Document:

exv10w1

 

Exhibit 10.1

CENTRUE FINANCIAL CORPORATION.

NON-EMPLOYEE DIRECTORS’ DEFERRED COMPENSATION PLAN

     Centrue Financial Corporation (the “Company”), hereby adopts the Centrue Financial Corporation
Non-Employee Directors’ Deferred Compensation Plan (the “Plan”), for the benefit of its
non-employee Directors and the non-employee Directors of its subsidiaries. The Plan is an unfunded
arrangement for the benefit of non-employee Directors and is intended to be exempt from the
requirements of the Employee Retirement Income Security Act of 1974, as amended. The Plan is
effective as of January 1, 2007.

ARTICLE 1.

DEFINITIONS

	1.01	 	Account. The bookkeeping account established for each Participant as provided in Section
5.01 hereof.
	 
	1.02	 	Administrator. Such person or entity as determined by the Board, and in the absence of such
determination, the Company.
	 
	1.03	 	Bank. Centrue Bank.
	 
	1.04	 	Board. The Board of Directors of the Company.
	 
	1.05	 	Change of Control. Any one of:

	 	(a)	 	The consummation of the acquisition by any person (as such terms is defined
in Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the
“1934 Act”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the 1934 Act) of thirty-five percent (35%) or more of the combined voting power
of the then outstanding voting securities of the Company;
	 
	 	(b)	 	Within any twelve (12) month period, a majority of the members of the Board
is replaced by individuals whose appointment or election is not endorsed by a majority
of the Board prior to the date of the appointment or election; or
	 
	 	(c)	 	Consummation of: (1) a merger or consolidation to which the Company is a
party if the stockholders of the Company immediately before such merger or
consolidation do not, as a result of such merger or consolidation, own, directly or
indirectly, more than fifty percent (50%) of
the combined voting power of the then outstanding voting securities of the entity
resulting from such merger or consolidation in substantially the same proportion as
their ownership of the combined voting power of the Company’s voting securities
outstanding immediately before such merger or consolidation; or (2) a complete
liquidation or dissolution or sale or

 

 

	 	 	 	other disposition of all or substantially all
of the assets of the Company or the Bank.
	 
	 	 	 	Notwithstanding the foregoing, a Change of Control shall not be deemed to occur
solely because thirty-five percent (35) or more of the combined voting power of the
Company’s then outstanding voting securities is acquired by: (1) a trustee or other
fiduciary holding securities under one or more employee benefit plans maintained
for employees of the entity; or (2) any corporation which, immediately prior to
such acquisition, is owned directly or indirectly by the stockholders in the same
proportion as their ownership of stock immediately prior to such acquisition.
	 
	 	 	 	Notwithstanding the foregoing, no event described in this Section 1.05 shall be
considered a Change of Control, unless the event also constitutes a change in the
ownership or effective control pursuant to Code Section 409A(a)(2)(A)(v) and the
regulatory guidance promulgated thereunder.

	1.06	 	Code. The Internal Revenue Code of 1986, as amended.
	 
	1.07	 	Deferrals. The portion of the Fees that a Participant elects to defer in accordance with
Section 3.01 hereof.
	 
	1.08	 	Deferral Date. The date of the Deferrals will be credited to the Director’s Account, which
date shall be the date it would otherwise have been payable to the Director.
	 
	1.09	 	Deferral Election. The separate written agreement, submitted to the Administrator, by which
a Director elects to participate in the Plan and to make Deferrals.
	 
	1.10	 	Director. Any person serving on the Board of the Company or the Bank and who is not an
employee of the Company or the Bank in any capacity.
	 
	1.11	 	Disability. A Participant shall be considered disabled if the participant (i) is unable to
engage in any substantial gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months; or (ii) is, by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than 3 months under an accident and health plan
covering employees of the participant’s employer.
	 
	1.12	 	Effective Date. January 1, 2007.
	 
	1.13	 	Fees. The participant’s earned director fee remuneration for serving as a Director of the
Company or the Bank, including any fees for committee participation.

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	1.14	 	Participant. A Director who is a Participant as provided in ARTICLE 2.
	 
	1.15	 	Plan Year. January 1 to December 31.
	 
	1.16	 	Retirement. Retirement shall occur upon the termination of a Participant’s service,
voluntary or involuntary, as a Director, provided that such termination of service qualifies
as separation from service, as defined in Code Section 409A(a)(2)(A)(i) and the regulatory
guidance promulgated thereunder.

ARTICLE 2.

PARTICIPATION

	2.01	 	Commencement of Participation. Each Director shall become a Participant of the Plan on the
date the Director’s Deferral Election first becomes effective.

	 	(a)	 	A Participant who is no longer a Director or who also becomes an employee of
the Company or the Bank shall not be permitted to submit a Deferral Election and all
Deferrals for such Participant shall cease as of the end of the Plan Year in which
such Participant is determined to no longer be a Director or becomes an employee of
the Company or the Bank.
	 
	 	(b)	 	Amounts credited to the Participant’s Account described in subsection (a)
shall continue to be held, pursuant to the terms of the Plan and shall be distributed
as provided in ARTICLE 6.

	2.02	 	Deferral Continuance Retirement. On or after the first day of any Plan Year, a Participant’s
Deferral Election with respect to that Plan Year shall be irrevocable. A Participant may
change a Deferral Election by delivering to the Administrator a written revocation or
modification of such election with respect to Fees that relate to services yet to be
performed. The revocation or modification of the Deferral Election shall be effective as of
the first day of the Plan Year following the date the Participant delivers the revocation or
modification to the Administrator.

ARTICLE 3.

CONTRIBUTION

	3.01	 	Deferrals.

	 	(a)	 	The Company shall credit to the Participant’s Account an amount equal to the
amount designated in the Participant’s Deferral Election for that Plan Year. Such
amounts shall not be made available to such Participant, except as provided in ARTICLE
6, and shall reduce such Participant’s Fees from the Company or the Bank in accordance
with the provisions of the applicable Deferral Election; provided, however, that all
such amounts

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	 	 	 	shall be subject to the rights of the general creditors of the Company
and the Bank as provided in ARTICLE 8.
	 
	 	(b)	 	Each Director shall deliver a Deferral Election to the Administrator before
any Deferrals may become effective. Such Deferral Election shall be void with respect
to any Deferral unless submitted before the beginning of the calendar year during
which the amount to be deferred will be earned; provided, however, that in the year in
which a Director is first eligible to participate, such Deferral Election shall be
filed within thirty (30) days of the date on which a Director is first eligible to
participate, respectively, with respect to Fees earned during the remainder of the
calendar year.
	 
	 	(c)	 	Subject to the limitation set forth in Section 3.01, the Deferral Election
shall remain effective until modified or revoked and will contain the following:

	 	(i)	 	the Participant’s designation as to the amount of Fees to be
deferred;
	 
	 	(ii)	 	the beneficiary or beneficiaries of the Participant; and
	 
	 	(iii)	 	such other information as the Administrator may require.

	 	(d)	 	The maximum amount that may be deferred each Plan Year is one hundred percent
(100%) of the Participant’s Fees.

	3.02	 	Time of Contributions. Deferrals shall be credited to the Account of the appropriate
Participant as of the Deferral Date.

ARTICLE 4.

VESTNG

	4.01	 	Vesting of Deferrals. A Participant shall have a vested right to his Account attributable
to Deferrals and any earnings on the investment of such Deferrals.

ARTICLE 5.

ACCOUNTS

	5.01	 	Accounts. The Administrator shall establish and maintain a bookkeeping account in the name
of each Participant. The Participant’s Account shall be credited with Units, as defined in
Section 5.02(a). Each Participant’s Account shall be debited
by any distributions made plus any federal, state
and/or local tax withholding as may be required by
applicable law. Distributions under ARTICLE 6 shall be
equal to the Participant’s Account balance as of the
date of the applicable distribution thereunder.
	 
	5.02	 	Investments, Gains and Losses.

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	 	(a)	 	The Participant’s Account will be credited with the hypothetical number of
stock units (“Units”), calculated to the nearest thousandths of a Unit, determined by
dividing the amount of the Deferrals on the Deferral Date by the average of the
closing market price of the Company’s common stock as reported on the NASDAQ for the
20 trading days immediately preceding and including such date. The Participant’s
Account will also be credited with the number of Units determined by multiplying the
number of Unites in the Participant’s Account by any cash dividends declared by the
Company on its common stock and dividing the product by the closing market price of
the Company’s common stock as reported on the NASDAQ on the related dividend record
date, and also by multiplying the number of Units in the Participant’s Account by any
stock dividends declared by the Company on its common stock.
	 
	 	(b)	 	The Administrator shall adjust the amounts credited to each Participant’s
Account to reflect Deferrals, distributions and any other appropriate adjustments.
Such adjustments shall be made as frequently as is administratively feasible.
	 
	 	(c)	 	The Participant’s Account, established pursuant to Section 5.01, will be
valued by the Administrator on a yearly basis.
	 
	 	(d)	 	Any amounts contributed to a “Rabbi Trust” as provided in Section 8.02 shall
be invested by the trustee of the Rabbi Trust in accordance with written directions
from the Company. Such directions shall provide the trustee with the investment
discretion to invest the above-referenced amounts within broad guidelines established
by Administrator and Company as set forth therein.

ARTICLE 6.

DISTRIBUTIONS

	6.01	 	Payment. Payment of a Participant’s Account shall commence as soon as administratively
feasible immediately following the Participant’s Retirement, provided, however, that if a
Participant, prior to commencing participation in the Plan and prior to any Deferrals being
made, executes an irrevocable election to commence payments upon attainment of age sixty-five
(65), payments shall commence as soon as administratively feasible immediately following the
Participant’s attainment of age sixty-five (65). The Participant may elect, in
writing, any one of the following forms of payment, provided that such election is
delivered to the Administrator and is made at the time of the Deferral Election.

	 	(a)	 	single lump-sum payment of the value of the Participant’s Account; or
	 
	 	(b)	 	substantially equal annual installments over a period of either five (5)
years or ten (10) years.

	6.02	 	Commencement of Payment upon Death or Change of Control.

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	 	(a)	 	Upon the death of a Participant, all amounts credited to his Account shall be
paid in a single lump sum, as soon as administratively feasible, to his beneficiary or
beneficiaries, as determined under ARTICLE 7.
	 
	 	(b)	 	Upon a Change of Control, all amounts credited to a Participant’s Account
shall be paid in a single lump sum as of the date of the Change of Control, unless the
Participant elects in Participant’s Deferral Election to receive payment in accordance
with the Participant’s election described in Section 6.1 regardless of the occurrence
of a Change of Control. In the case of such election, a Participant’s Retirement
shall not be considered to have occurred for purposes of this Plan until the
Participant’s Retirement from the Board of the board of the successor in interest to
the Company or the Bank.

	6.03	 	Form of Payment.

	 	(a)	 	A Participant, former Participant, or deceased Participant’s beneficiary or
legal representative may elect at any time to have any or all payouts, or remaining
payouts, of the Participant’s Account paid out in cash or in shares of Company common
stock. At any time before the end of the calendar year prior to termination of Board
service, a Director may revise and supersede any or all of his or her previous
elections with respect to the form of payment (cash or shares of common stock).
	 
	 	(b)	 	If a Participant’s Account is payable in cash and in installments, the amount
of the first cash installment payment shall be a fraction of the Units in the
Participant’s Account on the date of the initial installment payment, the numerator of
which is one and the denominator of which is the total number of installments elected.
Each subsequent installment shall be calculated in the same manner as of each
subsequent annual payment except that the denominator shall be reduced by the number
of installments which have been previously paid. The amount of cash payable for
Deferrals accounted for as Unites based on Company common stock value will be paid, as
described above, based on the number of Units in the Participant’s Account on the
payment date multiplied by the average of the closing market price of the Company’s
common stock as reported on the NASDAQ for the 20 trading days immediately preceding
such date.
	 
	 	(c)	 	If a Participant’s Account is payable in Company common stock and in
installments, the amount of the first installment payment shall be a fraction of the
value of the Units in the Participant’s Account on the date of the initial installment
which is the total number of installments elected. Each of each subsequent annual
payment except that the denominator shall be reduced by the number of installments
which have been previously paid. Except for the final installment payment, only whole
shares shall be payable, and the value of any fractional share payable shall be
retained in the Participant’s Account until the final installment payment, at which

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	 	 	 	time the value of any fractional share payable shall be paid in cash, based on the
fractional share multiplied by the average of the closing market price of the
Company’s common stock as reported on the NASDAQ for the 20 trading days immediately
preceding such date.

ARTICLE 7.

BENEFICIARIES

	7.01	 	Beneficiaries. Each Participant may from time to time designate one or more persons (who may
be any one or more members of such person’s family or other persons, administrators, trusts,
foundations or other entities) as his beneficiary under the Plan. Such designation shall be
made on a form prescribed by the Administrator. Each Participant may at any time and from
time to time, change any previous beneficiary designation, without notice to or comment of any
previously designated beneficiary, by amending his previous designation on a form prescribed
by the Administrator. If the beneficiary does not survive the Participant (or is otherwise
unavailable to receive payment) or if no beneficiary is validly designated, then the amounts
payable under this Plan shall be paid to the Participant’s surviving spouse, if any, and, if
none, to his estate. If more than one person is the beneficiary of a deceased Participant,
each such person shall receive a pro rata share of any death benefit payable unless otherwise
designated on the applicable form. If a beneficiary who is receiving benefits dies, all
benefits that were payable to such beneficiary shall then be payable to the estate of that
beneficiary.
	 
	7.02	 	Lost Beneficiary.

	 	(a)	 	All Participants and beneficiaries shall have to obligation to keep the
Administrator informed of their current address until such time as all benefits due
have been paid.
	 
	 	(b)	 	If a Participant or beneficiary cannot be located by the Administrator
exercising due diligence, then, in its sole discretion, the Administrator may presume
that the Participant or beneficiary is deceased for purposes of the Plan and all
unpaid amounts (net of due diligence expenses) owed to the Participant or beneficiary
shall be paid to the co-beneficiary or secondary beneficiary designated by the
Participant, or in the absence of a co-beneficiary or secondary beneficiary, to the
Participant’s estate.

ARTICLE 8.

FUNDING

	8.01	 	Prohibition Against Funding. Should any investment be acquired in connection with the
liabilities assumed under this Plan, it is expressly understood and agreed that the
Participants and beneficiaries shall not have any right with respect to, or claim against,
such assets nor shall any such purchase be construed to create a trust of any kind or a
fiduciary relationship between the Company and the 

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	 	 	Participants, their beneficiaries or any
other person. Any such assets shall be and remain a part of the general, unpledged,
unrestricted assets of the Company, subject to the claims of its general creditors. It is the
express intention of the parties hereto that this arrangement shall be unfunded for tax
purposes. Each Participant and beneficiary shall be required to look to the provisions of
this Plan and to the Company itself for enforcement of any and all benefits due under this
Plan, and to the extent any such person acquires a right to receive payment under this Plan,
such right shall be no greater than the right of any unsecured general creditor of the
Company. The Company shall be designated the owner and beneficiary of any investment acquired
in connection with its obligation under this Plan.

	8.02	 	Deposits. Notwithstanding paragraph 8.01, or any other provision of this Plan to the
contrary, the Company may deposit any amounts it deems appropriate to pay the benefits under
this Plan to a “Rabbi Trust” as established pursuant to Treasury Department Revenue Procedures
92-64 and 92-65.
	 
	8.03	 	Withholding of Director Deferrals. The Administrator is authorized to make any and all
necessary arrangements with the Company in order to withhold the Participant’s Deferrals under
Section 3.01 hereof from the Participant’s Fees. The Administrator shall determine the amount
and timing of such withholding.

ARTICLE 9.

CLAIMS ADMINISTRATION

	9.01	 	General. In the event that a Participant or his beneficiary does not receive any Plan
benefit that is claimed, such Participant or beneficiary shall be entitled to consideration
and review as provided in this ARTICLE 9.
	 
	9.02	 	Claim Review. Upon receipt of any written claim for benefits, the Administrator shall be
notified and shall give due consideration to the claim presented. If the claim is denied to
any extent by the Administrator, the Administrator shall furnish the claimant with a written
notice setting forth (in a manner calculated to be understood by the claimant):

	 	(a)	 	The specific reason or reasons for denial of the claim;
	 
	 	(b)	 	A specific reference to the Plan provisions on which the denial is based;
	 
	 	(c)	 	A description of any additional material or information necessary for the
claimant to perfect the claim and an explanation of why such material or information
is necessary; and
	 
	 	(d)	 	An explanation of the provisions of this Article.

	9.03	 	Right of Appeal. A claimant who has a claim denied under Section 9.02 may appeal to the
Administrator for reconsideration of that claim. A request for reconsideration under this
Section 9.03 must be filed by written notice within

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	 	 	sixty (60) days after receipt by the
claimant of the notice of denial under Section 9.02.

	9.04	 	Review of Appeal. Upon receipt of an appeal the Administrator shall promptly take action to
give due consideration to the appeal. Such consideration may include a hearing of the parties
involved, if the Administrator feels such a hearing is necessary. In preparing for this
appeal the claimant shall be given the right to review pertinent documents and the right to
submit in writing a statement of issues and comments. After consideration of the merits of
the appeal the Administrator shall issue a written decision, which shall be binding on all
parties subject to Section 9.06 below. The decision shall be written in a manner calculated
to be understood by the claimant and shall specifically state its reasons and pertinent Plan
provisions on which it relies. The Administrator’s decision shall be issued within sixty (60)
days after the appeal is filed, except that if a hearing is held the decision may be issued
within one hundred twenty (12) days after the appeal is filed.
	 
	9.05	 	Designation. The Administrator may designate any other person of its choosing to make any
determination otherwise required under this Article.
	 
	9.06	 	Arbitration. Each and every dispute or controversy arising pursuant to the Plan or a
Deferral Election shall, after exhaustion of the review procedure set forth in Section 9.04,
be settled exclusively by arbitration, conducted before a single arbitrator sitting in
Chicago, Illinois in accordance with the rules of JAMS then in effect. The costs and expenses
of arbitration, including the fees of the arbitrators, shall recover as expenses all
reasonable attorneys’ fees incurred by it in connection with the arbitration proceeding or any
appeals therefrom.

ARTICLE 10.

GENERAL PROVISIONS

	10.01	 	Administrator: The Administrator:

	 	(a)	 	Is expressly empowered to limit the amount of Fees that may be deferred; to
deposit amounts in accordance with Section 8.02 hereof; to interpret the Plan, and to
determine all questions arising in the administration, interpretation and application
of the Plan; to employ actuaries, accountants, counsel, and other persons it deems
necessary in connection with the administration of the Plan; to request any
information from the
Company it deems necessary to determine whether the Company would be considered
insolvent or subject to a proceeding in bankruptcy; and to take all other necessary
and proper actions to fulfill its duties as Administrator.
	 
	 	(b)	 	Shall not be liable for any actions by it hereunder, unless due to its own
negligence, willful misconduct or lack of good faith.
	 
	 	(c)	 	Shall be indemnified and saved harmless by the Company, if the Administrator
is not the Company, from and against all personal liability

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	 	 	 	to which it may be subject
by reason of any act done or omitted to be done in its official capacity as
Administrator in good faith in the administration of the Plan, including all expenses
reasonably incurred in its defense in the event the Company fails to provide such
defense upon the request of the Administrator. The Administrator is relieved of all
responsibility in connection with its duties hereunder to the fullest extent permitted
by law, short of breach of duty to the beneficiaries.

	10.02	 	No Assignment. Benefits or payments under this Plan shall not be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors of the Participant or the Participant’s beneficiary, whether
voluntary or involuntary, and any attempt to so anticipate, alienate, sell, transfer, assign,
pledge, encumber, attach or garnish the same shall not be valid, nor shall any such benefit or
payment be in any way liable for or subject to the debts contracts, liabilities, engagement or
torts of any Participant or beneficiary, or any other person entitled to such benefit or
payment pursuant to the terms of this Plan, except to such extent as may be required by law.
If any Participant or beneficiary or any other person entitled to a benefit or payment
pursuant to the terms of this Plan becomes bankrupt or attempts to alienate, sell, transfer,
assign, pledge, encumber, attach or garnish any benefit or payment under this Plan, in whole
or in part, or if any attempt is made to subject any such benefit or payment, in whole or in
part, to the debts, contracts, liabilities, engagements or torts of the Participant or
beneficiary or any other person entitled to any such benefit or payment pursuant to the terms
of this Plan, then such benefit or payment, in the discretion of the Administrator, shall
cease and terminate with respect to such Participant or beneficiary, or any other such person.
	 
	10.03	 	No Rights to Remain a Director. Participation in this Plan shall not be construed to confer
upon any Participant the legal right to be retained as a Director, or give a Participant or
beneficiary, or any other person, any right to any payment whatsoever, except to the extent of
the benefits provided for hereunder. Each Participant shall remain subject to removal as a
Director to the same extent as if this Plan had never been adopted.
	 
	10.04	 	Incompetence. If the administrator determines that any person to whom a benefit is payable
under this Plan is incompetent by reason of physical or mental disability, the administrator
shall have the power to cause the payments becoming due to such person to be made to another
for his benefit without responsibility of
the Administrator to see to the application of such payments. Any payment made pursuant to
such power shall, as to such payment, operate as a complete discharge of the Company and
the Administrator, if the Administrator is not the Company.
	 
	10.05	 	Identify. If, at any time, any doubt exists as to the identity of any person entitled to
any payment hereunder or the amount or time of such payment, the Administrator shall be
entitled to hold such sum until such identity or amount or time is determined or until an
order of a court of competent jurisdiction is obtained. The Administrator shall also be
entitled to pay such sum into court in

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	 	 	accordance with the appropriate rules of law. Any
expenses incurred by the company or the Administrator incident to such proceeding or
litigation shall be charged against the Account of the affected Participant.

	10.06	 	No Liability. No liability shall attach to or be incurred by any manager of the Company, or
any Administrator under or by reason of the terms, conditions and provisions contained in this
Plan, or for the acts or decisions taken or made thereunder or in connection therewith; and as
a condition precedent to the establishment of this Plan or the receipt of benefits thereunder,
or both, such liability, if any, is expressly waived and released by each Participant and by
any and all persons claiming under or through any Participant or any other person. Such
waiver and release shall be conclusively evidenced by any act or participation in or the
acceptance of benefits or the making of any election under this Plan.
	 
	10.07	 	Expenses. All expenses incurred in the administration of the Plan, whether incurred by the
Company or the Plan, shall be paid by the Company.
	 
	10.08	 	Insolvency. Should the Company be considered insolvent, the Company, through its Board and
chief executive officer, shall give immediate written notice of such to the Administrator of
the Plan, if the Company is not the Administrator. Upon receipt of such notice, the
Administrator shall cease to make any payments to Participants who were directors or their
beneficiaries and shall hold any and all assets attributable to the Company for the benefit of
the general creditors of the Company.
	 
	10.09	 	Amendment and Termination.

	 	(a)	 	Except as otherwise provided in this Section 10.09, the Board shall have the
sole authority to modify, amend or terminate this Plan; provided, however, that any
modification or termination of this Plan shall not reduce, without the consent of a
Participant, a Participant’s right to any amounts already credited to his Account, or
lengthen the time period for a payout from an established Account, on the day before
the effective date of such modification or termination. Following such termination,
payment of such credited amounts may be in a single sum payment if the Company so
designates. Any such decision to pay in a single sum shall apply to all Participants.
	 
	 	(b)	 	Any funds remaining after the termination of the Plan, and satisfaction of
all liabilities to Participants and others, shall be returned to the Company.

	10.10	 	Company Determinations. Any determinations, actions or decisions of the Company (including
but not limited to, Plan amendments and Plan termination) shall be made by the Board or a
properly delegated committee thereof in accordance with its established procedures.

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	10.11	 	Construction. All questions of interpretation, construction or application arising under or
concerning the terms of this Plan shall be decided by the Administrator, in its sole and final
discretion, whose decision shall be final, binding and conclusive upon all persons.
	 
	10.12	 	Governing Law. This Plan shall be governed by, construed and administered in accordance
with the laws of the State of Illinois, other than its laws respecting choice of law.
	 
	10.13	 	Headings. The Article headings contained herein are inserted only as a matter of
convenience and for reference and in no way define, limit, enlarge or describe the scope or
intent of this Plan, nor in any way shall they affect this Plan or the construction of any
provision thereof.
	 
	10.14	 	Terms. Capitalized terms shall have meanings as defined herein. Singular nouns shall be
read as plural, masculine pronouns shall be read as feminine, and vice versa, as appropriate.

12exv10w1

 

EXECUTION COPY

EXHIBIT 10.1

AMENDMENT NO. 1

TO

LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT

          THIS AMENDMENT NO. 1 TO LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT (this
“Amendment”) is made as of December 15, 2006, by and among DTE ENERGY COMPANY (the
“Borrower”), the banks, financial institutions and other institutional lenders listed on
the signature pages hereof (the “Lenders”), and THE BANK OF NOVA SCOTIA, as Administrative
Agent and as the LC Issuer, under that certain Letter of Credit and Reimbursement Agreement, dated
as of December 16, 2005, by and among the Borrower, the banks, financial institutions and other
institutional lenders from time to time parties thereto and the Administrative Agent (as amended,
restated or otherwise modified from time to time, the “Agreement”). Defined terms used
herein and not otherwise defined herein shall have the meaning given to them in the Agreement.

WITNESSETH

          WHEREAS, the Borrower, the Lenders, the LC Issuer and the Administrative Agent are parties to
the Agreement; and

          WHEREAS, the Borrower has requested that the Administrative Agent, the LC Issuer and the
Lenders amend the Agreement on the terms and conditions set forth herein;

          WHEREAS, the Borrower, the Administrative Agent, the LC Issuer and the requisite number of
Lenders have agreed to amend the Agreement on the terms and conditions set forth herein;

          NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto have agreed to the following amendments to the
Agreement:

	1.	 	Amendments to the Agreement. Effective as of December 15, 2006 (the “Effective
Date”) and subject to the satisfaction of the conditions precedent set forth in Section 2
below, the Agreement is hereby amended as follows:

	 	1.1.	 	Section 1.01 of the Agreement is amended to delete the phrase “December 15, 2006” now
appearing in the definition of “Commitment Termination Date”, and to substitute the
following therefor: “December 14, 2007”.
	 
	 	1.2.	 	Schedule I of the Agreement is amended to delete each occurrence of the phrase
“$150,000,000” now appearing therein, and to substitute the following therefor: “$43,380,000”.

 

 

	2.	 	Conditions of Effectiveness. The effectiveness of this Amendment is subject to the
conditions precedent that the Administrative Agent shall have received on or before the Effective
Date:

	 	(a)	 	duly executed originals of this Amendment from each of the Borrower, the requisite number of
Lenders required pursuant to Section 8.01 of the Agreement, the LC Issuer and the Administrative
Agent;
	 
	 	(b)	 	an extension fee (the “Extension Fee”) payable for the account of each Lender executing this
Amendment equal to 0.02% (2 basis points) multiplied by such Lender’s Commitment (as modified after
giving effect to this Amendment); and
	 
	 	(c)	 	such other documents, instruments and agreements as the Administrative Agent shall reasonably request.

	3.	 	Representations and Warranties and Reaffirmations of the Borrower.

	 	3.1.	 	The Borrower hereby represents and warrants that (i) this Amendment and the Agreement as previously
executed and as modified hereby constitute legal, valid and binding obligations of the Borrower and
are enforceable against the Borrower in accordance with their terms (except as enforceability may
be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally), and (ii) no Default or Event of Default has occurred
and is continuing.
	 
	 	3.2.	 	Upon the effectiveness of this Amendment and after giving effect hereto, the Borrower hereby
reaffirms all covenants, representations and warranties made in the Agreement as modified hereby,
and agrees that all such covenants, representations and warranties shall be deemed to have been
remade as of the Effective Date, except that any such covenant, representation, or warranty that
was made as of a specific date shall be considered reaffirmed only as of such date.

	4.	 	Reference to the Effect on the Agreement.

	 	4.1.	 	Upon the effectiveness of Section 1 hereof, on and after the date hereof, each reference in the
Agreement (including any reference therein to “this Agreement,” “hereunder,” “hereof,” “herein” or
words of like import referring thereto) or in any other Loan Document shall mean and be a reference
to the Agreement as modified hereby.
	 
	 	4.2.	 	Except as specifically modified above, the Agreement and all other documents, instruments and
agreements executed and/or delivered in connection therewith shall remain in full force and effect,
and are hereby ratified and confirmed.
	 
	 	4.3.	 	The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any
right, power or remedy of the Administrative Agent or the Lenders, nor constitute a waiver of any
provision of the Agreement or any other

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	 	 	 	documents, instruments and agreements executed and/or
delivered in connection therewith.
	 
	 	4.4	 	Upon satisfaction of the conditions set forth in Section 2 hereof and the execution hereof by the
Borrower and the Required Lenders, this Amendment shall be binding upon all parties to the
Agreement.

	5.	 	GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.
	 
	6.	 	Headings. Section headings in this Amendment are included herein for convenience of
reference only and shall not constitute a part of this Amendment for any other purpose.
	 
	7.	 	Counterparts. This Amendment may be executed by one or more of the parties to this
Amendment on any number of separate counterparts and all of said counterparts taken together shall
be deemed to constitute one and the same instrument.

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          IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above
written.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	DTE ENERGY COMPANY, as the	 	 
	 	 	Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: David R. Murphy	 	 
	 	 	Title: Assistant Treasurer	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature Page to

DTE Energy Company

Amendment No. 1 to Letter of Credit And Reimbursement Agreement

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA, as	 	 
	 	 	Administrative Agent, as a Lender and as the	 	 
	 	 	LC Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature Page to

DTE Energy Company

Amendment No. 1 to Letter of Credit And Reimbursement Agreement

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