codes, policies or procedures which have been adopted in good faith for a valid business purpose as in effect from time to time; or (E) failure to meet reasonable performance standards as determined by AXOGEN or INC.  For purposes of this Agreement, “Good Reason” shall mean Employee’s resignation from employment upon or within ninety (90) days following a Change of Control, if AXOGEN or INC. is not the surviving entity, provided that Substantial Cause for termination of Employee’s employment does not exist at the time of such resignation and the resignation is the result of the occurrence of any one or more of the following:
		

		
			 
		

		
			a)       the assignment to Employee of any duties inconsistent in any respect with his/her position (including status, offices, titles, and reporting requirements), authorities, duties, or other responsibilities as in effect immediately prior to the Change in Control of Employer or INC. or any other action of Employer or INC.which results in a diminishment in such position, authority, duties, or responsibilities, other than an insubstantial and inadvertent action which is remedied by Employer or INC.promptly after receipt of notice thereof given by Employee;
		

		
			 
		

		
			b)       a reduction by AXOGEN in Employee's base salary as in effect on the date hereof and as the same shall be increased from time to time hereafter; 
		

		
			 
		

		
			
		

		
			

		 

		

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			c)       the failure by AXOGEN to (A) continue in effect any material compensation or benefit plan, program, policy or practice in which Employee was participating at the time of the Change in Control of Employer or INC. or (B) provide Employee with compensation and benefits at least equal (in terms of benefit levels and/or reward opportunities) to those provided for under each employee benefit plan, program, policy and practice as in effect immediately prior to the Change in Control of Employer or INC. (or as in effect following the Change in Control of Employer or INC., if greater.
		

		
			 
		

		
			(ii)        Termination not in Connection with a Change of Control.  In the event of Employee’s termination of employment by AXOGEN without Substantial Cause prior to a Change of Control, Employee shall be entitled to a severance payment consisting of: (A) twelve (12) months of Employee's base salary; and (B) an amount equal to any bonuses paid to Employee during the twelve (12) month period prior to Employee’s termination of employment.  Notwithstanding anything to the contrary contained in this Section 5(b)(ii), no severance payment will be owed to Employee if Employee is terminated by AXOGEN for any reason (with or without cause) within six months of the first date of Employees employment with AXOGEN. 
		

		
			 
		

		
			(c)        Payment of Severance.  As a condition of receiving any severance under this section 5,  Employee and must sign (and not revoke) a separation, waiver and release agreement (to be prepared by Employer at the time of Employees termination) of all claims (known and unknown) against Employer and INC. arising out of or relating to his employment with Employer or termination thereof, excluding claims for severance under this section 5, as well as any other terms and conditions required by Employer.  Payment of any severance for Employee will be made in a lump sum on the first payroll date following the 60th day following the date of Employee’s termination of employment.  Notwithstanding the foregoing, if the Employee is a “specified employee” on Employee’s termination date, the postponement provisions of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), as described in Section 8(n) below, shall apply, if applicable.  
		

		
			 
		

		
			So long as Employer or INC.is subject to federal COBRA and Employee timely elects continuation coverage under COBRA, Employer or INC. shall pay the premiums for the Employee and his covered dependent’s COBRA (i) for the first twelve (12) months of the COBRA continuation period, or (ii) until such time as the Employee obtains new employment that provides reasonable and comparable health care coverage (including without limitation, coverage of dependents), whichever period is shorter. Employee has the duty to immediately notify the applicable entity, in writing, if the event in (ii) above occurs.  
		

		
			 
		

		
			6.        Surrender of Records and all Employer and INC. Property.  Upon the termination of Employee's employment for any reason, whether by AXOGEN or Employee, Employee agrees to return to AXOGEN and INC., in good condition, (i) any and all equipment belonging to AXOGEN or INC. including, without limitation, computers, cell phones, and personal digital assistants, and (ii) any and all data, computer files, customer lists and contact information, documents and other materials in Employee’s possession, or removed by Employee from AXOGEN's or INC.’s premises, whether now in Employee's possession or not, which materials were obtained in connection with Employee's employment with AXOGEN, including any and all 
		

		
			 
		

		
			
		

		
			

		 

		

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			copies (whether complete or partial) and extracts thereof, and (iii) any and all other company property or Confidential Information and materials as they are defined in Employee's Invention Assignment and Confidentiality Agreement, in the Employee’s control or possession.
		

		
			 
		

		
			7.        Miscellaneous Provisions.
		

		
			 
		

		
			(a).       Amendments to this Agreement only in Writing.  The provisions of this Agreement and the attached Schedules and Exhibits shall only be amended, supplemented, or waived by a written agreement executed by both a duly authorized officer of AXOGEN and Employee. 
		

		
			 
		

		
			(b).       Assignments.  Employee shall not assign Employee’s rights and/or obligations pursuant to this Agreement or the attached Schedules and Exhibits.  AXOGEN may assign its rights and/or obligations pursuant to this Agreement and the attached Schedules and Exhibits at any time without prior notice to Employee.  In the event of a Change of Control in which AXOGEN or INC. is not the surviving entity, any reference to AXOGEN or INC. shall be deemed to refer to the surviving entity.  
		

		
			 
		

		
			(c).       Binding Effect.  All of the terms and provisions of this Agreement and the attached Schedules and Exhibits, whether so expressed or not, shall be binding upon, inure to the benefit of, and be enforceable by the Parties and their respective administrators, executors, legal representatives, heirs, successors and permitted assigns.
		

		
			 
		

		
			(d).       The Provisions of this Agreement are Severable.  If any part of this Agreement, or any of the Schedules or Exhibits entered into pursuant to this Agreement, is contrary to, prohibited by, or deemed invalid under any applicable law or regulation, such provision shall be inapplicable and deemed omitted to the extent so contrary, prohibited or invalid, but the remainder of this Agreement and its Schedules and Exhibits shall not be so invalidated, and shall be given full force and effect so far as possible.
		

		
			 
		

		
			(e).       Survival.  Notwithstanding anything to the contrary in this Agreement, the provisions of Sections 1 through 7 shall survive and remain in effect beyond the execution and delivery of this Agreement in accordance with their respective terms of duration.
		

		
			 
		

		
			(f).       Waivers.  The failure or delay of AXOGEN at any time to require performance by Employee of any provision of this Agreement or the attached Schedules and Exhibits, even if known, shall not affect the right of AXOGEN to require performance of that provision or to exercise any right, power or remedy pursuant to this Agreement or the attached Schedules and Exhibits.  Any waiver by AXOGEN of any breach of any provision of this Agreement or the attached Schedules and Exhibits shall not be construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the provision itself, or a waiver of any right, power or remedy pursuant to this Agreement or the attached Schedules and Exhibits.  
		

		
			 
		

		
			(g).       Notices.  All notices, requests, consents and other communications required or permitted under this Agreement shall be in writing and shall be (i) hand-delivered by messenger or courier service; (ii) sent by an overnight-mail service (e.g. FedX or UPS); or (iii) mailed (airmail, if international) by registered or certified mail (postage prepaid), return receipt requested, and addressed to:
		

		
			 
		

		
			If to Employee:
		

		
			 
		

		
			Employee's most current address on file with AXOGEN.
		

		
			 
		

		
			
		

		
			

		 

		

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						If to AXOGEN:

					
					
						With a copy to:

				
	
					
						AXOGEN Corporation

					
					
						AXOGEN Corporation

				
	
					
						13631 Progress Blvd., Ste. 400

					
					
						13631 Progress Blvd., Ste. 400

				
	
					
						Alachua, FL 32615

					
					
						Alachua, FL 32615

				
	
					
						Attn:  CEO

					
					
						Attn:  Human Resources

				

		
			 
		

		
			or to such other address as any party may designate by written notice complying with the terms of this section. Each such notice shall be deemed delivered (a) on the date delivered, if by personal delivery, or (b) on the date upon which the return receipt is signed, delivery is refused, or the notice is designated by the postal authorities as not deliverable, as the case may be, if mailed.
		

		
			 
		

		
			(h).       Governing Law.  This Agreement and the attached Schedules and Exhibits and all transactions contemplated by this Agreement or the attached Schedules and Exhibits shall be governed by, and construed and enforced in accordance with, the internal laws of the State of Florida, without regard to principles of conflicts of laws. 
		

		
			 
		

		
			(i).       Jurisdiction and Venue.  The Parties acknowledge that a substantial portion of negotiations, anticipated performance and execution of this Agreement and the attached Schedules and Exhibits occurred, or shall occur, in Alachua County, Florida, and the Parties irrevocably and unconditionally (a) agree that any suit, action or legal proceeding arising out of, or relating to, this Agreement or the attached Schedules and Exhibits shall be brought in the  courts of record of the State of Florida in Alachua County, or the United States District Court, Northern District of Florida, Gainesville Division; (b) consent to the jurisdiction of each such court in any such suit, action or proceeding; (c) waive any objection which they may have to the laying of venue of any such suit, action or proceeding in any of such courts; and (d) agree that service of any court paper may be effected on such party by mail, as provided in this Agreement, or in such other manner as may be provided under applicable laws or court rules in said state.
		

		
			 
		

		
			(j).       Remedies Available to Either Party Cumulative.  No remedy conferred upon any party pursuant to this Agreement (or the attached Schedules and Exhibits) is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given pursuant to this Agreement (or the attached Schedules and Exhibits) now or hereafter existing at law or in equity or by statute or otherwise.  No single or partial exercise by any party of any right, power or remedy pursuant to this Agreement (or the attached Schedules and Exhibits) shall preclude any other or further exercise of such right, power or remedy.
		

		
			 
		

		
			(k).       Entire Agreement.  This Agreement and the attached Schedules and Exhibits represents the entire understanding and agreement between the Parties with respect to the subject matter contained herein and supersedes all other negotiations, understandings and representations (if any) made by and between the Parties.
		

		
			 
		

		
			(l).       Section and Paragraph Headings.  Section and paragraph headings used throughout this Agreement and the attached Schedules and Exhibits are for convenience of reference only and in no way define, limit or describe the scope or intent of this Agreement or the attached Schedules and Exhibits.  
		

		
			 
		

		
			
		

		
			

		 

		

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			(m).       Preparation of Agreement.  This Agreement shall not be construed more strongly against any party regardless of who is responsible for its preparation.  The Parties acknowledge that each party contributed to its negotiations and is equally responsible for its preparation.
		

		
			 
		

		
			(n).       Section 409A of the Code.  Notwithstanding any provision of this Agreement to the contrary, this Agreement is intended to meet the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) to the extent applicable, the Parties intend to administer this Agreement in a manner that is consistent with those requirements or an exception thereto, and this Agreement shall be construed and interpreted in accordance with such intent.  Any payments that are considered deferred compensation under Section 409A of the Code and that are paid to a “specified employee” (as defined in Section 409A of the Code) upon separation from service shall be subject to a six (6) month delay, if required by Section 409A of the Code.  If required by Section 409A of the Code, any amounts otherwise payable during the six (6) month period that commences on and follows the Employee’s termination date shall be paid in one lump sum amount on the first payroll date following the six (6) month period following the Employee date of termination (or within thirty (30) days of the Employee’s death, if earlier).  For purposes of Section 409A of the Code, all payments to be made upon a termination of employment under this Agreement may only be made upon a “separation from service” (within the meaning of such term under Section 409A of the Code).  Each payment made under this Agreement shall be treated as a separate payment.  In no event shall the Employee, directly or indirectly, designate the calendar year of a payment.  All reimbursements under this Agreement shall be provided in a manner that complies with Section 409A of the Code, if applicable.  If required by regulations or other guidance issued under Section 409A of the Code or a court of competent jurisdiction, the provisions regarding payments hereunder shall be amended to provide for such payments to be made at the time allowed under such regulations, guidance or authority that most closely achieves the intent of this Agreement.  
		

		
			 
		

		
			(o)        Liability Insurance. AXOGEN shall cover the Employee under directors and officers liability insurance both during the term of this Agreement and for the one year period following the termination of this Agreement, in the same amount and to the same extent as AXOGEN covers its officers and directors. 
		

		
			 
		

		
			 
		

		
			 
		

		
			[Signature Page Follows]
		

		
			
		

		
			

		 

		

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			EMPLOYEE AND AXOGEN have executed this Agreement as of the 11th day of March, 2016.
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						AXOGEN CORPORATION

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/Karen Zaderej

				
	
					
						 

					
					
						Name:  Karen Zaderej

				
	
					
						 

					
					
						Title:  CEO

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						EMPLOYEE:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/Kevin Leach

				
	
					
						 

					
					
						Kevin Leach

				

		
			 
		

		
			 
		

		
			

		 

		

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			SCHEDULE AND EXHIBIT LIST
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Schedule 1 -

					
					
						Duties of Employee

				
	
					
						Schedule 2 -

					
					
						Compensation and Benefits

				
	
					
						Exhibit A -

					
					
						Invention Assignment and Confidentiality Agreement

				
	
					
						Exhibit B -

					
					
						Non-Solicitation and Non-Competition Agreement

				

		
			 
		

		
			
		

		
			

		 

		

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			SCHEDULE 1
		

		
			DUTIES OF EMPLOYEE
		

		
			 
		

		
			The duties of Employee with AXOGEN CORPORATION ("AXOGEN" or "Employer") are as follows:
		

		
			 
		

		
			1.        Employee's Title:  AXOGEN hereby employs Employee as Vice President of Marketing, which title may change at AXOGEN's discretion.    
		

		
			 
		

		
			2.        Employee's Duties:  During employment with AXOGEN, Employee's duties will include, without limitation, the following:
		

		
			 
		

		
			(a)       Description of Duties.  Employee shall perform all duties in connection with Employee’s position, or as otherwise designated by AXOGEN, including, without limitation, the following duties: 
		

		
			 
		

		
			Provide both operational and programmatic support to AXOGEN and INC.  Supervise the marketing function, lead the brand strategy and execution, lead the identification of and support the development of new products, lead the strategic plan for commercialization, prioritization and development of existing and new markets, lead the corporate PR function and provide support and input into investor relations.   As a member of the senior management team, be involved in strategic planning, evaluation, and professional development initiatives.
		

		
			 
		

		
			(b)       Report to AXOGEN Designated Manager.  Employee shall report to the CEO of AXOGEN.
		

		
			 
		

		
			(c)       Compliance With Employee Policies and Procedures.  Employee shall comply with all AXOGEN policies and procedures for employees as such policies and procedures may exist from time to time.
		

		
			 
		

		
			(d)       No Other Business Activities.  
		

		
			 
		

		
			(i)       Employee shall devote Employee’s entire professional time, energy and skill to the performance of Employee’s duties pursuant to the Agreement, the service of AXOGEN, and promotion of AXOGEN’s interests.  The Parties agree that Employee may not during Employee's employment, except as permitted in writing by AXOGEN, be engaged in any other business activity, whether or not such activity is pursued for gain, profit, or other pecuniary advantage including, without limitation, management or management consulting activities.  
		

		
			 
		

		
			(ii)       Notwithstanding the preceding subsection, Employee may invest Employee’s personal assets in businesses or real estate that are not in competition with AXOGEN where the form or manner of such investment will not require services on the part of Employee, and in which Employee’s participation is solely that of a passive investor.  
		

		
			 
		

		
			(e)       Compliance with AXOGEN’s Rules and Regulations.  Employee agrees to abide by all rules and regulations established from time to time by AXOGEN.
		

		
			 
		

		
			
		

		
			

		 

		

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			SCHEDULE 2
		

		
			COMPENSATION AND BENEFITS
		

		
			 
		

		
			Subject to the terms and conditions of the Executive Employment Agreement (the "Agreement"), Employee may be entitled to receive from AXOGEN Corporation ("AXOGEN" or "Employer") the following compensation and benefits:
		

		
			 
		

		
			1.        Base Salary.  
		

		
			 
		

		
			(a)       Amount.  Employee's salary during employment with AXOGEN will be at the rate of $290,000  (Two Hundred Ninty Thousand Dollars) annually, (the "Base Salary") effective upon execution and delivery of the Agreement and Employee's first day of employment with AXOGEN.  
		

		
			 
		

		
			(b)       Payment.  The Base Salary shall be payable in accordance with the existing payroll practices of AXOGEN, which practices may be changed by AXOGEN from time to time at its sole discretion.  The Base Salary shall be subject to all appropriate withholding taxes.
		

		
			 
		

		
			(c)       Review of Base Salary.  The Base Salary shall be reviewed by AXOGEN on an annual basis; however AXOGEN reserves the right to increase or decrease the Base Salary at any time during the employment relationship in its sole discretion.
		

		
			 
		

		
			(d)       Additional Compensation.  In addition to the Base Salary, Employee may also be eligible to receive stock options, benefits, paid vacations and holidays during Employee's Employment.  
		

		
			 
		

		
			2.        Business Expenses and Reimbursements.  Employee shall be eligible for reimbursement by AXOGEN in accordance with AXOGEN’s normal reimbursement practices for ordinary and necessary business expenses incurred by Employee in the performance of Employee’s duties for AXOGEN, so long as Employee timely submits to AXOGEN accurate invoices and receipts of all expenses submitted for reimbursement pursuant to this section.  Employee will be reimbursed for moving expenses if the move is completed within one year are the start of employment up to a maximum of $65,000.
		

		
			 
		

		
			3.        Benefits.  Employee will be permitted to participate in such benefit plans of AXOGEN that may be in effect from time to time, to the extent Employee is eligible under the terms of those plans. Nothing herein shall be construed to require AXOGEN to institute or continue any particular plan or benefit.  AXOGEN reserves the right to add, change, or eliminate any benefits at any time at its sole discretion.
		

		
			 
		

		
			4.        Vacations and Holidays.  Employee will be entitled to paid vacation and holidays in accordance with the vacation and holiday policies of AXOGEN in effect for its employees from time to time.  Vacation must be taken by Employee at such time or times as approved by AXOGEN. 
		

		
			 
		

		
			5.        Bonus.  
		

		
			 
		

		
			(a)       Calculation. During the Employment Period, Employee may receive a bonus based on an AXOGEN bonus plan, as determined by AXOGEN in its sole discretion.  Bonus for 2016 will be pro-rated based on Employee start date and his target rate set at 40% of salary subject to the conditions of such bonus as established by the AXOGEN Board of directors.
		

		
			 
		

		
			
		

		
			

		 

		

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			(b)       Payment.  The Bonus if paid shall be paid in accordance with, and subject to, the normal payroll policies of AXOGEN with respect to similar forms of compensation, including, without limitation, being subject to all appropriate withholding taxes. 
		

		
			 
		

		
			6.        Compensation Review.  AXOGEN shall, from time to time, but no less frequently than annually, review Employee's compensation (including benefits) and may, in its sole discretion, increase, or decrease, or eliminate any or all of the benefits.  Any such increase or decrease in the compensation package shall be valid only if in writing, executed by a duly authorized officer of AXOGEN, and such writing shall constitute an amendment to this Paragraph 6 (and to the Agreement and any applicable Schedules or Exhibits) solely as to the benefits, without waiver or modification of any other terms, conditions or provisions of the Agreement.
		

		
			 
		

		
			7.        No Other Compensation.  Employee agrees that the compensation and benefits set forth in the Agreement and this Schedule 2 are the sole and exclusive compensation and benefits to which Employee is entitled pursuant to the Agreement and this Schedule 2, and that Employee shall have no rights to receive any other compensation or benefits of any nature from AXOGEN.
		

		
			 
		

		
			 
		

		
			

		 

		

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			EXHIBIT A OF EMPLOYMENT AGREEMENT
		

		
			INVENTION ASSIGNMENT AND CONFIDENTIALITY AGREEMENT
		

		
			 
		

		
			THIS INVENTION ASSIGNMENT AND CONFIDENTIALITY AGREEMENT (the "Invention and Confidentiality Agreement") is entered into as of the date first written below, by and between AXOGEN Corporation ("AXOGEN" or "Employer") and the undersigned AXOGEN employee, ("Employee") for and in consideration of Employee's continued employment by AXOGEN and the compensation that Employee shall receive during Employee's employment, the Parties agree as follows:
		

		
			 
		

		
			1.        Employee’s Covenants, Representations and Warranties.  Both during and after the termination of Employee’s employment by AXOGEN for any reason or for no reason:
		

		
			 
		

		
			A.       Non-Disclosure.  Employee shall not disclose to anyone outside AXOGEN any Confidential Information.  "Confidential Information" shall include, without limitation, 
		

		
			 
		

		
			(i)       all information, which has not been made publicly available by AXOGEN or the third-party owner of such information, which was developed by AXOGEN, any of AXOGEN’s employees or independent contractors, or was developed for AXOGEN, including but not limited to Developments (as defined below in Section 3), technical data, specifications, designs, programs, software, hardware, concepts, discoveries, copyrights, improvements, product plans, research and development, personnel information, contents of manuals, financial information, customer lists, leads, marketing programs, testing programs, and/or other written materials; 
		

		
			 
		

		
			(ii)       all documents marked as confidential and/or containing such information; and/or
		

		
			 
		

		
			(iii)       all information AXOGEN has acquired or received from a third party in confidence.
		

		
			 
		

		
			B.       Use of Confidential Information.  Employee shall use Confidential Information only for AXOGEN’s business purposes. 
		

		
			 
		

		
			C.       Confidential Information and Materials Furnished by AXOGEN.  Employee agrees that the Confidential Information and any other materials furnished by AXOGEN to Employee, (i) are proprietary to AXOGEN and contain specialized and unique information not obtainable from ordinary sources, (ii) have been created by AXOGEN at considerable time and expense, and (iii) shall remain, at all times, the exclusive and sole property of AXOGEN.
		

		
			 
		

		
			D.       Use of Third-Party Information.  Employee shall not disclose to AXOGEN, use in AXOGEN’s business, or cause AXOGEN to use any information or material which is confidential to any third party unless AXOGEN has a written agreement with the third party allowing AXOGEN to receive and use the confidential information or materials.  
		

		
			 
		

		
			E.       Use of Copyrights.  Employee will not incorporate into Employee's work any material that is subject to the copyrights of any third party unless AXOGEN has the right to copy and incorporate such copyrighted material.
		

		
			 
		

		
			F.       Trade Secrets.  Employee acknowledges AXOGEN’s legitimate business interest in protecting its trade secrets and customer lists and in preventing direct solicitation of its 
		

		
			 
		

		
			
		

		
			

		 

		

			Page A-1

		

 

 
		

		
			customers and agrees that any unauthorized use of trade secrets shall be presumed to be an irreparable injury that may be specifically enjoined.
		

		
			 
		

		
			2.        Return of Confidential Information and Materials.  Employee shall, immediately upon AXOGEN’s request, or the termination of Employee’s employment, for any reason, whether by Employee or AXOGEN, return to AXOGEN all Confidential Information and other materials furnished to Employee, and any and all third-party property, and/or copies of the same, and all documentation, notebooks and notes, reports and any other materials whether electronic or print media containing or derived from the Confidential Information and other materials furnished to Employee by AXOGEN.
		

		
			 
		

		
			3.        Assignment of Rights.  Employee hereby grants, transfers and assigns and agrees to grant, transfer and assign to AXOGEN all of Employee’s rights, title and interest, if any, in any and all Developments, including rights to translation and reproductions in all forms or formats and the copyrights, patent rights and moral rights to the same, if any, and agrees that AXOGEN may further perfect AXOGEN’s United States and foreign rights in, and to any and all, Developments under patents and copyrights.  "Developments" shall mean any idea, invention, process, design, concept, or useful article (whether the design is ornamental or otherwise), computer program, trademark, trade secret, documentation, literary work, audiovisual work and any other work of authorship, hereafter expressed, made or conceived solely or jointly by Employee during Employee's employment, whether or not subject to patent, copyright or other forms of protection that is:
		

		
			 
		

		
			A.       related to the actual or anticipated business, research or development of AXOGEN; and/or
		

		
			 
		

		
			B.       suggested by or resulting from any task assigned to Employee or work performed by Employee for or on behalf of AXOGEN.
		

		
			 
		

		
			4.        Copyrights.  Employee acknowledges that the copyrights in Developments created by Employee in the scope of Employee's employment belong to AXOGEN by operation of law, or may belong to a party engaged by AXOGEN by operation of law pursuant to a works-for-hire contract between AXOGEN and such contracted third party.  To the extent the copyrights in such works may not be owned by AXOGEN or such contracted party by operation of law, Employee hereby assigns and agrees to assign to AXOGEN or such contracted party, as the case may be, all copyrights (if any) Employee may have in Developments.
		

		
			 
		

		
			5.        Assistance in Obtaining Copyrights and Patents.  At all times after the date of this Invention Assignment and Confidentiality Agreement, Employee agrees to assist AXOGEN in obtaining patents or copyrights on any Developments assigned to AXOGEN that AXOGEN, in its sole discretion, seeks to patent or copyright.  Employee also agrees to sign all documents, and do all things necessary to obtain such patents or copyrights, to further assign them to AXOGEN, and to reasonably protect them and AXOGEN against infringement by other parties at AXOGEN expense with AXOGEN prior approval.
		

		
			 
		

		
			6.        Appointment of Attorney-In-Fact.  Employee irrevocably appoints any AXOGEN-selected designee to act, at all times hereafter, as Employee’s agent and attorney-in-fact to perform all acts necessary to obtain patents and/or copyrights as required by this Invention Assignment and Confidentiality Agreement if Employee (i) refuses to perform those acts or (ii) is unavailable, within the meaning of the United States Patent and Copyright laws.  It is expressly intended by Employee that the foregoing power of attorney is coupled with an interest.
		

		
			 
		

		
			
		

		
			

		 

		

			Page A-2

		

 

 
		

		
			7.        Record Keeping.  Employee shall keep complete, accurate, and authentic information and records of all Developments in the manner and form reasonably requested by AXOGEN.  Such information and records, and all copies of the same, shall be the property of AXOGEN as to any Developments assigned AXOGEN.  Employee agrees to promptly surrender such information and records at the request of AXOGEN as to any Developments.
		

		
			 
		

		
			8.        Developments.  In connection with any of the Developments assigned by this Invention Assignment and Confidentiality Agreement, Employee hereby agrees:
		

		
			 
		

		
			A.       to disclose them promptly to AXOGEN;
		

		
			 
		

		
			B.       at AXOGEN’s request, to execute separate written assignments to AXOGEN; 
		

		
			 
		

		
			C.       to provide AXOGEN with notice of any inadvertent disclosure of Confidential Information related to any Development; and
		

		
			 
		

		
			D.       to do all things reasonably necessary to enable AXOGEN to secure patents, register copyrights or obtain any other form of protection for Developments in the United States and in other countries.  If Employee fails or is unable to do so, Employee hereby authorizes AXOGEN to act under power of attorney for Employee to do all things to secure such rights. 
		

		
			 
		

		
			9.        No Designation as Author.  AXOGEN, its subsidiaries, licensees, successors or assigns, (direct or indirect) is not required to designate Employee as author of any Developments when such Developments are distributed publicly or otherwise.  Employee waives and releases, to the extent permitted by law, all Employee's rights to such designation and any rights concerning future modifications of such Developments.
		

		
			 
		

		
			10.        Assignability.  Rights, assignments, and representations made or granted by Employee in this Invention Assignment and Confidentiality Agreement are assignable by AXOGEN without notice, and are for the benefit of AXOGEN’s successors, assigns, and parties contracting with AXOGEN.
		

		
			 
		

		
			11.        Trade Secrets.  Employee acknowledges that Employee is aware that a theft of trade secrets of an employer by an employee in Florida, such as is prohibited by this Invention Assignment and Confidentiality Agreement, constitutes a criminal violation of Florida Statute 812.081, punishable as a third-degree felony under Florida Statute 775.082, conviction for which carries a term of imprisonment not exceeding five (5) years.  Employee acknowledges AXOGEN will seek vigorous prosecution under Florida Statutes for any violation thereof arising out of a breach by Employee of any of the material terms of this Invention Assignment and Confidentiality Agreement.
		

		
			 
		

		
			12.        Advice of Counsel.  Employee acknowledges and agrees that Employee has read and understands the terms set forth in this Invention Assignment and Confidentiality Agreement and has been given a reasonable opportunity to consult with an attorney prior to execution of this Invention Assignment and Confidentiality Agreement and has either done so, or knowingly declined to do so.
		

		
			 
		

		
			
		

		
			

		 

		

			Page A-3

		

 

 
		

		
			13.        Miscellaneous Provisions.  
		

		
			 
		

		
			A.       Further Assurances.  The Parties hereby agree from time to time to execute and deliver such further and other transfers, assignments and documents and do all matters and things that may be convenient or necessary to more effectively and completely carry out the intentions of this Invention Assignment and Confidentiality Agreement.
		

		
			 
		

		
			B.       Survival.  All covenants, agreements, representations and warranties made in this Invention Assignment and Confidentiality Agreement or otherwise made in writing by any party pursuant to this Invention Assignment and Confidentiality Agreement shall survive the execution and delivery of this Invention Assignment and Confidentiality Agreement and the termination of employment of Employee.
		

		
			 
		

		
			C.       Injunctive Relief.  Employee acknowledges that AXOGEN will be irreparably damaged (and damages at law would be an inadequate remedy) if this Invention Assignment and Confidentiality Agreement is not specifically enforced.  Therefore, in the event of a breach or threatened breach by Employee of any provision of this Invention Assignment and Confidentiality Agreement, AXOGEN shall be entitled, in addition to all other rights or remedies, to injunctions restraining such breach or threatened breach, without being required to show any actual damage or to post any bond or other security.
		

		
			 
		

		
			D.       AxoGen, Inc.  For purposes of this Agreement the defined term AXOGEN or Employer shall include AxoGen, Inc., AxoGen Corporation parent corporation.
		

		
			 
		

		
			THE PARTIES TO THIS AGREEMENT have executed this Invention Assignment and Confidentiality Agreement as of the 11th day of March, 2016.
		

		
			 
		

			
					
						 

					
					
						AXOGEN Corporation 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/Karen Zaderej

				
	
					
						 

					
					
						Name:

					
					
						Karen Zaderej

				
	
					
						 

					
					
						Title:

					
					
						CEO

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						EMPLOYEE

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/Kevin Leach

				
	
					
						 

					
					
						Kevin Leach

				

		
			 
		

		
			
		

		
			

		 

		

			Page A-4

		

 

 
		

		
			EXHIBIT B TO EMPLOYMENT AGREEMENT
		

		
			NON-SOLICITATION AND NON-COMPETITION AGREEMENT
		

		
			 
		

		
			THIS NON-SOLICITATION AND NON-COMPETITION AGREEMENT (the "NSNC Agreement") is entered into as of the date written below by and between AXOGEN Corporation ("AXOGEN" or "Employer") and the undersigned AXOGEN employee ("Employee").  
		

		
			 
		

		
			RECITALS:
		

		
			 
		

		
			A.       WHEREAS, Employee has agreed to accept employment with AXOGEN; and  
		

		
			 
		

		
			B.       WHEREAS, the Parties desire to reflect their agreement as to Employee's promises regarding Employee's solicitation and competition, which have induced AXOGEN to employ Employee.
		

		
			 
		

		
			NOW, THEREFORE, in consideration of Employee's employment with AXOGEN and the covenants set forth in this Agreement and other good and valuable consideration, the Parties, intending to be legally bound by this Agreement, agree as follows:
		

		
			 
		

		
			1.        Non-solicitation.  Employee shall not, at any time while employed by AXOGEN and for one (1) years after the termination of Employee's employment with AXOGEN for any reason whatsoever, or for no reason, directly or indirectly (by assisting or suggesting to another, or otherwise) solicit, otherwise attempt to induce or accept the initiative of another in such regard, alone or by combining or conspiring with any employees, officers, directors, agents, consultants, representatives, contractors, suppliers, distributors, customers or other business contacts of AXOGEN to terminate or modify its position as an employee, officer, director, agent, consultant, representative, contractor, supplier, distributor, customer or business contact with AXOGEN or to compete against AXOGEN.
		

		
			 
		

		
			2.        Non-competition.  Employee shall not, at any time while employed by AXOGEN and for one (1) years after such termination of Employee’s employment for any reason whatsoever, or for no reason (the "No-Compete Period"), directly or indirectly, as owner, officer, director, employee, agent, lender, broker, investor, consultant or representative of any corporation or as owner of any interest in, or as an employee, agent, consultant, partner, independent contractor, affiliate or in any other capacity whatsoever, or representative of any other form of business association, sole proprietorship or partnership, conduct or assist in any way any business that competes directly with AxoGen’s then-current or planned products or business. 
		

		
			 
		

		
			3.        Non-Interference.  In addition to, and not in limitation of, the other provisions of this Agreement, or of any other agreement between Employee and AXOGEN, Employee shall not at any time, in any manner, interfere with, disturb, disrupt, decrease or otherwise jeopardize the business of AXOGEN, or give to any person the benefit or advantage of AXOGEN’s or Corp.’s methods of operation, advertising, publicity, training, business customers or accounts, or any other information relating or useful to AXOGEN’s or Corp.’s business.
		

		
			 
		

		
			4.        Representations and Warranties.  Employee does hereby represent and warrant to the Employer that:
		

		
			 
		

		
			
		

		
			

		 

		

			Page A-5

		

 

 
		

		
			(i)       Employee is not presently employed by, and/or have any ownership interest, either directly or indirectly, in any entity or business, and is not presently engaged in any outside business activity in competition with AXOGEN;
		

		
			 
		

		
			(ii)       this NSNC Agreement is executed by Employee to protect the legitimate business interests of the Employer; 
		

		
			 
		

		
			(iii)       legitimate business interests of the Employer to be protected by this NSNC Agreement include, without limitation, the protection of:
		

		
			 
		

		
			a.        valuable trade secrets of the Employer;
		

		
			b.        the customer and vendor base of the Employer;
		

		
			c.        confidential customer and vendor information belonging to the Employer;
		

		
			d.        substantial business relationships between the Employer and its existing and prospective customers and vendors;
		

		
			e.        goodwill associated with the specialized expertise of Employer; and
		

		
			f.         specialized training undertaken by the Employer and its employees.
		

		
			 
		

		
			(iv)       the other covenants and restrictions of this NSNC Agreement are appropriate and reasonable in all respects in light of the legitimate business interests of the Employer to be protected. 
		

		
			 
		

		
			(v)       the Employer and Employee have considered the public’s health, safety and welfare, and that nothing contained in this NSNC Agreement will adversely affect the public’s health, safety or welfare.
		

		
			 
		

		
			(vi)       the execution and delivery of this NSNC Agreement, and the restrictions contained herein, the performance by Employee of the covenants and agreements contained herein, and the enforcement by the Employer of the provisions contained herein, will cause no undue hardship on Employee.
		

		
			 
		

		
			5.        Other Restrictions.  In consideration of Employer’s agreement to employ, or to continue the employment of, Employee, and in accordance with the terms and conditions of this NSNC Agreement, the Employee hereby agrees as follows:
		

		
			 
		

		
			(i)       The restrictions on employment contained above are essential elements of this NSNC Agreement, and that, but for the agreement of Employee to comply with such restrictions, the Employer would not have entered into the NSNC Agreement or the Agreement.  The restrictions contained within this NSNC Agreement are reasonably necessary to protect the legitimate business interests of the Employer.  The restrictions assist in assuring the continuity and growth of the Employer in the achievement of its goals and objectives.  The legitimate business interests justifying the restrictions include, but are not limited to, trade secrets, valuable business information or professional information that otherwise do not qualify as trade secrets, substantial relationships with prospective and existing customers and vendors, or goodwill associated with the name of the Employer. 
		

		
			 
		

		
			
		

		
			

		 

		

			Page A-6

		

 

 
		

		
			6.        Remedies for Breach.  Employee acknowledges and agrees that, in the event of a breach or threatened breach of any of the provisions of this NSNC Agreement, the Employer would suffer irreparable harm for which monetary damages would be inadequate.  Accordingly, in addition to any other remedies available, at law or in equity, in the event of a breach or threatened breach by Employee of such provisions, the Employer will be entitled to equitable relief in the form of an injunction against such breach, both preliminary and permanent, without the requirement to post a bond or other security or to prove irreparable injury or inadequate remedy at law, specific performance or other appropriate relief.
		

		
			 
		

		
			7.        Tolling.  In the event that the Employer shall file a lawsuit in any court of competent jurisdiction alleging a breach of any of Employee’s obligations under this NSNC Agreement, then any time period set forth in this NSNC Agreement, including the time periods set forth above, shall be deemed tolled as of the time such lawsuit is filed and shall remain tolled until such dispute finally is resolved either by written settlement agreement resolving all claims raised in such lawsuit or by entry of a final judgment in such lawsuit, including the final resolution of any post-judgment appellate proceedings.
		

		
			 
		

		
			8.        Assignment.  This NSNC Agreement and all rights and benefits hereunder are personal to Employee, and neither this NSNC Agreement, nor any right or interest herein of Employee shall be voluntarily or involuntarily sold, transferred or assigned by Employee; provided, however, that the Employer may assign its rights, duties and obligations hereunder without the prior written consent of Employee.
		

		
			 
		

		
			9.        Severability.  In the event any provision of this NSNC Agreement is held illegal or invalid, the remaining provisions of this NSNC Agreement and the Agreement shall not be affected thereby.  If any of the restrictions contained in this NSNC Agreement or any part thereof is held to be unenforceable, the Parties agree that the court making such determination will have the power to reform the provisions of this NSNC Agreement to the extent permitted by applicable law.
		

		
			 
		

		
			10.        No Defense to Enforcement.  The existence of any claim or cause of action by Employee against AXOGEN predicated on the Agreement herein, shall not constitute a defense to the enforcement by AXOGEN of this NSNC Agreement.  
		

		
			 
		

		
			 
		

		
			 
		

		
			THE PARTIES TO THIS AGREEMENT have executed this Agreement as of the 11th day of March,  2016.
		

		
			 
		

		
			 
		

		
			 
		

			
					
						

					
					
						 

					
					
						 

				
	
					
						 

					
					
						AXOGEN Corporation

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/Karen Zaderej

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:  

					
					
						Karen Zaderej

				
	
					
						 

					
					
						Title:

					
					
						CEO

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						EMPLOYEE

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/Kevin Leach

				
	
					
						 

					
					
						Kevin Leach

				

		
			 
		

		 

		

			Page A-7EX-10.1

 Exhibit 10.1 

UNITED COMMUNITY FINANCIAL CORP. 

2016 ANNUAL INCENTIVE PLAN AWARD AGREEMENT 

This 2016 Annual Incentive Plan Award Agreement (this “Agreement”) is made and entered into as of [Date], (the “Grant
Date”) by and between United Community Financial Corp. (the “Company”) and [Name] (the “Grantee”). 

WHEREAS, the Company has adopted the United Community Financial Corp. 2015 Long Term Incentive Plan (the “Plan”) pursuant to
which cash and Restricted Shares may be granted. Capitalized terms that are used but not defined herein have the meanings ascribed to such terms in the Plan; 

WHEREAS, the Plan provides for Annual Bonus Awards; 

WHEREAS, the Committee has determined that it is in the best interests of the Company and its shareholders to grant the Annual Bonus
Award provided for herein. 
 NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows: 

1. Grant of Target Award and Form of Payout. 

The Company hereby grants to the Grantee a target award as further set forth in Statement of Award attached hereto as Exhibit A
and incorporated herein by reference (the “Target Award”). Following the end of the calendar year, the Committee will certify performance results based on the results determined under the Corporate Performance Payout Table below and the
level of achievement of the Grantee’s personal performance goals. The allocation of the Target Award between the Grantee’s personal goals and the Corporate Performance goals is set forth in the Statement of Award attached hereto as
Exhibit A and incorporated herein by reference. Utilizing the Company’s performance results and the level of achievement of the Grantee’s personal performance goals as certified by the Committee, the Committee will determine the
actual earned Target Award. The actual earned Target Award as determined and certified by the Committee is referred to in this Agreement as the “Actual Award.” Following the determination of the Actual Award, the Grantee shall receive a
revised Statement of Award, setting forth the level of achievement of all goals, the amount of the Actual Award, and the applicable vesting schedule for any Restricted Shares. Eighty percent (80%) of the Actual Award will be paid in cash (the
“Cash Payment”) as soon as practicable, but not later than March 15, 2017, and the remaining twenty percent (20%) of the Actual Award will be paid in Common Shares of the Company (the “Restricted Shares”), as soon as
practicable, but not later than March 15, 2017, on the terms and conditions and subject to the restrictions set forth in this Agreement and the Plan. The number of Restricted Shares earned will be determined by the Fair Market Value of the
Common Shares on the date determined by the Committee following certification of the performance results. 
 The “Performance
Period” shall be the period commencing on January 1, 2016, and ending on December 31, 2016. 
 2. Performance Goals and Average
Compensation. 
 The amount of the Actual Award earned by the Grantee for the Performance Period will be determined at the end of the
Performance Period based on the level of achievement of the Performance Goals listed below and the personal performance goals of the Grantee, and the amount of the Grantee’s average base salary for the Performance Period. All determinations of
whether Performance Goals have been achieved, the amount of the Actual Award earned by the Grantee, the adjustments attributed to changes in average base salary, and all other matters related to this Section 2 shall be made by the Committee in its
sole discretion. 
 Promptly following completion of the Performance Period (and no later than sixty (60) days following the end of the
Performance Period), the Committee will review and certify in writing (a) whether, and to what extent, the Performance Goals for the Performance Period have been achieved, and (b) the amount of the Actual Award that

  
 1 

 
the Grantee shall earn, if any, subject to compliance with the requirements of Section 3 (the date upon which the Committee certifies performance is referred to in this Agreement as the
“Certification Date”). Such certification shall be final, conclusive and binding on the Grantee, and on all other persons, to the maximum extent permitted by law. 

As noted above, following the Certification Date, the Actual Award will be reflected on a Statement of Award, the form of which is attached
hereto as Exhibit A. 
 Peer Group: 

The Peer Group includes the following eighteen (18) organizations: 
  

			
	BankFinancial Corp (BFIN)	  	Independent Bank Corp. (OBCP)
	Farmers National Banc Corp (FMNB)	  	Lakeland Financial Corporation (LKFN)
	Farmers & Merchants Bancorp (FMAO)	  	LCNB Bancorp Inc. (LCNB)
	First Defiance Financial Corp. (FDEF)	  	MainSource Financial Group, Inc. (MSFG)
	Civista Bancshares, Inc. (CIVB)	  	Mercantile Bank Corp. (MBWM)
	First Financial Corporation (THFF)	  	Mutualfirst Financial Inc. (MFSF)
	First Mid-Illinois Bancshares (FMBH)	  	Peoples Bancorp Inc. (PEBO)
	German American Bancorp Inc. (GABC)	  	QCR Holdings, Inc. (QCRH)
	Horizon Bancorp. (HBNC)	  	Stock Yards Bancorp, Inc. (SYBT)

 The Committee maintains discretion to amend, modify and replace one or more members of the Peer Group when
events warrant, such as in the event that a Peer Group member ceases to be a reporting company or is acquired and in other similar circumstances. The Committee has approved two (2) replacement peers to be used as substitutes: Macatawa Bank
Corp. (MCBC) and Old Second Bancorp, Inc. (OSBC). 
 Net Income Requirement: 

The Target Award shall be forfeited and no amount of such Award shall be paid if the Company does not report positive net income for the 2016
fiscal year, calculated in accordance with GAAP, but adjusted to exclude the effect of extraordinary items. If this requirement is met, the Actual Award will be calculated as described below. 

Performance Measures, Weightings, Goals and Payout Calibration: 

The Committee has identified seven (7) financial performance measures that are aligned with the Company’s goals. Each of the seven (7)
performance measures has a weighting ranging from 10% to 30%. The Company’s results on two (2) of the seven (7) measures will be evaluated relative to the peer group and the other measures (Net Income, ROAA, Loan Growth and Revenue Growth) will
be evaluated relative to the Board-approved annual budget compared to the performance goals or based upon actual results compared to the performance goals, all pursuant to the Performance Payout Table below. 

  
 2 

 Performance-Payout Table: 
  

													
	 	  	 	 	 	Evaluated	  	Performance Goals
	 Performance Measure
	  	Weight	 	 	vs.	  	Threshold	  	Target	  	Superior
						
	 Net Income ($MM)
	  	 	30	% 	 	Budget	  	85% of Budget	  	100% of Budget	  	115% of Budget
						
	 ROAA
	  	 	15	% 	 	Budget	  	ROAA of 0.85	  	ROAA of 0.93	  	ROAA of 1.01
						
	 Revenue Growth ($MM)
	  	 	15	% 	 	Budget	  	$78.097	  	$86.774	  	$95.451
						
	 Growth in Average Loans
	  	 	10	% 	 	Actual	  	9.0%	  	14.0%	  	19.0%
						
	 Core Deposit Growth
	  	 	10	% 	 	Peers	  	25th %ile	  	50th %ile	  	75th %ile
						
	 Efficiency Ratio
	  	 	10	% 	 	Peers	  	25th %ile	  	50th %ile	  	75th %ile
						
	 Non-Performing Assets
	  	 	10	% 	 	Actual	  	1.05%	  	0.79%	  	0.53%
		  				 		  	  
	  	  
	  	  

						
	 Payout for Performance Level (% of Target Opportunity):
	  				 		  	0%	  	100%	  	200%
		  				 		  	  
	  	  
	  	  

 Definitions: 
  

	 	•	 	ROAA: Return on average assets based upon GAAP performance, excluding extraordinary items; 

  

	 	•	 	Revenue Growth: Total revenue (net interest income plus noninterest income) projected in the budget compared to actual total revenue from January 1 – December 31; 

 

	 	•	 	Net Income: GAAP Net Income, excluding extraordinary items; 

  

	 	•	 	Growth in Average Loans: Growth in loans based upon average daily balances (including loans held for sale) from January 1 – December 31; 

 

	 	•	 	Core Deposit Growth: Total average deposits less brokered deposits; 

  

	 	•	 	Efficiency Ratio: Operating Expense divided by Operating Revenue; and 

  

	 	•	 	Non-Performing Assets: Total NPAs divided by Total Assets. 

 The Committee maintains
flexibility and discretion amend, modify, terminate or otherwise adjust the Plan, as necessary, including, but not limited to, adjusting measure definitions, if such adjustments ensure a better comparison relative to the peer group and most
appropriately reflect the goals of the AIP and the Company’s compensation philosophy. 
 3. Vesting. 

(a) Vesting of Restricted Shares. The Restricted Shares earned shall be subject to risk of forfeiture depending on Continuous Service
until they vest. In order to be earned the Grantee must be a Company Employee on the Certification Date. Except as otherwise provided herein, the portion of the Actual Award that constitutes the Restricted Shares shall vest and no longer be subject
to risk of forfeiture over a three (3) year period beginning on the first anniversary of the Certification Date in 2018, and ending on the third anniversary of the Certification Date in 2020. Provided that the Grantee’s period of Continuous
Service has not ended before the respective anniversary dates of the Certification Date in 2018, 2019 and 2020, the Restricted Shares will vest in equal one-third (1/3) increments each year (each an 

  
 3 

 
“anniversary date”). The period over which the Restricted Shares vest is referred to as the “Restricted Period.” “Continuous Service” means that the Grantee’s
service with the Company as an Employee is not terminated. 
 (b) Vesting of the Cash Payment. Except as otherwise provided in
this Agreement, the portion of the Actual Award that constitutes the Cash Payment shall be vested on the Certification Date provided the Grantee is employed by the Company on that date. 

4. Termination of Continuous Service. 

(a) Except as otherwise expressly provided in this Agreement, if the Grantee’s Continuous Service terminates for any reason at any time
before any part of the Target or Actual Award has vested, the Grantee’s unvested Target or Actual Award shall be automatically forfeited upon such termination of Continuous Service, and neither the Company nor any Affiliate shall have any
further obligations to the Grantee under this Agreement. 
 (b) Notwithstanding Section 4(a): 

 

	 	(i)	If the Grantee’s Continuous Service terminates before the Target Award has vested as a result of the Grantee’s death or Disability, the Target Award shall vest in accordance with Section 3 as if the
Grantee’s Continuous Service had not terminated. The Cash Payment and Common Shares that would have constituted Restricted Shares but for vesting in accordance with this Section 4(b)(i) comprising the Actual Award shall be paid to the Grantee
or Grantee’s estate or beneficiary(ies) as the case may be in accordance with Section 1; 

  

	 	(ii)	If the Grantee’s Continuous Service terminates before the end of the Performance Period as a result of Retirement, termination by the Company without Cause, or termination by the Grantee for Good Reason, a pro rata
portion of the unvested Target Award shall vest in proportion to the number of months, including any partial month, elapsed in the Performance Period. The Actual Award shall be determined on the Certification Date, and the Cash Payment and the
Common Shares comprising the Actual Award shall be paid in accordance with Section 1, subject to consideration of Section 409A (any Cash Payment and Common Shares issued are intended to comply with Section 409A); and 

 

	 	(iii)	 If following the Certification Date, the Grantee’s Continuous Service terminates before the Restricted Shares comprising the Actual Award have
vested as a result of Retirement, termination by the Company without Cause, or termination by the Grantee for Good Reason, all unvested Restricted Shares shall vest on the effective date of the Grantee’s separation from service and be paid to
the Grantee in the form of Common 

  
 4 

	 	
Shares within sixty (60) days following the effective date of the Grantee’s termination, subject to consideration of Section 409A (any vesting of Common Shares is intended to comply with
Section 409A). 

 (c) “Good Reason” means the definition of “Good Reason” set forth in the Grantee’s
employment agreement, or in the absence thereof, “Good Reason” means: 
  

	 	(i)	a material reduction in the Grantee’s rate of base salary; or 

  

	 	(ii)	the Company changes by fifty (50) miles or more the principal location in which the Grantee is required to perform services; or 

  

	 	(iii)	the Company terminates, materially amends or materially restricts the Grantee’s participation in, any equity, bonus or equity-based compensation plans or qualified or supplemental retirement plans so that, when
considered in the aggregate with any substitute plan or plans, the plans in which the Grantee is participating materially fail to provide him or her with a level of benefits provided in the aggregate by such plans prior to such termination or
amendment; or 

  

	 	(iv)	the Company materially breaches the provisions of this Agreement. 

 A termination of the
Grantee’s employment shall not be deemed to be for Good Reason unless (i) the Grantee gives notice to the Company of the existence of the event or condition constituting Good Reason within thirty (30) days after such event or condition
initially occurs or exists, (ii) the Company fails to cure such event or condition within thirty (30) days after receiving such notice, and (iii) the Grantee’s termination occurs not later than ninety (90) days after such event or condition
initially occurs or exists, in each case without the Grantee’s written consent. 
 5. Effect of a Change in Control. If there is a Change
in Control during the Performance Period, the Target Award shall be earned and vested at Target levels on the effective date of the Change in Control and the amount of the Target Award shall be paid in cash no later than sixty (60) days following
the effective date of the Change in Control. If there is a Change in Control during the Restricted Period, all unvested Restricted Shares shall vest on the effective date of the Change in Control. 

6. Issuance of Restricted Shares. The Restricted Shares earned will be issued in the name of the Grantee as soon as practicable following the end of
the Performance Period and in any event not later than two and one-half (2-1/2) months following the end of the Performance Period. The Company’s transfer agent and/or share transfer records will show the Grantee as the owner of record of the
Restricted Shares as of the date of issuance. 
 The Company or the Company’s agent will hold (either physical or uncertificated form)
the Restricted Shares for the period of time that the Restricted Shares are subject to forfeiture (until vested) and the certificate or certificates representing the Restricted Shares will be delivered to the Grantee after the Restricted Shares are
no longer subject to substantial risk of forfeiture. Such delivery may take the form of an electronic transfer of the vested Restricted Shares to the Grantee’s brokerage or other financial account. 

  
 5 

 7. Transferability. Subject to any exceptions set forth in this Agreement or the Plan, until vested, the
Target or unvested Restricted Shares comprising the Actual Award or the rights relating thereto may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Grantee. Any attempt to assign, alienate, pledge,
attach, sell or otherwise transfer or encumber the Target or unvested Restricted Shares comprising the Actual Award or the rights relating thereto prior to vesting shall be wholly ineffective and, if any such attempt is made, the Target or unvested
Restricted Shares comprising the Actual Award will be forfeited by the Grantee and all of the Grantee’s rights to such Target or unvested Restricted Shares comprising the Actual Award shall immediately terminate without any payment or
consideration by the Company. 
 8. Rights as Shareholder; Dividends. 

(a) The Grantee shall be the record owner of the Restricted Shares until the Common Shares are sold, forfeited or otherwise disposed of, and
shall be entitled to all of the rights of a shareholder of the Company including, without limitation, the right to vote such shares and receive all dividends or other distributions paid with respect to such shares. 

(b) If the Grantee forfeits any rights he or she has under this Agreement in accordance with Section 3(a), the Grantee shall, on the date of
such forfeiture, no longer have any rights as a shareholder with respect to the Restricted Shares and shall no longer be entitled to vote or receive dividends on such shares. 

9. No Right to Continued Service. Neither the Plan nor this Agreement shall confer upon the Grantee any right to be retained in any position, as an
Employee, Consultant or Director of the Company. Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the Grantee’s Continuous Service at any time, with or without Cause. 

10. Adjustments. On any change in the number or kind of outstanding Common Shares of the Company by reason of recapitalization, merger,
consolidation, reorganization, separation, liquidation, share split, share dividend, combination of shares or any other change in the corporate structure or Common Shares of the Company, the Company, by action of the Committee, is empowered to make
such adjustment, if any, in the number and kind of Common Shares subject to this Agreement as it considers appropriate for the protection of the Company and of the Grantee. 

11. Tax Liability and Withholding. 
 (a)
The Grantee shall be required to pay to the Company, and the Company shall have the right to deduct from any compensation paid to the Grantee pursuant to the Plan, the amount of any required withholding taxes in respect of the Restricted Shares and
to take all such other action as the Committee deems necessary to satisfy all obligations for the payment of such withholding taxes. The Committee may permit the Grantee to satisfy any federal, state or local tax withholding obligation by any
of the following means, or by a combination of such means: 
  

	 	(i)	tendering a cash payment; 

  
 6 

	 	(ii)	authorizing the Company to withhold Common Shares from the Common Shares otherwise issuable or deliverable to the Grantee as a result of the vesting of the Restricted Shares; provided, however, that no Common Shares
shall be withheld with a value exceeding the minimum amount of tax required to be withheld by law; or 

  

	 	(iii)	delivering to the Company previously owned and unencumbered Common Shares. 

 (b)
Notwithstanding any action the Company takes with respect to any or all income tax, social insurance, payroll tax or other tax-related withholding (“Tax-Related Items”), the ultimate liability for all Tax-Related Items is and remains the
Grantee’s responsibility and the Company (i) makes no representation or undertakings regarding the treatment of any Tax-Related Items in connection with the grant or vesting of the Restricted Shares or the subsequent sale of any shares; and
(ii) does not commit to structure the Restricted Shares to reduce or eliminate the Grantee’s liability for Tax-Related Items. 
 12. Section 83(b)
Election. The Grantee may make an election under Code Section 83(b) (a “Section 83(b) Election”) with respect to the Restricted Shares. Any such election must be made within thirty (30) days after the issuance of the shares. If the
Grantee elects to make a Section 83(b) Election, the Grantee shall provide the Company with a copy of an executed version and satisfactory evidence of the filing of the executed Section 83(b) Election with the US Internal Revenue Service. The
Grantee agrees to assume full responsibility for ensuring that the Section 83(b) Election is actually and timely filed with the Internal Revenue Service and for all tax consequences resulting from the Section 83(b) Election. 

13. Compliance with Law. The issuance and transfer of Common Shares shall be subject to compliance by the Company and the Grantee with all applicable
requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company’s Common Shares may be listed. No Common Shares shall be issued or transferred unless and until any then
applicable requirements of state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. The Grantee understands that the Company is under no obligation to register the Common Shares
with the Securities and Exchange Commission (“SEC”), any state securities commission or any stock exchange to effect such compliance. 
 14.
Legends. A legend may be placed on any certificate(s) or other document(s) delivered to the Grantee indicating restrictions on transferability of the shares of Restricted Shares pursuant to this Agreement or any other restrictions that
the Committee may deem advisable under the rules, regulations and other requirements of the SEC, any applicable federal or state securities laws or any stock exchange on which the Common Shares are then listed or quoted. 

  
 7 

 15. Notices. Any notice required to be delivered to the Company under this Agreement shall be in writing
and addressed to the Secretary of the Company at the Company’s principal corporate offices. Any notice required to be delivered to the Grantee under this Agreement shall be in writing and addressed to the Grantee at the Grantee’s address
as shown in the records of the Company. Either party may designate another address in writing (or by such other method approved by the Company) from time to time. 

16. Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the State of Ohio without regard to conflict of
law principles. 
 17. Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by the Grantee or the
Company to the Committee for review. The resolution of such dispute by the Committee shall be final and binding on the Grantee and the Company. 
 18.
Target Award Subject to Plan. This Agreement is subject to the Plan as approved by the Company’s shareholders. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In
the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail. 

19. Successors and Assigns. The Company may assign any of its rights under this Agreement. This Agreement will be binding upon and inure to the benefit
of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon the Grantee and the Grantee’s beneficiaries, executors, administrators and the person(s) to whom the
Target or Actual Award or the rights relating thereto may be transferred by will or the laws of descent or distribution. 
 20.
Severability. The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan and this
Agreement shall be severable and enforceable to the extent permitted by law. 
 21. Discretionary Nature of Plan. The Plan is discretionary and may
be amended, cancelled or terminated by the Company at any time, in its discretion. The grant of the Target Award in this Agreement does not create any contractual right or other right to receive any Target Award or other Awards in the future. Future
Awards, if any, will be at the sole discretion of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Grantee’s employment with the Company. 

22. Amendment. The Committee has the right to amend, alter, suspend, discontinue or cancel the Target Award, prospectively or retroactively; provided
that, no such amendment shall adversely affect the Grantee’s material rights under this Agreement without the Grantee’s consent. 

  
 8 

 23. Section 162(m). All payments under this Agreement are intended to constitute “qualified
performance-based compensation” within the meaning of Section 162(m) of the Code. This Award shall be construed and administered in a manner consistent with such intent. 

24. Section 409A. This Agreement is intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed and
interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits
provided under this Agreement comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Grantee on account of
non-compliance with Section 409A of the Code. 
 25. No Impact on Other Benefits. Except as otherwise provided in a Grantee’s employment
agreement, the value of the Grantee’s Target Award is not part of his or her normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit. 

26. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will
constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the
original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature. 

27. Acceptance. The Grantee hereby acknowledges receipt of a copy of the Plan and this Agreement. The Grantee has read and understands the
terms and provisions thereof, and accepts the Target Award subject to all of the terms and conditions of the Plan and this Agreement. The Grantee acknowledges that there may be adverse tax consequences upon the vesting or settlement of the
Restricted Shares or disposition of the underlying shares and that the Grantee has been advised to consult a tax advisor prior to such vesting, settlement or disposition. 

28. Clawback. Notwithstanding any other provisions in this Agreement or the Plan, all payments made to the Grantee pursuant to this Agreement shall be
subject to recovery, deduction or clawback (collectively, “Clawback”) under any applicable law, regulation, stock exchange listing requirement requiring Clawback and under the Company’s Compensation Adjustment and Recoupment Policy
(adopted by the Board on March 17, 2015), as may be amended from time to time. 
 [Signature Page Follows] 

  
 9 

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

			
	United Community Financial Corp.
	
	  

	Name:	 	[Name]
	Title:	 	[Title]
	
	  

	Name:	 	[Name]

  
 10 

 EXHIBIT A 

2016 ANNUAL INCENTIVE PLAN 

STATEMENT OF AWARD 
  

							
	 Grantee’s Name and Address:
	  				  	
			
	 [Name]
	  				  	
	 [Address]
	  				  	
			
	 Target Award:
	  				  	$             (            % of your base salary)
			
	 Corporate Performance %:
	  	 	  	% 	  	
	 Personal Performance %:
	  	 	  	% 	  	
			
	 Actual Award:
	  				  	
			
	 Award Date:
	  				  	
			
	 Corporate Performance %:
	  	 	  	% 	  	
	 Personal Performance %:
	  	 	  	% 	  	
			
	 Total Award:
	  				  	$                    ; comprised of:
	 Cash Payment:
	  	$	            	  	  	
	 Restricted Shares:
	  				  	Restricted Shares
	 Current Fair Market Value of Restricted Shares
	  				  	$

 Vesting Schedule of Your Restricted Shares: 

The Restricted Shares shall vest in accordance with the following schedule: 

 

					
	 Date
	  	Number of Shares Covered by Award that
Become Exercisable	  	Cumulative Percentage Vested
		  		  	
		  		  	
		  		  	

 2016 UCFC Long Term Incentive Plan-Long Term Incentive Plan PSU Award Agreement (NEO)

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