Document:

exhibit10_9a.htm

     

    EXHIBIT
10.9A

     

    AMENDMENTS
TO THE

    MB
FINANCIAL, INC.  MB FINANCIAL BANK, N.A. AND UNION BANK, N.A.
NON-STOCK DEFERRED COMPENSATION PLAN

    AND
THE

    MB
FINANCIAL, INC.  MB FINANCIAL BANK, N.A. AND UNION BANK, N.A. STOCK
DEFERRED COMPENSATION PLAN

    (Both
effective as of May 29, 2001)

    

    WHEREAS, MB Financial, Inc., MB
Financial Bank, N.A. and Union Bank, N.A.  (together the "Company")
established and maintained the MB Financial, Inc., MB Financial Bank, N.A. and
Union Bank, N.A. Non-Stock Deferred Compensation Plan (the “Non-Stock Plan”),
and the MB Financial, Inc.,
MB Financial Bank, N.A. and Union Bank, N.A. Stock Deferred Compensation
Plan (the “Stock Plan”), both of which are effective as of May 29, 2001
(collectively the "Plans"); and

    

    WHEREAS, the Plans were amended in 2005
to comply with Section 409A of the Internal Revenue Code of 1986, as amended
(the "Code"), and guidance issued thereunder, which was added to the Code by the
American Jobs Creation Act of 2004 (referred to herein as “Section 409A”);
and

    

    WHEREAS, final regulations have been
issued under Section 409A, which become effective January 1, 2008 (although only
good faith compliance with Section 409A is required until January 1, 2009);
and

    

    WHEREAS, the Company now desires to
amend the Plans, effective January 1, 2008, to adopt amendments to comply with
the requirements of Section 409A; and

    

    WHEREAS, the Company desires to amend
the Non-Stock Plan to formally merge the First Oak Brook Bancshares, Inc.
Executive Deferred Compensation Plan into the Non-Stock Plan as of January 1,
2007; and

    

    WHEREAS, the Company completed the sale
of Union Bank, N.A. on November 28, 2007, and as there are no employees of Union
Bank, N.A. participating in the Plans, the Company desires to terminate Union
Bank, N.A. as a sponsor of the Plans; and

    

    WHEREAS, the Company desires to amend
the Plans to provide more flexibility regarding employer matching contributions
and employer nonelective contributions; and

    

    WHEREAS, the Plans may be amended by
action of the Board.

    

    NOW, THEREFORE, be it resolved as
follows:

     

    [CONTINUED
ON FOLLOWING PAGE]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    RESOLUTION
PERTAINING TO THE MERGER OF THE

    FIRST
OAK BROOK BANCSHARES, INC.

    EXECUTIVE
DEFERRED COMPENSATION PLAN

    INTO
THE NON-STOCK PLAN

    

    RESOLVED, That effective January 1,
2007, the Non-Stock Plan is amended to include the following new Section
2.5:

     

    
      	
               
      

            	
              2.5

            	
              Merger of the First
      Oak Brook Bancshares, Inc. Executive Deferred Compensation
      Plan.   The First Oak Brook Bancshares, Inc.
      Executive Deferred Compensation Plan (the “FOBB Plan”) is merged into this
      Plan.   Each FOBB Plan participant with an account
      transferred from the FOBB Plan to this Plan shall be a Participant in this
      Plan.  Separate bookkeeping accounts shall maintained under this
      Plan with respect to amounts transferred from the FOBB Plan into this
      Plan.  Such accounts shall distinguish between amounts that are
      subject to Section 409A, and which amounts are not, and shall be treated
      as such under this Plan.  Accounts transferred from the FOBB
      Plan to this Plan shall be subject to the provisions of this Plan
      (including but not limited to the distribution provisions of this Plan and
      not the FOBB Plan), including separate treatment for amounts that are
      subject to Section 409A and amounts that are not to the extent
      applicable.

            

    

     

    [CONTINUED
ON FOLLOWING PAGE]

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    RESOLUTIONS REGARDING EMPLOYER
CONTRIBUTIONS

    

    RESOLVED, That effective January 1,
2007, the definitions under the Plans, and Section 3.2 of the Plans, are amended
as follows:

    

    Definitions

    

    “Employer
Contribution” shall mean a contribution made by an Employer on behalf of
a Participant or Participants pursuant to Section 3.2(b).

    

    “Matching
Contribution” shall mean a matching contribution made by an Employer on
behalf of a Participant or Participants pursuant to Section 3.2(a).

    

    The
definitions of “Excess Employer Contributions” and “Excess Matching
Contributions” are hereby deleted.

    

    

    Section
3.2

    

    3.2           Employer Contributions.

    

    (a)           Discretionary
Matching Contributions.  Each Employer, in its sole discretion, may
agree to contribute on behalf of a Participant (or Participants) who is an
Employee of that Employer a Matching Contribution with respect to the Plan Year.
The amount of the Matching Contribution shall be determined in relation to the
Participant’s Annual Deferral Amount, or to such other compensation that the
Participant makes to any other plan of deferred compensation.  For any
Plan Year, Matching Contributions may be made for some, but not all,
Participants, and the amount of the Matching Contribution may vary from
Participant to Participant, all as determined by the Employer in its sole
discretion. No earnings shall be credited until after the Matching Contribution
is actually contributed to the Plan.

    

    (b)           Discretionary
Employer Contributions. Each Employer may, but is not required to, contribute on
behalf of a Participant who is an Employee of that Employer an additional
Employer Contribution.  For any Plan Year, Employer Contributions may
be made for some, but not all, Participants, and the amount of the Employer
Contribution may vary from Participant to Participant, all as determined by the
Employer in its sole discretion.  No earnings shall be credited until
after the Employer Contribution is actually contributed to the
Plan.

     

    [CONTINUED
ON FOLLOWING PAGE]

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    RESOLUTIONS
REGARDING TERMINATION OF UNION BANK, N.A. AS A SPONSOR OF THE PLANS

    

    

    RESOLVED,
that effective November 28, 2007, Union Bank, N.A. is hereby terminated as a
sponsor of the Plans.

    

    RESOLVED
FURTHER, that effective November 28, 2007, the Plans are hereby amended by
deleting all references therein to Union Bank, N.A., and on and after that date
the Plans shall be known as the “MB Financial, Inc. and MB Financial Bank, N.A.
Stock Deferred Compensation Plan” and the “MB Financial Inc., and MB Financial
Bank, N.A. Non-Stock Deferred Compensation Plan.”

     

    [CONTINUED
ON FOLLOWING PAGE]

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    RESOLUTIONS
PERTAINING TO SECTION 409A COMPLIANCE

    

    RESOLVED, That the versions of the
Plans that were adopted effective January 1, 2005, shall be effective from
January 1, 2005, through December 31, 2007, as they represent good-faith
compliance with Section 409A.

    

    FURTHER RESOLVED, That effective
January 1, 2008, the version of the Plans that were in effect on December 31,
2004 (as amended effective January 1, 2007, pursuant to the foregoing
resolutions), shall  (1) be reinstated with respect to Account
Balances as of December 31, 2004, and the earnings and losses credited thereon,
and (2) apply to deferrals and contributions made with respect to years
commencing after December 31, 2004, and the earnings and losses credited
thereon, except as modified by these resolutions.

    

    FURTHER RESOLVED, That effective
January 1, 2008, the Plans are amended to include the following Appendix A at
the end thereof:

    

    APPENDIX
A

    

    Provisions
Relating to Code Section 409A

    

    1.           General
Rules.

    

    (a)           Effective Date;
Applicability.  The provisions of this Appendix A will apply to
deferrals and contributions made under the Plan beginning with the 2005 calendar
year and the earnings and losses credited thereon, for purposes of complying
with the requirements of Section 409A, as defined herein.  The
provisions of the Plan in effect as of December 31, 2004, shall continue to
apply to account balances as of December 31, 2004, including earnings and losses
credited thereon after such date.

    

    (b)           Precedence.  The
provisions of this Appendix A shall supersede the provisions of the Plan to the
extent those provisions are inconsistent with the provisions of this Appendix
A.

    

    (c)           Requirements of Code Section
409A Incorporated.  The Plan is designed to comply with Section
409A as defined herein, and the provisions of the Plan should be interpreted to
satisfy the requirements of Section 409A.

    

    2.           Definitions.  The
following definitions are added to, or supersede, existing definitions in the
Plan:

    

    “Disability” shall mean where the
Participant either is (a) unable to engage in substantial activity by reason of
any 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 12 months, or
(b) by reason of any medically determinable physical or mental impairment which
can be expected to last for a continuous period of not less than 12 months,
receiving income replacement benefits for a period of not less than 3 months
under an accident and health plan covering employees of the
Company.  The determination of whether a Participant has a Disability
shall be determined by the Committee in its sole discretion.

    

    "Identification Period" means the
twelve (12) month period ending each December 31.

    

    “Section 409A” shall mean Section 409A
of the Internal Revenue Code of 1986, as amended, and any regulations or other
guidance of general applicability issued thereunder.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    "Specified Employee" means, for an
applicable twelve (12) month period beginning on April 1, a key employee (as
described in Code Section 416(i), determined without regard to paragraph (5)
thereof) during the Identification Period ending on the December 31 immediately
preceding such April 1.

    

    “Termination of Employment” shall have
the same meaning as “separation from service”, as that phrase is defined in Code
Section 409A (taking into account all rules and presumptions provided for in the
Code Section 409A regulations.)

    

    "Unforeseeable Financial Emergency"
shall mean a severe financial hardship to the Participant resulting from (i) an
illness or accident of the Participant, the Participant’s spouse or a dependent
of the Participant (within the meaning of Section 409A); (ii) a loss of the
Participant's property due to casualty; or (iii) other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Participant, all as determined in accordance with Section 409A.

    

    3.           Election
of Time and Form of Benefit under Participation Agreement; Deferral of
Performance-Based Compensation; Mid-Year Cessation of
Deferrals.

    

    
      	
               
      

            	
              (a)

            	
              Upon
      a Participant’s commencement of participation in the Plan, he shall make
      an irrevocable election regarding whether his Retirement Benefits shall be
      distributed in a lump sum, in monthly installments over 60 months, or
      monthly installments over 120 months. Such election shall be made in
      accordance with Article II.  An Employee who is a Participant as
      of December 31, 2007 (including participants with accounts transferred
      from the First Oak Brook Bancshares, Inc. Executive Deferred Compensation
      Plan) shall, no later than that date, make an irrevocable election,
      subject to Paragraph 4(a) below, (which shall constitute a Section 409A
      Transition Rule Election) regarding whether his Retirement Benefits shall
      be distributed in a lump sum, in monthly installments over 60 months, or
      monthly installments over 120 months.  If the Participant does
      not properly or timely elect a form of distribution in accordance with the
      foregoing, then the Participant's Retirement Benefit shall be distributed
      to him in a lump sum.   An election under this Section 3(a)
      does not preclude a Participant from being able to elect a Short-Term
      Payout with respect to Annual Deferral Amounts pursuant to Section
      4.1.

            

    

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (b)

            	
              A
      Participant may defer all or a portion of performance-based compensation
      (within the meaning of Section 409A) based on services performed over a
      period of at least 12 months, by making an irrevocable deferral election
      at least 6 months before the end of the performance-based compensation
      service period.

            

    

    

    
      	
               
      

            	
              (c)

            	
              If
      an Unforeseeable Emergency or a hardship (as defined in Code Section
      401(k) and the regulations thereunder) occurs, or if the Participant
      incurs a Disability, the Participant may completely discontinue deferrals
      hereunder for the balance of the year in which the Unforeseeable
      Emergency, hardship or Disability occurs.  In the event of
      Disability, the Participant’s instructions must be provided by the 15th
      day of the third month following the date the Participant becomes
      Disabled.

            

    

    

    4.           Modification
or Revocation of Election; Accelerated Benefits Restricted.

    

    
      	
               
      

            	
              (a)

            	
              Notwithstanding
      any provision of the Plan to the contrary, a Participant may only modify
      his distribution election date so long as the election is made at least
      twelve months in advance, such modification is made at least twelve (12)
      months prior to the date the deferred amount would otherwise have been
      payable, and the modification defers distribution of such deferred amount
      for at least five (5) years from the date the original distribution would
      have been made.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    
      	
               
      

            	
              (b)

            	
              Except
      as provided in (c) below, notwithstanding any Plan provision to the
      contrary, the Committee may not accelerate when benefits may be
      distributed under the Plan.

            

    

    

    
      	
               
      

            	
              (c)

            	
              However,
      accelerated distributions shall be permitted under the following
      circumstances:

            

    

    

    (1)     Distributions
may be made from a Participant’s Account Balance prior to when amounts are
otherwise distributable under the Plan to the extent necessary to pay FICA taxes
under Code Sections 3101, 3121(a) and 3121(v)(2), as well as the corresponding
federal, state, local or foreign income and withholding taxes associated with
those FICA taxes.

    

    (2)      Upon
the inclusion of any portion of the benefit into the Participant’s income as a
result of the failure of this Plan to comply with the requirements of Section
409A, a lump sum distribution shall be made as soon as is administratively
practicable following the discovery of the plan failure of an amount equal to
the lesser of (a) the Participant’s then-vested benefit, or (b) the amount
includible in the Participant’s income as a result of the failure of the Plan to
comply with Section 409A. In the event the amount includible in the
Participant’s income under Section 409A exceeds the Participant’s then-vested
benefit, the excess shall be distributed in a lump sum as soon as
administratively practicable after the Participant’s vested interest in his Plan
benefits increases.

     

                   
(3)     At the discretion of the Committee,
distribution also may be made from the Plan prior to the Participant’s
Termination of Employment for any other reason permitted under Treasury
Regulation Section 1.409A-3(j)(4) or subsequent Section 409A guidance (including
but not limited to the following events: pursuant to a domestic relations order,
to comply with an ethics order, to effect a limited cashout, to pay employment
taxes, to pay state, local or foreign taxes, to offset certain debt obligations
and to resolve a bona fide dispute regarding the Participant’s Plan
benefits).

    

    5.             Code
Section 409A Transition Rule Election.  Prior to 2009, a
Participant may make a “Section 409A Transition Rule
Election”.   A Section 409A Transition Rule Election made during
2005 shall apply only to amounts that  would not otherwise be payable
under the terms of the Plan during 2005, and not cause any amounts that would
not otherwise be payable under the Plan after 2005 to be payable in
2005.  A Section 409A Transition Rule Election made during 2006 shall
apply only to amounts that  would not otherwise be payable under the
terms of the Plan during 2006, and not cause any amounts that would not
otherwise be payable under the Plan after 2006 to be payable in
2006.  A Section 409A Transition Rule Election made during 2007 shall
apply only to amounts that would not otherwise be payable under the terms of the
Plan during 2007, and not cause any amounts that would not otherwise be payable
under the Plan after 2007 to be payable in 2007.  A Section 409A
Transition Rule Election made during 2008 shall apply only to amounts that would
not otherwise be payable under the terms of the Plan during 2008, and not cause
any amounts that would not otherwise be payable under the Plan after 2008 to be
payable in 2008.  No Section 409A Transition Rule election shall
violate any constructive receipt or other tax rule that would result in the
acceleration of taxation of Plan payments.

    

    6.             Limitation
on Distributions.

    

    
      	
               
      

            	
              (a)

            	
              Notwithstanding
      any provision of the Plan to the contrary, a distribution from the Plan to
      a Participant who is a Specified Employee shall comply with Code Section
      409A(a)(2)(B)(i) and the regulations thereunder, which generally provides
      that a distribution of amounts to which this Appendix A applies to a
      Specified Employee that are on account of the Participant’s Termination of
      Employment may not commence prior to the date six (6) months after the
      date of such Termination of Employment (or, if earlier, the date of death
      of the Participant). Amounts that would otherwise be distributed to the
      Participant during such six (6) month period shall be accumulated and paid
      to the Participant as of the first day of the seventh-month following such
      Termination of Employment.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (b)

            	
              Payments
      which are subject to the Deduction Limitation shall be paid in accordance
      with Section 409A.

            

    

    

    7.             Hardship
Withdrawals. A hardship withdrawal will only be permitted if the
Committee determines that the Participant has incurred an Unforeseen Financial
Emergency.

    

    8.             Plan
Termination.  Distributions shall not be made in connection
with the termination of the Plan unless all of the requirements of Section 409A
regarding plan terminations are satisfied.

    

    IN WITNESS WHEREOF, this Amendment
has been executed, this day of December 5, 2008, but effective as of January 1,
2008.

     

                                    MB FINANCIAL,
INC.

                                    By:/s/Mitchell Feiger

                                    President and Chief
Executive Officer

    
 

                                    MB FINANCIAL BANK,
N.A.

                                    By:/s/Jill E. York

                                    Vice President and
Cheif Financial Oficer 

     

     

                                    By:/s/Doria L. Koros

                                    Secretary

     

     

    
      
        
        

      

      
        9ex10_7.htm

    
      

    
Exhibit 10.7

     

    January
2008

    

    

    NBT
BANCORP INC. AND SUBSIDIARIES

    

    

    2008
EXECUTIVE INCENTIVE COMPENSATION PLAN

    

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    NBT
BANCORP INC. AND SUBSIDIARIES

    2008
EXECUTIVE INCENTIVE COMPENSATION PLAN

    

    Table
of Contents

    

    
      	 
      	
                    Page

            
	 
      	
               

            
	
              Appendix
      A

            	
              3

            
	
              Introduction

            	
                4

            
	
              Plan
      Highlights

            	
                 5

            
	
              Incentive
      Plan

            	
               
      

            
	
              Section
      I - Definitions

            	
              6-7

            
	
              Section
      II - Participation

            	
                7

            
	
              Section
      III - Activating the Plan

            	
              7-8

            
	
              Section
      IV - Calculation of Awards

            	
              8

            
	
              Section
      V - President's Special Recommendations

            	
                8

            
	
              Section
      VI - Distribution of Awards

            	
                9

            
	
              Section
      VII - Plan Administration

            	
                9

            
	
              Section
      VIII - Amendment, Modification, Suspension or
      Termination 

            	
                 9

            
	
              Section
      IX - Exclusivity

            	
               
      10

            
	
              Section
      X - Effective Date

            	
                10

            
	
              Section
      XI - Employer Relations with Participants

            	
               10

            
	
              Section
      XII - Governing Law

            	
               10

            

    

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    Appendix
A - Incentive Plan Participants and Distribution of Awards

     

    
      APPENDIX A

       

    

    
      2008
Executive Incentive Compensation Plan Pay-out Detail - 90% Baseline Budget EPS
Threshold

       

      
        
          	
                  Corporate Performance/Personal Goals %
      Split

                	 
	
                  Level

                	
                  Executive

                	 	
                  Corporate

                	 	 	
                  Personal

                	 	 	
                  Total

                	 
	
                  Level
      A

                	
                  Dietrich

                	 	 	
                  100%

                	 	 	 	
                  0%

                	 	 	 	
                  100%

                	 
	
                  Level
      B-1

                	
                  Chewens

                	 	 	
                  66%

                	 	 	 	
                  34%

                	 	 	 	
                  100%

                	 
	
                  Level
      B-2

                	
                  Raven

                	 	 	
                  50%

                	 	 	 	
                  50%

                	 	 	 	
                  100%

                	 
	
                  Level
      C

                	
                  Levy

                	 	 	
                  50%

                	 	 	 	
                  50%

                	 	 	 	
                  100%

                	 
	
                  Level
      C

                	
                  Scarlett

                	 	 	
                  50%

                	 	 	 	
                  50%

                	 	 	 	
                  100%

                	 
	
                  Level
      C

                	
                  Stagliano

                	 	 	
                  50%

                	 	 	 	
                  50%

                	 	 	 	
                  100%

                	 

        

         

        
          
            	 
      	 
      	
                    Total
      Level A*

                  
	
                    Incentive Threshold
      Payout - $1.472

                  	 
      	
                    48.0%

                  
	
                    Level
      2 - $1.512

                  	 
      	
                    51.0%

                  
	
                    Level
      3 - $1.553

                  	 
      	
                    54.0%

                  
	
                    Level
      4 - $1.594

                  	 
      	
                    57.0%

                  
	
                    Base Line Budget -
      $1.635

                  	 
      	
                    60.0%

                  
	
                    Level
      6 - $1.717

                  	 
      	
                    70.0%

                  
	
                    Level
      7 - $1.799

                  	 
      	
                    80.0%

                  
	
                    Level
      8 - $1.880

                  	 
      	
                    90.0%

                  
	
                    Maximum Incentive Payout
      - $1.962

                  	 
      	
                    100.0%

                  

          

           

          
            
              	 
      	 	
                      Corp.
      Payout Level B-1

                    	
                      Pers.
      Payout Level B-1

                    	
                      Total
      Level B-1*

                    	 
      	
                      Corp.
      Payout Level B-2

                    	
                      Pers.
      Payout Level B-2

                    	
                      Total
      Level B-2*

                    
	
                      Incentive Threshold
      Payout - $1.472

                    	 	
                      24.8%

                    	
                      12.8%

                    	
                      37.6%

                    	 
      	
                      18.8%

                    	
                      18.8%

                    	
                      37.6%

                    
	
                      Level
      2 - $1.512

                    	 	
                      26.4%

                    	
                      13.6%

                    	
                      40.0%

                    	 
      	
                      20.0%

                    	
                      20.0%

                    	
                      40.0%

                    
	
                      Level
      3 - $1.553

                    	 	
                      27.9%

                    	
                      14.4%

                    	
                      42.3%

                    	 
      	
                      21.2%

                    	
                      21.1%

                    	
                      42.3%

                    
	
                      Level
      4 - $1.594

                    	 	
                      29.5%

                    	
                      15.2%

                    	
                      44.7%

                    	 
      	
                      22.3%

                    	
                      22.4%

                    	
                      44.7%

                    
	
                      Base Line Budget -
      $1.635

                    	 	
                      31.0%

                    	
                      16.0%

                    	
                      47.0%

                    	 
      	
                      23.5%

                    	
                      23.5%

                    	
                      47.0%

                    
	
                      Level
      6 - $1.717

                    	 	
                      38.8%

                    	
                      20.0%

                    	
                      58.8%

                    	 
      	
                      29.4%

                    	
                      29.4%

                    	
                      58.8%

                    
	
                      Level
      7 - $1.799

                    	 	
                      46.5%

                    	
                      24.0%

                    	
                      70.5%

                    	 
      	
                      35.3%

                    	
                      35.2%

                    	
                      70.5%

                    
	
                      Level
      8 - $1.880

                    	 	
                      54.3%

                    	
                      28.0%

                    	
                      82.3%

                    	 
      	
                      41.1%

                    	
                      41.2%

                    	
                      82.3%

                    
	
                      Maximum Incentive Payout
      - $1.962

                    	 	
                      62.0%

                    	
                      32.0%

                    	
                      94.0%

                    	 
      	
                      47.0%

                    	
                      47.0%

                    	
                      94.0%

                    

            

          

        

         

        
          
            	 
      	 
      	
                    Corp.
      Payout Level C

                  	
                    Pers.
      Payout Level C

                  	
                    Total
      Level C*

                  
	
                    Incentive Threshold
      Payout - $1.472

                  	 
      	
                    12.4%

                  	
                    12.4%

                  	
                    24.8%

                  
	
                    Level
      2 - $1.512

                  	 
      	
                    13.2%

                  	
                    13.2%

                  	
                    26.4%

                  
	
                    Level
      3 - $1.553

                  	 
      	
                    14.0%

                  	
                    13.9%

                  	
                    27.9%

                  
	
                    Level
      4 - $1.594

                  	 
      	
                    14.7%

                  	
                    14.8%

                  	
                    29.5%

                  
	
                    Base Line Budget -
      $1.635

                  	 
      	
                    15.5%

                  	
                    15.5%

                  	
                    31.0%

                  
	
                    Level
      6 - $1.717

                  	 
      	
                    19.4%

                  	
                    19.4%

                  	
                    38.8%

                  
	
                    Level
      7 - $1.799

                  	 
      	
                    23.3%

                  	
                    23.2%

                  	
                    46.5%

                  
	
                    Level
      8 - $1.880

                  	 
      	
                    27.1%

                  	
                    27.2%

                  	
                    54.3%

                  
	
                    Maximum Incentive Payout
      - $1.962

                  	 
      	
                    31.0%

                  	
                    31.0%

                  	
                    62.0%

                  

          

          
            	 
      	 
      	 
      	 
      	 
      
	
                    *
      % of base salary at appropriate level

                  	 
      	 
      	 
      	 
      

          

        

        
 

        
          
            
               

            

            
              3

              
                

              

            

            
               

            

          

        

      

    

     

    NBT
BANCORP INC. AND SUBSIDIARIES

    

    

    Introduction

    

    

    It is
important to examine the benefits that accrue to the organization through the
operation of the Executive Incentive Compensation Plan (EICP).  The
Plan impacts directly on the success of the organization and its purpose can be
summarized as follows:

    

    

    *      Provides
Motivation:  The opportunity for incentive awards provides
Executives with the impetus to "stretch" for challenging, yet attainable,
goals.

    

    

    *      Provides
Retention:  By enhancing the organization's competitive
compensation posture.

    

    

    *      Provides Management Team
Building:  By making the incentive award dependent on the
attainment of organization goals, a "team orientation" is fostered among the
participant group.

    

    

    *      Provides Individual
Motivation:  By encouraging the participant to make significant
personal contribution to the corporate effort.

    

    

    *   Provides Competitive
Compensation Strategy:  The implementation of incentive
arrangements is competitive with current practice in the banking
industry.

    

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

     

    Highlights
of the 2008 Executive Incentive Compensation Plan (EICP) are listed
below:

    

    

    
      	
              1.

            	
              The
      Plan is competitive compared with similar sized banking organizations and
      the banking industry in general.

            

    

    

    
      	
              2.

            	
              The
      Compensation Committee of the Board of Directors controls all aspects of
      the Plan.

            

    

    

    
      	
              3.

            	
              All
      active Executives are eligible for
  participation.

            

    

    

    
      	
              4.

            	
              The
      financial criteria necessary for Plan operation consist of achieving
      certain levels of Earnings Per Share (EPS) for the Company and its
      Subsidiaries as applicable.   The
      Committee may provide in any such Award that any evaluation of performance
      may include or exclude any of the following events that occur during a
      Performance Period: (a) asset write-downs; (b) litigation or claim
      judgments or settlements; (c) the effect of changes in tax laws,
      accounting principles, or other laws or provisions affecting reported
      results; (d) any reorganization and restructuring programs; (e)
      extraordinary nonrecurring items as described in Accounting Principles
      Board Opinion No. 30 and/or in management’s discussion and analysis of
      financial condition and results of operations appearing in the Company’s
      annual report to shareholders for the applicable year; (f) acquisitions or
      divestitures and related expenses; and (g) foreign exchange gains and
      losses. To the extent such inclusions or exclusions affect Awards to
      Covered Employees; they shall be prescribed in a form that meets the
      requirements of Code Section 162(m) for
  deductibility.

            

    

    

    
      	
              5.

            	
              Incentive
      distributions will be made during the first quarter of the year following
      the Plan Year and will be based on the matrix in Appendix
    A.

            

    

    

    
      	
              6.

            	
              Incentive
      awards will be based on attainment of corporate goals.  Total
      incentive awards may contain Corporate, Subsidiary, Divisional and
      Individual components.  The Corporate, Subsidiary and Divisional
      components are awarded by virtue of performance related to pre-established
      goals and the Individual component is awarded by virtue of individual
      performance related to individual goals.  No bonus will be paid
      unless the Corporation achieves the threshold EPS goal set forth in
      Appendix A.

            

    

    

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

     

    NBT
BANCORP INC. AND SUBSIDIARIES

    

    The Board
of Directors has established this 2008 Executive Incentive Compensation
Plan.  The purpose of the Plan is to meet and exceed financial goals
and to promote a superior level of performance relative to the competition in
our market areas.  Through payment of incentive compensation beyond
base salaries, the Plan provides reward for meeting and exceeding financial
goals.

    

    SECTION
I – DEFINITIONS

    

    Various
terms used in the Plan are defined as follows:

    

    Award:  An award
granted under this Plan.

    

    

    Base Salary: The base salary
at the end of the Plan Year, excluding any bonuses, contributions to Executive
benefit programs, or other compensation not designated as salary.

    

    Board of
Directors:  The Board of Directors of NBT Bancorp
Inc.

    

    CEO:  The CEO of NBT Bancorp
Inc.

    

    Code:  The Internal
Revenue Code of 1986, as now in effect or as hereafter amended.

    

    Corporate, Subsidiary and Divisional
Goals:  Those pre-established objectives and goals of NBT
Bancorp Inc. or its Subsidiaries and Divisions which are required to activate
distribution of awards under the Plan.

    

    Covered Employee:  A
Participant who is a Covered Employee within the meaning of Section 162(m)(3) of
the Code.

    

    Individual
Goals:    Refers to the performance standards
established by the plan participant and agreed to by the
supervisor.  The participant shall stray from using standards tied to
day to day responsibilities and shall strive to achieve such goals that shall be
considered value-added and, where possible, support the strategic objectives of
the Company.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    Compensation
Committee:  The Compensation and Benefits Committee of the NBT
Bancorp Inc. Board of Directors.

    

    Plan
Participant:  An eligible Executive as recommended by the CEO
and approved by the Compensation Committee for participation for the Plan
Year.

    

    Plan Year:  The 2008
calendar year.

    

    SECTION
II - ELIGIBILITY TO PARTICIPATE

    

    To be
eligible for an award under the Plan, a Plan participant must be an Executive in
full-time service at the start and close of the calendar year and at the time of
the award unless mutually agreed upon prior to the Executive leaving the
company.  Newly hired employees may be recommended by the CEO and
approved by the Compensation Committee as eligible for an award as determined by
their date of hire or any relevant employment agreement.  A Plan
participant must be in the same or equivalent position, at year-end as they were
when named a participant or have been promoted during the course of the year, to
be eligible for an award.  If a Plan participant voluntarily leaves
the company prior to the payment of the award, he/she is not eligible to receive
an award unless mutually agreed upon prior to the Executive leaving the
company.  However, if the active full-time service of a participant in
the Plan is terminated by death, disability, retirement, or if the participant
is on an approved leave of absence, an award may be recommended for such a
participant based on the proportion of the Plan Year that he/she was in active
service.

    

    SECTION
III - ACTIVATING THE PLAN

    

    If and to
the extent that the Committee determines that a bonus to be granted under the
Plan to a Plan participant who is designated by the Compensation Committee as
likely to be a Covered Employee should qualify as “performance-based
compensation” for purposes of Code Section 162(m), the bonus as to that Plan
participants shall be determined consistently with the terms of the NBT Bancorp
Inc. 2008 Omnibus Incentive Plan.

    

    The
operation of the Plan is predicated on attaining and exceeding management
performance goals.  The goals will consist of the attainment of
certain Earnings Per Share (EPS) levels as applicable.  Non-recurring
events including changes in tax laws and accounting rules may be excluded from
the financial results at the discretion of the CEO and upon approval of the
Compensation Committee; subject to the terms of the NBT Bancorp Inc. 2008
Omnibus Incentive Plan as applied to any Covered Employee whose bonus is
intended to qualify for purposes of Code Section 162(m).

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    EPS goals
shall be established not later than 90 days after the beginning of any
performance period applicable to the bonus, or at such other date as may be
required or permitted for “performance-based compensation” under Code Section
162(m).  In addition, the maximum value of a bonus awarded under the
Plan to a single Covered Employee may not exceed $2,000,000 per Plan
Year.

    

    Prior to
payment of any bonus amount under the Plan to a Covered Employee whose bonus is
intended to qualify for purposes of Code Section 162(m), the Compensation
Committee shall certify in writing that the EPS goal(s) and all other material
terms stated herein have been attained.  For this purpose, the
approved minutes of a Compensation Committee meeting in which a certification is
made shall be treated as a written certification.

    

    The
Corporation must achieve a threshold EPS goal set forth in Appendix A to trigger
an award pursuant to the terms of this Plan.  The bonus awards can
range from 0 to 200% of the target award for Plan participants.

    

    SECTION
IV - CALCULATION OF AWARDS

    

    The
Compensation Committee designates the incentive formula as shown in Appendix
A.  The Compensation Committee will make final decisions with respect
to all incentive awards and will have final approval over all incentive
awards.  Prior to payment of any bonus amount under the Plan to a
Covered Employee whose bonus is intended to qualify for purposes of Code Section
162(m), the Compensation Committee shall certify in writing that the EPS goal(s)
and all other material terms stated herein have been attained.  For
this purpose, the approved minutes of a Compensation Committee meeting in which
a certification is made shall be treated as a written certification. The
individual participant data regarding maximum award and formulas used in
calculation has been customized and appears as Appendix A.

    

    SECTION
V - SPECIAL RECOMMENDATIONS

    

    As long
as the threshold EPS goal is met, the CEO will recommend to the Compensation
Committee the amounts to be awarded to individual participants in the incentive
Plan.  The CEO may recommend a change outside the formula to a bonus
award (increase or decrease) to an individual participant by a specified
percentage based on assessment of special individual performance outside the
individual goals or based on special circumstances that may have occurred during
the plan year; provided, however that as to a Covered Employee whose bonus is
intended to qualify for purposes of Code Section 162(m), only the Compensation
Committee has the authority to make a change outside the formula to a bonus
award and it may exercise its discretion only to reduce the bonus
award.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    SECTION
VI - DISTRIBUTION OF AWARDS

    

    Distribution
of the EICP will be made during the first quarter of the year following the
plan.  Distribution of the award must be approved by the Compensation
Committee.

    

    In the
event of death, any approved award earned under the provisions of this plan will
become payable to the designated beneficiary of the participant as recorded
under the Company’s group life insurance program; or in the absence of a valid
designation, to the participant's estate.

    

    SECTION
VII - PLAN ADMINISTRATION

    

    The
Compensation Committee shall, with respect to the Plan have full power and
authority to construe, interpret, manage, control and administer this Plan. The
Committee shall decide upon cases in conformity with the objectives of the Plan
under such rules as the Board of Directors may establish.

    

    Any
decision made or action taken by NBT Bancorp Inc., the Board of Directors, or
the Compensation Committee arising out of, or in connection with, the
administration, interpretation, and effect of the Plan shall be at their
absolute discretion and will be conclusive and binding on all
parties.  No member of the Board of Directors, Compensation Committee,
or employee shall be liable for any act or action hereunder, whether of omission
or commission, by a Plan participant or employee or by any agent to whom duties
in connection with the administration of the Plan have been delegated in
accordance with the provision of the Plan.

     

    SECTION
VIII - AMENDMENT, MODIFICATION, SUSPENSION OR TERMINATION

    

    NBT
Bancorp Inc. reserves the right, by and through its Board of Directors to amend,
modify, suspend, reinstate or terminate all or part of the Plan at any
time.  The Compensation Committee will give prompt written notice to
each participant of any amendment, suspension or termination or any material
modification of the Plan.  In the event of a merger or acquisition,
the Plan and related financial formulas may be reviewed and adjusted to take
into account the effect of such activities.

    

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    

     

    SECTION
IX – NONEXCLUSIVITY

    

    NBT
Bancorp Inc. reserves the right, by and through its Board of Directors and
Compensation Committee to award bonus and other forms of incentive compensation
outside the terms of this Plan.

    

    SECTION
X - EFFECTIVE DATE OF THE PLAN

    

    The
effective date of the Plan shall be January 1, 2008.

    

    SECTION
XI - EMPLOYER RELATION WITH PARTICIPANTS

    

    Neither
establishment nor the maintenance of the Plan shall be construed as conferring
any legal rights upon any participant or any person for a continuation of
employment, nor shall it interfere with the right of an employer to discharge
any participant or otherwise deal with him/her without regard to the existence
of the Plan.

    

    SECTION
XII - GOVERNING LAW

    

    Except to
the extent pre-empted under federal law, the provisions of the Plan shall be
construed, administered and enforced in accordance with the domestic internal
law of the State of New York.  In the event of relevant changes in the
Internal Revenue Code, related rulings and regulations, changes imposed by other
regulatory agencies affecting the continued appropriateness of the Plan and
awards made thereunder, the Board may, at its sole discretion, accelerate or
change the manner of payments of any unpaid awards or amend the provisions of
the Plan.

    

    
10

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