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EXHIBIT 10(w)




OLD NATIONAL BANCORP

1999 EQUITY INCENTIVE PLAN

“PERFORMANCE-BASED” RESTRICTED STOCK AWARD AGREEMENT




     THIS AWARD AGREEMENT (the “Agreement”), made and executed as of the 25th day of January,
2007, between Old National Bancorp, an Indiana corporation (the “Company”), and
                                        , an officer or employee of the Company or one of its Affiliates (the
“Participant”).



WITNESSETH:




     WHEREAS, the Company has adopted the Old National Bancorp 1999 Equity Incentive Plan (the
“Plan”) to further the growth and financial success of the Company and its Affiliates by aligning
the interests of Participants, through the ownership of Shares and through other incentives, with
the interests of the Company’s shareholders; to provide Participants with an incentive for
excellence in individual performance; and to promote teamwork among Participants; and



     WHEREAS, it is the view of the Company that this goal can be achieved by granting Restricted
Stock to eligible officers and other key employees; and



     WHEREAS, the Participant has been designated by the Compensation Committee as an individual to
whom Restricted Stock should be granted as determined from the duties performed, the initiative and
industry of the Participant, and his or her potential contribution to the future development,
growth and prosperity of the Company;



     NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained,
the Company and the Participant agree as follows:



     1. Award of Restricted Stock. The Company hereby awards to the Participant
                                         (                    ) Shares of performance-based Restricted Stock (hereinafter, the
“Restricted Stock”), subject to the terms and conditions of this Agreement and the provisions of
the Plan. This award will be earned if target level performance is achieved. All provisions of
the Plan, including defined terms, are incorporated herein and expressly made a part of this
Agreement by reference. The Participant hereby acknowledges that he or she has received a copy of
the Plan.



     2. Performance Goals. Except as otherwise provided in Sections 4 and 5 of this Agreement,
the Restricted Stock will be treated as earned to the extent the Performance Goals specified in
Exhibit A are satisfied. To the extent the Performance Goals are not satisfied (with the
result that either no Shares or less than all Shares of Restricted Stock have been earned), then
the unearned Shares will be forfeited, effective as of the last day of the Performance Period,
regardless of whether the Period of Restriction has otherwise lapsed under Section 3 of this
Agreement. To the extent the Performance Goals are exceeded, the participant will earn 100% of the
shares awarded in Section 1, plus the participant will be awarded additional shares in accordance
with the schedule set forth Exhibit A (Calculation of Performance). For example, if the Performance
Level is 130%, the participant will be awarded additional shares equal to 30% of the shares awarded
in Section 1. Notwithstanding the preceding provisions on this Section, the Compensation Committee
may, in its discretion, reduce the number of Shares treated as earned, if it determines that a
significant corporate transaction or other event during the Performance Period, other than the
acquisition of St. Joseph Capital Corporation, either alone or in combination with other
transactions or events, has distorted the intent of one or more of the Performance Goals.



     3. Period of Restriction. The Period of Restriction shall begin on the Grant Date and lapse, except as otherwise
provided in Sections 2, 4 and 5 of this Agreement, on February 1, 2010.



 









 





     4. Change in Control. Notwithstanding any other provision of this Agreement, any
Shares of Restricted Stock, as stated in Section 1, which have not been earned or are subject to
the Period of Restriction, shall be treated as fully earned and the Period of Restriction shall
lapse upon a Change in Control of the Company as provided in Section 12.1 of the Plan.



     5. Termination of Service. Notwithstanding any other provision of this Agreement, in
the event of the Participant’s Termination of Service due to death, Disability or Retirement, the
following shall apply:




	 	(a)	 	If the Participant’s Termination of Service is due to death, the (i) Period of
Restriction shall lapse, and (ii) the Shares shall be treated as earned, at the
“Target” level specified in Exhibit A, effective as of the date of death.
	 
	 	(b)	 	If the Participant’s Termination of Service is due to Disability or Retirement,
(i) he shall continue to be treated as a Participant, (ii) the Period of Restriction
shall lapse at the time specified in Section 3 of this Agreement, and (iii) the Shares
shall be treated as earned to the extent the applicable Performance Goals are
satisfied; provided, however, that if the Participant dies prior to the end of the
Period of Restriction, then the provisions of subsection (a) of this Section 5 shall
apply.





     Unless otherwise determined by the Committee in its sole discretion, in the event of the
Participant’s Termination of Service for any other reason, any Shares of Restricted Stock which
have not been earned and/or with respect to which the Period of Restriction has not lapsed, shall
be forfeited effective as of the date of the Participant’s Termination of Service.



     6. Dividends on Restricted Stock. During the Period of Restriction, the Participant
shall be entitled to receive any cash dividends paid with respect to the Shares of Restricted
Stock, regardless of whether such Shares have been earned or the Period of Restriction has not
lapsed. All stock dividends paid with respect to Shares of Restricted Stock shall be (a) added to
the Restricted Stock, and (b) subject to all of the terms and conditions of this Agreement and the
Plan.



     7. Voting Rights. During the Period of Restriction, the Participant may exercise all
voting rights with respect to the Shares of Restricted Stock as if he or she is the owner thereof.



     8. Participant’s Representations. The Participant represents to the Company that:




	 	(a)	 	The terms and arrangements relating to the grant of Restricted Stock and the
offer thereof have been arrived at or made through direct communication with the
Company or person acting in its behalf and the Participant;
	 
	 	(b)	 	The Participant has received a balance sheet and income statement of the
Company and as an officer or key employee of the Company:






	 	(i)	 	is thoroughly familiar with the Company’s business affairs and
financial condition and
	 
	 	(ii)	 	has been provided with or has access to such information (and
has such knowledge and experience in financial and business matters that the
Participant
is capable of utilizing such information) as is necessary to evaluate the
risks, and make an informed investment decision with respect to, the grant
of Restricted Stock; and






	 	(c)	 	The Restricted Stock is being acquired in good faith for investment purposes
and not with a view to, or for sale in connection with, any distribution thereof.





     9. Income and Employment Tax Withholding. All required federal, state, city and local
income and employment taxes which arise on the satisfaction of the Performance Goals and the lapse
of



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the Period of Restriction shall be satisfied through the (a) withholding of the Shares required
to be issued under Section 11, or (b) tendering by the Participant of Shares which are owned by the
Participant, as described in Section 6.6(a) of the Plan. The Fair Market Value of the Shares to be
withheld or tendered shall be equal to the dollar amount of the Company’s aggregate withholding tax
obligations, calculated as of the day prior to the day on which the Period of Restriction ends.



     10. Nontransferability. Until the end of the Period of Restriction, the Restricted
Stock cannot be (i) sold, transferred, assigned, margined, encumbered, bequeathed, gifted,
alienated, hypothecated, pledged or otherwise disposed of, whether by operation of law, whether
voluntarily or involuntarily or otherwise, other than by will or by the laws of descent and
distribution; or (ii) subject to execution, attachment or similar process. Any attempted or
purported transfer of Restricted Stock in contravention of this Section 10 or the Plan shall be
null and void ab initio and of no force or effect whatsoever.



     11. Issuance of Shares. At or within a reasonable period of time following execution
of this Agreement, the Company will issue, in book entry form, the Shares representing the
Restricted Stock.



     As soon as administratively practicable following the date on which the Shares of Restricted
Stock are earned and the Period of Restriction lapses, the Company will issue to the Participant or
his Beneficiary the number of Shares of Restricted Stock specified in Exhibit A, less any
withholdings required by Section 9 of this Agreement. In the event of the Participant’s death
before the Shares are issued, such stock certificate will be issued to the Participant’s
Beneficiary or estate in accordance with Section 14.7 of the Plan.



     Notwithstanding the foregoing provisions of this Section 11, the Company will not be required
to issue or deliver any certificates for Shares prior to (i) completing any registration or other
qualification of the Shares, which the Company deems necessary or advisable under any federal or
state law or under the rulings or regulations of the Securities and Exchange Commission or any
other governmental regulatory body; and (ii) obtaining any approval or other clearance from any
federal or state governmental agency or body, which the Company determines to be necessary or
advisable. The Company has no obligation to obtain the fulfillment of the conditions specified in
the preceding sentence. As a further condition to the issuance of certificates for Shares, the
Company may require the making of any representation or warranty which the Company deems necessary
or advisable under any applicable law or regulation. Under no circumstances shall the Company
delay the issuance of shares pursuant to this Section to a date that is later than 2-1/2 months
after the end of the calendar year in which the Period of Restriction lapses, unless issuance of
the shares would violate federal securities law or other applicable law, in which case the Company
shall issue such shares as soon as administratively feasible after such issuance would no longer
violate such laws.



     Notwithstanding the preceding provisions of this Section or any other provision of this
Agreement, no Shares of Restricted Stock shall be transferred to the Participant to the extent that
the Compensation Committee has determined that such transfer would result in the Participant’s
compensation for the year exceeding the applicable compensation limit under Code Section 162(m).
Shares of Restricted Stock whose transfer is affected by the preceding sentence shall be
transferred to the Participant on the earliest date thereafter on which the transfer would not, in
the Compensation Committee’s judgment, result in the
Participant’s compensation for the year exceeding the applicable compensation limit under Code
Section 162(m).



     12. Mitigation of Excise Tax. Except to the extent otherwise provided in a written
agreement between the Company and the Participant, the Restricted Stock issued hereunder is subject
to reduction by the Committee for the reasons specified in Section 14.10 of the Plan.



     13. Indemnity. The Participant hereby agrees to indemnify and hold harmless the
Company and its Affiliates (and their respective directors, officers and employees), and the
Committee, from and against any and all losses, claims, damages, liabilities and expenses based
upon or arising out of the incorrectness or alleged incorrectness of any representation made by the
Participant to the Company or any failure on the part of the Participant to perform any agreements
contained herein. The Participant



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hereby further agrees to release and hold harmless the Company
and its Affiliates (and their respective directors, officers and employees) from and against any
tax liability, including without limitation, interest and penalties, incurred by the Participant in
connection with his or her participation in the Plan.



     14. Financial Information. The Company hereby undertakes to deliver to the
Participant, at such time as they become available and so long as the Period of Restriction has not
lapsed and the Restricted Stock has not been forfeited, a balance sheet and income statement of the
Company with respect to any fiscal year of the Company ending on or after the date of this
Agreement.



     15. Changes in Shares. In the event of any change in the Shares, as described in
Section 4.5 of the Plan, the Committee will make appropriate adjustment or substitution in the
Shares of Restricted Stock, all as provided in the Plan. The Committee’s determination in this
respect will be final and binding upon all parties.



     16. Effect of Headings. The descriptive headings of the Sections and, where
applicable, subsections, of this Agreement are inserted for convenience and identification only and
do not constitute a part of this Agreement for purposes of interpretation.



     17. Controlling Laws. Except to the extent superseded by the laws of the United
States, the laws of the State of Indiana, without reference to the choice of law principles
thereof, shall be controlling in all matters relating to this Agreement.



     18. Counterparts. This Agreement may be executed in two (2) or more counterparts,
each of which will be deemed an original, but all of which collectively will constitute one and the
same instrument.



     IN WITNESS WHEREOF, the Company, by its officer thereunder duly authorized, and the
Participant, have caused this Restricted Stock Award Agreement to be executed as of the day and
year first above written.



PARTICIPANT




	 	 	 	 	 
	 

Signature

	 	 

Printed Name
	 	 






OLD NATIONAL BANCORP




	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Allen R. Mounts

EVP, Chief Human Resources Officer


Old National Bancorp	 	 







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EXHIBIT A



Grant Date: January 25, 2007



Shares of Restricted Stock Awarded: See Section 1 of the Agreement



Performance Period: January 1, 2007 through December 31, 2009




OVERVIEW



To continue its objective of focusing the executive officers on creation of stockholder value, Old
National Bancorp’s Compensation Committee has approved a 3-year Performance Based Restricted Stock
award to executive officers, which could be earned on December 31, 2009 based on the collective
results of the following three performance factors:





	 	1.	 	Earnings Per Share (EPS) Growth
	 
	 	2.	 	Total Revenue (defined as net interest income and total non-interest income, as
reflected in year end financial statements) Growth
	 
	 	3.	 	Net Charge Off Ratio





DEFINITION OF PERFORMANCE FACTORS




Earnings Per Share (EPS):



Earnings Per Share is defined as GAAP EPS, disregarding, however, extraordinary items and
non-recurring charges, both as determined under GAAP, recognized in a period after the quarter
ending March 31, 2007.




Total Revenue:



The sum of net interest income and total non-interest income (as reflected in year-end financial
statements), disregarding, however, extraordinary items, as determined under GAAP, recognized in a
period after the quarter ending March 31, 2007.




Net Charge Off Ratio:



Net Charge Off Ratio is defined as the three year average ratio of Net Charge Offs to Average Loans
for the periods ending 2007, 2006 and 2009.




PERFORMANCE WEIGHTS



“Performance Weight” equals the relative importance of each performance measure in evaluating
performance and determining the number of Performance Based Restricted Shares earned. The
following weight has been assigned to each performance factor:




	 	 	 	 	 	 	 	 	 
	EPS	 	Revenue	 	 
	Growth	 	Growth	 	Net Charge Off Ratio
	50%

	 	 	25	%	 	 	25	%






 









 






CALCULATION OF PERFORMANCE



For each Performance Factor, the performance level (1) will be determined at the end of
the performance period. The performance level will then be multiplied times the Performance Weight
for each Performance Factor, resulting in Old National’s Weighted Average Performance Level.
(1) The table below shows the percent of the Shares Awarded (Section 1 of Agreement)
that may be earned at various performance levels:




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	2009 Total	 	Net Charge Off	 	 
	Performance	 	2009 GAAP	 	Revenue	 	Ratio (3yr	 	Performance
	Range	 	EPS	 	($000)	 	Average)	 	Level
	MAXIMUM
	 	$	1.44	 	 	$	455,083	 	 	 	0.200	%	 	 	200	%
	 
	 	 	 	 	 	 	451,328	 	 	 	0.210	%	 	 	190	%
	 
	 	 	1.43	 	 	 	447,572	 	 	 	0.220	%	 	 	180	%
	 
	 	 	 	 	 	 	443,817	 	 	 	0.230	%	 	 	170	%
	 
	 	 	1.41	 	 	 	440,061	 	 	 	0.240	%	 	 	160	%
	 
	 	 	 	 	 	 	436,306	 	 	 	0.250	%	 	 	150	%
	 
	 	 	1.40	 	 	 	432,550	 	 	 	0.260	%	 	 	140	%
	 
	 	 	 	 	 	 	428,795	 	 	 	0.270	%	 	 	130	%
	 
	 	 	1.39	 	 	 	425,039	 	 	 	0.280	%	 	 	120	%
	 
	 	 	 	 	 	 	421,284	 	 	 	0.290	%	 	 	110	%
	TARGET
	 	$	1.38	 	 	 	417,528	 	 	 	0.300	%	 	 	100	%
	 
	 	 	1.37	 	 	 	414,546	 	 	 	0.325	%	 	 	90	%
	 
	 	 	1.36	 	 	 	411,565	 	 	 	0.350	%	 	 	80	%
	 
	 	 	1.34	 	 	 	408,583	 	 	 	0.375	%	 	 	70	%
	 
	 	 	1.33	 	 	 	405,602	 	 	 	0.400	%	 	 	60	%
	 
	 	 	1.32	 	 	 	402,620	 	 	 	0.425	%	 	 	50	%
	 
	 	 	1.31	 	 	 	399,638	 	 	 	0.450	%	 	 	40	%
	 
	 	 	1.29	 	 	 	396,657	 	 	 	0.475	%	 	 	30	%
	MINIMUM
	 	$	1.28	 	 	 	393,675	 	 	 	0.500	%	 	 	25	%






Example 1:






 




			
	*	 	The results for a given Performance Factor will be reduced to the next lowest level if the
final financial result does not equal one of the levels listed in the above schedule. For Example:





	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	2009 Total	 	Net Charge	 	 
	 	 	2009 GAAP	 	Revenue	 	Off Ratio (3yr	 	 
	 	 	EPS	 	($000)	 	Average)	 	Total
	Actual Results
	 	$	1.39	 	 	$	412,000	 	 	 	0.395	%	 	 	 	 
	Adjusted Results
	 	$	1.39	 	 	 	411,565	 	 	 	0.400	%	 	 	 	 
	Performance Level (a)
	 	 	120	%	 	 	80	%	 	 	60	%	 	 	 	 
	Factor Weight (b)
	 	 	50	%	 	 	25	%	 	 	25	%	 	 	 	 
	Weighted Performance (a
times b)
	 	 	60	%	 	 	20	%	 	 	15	%	 	 	95	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Restricted Shares
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Granted
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,000	 
	Restricted Shares Earned
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	950	 






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Example 2:






 




			
	*	 	The results for a given Performance Factor will be reduced to the next lowest level if the
final financial result does not equal one of the levels listed in the above schedule. For Example:





	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	2009 Total	 	Net Charge	 	 
	 	 	2009 GAAP	 	Revenue	 	Off Ratio (3yr	 	 
	 	 	EPS	 	($000)	 	Average)	 	Total
	Actual Results
	 	$	1.36	 	 	$	412,000	 	 	 	0.520	%	 	 	 	 
	Adjusted Results
	 	$	1.36	 	 	 	411,565	 	 	 	0.000	%	 	 	 	 
	Performance Level (a)
	 	 	80	%	 	 	80	%	 	 	0	%	 	 	 	 
	Factor Weight (b)
	 	 	50	%	 	 	25	%	 	 	25	%	 	 	 	 
	Weighted Performance (a
times b)
	 	 	40	%	 	 	20	%	 	 	0	%	 	 	60	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Restricted Shares
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Granted
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,000	 
	Restricted Shares Earned
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	600	 






Example 3:






 




			
	*	 	The results for a given Performance Factor will be reduced to the next lowest level if the
final financial result does not equal one of the levels listed in the above schedule. For Example:





	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	2009 Total	 	Net Charge	 	 
	 	 	2009 GAAP	 	Revenue	 	Off Ratio (3yr	 	 
	 	 	EPS	 	($000)	 	Average)	 	Total
	Actual Results
	 	$	1.39	 	 	$	426,000	 	 	 	0.285	%	 	 	 	 
	Adjusted Results
	 	$	1.39	 	 	$	425,039	 	 	 	0.290	%	 	 	 	 
	Performance Level (a)
	 	 	120	%	 	 	120	%	 	 	110	%	 	 	 	 
	Factor Weight (b)
	 	 	50	%	 	 	25	%	 	 	25	%	 	 	 	 
	Weighted Performance (a
times b)
	 	 	60	%	 	 	30	%	 	 	27.5	%	 	 	117.5	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Restricted Shares
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Granted
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,000	 
	Restricted Shares Earned
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,175	 






TIMING FOR AWARD DETERMINATION



Once performance results for Old National are known and approved by the auditors, the Compensation
Committee will review and approve the final performance results for the each performance factor.
The final determination of the results including action related determining the overall final
Performance Level will occur on or before

February 1, 2010.





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