Document:

ex10-1.htm

    FIRST
MIDWEST BANCORP, INC.

    COMPENSATION
AWARD AGREEMENT

     

    This
Compensation Award Agreement (the “Agreement”) is effective as of January 1,
2010 by and between First Midwest Bancorp, Inc., a Delaware corporation (“FMBI
”) and the executive of the Company or First Midwest Bank (the “Bank”) named on
Exhibit
A (the “Grantee ”).  FMBI and the Bank shall be referred to
herein as the “Company”.

     

    1.           Award:
The Company has approved an adjustment (increase) in your salary for fiscal year
2010 in an amount set forth as the “Annual Salary Adjustment Amount” to be paid
in bi-weekly installments. This Agreement evidences the grant to you of awards
(“Awards”) of the portion of such salary increaseto be paid in shares of FMBI
common stock (“Shares”) pursuant to your election, as provided by and pursuant
to the terms and conditions set forth in this Agreement. Unless otherwise
determined from time to time by either the FMBI Board of Directors (“Board”) or
the Compensation Committee of the Board (“Committee”) in their discretion, the
aggregate amount of your Annual Salary Adjustment Amount that shall be paid in
the form of Awards shall be determined in accordance with Section 2
below.

     

    2.           Pay
Period Grants: The portion of the Annual Salary Adjustment Amount payable
to you for each pay period ending on or after January 1, 2010 (each a “Pay
Period”) shall be the “Pay Period Amount” as defined on Exhibit
A net of applicable federal or state withholding obligations of the
Company and deductions, in accordance with established Company payroll
procedures (each a “Net Pay Period Amount”) on the Grant Date as defined by
Exhibit
A. Pursuant to your payment elections, which you have communicated to the
Company and which have been acknowledged and agreed to by the Company, each Net
Pay Period Amount shall be paid to the Grantee:

     

    
      	
              a.  

            	
              25%
      in cash; and

            

    

     

     

    
      	
              b.  

            	
              75%
      in an Award of Shares which shall be calculated by: (i) multiplying the
      Net Pay Period Amount by .75 (the “Share Value Amount”); and (ii) dividing
      the Share Value Amount by the closing price of the Shares as of the date
      immediately preceding the Grant Date.  If any fractional share
      results for this calculation, the number of Shares shall be rounded down
      to the nearest whole share with cash paid in lieu of the fractional
      share.

            

    

     

     

    The cash
paid and Shares awarded pursuant to (a) and (b) above will be paid and issued on
the Grant Date or as soon thereafter as administratively practicable in
accordance with established payroll procedures.

     

     

    3.           Shares:  Any
Shares issued pursuant to Section 2 will be 100% vested upon the Grant Dates. As
a condition to receiving any Awards under this Agreement, and notwithstanding
termination of employment other than due to death or permanent disability, you
hereby agree to hold and not transfer, for the entire period during which the
Company has any obligations outstanding under the Troubled Asset Relief Program
(the “Restriction Period”), 100% of the Shares received. If furtherance of your
agreement to not transfer the Shares, you agree that the Company may retain
custody of the Shares. Such transfer restrictions shall terminate upon
the

    
      
         

      

      
        
           

        

        
          
 

      

      
         

      

    

    earlier
of the end of the Restriction Period or the date which is one month following
the date of your death or permanent disability. For avoidance of doubt,
upon termination of employment for any other reason, the Shares shall remain
subject to the transfer restrictions.  Notwithstanding any other
provision of this Agreement, the Company may postpone the release of the Shares
until it receives satisfactory proof that the subsequent transfer
of  such Shares will not violate any of the provisions of the
Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as
amended, any rules or regulations of the Securities and Exchange
Commission  (the  “SEC”) promulgated thereunder, or the
requirements of the securities exchange upon which shares of FMBI stock are then
trading or any applicable state law relating to authorization, issuance or sale
of securities, or until there has been compliance with the provisions of such
acts or rules.  You understand that the Company has not registered the
Shares, and is under no obligation to register or qualify the Shares, with the
SEC, any state securities commission or any stock exchange to effect such
compliance. The issuance of Shares under this Agreement is subject to compliance
by the Company and you with all applicable legal requirements applicable
thereto, including tax withholding obligations, and with all applicable
regulations of any stock exchange on which the common stock may be listed at the
time of issuance.  You agree that the Company may place a legend on
the Shares reflecting the foregoing.

     

     4.             Termination
of Employment:  Your
rights in respect of future grants of Awards shall immediately terminate upon
your termination of employment, except that you shall be entitled to receive an
Award determined in accordance with Section 2 accrued through the date of
termination of employment but had not yet been paid.  Unless extended
by the Committee or Board, your right to Awards under this Agreement will
terminate for service periods after December 31, 2010.

     

    5.           Nontransferable. Unless the
Committee provides otherwise, (i) no rights under this Agreement will be
assignable or transferable, and neither you nor your beneficiary will have any
power to anticipate, alienate, dispose of, pledge or encumber any rights under
this Agreement, and (ii) the rights and the benefits of this Agreement may
be exercised and received during your lifetime only by you or your legal
representative.

     

    6.           No
Obligation to Employ.  Nothing
in this Agreement shall confer on you any right to continue in the employ of, or
to continue or establish any other relationship with, the Company, or limit in
any way the right of the Company to terminate your employment or other
relationship at any time, with or without cause.  

     

    7.           Amendment;
Committee Discretion.  The Committee may at any time amend the
terms and conditions set forth in this Agreement; provided
that, notwithstanding the foregoing, no such amendment shall materially
adversely affect your rights and obligations under this Agreement with respect
to amounts that you have already earned and accrued without your prior written
consent (or the consent of your estate, if such consent is obtained after your
death).   Any amendment of this Agreement shall be in writing signed
by an authorized member of the Company.  The Committee shall have full
discretion with respect to any actions to be taken or determinations to be made
in connection with this Agreement, and its determinations shall be final,
binding and conclusive.

    
      
         

      

      
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    8.           Notices.  Any
notice required to be given or delivered to the Company under the terms of this
Agreement shall be in writing and addressed to the Corporate Secretary of the
Company at its principal corporate offices.  Any notice required to be
given or delivered to you shall be in writing and addressed to your address
indicated in your employment file. 

     

    9.           Successors
and Assigns.  The
Company may assign any of its rights under this Agreement. This Agreement shall
be binding upon and inure to the benefit of the successors and assigns of the
Company.  Subject to the restrictions on transfer set forth herein,
this Agreement shall be binding upon you and your heirs, executors,
administrators, legal representatives, successors and assigns.

     

    10.           Governing
Law.  This
Agreement shall be governed by and construed in accordance with the internal
laws of the State of Illinois without regard to that body of law pertaining to
choice of law or conflict of laws.

     

    11.           Regulatory
Matters/Compliance with Laws.  Compensation
under this Agreement is subject to applicable regulations issued by the U.S.
Department of the Treasury and applicable requirements of agreements between the
Company and the U.S. government, as the same are in effect from time to
time.  You may receive compensation under this Agreement only to the
extent that it is consistent with those regulations and requirements.   In
the event that the grant, payment, settlement, or accrual of amounts under this
Award or any term of this Award is restricted or prohibited or otherwise
conflicts with any applicable statute (including, without limitation, the
Emergency Economic Stabilization Act of 2008, as amended by the American
Recovery and Reinvestment Act of 2009) or any applicable regulation or other
guidance thereunder, or any agreement or arrangement with or restriction imposed
by, the United States Department of the Treasury, any bank regulatory agency or
any other governmental agency (a “Governmental Restriction”), in each case, as
determined by Committee in its sole discretion, then the Committee may
unilaterally modify the terms of this Agreement or any Award in such manner as
the Committee determines in its sole discretion to be necessary to avoid such
restriction or prohibition or eliminate such conflict, all without the further
consent of you, such consent being given through your acceptance of any
Award.   In addition, any Shares acquired by you pursuant to this
Agreement or any Award, or any proceeds from the disposition of any such Shares,
shall be subject to forfeiture and return to the Company to the extent required
by a Governmental Restriction.

     

    {Remainder
of Page Intentionally Blank}

    
      
         

      

      
        3

        
          
 

      

      
         

      

    

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

     

    
      	 
      	
              FIRST
      MIDWEST BANCORP, INC.

               

               

               

              By:                                                                

            	 
	 	 
                    
              Name:
      Michael L. Scudder

              Title:
      President and Chief Executive Officer

            	 
	 
      	
               

               

              By:                                                                

            	 
	 
      	
               

              Name:

            	 

    

    
      
         

      

      
        4

        
          
 

      

      
         

      

    

     

    SCHEDULE
A

     

     

    
      	
              Grantee
      Name:

               

            	 
      
	
              Aggregate
      Annual Salary Adjustment Amount:

               

            	 
      
	
              Pay
      Period Amount:

               

            	 
      
	
              Grant
      Date:

               

            	
              Each
      applicable payroll date during the 2010 fiscal
  year.

            

    

     

     

     

    5exhibit101.htm

    

      Exhibit
10.1

      DOMINION
RESOURCES, INC.

      2010
PERFORMANCE GRANT PLAN

      

      

      1.           Purpose.   The
purpose of the 2010 Performance Grant Plan (the “Plan”) is to set forth the
terms of 2010 Performance Grants awarded by Dominion Resources, Inc., a Virginia
Corporation (the “Company”) pursuant to the Dominion Resources, Inc. 2005
Incentive Compensation Plan and any amendments thereto (the “2005 Incentive
Compensation Plan”).  This Plan contains the Performance Goals for the
awards, the Performance Criteria, the target and maximum amounts payable, and
other applicable terms and conditions.

      

      2.           Definitions.  Capitalized
terms used in this Plan not defined in this Section 2 will have the meaning
assigned to such terms in the 2005 Incentive Compensation Plan.

      

      a.           Cause.           For
purposes of this Plan, the term “Cause” will have the meaning assigned to that
term under a Participant’s Employment Continuity Agreement with the Company, as
such Agreement may be amended from time to time.

      

      b.           Date of
Grant.  February 1, 2010.

      

      c.           Disability or
Disabled.  The Committee will determine whether or not a
Disability exists and its determination will be conclusive and binding on the
Participant. To the extent a Performance Grant is subject to Code Section 409A,
the Committee’s determination will be made in accordance with the requirements
of Treasury Regulation Section 1.409A-3(i)(4).

      

      d.           Participant.  An
officer of the Company or a Dominion Company who receives a Performance Grant on
the Date of Grant.

      

      e.           Performance
Period.  The 24-month period beginning on January 1, 2010 and
ending on December 31, 2011.

      

      f.           Retire or
Retirement.  For purposes of this Plan, the term Retire or
Retirement means a voluntary termination of employment on a date when the
Participant is eligible for early or normal retirement benefits under the terms
of the Dominion Pension Plan, or would be eligible if any crediting of deemed
additional years of age or service applicable to the Participant under the
Company’s Benefit Restoration Plan or New Benefit Restoration Plan was applied
under the Dominion Pension Plan, as in effect at the time of the
determination.  Notwithstanding the foregoing, a Participant will not
be treated as eligible for retirement benefits for purposes of this Plan if the
Chief Executive Officer of the Company determines, in his sole discretion, that
the Participant’s retirement is detrimental to the Company.

      

      g.           Target
Amount.  The dollar amount designated in the written notice to
the Participant communicating the Performance Grant.

      

      3.           Performance
Grants.  A Participant will receive a written notice of the
amount designated as the Participant’s Target Amount for the Performance Grant
payable under the terms of this Plan.  The actual payout may be from
0% to 200% of the Target Amount, depending on the achievement of the Performance
Goals.

      

      4.           Performance Achievement and Time of
Payment.  Upon the completion of the Performance Period, the
Committee will determine the Performance Goal achievement of each of the
Performance Criteria described in Section 6.  The Company will then
calculate the amount of each Participant’s Performance Grant based on such
Performance Goal achievement.  Except as provided in Sections 7(b) or
8, payout of Performance Grants will be made as soon as administratively
feasible after the end of the Performance Period.  In no event will
payment be made later than March 15, 2012.

      

      5.           Forfeiture.  Except
as provided in Sections 7 and 8, a Participant's right to payout of a
Performance Grant will be forfeited if the Participant’s employment with the
Company or a Dominion Company terminates before the end of the Performance
Period.

      

      6.           Performance
Goals.  Payout of Performance Grants will be based on the
Performance Goal achievement described in this Section 6 of the Performance
Criteria defined in Exhibit A.

      

      a.           TSR
Performance.  Total Shareholder Return Performance (“TSR
Performance”) will determine fifty percent (50%) of the Target Amount (“TSR
Percentage”).  TSR Performance is defined in Exhibit A.  The
TSR Percentage of the Target Amount that will be paid out, if any, is based on
the following table:

      

             Percentage
Payout

      Relative TSR
Performance                                                               of TSR
Percentage

      Top Quartile - 75% to 100%               150% -
200%

      2nd
Quartile - 50% to 74.9%               100% -
149.9%

      3rd
Quartile - 25% to 49.9%                  50% -
99.9%

      4th
Quartile - below 25%                       
0%

      

      To the
extent that the Company’s TSR Performance ranks in a percentile within the Top,
2nd or 3rd Quartiles of Relative TSR Performance, then the TSR Percentage Payout
will be interpolated between the top and bottom of the Percentage Payout of TSR
Percentage range for that Quartile.  No payment will be made if the
TSR Performance is in the 4th Quartile, except that a payment of 25% of the TSR
Percentage will be made if the Company’s TSR Performance was at least 10% on a
compounded annual basis for the Performance Period.

      

      b.           ROIC
Performance.  Return on Invested Capital Performance (“ROIC
Performance”) will determine fifty percent (50%) of the Target Amount (“ROIC
Percentage”).  ROIC Performance is defined in Exhibit
A.  The ROIC Percentage of the Target Amount that will be paid out, if
any, is based on the following table:

      
         

        
          
            

          

        

         

      

                                                        Percentage
Payout

      ROIC
Performance                                                                      of ROIC
Percentage

      8.20% and above                        200%

      8.10% - 8.19%                         150% -
199.9%

      8.00% - 8.09%                         100% -
149.9%

      7.90% - 7.99%                      50%
-   99.9%

      Below 7.90%                          0%

      

      To the
extent that the Company’s ROIC Performance is greater than 7.90% and less than
8.20%, the ROIC Percentage payout will be interpolated between the top and
bottom of the applicable Percentage Payout of ROIC Percentage range set forth
above.

      

       7.           Retirement,
Termination without Cause, Death or Disability.

      

      a.           Retirement or Involuntary
Termination without Cause.  If a Participant Retires during the
Performance Period or if a Participant’s employment is
involuntarily  terminated by the Company or a Dominion Company without
Cause during the Performance Period and the Participant would have been eligible
for a payment if the Participant had remained employed until the end of the
Performance Period, the Participant will receive a pro-rated payout of the
Participant’s Performance Grant multiplied by a fraction, the numerator of which
is the number of  months from the Date of Grant to the first day of
the calendar month coinciding with or immediately following the date of the
Participant’s termination of employment, and the denominator of which is the
number of  months between the Date of Grant and December 31,
2011.  Payment will be made after the end of the Performance Period at
the time provided in Section 4 based on the Performance Goal achievement
approved by the Committee.  If the Participant Retires, however, no
payment will be made if the Company’s Chief Executive Officer determines, in his
sole discretion, that the Participant’s Retirement is  detrimental to
the Company.

      

      b.           Death or
Disability.  If a Participant dies or becomes Disabled during
the Performance Period, the Participant or, in the event of the Participant’s
death, the Participant’s Beneficiary will receive a lump sum cash payment equal
to the product of (i) and (ii) where

      

      
        	
                 
      

              	
                (i)

              	
                is
      the predicted performance used for determining the compensation cost
      recognized by the Company for the Participant’s Performance Grant for the
      latest financial statement filed with the Company’s Annual Report on Form
      10-K or Quarterly Report on Form 10-Q immediately prior to the event;
      and

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                is
      the fraction, the numerator of which is the number of months from the Date
      of Grant to the first day of the calendar month coinciding with or
      immediately following the date of the Participant’s death or termination
      of employment due to Disability, and the denominator of which is the
      number of months between the Date of Grant and December 31,
      2011.

              

      

      

      Payment
under this paragraph 7(b) will be made as soon as administratively feasible after the date of the
Participant’s death or termination of employment due to Disability; provided,
however, that payment will be made no earlier than six months after the
Participant’s termination other than for death if the Performance Grant is
subject to Code Section 409A and the Participant is a Specified Employee (within
the meaning of Code Section 409A(a)(2)(B)(i)).  In the event of the
Participant’s death, payment will be made to the Participant’s designated
Beneficiary.  If the Participant has not designated a Beneficiary, the
Participant’s spouse, if any, and if none the Participant’s estate shall be the
Beneficiary.

      

      8.           Change of
Control.  Upon a Change of Control, the Participant will
receive a lump sum cash payment equal to the greater of (i) the Target Amount or
(ii) the total payout that would be made at the end of the Performance Period if
the predicted performance used for determining the compensation cost recognized
by the Company for the Participant’s Performance Grant for the latest financial
statement filed with the Company’s Annual Report on Form 10-K or Quarterly
Report on Form 10-Q immediately prior to the Change of Control was the actual
performance for the Performance Period.  Payment will be made as soon
as administratively feasible following the Change of Control date and in no
event later than March 15 following the calendar year in which the Change of
Control date occurs.

      

      9.           Termination for
Cause.  Notwithstanding any provision of this Plan to the
contrary, if the Participant’s employment with the Company is terminated for
Cause, the Participant will forfeit all rights to his or her Performance
Grant.

      

      10.           Claw
Back of Award Payment.

      

      a.           Restatement of Financial
Statements.  If the Company’s financial statements are required
to be restated at any time within a two (2) year period following the end of the
Performance Period as a result of fraud or intentional misconduct, the Committee
may, in its discretion, based on the facts and circumstances surrounding the
restatement, direct the Company to withhold payment, or if payment has been
made, to recover all or a portion of a Performance Grant payout from any
Participant whose conduct directly caused or partially caused the need for the
restatement.

      

      b.           Fraudulent or Intentional
Misconduct.  If the Company determines that a Participant has
engaged in fraudulent or intentional misconduct related to or materially
affecting the Company’s business operations or the Participant’s duties at the
Company, the Committee may, in its discretion, based on the facts and
circumstances surrounding the misconduct, direct the Company to withhold
payment, or if payment has been made, to recover all or a portion of a
Performance Grant payout from the Participant.

      

      c.           Recovery of
Payout.  The Company reserves the right to recover a
Performance Grant payout pursuant to this Section 10 by (i) seeking repayment
from the Participant; (ii) reducing the amount that would otherwise be payable
to the Participant under another Company benefit plan or compensation program to
the extent permitted by applicable law; (iii) withholding future annual and
long-term incentive awards or salary increases; or (iv) taking any combination
of these actions.

      

      d.           No Limitation on
Remedies.   The Company’s right to recover a Performance
Grant payout pursuant to this Section 10 shall be in addition to, and not in
lieu of, actions the Company may take to remedy or discipline a Participant’s
misconduct including, but not limited to, termination of employment or
initiation of a legal action for breach of fiduciary duty.

      

      11.           Miscellaneous.

      

      a.           Nontransferability.  Except
as provided in Sections 7(b) and 8, a Performance Grant is not transferable and
is subject to a substantial risk of forfeiture until the end of the Performance
Period.

      

      b.           No Right to Continued
Employment.  A Performance Grant does not confer upon a
Participant any right with respect to continuance of employment by the Company,
nor will it interfere in any way with the right of the Company to terminate a
Participant's employment at any time.

      

      c.           Tax
Withholding.  The Company will withhold Applicable Withholding
Taxes from the payout of Performance Grants.

      

      d.           Application of Code Section
162(m).  Performance Grants are intended to constitute
“qualified performance-based compensation” within the meaning of section
1.162-27(e) of the Income Tax Regulations.  The Committee will certify
the achievement of the Performance Goals described in Section 6.  To
the maximum extent possible, this Plan will be interpreted and construed in
accordance with this subsection 11(d).

      

      e.           Negative
Discretion.  Pursuant to Section 6(c) of the 2005 Incentive
Compensation Plan, the Committee retains the authority to exercise negative
discretion to reduce payments under this Plan as it deems
appropriate.

      

      f.           Governing
Law.  This Plan shall be governed by the laws of the
Commonwealth of Virginia, without regard to its choice of law
provisions.

      

      g.           Conflicts.  In
the event of any material conflict between the provisions of the 2005 Incentive
Compensation Plan and the provisions of this Plan, the provisions of the 2005
Incentive Compensation Plan will govern.

      

      h.           Participant Bound by
Plan.  By accepting a Performance Grant, a Participant
acknowledges receipt of a copy of this Plan and the 2005 Incentive Compensation
Plan document and Prospectus, which are accessible on the Company Intranet, and
agrees to be bound by all the terms and provisions thereof.

      

      i.           Binding
Effect.   This Plan will be binding upon and inure to the
benefit of the legatees, distributes, and personal representatives of
Participants and any successors of the Company.

      

      
         

        
          
            

          

        

        
          
            EXHIBIT
A

            

          

        

      

      DOMINION
RESOURCES, INC.

      2010
PERFORMANCE GRANT PLAN

      PERFORMANCE
CRITERIA

      

      Total Shareholder
Return

      

      The TSR
Performance will be measured based on where the Company’s total shareholder
return during the Performance Period ranks in relation to the total shareholder
returns of the Comparison Companies during such period.  In general,
Total Shareholder Return consists of the difference between the value of a share
of common stock at the beginning and end of the Performance Period, plus the
value of dividends paid as if reinvested in stock and other appropriate
adjustments for such events as stock splits.  For purposes of TSR
Performance, the total shareholder return of the Company and the Comparison
Companies will be the total shareholder return as calculated by Bloomberg
L.P.  As soon as practicable after the completion of the Performance
Period, the total shareholder returns of the Comparison Companies will be
obtained from Bloomberg L.P. and ranked from highest to lowest.  The
Company’s total shareholder return will then be ranked in terms of which
percentile it would have placed in among the Comparison Companies.

      

      The
Comparison Companies are:

      

      
        	
                Ameren
      Corporation

              	
                FirstEnergy
      Corporation

              
	
                American
      Electric Power Company, Inc.

              	
                FPL
      Group, Inc.

              
	
                Constellation
      Energy Group, Inc.

              	
                Nisource
      Inc.

              
	
                DTE
      Energy Company

              	
                PPL
      Corporation

              
	
                Duke
      Energy Corporation

              	
                Progress
      Energy, Inc.

              
	
                Entergy
      Corporation

              	
                Public
      Service Enterprise Group Incorporated

              
	
                Exelon
      Corporation

              	
                The
      Southern Company

              

      

      

      If a
Comparison Company ceases to be a publicly traded entity, is acquired by another
entity, or is merged out of existence during the Performance Period, the
Comparison Company will be removed from the list of Comparison
Companies.

      

      Return on Invested
Capital

      

      Return on Invested Capital
(ROIC) 

      

      The
following terms are used to calculate ROIC for purposes of the 2010 Performance
Grant:

      

      ROIC means Total Return
divided by Average Invested Capital.  Performance will be calculated
for the two successive fiscal years within the Performance Period, added
together and then divided by two to arrive at an annual average ROIC for the
Performance Period.

      

      Total Return means Operating
Earnings plus After-tax Interest & Related Charges, all determined for the
two successive fiscal years within the Performance Period.

      

      Operating Earnings means
operating earnings as disclosed on the Company’s earnings report furnished on
Form 8-K for the applicable fiscal year.

      

       Average Invested
Capital means the Average Balances for Long & Short-term Debt plus
Preferred Equity plus Common Shareholders’ Equity (as calculated based on the
exclusion of the items described below).  The Average Balances for a
year are calculated by performing the calculation at the end of each month
during the fiscal year plus the last month of the prior fiscal year and then
averaging those amounts over 13 months.

      

      Common Shareholders’ Equity
will be calculated by excluding (i) accumulated other comprehensive income (as
shown on the Company’s financial statements during the Performance Period); and
(ii) impacts from changes in accounting principles that were not prescribed as
of the Date of Grant.

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