Document:

Exhibit 10.1

MIDSOUTH BANCORP, INC.

2007 OMNIBUS INCENTIVE COMPENSATION PLAN

(As Amended and Restated Effective May 23, 2012)

	
Article 1.

	
 

	
Purpose

	
1

	
Article 2.

	
 

	
Administration

	
1

	
2.1

	
 

	
Composition

	
1

	
2.2

	
 

	
Authority

	
1

	
Article 3.

	
 

	
Eligible Participants

	
1

	
Article 4.

	
 

	
Types of Incentives

	
2

	
Article 5.

	
 

	
Shares Subject to the Plan

	
2

	
5.1

	
 

	
Number of Shares

	
2

	
5.2

	
 

	
Type of Common Stock

	
2

	
5.3

	
 

	
Annual Award Limits

	
2

	
Article 6.

	
 

	
Stock Options

	
3

	
6.1

	
 

	
Price

	
3

	
6.2

	
 

	
Number

	
3

	
6.3

	
 

	
Duration and Time for Exercise

	
3

	
6.4

	
 

	
Repurchase

	
3

	
6.5

	
 

	
Manner of Exercise

	
3

	
6.6

	
 

	
Incentive Stock Options

	
4

	
Article 7.

	
 

	
Restricted Stock and Restricted Stock Units

	
4

	
7.1

	
 

	
Grant of Restricted Stock or Restricted Stock Units

	
4

	
7.2

	
 

	
The Restricted Period

	
4

	
7.3

	
 

	
Escrow

	
5

	
7.4

	
 

	
Dividends on Restricted Stock and RSUs

	
5

	
7.5

	
 

	
Forfeiture

	
5

	
7.6

	
 

	
Expiration of Restricted Period

	
5

	
7.7

	
 

	
Rights as a Shareholder

	
5

	
Article 8.

	
 

	
Stock Appreciation Rights

	
5

	
8.1

	
 

	
Number

	
6

	
8.2

	
 

	
Duration and Time for Exercise

	
6

	
8.3

	
 

	
Exercise

	
6

	
8.4

	
 

	
Payment

	
6

i

	
8.5

	
 

	
Stockholder Rights

	
7

	
Article 9.

	
 

	
Performance Shares and Performance Units

	
7

	
9.1

	
 

	
Performance Objectives

	
7

	
9.2

	
 

	
Not a Shareholder

	
7

	
9.3

	
 

	
Dividend Equivalent Payments

	
7

	
Article 10.

	
 

	
Stock Options for Outside Directors

	
7

	
10.1

	
 

	
Eligibility

	
7

	
10.2

	
 

	
Exercisability of Stock Options

	
8

	
10.3

	
 

	
Exercise Price

	
8

	
10.4

	
 

	
Exercise after Termination of Board Service

	
8

	
10.5

	
 

	
Certain Provisions Applicable

	
8

	
Article 11.

	
 

	
General

	
8

	
11.1

	
 

	
Duration

	
8

	
11.2

	
 

	
Transferability of Incentives

	
9

	
11.3

	
 

	
Effect of Termination of Employment or Death

	
9

	
11.4

	
 

	
Additional Condition

	
9

	
11.5

	
 

	
Adjustment

	
10

	
11.6

	
 

	
Incentive Agreements

	
10

	
11.7

	
 

	
Withholding

	
10

	
11.8

	
 

	
No Continued Employment

	
10

	
11.9

	
 

	
Deferral Permitted

	
10

	
11.10

	
 

	
Amendment of the Plan

	
11

	
11.11

	
 

	
Performance Objectives Defined

	
11

	
Article 12.

	
 

	
Change of Control

	
11

	
Article 13.

	
 

	
Definition of Fair Market Value

	
13

	
Article 14.

	
 

	
Non-Qualified Deferred Compensation

	
13

ii

	Article 1.	Purpose.

 

The purpose of the 2007 Omnibus Incentive Compensation Plan (the "Plan") is to increase shareholder value of MidSouth Bancorp, Inc. ("MidSouth") and to advance the interests of it and its subsidiaries (collectively, the "Company") by furnishing a variety of economic incentives (the "Incentives") designed to attract, retain and motivate key employees, officers and directors and to strengthen the mutuality of interests between such persons and shareholders.  Incentives may consist of opportunities to purchase or receive shares of MidSouth common stock (the "Common Stock"), monetary payments, or both, on terms determined under the Plan.  As used in the Plan, the term "subsidiary" means any corporation of which MidSouth owns (directly or indirectly) within the meaning of Section 424(f) of the Internal Revenue Code of 1986, as amended (the "Code"), 50% or more of the total combined voting power of all classes of stock (including any corporation that becomes a subsidiary after the adoption of the Plan).

 

	Article 2.	Administration.

 

2.1            Composition. The Plan shall be administered by the Personnel Committee (the "Committee") of MidSouth's Board of Directors ("Board").  The Committee shall consist of not fewer than two members of the Board, each of whom shall qualify as a "non-employee director" under Rule 16b 3 under the Securities Exchange Act of 1934 (the "1934 Act") and an "outside director" under Section 162(m) of the Code.  Each member of the Committee shall also be independent within the meaning of the rules of the American Stock Exchange ("AMEX").

 

2.2            Authority.  The Committee shall have plenary authority to award Incentives within Plan limits, to interpret the Plan, to establish any rules or regulations relating to the Plan that it determines to be appropriate, to enter into agreements with participants as to the terms of the Incentives ("Incentive Agreements") and to make any other determination that it believes necessary or advisable for the Plan's proper administration.  Its decisions in matters relating to the Plan shall be final and conclusive on the Company and participants.  The Committee may delegate its authority hereunder to the extent provided elsewhere herein.  The Committee shall not have the authority to award Incentives under the Plan to directors of MidSouth who are not also full-time employees of the Company ("Outside Directors"), but Outside Directors may receive awards under the Plan as specifically provided in Article 10 hereof.

 

	Article 3.	Eligible Participants.

 

Key employees and directors of the Company (including officers and directors who are full-time employees and Outside Directors) shall become eligible to receive Incentives under the Plan when designated by the Committee. Employees and directors may be designated individually or by groups or categories, as the Committee deems appropriate.  With respect to participants not subject to Section 16 of the 1934 Act and not "covered employees" under Section 162(m) of the Code, the Committee may delegate its authority to designate participants, to determine the size and type of Incentives to be received by those participants and to determine or modify performance objectives for those participants.

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	Article 4.	Types of Incentives.

 

Incentives may be granted under the Plan in any of the following forms, either individually or in combination:  (a) incentive stock options ("ISO") and non-qualified stock options ("NQO"); (b) stock appreciation rights ("SARs"); (c) restricted stock; (d) performance shares; (e) restricted stock units ("RSUs"); and (f) performance units.

 

	Article 5.	Shares Subject to the Plan.

 

5.1            Number of Shares. Subject to adjustment as provided in Article 11.5, the maximum number of shares of Common Stock available for Incentives under the Plan shall not exceed 525,000 shares of Common Stock. If an Incentive granted hereunder expires or is terminated or canceled prior to exercise or payment, any shares of Common Stock that were issuable thereunder may be issued again under the Plan.  If shares of Common Stock are issued as Incentives under the Plan and thereafter are forfeited or reacquired by the Company pursuant to rights reserved upon issuance thereof, such forfeited and reacquired shares may be issued again under the Plan.  If an Incentive is to be paid in cash by its terms, the Committee need not make a deduction from the shares of Common Stock issuable under the Plan with respect thereto.  If and to the extent that an Incentive may be paid in cash or shares of Common Stock, the total number of shares available for issuance hereunder shall be decreased by the number of shares payable under such Incentive, provided that upon any payment of all or part of such Incentive in cash, the total number of shares available for issuance hereunder shall be increased by the appropriate number of shares represented by the cash payment, as determined in the sole discretion of the Committee.  Additional rules for determining the number of shares granted under the Plan may be made by the Committee, as it deems necessary or appropriate.

 

5.2            Type of Common Stock.  Common Stock issued under the Plan may be authorized and unissued shares or issued shares held as treasury shares.

 

5.3            Annual Award Limits.  Unless and until the Committee determines that an Award to an eligible Employee shall not be designed to qualify as Performance-Based Compensation, the following limits (each an "Annual Award Limit" and, collectively, "Annual Award Limits") shall apply to grants of Awards under this Plan:

 

		a)	Options: The maximum aggregate number of Shares subject to Options granted in any one Plan Year to any one Participant shall be two hundred fifty thousand (250,000).

 

	
 

	b)	SARs: The maximum aggregate number of Shares subject to Stock Appreciation Rights granted in any one Plan Year to any one Participant shall be two hundred fifty thousand (250,000).

 

		c)	Restricted Stock or Restricted Stock Units: The maximum aggregate grant with respect to Awards of Restricted Stock or Restricted Stock Units in any one Plan Year to any one Participant shall be two hundred fifty thousand (250,000) Shares.

 

		d)	Performance Units or Performance Shares: The maximum aggregate number of Performance Units or Performance Shares that a Participant may be awarded in any one Plan Year shall be two hundred fifty thousand (250,000) Shares. As noted in Article 9.3, up to two and one-half Shares (or the cash value of two and one-half Shares) may be issued with respect to a Performance Unit or Performance Share, depending on the level of performance.

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		e)	Cash-Based Awards: The maximum aggregate amount awarded with respect to Cash-Based Awards to any one Participant in any one Plan Year may not exceed one million ($1,000,000) dollars determined as of the date of vesting.

 

		f)	Other Stock-Based Awards. The maximum aggregate grant with respect to Other Stock-Based Awards pursuant to Article 10.2 in any one Plan Year to any one Participant shall be two hundred fifty thousand (250,000) Shares.

	Article 6.	Stock Options.

 

A stock option is a right to purchase shares of Common Stock from MidSouth.  Stock options granted under this Plan may be ISOs or NQOs.  Any option that is designated as a NQO shall not be treated as an ISO.  Each stock option granted by the Committee under this Plan shall be subject to the following terms and conditions:

 

6.1            Price. The exercise price per share shall be determined by the Committee, subject to adjustment under Article 11.5; provided that in no event shall the option price be less than the Fair Market Value of a share of Common Stock on the date of grant.

 

6.2            Number. The number of shares of Common Stock subject to the option shall be determined by the Committee, subject to adjustment under Article 11.5.

 

6.3            Duration and Time for Exercise.  The term and exercisability of each stock option shall be determined by the Committee, which may also accelerate the exercisability of any stock option.

 

6.4            Repurchase. Upon approval of the Committee, MidSouth may repurchase a previously granted stock option from a participant  before it has been exercised by payment to the participant of the amount per share by which the Fair Market Value (as defined in Article 13) of the Common Stock subject to the option on the date of purchase exceeds the exercise price.

 

6.5            Manner of Exercise.  A stock option may be exercised, in whole or in part, by giving written notice to MidSouth specifying the number of shares of Common Stock to be purchased and accompanied by the full purchase price for such shares in United States dollars.  The price may be paid (a) by cash, uncertified or certified check or bank draft, (b) by delivery of shares of Common Stock held by the optionee in payment of all or any part of the option price, which shares shall be valued for this purpose at the Fair Market Value on the date such option is exercised, (c) by delivering a properly executed exercise notice together with irrevocable instructions to a broker approved by MidSouth (with a copy to MidSouth) to promptly deliver to MidSouth the amount of sale or loan proceeds to pay the exercise price, (d) by means of a "net exercise" procedure pursuant to which shares of Common Stock may be withheld from delivery under the stock option or (e) in such other manner as may be authorized from time to time by the Committee.  In the case of delivery of an uncertified check upon exercise of a stock option, no shares shall be issued until the check has been paid in full.  Prior to the issuance of shares of Common Stock upon the exercise of a stock option, a participant shall have no rights as a shareholder.

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6.6            Incentive Stock Options. Notwithstanding anything in the Plan to the contrary, the following additional provisions shall apply to the grant of stock options that are intended to qualify as ISOs (as is defined in Section 422 of the Code):

 

		a)	Any ISO agreement authorized under the Plan shall contain such other provisions as the Committee shall deem advisable, but shall in all events be consistent with and contain or be deemed to contain all provisions required in order to qualify the options as ISOs.

 

	
 

	b)	All ISOs must be granted within ten years from the date on which this Plan was adopted by the Board originally.

 

		c)	Unless sooner exercised, all ISOs shall expire no later than ten years after the date of grant.

 

		d)	The option price for ISOs shall be not less than the Fair Market Value of the Common Stock subject to the option on the date of grant.

 

		e)	No ISO shall be granted to any participant who, at the time such option is granted, would own (within the meaning of Section 422(b)(6) of the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the employer corporation or of its parent or subsidiary corporation unless the option price is not less than 110% of the Fair Market Value of the Common Stock subject to the option on the date of grant and, unless sooner exercised, such options expire no later than five years after the date of grant.

		f)	The aggregate Fair Market Value (determined with respect to each ISO as of the time such ISO is granted) of the Common Stock with respect to which ISO are exercisable for the first time by a participant during any calendar year (under the Plan or any other plan of the Company) shall not exceed $100,000.  To the extent this $100,000 limitation is exceeded, the options that relate to the excess shall be treated as NQOs.

	Article 7.	Restricted Stock and Restricted Stock Units.

 

7.1            Grant of Restricted Stock or Restricted Stock Units.  The Committee may award shares of restricted stock and/or RSUs to such key employees as it determines to be eligible pursuant to Article 3.  An award may be subject to the attainment of specified performance goals or targets, restrictions on transfer, forfeitability provisions and such other terms and conditions as the Committee may determine, subject to the Plan.  To the extent restricted stock and/or a RSU is intended to qualify as performance based compensation under Section 162(m) of the Code, it must meet the additional requirements imposed thereby.

 

7.2            The Restricted Period.  At the time an award of restricted stock is made, the Committee shall establish a period of time during which the transfer of the shares shall be restricted (the "Restricted Period").  Each award of restricted stock may have a different Restricted Period.  A Restricted Period of at least three years is required, except that if vesting of the shares is subject to the attainment of specified performance goals, a Restricted Period of one year or more is permitted.  The expiration of the Restricted Period shall also occur as provided under Article 11.11.

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7.3            Escrow. The participant receiving restricted stock and/or RSUs shall enter into an Incentive Agreement with MidSouth setting forth the conditions of the grant.  Certificates representing shares of restricted stock shall be registered in the name of the participant and deposited with MidSouth, together with a stock power endorsed in blank by the participant.  Each such certificate shall bear a legend in substantially the following form:

 

"The transferability of this certificate and the shares represented by it is subject to the terms (including conditions of forfeiture) of the MidSouth Bancorp 2007 Omnibus Incentive Compensation Plan and an agreement entered into between the registered owner and MidSouth Bancorp, Inc. thereunder.  Copies of the Plan and agreement are on file and available for inspection at the principal office of the Company."

 

7.4            Dividends on Restricted Stock and RSUs. Any and all cash and stock dividends paid with respect to shares of restricted stock and RSUs shall be subject to any restrictions on transfer, forfeitability provisions or reinvestment requirements as the Committee may, in its discretion, prescribe in the Incentive Agreement.

 

7.5            Forfeiture.  If any shares of restricted stock and/or RSUs are forfeited under the Incentive Agreement (including any additional shares that may result from the reinvestment of cash and stock dividends, if so provided in the Incentive Agreement), such forfeited shares shall be surrendered and the certificates canceled.  The participants shall have the same rights and privileges, and be subject to the same forfeiture provisions, with respect to any additional shares received pursuant to Article 11.5 due to a recapitalization, merger or other change in capitalization.

 

7.6            Expiration of Restricted Period.  Upon the expiration or termination of the Restricted Period and the satisfaction of any other conditions prescribed by the Committee or at such earlier time as provided for in Article 7.2 and in the Incentive Agreement, the restrictions applicable to the restricted stock and/or RSU shall lapse and a stock certificate for the number of shares of restricted stock and/or RSU with respect to which the restrictions have lapsed shall be delivered, free of all such restrictions and legends other than those required by law, to the participant or the participant's estate, as the case may be. \

 

7.7            Rights as a Shareholder.  Subject to the Plan and to any restrictions on the receipt of dividends that may be imposed in the Incentive Agreement, each participant receiving restricted stock shall have all the rights of a shareholder with respect to such stock during any period in which such stock is subject to forfeiture and restrictions on transfer, including without limitation, the right to vote such stock.  No participant shall, as a result of receiving a grant of RSUs, have any rights as a stockholder until and then only to the extent the RSUs are settled in shares of Common Stock, unless the Incentive Agreement specifically provides otherwise.

 

	Article 8.	Stock Appreciation Rights.

 

A SAR is a right to receive, without payment to MidSouth, a number of shares of Common Stock, cash or any combination thereof, the amount of which is determined pursuant to the formula set forth in Article 8.4.  A SAR may be granted with respect to any stock option granted under the Plan concurrently with the grant of such option (as to all or any portion of the shares of Common Stock subject to the option) or alone without reference to any related option.  Each SAR granted by the Committee under the Plan shall be subject to the following terms and conditions:

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8.1            Number. The SAR shall relate to such number of shares of Common Stock as shall be determined by the Committee, subject to Article 5.1 and subject to adjustment as provided in Article 11.5.  In the case of a SAR granted with respect to a stock option, the number of shares of Common Stock to which the SAR pertains shall be reduced in the same proportion that the holder of the option exercises the related stock option.

 

8.2            Duration and Time for Exercise.  The term and exercisability of each SAR shall be determined by the Committee.  Unless otherwise provided by the Committee in the Incentive Agreement, each SAR issued in connection with a stock option shall become exercisable at the same time or times, to the same extent and upon the same conditions as the related stock option.  No participant may be granted SARs with respect to an ISO (under this plan or any other plan of the Company) which are exercisable for the first time by the participant during any calendar year for more than $100,000; if the limitation is exceeded, the options that relate to the excess shall be treated as NQOs.  The Committee may in its discretion accelerate the exercisability of any SAR at any time.

 

8.3            Exercise. A SAR may be exercised, in whole or in part, by giving written notice to MidSouth, specifying the number of SARs that the holder wishes to exercise. MidSouth shall, within 30 days of receipt of notice of exercise, deliver to the exercising holder certificates for the shares of Common Stock or cash or both, as determined by the Committee, to which the holder is entitled pursuant to Article 8.4.

 

8.4            Payment.  Subject to the right of the Committee to deliver cash in lieu of shares of Common Stock, the number of shares of Common Stock that shall be issuable upon the exercise of an SAR shall be determined by dividing:

 

		a)	the number of shares as to which the SAR is exercised multiplied by the amount by which the Fair Market Value of the shares of Common Stock subject to the SAR on the Exercise Date exceeds (1) in the case of a SAR related to a stock option, the purchase price of the shares under the option or (2) in the case of a SAR granted alone, without reference to a related stock option, an amount equal to the Fair Market Value of a share of Common Stock on the date of grant, which shall be determined by the Committee at the time of grant, subject to adjustment under Article 11.5); by

 

		b)	the Fair Market Value of a share of Common Stock on the Exercise Date.

 

In lieu of issuing shares of Common Stock upon the exercise of a SAR, the Committee may elect to pay the holder of the SAR cash equal to the Fair Market Value on the Exercise Date of any or all of the shares that otherwise would be issuable.  No fractional shares of Common Stock shall be issued upon the exercise of a SAR; instead, the holder of a SAR shall be entitled to receive a cash adjustment equal to the same fraction of the Fair Market Value of a share of Common Stock on the Exercise Date or to purchase the portion necessary to make a whole share at its Fair Market Value on the Exercise Date.

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8.5            Stockholder Rights.  No participant shall, as a result of receiving a SAR, have any rights as a stockholder until the date the SAR is exercised and then only to the extent that the SAR is settled by the issuance of shares of Common Stock.

 

	Article 9.	Performance Shares and Performance Units.

 

A performance share or performance unit consists of an award that may be paid in shares of Common Stock or in cash, as described below.  The award of performance shares and performance units shall be subject to such terms and conditions as the Committee deems appropriate.

 

9.1            Performance Objectives.  Each performance share and performance unit will be subject to performance objectives for MidSouth or one of its subsidiaries, divisions or departments to be achieved by the end of a specified period.  The Committee shall set performance goals and objectives in its discretion which, depending on the extent to which they are met, will determine the value and/or number of performance units that will be paid out to the participant.  Such performance objectives are provided in Article 11.11.  The number of performance shares and/or performance units awarded shall be determined by the Committee and may be subject to such terms and conditions as it shall determine. If the performance objectives as defined in Article 11.11 are achieved, each participant will be paid (a) a number of shares of Common Stock equal to the number of performance shares initially granted to him or her; (b) a cash payment equal to the Fair Market Value of such number of shares of Common Stock on the date the performance objectives are met or such other date as may be provided by the Committee or (c) a combination of shares of Common Stock and cash, as may be provided by the Committee.    Notwithstanding the foregoing, unless otherwise provided in the Incentive Agreement, the Committee may in its discretion declare the performance objectives achieved or waived.  To the extent a performance share or performance unit is intended to qualify as performance based compensation under Section 162(m) of the Code, it must meet the additional requirements imposed thereby.

 

9.2            Not a Shareholder.  The award of performance shares and performance units to a participant shall not create any rights in such participant as a shareholder of MidSouth, until the payment of shares of Common Stock with respect to an award, at which time such stock shall be considered issued and outstanding.

 

9.3            Dividend Equivalent Payments.  A performance share and performance unit award may be granted in conjunction with dividend equivalent payment rights or other such rights.  Dividend equivalent payments may be made to the participant at the time of the payment of the dividend or issuance of the other right or at the end of the specified performance period or may be deemed to be invested in additional performance shares at the Fair Market Value of a share of Common Stock on the date of payment of the dividend or issuance of the right.

 

	Article 10.	Stock Options for Outside Directors

 

10.1         Eligibility.  Each Outside Director who is serving on the date of adoption of this Plan by the shareholders or who becomes an Outside Director subsequently shall on the later of such date of adoption or the second anniversary of the date he becomes an Outside Director, be eligible to receive NQOs in an amount to be determined by the Committee.

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10.2         Exercisability of Stock Options.  The stock options granted to Outside Directors under this Article 10 shall become exercisable as follows:

 

		a)	20% of the total number of shares covered by the stock options beginning one year after the date of grant;

 

		b)	40% of the total number of shares covered by the stock options beginning two years after the date of grant, less any shares previously issued;

 

		c)	60% of the total number of shares covered by the stock options beginning three years after the date of grant, less any shares previously issued;

 

		d)	80% of the total number of shares covered by the stock options beginning four years after the date of grant, less any shares previously issued;

 

		e)	100% of the total number of shares covered by the stock options beginning five years after the date of grant, less any shares previously issued;

provided, however, that such stock options shall become immediately exercisable under Article 12 hereof and in the event of death, disability causing his removal from the Board, or retirement from the Board on or after reaching age 65.  No stock option granted to an Outside Director under the terms of this Article 10 may be exercised more than ten years after the date of grant.

 

10.3         Exercise Price.  The per share exercise price of stock options granted to Outside Directors shall be equal to 100% of the Fair Market Value of a share of Common Stock on the date of grant.

 

10.4         Exercise after Termination of Board Service.  If an Outside Director ceases to serve on the Board because of death, retirement on or after reaching age 65, or disability causing his removal from the Board, all stock options previously granted that are not then exercisable will expire and the options that are exercisable must be exercised within six months from the date of termination of Board service, but in no event later than ten years after the date of grant.  If an Outside Director ceases to serve on the Board for any other reason, all options not then exercisable will expire and all options that are exercisable must be exercised within 90 days from the date of termination of Board service, but in no event later than ten years after the date of grant.

 

10.5        Certain Provisions Applicable.  Articles 6.4 and 6.5 of this Plan shall apply to options granted under this Article 10.

 

	Article 11.	General.

 

11.1         Duration.  Subject to Article 11.10, the Plan shall remain in effect until all Incentives granted under the Plan have either been satisfied by the issuance of shares of Common Stock or the payment of cash or been terminated under the terms of the Plan and all restrictions imposed on shares of Common Stock in connection with their issuance under the Plan have lapsed.

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11.2         Transferability of Incentives.  Options, SARs and performance shares granted under the Plan may not be transferred except:

 

		a)	by will;

 

		b)	by the laws of descent and distribution; or

 

		c)	in the case of stock options only, if (i) with respect to options under Article 10, permitted by the Board or (ii) with respect to all options other than ISOs, permitted by the Committee and so provided in the Incentive Agreement, (iii) pursuant to a domestic relations order, as defined in the Code, or (iv) with respect to all options other than ISOs, to Immediate Family Members, to a partnership or limited liability company in which Immediate Family Members, or entities in which Immediate Family Members are the sole owners, members or beneficiaries, as appropriate, are the only partners or members or to a trust for the sole benefit of Immediate Family Members.  "Immediate Family Members" means the spouse and natural or adopted children or grandchildren of the participant and his or her spouses.

Stock options or SARs may be exercised during the lifetime of a participant only by the participant, by the participant's guardian or legal representative or, in the case of stock options, by a permitted transferee as provided in (c) above.  Any attempted assignment, transfer, pledge, hypothecation or other disposition of an Incentive, or levy of attachment or similar process upon the Incentive not specifically permitted herein, shall be null and void and without effect.

 

11.3          Effect of Termination of Employment or Death.  If an employee participant ceases to be an employee of the Company for any reason, including death, disability, early retirement or normal retirement, any Incentives may be exercised, shall vest or shall expire at such times as may be determined by the Committee in the Incentive Agreement.

 

11.4          Additional Condition.  Anything in this Plan to the contrary notwithstanding:  (a) MidSouth may, if it determines it necessary or desirable for any reason, at the time of award of any Incentive or the issuance of any shares of Common Stock pursuant to any Incentive, require the recipient, as a condition to the receipt thereof or to the receipt of shares of Common Stock issued pursuant thereto, to deliver to MidSouth a written representation of present intention to acquire the Incentive or the shares of Common Stock issued pursuant thereto for his own account for investment and not for distribution; and (b) if at any time MidSouth further determines, in its sole discretion, that the listing, registration or qualification (or any updating of any such document) of any Incentive or the shares of Common Stock issuable pursuant thereto is necessary on any securities exchange or under any federal or state securities or blue sky law, or that the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection with the award of any Incentive, the issuance of shares of Common Stock pursuant thereto, or the removal of any restrictions imposed on such shares, such Incentive shall not be awarded or such shares of Common Stock shall not be issued or such restrictions shall not be removed, as the case may be, in whole or in part, unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to MidSouth.

9

11.5          Adjustment.  In the event of any merger, consolidation or reorganization of MidSouth with any other corporation or corporations, there shall be substituted for each of the shares of Common Stock then subject to the Plan and outstanding Incentives, including shares subject to restrictions, options, or achievement of performance share objectives, the number and kind of shares of stock or other securities to which the holders of the shares of Common Stock will be entitled pursuant to the transaction.  In the event of any recapitalization, stock dividend, stock split, combination of shares or other change in the Common Stock, the number of shares of Common Stock then subject to the Plan, including shares subject to outstanding Incentives, shall be adjusted in proportion to the change in outstanding shares of Common Stock.  In the event of any such adjustments, the purchase price of any option, the performance objectives of any Incentive, and the shares of Common Stock issuable pursuant to any Incentive shall be adjusted as and to the extent appropriate, in the reasonable discretion of the Committee, to provide participants with the same relative rights before and after such adjustment.

 

11.6          Incentive Agreements.  The terms of each Incentive other than those granted under Article 10 shall be stated in an electronic or written agreement approved by the Committee.

 

11.7         Withholding.  At any time that a participant is required to pay to the Company an amount that is the minimum required to be withheld under the applicable income and employment tax laws in connection with the issuance of shares of Common Stock or payment of cash under the Plan or upon the lapse of restrictions on shares of restricted stock, the participant may, subject to the Committee's right of disapproval, satisfy this obligation in whole or in part by electing (the "Election") to have the Company withhold from the distribution shares of Common Stock having a value equal to the amount required to be withheld.  The value of the shares withheld shall be based on the Fair Market Value of the Common Stock on the date that the amount of tax to be withheld shall be determined (the "Tax Date").

 

Each Election must be made prior to the Tax Date.  The Committee may disapprove of any Election or may suspend or terminate the right to make Elections.  If a participant makes an election under Section 83(b) of the Code with respect to shares of restricted stock, an Election is not permitted to be made with respect to such shares of restricted stock.

 

A participant may also satisfy his or her total tax liability related to an Incentive by delivering shares of Common Stock that are held by the participant.  The value of the shares delivered shall be based on the Fair Market Value of the Common Stock on the Tax Date.

 

The participant will be responsible to pay to the Company in cash, or have withheld from any cash payments, any amounts to be withheld under applicable income and employment tax laws in connection with an Incentive to the extent not paid as described above.

 

11.8          No Continued Employment.  No participant shall have any right, because of his or her participation, to continue in the employ of the Company for any period of time or to any right to continue his or her present or any other rate of compensation.

 

11.9          Deferral Permitted.  Payment of cash or distribution of any shares of Common Stock to which a participant is entitled under any Incentive shall be made as provided in the Incentive Agreement.  Payment (other than pursuant to an option or SAR) may be deferred at the option of the participant if provided in the Incentive Agreement and to the extent permitted pursuant to Section 409A of the Code.

10

11.10       Amendment of the Plan.  The Board may amend or discontinue the Plan at any time; provided, however, that no such amendment or discontinuance shall change or impair in a materially-adverse way, without the consent of the recipient, an Incentive previously granted; and provided further, that an amendment to (i) materially increase the number of shares of Common Stock issuable through the Plan, (ii) materially modify the eligibility requirements, (iii) materially increase the benefits under the Plan or (iv) change the performance conditions or related limits set forth in the Plan for Incentives that are intended to be performance-based compensation under Section 162(m) of the Code, must be approved by the shareholders of MidSouth .

 

11.11      Performance Objectives Defined.  The Plan requires the performance goals to be based on one or more objective business criteria, which may include the following: revenue, earnings (including earnings before interest, taxes, depreciation and amortization), operating income, net income, profit margins, earnings per share, return on assets, return on equity, return on average equity, return on tangible equity, net interest margin, economic value-added, stock price, volume of business, market share, book value, expense management, cash flow, customer satisfaction, credit quality, credit performance, employee retention, compliance standards, and any other industry based criteria utilized in measuring the performance of a financial services company.

 

	Article 12.	Change of Control.

 

		a)	A Change of Control shall mean:

 

		1)	the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the 1934 Act) of beneficial ownership (within the meaning of Rule 13d-3 under the 1934 Act) of more than 25% of the outstanding voting power with respect to the election of directors ("Voting Securities"); provided, however, that for purposes of this subsection (i), no Change of Control will be over as a result of acquisition of Voting Securities:  (a) directly from or by the Company, (b) by any employee benefit plan (or related trust) sponsored or maintained by the Company, or (c) by any corporation pursuant to a transaction that complies with clauses a), b) and c) of subsection (iii) of this Section; or

		2)	individuals who, as of the date this Plan was adopted by the Board of Directors (the "Approval Date"), constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Approval Date whose election, or nomination for election by the shareholders of the Company, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered a member of the Incumbent Board, unless such individual's initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Incumbent Board; or

11

		3)	consummation of a reorganization, merger or consolidation, or sale or other disposition of all or substantially all of the assets of the Company (a "Business Combination"), in each case unless, following such Business Combination,

		i.	all or substantially all of the individuals and entities who were the beneficial owners of the outstanding Common Stock and the Voting Securities of the Company immediately prior to such Business Combination have direct or indirect beneficial ownership, respectively, of more than 50% of the then outstanding shares of common stock, and more than 50% of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, of the corporation resulting from such Business Combination (which, for purposes of this clause) and clauses b) and c), shall include a corporation that as a result of such transaction owns the Company or all or substantially all of the assets of the Company either directly or through one or more subsidiaries), and

		ii.	except to the extent that such ownership existed prior to the Business Combination, no person (excluding any corporation resulting from such Business Combination or any employee benefit plan or related trust of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 25% or more of the then outstanding shares of common stock of the corporation resulting from such Business Combination or 25% or more of the combined voting power of the then outstanding voting securities of such corporation, and

		iii.	at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or

		iv.	approval by the shareholders of the Company of a plan of complete liquidation or dissolution of the Company.

Upon a Change of Control, or immediately prior to the closing of a transaction that will result in a Change of Control if consummated, all outstanding options and SARs granted pursuant to the Plan shall automatically become fully exercisable, all restrictions or limitations on any Incentives shall lapse and all performance criteria and other conditions relating to the payment of Incentives shall be deemed to be achieved at the target level and waived by the Company, without the necessity of action by any person.

12

Upon a Change in Control, the Committee in its sole discretion may terminate outstanding Incentives in consideration of payment to the holder thereof with respect to each share of Common Stock for which the Incentive is then exercisable or payable of the excess, if any, of the Fair Market Value on such date of the shares of Common Stock subject to such Incentive over the exercise price, base value or unpaid purchase price of the Incentive, if any, (provided, however, if the Fair Market Value of the Common Stock does not exceed the exercise price, base value or unpaid purchase price, the Incentive may be cancelled without any payment therefor).  Outstanding Incentives shall not be terminated to the extent written provision is made for the continuance, assumption or substitution of the Incentive by the Company or a successor entity in connection with the Change in Control.

 

The Committee may take such other action with respect to an Incentive as shall be provided in an agreement with the holder thereof.

 

	Article 13.	Definition of Fair Market Value.

 

"Fair Market Value" of Common Stock shall be determined for purposes of this Plan, as follows: (a) if it is listed on an established stock exchange or any automated quotation system that provides sale quotations, the closing sale price for a share on such exchange or quotation system on the applicable date, or if no sale shall have been made on that day, on the next preceding day on which there was a sale; (b) if it is not listed on any exchange or quotation system, but bid and asked prices are quoted and published, the mean between the quoted bid and asked prices on the applicable date, and if bid and asked prices are not available on such day, on the next preceding day on which such prices were available; and (c) if it is not regularly quoted, the fair market value of a share on the applicable date as established by the Committee in good faith.

 

	Article 14.	Non-Qualified Deferred Compensation

 

It is intended that Incentives that are granted under the Plan be exempt from treatment as "non-qualified deferred compensation" subject to Section 409A of the Code.  Towards that end, all Incentives are intended to contain such terms as will qualify the Incentives for one or more exemptions from Section 409A of the Code.  The terms of the Plan and all Incentives shall be construed consistent with such intent.  Notwithstanding the foregoing, however, the Company shall not be liable to any participant or any other person if an Incentive is subject to Section 409A of the Code or the participant or other person is otherwise subject to any additional tax, interest or penalty for failure to comply with Section 409A of the Code.

 

The time and form of payment of an Incentive shall be as set forth in the Incentive Agreement.  If the time of payment is not set forth in the Incentive Agreement, and the Incentive is not otherwise exempt from Section 409A of the Code, then the time of payment shall be within two and one-half months after the end of the later of the calendar year or fiscal year of the Company that employs the participant in which the Incentive becomes vested and no longer subject to a substantial risk of forfeiture within the meaning of Section 409A of the Code.  NQOs and SARs are intended to be exempt stock rights under Section 409A of the Code.  ISOs and restricted stock are exempt by definition from Section 409A of the Code.

 

 

13Exhibit 10.2

 

MIDSOUTH BANK, N.A.

ANNUAL INCENTIVE COMPENSATION PLAN

2013 PLAN YEAR

STRICTLY CONFIDENTIAL

ANNUAL INCENTIVE COMPENSATION PLAN

INTRODUCTION

MidSouth Bank, National Association (the "Company") is a nationally-charted bank founded in 1985 and located in Lafayette, LA.  The Company is willing to provide annual incentive award opportunities for employees eligible to participate in the 2013 Annual Incentive Compensation Plan (the "Plan"), to encourage employees to achieve targeted business objectives of the Company.  These annual incentive awards will provide a payment based upon attainment of these specified goals and objectives.  The objective is aligning the interests of the Company's employees with the interests of the Company and its shareholders in obtaining targeted financial results.

DEFINITIONS

As referenced within this Plan, the following words and phrases shall have the following meanings:

		1.	"Actual Base Salary" means the total base salary paid to the Plan Participant during the Plan Year.

		2.	"Board" means the Board of Directors of the Company as constituted from time to time.

		3.	 "Code" means the Internal Revenue Code of 1986, as amended.

		4.	"Disability" means (a) the employee suffering a sickness, accident, or injury which has been determined by the carrier of any individual or group disability insurance policy covering the employee or if no such policy exists then by the Social Security Administration, to be    a disability rendering the employee totally and permanently disabled. The employee must submit proof to the Plan   Administrator of the carrier's or Social Security Administration's    determination upon the request of the Plan Administrator; or (b)   such definition of Disability as defined by the Secretary of the   Treasury, in which case such definition shall supersede any other   definition of Disability in this Plan and shall control the terms of this   Plan.

		5.	"Effective Date" means January 1, 2013.

		6.	"ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time.

2

		7.	"Plan Administrator" means the plan administrator described in Article VII.

		8.	"Plan Participant" means any current employee of the Company that is designated by the Chief Executive Officer ("CEO"), and approved by the Compensation Committee of the Board as eligible to participate in this Plan.  Newly hired or newly promoted employees must be approved by the CEO to participate in the Plan.  The CEO or Board will determine the level of participation eligible to the new employee.

		10.	"Plan Year" means a twelve month period commencing on January 1 and ending on December 31 of each year. The initial Plan Year shall commence on the Effective Date.

		11.	"Termination of Employment" means the Plan Participant ceases to be employed by the Company for any reason whatsoever; voluntary or involuntary, other than by reason of an approved leave of absence.

	I.	PLAN PURPOSE

The Plan is prospective in design with the utilization of a defined payout formula that is based upon the achievement of a combination of predetermined overall Company and other Plan Participant criteria. This Plan is designed to reward Plan Participants based on the achievement of financial and strategic goals as set forth annually by the Company. The Plan is further intended to reward Plan Participants for their performance while prudently managing risks associated with any activity associated with achievement of specific goals and objectives. Annual performance is important, but must be combined with long-term performance standards to ensure necessary safety and soundness for the Company, its parent company, MidSouth Bancorp, Inc. and its shareholders.

	II.	PARTICIPATION

Eligibility for participation in the Plan shall be limited to employees whose responsibilities, in the judgment of the CEO and Board, have a significant bearing on the success and performance of the Company.

3

The CEO shall submit to the Board a list of employees eligible for participation in the Plan for the upcoming Plan Year, the annual incentive award factors and their weighting, and the incentive ranges and award payouts allocated to each Plan Participant. The Plan will commence on the Effective Date. Each Plan Participant shall be notified of eligibility for participation in the Plan. Plan Participants may be added prior to October 1st of the Plan Year at the discretion of the CEO with Board approval. If a Plan Participant is added, the annual incentive award will be prorated based on the number of months of participation in the Plan, except that new Plan Participants may not be added in the last three (3) months of any Plan Year. Future eligibility will be determined annually by the Board and CEO.

	III.	PLAN YEAR

The period over which performance is measured shall be the Plan Year.

	IV.	GENERAL PLAN DESIGN

The Company recognizes the need to implement a performance-based incentive program for executives, key officers, and other employees as designated by the CEO. In order to align the Plan with safety and soundness principles, the Plan design incorporates a tiered approach with annual incentive awards linked to the achievement of pre-defined goals. The payout awards utilized in the Plan are designed to provide market competitive payout percentages for the achievement of performance-based goals. Award levels pre-established for each Plan Participant and are designated as a percentage of Actual Base Salary. Levels of achievement are generally classified as "Threshold" (performance measure below Target level, but still eligible for incentive award), "Target" (performance goal standard, also referred to as "budget"), and "Maximum" (performance level above Target whereby award payout may be either formulaic or discretionary).

	V.	EARNINGS OF ANNUAL INCENTIVE AWARDS

Annual awards are based on performance criteria that have been pre-established and communicated to Plan Participants. As the Plan develops and priorities change, performance measures, award payout levels and Company goals may change annually.

The annual incentive award is to be in the form of supplemental cash compensation paid on an annual basis. Annual cash awards will be paid using the following schedule. Dependent upon the Bank meeting its net income goal, Plan Participants who have met their predetermined individual goals at threshold, target, or maximum levels will be paid up to one hundred percent (100%) of Annual Incentive Compensation Plan award levels within two and one-half months following the end of the preceding Plan Year. Subsequent payment within this time period is necessary to avoid classifying payments as deferred compensation under IRC Section §409A. In addition to performance achievement, each Plan Participant must have also satisfied qualifying criteria as designated within their Plan Participant worksheet in order to be eligible to receive award payouts.

4

		A.	ANNUAL INCENTIVE AWARD LEVELS

Threshold, target, and maximum award levels, expressed as a percent of Actual Base Salary, have been set for each eligible position at competitive levels.

Percentage payouts will be calculated using either a ratable or fixed percentage approach whereby award payouts are calculated as a proportion of threshold, target, and maximum criteria levels.

		B.	PERFORMANCE STANDARDS

	 	
1.

	
The Plan will provide annual incentive awards to Plan Participants based on overall Company and Plan Participant    performance as follows:

		a.	Company Performance – The overall award for Company performance will be based on the Company's overall success as measured by criteria determined by the Board and CEO. Percentage payouts for overall Company performance will be allocated based on the achievement of this goal, as located in the Appendix of this Plan, for each Plan Participant in the Plan.

		b.	Plan Participant Performance – For all Plan Participants, pre-determined Departmental and/or Individual Participant performance criteria will also be used to determine the Plan Participant's award payout. A percentage of the annual incentive award will be based on achievement of Plan Participant criteria, as indicated in the Plan worksheets. The specific Plan Participant performance objectives will be established at the beginning of the Plan Year.

5

	 	
2.

	
For each performance factor (overall Company and Plan Participant), an appropriate standard of performance must be established with three essential performance points:

		a.	Threshold Performance: the minimum level of performance needed to receive an award.

		b.	Targeted Performance: The budgeted, or expected, level of performance based upon both historical data and management's best judgment of expected performance during the coming performance period.

		c.	Maximum Performance: The level of performance which based upon historical performance and management's judgment would be exceptional or significantly beyond Target Performance levels.

Performance standards are determined by using the Company's performance history, safety and soundness principles, peer data and management's judgment of what reasonable levels can be achieved without taking imprudent and unnecessary risk based on current market conditions. Once the targeted performance is established, the Threshold and Maximum payout levels are calculated. Maximum levels may be subject to discretionary payouts at the preference of the CEO and Board.

As qualifiers to receive awards under this Plan, the bank must meet its net income goal and each Plan Participant must achieve not only satisfactory performance, but also individual qualitative factors as designated within their Plan Participant worksheet. The performance rating will be derived from the current performance management system utilized by the Company. Weighting for each performance criteria (overall Company or Plan Participant) is allocated based on the Plan Participant's level of responsibilities and overall ability to impact results.

6

	VI.	PAYMENT OF AWARDS

		A.	The procedure for calculating the Plan Participant annual incentive award entails the following steps:

		1.	A Plan participant must be an active employee at the time of the award payout in order to be eligible to receive the award  payout.

		2.	Performance level awards are determined relative to specific achievement per Plan Participant. Each individual award payout is calculated using a percent of total Actual Base Salary for the current Plan Year.

		3.	For each Plan participant, the incentive award for each factor is multiplied by the assigned factor weighting.

		4.	The incentive award, expressed in dollars, is then computed for each Plan Participant by calculating the award payout proportion as compared to designated levels and then adding each factor's award result.

		5.	Incentive awards are paid out to each eligible Plan Participant according to the schedule outlined in the Appendix of this Plan Document.

	 	
6.

	
Awards will be paid on an annual basis.

	VII.	PROGRAM ADMINISTRATOR

Administration of the Plan is the joint responsibility of the Board, the CEO, and Human Resources (or others as designated) within the Company.

		A.	RESPONSIBILITIES OF THE BOARD OF DIRECTORS

The Board has the responsibility to approve, amend, or terminate the Plan as necessary per its risk management review process. The actions of the Board shall be final and binding on all parties.

The Board has the responsibility to administer and interpret the Plan. Prior to the beginning of each Plan Year, the Board shall review and revise, if deemed advisable, the operating rules of this Plan for the Plan Year to follow. The operating rules shall include the following:

7

		1.	Deciding if an extraordinary occurrence totally outside of management's influence, be it a windfall or a shortfall, has occurred during the current Plan Year, and whether the figures should be adjusted to neutralize the effects of such events.

		2.	Deciding if an unacceptable performance event has occurred between the end of the Plan year and award payout, such as a major management default of primary responsibilities, or a discovery of fraud, which would be the basis for potentially restructuring or elimination any award payout.

After approval by the Board, management shall, as soon as practical, inform each of the Plan Participants under the Plan of their potential award under the operating rules adopted for the Plan Year to follow.

		B.	RESPONSIBILITIES OF THE CEO

The CEO of the Company administers the program directly and provides liaison to the Board, including the following specific responsibilities:

		1.	Recommend Plan Participant Changes Each Plan Year.

	 	
a.

	
This involves determining if additional employees will participate in the Plan and if any employees are to be removed from participating in the Plan.

		2.	Recommendations for Annual Incentive Awards.

		a.	The CEO will review the objectives and evaluations, adjust guideline awards for performance, and recommend final awards to the Board.

		b.	Make appropriate adjustments on a discretionary basis for any payout inequities.

		3.	Present All Other Appropriate Recommendations to the Board.

		a.	Such recommendations may include changes in the Plan provisions which occur during the life of the Plan.

8

		C.	RESPONSIBILITIES OF HUMAN RESOURCES (or Designee)

Human resources, or designated other, of the Company will act as The Plan Administrator with regard to responsibilities for reporting the performance during the course of the Plan Year, however additional responsibilities may be assigned to the Plan Administrator by the Board or CEO. This performance data is to be made available to the Plan Participants within 60 days from data being available and to the extent possible on a quarterly basis. All necessary reporting to outside auditors for inclusion in annual reporting will be carried out by the CEO or its designee.

	VIII.	TERMINATION OF EMPLOYMENT:

Death of Plan Participant: In the event of death of a Plan Participant during the Plan Year, the incentive award attributable to that individual would be paid to their designated beneficiary(s) in an amount equal to what the Plan Participant would have received at the Target performance level.

Plan Participant Disability: If the Plan Participant becomes disabled during the Plan Year, the accrued amount of incentive award at such time would be payable to Plan Participant.

Termination for Cause or for Good Reason: If any Plan Participant is either terminated for cause or terminates for good reason during the Plan Year, that individual would forfeit any unvested, unpaid or accrued incentive award, whether or not it was earned by such Participant.

Change in Control: If within six months prior to, or within a year after a Change-in-Control, as defined by U. S. Treasury guidelines, the executive is involuntary terminated or if he terminates employment for good reason, any outstanding awards would vest immediately at the target performance level on a prorated basis.

	IX.	AMENDMENTS AND TERMINATION OF PLAN

The Company may amend or terminate this Plan at any time.

9

	X.	CLAIMS AND REVIEW PROCEDURES

	 	A.	Claims Procedure. A Plan Participant or beneficiary ("claimant") who has not received benefits under the Plan that he or she believes should be made shall make a claim for such benefits as follows:

		1.	Initiation – Written Claim. The claimant initiates a claim by submitting to the Plan Administrator a written claim for benefits.

		2.	Timing of Plan Administrator Response. The Plan Administrator shall respond to such claimant within 90 days after receiving the claim. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional 90 days by notifying the claimant in writing, prior to the end of the initial 90-day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision.

		3.	Notice of Decision. If the Plan Administrator denies part or the entire claim, the Plan Administrator shall notify the claimant in writing of such denial. The Plan Administrator shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:

		a.	The specific reasons for the denial;

		b.	A reference to the specific provisions of the Plan on which the denial is based;

		c.	A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed;

		d.	An explanation of the Plan's review procedures and the time limits applicable to such procedures;

		e.	A statement of the claimant's right to bring a civil action under ERISA Section 02(a) following an adverse benefit determination on review.

		B.	Review Procedure.  If the Plan Administrator denies part or all of the claim, the claimant shall have the opportunity for a full and fair review by the Plan Administrator of the denial, as follow:

		1.	Initiation – Written Request. To initiate the review, the claimant, within 60 days after receiving the Plan Administrator's notice of denial, must file with the Plan Administrator a written request for review.

10

		2.	Additional Submissions – Information Access. The claimant shall then have the opportunity to submit written comments, documents, records, and other information relating to the claim. The Plan administrator shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant's claim for benefits.

		3.	Considerations on Review. In considering the review, the Plan Administrator shall take into account all materials and information the claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

		4.	Timing of Plan Administrator Response. The Plan Administrator shall respond in writing to such claimant within 60 days after receiving the request for review. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional 60 days by notifying the claimant in writing, prior to the end of the initial 60-day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision.

		5.	Notice of Decision. The Plan Administrator shall notify the claimant in writing of its decision on review. The Plan Administrator shall write the notification in a manner calculated to be understood by the claimant. The notification shall be set forth:

		a.	The specific reasons for the denial;

		b.	A reference to the specific provisions of the Plan on which the denial is based;

		c.	A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant claim for benefits; and

11

		d.	A statement of the claimant's right to bring a civil action under ERISA Section 502(a).

	XI.	COMMUNICATION OF PLAN TO PLAN PARTICIPANTS

In order for an incentive to produce increases in productivity and results, it is essential that Plan participants receive vital input required to make daily management decisions that should positively affect the Company's growth and profitability. Thus, it is most useful for senior management to make use of periodic reviews of the targets set to measure Plan performance. In other words, the performance targets should become the primary method by which senior management directs the day-to-day operating activities of the management team.

Key communication events include:

		i.	An initial communication to all Plan Participants of the Plan details, including the performance targets set for the initial Plan Year. It is recommended that the Company communicate Plan objectives at least 30 days prior to the beginning of the Plan Year.

		ii.	Communication of new performance targets, Plan procedure changes, etc., at the beginning of each Plan Year.

		iii.	Periodic (quarterly) reviews throughout the Plan Year as part of general senior management staff meetings. These reviews should include a review of performance plan year-to-date and any changes that assure attainment of the Plan objectives.

		iv.	A Plan year-end review of probable Plan results, including an estimate of the Company's performance on each measure/weighted factor.

		v.	A discussion of Plan Participant contribution to the overall team results, as part of the presentation of the annual incentive award.

Finally, it is vital that each Plan Participant be provided sufficient data throughout the Plan Year, so that each Plan Participant can project probable earnings from the Plan. It must be re-emphasized to senior management that specific goals and objectives and the means to accomplishment, as well as the rewards for successful attainment, be communicated in detail to each Plan Participant.

12

	
XII.

	
MISCELLANEOUS

	 	
A.

	
No Guarantee of Employment. This Plan is not an employment policy or contract. It does not give the Plan Participant the right to remain an employee of the Company, nor does it interfere with the Company's right to discharge the Plan Participant. It also does not require the Plan Participant to remain an employee nor interfere with the Plan Participant's right to terminate employment at any time.

	 	
B.

	
Non Transferability. Benefits under this Plan cannot be sold, transferred, assigned, pledged, attached, or encumbered in any manner.

	 	
C.

	
Reorganization. If the Company shall merge into or consolidate with another company, or organize, or sell substantially all of its assets to another company, firm, or person such succeeding or continuing company, firm or person shall succeed to, assume and discharge the obligations of the Company under this Plan.

	 	
D.

	
Tax Withholding. The Company shall withhold any taxes that are required to be withheld from the benefits provided under this Plan.

	 	
E.

	
Applicable Law. The Plan and all rights hereunder shall be governed by the laws of the State of Louisiana, except to the extent preempted by the laws of the United States of America.

	 	
F.

	
Entire Plan. This Plan constitutes the entire Plan between the Company and the Plan Participant as to the subject matter hereof. No rights are granted to the Plan Participant by virtue of this Plan other than those specifically set forth herein.

	 	
G.

	
Designated Fiduciary. The Company shall be the named fiduciary and Plan Administrator under the Plan. The named fiduciary may delegate to others certain aspects of the management and operation responsibilities of the Plan including the employment of advisors and the delegation of ministerial duties to qualified individuals.

13

IN WITNESS WHEREOF, The Company has signed this Plan document as of January 30, 2013.

	
 

	
Company:

	
 

	
 

	
MIDSOUTH BANK, N.A.

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

		
 

	
 

	
 

	
 

	
 

	
 

	
Title:

		
 

14

APPENDIX A

PLAN PARTICIPANT GUIDELINES

MIDSOUTH BANK, N.A.

2013 ANNUAL INCENTIVE COMPENSATION PLAN

	
Tier

	
Incentive Ranges

	
Award Objectives

	
Threshold

	
Target

	
Maximum

	
Bank

	
Regional / Dept.

	
Individual

	
I

	
[  ]%

	
[  ]%

	
[  ]%

	
100%

	
0%

	
0%

	
II-A

	
[  ]%

	
[  ]%

	
[  ]%

	
50%

	
50%

	
0%

	
II-B

	
[  ]%

	
[  ]%

	
[  ]%

	
75%

	
25%

	
0%

	
III-A

	
[  ]%

	
[  ]%

	
[  ]%

	
25%

	
75%

	
0%

	
III-B

	
[  ]%

	
[  ]%

	
[  ]%

	
25%

	
75%

	
0%

	
III-C

	
[  ]%

	
[  ]%

	
[  ]%

	
50%

	
50%

	
0%

	
IV

	
[  ]%

	
[  ]%

	
[  ]%

	
10%

	
40%

	
50%

	
V-A

	
[  ]%

	
[  ]%

	
[  ]%

	
10%

	
40%

	
50%

	
V-B

	
[  ]%

	
[  ]%

	
[  ]%

	
10%

	
40%

	
50%

	
V-C

	
[  ]%

	
[  ]%

	
[  ]%

	
25%

	
75%

	
0%

	
VI-A

	
[  ]%

	
[  ]%

	
[  ]%

	
10%

	
40%

	
50%

	
VI-B

	
[  ]%

	
[  ]%

	
[  ]%

	
20%

	
50%

	
30%

	
 

	
Percent of Salary

	
Weighting of Award

15

BENEFICIARY DESIGNATION

MIDSOUTH BANK, N.A.

2013 ANNUAL INCENTIVE COMPENSATION PLAN

I, _______________________________, designate the following as beneficiary of benefits under the plan payable following my death:

	
Primary:

	
 

	
 

	
	  	
 

	
 

	%
	
 

	
 

	
 

	
		
 

	
 

	%
	
Contingent:

	
 

	
 

	
	  	
 

	
 

	%
	
 

	
 

	
 

	
	   		  	%

Notes:

		·	Please PRINT CLEARLY or TYPE the names of the beneficiaries.

		·	To name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement.

		·	To name your estate as beneficiary, please write "Estate of [your name]".

		·	Be aware that none of the contingent beneficiaries will receive anything unless ALL of the primary beneficiaries predecease you.

I understand that I may change these beneficiary designations by delivering a new written designation to the Plan Administrator, which shall be effective only upon receipt and acknowledgment by the Plan Administrator prior to my death. I further understand that the designations will be automatically revoked if the beneficiaries predeceases me of I have named my spouse as beneficiary and our marriage is subsequently dissolved.

	
Name:

	    	

	
Signature:

	  	
 

	
Date:

	  	
	   	  	  	  	   	   

SPOUSAL CONSENT (Required if Spouse not named beneficiary):

 

I consent to the beneficiary designation above and acknowledge that if I am named beneficiary and our marriage is subsequently dissolved the designation will be automatically revoked.

 

	
Spouse Name: 

	  	
 

	
Signature:

	  	
Date:

	
 

	   	     	 	   	   	   	

Received by the Plan Administrator this ____day of ___________________, 20___.

	
By:

	  	
 

	
 

	
 

	
Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}]]