Document:

exv10w58

Exhibit 10.58

Midwest Banc Holdings, Inc.

2008 Management Incentive Plan

Plan Summary

Introduction:

The Management Incentive Plan is a supplemental compensation program in accordance with our pay for
performance philosophy designed to reward officers and select exempt associates of Midwest Banc
Holdings, Inc. (MBHI) for their contributions in the achievement of bank profitability and
strategic objectives.

Purpose:

To maximize achievement of key corporate strategic and annual business goals through the payment of
incentives to participants based on their contribution to the attainment of those goals.

Eligibility:

Cash Based Incentives: Officers and select exempt associates are eligible to receive cash
incentives under the Plan. Commissioned associates are not eligible for participation.

Long Term Stock Based Incentives: Vice President and higher level officers and select
Assistant Vice Presidents are eligible to receive long term incentive (LTI) awards under the Plan.
All stock based awards will be granted in accordance with the Midwest Banc Holdings, Inc. Stock and
Incentive Plan.

CEO and COO incentive awards are governed by their employment agreements. All individuals promoted
after June 30, 2008 will participate on a pro-rata basis (1/12 per month of eligibility). New
Associates hired after March 31, 2008 will participate on a pro-rata basis (1/12 per month of
eligibility). Incentives are only paid to participants who are on the payroll through December 31,
2008.

Structure: (Attachment I)

Executive Management 12-15 participants including the most senior positions such as
Executive Vice President, CFO or related positions. The combined payout of cash and LTI is
targeted at 46% of annual salary and may range between 0%-80% based on performance. The majority
of this group will receive 60% of their award based on company performance and the balance based on
division/individual performance against established goals.

Senior Management 12-15 positions to include Senior Vice President/Department Heads, Senior
Lenders or related positions. The combined payout of cash and LTI is targeted at 36% of annual
salary and may range between 0%-60% based on performance. The majority of this group will receive
40% of their award based on company performance and the balance based on department/individual
performance against established goals.

General Management All other officer positions. The cash payout is targeted at 10%-15% of
annual salary and may range between 0%-25% based upon position and performance. Those eligible
will receive the same percentage as a LTI award. The majority of this group will receive 20% of
their award based on company performance and the balance based on department/individual performance
against established goals.

Administration Select non-commissioned exempt associates. Cash only payout is targeted
at 8% of base salary and may range between
 0%-14% based on performance. The majority of this group
will received 10% of their award based on company performance and the balance based on
department/branch/individual goals.

 

 

Midwest Banc Holdings, Inc.

2008 Management Incentive Plan

Plan Summary (cont’d)

Page 2 of 4

Performance Measurement Factors:

Company Performance Goals

Company performance is measured by two to three financial and operating ratios as approved by the
Compensation Committee and reported to the Board of Directors. These goals are tied to the 2008
budget, which does not include any extraordinary occurrences such as those listed on page 3 under
Extraordinary Occurrences. The target goals for 2008 are attached
hereto as Exhibit A.

Individual Performance Goals

Individual Goals may incorporate both financial and non-financial factors determined to measure
individual performance and contributions towards meeting the Company’s strategic objectives.

Sample Goals:

	Ø	 	Deposit growth

	Ø	 	Commercial loan growth

	Ø	 	Net charge offs

	Ø	 	Fee income

	Ø	 	Completion of fee income opportunity analysis by March 15, 2008.

	Ø	 	Open the call center by 4/1/08

	Ø	 	Improve credit quality measures to at least peer levels.

Each participant will have specific weighting factors related to these performance objectives.
Executive goals and weighting factors will be approved by the CEO and reported to the Compensation
Committee. All other participant goals and weighting factors will be approved by the Division
Heads and reported to the CEO and COO. All goals will be set and necessary approvals obtained by
the March Compensation Committee meeting.

Incentive Award Elements

Base Award: Calculated award based upon performance against goals;

Discretionary Awards: Up to 25% of the Base Award for qualitative considerations as recommended by
the division head and determined at the discretion of the CEO and/or Compensation Committee and
approved by the Board of Directors.

Examples:

	 	•	 	Participation on special projects or task forces outside of established goals
	 
	 	•	 	Opening a new office or setting up a new operating entity under budget and/or ahead
of schedule.

 

 

Midwest Banc Holdings, Inc.

2008 Management Incentive Plan

Plan Summary (cont’d)

Page 3 of 4

Incentive Award Restrictions:

Please note that no incentive payments will be made under the Company Performance Goals portion of
the participant’s incentive if the Bank does not achieve minimum
earnings per share of $             or if risk
based capital falls below         % during 2008. The participant will
receive payments earned under the Individual Performance Goals portion of the incentive. For
example, an executive officer whose incentive is based 60% on Company Performance Goals and 40% on
Individual Performance Goals will forfeit 60% of their incentive.

Timing of Payouts

All cash and stock payments under the 2008 Management Incentive Plan will be made no later than
March 15, 2009 after review of final 2008 financial results.

Mid-Year Reviews

All participants will receive a mid-year review of their progress toward meeting goals under the
Plan.

Extraordinary Occurrences

Goals may be adjusted if appropriate due to extraordinary occurrences. Adjustments need the
approval of the division head. The participant and their manager must agree upon the adjustments
in writing. The mid-year review time may be used to assess the need for adjustments. Adjustments
to company goals must be approved by the Compensation Committee. Adjustments to an executive’s
individual goals must be approved by the CEO and reported to the Compensation Committee.

Extraordinary occurrences are defined as events outside the influence or control of plan
participants which may create a significant unintended effect –positive or negative– on financial,
operating or individual performance.

Examples might include:

	•	 	a sale of assets,

	•	 	unusual portfolio fluctuations,

	•	 	outsourcing,

	•	 	promotion or reassignment of duties.

In the event of retirement, permanent disability or death, the requirement of being an active
employee as of December 31, 2008 will be waived and incentives
will be paid on a pro-rata basis.

 

 

Midwest Banc Holdings, Inc.

2008 Management Incentive Plan

Plan Summary (cont’d)

Page 4 of 4

Administration:

The incentive plan payout pools and individual awards for the CEO, COO and executive officers are
reviewed and approved by the Compensation Committee and then the Board of Directors. The Senior
Vice President–Human Resources and Executive Vice President & CAO will administer and manage the
Plan.

The Compensation Committee, to the extent permitted by governing law, will have the sole and
absolute authority to make retroactive adjustments to any cash or equity based incentive
compensation paid to executive officers and certain other officers where the payment was predicated
upon the achievement of certain financial results that were subsequently the subject of a
restatement. Where applicable, the Company will seek to recover any amount determined to have been
inappropriately received by the individual executive.

In the event of a significant change in organization by reason of merger, acquisition, or other
changes, the CEO will recommend appropriate actions for the Compensation Committee’s approval to
assure that awards under the 2008 Incentive Plan will not be inappropriately enhanced or adversely
affected.

The Compensation Committee can change, amend or terminate the Incentive Plan at any time, except
that no such action will adversely affect outstanding payments owed under the Plan. The 2008
Incentive Plan will be established retroactive to January 1, 2008 and will terminate at December
31, 2008.exv10w1

Exhibit 10.1

2007 STOCK INCENTIVE PLAN

OF

SPECIALTY UNDERWRITERS’ ALLIANCE, INC.

DEFERRED STOCK AWARD AGREEMENT

     AGREEMENT made as of                     , 20___, by and between SPECIALTY UNDERWRITERS’ ALLIANCE, INC.,
a Delaware corporation (the “Company”), and                      (the “Holder”).

W I T N E S S E T H:

     WHEREAS, the Company has adopted the 2007 Stock Incentive Plan of Specialty Underwriters’
Alliance, Inc. (the “Stock Incentive Plan”) pursuant to which deferred stock awards with respect to
shares of the Company’s common stock (“Shares”) may be awarded to employees and directors of the
Company and its subsidiaries (“Subsidiaries”); and

     WHEREAS, the Company has granted to the Holder a deferred stock award pursuant to the Stock
Incentive Plan; and

     WHEREAS, it is intended that this Agreement shall set forth the terms, conditions and
restrictions imposed with respect to said deferred stock award;

     NOW, THEREFORE, in consideration of the mutual covenants herein contained and other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

     FIRST : Pursuant to the Stock Incentive Plan, the Holder has been awarded on                     ,
20___ (the “Award Date”), a deferred stock award
with respect to ___ Shares (the “Deferred Stock
Award” and such Shares, the “Deferred Shares”), subject to the terms, conditions and restrictions
set forth in the Stock Incentive Plan and in this Agreement.

     SECOND: Except as otherwise provided pursuant to the Stock Incentive Plan and this
Agreement, the Deferred Stock Award shall vest at a rate of ___% on [                    ] [and on

 

 

each of
the next ___ anniversaries of [                    ] ([                    ] [and each such
anniversary] being referred to herein as a “Deferred Share Delivery Date”), provided the Holder is
still in the employ or service of the Company or a Subsidiary on each respective vesting date. If
the Holder’s employment with the Company and its Subsidiaries terminates prior to the date on which
any portion of the Deferred Stock Award becomes vested, then the number of Deferred Shares that
have not vested shall not be issuable to the Holder. [Notwithstanding the foregoing, if (i) the
Holder retires from the Company or a Subsidiary at or after age 55 and after at least five years of
employment with the Company or a Subsidiary following the initial public offering of the Company
(“Post-IPO Employment”), and (ii) the sum of the Holder’s (A) age on the day of retirement (the
“Retirement Date”) and (B) years of Post-IPO Employment on the Retirement Date exceeds 65, then the
Retirement Percentage (as defined below) of the Deferred Shares which have not vested on the
Retirement Date shall continue to vest in accordance with the terms of this award. Retirement
Percentage shall mean 0% if the Holder has not given the Company a nine-month advance written
notice of such Holder’s retirement prior to the Retirement Date (which notice requirement may be
waived by the Committee in its sole discretion) and otherwise the following:

50% — 5 years of Post-IPO Employment on the Retirement Date

60% — 6 years of Post-IPO Employment on the Retirement Date

70% — 7 years of Post-IPO Employment on the Retirement Date

80% — 8 years of Post-IPO Employment on the Retirement Date

90% — 9 years of Post-IPO Employment on the Retirement Date

100% -10 years of Post-IPO Employment on the Retirement Date.

At any time that the Holder is not in compliance with the Restrictive Covenants set forth below all
remaining unvested Deferred Shares shall not be issuable to the Holder and shall be forfeited.]

The number of Deferred Shares with respect to which the Deferred Stock Award has become vested, if
any, shall be issued to the Holder on or as soon as practicable following the applicable

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Deferred Share Delivery Date, and in no event later than the end of the calendar year which
includes the Deferred Share Delivery Date; provided, however, that if the vesting of the Deferred
Stock Award is accelerated pursuant to the acceleration provisions of the Stock Incentive Plan,
then the Deferred Shares shall be issued to the Holder as soon as practicable after having become
vested, and in no event later than 2-1/2 months following the end of the calendar year in which
such vesting occurs. With respect to any issuance of Deferred Shares, any applicable restrictions
or conditions under the requirements of any stock exchange upon which the Deferred Shares or shares
of the same class are listed at the time of issuance, and under any securities law applicable to
such Shares, shall be imposed.

[“Restrictive Covenants” shall have the meaning set forth below in subsection (a) through (e) of
this Second Section.

     (a) Non-Competition. The Holder hereby acknowledges and recognizes that during the term of
Holder’s employment with the Company (the “Employment Period”) he will be privy to trade secrets
and confidential information critical to the Company’s business and that the Company would find it
extremely difficult or impossible to replace the Holder. Accordingly, the Holder agrees that, in
consideration of the premises contained herein, and the consideration to be received by the Holder
hereunder, he will not and will not permit any of his Affiliates to, except with the Company’s
prior written consent, during the Employment Period and for such period of time as the Holder shall
have any unvested Deferred Shares (collectively being the “Non-Competition Period”), engage,
directly or indirectly, whether as an employee, officer, director, consultant or otherwise, in any
activity that competes with the Company or any of its Affiliates in the business of insurance.
Nothing in this subsection shall prohibit the Holder or any of his Affiliates from owning for
passive investment purposes less than 5% of the publicly traded

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securities of any corporation listed on the New York Stock Exchange or the American Stock
Exchange or the NASDAQ.

     (b) Customer Non-Solicitation. During the Non-Competition Period, the Holder shall not, and
shall not permit any of his Affiliates to solicit, directly or indirectly, any person or entity
which (i) is currently a customer or party to any insurance-related contract with the Company
and/or its Affiliates, (ii) has been a customer or party to any insurance-related contract with the
Company and/or its Affiliates during the two year period immediately preceding such solicitation or
(iii) was solicited by the Company and/or its Affiliates during the two year period immediately
preceding such solicitation, provided that in the case of (b)(i) above such solicitation diverted
or attempted to divert the business of the Company and/or its Affiliates to another person or
entity or in the case of (b)(ii) and (b)(iii) above, the business solicited is business in which
the Company is currently engaged.

     (c) Employee Non-Solicitation. During the Non-Competition Period, the Holder shall not, and
shall not permit any of his Affiliates to, directly or indirectly, (i) solicit for employment,
engage and/or hire, whether directly or indirectly, any person who is then employed by the Company
and/or its Affiliates or engaged by the Company and/or its Affiliates as an independent contractor
or consultant; and/or (ii) encourage or induce, whether directly or indirectly, any person who is
then employed by the Company and/or its Affiliates or engaged by the Company and/or its Affiliates
as an independent contractor or consultant to end his/her business relationship with the Company
and/or its Affiliates.

     (d) Non-Disparagement of the Company. The Holder covenants that he will not, directly or
indirectly at any time during or after the Employment Period, disparage the Company or any of its
shareholders, directors, officers, employees, or agents.

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     (e) Acknowledgement. The Holder understands that the foregoing restrictions may limit his
ability to earn a livelihood in a business similar to the business of the Company, but he
nevertheless believes that he has received and will receive sufficient consideration and other
benefits as an employee of the Company and as otherwise provided hereunder to clearly justify such
restrictions which, in any event (given his education, skills and ability), the Holder does not
believe would prevent him from earning a living other than in a business which competes with the
Company.]

     THIRD : Prior to the date on which the Deferred Shares are issued to the Holder, the
Holder shall have no rights of a stockholder of the Company or any other rights with respect to any
assets of the Company, other than the rights of a general unsecured creditor of the Company.

     FOURTH : If, with respect to the Deferred Stock Award or the Deferred Shares, the
Company shall be required to withhold amounts under applicable federal, state or local tax laws,
rules or regulations, the Company shall be entitled to take such action as it deems appropriate in
order to ensure compliance with such withholding requirements and may, at its election, have the
Company or its agents withhold such vested number of Deferred Shares as would otherwise be issuable
and which shall have a Fair Market Value, valued on the date on which such Deferred Shares were
issued to the Holder.

     FIFTH : The Company and the Holder each hereby agree to be bound by the terms and
conditions set forth in the Stock Incentive Plan, which terms and conditions are hereby
incorporated by reference. Any capitalized terms used in this Agreement which are not defined
herein shall have the same definitions as set forth in the Stock Incentive Plan.

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     SIXTH : This Agreement shall not be construed as giving the Holder any rights to be an
employee of the Company or any of its Subsidiaries, or any other employment rights or relationship.

     SEVENTH : This Agreement shall inure to the benefit of, and be binding on, the Company
and its successors and assigns, and shall inure to the benefit of, and be binding on, the Holder
and his heirs, executors, administrators and legal representatives. This Agreement shall not be
assignable by the Holder.

     EIGHTH : Each provision of this Agreement is intended to be severable. If any term or
provision hereof is held by a court of competent jurisdiction to be illegal or invalid for any
reason whatsoever, such illegality or invalidity shall not affect the validity of the remaining
provisions of this Agreement, which shall continue in full force and effect.

     NINTH : Except as required by Delaware corporate law, this Agreement shall be subject
to, and construed in accordance with, the laws of the State of Illinois without giving effect to
principles of conflicts of law. The Company and the Holder each hereby consent to the personal
jurisdiction and venue of the state (and federal, if applicable) courts in the State of Illinois,
for resolution of all disputes and causes of action arising out of the Stock Incentive Plan, the
Deferred Stock Award or this Agreement, and the Company and the Holder each hereby waive all
questions of personal jurisdiction and venue of such courts, including, without limitation, the
claim or defense therein that such courts constitute an inconvenient forum. THE COMPANY AND THE
HOLDER EACH HEREBY WAIVE THEIR RESPECTIVE RIGHT TO A JURY TRIAL IN ANY ACTION ARISING OUT OF THE
STOCK INCENTIVE PLAN, THE DEFERRED STOCK AWARD OR THIS AGREEMENT.

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     TENTH : This Agreement, together with the Stock Incentive Plan, constitutes the entire
agreement between the parties hereto with respect to the Deferred Stock Award.

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

	 	 	 	 	 	 	 
	 	 	SPECIALTY UNDERWRITERS’ ALLIANCE, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	[Name of Holder]	 	 

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