Document:

Chittenden Corporation Performance Share Program

 Exhibit 10.2 
 CHITTENDEN CORPORATION 
  

 Performance Share Program 
  

 As Amended and Restated as of November 15, 2006 

 CHITTENDEN CORPORATION 
 Performance Share Program 
  

					
	 	  	 	  	Page
	1.	  	Purpose	  	1
			
	2.	  	Definitions	  	1
			
	3.	  	Determination of Performance Shares	  	3
			
	4.	  	Payment of Awards	  	5
			
	5.	  	Termination of Employment	  	6
			
	6.	  	Administration	  	6
			
	7.	  	General Provisions	  	7

 CHITTENDEN CORPORATION 
 Performance Share Program 
 1. PURPOSE 
 Chittenden Corporation (the “Company”) has adopted this Performance Share Program (the “Program”), subject to the approval of the Company’s stockholders of the Amended and Restated Chittenden
Corporation Stock Incentive Plan, in order to strengthen the ability of the Company to attract and retain talented executives and to promote the long-term growth and profitability of the Company by linking a significant element of participating
employee’s compensation opportunity to the performance of the Company over an extended period of time. This Program shall be administered pursuant to the terms and conditions of the Chittenden Corporation Stock Incentive Plan (the
“SIP”). All common stock of the Company issued in connection with the Program shall be deemed to be issued from shares authorized and reserved pursuant to the SIP. Any term used herein shall, in the absence of a specific definition, have
the meaning assigned to such term in the SIP. 
 2. DEFINITIONS 
 (a) “Account” means the bookkeeping account established for the Participant under Section 4(b). 
 (b) “Affiliated Corporations” means members of the controlled group of corporations as defined in Section 1563 of the Code. 
 (c) “Award” means any grant of Common Stock in accordance with Section 4(a). 
 (d) “Board” means the Board of Directors of Chittenden Corporation. 
 (e) “Change in Control” shall have the meaning assigned to such term in the SIP. 
 (f) “Code” means the Internal Revenue Code of 1986, as amended from time to time, including regulations thereunder and successor
provisions and regulations thereto. 
 (g) “Committee” means the committee designated by the Board to administer the
Program. With respect to Covered Employees for whom the Program is intended to provide Qualified Performance-based Compensation within the meaning of Section 162(m) of the Code, any Committee must consist of two or more persons each of whom are
“outside directors” within the meaning of Section 162(m) of the Code. To the extent the Committee delegates authority pursuant to Section 6(a), references to the Committee in the Program shall, as appropriate, be deemed to refer
to the Committee’s delegate. 
  

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 CHITTENDEN CORPORATION 
 Performance Share Program 
 (h) “Common Stock” or “Stock” means the common
stock of the Company. 
 (i) “Comparison Group” means the peer group of companies designated by the Committee as the
Comparison Group relative to a given Performance Cycle, as described in Section 3(a)(iii). The Comparison Group for the 2005-2007 Performance Cycle is attached hereto as Exhibit C. 
 (j) “Covered Employee” has the meaning given such term under Section 162(m) of the Code. 
 (k) “Dividend Equivalent” means credits in respect of each Performance Share or other Stock Unit representing an amount equal to the
dividends or distributions declared and paid on a share of Common Stock. 
 (l) “EPS Growth Rate” means the Company’s
fully diluted compound earnings per share growth rate over the relevant Performance Cycle. 
 (m) “Effective Date” means the
date that the Company’s stockholders approve the Amended and Restated Chittenden Corporation Stock Incentive Plan, the effective date of this Program. 
 (n) “Exchange Act” means the Securities Exchange Act of 1934, as amended and in effect from time to time, including all rules and regulations promulgated thereunder. 
 (o) “Participant” means an executive officer or other key employee of the Company or an Affiliated Corporation who is selected by the
Committee to participate in this Program. 
 (p) “Performance Cycle” means the period over which Performance Shares
designated in respect of the Performance Cycle potentially may be earned. Performance Cycles will generally be three-year periods extending from January 1 of the initial year through December 31 of the third year in the Performance Cycle.
Performance Cycles generally will begin each year, and therefore will overlap with one another. The three-year performance cycle beginning on January 1, 2005 shall be referred to herein as the 2005 - 2007 Performance Cycle. Exhibit A
illustrates the timing of the Performance Cycles under this Program. A Performance Cycle shall be a period of no less than one year. 
 (q)
“Performance Goals” means the levels of achievement specified in the table, grid or formula described in Section 3(a)(i)(d) herein. 
 (r) “Performance Shares” means the shares of Common Stock which a Participant may earn hereunder. 
  

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 CHITTENDEN CORPORATION 
 Performance Share Program 
 (s) “Pro Rata Portion” means, for any individual, a portion of
a specified number of Performance Shares relating to a given Performance Cycle determined by multiplying such number of Performance Shares by a fraction, the numerator of which is the number of calendar days in the Performance Cycle during which the
individual was a Participant in the Program and the denominator of which is the number of calendar days in the Performance Cycle (subject to adjustment under Section 3(b)). 
 (t) “Qualified Performance-based Compensation” has the meaning given such term under Section 162(m) of the Code and the regulations
promulgated thereunder. 
 (u) “Stock Unit” is a bookkeeping unit which represents a right to receive one share of Common
Stock upon settlement, together with a right to accrual of additional Stock Units as a result of Dividend Equivalents, subject to the terms and conditions of this Program. Stock Units are arbitrary accounting measures created and used solely for
purposes of this Program, and do not represent ownership rights in the Company, shares of Common Stock, or any asset of the Company. 
 (v)
“Target Performance Shares” means a number of Performance Shares designated as a target number that may be earned by a Participant in respect to a given Performance Cycle. 
 (w) “Termination of Employment” means the Participant’s termination of employment with the Company and any Affiliated Corporations.

 (x) “Total Shareholder Return” means the amount, expressed as a percentage, of market price appreciation or depreciation
of a share of Common Stock plus dividends on a share of Common Stock or on the common stock of a company in the Comparison Group assuming dividend reinvestment at the dividend payment date. 
 3. DETERMINATION OF PERFORMANCE SHARES 
 (a) Designation of
Performance Shares and Related Terms. 
 (i) Not later than 90 days after the beginning of a Performance Cycle, the Committee shall:
(a) select employees to participate in the Program for the relevant Performance Cycle; (b) designate, for each such Participant, the Target Performance Shares such Participant shall have the opportunity to earn in such Performance Cycle;
(c) specify the duration of the Performance Cycle; and (d) specify a table, grid or formula that sets forth the number or percentage of Target Performance Shares that will be earned corresponding to the percentile rank of the
Company’s EPS Growth Rate for the three years ending on the last day of the Performance Cycle as compared to the EPS Growth Rate of the Comparison Group for the three years ending on the last day of the 
  

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 CHITTENDEN CORPORATION 
 Performance Share Program 
 Performance Cycle. Exhibit B contains such a table for the 2005-2007 Performance Cycle. The
Committee may, in its discretion, adjust the number of Performance Shares earned by a Participant, notwithstanding the achievement of a specified performance condition. The Committee may exercise this discretion in light of other performance
measures it deems relevant, including but not limited to Total Shareholder Return results of the Company during the relevant Performance Cycle relative to the Comparison Group; provided, however, that the Committee may only exercise such discretion
to reduce, and not to increase, the number of Performance Shares earned by a Participant unless such award was not intended to be Qualified Performance-based Compensation. Threshold awards will be equal to 50% of Target Performance Shares and
maximum awards will be equal to 150% of Target Performance Shares. 
 (ii) The provisions of Section 3(a)(i) notwithstanding, at any
time during a Performance Cycle, the Committee may select a new employee or a newly promoted employee who was not currently participating in the Performance Cycle to participate in the Performance Cycle and designate the Target Performance Shares
for such Participant; provided, however, that such designation must be effective before the date on which two-thirds (2/3) of the relevant Performance Cycle has elapsed; and further provided that such individuals must be designated within the
first 90 days of such Performance Cycle if awards to such individuals are intended to be Qualified Performance-based Compensation. In no event may such Participant earn more than the Pro Rata Portion of the Performance Shares otherwise capable of
being earned with respect to such Performance Cycle. 
 (iii) The Comparison Group for each Performance Cycle shall be designated by the
Committee within the first 90 days of the Performance Cycle, provided that, if the Committee does not designate a new Comparison Group for any Performance Cycle, the Comparison Group shall be that most recently designated by the Committee. In the
event a merger, acquisition, or other extraordinary corporate event affects a company included in the Comparison Group, and if as a result in the Committee’s judgment such event causes the EPS Growth Rate for such company not to be comparable
with periods prior to the event or otherwise necessitates a change or adjustment to ensure continued comparability, the Committee shall make such adjustments, including substituting another company in place of the affected company, in order to
maintain the comparability of results of the Comparison Group. 
 (iv) Not later than 120 days after the end of each Performance Cycle, the
Committee shall determine the extent to which the Performance Goals for the earning of Performance Shares were achieved during such Performance Cycle and the number of Performance Shares (or, the “Award”) earned by each Participant with
respect to such Performance Cycle. The Committee shall certify in writing as to whether the Performance Goals and any other material terms relating to the earning of Performance Shares were in fact satisfied. 

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 CHITTENDEN CORPORATION 
 Performance Share Program 
 (b) Adjustment of and Changes in Stock. In the event of any change in the outstanding
shares of Common Stock by reason of any stock dividend or split, recapitalization, merger, consolidation, spinoff, combination or exchange of shares or other similar corporate transaction, or any distributions to common shareholders other than
regular cash dividends, the Committee may make such substitution or adjustment, if any, as it deems to be equitable, as to the number or kind of shares of Common Stock, Performance Shares, and/or other securities issued, reserved or granted for any
purpose under this Program. 
 4. PAYMENT OF AWARDS 
 (a)
Performance Awards. Subject to the applicable provisions of Section 3, each Participant shall be entitled to receive an Award of Common Stock in an amount equal to the Performance Shares earned in respect of a Performance Cycle plus
shares of Common Stock representing Dividend Equivalents on such earned Performance Shares retroactively reinvested into Common Stock during the Performance Cycle at Fair Market Value on the dividend payment date. Participants shall be immediately
vested in such Award as of the date it is granted by the Committee in accordance with Section 3(a)(iv). 
 (b) Accounts. The Committee shall
maintain a bookkeeping Account for each Participant reflecting the number of Performance Shares credited to the Participant hereunder. The Account may include sub accounts or other designations as the Committee may deem appropriate. 
 (c) Payment of Account. Payment of an Account will be made in shares of Common Stock promptly following the date on which Awards are made; provided, however, the
Committee may, whether at the time of grant or at any time thereafter prior to payment or settlement, permit (subject to such conditions as the Committee may from time to time establish) a Participant to elect to defer receipt of all or any portion
of any shares of Common Stock that would otherwise be due to such Participant in payment or settlement of any Award under the Program; provided further, that any such deferral shall be made in compliance with a plan designed to comply with the
requirements of Section 409A of the Code. Subject to the applicable provisions of Section 409A of the Code and the rules and procedures established by the Committee from time to time, Dividend Equivalents may be paid or credited in respect
of deferred amounts credited in Stock Units and, deferred amounts may be paid in a lump sum or in installments. The shares of Common Stock issued under the Program may be authorized and unissued shares or issued shares which have been reacquired by
the Company. No fractional share of Common Stock shall be issued under the Program. Awards of fractional shares of the Common Stock, if any, shall be settled in cash. 
  

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 CHITTENDEN CORPORATION 
 Performance Share Program 
 5. TERMINATION OF EMPLOYMENT 
 (a) Termination Prior to Completion of Performance Cycle. 
 (i) Upon a Participant’s Termination of Employment with the Company other than due to death, disability or retirement (as described below) prior to completion of a Performance Cycle, in the absence of Committee discretion or a relevant
employment or severance agreement between the Company and a Participant that provides otherwise, all unearned Performance Shares relating to such Performance Cycle shall cease to continue to be earned and shall be cancelled, and Participant shall
have no further rights or opportunities hereunder. 
 (ii) If Termination of Employment is due to the death, disability (as defined in
Section 422(c) of the Code) or retirement (after attainment of age 55), the Participant or his beneficiary shall be entitled to receive the Pro Rata Portion of the Performance Shares earned at the conclusion of the Performance Cycles in effect
at the date of termination, at the time and to the extent such Performance Shares would otherwise have been earned in accordance with Section 4 if the individual’s employment had not terminated until after the close of the Performance
Cycles; provided however, that no Participant shall receive a Pro Rata Portion of the Performance Shares upon retirement unless such award was not intended to be Qualified Performance-based Compensation. If the Participant has timely filed an
irrevocable election to defer settlement of Performance Shares following a Termination of Employment in accordance with terms and conditions established by the Committee, such earned Performance Shares shall be settled in accordance with such
deferral election; provided, however, that any such deferral shall be made in compliance with a plan designed to comply with the requirements of Section 409A of the Code. 
 (b) Change in Control. In the event of a Change in Control prior to the conclusion of any Performance Cycle, the Participant shall be deemed to have earned and shall be entitled to receive, in accordance with
the applicable provisions of the Program, the greater of (i) 100% of the Target Performance Shares relating to Performance Cycles in effect as of the Change in Control or (ii) 100% of the Performance Shares relating to Performance Cycles
in effect as of the Change in Control based on performance calculated through the quarter ending immediately prior to the date of the Change in Control. 
 6. ADMINISTRATION 
 (a) Committee. The Committee shall have full discretion to interpret and administer the Program, and its decision
in any matter involving the interpretation and application of this Program shall be final and binding on all parties. Except to the extent prohibited by applicable law or the applicable rules of a stock exchange, the Committee may allocate all or
any portion of its responsibilities and powers to any one or more of its members, 
  

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 CHITTENDEN CORPORATION 
 Performance Share Program 
 may delegate all or any part of its responsibilities and powers for administering the Program to
one or more persons as the Committee deems appropriate, and, at any time revoke the allocation or delegation; provided, however, the Committee may not delegate its responsibilities under the Program relating to any Covered Employee to the extent
that such Covered Employee’s Award is intended to be Qualified Performance-based Compensation if such delegation would be prohibited under Section 162(m) of the Code. 
 (b) Amendment and Termination. The Board reserves the right to amend, modify, suspend or terminate this Program in whole or in part at any time, so long as such action is consistent with the provisions of the
SIP. 
 7. GENERAL PROVISIONS 
 (a) Payments to Minors
and Incompetents; Death. If any Participant, spouse or beneficiary entitled to receive any benefits hereunder is a minor or is deemed by the Committee or is adjudged to be legally incapable of giving valid receipt and discharge for such
benefits, they will be paid to such person or institution as the Committee may designate or to the duly appointed guardian. Such payment shall, to the extent made, be deemed a complete discharge of any such payment under the Program. In the event of
a Participant’s death prior to payment of any Award to which Participant is otherwise entitled, payment shall be made to the Participant’s then-effective beneficiary or beneficiaries in accordance with the beneficiary designation on file
with the Company. If no such designation is in effect, payments will be made to the Participant’s estate. 
 (b) No Contract. This Program shall
not be deemed a contract of employment with any Participant, nor shall any provision hereof affect the right of the Company to terminate a Participant’s employment. 
 (c) Non-Alienation of Benefits. No amount payable to, or held under the Program for the account of, any Participant, spouse or beneficiary shall be subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, or charge, and any attempt to so anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the same shall be void; nor shall any amount payable to, or held under the Program for the account
of, any Participant be in any manner liable for such Participant’s debts, contracts, liabilities, engagements, or torts, or be subject to any legal process to levy upon or attach. 
 (d) Income Tax Withholding. As a condition to the delivery of any shares of Common Stock or other amounts hereunder, the Committee may require that the Participant, at the time of such payment of shares, pay to
the Company an amount to satisfy any applicable tax withholding obligation as the Committee shall determine from time to time, or the Committee may take such other action as it may deem necessary to satisfy any such withholding obligations. The
Committee, in its sole discretion, may permit or require a Participant to satisfy all or a part of the tax withholding obligations 
  

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 CHITTENDEN CORPORATION 
 Performance Share Program 
 incident to the payment of shares by having the Company withhold a portion of the shares that
would otherwise be issuable to the Participant. Such shares shall be valued based on their Fair Market Value (as defined in the SIP) on the date the tax withholding is required to be made. Any such share withholding with respect to a Participant
subject to Section 16(a) of the Exchange Act shall be subject to such limitations as the Committee may impose to comply with the requirements of Section 16 of the Exchange Act. 
 (e) Governing Law. The provisions of the Program shall be interpreted, construed, and administered in accordance with the referenced provisions of the Code and with the laws of the State of Vermont. 

(f) Captions. The captions contained in the Program are inserted only as a matter of convenience and for reference and in no way define, limit, enlarge, or
describe the scope or intent of the Program, nor in any way affect the construction of any provision of the Program. 
 (g) Severability; Entire
Agreement. If any of the provisions of this Program or any award document is finally held to be invalid, illegal or unenforceable (whether in whole or in part), such provision shall be deemed modified to the extent, but only to the extent, of
such invalidity, illegality or unenforceability, and the remaining provisions shall not be affected thereby; provided, that, if any of such provisions is finally held to be invalid, illegal, or unenforceable because it exceeds the maximum scope
determined to be acceptable to permit such provision to be enforceable, such provision shall be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision enforceable hereunder. The Program and any
award documents contain the entire agreement of the parties with respect to the subject matter thereof and, unless specified otherwise, supersede all prior agreements, promises, covenants, arrangements, communications, representations and warranties
between them, whether written or oral, with respect to the subject matter thereof. 
 (h) Nonexclusivity of the Program. This Program shall not be
construed as creating any limitations on the power of the Board or a committee thereof to adopt such other incentive arrangements, apart from the Program, as it may deem desirable. 
  

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 CHITTENDEN CORPORATION 
 Performance Share Program 
 Exhibit A 
 Illustration of Performance Cycles Under the Program 
 

 
  

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 CHITTENDEN CORPORATION 
 Performance Share Program 
 Exhibit B 
 Performance Shares Earned for EPS Growth Rate 
 for the 2005-2007 Performance
Cycle 
  

				
	 Percentile Rank vs.
 Comparison Group
 3-Year EPS
 Growth Rate
	  	 % of Target
 Award Paid
	 
	 100th
	  	150	%
	 75th
	  	100	%
	 50th
	  	50	%
	 25th and below
	  	0	%

 The % of Target Award Paid between each of the respective percentiles specified above shall be determined by
linear interpolation and shall be rounded to the nearest whole share of Common Stock. 
 The above mechanics are illustrated as follows: 

 
  

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 CHITTENDEN CORPORATION 
 Performance Share Program 
 Exhibit C 
 Comparison Group for 2005-2007 Performance Cycle 
  

			
	 Alabama National Bancorporation
	  	Mercantile Bankshares Corporation
	 Citizens Banking Corporation
	  	 Pacific Capital Bancorp

	 First Citizens Bancshares
	  	 Park National Corporation

	 First Financial Bancorp Inc.
	  	 South Financial Group Inc.

	 FirstMerit Corporation
	  	 Sterling Bancshares, Inc.

	 Fulton Financial Corporation
	  	 Susquehanna Bancshares, Inc.

	 Gold Banc Corporation, Inc.
	  	 Trustmark Corporation

	 Greater Bay Bancorp
	  	 UMB Financial Corporation

	 International Bancshares Corporation
	  	 Wilmington Trust Corporation

		  	 Wintrust Financial Corporation

  

 - 11 -Management Incentive Compensation Plan

 Exhibit 10.3 
 CHITTENDEN CORPORATION 
  

 2005 Executive Management Incentive Compensation Plan 
  

 As Amended and Restated as of November 15, 2006 

 CHITTENDEN CORPORATION 
 2005 Executive Management Incentive Compensation Plan 
  

					
	 	  	 	  	Page
	 1.
	  	General	  	1
			
	 2.
	  	Definitions	  	1
			
	 3.
	  	Participation	  	3
			
	 4.
	  	Incentive Plan Awards	  	3
			
	 5.
	  	Administration	  	6
			
	 6.
	  	Miscellaneous	  	7

 CHITTENDEN CORPORATION 
 2005 Executive Management Incentive Compensation Plan 
 1. GENERAL 
 (a) Purpose. This Chittenden Corporation 2005 Executive Management Incentive Compensation Plan (the “Plan” or “EMICP”) is
intended to assist Chittenden Corporation, a Vermont corporation (the “Company”), and its Affiliated Corporations in attracting, retaining, motivating and rewarding employees who occupy key positions and contribute to the growth and
profitability of the Company and its Affiliated Corporations through the award of certain incentives. The Plan also is intended to enable the Committee to preserve the tax deductibility of incentive awards under Section 162(m) of the Code, and
to advance the interests of the shareholders of the Company by providing performance-based incentives to eligible individuals. 
 (b)
Effective Date. The Plan shall become effective as of the date of its adoption by the Board of Directors of the Company, subject to stockholder approval, and shall continue in effect until terminated by the Board pursuant to
Section 6(a). No payment may be made hereunder prior to stockholder approval of the Plan. 
 2. DEFINITIONS 
 (a) “Affiliated Corporations” shall include members of the controlled group of corporations within the meaning of Section 1563 of
the Code. 
 (b) “Board” means the Board of Directors of the Company. 
 (c) “Code” means the Internal Revenue Code of 1986, as amended from time to time, including regulations thereunder and successor
provisions and regulations thereto. 
 (d) “Committee” means the committee designated by the Board to administer the EMICP.
With respect to Covered Employees for whom the EMICP is intended to provide “qualified performance-based compensation” within the meaning of Section 162(m) of the Code, any Committee must consist of two or more persons each of whom
are “outside directors” within the meaning of Section 162(m) of the Code. To the extent the Committee delegates authority pursuant to Section 5(b), references to the Committee in the EMICP shall, as appropriate, be deemed to
refer to the Committee’s delegate. 
 (e) “Company” means Chittenden Corporation. 
 (f) “Comparison Group” means the peer group of companies designated by the Committee as the Comparison Group relative to a given
Performance Period, as described in Section 4(a)(i). 
 (g) “Covered Employee” has the meaning given such term under
Section 162(m) of the Code. 
  

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 CHITTENDEN CORPORATION 
 2005 Executive Management Incentive Compensation Plan 
 (h) “EMICP” means the Chittenden
Corporation 2005 Executive Management Incentive Compensation Plan, as it may be amended from time to time. 
 (i) “Employer”
means the Company and any Affiliated Corporation that employs a Participant. 
 (j) “Fiscal Year” means the 12-month period
beginning on each January 1 and ending on December 31 of the same calendar year. 
 (k) “Incentive Percentage”
means the number determined by the Committee as the percentage of a Participant’s annual rate of salary in effect for the last full payroll period of the Performance Period to be paid as an Incentive Plan Award if the specified Performance
Goals are achieved. The Committee may establish different Incentive Percentages for individual Participants or different classes of Participants, and/or the achievement of different levels of the Performance Goals. 
 (l) “Incentive Plan Award” means an incentive compensation award under the EMICP, payment of which is contingent and based upon the
attainment of the Performance Goals with respect to a Performance Period. 
 (m) “Participant” means an employee of an
Employer participating in the Plan for a Performance Period as provided in Section 3. 
 (n) “Performance Goals” means
the pre-established objective performance goals established by the Committee for each Performance Period. Solely with respect to Covered Employees for any Performance Period for which the EMICP is intended to provide Qualified Performance-based
Compensation, Performance Goals shall be established by the Committee no later than 90 days after the beginning of the Fiscal Year to which the Performance Goals relate (and in the case of a Performance Period shorter than a Fiscal Year, no later
than the date on which 25% of the Performance Period has elapsed) and while the attainment of the Performance Goals is substantially uncertain. The Performance Goals may be based upon the performance of the Company, of any Affiliated Corporation, of
a division thereof, and/or of an individual Participant, using one or more of the Performance Measures selected by the Committee. Separate Performance Goals may be established by the Committee for the Company or an Affiliated Corporation, or
division thereof, or an individual. With respect to Participants who are not Covered Employees, the Committee may establish other subjective or objective goals, including individual Performance Goals, which it deems appropriate. The preceding
sentence shall also apply to Covered Employees with respect to any Incentive Plan Award not intended at the time of grant to be Qualified Performance-based Compensation. Performance Goals may be set at a specific level, or may be expressed as a
relative percentage to the comparable measure at comparison companies or a defined index. 
  

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 CHITTENDEN CORPORATION 
 2005 Executive Management Incentive Compensation Plan 
 (o) “Performance Measure” means one
or more of the following criteria, on which Performance Goals may be based, subject to Section 4(a): (1) gross or net revenue; (2) earnings from operations, earnings before taxes; (3) earnings per common share (either basic or
diluted); (4) return on assets, return on investment, return on capital, return on equity, or return on tangible equity; (5) economic value created; (6) operating margin or profit margin; (7) net interest margin; (8) asset
quality; (9) stock price or total stockholder return; and (10) strategic business criteria, consisting of one or more objectives based on meeting specified market penetration, geographic business expansion goals, cost targets, customer
satisfaction, employee satisfaction, management of employment practices and employee benefits, supervision of litigation and information technology, and goals relating to acquisitions or divestitures of subsidiaries, affiliates or joint ventures.
The targeted level or levels of performance with respect to such business criteria may be established at such levels and in such terms as the Committee may determine, in its discretion, including in absolute terms, as a goal relative to performance
in prior periods, or as a goal compared to the performance of one or more comparable companies or an index covering multiple companies. 
 (p) “Performance Period” means a Fiscal Year or other period of time (which may be longer or shorter than a Fiscal Year) set by the Committee. 
 (q) “Qualified Performance-based Compensation” has the meaning given such term under Section 162(m) of the Code and the regulations promulgated thereunder. 
 3. PARTICIPATION 
 Individuals eligible to participate in the EMICP
shall consist of officers and other employees of an Employer whom the Committee determines have the potential to contribute significantly to the success of the Company and its Affiliated Corporations. For each Performance Period the Committee shall
determine which officers and other employees shall participate in the EMICP. For any Performance Period for which Incentive Plan Awards are intended to be Qualified Performance-based Compensation, the Committee shall designate the Covered Employees
eligible to participate in the EMICP no later than the 90th day of the Fiscal Year (or, in the case of a Performance Period shorter than a Fiscal Year after no later than the date on which 25% of the Performance Period has elapsed), so long as the
attainment of the Performance Goals is still substantially uncertain. 
 4. INCENTIVE PLAN AWARDS 
 (a) Determination of Incentive Plan Awards. 
 (i)
Unless the Committee determines otherwise, 60% of a Participant’s Incentive Plan Award shall be based upon absolute Performance Measures (which, for those Participants who are employees of an Affiliated Corporation, shall include, among other
measures, individual 
  

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 CHITTENDEN CORPORATION 
 2005 Executive Management Incentive Compensation Plan 
 bank performance), and the remaining 40% shall be based upon
relative Performance Measures which consider the Company’s financial performance relative to a Comparison Group with respect to earnings per share growth, return on equity, return on tangible equity, net interest margin, return on assets, asset
quality and/or any other measures deemed appropriate by the Committee. The Comparison Group for each Performance Period shall be designated by the Committee no later than the 90th day of the Fiscal Year (or, in the case of a Performance Period shorter than a Fiscal Year after no later than the date on which 25% of the Performance Period
has elapsed), provided that, if the Committee does not so designate a new Comparison Group for any Performance Period, the Comparison Group shall be that most recently designated by the Committee. In the event a merger, acquisition, or other
extraordinary corporate event affects a company included in the Comparison Group, and if as a result in the Committee’s judgment such event causes the Performance Measures for such company not to be comparable with periods prior to the event or
otherwise necessitates a change or adjustment to ensure continued comparability, the Committee shall make such adjustments, including substituting another company in place of the affected company, in order to maintain the comparability of results of
the Comparison Group. Unless the Committee determines otherwise, the absolute Performance Measures for Participants who are employees of the Company shall be based on the Company’s earnings per share, return on equity and return on tangible
equity relative to annual budget goals established for the Company on a consolidated basis (the “overall corporate goals”); and the absolute Performance Measures for Participants who are employees of an Affiliated Corporation shall be
based 50% on the overall corporate goals and 50% on Performance Measures for the Affiliated Corporation relative to annual budget goals established for such Affiliated Corporation. 
 (ii) The Committee shall, promptly after the date on which the necessary financial, individual or other information for a particular Performance Period
becomes available, determine and certify the degree to which each of the Performance Goals has been attained. Performance Goals shall, to the extent applicable, be based upon generally accepted accounting principles. The Committee may adjust
Performance Goals to take into account the effect of the following, subject to Section 6(j): Changes in accounting standards that may be required by the Financial Accounting Standards Board, the Securities and Exchange Commission or any other
rulemaking body after the Performance Goal is established; realized investment gains and losses; extraordinary, unusual, non-recurring or infrequent items; currency fluctuations; acquisitions; divestitures; litigation losses; financing activities;
expenses for restructuring or productivity initiatives; other non-operating items; new laws, cases or regulatory developments that result in unanticipated items of gain, loss, income or expense; executive severance arrangements; and other items as
the Committee determines to be required so that the operating results of the Company, division, or an Affiliated Corporation shall be computed on a comparative basis from Performance Period to Performance Period. Determination by the Committee or
its designee shall be final and conclusive on all parties, but shall be based on relevant objective information or financial data. The Committee may also, in its discretion, adjust an Incentive Plan Award based on other factors it deems relevant and
appropriate; provided, however, that the Committee may only exercise such discretion to reduce, and not to increase, an Incentive Plan Award unless such award was not intended to be Qualified Performance- based Compensation. 
  

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 CHITTENDEN CORPORATION 
 2005 Executive Management Incentive Compensation Plan 
 (b) Eligibility and Amount of Incentive Plan Award.

 (i) To be eligible for payment of any Incentive Plan Award, the Participant must: (x) have performed the Participant’s duties to
the satisfaction of the Committee; (y) have not engaged in any act deemed by the Committee to be inimical to the best interest of the Company or an Affiliated Corporation; and (z) otherwise complied with Company and Employer policies at
all times prior to the date the Incentive Plan Award is actually paid. No Incentive Plan Award shall be paid to any Participant who does not satisfy each of the above. In addition, unless the Committee determines otherwise, the Participant must be
employed by the Company or an Affiliated Corporation on the day on which the Incentive Plan Award is scheduled to be paid in accordance with Section 4(c), except in the event termination is due to the Participant’s death, disability (as
defined in Section 422(c) of the Code) or retirement (after attainment of age 55), or a separate agreement entered into between the Participant and his or her Employer specifically provides otherwise; provided however, that no Participant shall
receive such an Incentive Plan Award upon retirement or pursuant to a separate agreement entered into between the Participant and his or her Employer unless such award was not intended to be Qualified Performance-based Compensation. In the event of
a Participant’s death, disability or retirement, the Incentive Plan Award shall be prorated based upon the period of employment during the Performance Period. The Committee may, in its sole discretion, reduce, eliminate or increase any
Incentive Plan Award for any individual or group, except that the amount of any Incentive Plan Award intended to be Qualified Performance-based Compensation may not be increased above the amount determined under Section 4(a) hereof. 

(ii) The Incentive Plan Award shall be determined by multiplying the Incentive Percentage applicable to the Participant by the Participant’s
annual rate of salary in effect for the last full payroll period of the Performance Period to which the Incentive Plan Award pertains. In no event, however, will an Incentive Plan Award for a Covered Employee exceed $2,000,000 for a Fiscal Year
Performance Period (or in the case of a Performance Period other than a Fiscal Year, an amount that bears the same ratio to $2,000,000 as the Performance Period bears to a Fiscal Year). 
 (iii) The Committee shall have the discretion and authority to make adjustments to any Incentive Plan Award in circumstances where, during the
Performance Period: (1) a Participant leaves the Employer and is rehired as a Participant; (2) a Participant is hired, promoted or transferred into a position eligible for EMICP participation; (3) a Participant transfers between
eligible EMICP positions with different Incentive Percentages or Performance Goals; (4) a Participant transfers to a position not eligible to participate in the EMICP; (5) a Participant becomes eligible for an incentive from another
incentive plan maintained by the Company or Affiliated Corporation; (6) a Participant is on a leave of 
  

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 CHITTENDEN CORPORATION 
 2005 Executive Management Incentive Compensation Plan 
 absence; and (7) similar circumstances deemed appropriate by
the Committee, consistent with the purpose and terms of the EMICP; provided however, that the Committee shall not be authorized to increase the amount of the Incentive Plan Award payable to a Covered Employee if the amount was intended to be
Qualified Performance-based Compensation. 
 (c) Payment of Award. Unless the Committee provides otherwise, Incentive Plan Awards will be paid in cash
or cash equivalent within 120 days of the end of the applicable Performance Period to which the award pertains, but in no event prior to certification by the Committee as provided in Section 4(a). If any portion of an Incentive Plan Award
payable to a Covered Employee that is intended to be Qualified Performance-based Compensation for any reason is not deductible, payment of that portion shall, at the Committee’s discretion, be deferred until the earliest date it may be paid and
deducted; provided however, that any such deferral shall be made in compliance with a plan designed to comply with the requirements of Section 409A of the Code. Further, if the Participant is on administrative suspension at the time payment
would otherwise be made, payment shall be delayed until the matter is resolved by the Employer. No payment shall be made if the Committee determines the qualification requirements of Section 4(b)(i) have not been satisfied by the Participant.

 (d) Change in Control. Notwithstanding anything in this Plan to the contrary, including any limitations imposed by Section 6(j), all
Participants employed by the Company or an Affiliated Corporation upon a Change in Control (as defined in the Chittenden Corporation Stock Incentive Plan, as amended from time to time) shall receive within 31 days following a Change in Control a
lump sum payment of (i) his or her target Incentive Plan Award for the Performance Period in which the Change in Control occurs multiplied by (ii) a fraction, the numerator of which is the number of calendar days during the Performance
Period that have elapsed from the beginning of the Performance Period to the Change in Control and the denominator of which is the number of calendar days during the entire Performance Period. Such lump sum payment shall, to the extent made, be
deemed a complete discharge of the Participant’s Incentive Plan Award for such Performance Period. 
 5. ADMINISTRATION 
 (a) General. The EMICP shall be administered by the Committee. Subject to the provisions of the EMICP, the Committee shall have full discretionary authority to
administer and interpret the EMICP, to exercise all powers either specifically granted to it under the EMICP or as are necessary or advisable in the administration of the EMICP, to decide the facts in any case arising under the EMICP, to prescribe,
amend and rescind rules and regulations relating to the EMICP, to require performance reports on which it can base its determinations under Section 4(a), and to make all other determinations necessary or advisable for the administration of the
EMICP, all of which shall be binding on all persons, including the Company, Affiliated Corporations, the Participants (or any person claiming any rights under the EMICP from or through any Participant), and any shareholder of the Company. A majority
of the Committee shall constitute a quorum, and, provided a quorum 
  

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 CHITTENDEN CORPORATION 
 2005 Executive Management Incentive Compensation Plan 
 is present (or unanimous written consent is otherwise obtained), the
Committee shall act pursuant to a majority vote of those present. No member of the Board or the Committee shall be liable for any action taken or determination made in good faith with respect to the EMICP or any Incentive Plan Award. 
 (b) Delegation. Except to the extent prohibited by applicable law or the applicable rules of a stock exchange, the Committee may allocate all or any portion of
its responsibilities and powers to any one or more of its members, may delegate all or any part of its responsibilities and powers for administering the EMICP to one or more persons as the Committee deems appropriate, and at any time revoke the
allocation or delegation; provided however, the Committee may not delegate its responsibilities under the Plan relating to any Covered Employee’s Incentive Plan Award intended to be Qualified Performance-based Compensation to the extent
delegation is prohibited under Section 162(m) of the Code. 
 6. MISCELLANEOUS 
 (a) Amendment and Termination. 
 (i) The Board may at any time amend or terminate the EMICP (in whole
or in part) without the approval of the shareholders of the Company, except as otherwise provided in this Section 6(a). Neither the Company nor any Affiliated Corporation is obligated to continue this EMICP. 
 (ii) Any amendment to the EMICP that changes the class of individuals of an Employer eligible to participate, changes the Performance Measures or the
formula used or increases the maximum dollar amount that may be paid to a Participant for a Performance Period shall not be effective with respect to Incentive Plan Awards to Covered Employees intended to be Qualified Performance-based Compensation
unless the amendment is approved by shareholders before the Incentive Plan Award is paid. 
 (b) Effect of Incentive Plan Awards on Other
Compensation. 
 (i) Incentive Plan Awards shall not be considered eligible pay under other plans, benefit arrangements, or fringe benefit
arrangements of the Company or an Affiliated Corporation, unless otherwise provided under the terms of other plans. 
 (ii) To the extent
provided in the applicable benefit plan or benefit arrangement of the Company or an Affiliated Corporation, amounts payable as Incentive Plan Awards will be reduced in accordance with the Participant’s compensation reduction election, if any,
in effect under other plans at the time the Incentive Plan Award is otherwise payable. 
 (c) No Guarantee, No Funding. The payment of an Incentive
Plan Award for any Performance Period does not guarantee any person eligibility for or payment of an 
  

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 CHITTENDEN CORPORATION 
 2005 Executive Management Incentive Compensation Plan 
 Incentive Plan Award for any other Performance Period. Incentive
Plan Awards shall be paid solely from the general assets of the Participant’s Employer, to the extent the payments are attributable to services for the Employer. To the extent any person acquires a right to receive payments from an Employer
under the EMICP, the right is no greater than the right of any other unsecured general creditor. 
 (d) Tax Withholding. The Participant’s
Employer shall have the right to deduct from all payments made under the EMICP any federal, state or local taxes required by law to be withheld with respect to the payments. 
 (e) Governing Law. The provisions of the EMICP shall be interpreted, construed, and administered in accordance with the referenced provisions of the Code and with the laws of the State of Vermont. 

(f) Awards Not Transferable. Subject to Section 6(h), no amount payable to, or held under the EMICP for the account of, any Participant, spouse or
beneficiary shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to so anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the same shall be
void; nor shall any amount payable to, or held under the EMICP for the account of, any Participant be in any manner liable for such Participant’s debts, contracts, liabilities, engagements, or torts, or be subject to any legal process to levy
upon or attach. 
 (g) No Contract. This EMICP shall not be deemed a contract of employment with any Participant, nor shall any provision hereof
affect the right of the Company or any Affiliated Corporation to terminate a Participant’s employment. 
 (h) Payments to Minors and Incompetents;
Death. If any Participant, spouse or beneficiary entitled to receive any benefits hereunder is a minor or is deemed by the Committee or is adjudged to be legally incapable of giving valid receipt and discharge for such benefits, they will be
paid to such person or institution as the Committee may designate or to the duly appointed guardian. Such payment shall, to the extent made, be deemed a complete discharge of any such payment under the Plan. In the event of a Participant’s
death prior to payment of any Incentive Plan Award to which Participant is otherwise entitled, payment shall be made to the Participant’s then-effective beneficiary or beneficiaries in accordance with the beneficiary designation on file with
the Company. If no such beneficiary designation is in effect, payments shall be made to the Participant’s estate. 
 (i) Nonexclusivity of the
Plan. Neither the adoption of the Plan by the Board nor its submission of any terms of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board or a committee thereof to
adopt such other incentive arrangements, apart from the Plan, as it may deem desirable, including incentive arrangements and awards which do not qualify under Section 162(m) of the Code, and such other arrangements may be either applicable
generally or only in specific cases. 
  

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 CHITTENDEN CORPORATION 
 2005 Executive Management Incentive Compensation Plan 
 (j) Compliance with Section 162(m) of the Code. It is
the intent of the Company that compensation under the Plan payable to Covered Employees shall constitute Qualified Performance-based Compensation unless otherwise determined by the Committee at the time of allocation of an award. Accordingly, the
terms of Section 4 and other provisions of the Plan, including the definitions and other terms used therein, shall be interpreted in a manner consistent with Section 162(m) of the Code. If any provision of the Plan or any document relating
to an award that is designated as intended to comply with Section 162(m) of the Code does not comply or is inconsistent with the requirements of Section 162(m) of the Code, such provision shall be construed or deemed amended to the extent
necessary to conform to such requirements, and no provision shall be deemed to confer upon the Committee or any other person discretion to increase the amount of compensation otherwise payable in connection with any such award upon attainment of the
applicable performance objectives. Notwithstanding the foregoing, however, whenever the Committee determines that it is advisable to grant or pay Incentive Plan Awards that do not qualify as Qualified Performance-based Compensation, the Committee
may make grants or payments without satisfying the requirements of Section 162(m) of the Code, provided, however, that any such determination must be made prior to the time that any such grant or payment is made. 
 (k) Severability; Entire Agreement. If any of the provisions of this Plan or any award document is finally held to be invalid, illegal or unenforceable (whether
in whole or in part), such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability, and the remaining provisions shall not be affected thereby; provided, that, if any of such
provisions is finally held to be invalid, illegal, or unenforceable because it exceeds the maximum scope determined to be acceptable to permit such provision to be enforceable, such provision shall be deemed to be modified to the minimum extent
necessary to modify such scope in order to make such provision enforceable hereunder. The Plan and any award documents contain the entire agreement of the parties with respect to the subject matter thereof and, unless specified otherwise, supersede
all prior agreements, promises, covenants, arrangements, communications, representations and warranties between them, whether written or oral, with respect to the subject matter thereof. 
 (l) Captions. The captions contained in the EMICP are inserted only as a matter of convenience and for reference and in no way define, limit, enlarge or describe the scope or intent of the Plan, nor do they in
any way affect the construction of any provision of the Plan. 
  

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