Document:

Restated Nonqualified Stock Option-Gain Deferral Plan

  Exhibit 10.12
 
 First Midwest Bancorp, Inc.
 Nonqualified Stock Option Gain Deferral Plan
 Master Plan
Document
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Amended and Restated
 Effective January 1, 2008
 
 
 
 
 
 
 
 

 
 
 

 
 

 

TABLE OF CONTENTS

ARTICLE I     GENERAL                                         1

    1.1        Effective Date                                1

    1.2        Purpose                                         1

    1.3        Intent                                         1

ARTICLE II     DEFINITIONS AND USAGE                       2

    2.1        Definitions                                2

    2.2        Usage                                         3

ARTICLE III    ELIGIBILITY AND PARTICIPATION              3

    3.1        Eligibility                                3

    3.2        Participation                                4

    3.3        Deferral Election Procedure              4

    3.4        Stock-for-Stock Payment Method for Options        4

    3.5        Delivery of Stock                                4

ARTICLE IV     PARTICIPANT ACCOUNTS                       5

    4.1        Accounts                                         5

    4.2        Participant Deferrals                       5

    4.3        Investment Procedure                       5

    4.4        Valuation of Accounts                       5

ARTICLE V      PAYMENT OF BENEFITS                       6

    5.1        Entitlement to Benefit Payments              6

    5.2        Commencement of Benefit Payments              6

    5.3        Short-Term Payout                                7

    5.4        Unforeseeable Financial Emergencies              7

    5.5        Withdrawal Election                       7

    5.6        Payments in Stock                                8

ARTICLE VI     PAYMENT OF BENEFIT ON OR AFTER DEATH      8

    6.1        Commencement of Payments After Death      8

    6.2        Designation of Beneficiary                        8

ARTICLE VII    ADMINISTRATION                                 8

    7.1        General                                         8

    7.2        Administrative Rules                         8

    7.3        Duties                                           8

    7.4        Fees                                         9

ARTICLE VIII   CLAIMS PROCEDURE                               9

    8.1        General                                         9

    8.2        Denials                                         9

    8.3        Notice                                         9

    8.4        Appeals Procedure                                9

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    8.5        Review                                        10

ARTICLE IX  MISCELLANEOUS PROVISIONS                      10

    9.1       Amendment                               10

    9.2       Termination                               10

    9.3       No Assignment                                10

    9.4       Incapacity                                10

    9.5       Successors and Assigns                        11

    9.6       Governing Law                                11

    9.7       No Guarantee of Employment                       11

    9.8       Severability                                11

    9.9       Notification of Addresses                       11

ARTICLE X    ADOPTING EMPLOYERS                        11

    10.1     Adoption of Plan                                11

    10.2     Administration                                11

    10.3     Company as Agent                                11

    10.4     Termination                                12

ARTICLE XI   TRUST                                        12

    11.1     Trust                                        12

    11.2     Contributions and Expense                       12

    11.3     Trustee Duties                                12

    11.4     Voting Rights                                12

    11.5     Reversion to the Company                       12

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 FIRST MIDWEST BANCORP, INC.
 NONQUALIFIED STOCK OPTION - GAIN DEFERRAL PLAN
 (As Amended and Restated as of January 1,
2008)
 WHEREAS, First Midwest Bancorp, Inc. ("the Company') has established the First Midwest Bancorp, Inc. Omnibus Stock and Incentive Plan, as Amended and Restated as of January 1, 2008, (the "Stock Plan") for its
Employees; and
 WHEREAS, the Company recognizes the unique qualifications of key employees and the valuable services that they have provided; and
 WHEREAS, the Company desires to increase
Company stock ownership by facilitating the deferral of gains resulting from the exercise of Company nonqualified stock Options;
 NOW, THEREFORE, the Company hereby amends and restates the First Midwest Bancorp, Inc.
Nonqualified Stock Option - Gain Deferral Plan (the "Plan") as hereinafter provided:
 ARTICLE I
 GENERAL
 1.1 Effective Date. The provisions of the Plan
shall be effective as of January 1, 2008 (the "Effective Date"). The rights, if any, of any person whose status as an Employee of the Company and its subsidiaries and affiliates, if any, has terminated shall be determined pursuant to the Plan as in
effect on the date such Employee terminated, unless a subsequently adopted provision of the Plan is made specifically applicable to such person.
 Effective January 1, 2005, except for deferrals relating to a limited number of
Options, no further deferrals shall be permitted under the Plan. The only Options for which deferrals are permitted after December 31, 2004 are those Options that vested before January 1, 2005, were subject to a deferral election as of December 31,
2004 and then only with respect to options exercised on or after March 1, 2006. Distribution of gain deferred on such options shall be governed by the terms of Appendix A. Gain deferrals before January 1, 2005 shall remain subject to the terms of
the Plan.
 1.2 Purpose. The purpose of the Plan is to increase Company stock ownership by facilitating the deferral of gains resulting from the exercise of Company nonqualified stock Options.
 1.3 Intent. With respect to the participation of Employees hereunder, the Plan is intended to be (and shall be construed and administered as) an "employee pension benefit plan" under the provisions of the Employee
Retirement Income Security Act of 1974 ("ERISA") which is unfunded and maintained by the Company or an Employer solely to provide retirement income to a select group of management or highly compensated Employees as such group is described under
section 201(2), 301(a)(3), and 401(a)(1) of ERISA as interpreted by the U.S. Department of Labor. The Plan is not intended to be a plan described in section 401(a) of the Code, or section 3(2)(A) of ERISA. With respect to the participation in the
Plan by nonemployee directors of the Company, the Plan is intended to be a plan of deferred compensation. The
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 obligation of the Company and an Employer to make payments under this
Plan constitutes nothing more than an unsecured promise to make such payments and any property of the Company or an Employer that may be set aside for the payment of benefits under the Plan shall in the event of the Company's or Employer's
bankruptcy or insolvency, remain subject to the claims of the Company's general creditors and the Employer's general creditors, respectively, until such benefits are distributed in accordance with Article V herein.
 ARTICLE
II
 DEFINITIONS AND USAGE
 2.1 Definitions. Wherever used in the Plan, the following words and phrases shall have the meaning set forth below unless the context plainly requires a different meaning:
 (a) "Account" means the account established on behalf of the Participant as described in Section 4.1.
 (b) "Administrator" means the person or persons described in Article VII.
 (c) "Board" means the Board of Directors of the Company.
 (d) "Code" means the Internal Revenue Code of 1986, as amended from time to time.
 (e) "Committee" means the
Compensation Committee of the Board of Directors or such other committee appointed from time to time by the Board of Directors to administer this Plan. The Committee shall consist of two or more members, each of whom shall qualify as a "non-employee
director," as the term (or similar successor term) is defined by Rule 16b-3, and as an "outside director" within the meaning of Code Section 162(m) and regulations thereunder.
 (f) "Company" means First Midwest Bancorp,
Inc. and any successor thereto.
 (g) "Effective Date" means January 1, 2008, the original effective date of the Plan.
 (h) "Employee" means a regular salaried employee (including officers and
directors who are also employees) of the Company or an Employer, or any branch or division thereof.
 (i) "Employer" means the Company and any subsidiary or affiliate of the Company that adopts the Plan for the benefit of
its key Employees with the approval of the Company and in accordance with Article X.
 (j) "ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time.
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 (k) "Fair Market Value" means the average of the highest and lowest prices of the Stock as reported by the consolidated tape of the NASDAQ National Market System on a particular date. In the
event that there are no Stock transactions on such date, the Fair Market Value shall be determined as of the immediately preceding date on which there were Stock transactions.
 (l) "Option" means the right to purchase
Stock at a stated price for a specified period of time granted by the Company to an Employee under the Stock Plan. For purposes of the Plan, an Option shall be a "Nonstatutory (Nonqualified) Stock Option," or "NSO," as provided for under the Stock
Plan.
 (m) "Participant" means an eligible Employee and any nonemployee director of the Company who is participating in the Plan in accordance with Section 3.1.
 (n) "Plan" means the First
Midwest Bancorp, Inc. Nonqualified Stock Option - Gain Deferral Plan.
 (o) "Plan Year" means the calendar year. Notwithstanding the foregoing, the initial Plan Year shall be the period beginning on the Effective Date and
ending December 31, 1997.
 (p) "Profit Shares" means, (A) with respect to any exercise of an Option, the number of shares equal in value to the excess of (i) the Fair Market Value of the shares of Stock purchased on
Option exercise over (ii) the exercise price of the shares of Stock purchased, divided by the Fair Market Value of one share of Stock, and (B) with respect to any Stock Award, the number of shares payable upon the vesting of such Award For purposes
of this definition, Fair Market Value shall be determined as of the date of Option exercise.
 (q) "Stock" means the common stock, $0.01 par value per share, of the Company.
 (r) "Stock Award"
means any award under the Stock Plan, other than an Option, which is payable in Stock, including, but not limited to, restricted stock or performance share awards.
 (s) "Stock Plan" means the First Midwest Bancorp, Inc.
Omnibus Stock and Incentive Plan, as amended from time to time, and any other similar or successor plan established by the Company and under which Employees have been granted nonqualified stock options.
 (t) "Valuation
Date" means the last business day of each Plan Year and such other dates as determined from time to time by the Administrator.
 2.2 Usage. Except where otherwise indicated by the context, any masculine
terminology used herein shall also include the feminine and vice versa, and the definition of any term herein in the singular shall also include the plural and vice versa.
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 ARTICLE III
 ELIGIBILITY AND PARTICIPATION
 3.1 Eligibility. The Committee shall designate from time to time those Employees who shall participate in the Plan; provided, however,
that such Employees are members of a select group of management or highly compensated Employees as such group is described under sections 201(2), 301(a)(3), and 401(a)(1) of ERISA as interpreted by the Department of Labor. In addition, each
nonemployee director of the Company shall also be entitled to participate in the Plan.
 3.2 Participation. An Employee shall commence participation in the Plan as of the date designated by the Committee. A
nonemployee director shall commence participation in the Plan as of the later of the Effective Date or the date service as a nonemployee director commences. The participation of any Participant may be suspended or terminated by the Committee at any
time, but no such suspension or termination shall operate to reduce the balance of the Account of the Participant as of the Valuation Date that precedes or coincides with the date of such suspension or termination without such Participant's consent.
An Employee or nonemployee director shall cease to be a Participant when he terminates employment and service as a director with the Company and all Employers and the balance in his Account is distributed to him or on his behalf. Effective January
1, 2005, participation in the Plan shall be frozen.
 3.3 Deferral Election Procedure.
 (a) Each Participant may execute one or more Deferral Election Forms in the form prescribed by the
Administrator. Each Deferral Election Form shall be treated in accordance with Section 4.2. In order to be effective with respect to the exercise of any Option or payment of any Stock Award, a Deferral Election Form must be executed by the
Participant: (i) in a calendar year preceding the exercise of such Options or vesting of the Stock Award; and (ii) at least six months (or such shorter period as the Committee may approve) prior to the exercise of such Options or vesting of the
Stock Award; provided, however, that a Deferral Election Form executed by a Participant during the first 30 days following the later of the Effective Date of the Plan or the participation commencement date designated by the Committee pursuant to
Section 3.2 for such Participant, shall be effective with respect to the exercise of Options or vesting of the Stock Award after the date of such Deferral Election Form without regard to clauses (i) and (ii). Effective January 1, 2005, Deferral
Election Forms shall not be accepted by the Administrator.
 (b) An Agreement shall be effective no earlier than the date on which it is delivered to the Administrator and shall continue in effect for all succeeding Plan Years
unless otherwise superseded by a subsequent Deferral Election Form (or Deferral Revocation Form).
 3.4 Stock-for-Stock Payment Method for Options. If a Participant has executed a Deferral Election Form, and such
Deferral Election Form is effective under the terms of the Plan with respect to the Option being exercised, then the Option price shall be payable to the Company in full solely by tendering shares of Stock, which have been held for at least six
months prior to the date of the exercise of the Option, having an aggregate Fair Market Value at the time of exercise equal to the total Option price (including, for this purpose, Stock deemed 
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 tendered by affirmation of ownership). Shares of Stock tendered or deemed tendered shall, for purposes of the six month holding rule, be deemed to be newly-held following use to exercise the Option and thus cannot be used for a
subsequent exercise until six months have elapsed.
 3.5 Delivery of Stock. As soon as practicable after (a) receipt of the tendered Stock or the affirmation of ownership of Stock pursuant to Section 3.4 above, or
(b) vesting of the Stock Award, the Company shall deliver to the Trustee, as named pursuant to Article XI of the Plan, a certificate or certificates representing the Profit Shares generated with respect to the exercise of any such Option or vesting
of the Stock Award.
 ARTICLE IV
 PARTICIPANT ACCOUNTS
 4.1 Accounts. The Administrator shall establish and maintain, pursuant to the terms of the Plan, one or more Accounts for each
Participant consisting of amounts credited to such Account pursuant to Section 4.2 below. All amounts which are credited to a Participant's Account shall be credited solely for purposes of accounting and computation, and shall remain assets of the
Company subject to the claims of the Company's general creditors. A Participant shall not have any interest or right in or to such Account at any time.
 4.2 Participant Deferrals. The Administrator shall credit to
a Participant's Account for a Plan Year the amount of Profit Shares resulting from the exercise of an Option or Options or vesting of Stock Awards for which a valid Deferral Election Form is in effect. In order for a Deferral Election Form to be
valid with respect to the exercise of an Option: (a) the Deferral Election Form must have been timely executed in accordance with Section 3.5; and (b) with respect to an Option, (i) the exercise complies with all of the applicable terms of the
Option and of the Stock Plan; and (ii) the Option price is satisfied by a tender of Stock as described in Section 3.4.
 4.3 Investment Procedure. A Participant's Account shall be deemed invested in Stock of the
Company. Any dividends deemed paid on Stock shall be deemed to be reinvested in Stock. In the event of a change in the Stock of the type that results in an adjustment to the Stock pursuant to adjustment provisions set forth in the Stock Plan, then
the Participant's Account shall be deemed invested in Stock as so adjusted; provided, however, to the extent that the adjustment results in a deemed investment in cash and stock, such cash shall be deemed reinvested in Stock (as adjusted); provided,
further, that if such adjustment results in the deemed investment of the Account entirely in cash, then such cash shall be deemed invested in an interest-bearing account and credited with interest quarterly at an annual rate equal to the prime rate
as published in The Wall Street Journal at the beginning of such quarterly period plus 2%, or such other investments as the Committee may permit the Participants to recommend to the trustee of the Trust established pursuant to Article XI below.

4.4 Valuation of Accounts. The value of a Participant's Account shall be determined from time to time by the Administrator in the following manner:
 (a) The income and expense, gains, and
losses, both realized and unrealized, from such deemed investments as are required under Section 4.3 shall be determined by the 
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 Administrator. The amount so determined shall be allocated to the
Account of a Participant proportionately in accordance with the procedures established by the Administrator.
 (b) Each Participant's Account shall be valued as of the Valuation Date of each Plan Year or more frequently as
determined in the sole discretion of the Administrator, and shall again be valued as of the date that a Participant receives a payment under the Plan, in accordance with the procedures established by the Administrator.
 (c) A
Participant's Account shall be reduced by the amount of any benefits distributed to or on behalf of the Participant pursuant to Article V.
 (d) All allocations to and deductions from a Participant's Account under this Section
4.4 shall be deemed to have been made on the applicable Valuation Date in the order of priority set forth in this Section 4.4, even though actually determined at a later date.
 ARTICLE V
 PAYMENT OF BENEFITS
 5.1 Entitlement to Benefit Payments. Upon a Participant's separation from service as an Employee or nonemployee director, as applicable, from the Company and all Employers, the Participant shall be entitled to his
Account Balance payable by the Company or by his Employer at the time and in the manner determined in accordance with Section 5.2. Notwithstanding the foregoing, if a Participant's separation from service is the result of termination "for cause," no
benefits shall be payable to the Participant under the Plan and his Account balance shall be zero. A Participant shall be deemed to have been terminated "for cause" if his employment or service as a director is terminated voluntarily or
involuntarily as a result of the Participant's fraud, misappropriation or embezzlement of Company or Employer funds or property. The Committee shall determine whether a Participant's separation from service is "for cause."
 5.2 Commencement of Benefit Payments. In connection with commencement of participation in the Plan, a Participant shall elect on an election form to receive payment of the Account Balance in a lump sum or in annual or
quarterly installments over a period of up to fifteen years. The Participant may annually change the election to an allowable alternative payout period by submitting a new election form to the Committee, provided that any such election form is
submitted during a calendar year preceding and at least six months (or such shorter period as the Committee may approve) prior to the Participant's separation from service and is accepted by the Committee in its sole discretion; provided, however,
that such advance filing period shall not apply to an election form submitted prior to a Change in Control (as defined in the Stock Plan) which is applicable to a separation from service which occurs on or after the date of such Change in Control.
The election form most recently accepted by the Committee shall govern the payout of the Account Balance. If a Participant does not make any election with respect to the payment of the Participant's Account Balance, then such benefit shall be
payable in five annual installments. The lump sum payment shall be made, or installment payments shall commence, no later than 30 days after the last day of the calendar quarter in which the Participant experiences the separation from service;
provided, however, the Participant may elect to have the payment commencement date delayed for up to five (5) years from the 
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 separation date by submitting an election form to that effect which
is accepted by the Committee at least six months (or such shorter period as the Committee may approve) prior to the separation date; provided, further, if the Participant's Account Balance is less than $25,000 at the time of separation from service,
payment of the Account Balance will be made in a lump sum no later than 30 days after the last day of the calendar quarter in which the separation from service occurs. Notwithstanding the foregoing, the Committee, in its sole discretion, shall
establish the commencement date for the payment of benefits, the deductibility of which may be limited by Code Section 162(m), as the earliest practicable date upon which such limitations would not apply.
 5.3 Short-Term
Payout. In connection with a Deferral Election, a Participant may irrevocably elect to receive a future "Short-Term Payout" from the Plan with respect to the amounts covered by such Deferral Election. The Short-Term Payout shall be a lump
sum payment in an amount that is equal to the Profit Shares covered by the particular Deferral Election plus additional shares credited in the manner provided in Section 4.2 above on that amount, determined at the time that the Short-Term Payout
becomes payable. Subject to the other terms and conditions of this Plan, each Short-Term Payout elected shall be paid out during a 60 day period commencing immediately after the last day of any Plan year designed by the Participant that is at least
three Plan Years after the Plan Year in which the Profit Shares were actually deferred. Notwithstanding the foregoing, the Committee, in its sole discretion may delay the payment of any Short-Term Payment, the deductibility of which may be limited
by Code Section 162(m), to this earliest practicable date upon which such limitations would not apply.
 5.4 Unforeseeable Financial Emergencies. If the Participant experiences an Unforeseeable Financial Emergency,
the Participant may petition the Committee to (i) suspend any Deferral Election made by a Participant and/or (ii) receive a partial or full payout of the Participant's Account Balance from the Plan. The payout shall not exceed the lesser of the
Participant's Account Balance, or the amount reasonably needed to satisfy the Unforeseeable Financial Emergency. If, subject to the sole discretion of the Committee, the petition for a suspension and/or payout is approved, suspension shall take
effect upon the date of approval and any payout shall be made within 60 days of the date of approval. For purposes of this Section 5.4, "Unforeseeable Financial Emergency" shall mean an unanticipated emergency that is caused by an event beyond the
control of the Participant that would result in severe financial hardship to the Participant resulting from (i) a sudden and unexpected illness or accident of the Participant or a dependent of the Participant, (ii) a loss of the Participant's
property due to casualty, or (iii) such other extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant in which distribution is necessary to preserve the value of the benefits of this Plan to
the Participant, all as determined in the sole discretion of the Committee.
 5.5 Withdrawal Election. A Participant (or, after a Participant's death, his or her Beneficiary) may elect, at any time, to withdraw all
of his or her Account Balance, less a withdrawal penalty equal to 10% of such amount (the net amount shall be referred to as the "Withdrawal Amount"). This election can be made at any time, before or after death or separation from service and
whether or not the Participant (or Beneficiary) is in the process of being paid pursuant to an installment payment schedule. No partial withdrawals of the 
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 Withdrawal Amount shall be allowed.
The Participant (or his or her Beneficiary) shall make this election by giving the Committee advance written notice of the election in a form determined from time to time by the Committee. The Participant (or his or her Beneficiary) shall be paid
the Withdrawal Amount within 60 days of his or her election. Once the Withdrawal Amount is paid, the Participant's right to voluntarily submit Deferral Elections under the Plan shall terminate and the Participant shall not be eligible to make any
Deferral Election for the remainder of the Plan Year of the Withdrawal Election and the next Plan Year. Notwithstanding the foregoing, the Committee, in its sole discretion may delay the payment of any Withdrawal Amount, the deductibility of which
may be limited by Code Section 162(m), to this earliest practicable date upon which such limitations would not apply.
 5.6 Payments in Stock. Unless a Participant's Account Balance has been deemed invested in cash
pursuant to an adjustment described in Section 4.2 above, all payments with respect to such Account Balance shall be made in shares of Stock (as such Stock may be adjusted in accordance with Section 4.2).
 ARTICLE VI

PAYMENT OF BENEFIT ON OR AFTER DEATH
 6.1 Commencement of Payments After Death. If a Participant dies before receiving his entire Account Balance, the remainder of the Account otherwise payable with respect to
the Participant shall be paid to the Participant's beneficiary or beneficiaries as a single lump-sum amount within ninety (90) days following the date on which the Administrator is notified of the Participant's death.
 6.2
Designation of Beneficiary. A Participant may, by executing a Beneficiary Designation Form (in the form prescribed by the Administrator) during the Participant's lifetime, designate one or more primary and contingent beneficiaries to
receive his Account balance which may be payable to the Participant hereunder following the Participant's death, and may designate the proportions in which such beneficiaries are to receive such payments. A Participant may change such designations
from time to time, and the last written designation filed with the Administrator prior to the Participant's death shall control. If a Participant fails to specifically designate a beneficiary or, if no designated beneficiary survives the
Participant, payment shall be made by the Administrator in the following order of priority:
 (a) to the Participant's surviving spouse; or if none,
 (b) to the Participant's children, per stirpes; or if
none,
 (c) to the Participant's estate.
 ARTICLE VII
 ADMINISTRATION
 7.1 General. The Administrator shall be the Committee, or such other person or persons as
designated by the Board or the Committee. Except as otherwise specifically provided in the Plan, the Administrator shall be responsible for the administration of the Plan. The Administrator shall be the "named fiduciary" within the meaning of
Section 402(c)(2) of ERISA.
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 7.2 Administrative Rules. The Administrator may adopt such rules of procedure as it deems desirable for the conduct of its
affairs, except to the extent that such rules conflict with the provisions of the Plan.
 7.3 Duties. The Administrator shall have the following rights, powers and duties:
 (a) The decision of
the Administrator in matters within its jurisdiction shall be final, binding and conclusive upon each Employer and upon any other person affected by such decision, subject to the claims procedure hereinafter set forth.
 (b) The
Administrator shall have the duty and authority to interpret and construe the provisions of the Plan, to decide any question which may arise regarding the rights of Employees, Participants and beneficiaries, and the amounts of their respective
interests, to adopt such rules and to exercise such powers as the Administrator may deem necessary for the administration of the Plan, and to exercise any other rights, powers or privileges granted to the Administrator by the terms of the Plan.

(c) The Administrator shall maintain full and complete records of its decisions. Its records shall contain all relevant data pertaining to the Participant and his rights and duties under the Plan. The Administrator shall have the
duty to maintain Account records of all Participants.
 (d) The Administrator shall cause the principal provisions of the Plan to be communicated to the Participants, and a copy of the Plan and other documents shall be available
at the principal office of the Company for inspection by the Participants at reasonable times determined by the Administrator.
 (e) The Administrator shall periodically report to the Committee with respect to the status of the
Plan.
 7.4 Fees. No fee or compensation shall be paid to any person for services as the Administrator.
 ARTICLE VIII
 CLAIMS PROCEDURE
 8.1
General. Any claim for benefits under the Plan shall be filed by the Participant or beneficiary ("claimant") on the form prescribed for such purpose with the Administrator.
 8.2 Denials. If a claim for
benefits under the Plan is wholly or partially denied, notice of the decision shall be furnished to the claimant by the Administrator within a reasonable period of time after receipt of the claim by the Administrator.
 8.3
Notice. Any claimant who is denied a claim for benefits shall be furnished written notice setting forth:
 (a) the specific reason or reasons for the denial;
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(b) specific reference to the pertinent provision of the Plan upon which the denial is based;
 (c) a description of any additional material or information necessary for the claimant to perfect the claim;
and
 (d) an explanation of the claim review procedure under the Plan.
 8.4 Appeals Procedure. In order that a claimant may appeal a denial of a claim, the claimant or the claimant's duly
authorized representative may:
 (a) request a review by written application to the Administrator, or its designate, no later than sixty (60) days after receipt by the claimant of written notification of denial of a claim;

(b) review pertinent documents; and
 (c) submit issues and comments in writing.
 8.5 Review. A decision on review of a denied claim shall be made not later than sixty (60)
days after receipt of a request for review, unless special circumstances require an extension of time for processing, in which case a decision shall be rendered within a reasonable period of time, but not later than one hundred and twenty (120) days
after receipt of a request for review. The decision on review shall be in writing and shall include the specific reason(s) for the decision and the specific reference(s) to the pertinent provisions of the Plan on which the decision is based.
 ARTICLE IX
 MISCELLANEOUS PROVISIONS
 9.1 Amendment. The Company reserves the right to amend the Plan in any manner that it deems advisable by a resolution of the Board or the Committee.
No amendment shall, without the Participant's written consent, affect the amount of the Participant's Account balance at the time the amendment becomes effective or the right of the Participant to receive a distribution of his Account balance.
Notwithstanding the foregoing, following a Change in Control (as defined in the Stock Plan), no amendment or termination of the Plan shall, without the Participant's written consent, have an adverse effect on the computation or amount or entitlement
to benefits of such Participant, including, but not limited to the time or manner of the payment of the Account. For purposes hereof, an "adverse effect" shall include, but not be limited to, any acceleration of the payment of the Account.
 9.2 Termination. The Company reserves the right to terminate the Plan at any time. No termination shall, without the Participant's written consent, affect the amount of the Participant's Account balance prior to the
termination or the right of the Participant to receive a distribution of his Account balance.
 9.3 No Assignment. The Participant shall not have the power to pledge, transfer, assign, anticipate, mortgage or
otherwise encumber or dispose of in advance any interest in 
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 amounts payable hereunder or any of the payments provided for herein, nor shall any interest in amounts payable hereunder or in any
payments be subject to seizure for payments of any debts, judgments, alimony or separate maintenance, or be reached or transferred by operation of law in the event of bankruptcy, insolvency or otherwise.
 9.4
Incapacity. If any person to whom a benefit is payable under the Plan is an infant or if the Administrator determines that any person to whom such benefit is payable is incompetent by reason of physical or mental disability, the
Administrator may cause the payments becoming due to such person to be made to another for his benefit. Payments made pursuant to this Section shall, as to such payment, operate as a complete discharge of the Plan, the Company, each Employer, the
Committee and the Administrator.
 9.5 Successors and Assigns. The provisions of the Plan are binding upon and inure to the benefit of the Company, each Employer, its respective successors and assigns, and the
Participant, his beneficiaries, heirs, legal representatives and assigns.
 9.6 Governing Law. The Plan shall be subject to and construed in accordance with the laws of Illinois to the extent not pre-empted by the
provisions of ERISA.
 9.7 No Guarantee of Employment. Nothing contained in the Plan shall be construed as a contract of employment or deemed to give any Participant the right to be retained in the employ of any
Employer or any equity or other interest in the assets, business or affairs of any Employer. No Participant hereunder shall have a security interest in the assets of any Employer used to make contributions or pay benefits.
 9.8 Severability. If any provision of the Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining provisions of the Plan, but the Plan shall be construed and
enforced as if such illegal or invalid provision had never been included herein.
 9.9 Notification of Addresses. Each Participant and each beneficiary shall file with the Administrator, from time to time, in
writing, the post office address of the Participant, the post office address of each beneficiary, and each change of post office address. Any communication, statement or notice addressed to the last post office address filed with the Administrator
(or if no such address was filed with the Administrator, then to the last post office address of the Participant or beneficiary as shown on the Company's or Employer's records) shall be binding on the Participant and each beneficiary for all
purposes of the Plan and neither the Administrator nor the Company or an Employer shall be obligated to search for or ascertain the whereabouts of any Participant or beneficiary.
 ARTICLE X
 ADOPTING EMPLOYERS
 10.1 Adoption of Plan. The Plan may be adopted by any subsidiary or affiliate of the Company for the benefit of any Employee designated by the Committee to participate herein. Such adoption shall be by resolution of the
adopting Employer's governing body, a copy of which shall be filed with the Company.
 11
 

 
 10.2 Administration. As a condition to participating in the Plan, each
adopting Employer shall be deemed to have authorized the Committee and the Administrator (if different from the Committee) to act for it in all matters arising under or with respect to the Plan and shall comply with such other terms and conditions
as may be imposed by the Administrator.
 10.3 Company as Agent. Each adopting Employer hereby irrevocably grants the Company full and exclusive power to exercise, enforce or waive any right which such Employer
might otherwise have under the terms of the Plan, and each adopting Employer irrevocably appoints the Company as its agent for such purpose.
 10.4 Termination. If authorized by the Company, each adopting Employer
may, upon written notice to the Company, cease to participate in the Plan with respect to its Employees by resolution of its governing body.
 ARTICLE XI
 TRUST
 11.1 Trust. A Trust
has been established under the Plan by the execution of a separate trust agreement entitled the First Midwest Bancorp, Inc. Nonqualified Stock Option - Gain Deferral Trust with one or more trustees. The Trust is intended to be maintained as a
"grantor trust", under section 677 of the Code, for which the Company is the grantor. The assets of the Trust will be held, invested and disposed of by the trustee, in accordance with the terms of the Trust, for the exclusive purpose of providing
Plan benefits for the Participants. Notwithstanding any provision of the Plan or the Trust to the contrary, the assets of each Trust shall at all times be subject to the claims of the grantor's general creditors in the event of the grantor's
insolvency or bankruptcy.
 11.2 Contributions and Expense. The Company, in its sole discretion, and from time to time, may make contributions to the Trust. All benefits under the Plan and expenses chargeable to
the Plan, to the extent not paid directly by the Company, shall be paid from the Trust.
 11.3 Trustee Duties. The powers, duties and responsibilities of the trustee shall be as set forth in the Trust agreement and
nothing contained in the Plan, either expressly or by implication, shall impose any additional powers or duties responsibilities upon the trustee.
 11.4 Voting Rights. Each Participant (or, in the event of his
death, his beneficiary) shall have the right to direct the Trustee as to the manner in which whole and partial shares of Stock allocated to his Account as of the record date are to be voted on each matter brought before an annual or special
stockholders' meeting. Upon timely receipt of such directions, the Trustee shall on each such matter vote as directed the number of shares (including fractional shares) of Stock allocated to such Participant's Account, and the Trustee shall have no
discretion in such matter. The directions received by the Trustee from Participants shall be held by the Trustee in confidence and shall not be divulged or released to any person, including officers or employees of any Employer. The Trustee shall
vote allocated shares for which it has not received direction in the same proportion as directed shares are voted, and shall have no discretion in such matter. Additionally, in the event a tender offer is extended with respect to the 
 12
 

 Stock, each Participant shall have the identical rights to direct the voting of the shares allocated to his Account as detailed in the preceding sentences of this Section 11.4.
 11.5 Reversion to the Company. The Company shall not have any beneficial interest in the Trust and no part of the Trust shall ever revert or be repaid to the Company prior to the payment of all Plan benefits to
Participants, except with respect to amounts allocable to forfeited benefits (including without limitation, any amounts forfeited on account of a termination "for cause") and as otherwise reasonably determined by the Committee not to be necessary to
pay benefits to Participants.
 * * * * *
 IN WITNESS WHEREOF, the Company has caused this restated Plan to be executed by its duly authorized officer effective as of the 1st day of January, 2008.

	 ATTEST/WITNESS:
    /s/ CYNTHIA A.
LANCE                         
 Date: 12/28/07
	 FIRST MIDWEST BANCORP, INC.
 By:   /s/ JOHN M.
O'MEARA                          
Date: 12/28/07

 
 13
 
 Appendix A
 Distribution of Post-2004 Deferrals
The following provisions govern the distribution of amounts deferred upon the
exercise of Options that vested before January 1, 2005, were subject to a deferral election as of December 31, 2004 and exercised on or after March 1, 2006 ("Post-2004 Deferrals"). This Appendix A is intended to comply with the requirements of Code
Section 409A and all regulations issued thereunder.
 A.1.Definitions
 
	"Change in Control" means a "change in control event" as defined in Treasury
Regulation Section 1.409A-3(i)(5).
 
	"Specified Employee" means any Participant who is determined to be a "key employee" (as defined under Code Section 416(i) without regard to paragraph (5) thereof) for the
applicable period, as determined annually by the Committee in accordance with Treas. Reg. Section 1.409A-1(i). In determining whether a Participant is a Specified Employee, the following provisions shall apply:
 	The Committee's identification of the individuals who fall within the definition of "key employee" under Code Section 416(i) (without regard to paragraph (5) thereof) shall be based upon the 12-month period ending on each December
31st (referred to below as the "identification date"). In applying the applicable provisions of Code Section 416(i) to identify such individuals, "compensation" shall be determined in accordance with Treas. Reg. Section 1.415(c)-2(a) without regard
to:
 	Any safe harbor provided in Treas. Reg. Section 1.415(c)-2(d);
 
	Any of the special timing rules provided in Treas. Reg. Section 1.415(c)-2(e); and
 
	Any of the special
rules provided in Treas. Reg. Section 1.415(c)-2(g).

 
	Each Participant who is among the individuals identified as a "key employee" in accordance with part (b) of this Section shall be treated as a Specified Employee for
purposes of this Plan if such Participant experiences a separation from service during the 12-month period that begins on the April 1st following the applicable identification date.

 
	"Unforeseeable Financial
Emergency" shall be determined in accordance with Treasury Regulation 1.409A-3(i)(3).
 Terms used in this Appendix but not defined above shall be defined under the terms of the Plan.

 14
 

 
 A.2.Distribution of Post-2004 Deferrals
 	 Termination. 
 	 Upon a Participant's
separation from service as an Employee or nonemployee director, as applicable, from the Company and all Employers, the Participant shall receive a distribution of his or her Post-2004 Deferrals. Notwithstanding the foregoing, if a Participant's
separation from service is the result of termination "for cause," no benefits shall be payable to the Participant under this Appendix and his Post-2004 Deferrals shall be zero. A Participant shall be deemed to have been terminated "for cause" if his
employment or service as a director is terminated voluntarily or involuntarily as a result of the Participant's fraud, misappropriation or embezzlement of Company or Employer funds or property. The Committee shall determine whether a Participant's
separation from service is "for cause."
 
	 If a Participant experiences a separation from service, payment of Post-2004 Deferrals shall be made, or shall commence, no later than 30 days after the last day of the calendar
quarter in which the Participant experienced the separation from service; provided however, if a Participant is a Specified Employee as of the date of his or her separation from service, the distribution of such Participant's Post-2004 Deferrals
shall be delayed, and the lump sum payment or any installments shall be paid to the Participant beginning in the 30-day period following the calendar quarter in which the date that is six (6) months after the date on which the Participant
experienced a separation from service.
 

 
	 Unforeseeable Financial Emergency. 
 	 If the Participant experiences an Unforeseeable Financial Emergency, the Participant may
petition the Committee to (i) suspend any Deferral Election made by a Participant and/or (ii) receive a partial or full payout of the Participant's Post-2004 Deferrals from the Plan. The payout shall not exceed the lesser of the Participant's
Post-2004 Deferrals, or the amount reasonably needed to satisfy the Unforeseeable Financial Emergency. 
 
	 If, subject to the sole discretion of the Committee, the petition for a suspension and/or payout is approved,
suspension shall take effect upon the date of approval and any payout shall be made within 60 days of the date of approval.
 

 
	 Change in Control. 
 	 A Participant may make
an irrevocable election to receive his or her Post-2004 Deferrals in the form of a lump sum payment in the event that a Change in Control occurs prior to the Participant's separation of service. If a Participant elects not to receive a benefit in
the event a Change in Control occurs, or fails to make an election in connection with his or her commencement of participation in the Plan, the Participant's Post-2004 Deferrals shall be paid in accordance with the other applicable provisions of
this Appendix.
 15
 
 
 
	 Distributions resulting from a Change in Control shall be made during the 30 day period following the date on which the Change in
Control occurred.
 

 
	 Cash-Out. Notwithstanding anything in this Appendix to the contrary, if a Participant's Post-2004 Deferrals are less than the dollar limitation set forth under Code Section 402(g)(1)
($15,500 in 2008, adjusted thereafter by the IRS) at the time of separation from service, payment of the Post-2004 Deferrals will be made in a lump sum no later than 30 days after the last day of the calendar quarter in which the separation from
service occurs. 
 
	 Payment in Stock. Unless a Participant's Post-2004 Deferrals have been deemed invested in cash, all payments with respect to Post-2004 Deferrals shall be made in shares of Stock (as may be
adjusted).
 A.3.Distribution Elections for Post-2004 Deferrals
 	 Distribution of Participants' Post-2004 Deferrals shall be governed by the distribution election form
most recently accepted by the Committee. A Participant may make a one-time change to his or her previous election by submitting a new election form to the Committee or a representative thereof, provided that (a) any such election form will not be
effective for twelve (12) months after the date on which the election form is submitted to the Committee or a representative thereof and (b) the date benefit payment(s) commence to the Participant shall be five (5) years after the date benefits
would have otherwise commenced. Notwithstanding the foregoing, in no event shall an election change cause payment of Post-2004 Deferrals to commence later than the 30-day period following the end of the calendar quarter in which the 10th anniversary
of the Participant's separation from service occurs. If a Participant does not make any election with respect to the payment of the Participant's Post-2004 Deferrals, then such benefit shall be payable in a lump sum.
 
	 Notwithstanding anything in this Appendix to the contrary, effective through December 31, 2008, a Participant may make new distribution elections with respect to Post-2004 Deferrals, provided that (a) any elections made prior to
January 1, 2008 may only apply to benefits that would not otherwise be payable in 2007 and may not cause a benefit to be paid in 2007 that would not otherwise be payable in 2007 and (b) any elections made on or after January 1, 2008 but before
January 1, 2009, may only apply to benefits that would not otherwise be payable in 2008 and may not cause a benefit to be paid in 2008 that would not otherwise be payable in 2008.
 

 

 16Restated Deferred Compensation Plan

  Exhibit 10.13
 First
Midwest Bancorp, Inc.
 Deferred Compensation Plan
 For Nonemployee Directors
 Master Plan Document
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Amended and
Restated
 Effective as of January 1, 2008
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Section 1    Establishment and Purpose                                            1

    1.1       Establishment                                                            1

    1.2       Purpose                                                                    1

    1.3       Coordination with Nonqualified Retirement Plan                            1

    1.4       Effective Date                                                            1

Section 2     Definitions                                                             1

    2.1       Definitions                                                             1

    2.2       Gender and Number                                                     2

Section 3     Eligibility and Participation                                             2

    3.1       Eligibility                                                             2

    3.2       Participation                                                             3

Section 4     Election to Defer                                                     3

    4.1       Deferral Election                                                     3

    4.2       Deferral Period                                                             3

    4.3       Payment Election                                                     3

    4.4       Chang of Control                                                     4

    4.5       Changing Elections                                                     4

    4.6       Deferral Payment                                                     4

    4.7       Payment Upon Death                                                     5

    4.8       Credits                                                                     5

    4.9       Selection of Beneficiary                                             5

Section 5     Deferred Accounts                                                     5

    5.1       Participant Accounts                                                     5

    5.2       Credits and Debits                                                     5

    5.3       Charges Against Accounts                                             5

    5.4       Contractual Obligation                                                     5

    5.5       Unsecured Interest                                                     5

Section 6     Short term payout; Financial Emergency; Withdrawal Election             6

    6.1       Short Term Payout                                                     6

    6.2       Withdrawal Payout/Suspension for Unforeseeable Financial Emergencies     6

Section 7     Forfeiture                                                             6

    7.1       Forfeiture                                                             6

 ii
 

Section 8     Beneficiary Designation                                                     6

    8.1      Beneficiary Designation                                                     6

    8.2      Change of Beneficiary                                                     6

Section 9    Nontransferability                                                     6

    9.1      Nontransferability                                                     6

Section 10    Administration                                                             7

    10.1     Administration                                                             7

    10.2     Finality of Determination                                             7

    10.3     Expenses                                                             7

Section 11    Amendment and Termination                                             7

    11.1     Amendment and Termination                                             7

Section 12    Trust                                                                     7

    12.1     Nonqualified Retirement Trust                                             7

Section 13    Successors                                                             8

    13.1     Successors and Assignees                                             8

Section 14    Subsidiaries                                                             8

    14.1     Subsidiaries                                                             8

APPENDIX A                                                                                   9

 
 iii
 

 FIRST MIDWEST BANCORP, INC.
 DEFERRED COMPENSATION PLAN FOR NONEMPLOYEE DIRECTORS
 (As Amended and
Restated Effective as of January 1, 2008)
 Section 1 Establishment and Purpose.
 1.1 Establishment. First Midwest Bancorp, Inc., a Delaware Corporation, hereby restates its "FIRST MIDWEST BANCORP,
INC. DEFERRED COMPENSATION PLAN FOR NONEMPLOYEE DIRECTORS" (hereinafter called the "Plan").
 1.2 Purpose. The purpose of this Plan is to provide a means whereby a nonemployee member of the Board of Directors of the
Company may defer, to some future period, all or one-half of the fees payable to the Director for services as a Director. The Plan is intended as a means of maximizing the effectiveness and flexibility of the Company's compensation arrangements for
Directors and an aid in attracting and retaining individual of outstanding abilities for service as Directors. The Plan is intended to be an unfunded, nonqualified deferred compensation plan and shall be construed and administered accordingly.

1.3 Coordination with Nonqualified Retirement Plan. It is intended that except to the extent provided otherwise herein, the provisions of this Plan relating to the time and manner of making elections, crediting and debiting
accounts, and the payment thereof shall coordinate with and be governed by the applicable provisions of the Company's Nonqualified Retirement Plan (the "Nonqualified Retirement Plan"), as amended from time to time. Such provisions of the
Nonqualified Retirement Plan shall be applicable to this Plan as if set forth in this Plan in full.
 1.4 Effective Date. The Plan, as amended and restated in this document, is effective as of January 1, 2008. The
distribution of benefits vested as of December 31, 2004 (together with earnings thereon) ("Grandfathered Benefits") shall be governed solely by the terms of Appendix A.
 Section 2 Definitions.
 2.1
Definitions. Whenever used hereinafter, the following terms shall have the meaning set forth below:
 (a) "Board" means the Board of Directors of the Company.
 (b) "Change in Control" means a "change
in control event" as defined in Treasury Regulation Section 1.409A-3(i)(5).
 (c) "Change of Control Election" shall have the meaning set forth in Section 4.4.
 1
 

 
 (d) "Code" shall mean the Internal Revenue Code of 1986, as it may be amended from time to time.
 (e) "Committee" has the meaning set forth in Article 10.
 (f) "Company" means First Midwest Bancorp, Inc., a Delaware Corporation.
 (g) "Deferral Amount" shall mean, as elected by the Director, all or one-half of the Director Fees payable to the Director for a
Year.
 (h) "Deferral Election" shall mean a Director's timely election of a Deferral Amount pursuant to Article 4.1.
 (i) "Deferral Period" shall have the meaning set forth in Section 4.2.
 (j) "Director" means a member of the Board of Directors of First Midwest Bancorp, Inc. and/or a member of the Board of Directors of First Midwest Bank.
 (k) "Director Fees" or "Fees" means any Board or Committee
retainer, attendance, consulting or other fees for services earned while a nonemployee Director. "Directors Fees" or "Fees" shall also mean any compensation, retainer, attendance, consulting or other fees for services earned in connection with
service on the board of directors of any subsidiary of the Company.
 (l) "Election Form" has the meaning set forth in Section 4.1.
 (m) "Payment Election" has the meaning set forth in Section
4.3.
 (n) "Unforeseeable Financial Emergency" shall be determined in accordance with Treasury Regulation 1.409A-3(i)(3).
 (o) "Year" means the fiscal year of the Company ending December 31.
 2.2 Gender and Number. Except when otherwise indicated by the context, any masculine terminology, when used in the Plan, shall also include the feminine gender, and the definition of any term herein in the singular shall also
include the plural.
 Section 3 Eligibility and Participation.
 3.1 Eligibility. Any Director who is not an employee of the Company or any of its subsidiaries on the date any Director Fees to be
deferred under this Plan are earned, shall be eligible to participate in the Plan (each an "Eligible Director"). Any Director who is an employee of the Company or any of its subsidiaries, shall become an Eligible Director as of the first day upon
which he or she ceases to be an employee of the Company and/or its subsidiaries.
 2
 

 
 3.2 Participation. An Eligible Director may become a participant
("Participant") in the Plan by making a Deferral Election pursuant to Section 4.1 hereof. If at any time a Participant no longer meets the requirements for participation in this Plan, he or she shall become an inactive Participant, retaining
all the rights described under this Plan, except the right to make any further deferrals unless and until the time that he or she again becomes eligible to participate in the Plan and an active Participant.
 Section 4 Election
to Defer.
 4.1 Deferral Election. Each Year, an Eligible Director may elect to have the payment of all or one-half of the Director Fees payable to the Director for such Year deferred pursuant to the terms of the Plan.
Each Deferral Election shall be made on a deferral election form to be provided by the Company ("Election Form") and shall specify the Deferral Amount. Such election must be made by the last day of the Year preceding the Year during which the
services as a Director are to be performed; provided however, that a Director who becomes an Eligible Director after the first day of the Year may, within 30 days of the date he or she becomes an Eligible Director, make an election which
relates to Director Fees otherwise payable to the Director during the Year when made, provided such Fees relate to future services. Such election will be filed with the Secretary of the Company, or such other person designated by the Company, and
continue in force with respect to subsequent Years, until timely terminated or modified by the Director in writing with respect to Fees that relate to services to be performed and are payable in the future. Any revocation or modification of a
Deferral Election will become effective on the first day of the Year following the Year in which such revocation or modification was properly submitted to the Committee or its designated agent.
 The Election Form for an
Eligible Director's initial Deferral Election also shall specify the Director's Deferral Period and Payment Election. Such elections will continue to be in force with respect to subsequent Years, unless and until modified in accordance with the
provisions of Section 4.5.
 4.2 Deferral Period. If the Participant defers any amounts pursuant to Section 4.1, the Participant shall select the deferral period ("Deferral Period") and the payment period to
begin subsequent to one of the following dates:
 (a) The date the Director ceases to be a Director, or
 (b) A date specified by the Director.
 If timely elected by the Director,
pursuant to Section 4.1 above, such payment commencement date may be delayed for up to five (5) years from the applicable date described in (a) or (b) above.
 4.3 Payment Election. If a Participant defers any
amounts pursuant to Section 4.1, the Participant also shall elect the manner in which the deferred amount will be paid ("Payment Election"). The Participant shall choose to have payment made either in a lump sum or in a specified number of
approximately equal annual or quarterly installments over a period not to exceed fifteen years. Such election must be made by 
 3
 

 last day of the Year preceding the Year during
which Deferrals will begin to be made; provided however, that a Director who becomes an Eligible Director after the first day of the Year may, within 30 days of the date he or she becomes an Eligible Director, make such election.
 4.4 Change of Control. Notwithstanding a Director's Deferral Election made in accordance with Section 4.1, including the Deferral Period and Payment Election selected in accordance with Sections 4.2 and
4.3, a Participant, in connection with his or her commencement of participation in the Plan, may make an irrevocable election to receive all amounts deferred under the Plan in the form of a lump sum payment in the event that a Change in
Control occurs ("Change of Control Election"). If a Participant does not make a Change of Control Election, or fails to make a timely Change of Control Election in connection with his or her commencement of participation in the Plan, all amounts
deferred under the Plan shall be paid in accordance with the Director's Deferral Election made in accordance with Section 4.1 including the Deferral Period and Payment Election selected in accordance with Sections 4.2 and 4.3
and the other applicable provisions of the Plan.
 4.5 Changing Elections. 
 (a) Subject to (b) immediately below, a Participant may make a one-time change to his or her initial Deferral Election
made in accordance with Section 4.1 with respect to Section 4.2 (Deferral Period) and/or 4.3 (Payment Election) by submitting a new Election Form to the Secretary of the Company, provided that: (i) any such Election Form
will not be effective for twelve (12) months after the date on which the Election Form is submitted to the Secretary of the Company; (ii) the date benefit payment(s) commence to the Participant shall be five (5) years after the date benefits would
have otherwise commenced; and (iii) new election must be made at least twelve (12) months prior to the date payment(s) would otherwise have started.
 (b) Notwithstanding the foregoing, in no event shall a change to a Director's
previous Deferral Election cause payments to commence later than the 30-day period following the end of the calendar quarter in which the 10th anniversary of the date a Director would have otherwise commenced receipt of benefits.
 (c) Notwithstanding anything in this Plan to the contrary, effective through December 31, 2008, a Participant may make new Deferral Elections with respect to benefits other than the Grandfathered Benefits; provided that, any
new Deferral Election may not accelerate payments into, or delay payments out of the year in which such change is made. For example, any new Deferral Election made during the 2008 Year may not accelerate payments into or delay payments out of the
2008 Year.
 4.6 Deferral Payment. The first installment (or the single payment if the Director has so elected) shall be paid on the first day of each calendar quarter or year, as 
 4
 

 the case may be, following the commencement date applicable under Section 4.1 above, until the entire amount credited to the Director's account shall have been paid.
 Notwithstanding the foregoing, if the amounts deferred by the Director after December 31, 2004 (including any credits or debits thereon, calculated and applied in accordance with the applicable provision of the Nonqualified
Retirement Plan) are, at the time payments are to commence, less than the dollar limitation in effect under Code Section 402(g), then the entire amount shall be paid in a single lump sum.
 4.7 Payment Upon Death.
Notwithstanding a Director's Deferral Election made in accordance with Section 4.1, including the Deferral Period and Payment Election selected in accordance with Sections 4.2 and 4.3, if a Director should die before any or full
payment of all amounts, the balance in his or her deferred account, together with credits computed to date of payout, shall be paid to the Director's estate or to a beneficiary or beneficiaries designated in writing by the Director. The amount
payable shall be paid in a single lump sum or quarterly or annual installments as elected by the Director.
 4.8 Credits. Credits shall be applied to amounts deferred under the Plan in accordance with the provisions
stated in Section 5.2 hereof.
 4.9 Selection of Beneficiary. At the time of deferral, the Participant shall designate a beneficiary or beneficiaries in accordance with the provisions stated in Section
8.1.
 Section 5 Deferred Accounts.
 5.1 Participant Accounts. The Company shall establish and maintain a bookkeeping account for each deferral made by a Participant. This account shall be
credited as of the date of the deferral with the amount deferred.
 5.2 Credits and Debits. The Company shall provide the opportunity for credits to be earned on, and debits to be deducted from any deferred amounts in a
Participant's account, including remaining balances in an account during payout. The amount and timing of the crediting shall be made in the same manner as is done under the Crediting/Debiting of Account Balances provisions of the Nonqualified
Retirement Plan.
 5.3 Charges Against Accounts. There shall be charged against each Participant's account any payments made to the Participant or to his or her beneficiary in accordance with Sections 4.6,
4.7 and 6.1.
 5.4 Contractual Obligation. It is intended that the Company is under a contractual obligation to make payments from a Participant's account when due. However, this Plan shall not be funded in
any respect. Payment of account balances shall be made out of the general funds of the Company.
 5.5 Unsecured Interest. No Participant or beneficiary shall have any interest whatsoever in any specific asset of the
Company. To the extent that any person acquires 
 5
 

 a right to receive payments under this Plan, such right shall be no greater than the right of any unsecured general creditor of
the Company.
 Section 6 Short term payout; Financial Emergency; Withdrawal Election.
 6.1 Short Term Payout. In connection with a Deferral Election with respect to a Year, a Director may irrevocably
elect to receive a future Short Term Payout with respect to such amount. The election and payment of such Short Term Payout amount shall be made in the same manner applicable to Short Term Payouts under the Nonqualified Retirement Plan. 
 6.2 Withdrawal Payout/Suspension for Unforeseeable Financial Emergencies. If a Director experiences an Unforeseeable Financial Emergency, the Director may petition the Board to suspend any deferral election then in place
and/or receive a full or partial payout from the Plan. The determination of whether the Director has experienced an Unforeseeable Financial Emergency and the actions taken with respect thereto shall be made by the Board in the same manner as
applicable to Unforeseeable Financial Emergencies under the Nonqualified Retirement Plan.
 Section 7 Forfeiture.
 7.1 Forfeiture. Amounts deferred or payable under the Plan are not forfeitable under
any circumstances.
 Section 8 Beneficiary Designation.
 8.1 Beneficiary Designation. A Participant shall designate a beneficiary or beneficiaries who, upon his or her death, are to receive the
distributions that otherwise would have been paid to him or her. All designations shall be in writing and shall be effective only if and then delivered to the Secretary of the Company during the lifetime of the Participant. If a Participant
designates a beneficiary without providing in the designation that the beneficiary must be living at the time of such distribution, the designation shall vest in the beneficiary all of the distributions whether payable before or after the
beneficiary's death, and any distributions remaining upon the beneficiary's death shall be made to the beneficiary's estate.
 8.2 Change of Beneficiary. A Participant may, from time to time during his or her lifetime,
change his or her beneficiary or beneficiaries by a written instrument delivered to the Secretary of the Company. In the event a Participant shall not designate a beneficiary or beneficiaries as aforesaid, or if for any reason such designation shall
be ineffective, in whole or in part, the distribution that otherwise would have been paid to such Participant shall be paid to his or her estate and, in such event, the term "beneficiary" shall include his or her estate. 
 6

 
 Section 9 Nontransferability.
 9.1 Nontransferability. Neither the Director nor any other person shall have the right to sell, gift, transfer, assign,
or hypothecate the right to receive payments under this Plan in any manner whatsoever.
 Section 10 Administration.
 10.1 Administration. This Plan shall be administered by a committee ("Committee")
which shall consist of the Board, or such committee as the Board shall appoint. Members of the Committee may be Participants under this Plan. The Committee shall also have the discretion and authority to (i) make, amend, interpret, and enforce all
appropriate rules and regulations for the administration of this Plan and (ii) decide or resolve any and all questions including interpretations of this Plan, as may arise in connection with the Plan. Any individual serving on the Committee who is a
Participant shall not vote or act on any matter relating solely to himself or herself. When making a determination or calculation, the Committee shall be entitled to rely on information furnished by a Participant or the Company.
 In the administration of this Plan, the Committee may, from time to time, employ agents and delegate to them such administrative duties as it sees fit (including acting through a duly appointed representative) and may from time
 to time consult with counsel who may be counsel to the Company.
 10.2 Finality of Determination. The determination of the Committee as to any disputed questions arising under this Plan, including questions or
construction and interpretation, shall be final, binding, and conclusive upon all persons.
 10.3 Expenses. The expenses of administering the Plan shall be borne by the Company.
 Section 11 Amendment
and Termination.
 11.1 Amendment and Termination. The Company expects to continue the Plan indefinitely, but since future conditions affecting the Company cannot be anticipated or foreseen, the Company must necessarily
and does hereby reserve the right to amend, modify, or terminate the Plan at any time by action of the Board or the Committee, including, but not limited to, by amendment of those provisions of the Nonqualified Retirement Plan which are applicable
hereto as if set forth herein in their entirety. Notwithstanding the foregoing, the provisions, restrictions and limitations applicable to the Company's ability to amend, modify or terminate the Nonqualified Retirement Plan as set forth in the
Nonqualified Retirement Plan shall apply to this Plan.
 Section 12 Trust.
 12.1 Nonqualified Retirement Trust. The Company has established a grantor trust (the "Trust") in connection with the
Nonqualified Retirement Plan for the purpose of assisting the Company in the administration and payment of amounts under the Nonqualified Retirement Plan and this Plan. The Company shall at least annually 
 7
 

 transfer over to the Nonqualified Retirement Trust such assets as the Company determines, in its sole discretion, are necessary to provide, on a present value basis, for its future liabilities created with
respect to this Plan. The provisions of this Plan shall govern the right of a Director (or, after the Director's death, his or her beneficiaries) to receive distributions pursuant to the Plan. The provisions of the Trust shall govern the rights of
the Company, directors, beneficiaries and creditors of the Company to the assets transferred to the Trust. The Company shall at all times remain liable to carry out its obligations under the Plan.
 Section 13 Successors.
 13.1 Successors and Assignees. The provisions of this Plan shall be binding upon and inure to the benefit of the Company and its successors and its assigns and the director and the director's beneficiaries. The Company shall
require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all of the business assets of the Company, expressly and unconditionally to assume and agree to perform the
obligations of the Company under this Plan, in the same manner and to the same extends that the Company would be required to perform if no such successor or assignee had taken place. In addition, the Company shall require the ultimate parent entity
or any successor or assignee corporations or entities to expressly guaranty the prompt performance by such successor or assignee.
 Section 14 SUBSIDIARIES.
 14.1 Subsidiaries. If a Participant
defers any amounts pursuant to Section 4.1 which are Director Fees earned with respect to service as a member of the board of directors of a subsidiary of the Company, then the provisions of this Plan relating to the establishment of a
Deferred Account and the crediting and payment of amounts with respect thereto shall apply to such subsidiary as if the subsidiary was the Company hereunder. Notwithstanding the foregoing, the Plan shall be administered and may be amended and/or
terminated by the Board or the Committee.
 IN WITNESS WHEREOF, the Company has caused this restated Plan to be executed by its duly authorized officer effective as of the _28th_ day of _December__, 2007.

	 ATTEST/WITNESS:
 
 
 
   /s/ CYNTHIA A.
LANCE                         
 Corporate Secretary
 Date: ___________12/28__, 2007	 FIRST MIDWEST BANCORP, INC.
 
 
 By:   /s/ JOHN M.
O'MEARA                         
 President and Chief Executive Officer
 Date:
__________12/28__, 2007

	 	 

 
 8
 

 Appendix A
 The following provisions govern the distribution of benefits
that were earned and vested as of December 31, 2004 (including any earnings thereon) ("Grandfathered Benefits"). The provisions of this Appendix A are intended to be the same as the Plan provisions effective as of December 31, 2004 and should
be interpreted accordingly.
 A.1Definitions.
 

	
"Unforeseeable Financial Emergency" shall mean an unanticipated emergency that is caused by an event beyond the control of the Participant that would result in severe financial hardship to the Participant resulting from
(i) a sudden and unexpected illness or accident of the Participant or a dependent of the Participant, (ii) a loss of the Participant's property due to casualty, or (iii) such other extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant for which distribution is necessary to preserve the value of the benefits of this Plan to the Participant, all as determined in the sole discretion of the Committee.

Terms used
in this Appendix but not defined above shall be defined under the terms of the Plan in effect as of December 31, 2004.
 A.2Payment of Benefits.
 
	
Withdrawal Payout/Suspension for Unforeseeable Financial Emergencies. If a Director experiences an Unforeseeable Financial Emergency, the Director may petition the Board to suspend any deferral election then in place
and/or receive a full or partial payout from the Plan. The determination of whether the Director has experienced an Unforeseeable Financial Emergency and the actions taken with respect thereto shall be made by the Board in the same manner as
applicable to Unforeseeable Financial Emergencies under the Nonqualified Retirement Plan.

	
Payment Events. Subject to (d) and (e) below, the payment of Grandfathered Benefits shall be made in accordance with each Director's Election.

	
Changing Payment Election. The Participant may make and may revoke in writing his or her election with respect to the form of payment (and, so long as he or she is a Director, the commencement thereof) at any time not
later than the earlier of (a) December 31 prior to the date such payment is to commence or (b) the date which is six months (or such shorter period as the Board of Directors may approve) prior to the date such payment is to commence; provided,
however, that an election in effect upon the expiration of such election period shall be irrevocable. Notwithstanding the foregoing, if a Director's Grandfathered Benefits at the time payments are to commence is less than $25,000, then the entire
amount shall be paid in a single lump sum.

	
Withdrawal Election. A Director (or, after a Director's death, his or her beneficiary) may elect, at any time, to withdraw all of his or her amounts credited under the Plan, calculated as if the date for commencement of
payments had occurred as of the day of the election, less a withdrawal penalty equal to 10% of such amount. The timing and manner of any 

9
 

 such election and payment of such
withdrawal shall be made in the same manner as applicable to similar withdrawals under the Nonqualified Retirement Plan.
 
	
Payment upon Death. Notwithstanding the election made in Section 4.1, if a Director should die before any or full payment of all amounts, the balance in his or her deferred account, together with growth additions
computed to date of payout, shall be paid to the Director's estate or to a beneficiary or beneficiaries designated in writing by the Director. The amount payable shall be paid in a lump sum or quarterly or annual installments as elected by the
Director. Notwithstanding the foregoing, if a Director's Grandfathered Benefits at the time payments are to commence is less $25,000, then the entire amount shall be paid in a single lump sum.

10

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