Document:

AXE 2014 10-K EX10.12

EXHIBIT 10.12

ANIXTER INC. EXCESS BENEFIT PLAN
AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2014

Anixter Inc. (the “Company”) established the Anixter Bros., Inc. Excess Benefit Plan effective as
of August 1, 1985, which was in 2009 restated and renamed to Anixter Inc. Excess Benefit Plan (the “Excess Plan”).  The purpose of the Excess Plan is to provide the benefits which designated participants in the Anixter Inc. Pension Plan (the “Pension Plan”) would have received under the Pension Plan except for the maximum benefit limitations prescribed by the Pension Plan and the Internal Revenue Code of 1986, as amended (the “Code”).

Prior to 2011, only certain designated employees who are entitled to receive a pension benefit
under the benefit formula set forth in Section 7.01(a) of the Pension Plan could participate in the Excess Plan. Effective January 1, 2011, certain designated employees who are entitled to receive a pension benefit under the benefit formula set forth in Section 7.01(c) of the Pension Plan may also participate in the Excess Plan.

		
	1.
	Definitions:

		
	(a)
	“Actuarial Equivalent” shall have the meaning ascribed in Section 1.01 of the Pension Plan.

		
	(b)
	“Beneficiary”

		
	(i)
	shall have the meaning ascribed in Section 1.03 of the Pension Plan, with respect to (A) the FAP Benefit of a Participant who (I) terminated employment with the Company on or before December 31, 2004, (II) was fully vested in the Excess Plan and (III) received no further accruals after that date, or (B) a Participant’s HPRA Benefit; and

		
	(ii)
	shall mean only (A)  a  surviving spouse, or  (B) a  same-sex domestic partner who (I) has entered into a valid domestic partnership with the Participant  pursuant  to  state  or  local  law  or  (II)  is  identified  by the Participant  as  his  domestic  partner  on  an  affidavit  provided  to the Company in accordance with procedures and requirements established by the  Committee, with  respect  to  the  FAP  Benefit  of  a  Participant  not described in Section 1(b)(i) above.

		
	(c)
	“Benefit Limitations” shall mean the limitations prescribed by Sections 415 and 401(a)(17)  of  the  Code  and  relevant  provisions  of  the  Pension  Plan  in  the calculation of retirement benefits under the Pension Plan.

		
	(d)
	“Board” shall mean the Board of Directors of the Company.

		
	(e)
	“Committee” shall  mean  the  Anixter  Inc.  Employee  Benefits  Administrative Committee.

		
	(f)
	“Disability” shall mean, consistent with the requirements of Section 409A of the Code, that the Participant is (i) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months; (ii) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Company; or (iii) determined to be totally disabled by the Social Security Administration or the Railroad Retirement Board.

		
	(g)
	“Excess Benefit” shall mean the benefit a Participant is entitled to receive under the Excess Plan, which consists of (i) an FAP Benefit and/or (ii) an  HPRA Benefit.

		
	(h)
	“FAP  Benefit”  shall  mean  the  portion  of  a  Participant’s  Excess  Benefit determined pursuant to Section 3(a) of the Excess Plan.

		
	(i)
	“HPRA  Benefit”  shall  mean  the  portion  of  a  Participant’s  Excess  Benefit determined pursuant to Section 3(b) of the Excess Plan.

		
	(j)
	“Hypothetical Personal Retirement Account” shall have the meaning ascribed in Section 7.01(c)(3) of the Pension Plan.

		
	(k)
	“Hypothetical Personal Retirement Account Contribution” shall have the meaning ascribed in Section 7.01(c)(3) of the Pension Plan.

		
	(l)
	“Hypothetical  Personal  Excess  Benefit  Account”  shall  mean  a  hypothetical bookkeeping account maintained by the Company on behalf of each Participant eligible for an HPRA Benefit reflecting credits and adjustments in accordance with Section 3(b) of the Excess Plan.

		
	(m)
	“Initial Participation Year” shall mean, with respect to a Participant eligible for an HPRA Benefit, the Plan Year in which such Participant is designated by the Board as a Participant in the Excess Plan.

		
	(n)
	“Joint and Survivor Annuity” shall mean a monthly annuity that is paid to the retired Participant with a monthly survivor annuity paid during the life of the Beneficiary after the Participant’s death in the amount of fifty percent (50%) of the monthly benefit payable to the Participant.  The Joint and Survivor Annuity shall be the Actuarial Equivalent of the Life Annuity.

		
	(o)
	“Life Annuity” shall mean a monthly annuity that is paid to the retired Participant for  as  long  as  he  lives  and  which  does  not  provide for  any payments to  a Beneficiary following the Participant’s death.

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	(p)
	“Normal Retirement Date” shall mean the first day of the month coincident with or next following a Participant’s sixty-fifth (65th) birthday.

		
	(q)
	“Participant” shall mean an employee of the Company who participates in the Excess Plan.

		
	(r)
	“Plan Year” shall mean calendar year.

		
	(s)
	“Retirement” shall mean a Participant’s Separation from Service which occurs on or after his attainment of age fifty-five (55).

		
	(t)
	“Separation from Service” shall have the meaning as defined under Treasury Regulation § 1.409A-1(h)(1)(i).

		
	(u)
	“Vested” shall mean that a Participant has attained the requisite age and service to be eligible for 100% of his benefit under the Pension Plan.

		
	2.
	Eligibility and Participation:  An employee of the Company shall be a participant in and entitled to benefits under the Excess Plan if:

		
	(a)
	he is a participant in the Pension Plan; and

		
	(b)
	he is designated as a Participant in the Excess Plan by the Board.

		
	3.
	Amount of Benefit:

		
	(a)
	FAP Formula.  A Participant who is entitled to a benefit determined pursuant to Section 7.01(a)(1)(A) of the Pension Plan shall be entitled to an FAP Benefit, which is the amount by which (i) exceeds (ii) (but not below zero):

		
	(i)
	The amount of the benefit which the Participant or his Beneficiary would have been entitled to receive under Section 7.01(a)(1)(A) of the Pension Plan, calculated:

		
	(A)
	without regard to the Benefit Limitations;

		
	(B)
	without regard to any additional benefit described in applicable Supplement 3 and any subsequent Supplement to the Pension Plan, if any; and

		
	(C)
	in   the  case   of  a   Participant  who  incurs  a   termination  of employment, to include any executive bonus payments made prior to January 1, 2014 that are otherwise excluded from the Pension Plan’s calculation of “Monthly Salary” pursuant to Pension Plan Section 1.36(c)(4) because they are not included in, or paid concurrently with, the Participant’s final regular paycheck.

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	(ii)
	The amount of the benefit which the Participant or his Beneficiary is entitled to receive under Section 7.01(a)(1)(A) of the Pension Plan, including the additional benefit payable under the FAP Formula described in Supplement 3 and any subsequent Supplements to the Pension Plan.

		
	(b)
	HPRA Formula.

		
	(i)
	A Participant who is entitled to a benefit determined pursuant to Section 7.01(a)(1)(B) or Section 7.01(c) of the Pension Plan shall be entitled to an HPRA Benefit, which is the amount by which (i) exceeds (ii) (but not below zero):

		
	(A)
	The balance of his Hypothetical Personal Excess Benefit Account (as determined below).

		
	(B)
	The  additional  amounts  credited  to  the  Hypothetical  Personal Retirement Account, if any, pursuant to Supplement 3 and any subsequent Supplements to the Pension Plan.

		
	(ii)
	For any Plan Year beginning with the Participant’s Initial Participation Year, there shall be credited to the Participant’s Hypothetical Personal Excess Benefit Account an amount equal to his Pay Credit for that Plan Year.  The Pay Credit shall be applied as of the last day of the Plan Year or as of such other times in the Plan Year as the Hypothetical Personal Retirement Account Contribution is applied under the Pension Plan in such Plan Year.  In no event will a Participant receive a Pay Credit for any Plan Year prior to the Plan Year commencing on January 1, 2011, in the case of a Participant whose Pension Plan benefit is calculated pursuant to Section 7.01(c) of the Pension Plan, or January 1, 2014 in the case of a Participant whose Pension Plan benefit is calculated pursuant to Section 7.01(a)(1)(B) of the Pension Plan.

For purposes of this section, “Pay Credit” shall mean an amount equal to the excess, if any, of (A) below over (B) below:

		
	(A)
	the  Hypothetical  Personal  Retirement  Account  Contribution  to which the Participant would have been entitled under the Pension Plan for such Plan Year if such Hypothetical Personal Retirement Account Contribution were assumed to be calculated:

		
	(I)
	using the definition of “Salary” under Section 1.36(a) of the Pension Plan instead of the definition of “Salary” under Section 1.36(b) of the Pension Plan, but including, in the case of a Participant who incurs a termination of employment,  the   items   of   remuneration  described  in Section 1.36(c)(1) through (3) of the Pension Plan and any executive   bonus   payments   not included   in, or   paid concurrently with, the Participant’s final regular paycheck; and

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	(II)
	without regard to the Benefit Limitations.

		
	(B)
	The  Hypothetical Personal Retirement Account Contribution to which such Participant is entitled under the Pension Plan for such Plan Year.

		
	(iii)
	In January of each Plan Year commencing on or after January 1, 2011, there  shall  be  credited  to  the  Hypothetical  Personal  Excess  Benefit Account  of  each  Participant  an  interest  credit  equal  to  an  amount calculated by multiplying (A) by (B) below:

		
	(A)
	The  balance  of  the  Participant’s  Hypothetical  Personal  Excess Benefit  Account, if  any,  as  of January 1  of  the  calendar  year preceding the year in which the interest credit is applied.

		
	(B)
	The  annual  rate  on  10-year  Treasury  securities  as  of  the  last business day of the second calendar year preceding the year in which the interest credit is applied.

		
	4.
	Payments of the FAP Benefit:   Any Participant who terminated employment with the  Company on or before December 31, 2004, was fully Vested in the FAP Benefit and received no further accruals after that date shall have his FAP Benefit payable at the same time and in the same manner and form as the FAP benefit under the Pension Plan. Payment of the FAP Benefit to all other Participants shall be made as follows:

		
	(a)
	Normal Benefit Commencement Date.   Unless a Participant has made a timely election under subsection (b) below, payment of the FAP Benefit will commence on the first day of the month coincident with or next following (i) the date the Participant incurs a Separation from Service due to Retirement or Disability, or (ii) in the case of a Participant who incurs a Separation from Service for any reason other than death or Disability prior to obtaining age fifty-five (55), the date that such Participant attains age sixty-five (65).

		
	(b)
	Optional Benefit Commencement Date.   A Participant may elect to delay the normal benefit commencement date specified in subsection (a)(i) above in accordance with this subsection (b). If eligible to make an election under this subsection  (b),  a  Participant  may elect  to  delay  commencement of  the  FAP Benefit to any permissible date up to his Normal Retirement Date, and such Participant’s monthly benefit amount as of such commencement date shall be adjusted so as to be the Actuarial Equivalent of a Life Annuity (or Joint and Survivor Annuity, as applicable) commencing on his Normal Retirement Date. To be effective, any such election of an optional benefit commencement date must meet all of the following requirements: (i) the election must be made not less than twelve (12) months prior to the date the FAP Benefit payments would have otherwise commenced; (ii) unless a payment relates to Disability or death, the election  must  be  made  before  the  Participant  attains  age  sixty  (60),  and commencement of the FAP Benefit payments must be deferred for a 

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period of no less than five (5) years from the date the FAP Benefit payments would otherwise have commenced; and (iii) the election shall not take effect until at least twelve (12) months after the date on which such election is made.

		
	(c)
	Form of  Payment.   The normal form of payment of  the  FAP Benefit for  a Participant without a Beneficiary shall be a Life Annuity. The normal form of payment of the FAP Benefit for a Participant with a Beneficiary shall be a Joint and  Survivor  Annuity  for  the  combined  lives  of  the  Participant  and  his Beneficiary.

		
	(d)
	Death Benefit Prior to Benefit Commencement Date.

		
	(i)
	If a Participant with a Beneficiary incurs a Separation from Service due to his death, his Beneficiary will receive the same FAP Benefit that would have  been  payable  if  the  Participant  had  incurred  a  Separation  from Service from the Company on the day prior to his death and died the following day.  Payment of this FAP Benefit will begin on the first day of the month next following the Participant’s death.

		
	(ii)
	If a Participant with a Beneficiary dies following his Separation from Service but before he begins receiving payment of his FAP Benefit, his Beneficiary will receive the survivor portion of the Joint and Survivor Annuity beginning  on  the  first  day  of  the  month  next  following  the Participant’s death.

		
	(iii)
	No FAP Benefit will be payable pursuant to this Section 4(d) following the death of a Participant who does not have a Beneficary.

		
	(e)
	Delay in Commencement for Specified Employees.  Notwithstanding anything in this Section 4 to the contrary, if a Participant was one of the 50 highest paid employees of the Company on the basis of compensation recorded in Box 5 of the individual’s Form W-2 for the Plan Year ending prior to the date he incurs a Separation  from  Service  for  any  reason  other  than  death  or  Disability,  and payment of his FAP Benefit would be made or commence within six (6) months of such date, payment of his FAP Benefit shall be delayed until the first day of the month that is six (6) months after such date. In such event, the FAP Benefit shall be determined as if payments had commenced as originally provided herein, and the first payment to the Participant shall include an amount equal to the sum of periodic payments which would have been paid to such Participant but for the delay required by Section 409A(a)(2)(B)(9) of the Code.   Notwithstanding the foregoing, if a Participant dies during the six (6)-month delay period described in this Section 4(f), his FAP Benefit shall be payable immediately to his Beneficiary (if applicable) as described in Section 4(d).

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	5.
	Payment of the HPRA Benefit:  Payment of the HPRA Benefit shall be made in a single  sum on the first day of the month coincident with or next following six (6) months after the Participant’s Separation from Service for any reason other than death or Disability. Notwithstanding the foregoing, if the Participant dies prior to payment being made to him (whether before or after Separation from Service), his HPRA Benefit shall be paid in a single sum within 30 days of his death to his Beneficiary, or, if no Beneficiary survives him, to the Participant’s estate.   Notwithstanding the foregoing, a Participant will not receive any HPRA Benefit under this Excess Plan unless, as of the date of his Separation from Service, he is Vested in the benefit provided pursuant to Section 7.01(c) of the Pension Plan.

		
	6.
	Cash Out of Small Amounts:  Notwithstanding the foregoing, if the present value of a Participant’s benefit under the Excess Plan (including the FAP Benefit and the HPRA Benefit) as of his benefit commencement date is calculated to be less than the applicable dollar amount for elective deferrals under Code Section 402(g)(l)(B) then in effect (as adjusted for cost-of-living increases under Code Section 402(g)(4)), the Company shall distribute the Participant’s entire benefit in a lump sum to the Participant (or the Participant’s Beneficiary, as applicable, in the event of the Participant’s death prior to the benefit commencement date) within 30 days of the benefit commencement date or the Participant’s death, as applicable.

		
	7.
	Funding:  The benefits under the Excess Plan shall be paid from the general assets of the Company. The Company shall not be required to segregate any assets to be used for payment of benefits under the Excess Plan.

		
	8.
	General Provisions:

		
	(a)
	Employment  Rights.   The  Excess  Plan  does  not  constitute  a  contract  of employment and participation in the Excess Plan will not give any employee the right to be retained in the employment of the Company, or any right or claim to a benefit under the Excess Plan unless specifically provided by the Excess Plan.

		
	(b)
	Interests Not Transferable.  The interests of persons entitled to benefits under the Excess Plan are not subject to their debts or other obligations and, except as may be required by the tax withholding provision of the Code, or any state’s income tax  act  or  pursuant  to  compliance  with  a  qualified  domestic  relations  order pursuant to the Employee Retirement Income Security Act of 1974, as amended, may not be voluntarily or involuntarily transferred, assigned, alienated or encumbered.

		
	(c)
	Controlling Law.   The internal laws of Illinois excepting any conflicts of law provisions shall be controlling in all matters relating to the Excess Plan except to the extent superseded by the laws of the United States.

		
	(d)
	Gender and Number.  Where the context admits, words in the masculine gender shall include the feminine gender, the singular shall include the plural and the plural shall include the singular.

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	(e)
	Action by Company.  Any action required or permitted by the Company under the Excess Plan shall be by resolution of its Board or any persons authorized by resolution of its Board.

		
	(f)
	Interpretation.   This Excess Plan shall be administered and interpreted by the Board in its discretion or as delegated to the Committee, and all Participants shall be bound by the decision of’ the Board or the Committee, which shall be final and conclusive.

		
	9.
	Committee Administration:

		
	(a)
	In General.   The Excess Plan shall be administered by the Committee or any successor thereto, which shall have the sole authority to construe and interpret the terms and provisions of the Excess Plan and determine the amount, manner and time  of  payment  of  any  benefits  hereunder.  The  Committee  shall  maintain records, make the requisite calculations and disburse payments hereunder, and its interpretations, determinations, regulations and calculations shall be final and binding on all persons and parties concerned. The Committee may adopt such rules as it deems necessary, desirable or appropriate in administering the Excess Plan and the Committee may act at a meeting, in writing without a meeting, or by having actions otherwise taken by a member of the Committee pursuant to a delegation of duties from the Committee. The Committee may, in its discretion, delegate its duties to an officer or other employee of the Company, or to a committee   composed   of   officers   or   employees   of   the   Company.   The determination of the Committee as to any disputed questions arising under this Excess Plan, whether of law or of fact, or mixed questions of law and fact, including questions of construction and interpretation, shall be final, binding, and conclusive upon all persons. No member of the Committee may act, vote, or otherwise influence a decision of the Committee specifically relating to his benefits, if’ any, under the Excess Plan.

		
	(b)
	Claims Procedure.  If the Committee denies a benefit, in whole or in part, it shall advise the Participant or Beneficiary, as applicable, of (i) the specific basis or bases for the denial (ii) references to the specific Excess Plan provisions upon which the denial is based (iii) a description of any additional material or information that the Participant or beneficiary needs to process the claim, and an explanation of why that material or information is necessary; and (iv) a statement of  the  Excess  Plan’s  appeal  procedures as  hereinafter set  forth.  Any  person dissatisfied with the Committee’s determination of a claim for benefits hereunder must file a written request for reconsideration with the Committee within sixty (60) days of the denial by the Committee. Such person has the right to request, free of charge, and obtain copies of all documents, records, and other information that was relied upon by the Committee in denying such person’s benefits or was submitted, considered, or generated in the course of making the benefit denial, regardless of whether it was used in denying the claim. This request must include a written explanation setting forth the specific reasons for such reconsideration. The Committee shall review its 

8

determination within sixty (60) days, plus an extension for an additional sixty (60) days in special circumstances, and render a written decision with respect to the claim, setting forth the specific reasons for such denial written in a manner calculated to be understood by the claimant. Such decision upon matters within the scope of the authority of the Committee shall be conclusive, binding,  and final upon all claimants under this  Excess Plan. No claimant may bring any action challenging a decision of the Committee at any time more than  one year after the final written decision of the  Committee is rendered.

		
	(c)
	Indemnity of Committee.   To the maximum extent permitted by applicable law, the Company shall indemnify, hold harmless and defend the Committee, each member of the  Committee, any employee of the  Company, or any individual acting as an employee or agent of any of it (to the extent not indemnified or saved harmless under any liability insurance or any other indemnification arrangement) from any and all claims, losses, damages, liabilities, costs and expenses (including attorneys' fees) arising out of any actual or alleged act or failure to act made in good faith in connection with the Excess Plan (or any related trust agreement), including  expenses  reasonably incurred  in the  defense  of  any  claim relating thereto.

		
	10.
	Amendment or Termination:  The Company may amend or terminate the Excess Plan at any time, except that, without the consent of any Participant in the Excess Plan, no such amendment or termination shall reduce his right to receive any benefit accrued hereunder prior to the date of such amendment or termination.

IN WITNESS WHEREOF, the Company has caused this restatement of the Anixter Inc. Excess Benefit Plan to be executed by its duly authorized officer as of this 17th day of December 2014 to be effective as of January 1, 2014.

	
			
	Anixter Inc.

	 
	 
	 

	By:
	/s/ Rodney Smith

	 
	 Rodney Smith

	 
	 
	 

	Title:
	V.P. Human Resources

CH2\13921568.5

9WAL EX 10.13 2015 Annual Bonus Plan

EXHIBIT 10.13

OBJECTIVE: Western Alliance Bancorporation (“WAL”) has established the 2005 Stock Incentive Plan (“SIP”), which is hereby incorporated by reference. To further the objectives of the SIP, WAL has established the WAL 2015 Annual Bonus Plan (“Bonus Plan”) under the SIP, effective January 1, 2015. The purpose of the Bonus Plan is to provide incentives and rewards for superior performance in order to attract and retain highly qualified team members and to maximize financial performance during the 2015 calendar year (“Plan Year”) so that Western Alliance Bancorporation (“WAL”) will meet and exceed its performance goals. 
ELIGIBILITY: Employees of Western Alliance Bank or another wholly-owned affiliate of WAL as of January 1st of the Plan Year are eligible for the Bonus Plan, unless the employee is eligible to participate in a special incentive plan, e.g., Alliance Association Bank, or a separate individual plan (“Participants”). Employees hired between January 2, 2015 and September 30, 2015 are eligible for a prorated award under the Bonus Plan. Employees hired after September 30th are not eligible for the Bonus Plan, but may become eligible for the following year’s annual bonus plan.  
EFFECTIVE DATE: January 1, 2015. This Bonus Plan supersedes all prior annual bonus plans adopted by WAL.
FREQUENCY OF AWARDS: Awards will be paid within 90 days after the end of the Plan Year. Participants must be employed at the end of the Plan Year to receive any compensation under this Bonus Plan.
PLAN ADMINISTRATOR: Pursuant to Section 3 of the SIP, the WAL Compensation Committee will approve, administer and implement the Bonus Plan. The day to day details of the Bonus Plan will be monitored by an internal committee made up of WAL Chief Executive Officer, Chief Financial Officer, and Chief Administrative Officer (“Bonus Plan Committee”).
HOW THE PLAN WORKS: Subject to the terms of the Bonus Plan, award calculations will be based on the following performance measures: 1) Earnings per Share, 2) Credit Quality, 3) Non-Interest Bearing Demand Deposit Growth, 4) Loan Growth, 5) Quality Control and 6) Fee Revenue (“Plan Performance Measures”). 
Each Plan Performance Measure will operate independently (i.e., it is possible for one Performance Measure to generate an award opportunity and not another); likewise, it is possible for one Performance Measure to be achieved at a higher level than another. Performance Measures are individually weighted (“Performance Measure Weights”) (i.e., certain Performance Measures are counted more heavily in calculating awards than others). The Bonus Plan Committee recommends the Plan Performance Measures and Performance Measure Weights at the beginning of the Plan Year for approval by the WAL Compensation Committee. The Compensation Committee retains absolute authority over the selection of and Performance Measures and Performance Measure Weights.
A target bonus percentage expressed as a percentage of base salary will be established for each Participant. A payout at the maximum level requires outstanding performance for the year in all components of the Bonus Plan. Base Salary is defined as the Participant’s actual salary earned for the year which includes pay for regular hours worked plus paid holiday, sick, and vacation hours; earnings received during a leave of absence are not included in this calculation.
		
	A.
	Earnings Per Share Performance is weighted 40% 

This portion of the award will be calculated based on WAL’s Earnings per Share performance during the Plan Year. The Earnings per Share calculation is determined pursuant to Generally Accepted Accounting Principles (“GAAP”). EPS will be adjusted for gain/loss on trust preferred valuation, merger charges, mandated legal/regulatory changes.

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	WAL Performance Earnings Per Share Results
	Performance Measure Weight Paid (%)

	Less than < $1.70
	No Bonus paid

	Between $1.70 to $1.80
	75% to 100%

	Between $1.80 to $1.95
	100% to 150%

		
	B.
	Credit Quality is weighted 10%

This portion of the award will be calculated using the Net Charge Off ratio.
		
	a.
	The Net Charge Off ratio equals Net Loan Charge Offs for the year divided by Average Loans Outstanding for the year.

	
		
	WAL Credit Quality Performance
	Performance Measure Weight Paid (%)

	Net Charge Off Ratio
	 

	>.35%
	No Bonus Paid

	<.35% to .25%
	75% to 100%

	<.25% to .15%
	100% to 150%

		
	C.
	Non-Interest Bearing Demand Deposit Growth is weighted 20%

		
	1.
	This portion of the award will be calculated using the actual Non-Interest Bearing Demand Deposit Growth results for Western Alliance Bank. Exclusions may be made to these calculations to account for windfalls.

		
	2.
	Following are the definitions/calculations on which this portion of the award will be based:

		
	a.
	A calculation will be made for the Western Alliance Bank Growth in organic Non-Interest Demand Deposit Accounts (20% of target).

		
	b.
	The calculation will exclude accounts with credit enhancements, such as letters of credit or collateralized deposits. Growth will not include increases in non-interest bearing demand deposits acquired by acquisition.

		
	c.
	Calculation: The percent of Target award paid for Non-Interest Bearing Demand Deposit Growth will be calculated based on the following schedule:

	
		
	Non-Interest Bearing Demand Deposit Growth
	Percent of Performance Measure Weight Paid

	Less than <$125MM growth
	No Bonus paid

	Between $125 - $200MM
	75% to 100%

	Between $200 - $300MM
	100% to 150%

		
	D.
	Loan Growth is weighted 10%

		
	1.
	This portion of the award will be calculated based on actual Loan Growth results for WAL. Exclusions may be made to these calculations to account for windfalls. 

		
	2.
	Following are the definitions/calculations on which this portion of the award will be based:

		
	a.
	A calculation will be made for Growth in Total Loans (10% of target). 

		
	b.
	Loan calculations will not include increases in loans acquired by acquisition.

		
	c.
	Calculation: The percent of Target bonus paid for Loan Growth will be calculated based on the following schedule:

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	Loan Growth
	Performance Measure Weight Paid (%)

	Less than $420 million
	No Bonus paid

	Between $420 - 840 million
	75% to 100%

	Between $840-1260 million
	100% to 150%

		
	E.
	Quality Control is weighted 10%

		
	1.
	The effectiveness of the Company’s quality control will be evaluated based upon regulatory examinations and internal audits.  

		
	2.
	Effective internal audits will include preparedness, execution, and compliance with the regulatory framework for banks over $10 billion in assets, as well as meeting the bank’s CRA goals.

		
	3.
	The maximum pay out for the quality control portion of the award is 100%

		
	4.
	Quality Control performance will be measured and assessed by the WAL Audit Committee

		
	F.
	Organic Fee Revenue is weighted 10%

		
	1.
	This portion of the award will be calculated using the actual Fee Revenue results for Western Alliance Bank. 

		
	2.
	Following are the definitions/calculations on which this portion of the award will be based:

		
	a.
	A calculation will be made for Western Alliance Bank Non-Interest Fee Income and will exclude the following revenue: BOLI, rental income, lease income and appraisal income. 

		
	b.
	Calculation: The percent of Target bonus paid for Fee Revenue will be calculated based on the following schedule:

	
		
	Fee Revenue
	Performance Measure Weight Paid (%)

	Less than $15 million
	No Bonus paid

	Between $15-16 million
	75% to 100%

	Between $16-18 million
	100% to 150%

		
	G.
	Other Calculation Provisions

		
	1.
	Members of the WAL Executive Management Committee, Divisional Presidents and all Participants below the level of Vice President will be paid out according to the bonus formula without respect to individual assessments. Participants with a title of Vice President, Senior Vice President and Executive Vice President will be evaluated at the end of the Plan Year. Such Participants’ final awards will range from 75% to 120% of each Participant’s target payout based on participant’s contribution to overall performance. 

		
	2.
	Each Participant must meet individual loan and deposit production goals, if applicable, or their award may be reduced or eliminated. 

		
	3.
	A Participant’s bonus may be reduced or eliminated if, in the discretion of the Bonus Plan Committee: i) their department’s loan review and/or audits are rated below satisfactory and/or not adhering to safety, soundness, and approved operational procedures; ii) any Participant, their branch or department earns a rating of less than “Satisfactory,”; iii) their department’s credit underwriting and/or portfolio management practices are rated below “Satisfactory” and/or not adhering to safety and soundness; or iv) the Participant, their branch or department has not contributed adequately to the financial results attributed to them.

		
	H.
	Other Administrative Provisions

		
	1.
	This is a discretionary bonus plan and, in order to receive payment of any award under this Plan, the Participant must be eligible and employed by Western Alliance Bank or another wholly-owned affiliate of WAL at the end of the Plan Year.

3

		
	2.
	Designation as a Participant in the Bonus Plan does not create a contract of employment for any specified time, nor does it alter or amend an “at-will” policy of employment. 

		
	3.
	If any Participant’s performance is rated as falling below job expectations or as less than satisfactory at any time during the Plan Year, or if the participant is subject to any written disciplinary action, the award will be reduced or eliminated.

		
	4.
	If any Participant whose job duties include development of new loans and deposits does not meet or exceed that Participant’s production goals, the award may be significantly reduced.

		
	5.
	A change in officer title during the Plan Year will result in a prorated change in target bonus percentage based upon the number of months in each position.

		
	6.
	Awards will be paid through the normal payroll process to Participants. All awards will be subject to applicable taxes. Awards do not constitute commissions or additional wages, and participants have no vested interests in the benefits of the Bonus Plan, except as expressly provided for herein. No right or interest of any participant in the Bonus Plan is assignable or transferable.

		
	7.
	Awards under this Bonus Plan will be used in calculating covered earnings for benefit purposes for the 401(k) and Life Insurance Plans but not for Long Term Disability Insurance.

		
	8.
	Timely and accurate completion of all reports, budgets and other planning exercises is required for payment under the Bonus Plan. 

		
	9.
	Acknowledgment from the HR Department that departments and officers have conformed to bank policy in timeliness of annual reviews, controllable turnover, and all other areas of HR administration is required for payment under this Bonus Plan.

		
	10.
	Performance measurements and statistics will be based on calculations completed by the Finance Division of Western Alliance Bank. Any questions about the results or the bonus calculations must be submitted to the Plan Administrator within 30 days after the calculations have been completed and published, after which time no inquiries will be considered. 

		
	11.
	Performance Measures, Performance Measure Weights and award opportunities may be adjusted during the performance period only upon approval by the Plan Administrator as it deems appropriate. It is anticipated that such adjustments will be made infrequently and only in extraordinary circumstances. Notwithstanding the foregoing, no adjustment will be made to any award intended to qualify as “performance-based compensation” for purposes of Code Section 162(m) (as defined below) to the extent the adjustment would cause the award to fail to so qualify. 

		
	12.
	This Bonus Plan is governed and interpreted by the Plan Administrator, whose decisions shall be final. WAL reserves the right to change, amend, modify, suspend, continue or terminate all or any part of the Plan either in an individual case or in general, at any time without notice and without consent of any Participant.

		
	13.
	Participants in special incentive plans (which may be paid out quarterly) may not be eligible to participate in the Bonus Plan, and the Bonus Plan Committee has the discretion to determine eligibility for the Bonus Plan. 

		
	14.
	The intent of the Bonus Plan is to fairly reward employees for adding value to WAL. Subject to the Code Section 162(m) provisions below, if adjustments need to be made to allow the Bonus Plan to accomplish its purpose, the Plan Administrator in its sole discretion can make those adjustments.

		
	15.
	Notwithstanding anything to the contrary in this Plan, it is the intention of the Plan Administrator that any award granted to a participant who is a “covered employee” (each a “Covered Employee”) as defined in Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), should qualify as “performance-based compensation” for purposes of Code Section 162(m), all determinations relating to such awards will be made by the WAL Compensation Committee, which is comprised solely of “outside directors” (within the meaning of Code Section 162(m)), and the following provisions will apply to such awards:

4

		
	a.
	The WAL Compensation Committee will determine the amount of an award opportunity to be granted to each participant who is a Covered Employee. 

		
	b.
	Subject to subsection (e) below, the amount of a Covered Employee’s award will be an amount determinable from written performance targets approved by the WAL Compensation Committee while the outcome is substantially uncertain and no more than 90 days after the commencement of the performance period to which the performance target relates. The WAL Compensation Committee will have the authority to determine in its sole discretion the applicable performance period relating to any such award.

		
	c.
	The maximum aggregate limit on awards that may be awarded under this plan to any Covered Employee with respect to any calendar year is $5 million.

		
	d.
	The amount of any award will be based on objective Performance Measures and a Performance Target with respect to each Performance Measure as specified by the WAL Compensation Committee. When establishing performance targets that are intended to qualify as “performance-based compensation” for purposes of Code Section 162(m), the WAL Compensation Committee may exclude any or all “extraordinary items” as determined under GAAP including, without limitation, the charges or costs associated with restructurings of the Company, discontinued operations, other unusual or non-recurring items, and the cumulative effects of accounting changes, only to the extent permitted under Code Section 162(m).

		
	e.
	The WAL Compensation Committee will determine in writing with respect to any Covered Employee whether the performance target has been met with respect to any affected Covered Employee and, if that is the case, so certify and ascertain the amount of the applicable award. No awards will be paid to any Covered Employee until such certification is made by the WAL Compensation Committee.

		
	f.
	The Plan will be administered and interpreted in accordance with Code Section 162(m) to ensure the deductibility by the Company or its affiliates of the payment of such awards.

		
	16.
	To the extent not preempted by federal law, the Bonus Plan shall be construed in accordance with and governed by the State of Arizona, determined without regard to its conflict of law principles. If any provision of this Bonus Plan shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof shall continue to be full effective. The jurisdiction and venue for any disputes arising under, or any action brought to enforce (or otherwise relating to) this Bonus Plan shall be exclusively in the courts of the State of Arizona, County of Maricopa, including the Federal Courts located there (should Federal jurisdiction exist).

5

Sample Calculation: 
1.Earnings Per Share Performance is weighted 40%
	
		
	EPS achieved
	$1.80

	% of EPS Target Paid
	100%

		
	2.
	Credit Quality Performance is weighted 10%

	
		
	Net Charge Off Ratio
	0.25%

	% of Credit Quality Target Paid
	100%

		
	3.
	Non-Interest Bearing Demand Deposit Growth is weighted 20%

	
		
	Non-Interest Demand Deposit Growth Achieved
	$325 million

	% of Loan  Non-Interest Bearing Demand Deposit Growth Target Paid
	150%

		
	4.
	Loan Growth Performance is weighted 10%

	
		
	Loan Growth Achieved
	$1260 million

	% of Loan Growth Target Paid
	150%

		
	5.
	Quality Control factors are weighted 10%

Passed at the 100% level for example purposes

		
	6.
	Fee Revenue is weighted 10%

	
		
	Fee Revenue Achieved
	$16 million

	% of Fee Revenue Target Paid
	100%

Example Paid under WAL Annual Bonus

	
																		
	Participant has a base salary of $60,000
Target Bonus of 8% 
Target Bonus - $4,800.00 

	EPS
	Credit Quality
	Non-Interest DDA Growth
	Loan        Growth
	Quality Control
	Fee Revenue

	

	$4,800
	

	

	$4,800
	

	

	$4,800
	

	

	$4,800
	

	

	$4,800
	

	

	$4,800
	

	X 40%
	

	X 10%
	

	X 20%
	

	X 10%
	

	X 10%
	

	X 10%
	

	

	$1,920
	

	

	$480
	

	

	$960
	

	

	$480
	

	

	$480
	

	

	$480
	

	X 100%
	

	X 100%
	

	X150%
	

	X150%
	

	X100%
	

	X100%
	

	

	$1,920
	

	

	$480
	

	

	$1,440
	

	

	$720
	

	

	$480
	

	480
	

 
Total Payout is $1,920 + $480 + $1,440 + $720 + $480 + 480= $5,520

6

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