Document:

exv10w3

 

Exhibit 10.3

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     This Amended and Restated Employment Agreement (the “Agreement”) is made by and between
WINTRUST FINANCIAL CORPORATION (“Wintrust”), a bank holding company, and Richard B. Murphy, an
individual resident in the State of Illinois (“Executive”) as of January 24, 2008.

WITNESSETH THAT:

     WHEREAS, Wintrust is a bank holding company;

     WHEREAS, Executive has particular expertise and knowledge concerning the business of Wintrust
and its operations and is a valued member of Wintrust’s senior management;

     WHEREAS, by virtue of Executive’s employment with Wintrust, Executive will become acquainted
with certain confidential information regarding the services, customers, methods of doing business,
strategic plans, marketing, and other aspects of the business of Wintrust or its Affiliates; and

     WHEREAS, Wintrust and Executive desire to set forth in this Agreement the terms, conditions
and obligations of the parties with respect to such employment effective as of the date first
written above (the “Effective Date”) and this Agreement is intended by the parties to supersede all
previous agreements and understanding, whether written or oral, concerning such employment.

     NOW THEREFORE, in consideration of the covenants and agreements contained herein, of
Executive’s employment, of the compensation to be paid by Wintrust for Executive’s services, and of
Wintrust’s other undertakings in this Agreement, the parties hereto do hereby agree as follows:

     1. Scope of Employment. Executive will be employed as Executive Vice President and
Chief Credit Officer of Wintrust and shall perform such duties as may be assigned to Executive by
the Chief Executive Officer and/or the Chief Operating Officer and/or the Board of Directors of
Wintrust in such position. Executive agrees that during Executive’s employment Executive will be
subject to and abide by the written policies and practices of Wintrust. Subject to Sections 9(e)
and 9(f) Executive also agrees to assume such new or additional positions and responsibilities as
Executive may from time to time be assigned for or on behalf of Wintrust or any Affiliate of
Wintrust. Notwithstanding the foregoing, during the Term (as defined in Section 8 herein) of this
Agreement, Executive will not be required without Executive’s consent to move Executive’s principal
business location to another location more than a 35 mile radius from Executive’s principal
business location. For purposes of this Agreement, the term “Affiliate” shall include but not be
limited to the entities listed in Exhibit A to this Agreement and any subsidiary of any of such
entities and shall further include any present or future affiliate of any of them as defined by the
rules and regulations of the Federal
Reserve Board. In the event Executive shall perform services for any Affiliate in

 

 

addition to
serving as Executive Vice President and Chief Credit Officer of Wintrust, the provisions of this
Agreement shall also apply to the performance of such services by Executive on behalf of the
Affiliate.

     2. Compensation and Benefits. Executive will be paid such base salary as may from
time to time be agreed upon between Executive and Wintrust. Executive will be entitled to coverage
under such compensation plans, insurance plans and other fringe benefit plans and programs as may
from time to time be established for employees of Wintrust in accordance with the terms and
conditions of such plans and programs. Executive shall also be eligible to participate in the
Wintrust 1997 Stock Incentive Plan or any successor Plan thereto.

     3. Extent of Service. Executive shall devote Executive’s entire time, attention and
energies to the business of Wintrust during the Term of this Agreement; but this shall not be
construed as preventing Executive from: (a) investing Executive’s personal assets in such form or
manner as will not require any services on the part of Executive in the operation or the affairs of
the corporations, partnerships and other entities in which such investments are made and in which
Executive’s participation is solely that of an investor (subject to any and all rules and
regulations of applicable banking regulators or policies of Wintrust governing transactions with
affiliates and ownership interests in customers); (b) engaging (whether or not during normal
business hours) in any other professional, civic or philanthropic activities provided that
Executive’s engagement does not result in a violation of Executive’s covenants under this Section
or Sections 4 and 5 hereof; or (c) accepting appointments to the boards of directors of other
companies provided that the Board of Directors of Wintrust approves of such appointments and
Executive’s performance of Executive’s duties on such boards does not result in a violation of
Executive’s covenants under this Section or Sections 4 or 5 hereof.

     4. Competition. Other than in connection with Executive’s performance of Executive’s
duties hereunder, during the period in which Executive performs services for Wintrust and for a
period of three years after termination of Executive’s employment with Wintrust, regardless of the
reason, Executive shall not directly or indirectly, either alone or in conjunction with any other
person, firm, association, company or corporation:

          (a) serve as a principal, owner, senior manager, or in a position comparable to that held by
Executive at any time during Executive’s employment with Wintrust, for a bank or other financial
institution (or any branch or affiliate thereof) which offers to its customers any of the services
provided by Wintrust or its Affiliates and which operates in the Market Area of Wintrust or any
Affiliate;

          (b) solicit or conduct business which involves any of the services provided by Wintrust or its
Affiliates from or with any person, corporation or other entity which was (i) a customer of
Wintrust or any Affiliate with whom Executive had direct or indirect contact while employed by
Wintrust or about whom Executive obtained
Confidential Information during the fifteen months prior to the termination of Executive’s
employment with Wintrust, or (ii) a potential customer with whom Wintrust

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or any Affiliate has, at
the time of Executive’s termination of employment with Wintrust, an outstanding oral or written
proposal to provide any of the services provided by Wintrust or its Affiliates and with whom
Executive had direct or indirect contact while employed by Wintrust;

          (c) request, advise or directly or indirectly invite any of the existing customers, suppliers
or service providers of Wintrust or any Affiliate to withdraw, curtail or cancel its business with
Wintrust or any Affiliate (other than through mass mailings or general advertisements not
specifically directed at customers of Wintrust or any Affiliate);

          (d) hire, solicit, induce or attempt to solicit or induce any employee, consultant, or agent
of Wintrust or any Affiliate (i) to terminate his employment or association with Wintrust or any
Affiliate or (ii) to become employed by or to serve in any capacity by a bank or other financial
institution which operates or is planned to operate in the Market Area of Wintrust or of any
Affiliate; or

          (e) in any way participate in planning or opening a bank or other financial institution which
operates or is intended to operate in the Market Area of Wintrust or of any Affiliate.

     For the purposes of this Agreement, the Market Area of Wintrust or of an Affiliate shall be
the area within a ten (10) mile radius of the principal office and branches of Wintrust or of any
Affiliate.

     Notwithstanding the foregoing, Executive shall not be prevented from: (i) investing or owning
shares of stock of any corporation engaged in any business provided that such shares are regularly
traded on a national securities exchange or in any over-the-counter market; (ii) retaining any
shares of stock in any corporation which Executive owned prior to the date of Executive’s
employment with Wintrust (subject to any and all rules and regulations of applicable banking
regulators or policies of Wintrust governing transactions with affiliates and ownership interests
in customers); or (iii) investing as a limited partner (without decision-making authority) in any
private equity fund, provided that Executive’s involvement in such investment is solely that of a
passive investor (subject to any and all rules and regulations of applicable banking regulators or
policies of the Employer governing transactions with affiliates and ownership interests in
customers).

     5. Confidential Information. Executive acknowledges that, during Executive’s
employment with Wintrust, Executive has and will obtain access to Confidential Information of and
for Wintrust or its Affiliates. For purposes of this Agreement, “Confidential Information” shall
mean information not generally known or available without restriction to the trade or industry,
including, without limitation, the following categories of information and documentation: (a)
documentation and
information relating to lending customers of Wintrust or any Affiliate, including, but not limited
to, lists of lending clients with their addresses and account numbers, credit analysis reports and
other credit files, outstanding loan amounts, repayment dates and

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instructions, information
regarding the use of the loan proceeds, and loan maturity and renewal dates; (b) documentation and
information relating to depositors of Wintrust or any Affiliate, including, but not limited to,
lists of depositors with their addresses and account numbers, amounts held on deposit, types of
depository products used and the number of accounts per customer; (c) documentation and information
relating to trust customers of Wintrust or any Affiliate, including, but not limited to, lists of
trust customers with their addresses and account numbers, trust investment management contracts,
identity of investment managers, trust corpus amounts, and grantor and beneficiary information; (d)
documentation and information relating to investment management clients of Wintrust or any
Affiliate, including, but not limited to, lists of investors with their addresses, account numbers
and beneficiary information, investment management contracts, amount of assets held for management,
and the nature of the investment products used; (e) the identity of actual or potential customers
of Wintrust or any Affiliate, including lists of the same; (f) the identity of suppliers and
service providers of Wintrust or any Affiliate, including lists of the same and the material terms
of any supply or service contracts; (g) marketing materials and information regarding the products
and services offered by Wintrust or any Affiliate and the nature and scope of use of such marketing
materials and product information; (h) policy and procedure manuals and other materials used by
Wintrust or any Affiliate in the training and development of its employees; (i) identity and
contents of all computer systems, programs and software utilized by Wintrust or any Affiliate to
conduct its operations and manuals or other instructions for their use; (j) minutes or other
summaries of Board of Directors or other department or committee meetings held by Wintrust or any
Affiliate; (k) the business and strategic growth plans of Wintrust or any Affiliate; and (l)
confidential communication materials provided for shareholders of Wintrust or of any Affiliate.
Absent prior authorization by Wintrust or as required in Executive’s duties for Wintrust, Executive
will not at any time, directly or indirectly, use, permit the use of, disclose or permit the
disclosure to any third party of any such Confidential Information to which Executive will be
provided access. These obligations apply both during Executive’s employment with Wintrust and
shall continue beyond the termination of Executive’s employment and this Agreement.

     6. Inventions. All discoveries, designs, improvements, ideas, and inventions, whether
patentable or not, relating to (or suggested by or resulting from) products, services, or other
technology of Wintrust or any Affiliate or relating to (or suggested by or resulting from) methods
or processes used or usable in connection with the business of Wintrust or any Affiliate that may
be conceived, developed, or made by Executive during employment with Wintrust (hereinafter
“Inventions”), either solely or jointly with others, shall automatically become the sole property
of Wintrust or an Affiliate. Executive shall immediately disclose to Wintrust all such Inventions
and shall, without additional compensation, execute all assignments and other documents deemed
necessary to perfect the property rights of Wintrust or any Affiliate therein. These obligations
shall continue beyond the termination of Executive’s employment with respect to Inventions
conceived,
developed, or made by Executive during employment with Wintrust. The provisions of this Section 6
shall not apply to any Invention for which no equipment, supplies, facility, or trade secret
information of Wintrust or any Affiliate is used by Executive and which is developed entirely on
Executive’s own time, unless (a) such Invention relates (i) to the

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business of Wintrust or an
Affiliate or (ii) to the actual or demonstrably anticipated research or development of Wintrust or
an Affiliate, or (b) such Invention results from work performed by Executive for Wintrust.

     7. Remedies. Executive acknowledges that the compliance with the terms of this
Agreement is necessary to protect the Confidential Information and goodwill of Wintrust and its
Affiliates and that any breach by Executive of this Agreement will cause continuing and irreparable
injury to Wintrust and its Affiliates for which money damages would not be an adequate remedy.
Executive acknowledges that Affiliates are and are intended to be third party beneficiaries of this
Agreement. Executive acknowledges that Wintrust and any Affiliate shall, in addition to any other
rights or remedies they may have, be entitled to injunctive relief for any breach by Executive of
any part of this Agreement. This Agreement shall not in any way limit the remedies in law or
equity otherwise available to Wintrust and its Affiliates.

     8. Term of Agreement. Unless terminated sooner as provided in Section 9, the initial
term of Executive’s employment pursuant to this Agreement (“Initial Term”) shall be three years,
commencing on the date of this Agreement. After such Initial Term, this Agreement shall be
extended automatically for successive three-year terms, unless either Executive or Wintrust gives
contrary written notice not less than 60 days in advance of the expiration of the Initial Term or
any succeeding term of this Agreement or unless terminated sooner as provided in Section 9.
Notwithstanding the foregoing, if at any time during the Initial Term or any successive three-year
term there is a Change in Control of Wintrust (as defined in Section 9(f)), then upon the first
occurrence of such a Change in Control, the Initial Term or the successive three-year term of this
Agreement (whichever is in effect as of the date of the Change in Control) shall automatically
extend for the greater of (a) the amount of time remaining on Executive’s Initial Term of
employment if such first occurrence of a Change in Control occurs during the Initial Term or (b)
two years from the date of such first occurrence of a Change in Control. In the event that
Executive’s Initial Term or successive three-year term is extended due to such a Change in Control,
such extension shall further be extended automatically for successive three-year terms, unless
either Executive or Wintrust gives contrary written notice not less than 60 days in advance of the
expiration of the extension of this Agreement or unless terminated sooner as provided in Section 9.
The Initial Term, together with any extension thereof in accordance with this Section 8, shall be
referred to herein as the “Term.”

     9. Termination of Employment.

          (a) General Provisions. Executive’s employment may be terminated by Wintrust at any
time for any reason, with or without cause, and, except as otherwise provided in this Section 9,
any and all of Wintrust’s obligations under this Agreement
shall terminate, other than Wintrust’s obligation to pay Executive, within 30 days of Executive’s
termination of employment, the full amount of any earned but unpaid base salary and accrued but
unpaid vacation pay earned by Executive pursuant to this Agreement through and including the date
of termination and to observe the terms and conditions of any plan or benefit arrangement which, by
its terms, survives such

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termination of Executive’s employment. The payments to be made under this
Section 9(a) shall be made to Executive, or in the event of Executive’s death, to such beneficiary
as Executive may designate in writing to Wintrust for that purpose, or if Executive has not so
designated, then to the spouse of Executive, or if none is surviving, then to the estate of
Executive. Notwithstanding the foregoing, termination of employment shall not affect the
obligations of Executive that, pursuant to the express provisions of this Agreement, continue in
effect.

          (b) Termination Due to Death.

               (i) Payment. If Executive should die during the Term of this Agreement, which event
shall result in the termination of Executive’s employment, Wintrust shall pay Executive an amount
equal to three times (3x) the sum of (A) Executive’s base annual salary in effect at the time of
Executive’s death plus (B) an amount equal to any Cash Bonus amounts paid to Executive during the
twelve-month period prior to Executive’s death and any Stock Bonus amounts awarded or granted to
Executive during the twelve-month period prior to Executive’s death, in a lump sum within 30 days
following the date of Executive’s death. For the purposes of this Agreement, “Cash Bonus” shall
mean any cash bonus amounts that are included in Executive’s annual bonus plan, as approved in
writing by Wintrust’s Board of Directors or the Compensation Committee or any successor committee
of Wintrust’s Board of Directors. For the purposes of this Agreement, “Stock Bonus” shall mean any
restricted shares that are included in Executive’s annual bonus plan, as approved in writing by
Wintrust’s Board of Directors or the Compensation Committee or any successor committee of
Wintrust’s Board of Directors. Any bonuses (whether in cash or in the form of restricted shares)
that are not included in such annual bonus plan shall not be considered to be Cash Bonus amounts or
Stock Bonus awards for purposes of this Agreement. The value of the Stock Bonus amounts shall be
determined as of the date they are awarded or granted to Executive.

               (ii) Reduction of Payment Due To Life Insurance Benefits. The amount to be paid to
Executive pursuant to this Section 9(b) shall be reduced by the amount of any life insurance
benefit payments paid or payable to Executive from policies of insurance maintained and/or paid for
by Wintrust; provided that in the event the life insurance benefits exceed the amount to be paid to
Executive pursuant to this Section 9(b), Executive shall remain entitled to receive the excess life
insurance payments. The Executive will cooperate with Wintrust in order to enable Wintrust to pay
for a policy or policies of life insurance on the life of the Executive. To the extent that the
Executive is not insurable or a life insurance policy is not reasonably obtainable, then the
payments due under this Section 9(b) shall be reduced by 50%.

               (iii) Beneficiary. The payments to be made under this Section 9(b) shall be made to
such beneficiary as Executive may designate in writing to Wintrust for this purpose, or if
Executive has not so designated, then to the spouse of Executive, or if none is surviving, then to
the estate of Executive.

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          (c) Termination Due to Permanent Disability.

               (i) Payment. If Executive should suffer a permanent disability during the Term of
this Agreement, Wintrust shall have the right to terminate Executive’s employment. In such event,
Wintrust shall pay Executive an amount equal to three times (3x) the sum of (A) Executive’s base
annual salary in effect at the time of Executive’s permanent disability plus (B) an amount equal to
any Cash Bonus amounts paid to Executive during the twelve-month period prior to Executive’s
permanent disability and any Stock Bonus amounts awarded or granted to Executive during the
twelve-month period prior to Executive’s permanent disability. Such amount shall be paid to
Executive ratably over a 36-month period beginning on the first payroll period following such
termination and on each payroll period thereafter during the 36-month period. For the purposes of
this Agreement, “permanent disability” means any mental or physical illness, disability or
incapacity that renders Executive unable to perform Executive’s duties hereunder where (x) such
permanent disability has been determined to exist by a physician selected by Wintrust or (y)
Wintrust has reasonably determined, based on such physician’s advice, that such disability will
continue for 180 days or more within any 365-day period, of which at least 90 days are consecutive.
Executive shall cooperate in all respects with Wintrust if a question arises as to whether he has
become disabled (including, without limitation, submitting to an examination by a physician or
other health care specialist selected by Wintrust and authorizing such physician or other health
care specialist to discuss Executive’s condition with Wintrust).

               (ii) Reduction of Payment Due To Long Term Disability Insurance Benefits. The amount
to be paid to Executive pursuant to this Section 9(c) shall be reduced by the amount of any
long-term disability benefit payments paid or payable to Executive during such payment period from
policies of insurance maintained and/or paid for by Wintrust; provided that in the event the
long-term disability benefits exceed the amount to be paid to Executive pursuant to this Section
9(c), Executive shall remain entitled to receive the excess long-term disability insurance
payments.

               (iii) Reduction of Payment Due To Earned Income. The amount to be paid to Executive
under this Section 9(c) shall be reduced by any income earned by Executive, whether paid to
Executive immediately or deferred until a later date, during the applicable Severance Pay period
from employment of any sort, including without limitation full, part time or temporary employment
or work as an independent contractor or as a consultant; provided that, if Executive was a member
of the board of directors of another company at the time of Executive’s termination, the amount of
Severance Pay under this Section 9(c) shall not be reduced by any income earned by Executive during
the applicable Severance Pay period due to Executive’s continued service in such capacity.
Notwithstanding the foregoing, Executive’s Severance Pay to be
paid under this Section 9(c) shall be not less than an amount to provide Executive with a
gross monthly payment of $20,000.00 during the 36-month Severance Pay period. Executive agrees to
promptly notify Wintrust if Executive obtains employment of any sort during the applicable
Severance Pay period and to provide Wintrust with a copy of any W-2 or 1099 forms or other payroll
or income records and a summary of contributions received under any deferred compensation
arrangement.

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               (iv) Continued Participation In Benefit Plans. In the event of termination due to a
permanent disability, from the termination date through the earlier of (A) the date on which
Executive becomes eligible for coverage under another group health insurance plan with no
pre-existing condition limitation or exclusion or (B) the date on which Executive becomes entitled
to benefits under Medicare, Executive (and any qualified dependents) shall be entitled to group
health insurance coverage. Such coverage shall be provided, at the option of Wintrust, either: (x)
under the Wintrust group health insurance plan for employees (as such plan is then in effect and as
it may be amended at any time and from time to time during the period of coverage) in which
Executive was participating immediately prior to termination, at Wintrust’s expense, subject to any
normal employee contributions, if any; or (y) under an individual health insurance policy having
coverage similar to that provided by the Wintrust group health plan for employees (as such plan is
then in effect and as it may be amended at any time and from time to time during the period of
coverage), at Wintrust’s expense. Executive shall promptly notify Wintrust if Executive becomes
eligible for coverage under another group health plan with no pre-existing condition limitation or
exclusion or Executive becomes entitled to benefits under Medicare.

          (d) Termination Without Cause.

               (i) Payment. In the event Executive’s employment is terminated without Cause (as such
term is defined in Section 9(h) hereof) by Wintrust during the Term of this Agreement, other than
upon the expiration of the Term of this Agreement, Wintrust shall pay Severance Pay to Executive in
the amount equal to three times (3x) the sum of (A) Executive’s base annual salary in effect at the
time of Executive’s termination plus (B) an amount equal to any Cash Bonus amounts paid to
Executive during the twelve-month period prior to termination and any Stock Bonus amounts awarded
or granted to Executive during the twelve-month period prior to termination. Severance Pay under
this Section 9(d) shall be paid to the Executive ratably over a 36-month period beginning on the
first payroll period following such termination and on each payroll period thereafter during such
Severance Pay period.

               (ii) Reduction of Payment Due To Earned Income. The amount of Severance Pay under
this Section 9(d) shall be reduced by any income earned by Executive, whether paid to Executive
immediately or deferred until a later date, during the applicable Severance Pay period from
employment of any sort, including without limitation full, part time or temporary employment or
work as an independent contractor or as a consultant; provided that, if Executive was a member of
the board of directors of another company at the time of Executive’s termination, the amount of
Severance Pay
under this Section 9(d) shall not be reduced by any income earned by Executive during the
applicable Severance Pay period due to Executive’s continued service in such capacity.
Notwithstanding the foregoing, Executive’s Severance Pay to be paid under this Section 9(d) shall
be not less than an amount to provide Executive with a gross monthly payment of $20,000.00 during
the 36-month Severance Pay period. Executive agrees to promptly notify Wintrust if Executive
obtains employment of any sort during the applicable Severance Pay period and to provide Wintrust
with a copy of

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any W-2 or 1099 forms or other payroll or income records and a summary of
contributions received under any deferred compensation arrangement.

               (iii) Company-Paid Health Insurance. In the event of Executive’s termination pursuant
to this Section 9(d), from the termination date through the earlier of (A) the date on which
Executive becomes eligible for coverage under another group health insurance plan with no
pre-existing condition limitation or exclusion or (B) the date on which Executive becomes entitled
to benefits under Medicare, Executive (and any qualified dependents) shall be entitled to group
health insurance coverage. Such coverage shall be provided, at the option of Wintrust, either: (x)
under the Wintrust group health insurance plan for employees (as such plan is then in effect and as
it may be amended at any time and from time to time during the period of coverage) in which
Executive was participating immediately prior to termination, at Wintrust’s expense, subject to any
normal employee contributions, if any; or (y) under an individual health insurance policy having
coverage similar to that provided by the Wintrust group health plan for employees (as such plan is
then in effect and as it may be amended at any time and from time to time during the period of
coverage), at Wintrust’s expense. Executive shall promptly notify Wintrust if Executive becomes
eligible for coverage under another group health plan with no pre-existing condition limitation or
exclusion or Executive becomes entitled to benefits under Medicare.

          (e) Constructive Termination.

               (i) Payment. If Executive suffers a Constructive Termination during the Term of this
Agreement, other than upon the expiration of the Term of this Agreement, Wintrust shall pay
Severance Pay to Executive in the amounts and at the times described in Section 9(d) hereof. For
the purposes of this Agreement, “Constructive Termination” means (A) the assignment to Executive of
any duties substantively inconsistent with Executive’s position (including status, offices, titles
and reporting requirements), authority, duties or responsibilities as contemplated by Section 1, or
any other diminution in such position, authority, duties or responsibilities (including, without
limitation, any diminution occurring solely as a result of Wintrust ceasing to be a publicly traded
entity or becoming a wholly owned subsidiary of another entity) or a material reduction by Wintrust
in the duties and responsibilities of Executive or (B) a reduction by Wintrust of Executive’s
“Adjusted Total Compensation” (as hereinafter defined), to (1) less than seventy-five percent (75%)
of the Adjusted Total Compensation of Executive for the twelve-month period ending as of the last
day of the month immediately preceding the month in which the Constructive Termination occurs; or
(2) less than seventy-five percent (75%) of the Executive’s Adjusted Total Compensation for
the twelve-month period ending as of the last day of the month preceding the Effective Date,
whichever is greater; provided, however, that the occurrence of any such condition
shall not constitute Constructive Termination unless Executive provides notice to Wintrust of the
existence of such condition not later than 90 days after the initial existence of such condition,
and Wintrust shall have failed to remedy such condition within 30 days after receipt of such
notice. A Constructive Termination does not include termination for Cause as defined in Section
9(h), termination without

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Cause as defined in Section 9(d), or termination due to a permanent
disability as defined in Section 9(c).

               (ii) Reduction of Payment Due To Earned Income. The amount of Severance Pay under
this Section 9(e) shall be reduced by any income earned by Executive, whether paid to Executive
immediately or deferred until a later date, during such Severance Pay period from employment of any
sort, including without limitation full, part time or temporary employment or work as an
independent contractor or as a consultant; provided that, if Executive was a member of the board of
directors of another company at the time of Executive’s Constructive Termination, the amount of
Severance Pay under this Section 9(e) shall not be reduced by any income earned by Executive during
the applicable Severance Pay period due to Executive’s continued service in such capacity.
Notwithstanding the foregoing, Executive’s Severance Pay to be paid under this Section 9(e) shall
be not less than an amount to provide Executive with a gross monthly payment of $ 20,000.00 during
the 36-month Severance Pay period. Executive agrees to promptly notify Wintrust if he or she
obtains employment of any sort during the applicable Severance Pay period and to provide Wintrust
with a copy of any W-2 or 1099 forms or other payroll or income records and a summary of
contributions received under any deferred compensation arrangement.

               (iii) Company-Paid Health Insurance. In the event of Executive’s Constructive
Termination pursuant to this Section 9(e), from the termination date through the earlier of (A) the
date on which Executive becomes eligible for coverage under another group health insurance plan
with no pre-existing condition limitation or exclusion, or (B) the date on which Executive becomes
entitled to benefits under Medicare, Executive (and any qualified dependents) shall be entitled to
group health insurance coverage. Such coverage shall be provided, at the option of Wintrust,
either: (x) under the Wintrust group health insurance plan for employees (as such plan is then in
effect and as it may be amended at any time and from time to time during the period of coverage) in
which Executive was participating immediately prior to termination, at Wintrust’s expense, subject
to any normal employee contributions, if any; or (y) under an individual health insurance policy
having coverage similar to that provided by the Wintrust group health plan for employees (as such
plan is then in effect and as it may be amended at any time and from time to time during the period
of coverage), at Wintrust’s expense. Executive shall promptly notify Wintrust if Executive becomes
eligible for coverage under another group health plan with no pre-existing condition limitation or
exclusion or Executive becomes entitled to benefits under Medicare.

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               (iv) Definitions.

                    (A) For the purposes of this Agreement, “Adjusted Total Compensation” means the aggregate base
salary earned by the Executive plus the dollar value of all perquisites (i.e. Wintrust provided
car, club dues and supplemental life insurance) as estimated by Wintrust in respect of the
Executive for the relevant twelve month period. Adjusted Total Compensation shall exclude any Cash
Bonus, Stock Bonus, or other bonus payments paid or earned by the Executive. For the purpose of
illustration, attached as Exhibit B to this Agreement is the base salary paid and the dollar value
of the Executive’s perquisites for the last fiscal year of Wintrust.

                    (B) For the purposes of this Section 9(e), the Executive will not be deemed to have incurred a
reduction by Wintrust of Executive’s Adjusted Total Compensation if there is a general reduction in
base salaries and/or perquisites applicable to the President, Chief Executive Officer and all
Executive and Senior Vice Presidents of Wintrust.

          (f) Termination Upon Change In Control.

               (i) Payment. In the event that within eighteen months after a Change in Control of
Wintrust (as defined below) (A) Executive’s employment is terminated without Cause (as such term is
defined in Section 9(h) hereof) prior to the expiration of the Term of this Agreement, or (B)
Executive suffers a Constructive Termination prior to the expiration of the Term of this Agreement,
Wintrust (or the successor thereto) shall pay Severance Pay to Executive in the amount that is
equivalent to the amount described in Section 9(d) hereof in a lump sum within thirty (30) days
following the date of Executive’s termination or Constructive Termination; provided,
however, that if such Change in Control is not a “change in control event,” within the
meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), then such
Severance Pay shall be paid ratably over a 36-month period beginning on the first payroll period
following such termination and on each payroll period thereafter during such Severance Pay period.

               (ii) Change In Control. For the purposes of this Agreement, a “Change in Control”
shall have the same meaning as provided in Section 12(b) of the Wintrust 1997 Stock Incentive Plan.

               (iii) Gross-Up Payment. If it is determined that any amount, right or benefit paid or
payable (or otherwise provided or to be provided) to the Executive by Wintrust or any of its
affiliates under this Agreement or any other plan, program or arrangement under which Executive
participates or is a party, other than amounts payable under this Section 9(f)(iii) (collectively,
the “Payments”), would constitute an “excess parachute payment” within the meaning of Section 280G
of the Internal Revenue Code, subject to the excise tax imposed by Section 4999 of the Code, or any
interest or penalties with respect to such excise tax (such excise tax, together with any such
interest and penalties, are collectively referred to as the “Excise Tax”), then Executive shall be
entitled to receive an additional cash payment (a “Gross-Up

- 11 -

 

Payment”) within 30 days of such
determination equal to an amount such that after payment by Executive of all taxes (including any
interest or penalties imposed with respect to such taxes), including any Excise Tax, imposed upon
the Gross-Up Payment, Executive would retain an amount of the Gross-Up Payment equal to the Excise
Tax imposed upon the total Payments. All determinations required to be made under this Section
9(f)(iii), including whether and when a Gross-Up Payment is required, the amount of such Gross-Up
Payment and the assumptions to be utilized in arriving at such determination, shall be made by
Wintrust’s independent auditor. The auditor shall promptly provide detailed supporting
calculations to both Wintrust and Executive following any determination that a Gross-Up Payment is
necessary. All fees and expenses of the auditor shall be paid by Wintrust. If no determination by
Wintrust’s auditors is made prior to the time a tax return reflecting the total Payments is
required to be filed by Executive, Executive will be entitled to receive a Gross-Up Payment
calculated on the basis of the total Payments reported by Executive in such tax return, within 30
days of the filing of such tax return. All determinations made by such auditor shall be binding
upon Wintrust and Executive. In all events, if any tax authority determines that a greater Excise
Tax should be imposed upon the total Payments than is determined by Wintrust’s independent auditors
or reflected in Executive’s tax return pursuant to this Section, Executive shall be entitled to
receive the full Gross-Up Payment calculated on the basis of the amount of Excise Tax determined to
be payable by such tax authority from Wintrust within 30 days of such determination. In the event
that any tax authority determines that a lesser Excise Tax should be imposed on the total Payments
than is determined by Wintrust’s independent auditors or reflected in Executive’s tax return
pursuant to this Section, and Wintrust paid a Gross-Up Payment to the Executive in excess of the
amount of the Gross-Up Payment to which he is actually entitled hereunder, then such excess shall
be reimbursed by the Executive to Wintrust within 30 days of such determination.

               (iv) Company-Paid Health Insurance. In the event Executive becomes entitled to
payments under this Section 9(f), from the termination date through the earlier of (A) the date on
which Executive becomes eligible for coverage under another group health insurance plan with no
pre-existing condition limitation or exclusion, or (B) the date on which Executive becomes entitled
to benefits under Medicare, Executive (and any qualified dependents) shall be entitled to group
health insurance coverage. Such coverage shall be provided, at the option of Wintrust, either: (x)
under the Wintrust group health insurance plan for employees (as such plan is then in effect and as
it may be amended at any time and from time to time during the period of coverage) in which
Executive was participating immediately prior to termination, at Wintrust’s expense, subject to any
normal employee contributions, if any; or (y) under an individual health insurance policy having
coverage similar to that provided by the Wintrust group health plan for employees (as such plan is
then in effect and as it may be amended at any time and from time to time during the period of
coverage), at Wintrust’s expense. Executive shall promptly notify Wintrust if, prior to the
expiration of the maximum period of COBRA coverage, Executive becomes eligible for coverage under
another group health plan with no pre-existing condition limitation or exclusion or Executive
becomes entitled to benefits under Medicare.

- 12 -

 

               (v) Definitions. For the purposes of this Section 9(f), the term “Constructive
Termination” shall have the same meaning as such term is defined in Section 9(e) with the following
modifications:

                    (A) A Constructive Termination shall be deemed to have occurred if after a Change in Control,
the Executive’s Adjusted Total Compensation is reduced to less than (1) 100% of the Adjusted Total
Compensation of Executive for the twelve-month period ending as of the last day of the month
immediately preceding the month in which the Constructive Termination occurs or (2) 100% percent of
the Executive’s Adjusted Total Compensation for the twelve-month period ending as of the last day
of the month preceding the Effective Date, whichever is greater.

                    (B) A Constructive Termination shall also be deemed to have occurred if after a Change in
Control, Wintrust (or the successor thereto) delivers written notice to Executive that it will
continue to employ Executive but will reject this Agreement (other than due to the expiration of
the Term of this Agreement).

                    (C) Subsection 9(e)(iv)(B) shall not be applicable to a Constructive Termination following a
Change in Control.

          (g) Voluntary Termination. Executive may voluntarily terminate employment during the
Term of this Agreement by a delivery to Wintrust of a written notice at least 60 days in advance of
the termination date. If Executive voluntarily terminates employment prior to the expiration of
the Term of this Agreement, any and all of Wintrust’s obligations under this Agreement shall
terminate immediately except for Wintrust’s obligations contained in Section 9(a) hereof.
Notwithstanding the foregoing, termination of employment shall not affect the obligations of
Executive that, pursuant to the express provisions of this Agreement, continue in effect.

          (h) Termination For Cause. If Executive is terminated for Cause as determined by the
written resolution of Wintrust’s Board of Directors or the Compensation Committee or any successor
committee of the Wintrust Board of Directors, all obligations of Wintrust shall terminate
immediately except for Wintrust’s obligations described in Section 9(a) hereof. Notwithstanding
the foregoing, termination of employment shall not affect the obligations of Executive that,
pursuant to the express provisions of this Agreement, continue in effect. For purposes of this
Agreement, termination for “Cause” means:

               (i) Executive’s failure or refusal, after written notice thereof and after reasonable
opportunity to cure, to perform specific directives approved by a majority of the Wintrust Board of
Directors which are consistent with the scope and nature of Executive’s duties and responsibilities
as provided in Section 1 of this Agreement;

               (ii) Habitual drunkenness or illegal use of drugs which interferes with the performance of
Executive’s duties and obligations under this Agreement;

- 13 -

 

               (iii) Executive’s conviction of a felony;

               (iv) Any defalcation or acts of gross or willful misconduct of Executive resulting in or
potentially resulting in economic loss to Wintrust or substantial damage to Wintrust’s reputation;

               (v) Any breach of Executive’s covenants contained in Sections 4 through 6 hereof;

               (vi) A written order requiring the termination of Executive from Executive’s position with
Wintrust or any Affiliate for which Executive is also providing services by any regulatory agency
or body; or

               (vii) Executive’s engagement, during the performance of Executive’s duties hereunder, in acts
or omissions constituting fraud, intentional breach of fiduciary obligation, intentional wrongdoing
or malfeasance, or intentional and material violation of applicable banking laws, rules, or
regulations.

          (i) Executive’s right to receive Severance Pay per Sections 9(c) through 9(f) hereof is
contingent upon (i) Executive having executed and delivered to Wintrust a release in such form as
provided by Wintrust and (ii) Executive not violating any of Executive’s on-going obligations under
this Agreement.

          (j) The payment of Severance Pay to Executive pursuant to Sections 9(c) through 9(f) hereof
shall be liquidated damages for and in full satisfaction of any and all claims Executive may have
relating to or arising out of Executive’s employment and termination of employment by Wintrust, any
and all claims Executive may have relating to or arising out of this Agreement and the termination
thereof and any and all claims Executive may have arising under any statute, ordinance or
regulation or under common law. Executive expressly acknowledges and agrees that, except for
whatever claim Executive may have to Severance Pay, Executive shall not have any claim for damages
or other relief of any sort relating to or arising out of Executive’s employment or termination of
employment by Wintrust or relating to or arising out of this Agreement and the termination thereof.

          (k) Upon termination of employment with Wintrust for any reason, Executive shall promptly
deliver to Wintrust all writings, records, data, memoranda, contracts, orders, sales literature,
price lists, client lists, data processing materials, and other documents, whether or not obtained
from Wintrust or any Affiliate, which pertain to or were used by Executive in connection with
Executive’s employment by Wintrust or which pertain to any Affiliate, including, but not limited
to, Confidential Information, as well as any automobiles, computers or other equipment which were purchased or leased by Wintrust
for Executive.

     10. Resolution of Disputes. Except as otherwise provided herein, any disputes arising
under or in connection with this Agreement or in any way arising out of, relating

- 14 -

 

to or associated
with the Executive’s employment with Wintrust or the termination of such employment (“Claims”),
that Executive may have against Wintrust or against its Affiliates, officers, directors, employees
or agents in their capacity as such or otherwise, or that Wintrust may have against Executive,
shall be resolved by binding arbitration, to be held in Chicago, Illinois, in accordance with the
rules and procedures of the National Rules for the Resolution of Employment Disputes of the
American Arbitration Association (the “AAA”) and the parties hereby agree to expedite such
arbitration proceedings to the extent permitted by the AAA. Judgment upon the award rendered by
the arbitrator(s) may be entered in any court having jurisdiction thereof. The Claims covered by
this Agreement include, but are not limited to: claims for wages or other compensation due; claims
for breach of any contract or covenant, express or implied; tort claims; claims for discrimination,
including but not limited to discrimination based on race, sex, sexual orientation, religion,
national origin, age, marital status, handicap, disability or medical condition or harassment on
any of the foregoing bases; claims for benefits, except as excluded in the following paragraph; and
claims for violation of any federal, state or other governmental constitution, statute, ordinance,
regulation, or public policy. The Claims covered by this Agreement do not include claims for
workers’ compensation benefits or compensation; claims for unemployment compensation benefits;
claims based upon an employee pension or benefit plan, the terms of which contain an arbitration or
other non-judicial resolution procedure, in which case the provisions of such plan shall apply; and
claims made by either Wintrust or the Executive for injunctive and/or other equitable relief
regarding the covenants set forth in Sections 3, 4, 5 and 6 of this Agreement. Each party shall
initially bear their own costs of the arbitration or litigation, except that, if Wintrust is found
to have violated any material terms of this Agreement, Wintrust shall reimburse Executive for the
entire amount of reasonable attorneys’ fees incurred by Executive as a result of the dispute
hereunder in addition to the payment of any damages awarded to Executive.

     11. General Provisions.

          (a) All provisions of this Agreement are intended to be interpreted and construed in a manner
to make such provisions valid, legal, and enforceable. To the extent that any Section of this
Agreement or any word, phrase, clause, or sentence hereof shall be deemed by any court to be
illegal or unenforceable, such word, clause, phrase, sentence, or Section shall be deemed modified,
restricted, or omitted to the extent necessary to make this Agreement enforceable. Without
limiting the generality of the foregoing, if the scope of any covenant in this Agreement is too
broad to permit enforcement to its full extent, such covenant shall be enforced to the maximum
extent provided by law; and Executive agrees that such scope may be judicially modified
accordingly.

          (b) This Agreement may be assigned by Wintrust. This Agreement and the covenants set forth
herein shall inure to the benefit of and shall be binding upon the successors and assigns of
Wintrust.

          (c) This Agreement may not be assigned by Executive, but shall be binding upon Executive’s
executors, administrators, heirs, and legal representatives.

- 15 -

 

          (d) No waiver by either party of any breach by the other party of any of the obligations,
covenants, or representations under this Agreement shall constitute a waiver of any prior or
subsequent breach.

          (e) Where in this Agreement the masculine gender is used, it shall include the feminine if the
sense so requires.

          (f) Wintrust may withhold from any payment that it is required to make under this Agreement
amounts sufficient to satisfy applicable withholding requirements under any federal, state, or
local law.

          (g) This instrument constitutes the entire agreement of the parties with respect to its
subject matter. This Agreement may not be changed or amended orally but only by an agreement in
writing, signed by the party against whom enforcement of any waiver, change, modification,
extension, or discharge is sought. Any other understandings and agreements, oral or written,
respecting the subject matter hereof are hereby superseded and canceled.

          (h) The provisions of Sections 4, 5, 6, 7, 9(i), 9(j), 10, 11, and 12 of this Agreement shall
survive the termination of Executive’s employment with Wintrust and the expiration or termination
of this Agreement.

     12. Governing Law. The parties agree that this Agreement shall be construed and
governed by the laws of the State of Illinois, excepting its conflict of laws principles. Further,
the parties acknowledge and specifically agree to the jurisdiction of the courts of the State of
Illinois in the event of any dispute regarding Sections 3, 4, 5, or 6 of this Agreement.

     13. Section 409A. This Agreement shall be interpreted and construed in a manner that
avoids the imposition of additional taxes and penalties under Section 409A of the Code (“409A
Penalties”). In the event the terms of this Agreement would subject Executive to 409A Penalties,
Wintrust and Executive shall cooperate diligently to amend the terms of the Agreement to avoid such
409A Penalties, to the extent possible. The payments to Executive pursuant to Section 9 of this
Agreement are intended to be exempt from Section 409A of the Code to the maximum extent possible,
under either the separation pay exemption pursuant to Treasury regulation §1.409A-1(b)(9)(iii) or
as a short-term deferral pursuant to Treasury regulation §1.409A-1(b)(4), and for purposes of the
separation pay exemption, each installment paid to Executive under Section 9 shall be considered a
separate payment. Notwithstanding any other provision in this Agreement,

     if on the date of Executive’s separation from service, within the meaning of Section 409A of the
Code (the “Separation Date”), (i) Wintrust is a publicly traded corporation and (ii) Executive is a
“specified employee,” as defined in Section 409A of the Code, then to the extent any amount payable
under this Agreement constitutes the payment of nonqualified deferred compensation, within the
meaning of Section 409A of the Code, that under the terms of this Agreement would be payable prior
to the six-month anniversary of the Separation Date, such payment shall be delayed until the
earlier to occur of (A) the six-

- 16 -

 

month anniversary of the Separation Date or (B) the date of
Executive’s death. For purposes of determining the timing of payments to Executive pursuant to
Section 9, all references to Executive’s termination of employment shall mean the Separation Date.

     14. Notice of Termination. Subject to the provisions of Section 8, in the event that
Wintrust desires to terminate the employment of the Executive during the Term of this Agreement,
Wintrust shall deliver to Executive a written notice of termination, stating whether the
termination constitutes a termination in accordance with Section 9(c), 9(d), 9(e), 9(f), or 9(h).
In the event that Executive determines in good faith that Executive has experienced a Constructive
Termination, Executive shall deliver to Wintrust a written notice stating the circumstances that
constitute such Constructive Termination. In the event that the Executive desires to effect a
voluntary termination of Executive’s employment in accordance with Section 9(g), Executive shall
deliver a written notice of such voluntary termination to Wintrust.

     IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date
written opposite their signatures.

	 	 	 	 	 	 	 	 	 
	WINTRUST FINANCIAL CORPORATION	 	 	 	RICHARD B. MURPHY	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ David A. Dykstra
 

	 	 
	 	/s/ Richard B. Murphy
 

	 	 
	 
	 	 	 	 	 	 	 	 
	Its: Senior EVP and Chief Operating Officer	 	 	 	Dated: January 24, 2008	 	 
	 
	 	 	 	 	 	 	 	 
	Dated: January 24, 2008
	 	 	 	 	 	 

- 17 -

 

Exhibit 10.3

EXHIBIT A

Advantage National Bank

Barrington Bank & Trust Company, N.A.

Beverly Bank & Trust Company, N.A.

Crystal Lake Bank & Trust Company, N.A.

First Insurance Funding Corporation

Focused Investments LLC

Hinsdale Bank & Trust Company

Hinsbrook Bank & Trust Company

Lake Forest Bank & Trust Company

Libertyville Bank & Trust Company

North Shore Community Bank & Trust Company

Northbrook Bank & Trust Company

Old Plank Trail Community Bank, N.A.

St. Charles Bank & Trust Company

State Bank of the Lakes

Town Bank (Wisconsin)

Tricom, Inc. of Milwaukee

Village Bank & Trust-Arlington Heights

Wayne Hummer Asset Management Company

Wayne Hummer Investments, LLC

Wayne Hummer Trust Company, N.A.

Wheaton Bank & Trust Company

Wintrust Information Technology Services Company

 

 

EXHIBIT BEX-10.1 Settlement Agreement

 

Exhibit 10.1

SETTLEMENT AGREEMENT

     Settlement Agreement (the “Settlement Agreement”) is entered into on this 24th day
of January, 2008 by and between MasTec North America, Inc., a Florida corporation (“Seller”), and
ATLAS Traffic Management Systems LLC, a Delaware limited liability company formerly known as LM-ITS
Acquisition Company LLC (“Buyer”).

     WHEREAS, the parties previously entered into that certain Asset Purchase Agreement (the
“Original Agreement”) dated as of November 9, 2006;

     WHEREAS, the parties subsequently entered into an Amended and Restated Asset Purchase
Agreement (the “Amended Agreement”) dated as of February 14, 2007 (the “Amended Agreement Date”)
under which the parties amended and restated the Original Agreement in full and Buyer acquired
certain assets and assumed certain liabilities as further specified in the Amended Agreement,
including substantially all of the Seller’s state Department of Transportation related projects and
assets (the “DOT Business”), on the terms and conditions set forth in the Amended Agreement;

     WHEREAS, the parties have several outstanding disputes related to the Original Agreement and
the Amended Agreement, including without limitation allegations by the Buyer of various asserted
breaches by the Seller of the representations, warranties and indemnification provisions of the
Original Agreement and the Amended Agreement and other alleged claims, all of which the Seller
denies;

     WHEREAS, the parties hereto have agreed to settle all such outstanding disputes and all other
claims or potential claims of Buyer against Seller, known or unknown, and have further agreed that
in exchange for the consideration set forth below, Buyer shall release and discharge Seller from
all claims, liabilities and obligations of every kind, including without limitation, any and all
claims, liabilities, obligations and alleged breaches under the Original Agreement and Amended
Agreement, except as specifically set forth herein, subject to the terms as hereinafter set forth.

     NOW, THEREFORE, in consideration of the promises and the respective covenants and agreements
of the parties contained herein, and intending to be legally bound hereby, the parties agree as
follows:

     1. Recitals. The recitals contained herein are true and correct and by this reference
are incorporated herein and made a part of this Settlement Agreement.

     2. Definitions. Capitalized terms used but not defined herein shall have the
respective meanings ascribed to them in the Revised Amended Agreement, including Exhibit A thereto
(defined in Section 5 hereof).

     3. Payment.

          a. Settlement Payment. Seller shall pay to Buyer on the date hereof the sum of
$4,276,715 in cash by wire transfer of immediately available funds (the “Settlement Amount”),
representing the net of a total of $6,000,000 the Seller has agreed to fund minus

Page 1 of 9

 

$1,723,285, which represents the net of all amounts due Seller from Buyer for work performed
or services provided through December 31, 2007 (except for amounts due Seller for work performed
with respect to NCDOT Project No. 2059, which amounts Buyer shall pay to Seller upon Buyer’s
receipt thereof), which the parties agree is currently due and owing by Buyer to Seller under the
Amended Agreement (the “Settlement Payment”).

          b. LADOT Settlement Payment.

               i) Seller shall pay to Buyer on the date hereof the sum of $610,735, in cash by wire transfer
of immediately available funds (the “LADOT Settlement Amount”), representing the net of a total of
$1,625,000 owing to Buyer minus $1,014,265 in advances made by Seller to Buyer and a certain
settlement payment made by Seller to the State of Louisiana in connection with the LADOT Projects.
Payment of the LADOT Settlement Amount represents full payment and final satisfaction of any and
all amounts due or collectible from (A) Seller and (B) Arch Insurance Company, Arch Reinsurance
Company and any present or future subsidiary or Affiliate of Arch Insurance Company (collectively,
“Arch”), in connection with, arising out of or related to the completion of any of the LADOT
Projects, including without limitation, under Section 19(a)(iv) of the Amended Agreement. For
purposes of this Settlement Agreement, “LADOT Projects” shall have the same meaning as that set
forth in the Amended Agreement as follows: “the four Louisiana Department of Transportation
projects identified on Schedule 2(f)” of the Amended Agreement.

               ii) Buyer and its past and present officers, directors, members, parent companies,
subsidiaries, related entities, employees, representatives, legal representatives, assigns,
transferees, predecessors, heirs, principals, attorneys, agents and all of Buyer’s other direct and
indirect Affiliates (collectively, the “Releasing Party”), for and in consideration of the LADOT
Settlement Amount and other good and valuable consideration, the receipt and sufficiency are hereby
acknowledged, agree that neither the Releasing Party nor anyone on his, her or its behalf, shall
assert, make or file any complaint, charge, suit, action or other Claim (as defined in Section
7(a)) against Seller or Arch or their respective past and present officers, directors,
shareholders, parent companies, subsidiaries, related entities, employees, representatives, legal
representatives, assigns, transferees, predecessors, heirs, principals, attorneys, agents and all
other direct and indirect Affiliates of Seller or Arch, as the case may be (collectively, the
“LADOT Released Parties”) with respect to any LADOT Project, provided that (1) Seller pays the
LADOT Settlement Amount to Buyer in accordance with the terms hereof, and (2) the foregoing release
of Seller and Arch shall not release Arch from its obligation to remit to Buyer any sums received
by Arch from LADOT with respect to the LADOT Project No. 2113, less (A) any attorneys’ fees and
costs and (B) costs of removal of liens for work, labor and materials incurred by Arch in
connection with the LADOT Projects (the “Arch Payment”). Buyer agrees that payment of the Arch
Payment will represent full payment and final satisfaction of any and all amounts due or
collectible from Arch under the completion contract between Buyer and Arch dated August 31, 2007.
In the event that any complaint, charge, suit, action or other Claim is made, asserted or filed in
breach of this Section 3(b)(ii), the LADOT Released Parties shall be entitled to recover from Buyer
jointly and severally with any Releasing Party acting in breach of this Section 3(b)(ii) their
reasonable attorneys’ fees and costs incurred in connection with any such breach at both the trial
and appellate levels, including all reasonable

Page 2 of 9

 

attorneys’ fees and costs incurred in litigating entitlement to, or the amount of, such
attorneys’ fees and costs.

               iii) Notwithstanding anything to the contrary contained in this Section 3(b) or in the
Terminated Agreements and for avoidance of doubt, accounts receivable relating to, or arising in
respect of, the LADOT Projects shall be deemed Acquired Receivables and any and all payments on
account of such accounts receivable heretofore or hereafter received by Seller shall be deemed to
have been received in trust for the benefit of Buyer, and shall be turned over to Buyer, consistent
with Section 13(e) of the Revised Amended Agreement, within five (5) Business Days following the
receipt thereof.

          c. Payment for Leasehold Improvements. Seller shall pay Buyer $192,500 (calculated
based on the original allowance of $402,500 less $210,000, the total of amounts previously paid by
Seller for certain leasehold improvements), which represents full payment and final satisfaction of
any and all amounts due from Seller with respect to leasehold improvements under the lease
agreement between Buyer as tenant and Seller as landlord dated February 14, 2007 relating to that
property known as 2801 S.W. 46th Avenue and 4601 S.W. 30th Street, Davie,
Florida 33314 (the “Triple Net Lease”) and the lease agreement between Buyer as tenant and Seller
as landlord dated February 14, 2007 relating to the shop property located at 2801 S.W.
46th Avenue, Davie, FL 33314 (the “Shop Property Lease”, and together with the Triple
Net Lease, the “Leases”).

     4. Known Proceedings. As of the date hereof, other than Proceedings and claims of
which Buyer has Knowledge, Seller represents to Buyer that to its Knowledge it has not received
written notice from any third party regarding any material claim against Seller regarding the
Business other than (a) the Assumed Proceedings set forth on Schedule 4(a)(viii) of the Revised
Amended Agreement (as defined in Section 5 hereof) and (b) the Excluded Proceedings.
Notwithstanding anything contained herein to the contrary, Seller’s representation under this
Section 4 shall survive for a period of 12 months from the date hereof after which time such
representation shall be of no further force or effect. No claim may be brought with respect to
Seller’s representation under this Section 4 unless Buyer delivers to Seller written notice of such
claim (in the form required by Section 21(a) of the Revised Amended Agreement) setting forth the
basis for such claim (including a description of the breach that has occurred) prior to the first
anniversary of the date hereof. For purposes of this Settlement Agreement, “Knowledge” means, with
respect to Seller, the actual knowledge, without inquiry, of C. Robert Campbell, Alberto de
Cardenas, Michele R. Laine and/or Corey Collins, and with respect to Buyer, the actual knowledge,
without inquiry, of Benjamin G. Mayer, Andro Nodarse-León, James Fowler, Lewis Black, John Coyne
and/or Daniel Wilkerson.

     5. Amendment and Restatement of Amended Agreement. Simultaneous with the execution,
delivery and effectiveness of this Settlement Agreement, Buyer and Seller are amending and
restating the Amended Agreement in full as set forth in the Amended Agreement attached hereto as
Exhibit 5 (the “Revised Amended Agreement”). Following the execution and delivery of the Revised
Amended Agreement, the Amended Agreement will be amended and restated in its entirety by the
Revised Amended Agreement and of no further force or effect. The parties hereby reaffirm and
confirm as of the Amended Agreement Date and the date hereof all of their representations,
warranties, covenants and agreements set forth in the Revised Amended

Page 3 of 9

 

Agreement. For purposes of clarity, all representations and warranties reaffirmed by Buyer in
this Section 5 as of the date hereof are made as of the date hereof and are material terms of this
Settlement Agreement as if set forth in full herein.

     6. Indemnity Agreements. As a condition precedent to Seller’s payment of the Settlement
Amount and the LADOT Settlement Amount as set forth in Sections 3(a) and (b) of this Settlement
Agreement, Buyer shall deliver to Seller a copy of (a) a fully executed indemnity agreement between
Buyer and Arch in the form attached hereto as Exhibit 6(a), and (b) a fully executed indemnity
agreement between Buyer and Lumbermans Mutual Casualty Company, American Motorists Insurance
Company, American Manufacturers Mutual Insurance Company (collectively, “Kemper”), in the form
attached hereto as Exhibit 6(b).

     7. General Release and Covenant Not to Sue.

          a. The Releasing Party, for and in consideration of the Settlement Payment and the LADOT
Settlement Amount, as required under Section 3 above and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, hereby remises, releases, acquits,
satisfies and forever discharges Seller and its past and present officers, directors, shareholders,
parent companies, subsidiaries, related entities, employees, representatives, legal
representatives, assigns, transferees, predecessors, heirs, principals, attorneys, agents and all
of Seller’s other direct and indirect Affiliates (collectively “Released Party”), of and from all,
and all manner of action and actions, cause and causes of action, suits, debts, dues, sums of
money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies,
agreements, obligations, promises, variances, trespasses, damages, judgments, executions, claims
and demands whatsoever (all of the foregoing collectively, “Claims”), in law or equity, known or
unknown, choate or inchoate, which said Releasing Party, either individually or collectively,
claims to have on behalf of itself or any other entity or person, ever had, now has, or which any
personal representative, successor, heir or assign of the Releasing Party, hereafter can, shall or
may have, against the Released Party, either individually or collectively, from the beginning of
the world to the date of this Settlement Agreement, including without limitation i) any and all
Claims arising from the performance, nonperformance, or any claim of breach of the Seller’s
covenants, agreements and other obligations under the Original Agreement, the Amended Agreement or
any certificates, documents or agreements provided by the parties in connection therewith
(including Seller’s obligations to transfer the Assets as set forth in Section 2 of the Amended
Agreement, all of which Buyer acknowledges having received), ii) any and all Claims arising from
the Seller’s representations and warranties contained in the Original Agreement, the Amended
Agreement or any certificates, documents or agreements provided by the parties in connection
therewith, iii) any and all Claims arising (whether pursuant to the provisions of the Original
Agreement, the Amended Agreement, the Terminated Agreements (defined in Section 11 hereof) or any
certificates, documents or agreements provided by the parties in connection therewith) for breaches
of any representations, warranties, indemnification obligations or otherwise, including without
limitation any Claims based on or related to allegations of total liquidity shortfall or total
value shortfall and/or based on or related to fraud, iv) any and all Claims arising from any
financial or other information provided by Seller or otherwise made available by Seller to Buyer,
including in connection with the Original

Page 4 of 9

 

Agreement or the Amended Agreement, or in connection with any other fact, circumstance or thing, v)
any and all Claims arising from any financial or other information not provided by Seller or not
otherwise made available by Seller to Buyer, including in connection with the Original Agreement or
the Amended Agreement, or in connection with any other fact, circumstance or thing, and vi) any and
all other Claims of any nature whatsoever, whether or not arising from the Original Agreement, the
Amended Agreement, or any of the agreements set forth on Schedule 7(a) hereto (collectively, the
“Preserved Agreements”), subject to and excepting only the obligations of the Seller which
are (A) required to be performed under this Settlement Agreement, (B) required to be performed by
Seller under the Preserved Agreements following the date hereof, or (C) required to be performed by
Seller under the agreements listed on Schedule 7(a)(1) hereto solely with respect to the projects
set forth on Schedule 7(a)(1) hereto for which, as of the date hereof, Buyer has made payment to
Seller, but for which Buyer has not received payment from the owner or third party for whom the
work is being performed (the “Preserved Obligations”), as to which in the case of each of
the preceding clauses (A), (B) and (C), Buyer continues to have all rights against Seller
thereunder in the event of breach or non-performance; provided, that upon Buyer’s receipt of
payment for any Preserved Obligation and notwithstanding anything contained in the Preserved
Agreements to the contrary, such obligation shall automatically be deemed, without any additional
action by the parties hereto, to (i) not have been a Preserved Obligation for any purpose, (ii) be
a fully released Claim pursuant to this Section 7(a) as of the date hereof, and (iii) be fully
subject to the covenant not to sue of Section 7(b).

          b. Neither the Releasing Party nor anyone on his, her or its behalf, shall assert, make or
file any complaint, charge, suit, action or any other Claim against the Released Party with respect
to any matter expressly agreed upon in Section 7(a) provided that the Seller satisfies all of its
obligations required to be performed pursuant to Section 3 of this Settlement Agreement. In the
event that any complaint, charge, suit, action or other Claim is made, asserted or filed in breach
of this Section 7(b), the Released Party shall be entitled to recover from the Buyer jointly and
severally with any Releasing Party acting in breach of this Section 7(b) its reasonable attorneys’
fees and costs incurred in connection with any such breach at both the trial and appellate levels,
including all reasonable attorneys’ fees and costs incurred in litigating entitlement to, or the
amount of, such attorneys’ fees and costs.

          c. Releasing Party acknowledges that it may hereafter discover facts different from, or in
addition to, those which it now believes to be true with respect to any and all of the Claims
herein released.

          d. Releasing Party acknowledges that it has made an investigation of the facts pertaining to
this Settlement Agreement, the Original Agreement, the Amended Agreement, any and all information
it has ever been provided by any Released Party and any and all dealings it has ever had with any
Released Party to the extent it has deemed necessary, and, further, acknowledges that it has not
relied upon any statement or representation of the Released Party, other than as set forth in this
Settlement Agreement or the Revised Amended Agreement.

     8. Seller
Services to Buyer. Notwithstanding anything contained in the Original
Agreement or the Amended Agreement to the contrary, from and after the effectiveness of this
Settlement Agreement, other than with respect to (a) the Preserved Obligations or (b) any

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obligations under the Preserved Agreements which are expressly required by their terms to be
satisfied following the date hereof, Seller shall have no further obligation to provide any work,
materials or other services to Buyer, and any future work, materials or other services provided to
Buyer shall be in Seller’s sole and absolute discretion and on payment terms to be mutually agreed.
All payments due from the Buyer to the Seller for any unpaid work, materials or other services, as
of and after December 31, 2007, shall be paid in accordance with the terms of the existing
agreements for such work, materials or other services.

     9. No Admission of Liability. Each party denies that it has violated any law,
breached any contract (including, without limitation, the Original Agreement, the Amended
Agreement, the NDA, the Terminated Agreements, the Preserved Agreements and the Preserved
Obligations), or injured or wronged the other party in any way. This Settlement Agreement is not,
and shall not in any way be construed for any purpose as, an admission by either party of any
liability or wrong-doing, but instead constitutes the good faith settlement of the parties as to
all matters.

     10. Security
Services under Leases. Buyer and Seller acknowledge and agree that
notwithstanding the terms of the Leases, Seller agrees to pay one-half (1/2) of the amount of
Buyer’s reasonable out-of-pocket costs (for which documentation shall be provided to Seller upon
Seller’s reasonable request) for services provided by Persons who are not Affiliates of Buyer to
provide security for the entire property of which the premises covered by the Leases constitutes a
portion. Seller’s obligation under this Section 10 may be satisfied by a reduction in the agreed
amount of aggregate additional rent payable by Buyer to Seller pursuant to the Leases.

     11. Termination of Original Agreement and Certain Other Agreements Between the
Parties. The Amended Agreement amended and restated in its entirety the Original Agreement,
which is of no further force or effect, and the Revised Amended Agreement amends and restates in
its entirety the Amended Agreement, which is of no further force or effect. Additionally, (a) each
of the agreements listed on Schedule 11 hereto and (b) all other agreements, contracts, leases
(including all leases of real property), consensual obligations, promises and undertakings (whether
written or oral, express or implied, relating to the Business or not or legally binding or not),
which were entered into between Buyer and Seller prior to the date of this Settlement Agreement and
which are not Preserved Agreements (collectively, the “Terminated Agreements”) are hereby
terminated and of no further force or effect, except for (i) Buyer’s obligation to pay, which in
every case shall survive this Settlement Agreement and shall be payable in accordance with the last
sentence of Section 8 of this Settlement Agreement for all services rendered thereunder by or on
behalf of Seller which have not been satisfied as of the date hereof, and (ii) any indemnification,
hold harmless or similar obligations thereunder of Buyer for the benefit of Seller and/or its
Affiliates.

     12. Termination of Transition Services Agreement. The transition services agreement
dated as of February 14, 2007 between Seller and Buyer (the “Transition Services Agreement”) is
hereby terminated and of no further force or effect. Buyer and Seller acknowledge and agree that
(a) there are no outstanding amounts or payments due and owing by Buyer to Seller pursuant to the
Transition Services Agreement, and (b) Seller has no further obligations pursuant to the Transition
Services Agreement other than to transfer to Buyer

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promptly following the date hereof at no cost to Buyer all archived e-mail correspondence and
electronic data relating to the Business in Seller’s possession.

     13. Effectiveness. This Settlement Agreement and the Revised Amended Agreement shall
become effective upon the execution hereof and thereof by both parties and the payment by Seller of
the Settlement Payment, the LADOT Settlement Amount and the amount described in Section 3(c).

     14. Entire Agreement. This Settlement Agreement, the Revised Amended Agreement, the
Preserved Agreements, the Preserved Obligations, the NDA and the schedules, exhibits, certificates
and other agreements to be delivered pursuant hereto constitute the entire agreement and
understanding among the parties hereto with respect to the subject matter hereof and supersede all
prior and contemporaneous agreements, understandings, inducements, and conditions, express or
implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. This
Settlement Agreement may not be modified or amended other than by an agreement in writing executed
by the parties. Should there be any conflict between the terms of this Settlement Agreement and
the terms of the Revised Amended Agreement, the terms of this Settlement Agreement shall prevail.

     15. Governing Law. This Settlement Agreement shall be governed by and construed in
accordance with the laws of the State of Florida without regard to the conflicts-of-laws rules
thereof.

     16. Dispute Resolution. This Settlement Agreement shall be governed by and construed
in accordance with the laws of the State of Florida applicable to contracts made and to be
performed therein. Any controversy or claim arising out of or relating to this Settlement
Agreement or any related agreement or any of the contemplated transactions will be settled in the
following manner: (i) senior executives representing each of Seller and Buyer will meet to discuss
and attempt to resolve the controversy or claim, (ii) if the controversy or claim is not resolved
as contemplated by clause (i), Seller and Buyer will, by mutual consent, select an independent
third party to mediate such controversy or claim, provided that such mediation will not be binding
upon the parties; and (iii) if such controversy or claim is not resolved as contemplated by clauses
(i) and (ii), the parties will refer any dispute hereunder (to the exclusion of a court of law) to
final and binding arbitration in Miami, Florida in accordance with the then existing rules for
expedited arbitration (the “Rules”) of the American Arbitration Association (“AAA”), and judgment
upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof.
The law applicable to any controversy shall be the law of the State of Florida, regardless of
principles of conflicts of laws. In any arbitration pursuant to this Agreement involving a dispute
in excess of $500,000, the award or decision shall be rendered by a majority of the members of a
Board of Arbitration consisting of three members, one of whom shall be appointed by each of the
respective parties and the third of whom shall be the chairman of the panel and be appointed by
mutual agreement of said two party-appointed arbitrators. In the event of failure of said two
arbitrators to agree within twenty (20) days after the commencement of the arbitration proceeding
upon the appointment of the third arbitrator, the third arbitrator shall be appointed by the AAA in
accordance with the Rules. In the event of a dispute involving a sum equal to or less than
$500,000, a single arbitrator shall be appointed by the AAA in accordance with the Rules. In the
event that either party shall fail to appoint an arbitrator within ten (10) days after the

Page 7 of 9

 

commencement of the arbitration proceedings, such arbitrator and the third arbitrator shall be
appointed by the AAA in accordance with the Rules. Nothing set forth above shall be interpreted to
prevent the parties from agreeing in writing to submit any dispute to a single arbitrator in lieu
of a three member Board of Arbitration. Upon the completion of the selection of the Board of
Arbitration (or if the parties agree otherwise in writing, a single arbitrator), an award or
decision shall be rendered in writing within no more than thirty (30) days. The award rendered by
arbitration shall be final and binding upon the parties, and judgment upon the award may be entered
in any court of competent jurisdiction in the United States. Notwithstanding the foregoing, the
request by either party for preliminary or permanent injunctive relief, whether prohibitive or
mandatory, shall not be subject to arbitration and shall be adjudicated only by the courts of the
State of Florida located in Miami-Dade County or the U.S. District Court for the Southern District
of Florida. Each of the parties to this Settlement Agreement irrevocably consents to the service
of process in any action or proceeding hereunder by the mailing of copies of the notice, summons
and/or complaint by registered or certified airmail, postage prepaid, to the address specified in
Section 21(a) (Notices) of the Revised Amended Agreement. The foregoing shall not limit the rights
of any party to this Settlement Agreement to serve process in any other manner permitted by
Applicable Law or to obtain execution of judgment in any other jurisdiction. An arbitrator(s) or
court reviewing any dispute related to this Agreement pursuant to this Section 15 may award
reasonable costs for legal representation to a successful party and may apportion the costs of the
arbitration or court costs between the parties if the arbitrator or court determines that such
apportionment is reasonable, taking into account the circumstances of the case.

     17. Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY LAW, ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR
COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS
SETTLEMENT AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

     18. Execution in Counterparts; Facsimile Signatures. This Settlement Agreement may be
executed in any number of counterparts, each of which shall be deemed to be an original as against
any party whose signature appears thereon, and all of which shall together constitute one and the
same instrument. This Settlement Agreement shall become effective when one or more such
counterparts have been signed by each of the parties and delivered to the other party. A facsimile
signature will have the same force and effect as an original signature.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

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     IN WITNESS WHEREOF, the undersigned have executed this Settlement Agreement as of the
24th day of January, 2008.

	 	 	 	 	 	 	 
	 	 	MASTEC NORTH AMERICA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ C. Robert Campbell	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	C. Robert Campbell	 	 
	 

	 	 	 	Chief Financial Officer &	 	 
	 

	 	 	 	Executive Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	ATLAS TRAFFIC MANAGEMENT SYSTEMS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Andro Nodarse-León	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Andro Nodarse-León	 	 
	 

	 	 	 	Founding Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Benjamin G. Mayer	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Benjamin G. Mayer	 	 
	 

	 	 	 	Founding Director	 	 

Page 9 of 9

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