FARMERS NATIONAL BANC CORP. CASH LONG-TERM INCENTIVE AWARD AGREEMENT
Exhibit 10.9
FARMERS NATIONAL BANC CORP.
CASH LONG-TERM INCENTIVE AWARD AGREEMENT
(201__)
Farmers National Banc Corp. (the “Company”) hereby grants the undersigned Participant an Award pursuant to the Farmers National Banc Corp. Long-Term Incentive Plan (the “Cash LTI Plan”), and this Award Agreement (this “Award Agreement”) is effective the day of , 201__.
1.Name of Participant: _______________
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Performance Period: The three-year period beginning January 1, 201__ and ending on December 31, 201__ (the “Performance Period”). |
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Target Cash Award as Percentage of Base Compensation: [____]% x .3 (the “Target Cash Award”). |
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Earning an Award: At the end of the Performance Period, the Participant shall be eligible to receive a payment equal to between 0% and 250% of the Target Cash Award based on the achievement of the Performance Objectives set forth below during the Performance Period. Performance between two stated levels will be interpolated when determining the percentage of the Target Cash Award earned. Performance with respect to each Performance Objective is calculated separately. |
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(a) |
The Target Cash Award can be earned based on the Company’s Total Shareholder Return during the Performance Period compared to the Total Shareholder Return of the Peer Group during the Performance Period (“Relative TSR”) that corresponds to the percentage below: |
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Relative TSR Compared to Peer Group during Performance Period |
Percentage of Target Cash Award Earned |
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Equal to or less than Peer Group 25th percentile |
0% |
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Equal to Peer Group 50th percentile |
50% |
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Equal to Peer Group 59th percentile |
100% |
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Equal to or higher than Peer Group 85th percentile |
250% |
For this purpose: (i) Relative TSR shall be determined by the Committee in its sole discretion; and (ii) the Committee shall select the institutions constituting, and make such periodic adjustments as it determines appropriate to, the “Peer Group” in its sole discretion.
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Payment of Award: With respect to the Performance Period, the Committee shall certify the level of achievement of the Performance Objectives and determine the amount payable with respect to an Award based on the level of achievement of the Performance Objectives set forth in Section 4. Payment of the Award shall be made to the Participant in cash in a single lump sum between January 1 and March 15 of the year following the end of the Performance Period. |
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Limitations on Payment of Award: The Committee may, in its sole discretion, reduce the amount payable with respect to the Award. |
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Forfeiture of Awards: If the Company is required to prepare an accounting restatement due to material non-compliance of the Company, as a result of misconduct by a Participant, with any financial reporting requirement under any applicable laws, the Participant shall reimburse the Company for all amounts received under the Cash LTI Plan within 30 days after receipt of notice of the same from the Company. |
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Death, Disability or Retirement. If the Participant dies, becomes Disabled or Retires during the last 12 months of the Performance Period, the amount payable with respect to the Participant’s Award (if any) shall be multiplied by a fraction, the numerator of which is the number of whole months elapsed during the Performance Period prior to the Participant’s death, Disability or Retirement and the denominator of which is 36. Payment shall be made at the same time and in the same form, and subject to the same conditions, as set forth in Section 5. |
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Termination for Cause. If the Participant is Terminated for Cause (regardless of whether such Termination would also constitute a Retirement) during the Performance Period, the Participant shall forfeit any right to payment with respect to the Award. |
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Effect of Change in Control: Notwithstanding the foregoing, if the Participant is Terminated by the Company, other than for “Cause” within two years following a Change in Control, the Participant shall be entitled to receive a payment equal to the amount payable with respect to the Awards as though the Performance Objectives had been satisfied at the “target” level of achievement for the Performance Period. Payment with respect to the Award will be made in a single lump-sum cash payment within 60 days following the date of Termination. |
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Miscellaneous: |
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(a) |
Non-Transferability. An Award may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, except by will or the laws of descent and distribution. |
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(b) |
Beneficiary. Unless otherwise specifically designated by the Participant in writing, a Participant’s beneficiary under the Cash LTI Plan shall be the Participant’s spouse or, if no spouse survives the Participant, the Participant’s estate. |
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(c) |
No Right to Continued Service or to Awards. The granting of an Award shall impose no obligation on the Company or any Affiliate to continue the employment of a Participant or interfere with or limit the right of the Company or any Affiliate to Terminate the employment of the Participant at any time, with or without Cause, which right is expressly reserved. |
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(d) |
Tax Withholding. The Company or an Affiliate, as applicable, shall have the power and the right to deduct, withhold or collect any amount required by law or regulation to be withheld with respect to any taxable event arising with respect to an Award granted under the Cash LTI Plan. |
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(e) |
Requirements of Law. The grant of Awards shall be subject to all applicable laws, rules and regulations (including applicable federal and state securities laws) and to all required approvals of any governmental agencies or national securities exchange, market or other quotation system. |
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(f) |
Governing Law. The Cash LTI Plan and all Award Agreements shall be governed by and construed in accordance with the laws of (other than laws governing conflicts of laws) the State of Ohio. |
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(g) |
Award Subject to Cash LTI Plan. The Award is subject to the terms and conditions described in this Award Agreement and the Cash LTI Plan, which is incorporated by reference into and made a part of this Award Agreement. In the event of a conflict between the terms of the Cash LTI Plan and the terms of this Award Agreement, the terms of the Cash LTI Plan will govern. The Committee has the sole responsibility of interpreting the Cash LTI Plan and this Award Agreement, and its determination of the meaning of any provision in the Cash LTI Plan or this Award Agreement will be binding on the Participant. Capitalized terms that are not defined in this Award Agreement have the same meanings as in the Cash LTI Plan. |
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(i) |
Signature in Counterparts. This Award Agreement may be signed in counterparts, each of which will be deemed an original, but all of which will constitute one and the same instrument. |
[signature page attached]
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PARTICIPANT |
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Date: |
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Print Name: |
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FARMERS NATIONAL BANC CORP. |
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By: |
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Date: |
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Its: |
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