Document:

EX-10.16

Exhibit 10.16

First Interstate BancSystem, Inc. 2006 Equity Compensation Plan

Restricted Stock Grant Agreement

PARTICIPANT: Lyle R. Knight

DATE OF GRANT:  March 2, 2009

This Restricted Stock Grant Agreement (“Agreement”) is made and entered into as of the date
specified above between First Interstate BancSystem, Inc., a Montana corporation (the “Company”),
and the above named Participant, an employee of the Company.

The Company and Participant agree as follows:

	1.	 	Precedence of Plan. This Agreement is subject to and shall be construed in
accordance with the terms and conditions of the First Interstate BancSystem, Inc. 2006 Equity
Compensation Plan (the “Plan”), as now or hereinafter in effect. Any capitalized terms that
are used in this Agreement without being defined and that are defined in the Plan shall have
the meaning specified in the Plan.
	 
	2.	 	Grant of Restricted Stock Benefit. Participant is hereby granted a Restricted Stock
Benefit of 3,557 shares of Common Stock (the “Shares”).
	 
	3.	 	Vesting.

	 	a.	 	Performance Vesting. The Restricted Stock Benefit shall vest on December 31,
2010 (the “Vesting Date”) at a percentage determined by the independent members of the
Compensation Committee and shall be based upon the independent members of the
compensation committee’s assessment of Lyle’s accomplishments in the following six
areas: 1) Building a high quality leadership team to succeed him, 2) Capital, 3)
Liquidity, 4) Financial performance, 5) Loan Quality, and 6) Integration of the South
Dakota banks.
	 
	 	b.	 	Death of Participant. Upon the death of the Participant, 100% of the
Restricted Stock Benefit shall vest and become exercisable (unless previously
forfeited).
	 
	 	c.	 	Dissolution or Change in Control. As provided in the Plan, if FIBS is
Dissolved or if FIBS is a party to a merger, reorganization, or consolidation in which
FIBS is not the surviving corporation (a “Change in Control”), 100% of the Restricted
Stock Benefit shall vest and become exercisable (unless previously forfeited).

	4.	 	Unvested Shares Subject to Forfeiture. In the event that Participant terminates
service with the Company for any reason prior to the Vesting Date, including disability,
voluntary or involuntary termination of employment, any unvested portion of the Shares shall
be forfeited to the Company as of the date of termination of service.
	 
	5.	 	Stock Register and Certificates. The Shares shall be recorded in the stock register
of the Company in the name of Participant. A stock certificate or certificates representing
the Shares shall be registered in the name of Participant, but such certificates shall remain
in the custody of the Company. Participant shall deposit with the Company a Stock

			
	 	 	 
	 
	Restricted Stock Grant Agreement
	 	1

 

 

	 	 	Assignment Separate from Certificate in the form attached below as Exhibit A,
endorsed in blank, so as to permit retransfer to the Company of all or a portion of the
Shares that shall be forfeited or otherwise not become vested in accordance with the Plan
and this Agreement.
	 
	6.	 	Rights with Respect to Shares. Participant shall have the right to vote the Shares
(to the extent of the voting rights of said Shares, if any), to receive and retain all regular
cash dividends and such other distributions as the Board of Directors of the Company may, in
its discretion, designate, pay or distribute on such Shares, and to exercise all other rights,
powers and privileges of a holder of Common Stock with respect to such Shares, except as set
forth in this Agreement and the Plan.
	 
	7.	 	Responsibility for Taxes. Participant may complete and file with the Internal
Revenue Service an election in substantially the form attached hereto as Exhibit B
pursuant to Section 83(b) of the Internal Revenue Code (“Code”) to be taxed currently on the
fair market value of the Shares, without regard to the vesting restrictions set forth in this
Agreement. Participant shall be responsible for all taxes associated with the acceptance of
the Restricted Stock Benefit, including any tax liability associated with the representation
of fair market value if the election is made pursuant to Code Section 83(b).
	 
	8.	 	Shareholders’ Agreement. Coincident with the vesting of the Shares and as a
condition precedent to the Company’s obligation to deliver the Shares to Participant,
Participant shall execute and deliver to the Company Participant’s agreement to be bound by
the terms of the current form of applicable Shareholder’s Agreement utilized by the Company.
	 
	9.	 	General Provisions.

	 	a.	 	Withholding. Participant shall reimburse the Company, in cash, by certified or
bank cashier’s check, or any other form of legal payment permitted by the Company for
any federal, state or local taxes required by law to be withheld with respect to the
vesting of the Shares. The Company shall have the right to deduct from any salary or
other payments to be made to Participant any federal, state or local taxes required by
law to be so withheld. The Company’s obligation to deliver a certificate to
Participant representing the Shares upon vesting of the Shares is subject to the
payment by Participant of any applicable federal, state and local withholding tax.
	 
	 	b.	 	Receipt of Plan. By entering into this Agreement, Participant acknowledges (i)
that he or she has received and read a copy of the Plan and (ii) that this Agreement is
subject to and shall be construed in accordance with the terms and conditions of the
Plan, as now or hereinafter in effect.
	 
	 	c.	 	Legends. Certificates representing the Shares prior to vesting shall contain
the following legend or a legend similar thereto:

	 	 	 	THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE SUBJECT TO
THE PROVISIONS OF THE COMPANY’S 2006 EQUITY COMPENSATION PLAN AND AN

			
	 	 	 
	 
	Restricted Stock Grant Agreement
	 	2

 

 

	 	 	 	AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER WHEREBY THE TRANSFER
IN ANY MANNER OF SUCH SHARES OF STOCK OR ANY INTEREST THEREIN IS RESTRICTED
AND THE SHARES OF STOCK ARE SUBJECT TO FORFEITURE. A COPY OF SAID PLAN AND
SAID AGREEMENT MAY BE INSPECTED AT THE PRINCIPAL OFFICE OF THE COMPANY.

	 	 	 	Certificates may also contain such other legends and transfer restrictions as the
Company shall deem reasonably necessary or desirable, including, without limitation,
legends restricting transfer of the Common Stock until there has been compliance
with federal and state securities laws.
	 
	 	d.	 	Not an Employment Contract. This Agreement is not an employment contract and
nothing in this Agreement shall be deemed to create in any way whatsoever any
obligation on the part of Participant to remain in the Service of the Company, or of
the Company to continue Participant in the Service of the Company.
	 
	 	e.	 	Specific Enforcement. Because of the unique value of the Shares, in addition
to any other remedies that the Company may have upon the breach of the agreements
contained herein, the obligations of Participant shall be specifically enforceable.
	 
	 	f.	 	Costs of Enforcement. In any action at law or in equity to enforce any of the
provisions or rights under this Agreement, the unsuccessful party of such litigation,
as determined by any court of competent jurisdiction in a final judgment or decree,
shall pay the successful party or parties all costs, expenses and reasonable attorneys’
fees incurred therein by such party or parties (including without limitation such
costs, expenses and fees on any appeals), and if such successful party shall recover
judgment in any action or proceeding, such costs, expenses and attorneys’ fees shall be
included as part of the judgment.
	 
	 	g.	 	Further Action. The parties agree to execute such further instruments and to
take such further action as reasonably may be necessary to carry out the intent of this
Agreement.
	 
	 	h.	 	Interpretation. The interpretations and constructions of any provision of and
determinations on any question arising under the Plan or this Agreement shall be made
by the Company, and all such interpretations, constructions and determinations shall be
final and conclusive as to all parties. This Agreement, as issued pursuant to the
Plan, constitutes the entire agreement between the parties pertaining to the subject
matter hereof and supersedes all prior and contemporaneous agreements, representations
and understandings. The invalidity or unenforceability of any provision hereof shall
in no way affect the validity or enforceability of any other provision hereof. This
Agreement may be executed in counterparts, all of which shall be deemed to be one and
the same instrument, and it shall be sufficient for each party to have executed at
least one, but not necessarily the same, counterpart. The headings contained in this
Agreement are for reference purposes only and shall not affect the meaning or
interpretation of this Agreement in any way.

			
	 	 	 
	 
	Restricted Stock Grant Agreement
	 	3

 

 

	 	i.	 	Assignment. This Agreement shall be binding upon the parties and their
respective legal representatives, beneficiaries, successors and assigns.
	 
	 	j.	 	Notices. All notices or other communications that are required to be given or
may be given to either party pursuant to the terms of this Agreement shall be in
writing and shall be delivered personally or by registered or certified mail, postage
prepaid, to the address of the parties as set forth following the signature of such
party. Notice shall be deemed given on the date of delivery in the case of personal
delivery or on the delivery or refusal date as specified on the return receipt in the
case of registered or certified mail. Either party may change its address for such
communications by giving notice thereof to the other party in conformity with this
section.
	 
	 	k.	 	Governing Law; Venue. This Agreement and the rights and obligations of the
parties hereto shall be governed by and construed in accordance with the laws of the
State of Montana. The parties agree that any action brought by either party to
interpret or enforce any provision of the Plan or this Agreement shall be brought in,
and each party agrees to, and does hereby, submit to the jurisdiction and venue of, the
appropriate state or federal court for the district of Montana.

IN WITNESS WHEREOF, the Company, by a duly authorized officer of the Company, and Participant have
executed this Agreement on March 2, 2009, effective as of the date of grant.

	 	 	 
	FIRST INTERSTATE BANCSYSTEM, INC.

	 	PARTICIPANT
	 
	 	 
	By: /s/ JAMES W. HAUGH
 

	 	/s/ LYLE R. KNIGHT 

	James W. Haugh

	 	Signature
	 
	 	 
	 

	 	Lyle R. Knight 

	Title: Chairman, Compensation Committee

	 	Print Name
	 
	 	 
	 

	 	Address: 2555 Blue Creek Road
	401 No. 31st St.

	 	Billings, MT 59101
	Billings, MT 59101
	 	 

			
	 	 	 
	 
	Restricted Stock Grant Agreement
	 	4

 

 

Exhibit A

Stock Assignment Separate From Certificate

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto First Interstate
BancSystem, Inc., a Montana corporation (the “Company”)
_________________________________ (________)
shares of Common Stock of the Company, standing in the undersigned’s name on the books of said
corporation represented by Certificate No. _________________, and does hereby irrevocably
constitute and appoint the Secretary of the Company as attorney to transfer the said stock on the
books of the said corporation with full power of substitution in the premises.

	 	 	 	 	 
	Dated:
 

	 	
 
Signature
	 	 
	 
	 	 	 	 
	 

	 	 
Print Name	 	 

 
Stock Assignment Separate from Certificate

 

 

Exhibit B

Election to Include Value of Restricted Property in Gross Income

Pursuant to Section 83(b) of the Internal Revenue Code

This election form is to be filed with the IRS Service Center with which the Participant files his
or her return. It should be mailed “Certified Mail” and postmarked by the post office to establish
proof of timely filing. Timely filing requires such mailing to occur within thirty (30) days
following the date of the grant. One copy must be provided to the Company and one copy must be
filed with the Participant’s tax return for the taxable year of exercise. Participant may also
wish to determine the relevant state tax procedure for the state in which Participant resides.

Pursuant to the Restricted Stock Grant Agreement entered into by and between the undersigned
Participant and First Interstate BancSystem, Inc., a Montana corporation (the “Company”), as of
_______________,
20___ (the “Award Agreement”), Participant has acquired _________ shares of Common Stock of the Company (the
“Shares”) which are subject to a substantial risk of forfeiture under the Award Agreement.
Participant desires to make an election to have the Shares taxed under the provisions of Section
83(b) of the Internal Revenue Code of 1986, as amended (the “Code”) at the time Participant
acquired the Shares.

Therefore, pursuant to Code Section 83(b) and Treasury Regulation Section 1.83-2, Participant
hereby makes an election to report as taxable income in _______________ [YEAR] the Shares’ fair market value on
____________________ [DATE], the date on which Participant acquired the Shares (or any subsequent date that may be
determined to be the date of transfer for purposes of the Code).

The following information is supplied in accordance with Treasury Regulation Section 1.83-2(e):

	1.	 	The name, address and social security number of Participant: 

 

 

	2.	 	A description of the property with respect to which the election is being made:
	 
	 	 	Shares of Common Stock of First Interstate BancSystem, Inc., a Montana corporation.
	 
	3.	 	The date on which the property was transferred:                     .
	 
	 	 	The taxable year for which such election is made: Calendar Year                     .
	 
	4.	 	The restrictions to which the property is subject:
	 
	 	 	The Shares are subject to forfeiture to the Company for no consideration should
Participant’s employment with the Company terminate or should other specified events occur.
Shares vest only upon the passage of time. Upon any transfer by Participant, the Shares
will be subject to the same restrictions.

 
Section 83(b) Election

 

 

	5.	 	The fair market value on ________________, 20___, of the property with respect to which the election is being
made, determined without regard to any lapse restrictions: $____________.
	 
	6.	 	The amount paid for such property: $_________________________.
	 
	7.	 	A copy of this election has been furnished to the Secretary of the Company pursuant to Treasury
Regulations Section 1.83-2(e)(7).

	 	 	 	 	 
	 

	 	
 
Signature
	 	 
	 

	 	Print Name: 
	 	 
	 
	 	 	 	 
	 

	 	 
Date	 	 

 
Section 83(b) ElectionEX-10.17

EXHIBIT 10.17

RELOCATION SERVICES AGREEMENT

THIS AGREEMENT is between First Interstate Bank (hereinafter referred to as Company) having its
principal office at 401 North 31st Street, Billings, MT, 59116 and NRI Relocation, Inc.,
(hereinafter referred to as NRI), having its principal office at 195 Arlington Heights Road, Suite
101, Buffalo Grove, IL 60089, in order to facilitate the relocation of the Company’s transferred
employees.

     NRI shall assume the responsibility for the administration, coordination and execution of
authorized services within the guidelines of the Company’s relocation policy. In lieu of a written
policy, Company will provide specific written authorization for services with any financial limits
or restrictions outlined.

     NRI will provide the services described on Exhibits A through for the respective fees
indicated at such time they are specifically authorized by the Company.

COMPANY OBLIGATIONS

     The Company authorizes NRI to perform the services indicated on the attached Exhibits in
accordance with this Agreement. To facilitate NRI’s performance, Company hereby agrees to the
following provisions:

      Responsibility for Payment

     NRI and Company agree that Company will be held responsible for all monies due NRI and its
assigns by any Company affiliate that utilizes this Agreement.

     Company agrees to pay NRI invoices within 30 days of the date of the billing and further
agrees that interest at 1.5% per month, or fraction thereof, shall accrue for any amounts unpaid
as of 30 days following the billing date.

      Indemnity and Disclaimer

     Company agrees to indemnify NRI and its assigns with respect to any claim arising out of the
administration of this Agreement that is due to the negligence, willful misconduct, or failure of
Company, its employees, or its agents to conform to the procedures or satisfy their obligations as
set forth in this Agreement. The Company will defend such claims or authorize NRI to defend any
such claims, in which case the Company shall reimburse NRI for any reasonable costs including but
not limited to out of pocket expenses and attorney fees incurred by NRI in defending and/or
settling any claim. No settlement payment shall be reimbursable without the prior written consent
of the Company.

     NRI agrees to indemnify the Company and its assigns with respect to any claim arising out of
the administration of this Agreement that is due to the negligence, willful misconduct, or
failure of NRI, its employees, or its agents to conform to the procedures or satisfy their
obligations as set forth in this Agreement. NRI will defend such claims or authorize the Company
to defend any such claims, in which case NRI shall reimburse Company for any reasonable costs
including but not limited to out of pocket

			
	 	 	 
	Initials 	 	1

 

 

expenses and attorney fees incurred by the Company in defending and/or settling any claim. No
settlement payment shall be reimbursable without the prior written consent of the NRI.

     NRI shall not be liable for failing to comply with applicable IRS regulations, to the extent
that such liability arises from NRI’s adherence to directions from the Company.

      Assignment

     Company shall have the right to assign this Agreement, provided that no such assignment shall
relieve Company of any of its obligations hereunder. Each assignment shall be subject and
subordinate to the rights of NRI under this Agreement and to any renewal, amendment or
modification thereof.

      Legality

     Should any one or more of the clauses of this Agreement be declared void or in violation of
the law, this Agreement shall remain in effect, exclusive of such clause or clauses, to the
fullest extent of the law. The terms of this Agreement shall be interpreted under the laws of
Illinois.

      Binding Obligations

     This Agreement and all rights and duties hereunder shall inure to the benefit of and shall be
binding upon NRI and Company and their respective representatives, administrators, executors,
heirs, successors and assigns.

      Entire Agreement

     This Agreement sets forth all covenants, promises, agreements, conditions, and understandings
between NRI and Company regarding Company’s relocation process. No subsequent alteration,
amendment, change or addition to this Agreement shall be binding upon NRI or Company unless
reduced to writing and signed by both parties.

      Notices

     Whenever any demand, request, approval, consent or notice (“notice”) shall or may be given
by one party to the other, notice shall be addressed to the parties at their respective addresses
as specified on page one of this Agreement and delivered by (i) hand, (ii) a nationally recognized
overnight express courier, (iii) registered or certified mail return receipt requested, or (iv)
via facsimile, provided a copy of said notice is sent in accordance with (i), (ii) or (iii) within
two (2) business days following facsimile transmission. The date of actual receipt shall be deemed
the date of service of notice. In the event an addressee refuses to accept delivery, however,
notice shall then be deemed to have been served on either (i) the date the hand delivery is
refused, (ii) the next business day in the case of delivery by overnight courier, or (iii) three
(3) business days after mailing the notice in the case of registered or certified mail. Either
party may, at any time, change its notice address by giving the other party notice, in accordance
with the above, stating the change and setting forth the new address.

      Relationship of Parties

     NRI is performing duties as required by this Agreement as an independent contractor of
Company. NRI is in no circumstances acting as an agent of Company.

			
	 	 	 
	Initials 	 	2

 

 

      Termination

     This Agreement may be terminated by either party upon ninety (90) days written notice. All
transactions active with NRI at the date of notice of termination will be handled by NRI in
accordance with this Agreement; or at the Company’s direction, files will be transferred to the
Company or its nominee; in this event, Company shall pay NRI total charges due for any services
previously rendered. In the event there are any excess funds from the program, NRI shall pay such
amount to Company or its nominee.

	 	 	 
	First Interstate Bank

	 	NRI Relocation, Inc.

	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	Lyle R. Knight
	 	 
	 	By:
	 	/s/ Susan L. Bender
	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Lyle R. Knight
	 	 	 	 	 	Susan L. Bender	 	 
	 	 	 Its: President and Chief Executice Officer	 		 	 	 	Its: Chief Executice Officer	 	 
	 
	Date: 4-25-08	 	 	 	Date: 4-30-08	 	 

			
	 	 	 
	Initials 	 	3

 

 

EXHIBIT A

HOME SALE ASSISTANCE

Realtor Selection and Assessment

NRI objectively evaluates and investigates Realtors for proven sales experience. Agents are judged
on their reputation, relocation training, ability to respond to the specific relocation marketing
assignments, and their specific experience in managing similarly priced properties in the employee’s
area. Every Realtor selected by NRI is evaluated on each assignment in four areas: timeliness,
employee impression, report content, and, most importantly, the accuracy of the value as compared
to the ultimate sale price.

Market Analysis

Each of the two recommended Realtors will separately visit the employee’s property to conduct a
property inspection, and provide a capabilities presentation to the employee and/or spouse. Working
independently, each Realtor completes the ERC Comprehensive Market Analysis. The Realtors’
estimates of market value must be supported by suitable market data, including comparable sale
statistics, current listings, and an analysis of property and market conditions.

Marketing Strategies

NRI applies its marketing expertise and market data collected by the Realtors to assist in
developing the marketing strategy, and to offer advice regarding price and condition to the
employee within one (1) business day following receipt of agent information. NRI audits both
Realtors’ reports to ensure consistency, thoroughness, and the logic of their conclusions. Any
discrepancies are reconciled before the completed plan is recommended to the employee.

Marketing Implementation

The Realtor is managed closely and interviewed in detail about various plan outcomes. This
includes the results of showings, buyer comments, other area home sales, and overall
effectiveness. NRI requires the chosen real estate agent to provide weekly feedback on showings
and market developments impacting the property. Written Realtor reports are not solely relied
upon, but are used to support changes in strategy.

NRI will provide feedback to the employee on Realtor performance, showing activity, and buyer
reactions. NRI will contact the employee as often as necessary but not less than every 7 to 10
days throughout the process. Modifications to the process are made accordingly.

FEE: $1,595 will be assessed only if employee does not list with a Realtor referred by NRI. This
service is required in conjunction with Acquisition & Closing. Properties unsold after 150 days
will be assessed $350 per month, or any fraction thereof.

			
	 	 	 
	Initials 	 	4

 

 

EXHIBIT B

ACQUISITION AND CLOSING

NRI will administer both the acquisition and closing transactions of an employee’s residence per
the Company relocation policy. Based on the Company policy and the Employee’s eligibility, NRI will
either acquire the residence based on appraisals and deliver to the employee a contract to purchase
the home at the appraised value, or NRI will provide a blank contract to purchase to be completed
with like kind terms at the time employee receives an acceptable offer from a potential buyer. Once
acquired, NRI will process the sale and closing of the property to a third party purchaser.

When appropriate, NRI will arrange for property inspections that are customary for the area. NRI
will require the employee to complete a homeowners’ disclosure statement and any other disclosure
documents required by applicable law. NRI will provide copies of any inspections and disclosure
statements to potential buyers.

In preparation for the acquisition and closing of the property, NRI will obtain a title
commitment or title opinion on behalf of the transferee to ensure good and marketable title.

The employee will have a period of time to sell the residence to NRI. The employee, together with
any and all other owners of the residence, can make an offer to sell the residence to NRI only by
signing and returning, within said period of time, the Contract of Sale and other documents
provided to the employee.

If, before the employee has made an offer to sell the residence to NRI at the appraised value, or
in the event of a no appraisals, the employee receives a written offer from a potential buyer that
would result in the employee receiving a net cash return greater than that which the appraised
value sale would provide, NRI will change the appraised value to an amount equal to the potential
buyer’s offer (the “Buyer’s Value”), provided NRI determines that the following conditions are
met:

	 	•	 	The potential buyer is reasonably likely to receive adequate financing to
complete the sale at the offered price and on the terms and conditions described in
the offer; and
	 
	 	•	 	The offer from the potential buyer is at a fixed price and does not depend on
any other event such as selling another property or obtaining interim financing
arrangements other than a standard mortgage contingency.

The employee must do the following in order to offer to sell the residence to NRI at the Buyer’s
Value:

	 	•	 	Within two (2) business days of NRI’s receipt of notification of the
potential buyer and the Buyer’s Value, offer to sell the residence to NRI at
the Buyer’s Value; and
	 
	 	•	 	Within ten (10) business days thereafter, the employee must execute the
Contract of Sale and return it to NRI together with the buyer’s offer. The
potential buyer’s offer must be signed by the buyer but not signed by the
employee.

Working with the buyer’s lender, Realtor, and local escrow agent NRI will ensure that all terms
and conditions of each transaction are met. NRI will:

	 	•	 	Prepare, accept, and coordinate the flow of
documents
	 
	 	•	 	Verify all seller-paid closing costs

			
	 	 	 
	Initials 	 	5

 

 

	 	•	 	Prepare closing statements
	 
	 	•	 	Verify and collect any funds and pay out funds to the transferee or others in
accordance with the terms and conditions stated
	 
	 	•	 	Make certain all documents are executed correctly
	 
	 	•	 	Arrange for the recording of documents as necessary
	 
	 	•	 	Thoroughly audit all funds and documentation, and submit a Property Sold Report
to the Company upon final reconciliation.

In the event that the Employee delivers an outside purchaser to NRI prior to NRI determining that
the Employee can deliver clear and marketable title, the Company authorizes NRI to enter into the
contract of sale with the outside purchaser and will indemnify NRI for all expenses, if any, that
may result from any lawsuit by the outside purchaser should the Employee be unable to provide
clear and marketable title.

Residence

For purposes of this Agreement, the terms “home” and “residence” shall be interchangeable.
Residence is hereby defined as an employee owned detached single-family dwelling, within a city,
town, village, or established suburb, and having a lot typical of single-family dwellings in the
immediate vicinity; a condominium, a town home, a duplex provided the non-resident half of the
property is not leased. In the event Company requests NRI to perform services under this Agreement
for a residence not defined by the above, NRI reserves the right to charge an additional mutually
agreed upon fee for the added time required by NRI to perform the functions of this Agreement.

Responsibility for Service Fees

The Company agrees to pay NRI all service fees itemized on the Property Sold Report (Exhibit B.1)
and will be invoiced on the Final Billing for said fees (Exhibit B.2.)

Responsibility for Financing of Property Transactions

The Company assumes responsibility for and agrees to furnish funds needed to finance the
acquisition, carrying and resale costs of each property.

In order to provide NRI with funds necessary for performance of its functions the Company shall
transfer funds, within three (3) business days, to NRI’s designated bank in the amount of 9% of
the offer price to the employee upon the receipt of the initial deposit invoice from NRI. These
funds are to cover NRI’s disbursements for expenses other than equity payments or mortgage
pay-offs. Upon the transmitted request from NRI, with verification of fund balance, Company shall
replenish the fund by wire transfer to NRI with an amount based upon 6% of the offer price to the
employee.

Prior to NRI’s release of disbursement for any funds related to employee’s Equity (including but
not limited to mortgage pay-offs, taxes, assessments), or funds required by NRI to close
the sale, NRI will transmit a copy of NRI’s invoice for the applicable amount. The Company will,
within three business days, wire transfer the funds due to NRI’s designated bank. Upon
verification of receipt of funds, NRI will release funds to the appropriate parties including
employee, lender, etc.

			
	 	 	 
	Initials 	 	6

 

 

Responsibility for Property Expenses

Upon completion of the resale of each property, NRI shall render Company a Final Bill
(Exhibit B.2) supported by a Property Sold Report showing the amount paid Company’s employee and all charges (consisting of
direct
costs, service fees, and interest, all defined herein) in connection with the property. If the
charges are less than
the amounts (9% Deposit, Equity Funding, etc.) advanced NRI by Company, NRI shall refund the
difference and
if the charges are more than the amount advanced NRI, NRI shall invoice the company the balance of
the funds owed.

Employee Payments Due NRI

In the event that the employee owes NRI funds for any reason, Company agrees that after NRI has
notified the employee and Company, and payment to NRI has not been received within thirty (30) days
of notice, NRI will include the amount on the Final Bill. However, if the Final Bill has been
rendered and paid, the amount will be requested by separate invoice itemizing amount due plus
interest to the date of the invoice. Company will assume responsibility for collection from
employee. This amount will be excluded from the cost performance tracking of this file.

FEE: $4500

			
	 	 	 
	Initials 	 	7

 

 

Exhibit B.1

SAMPLE PROPERTY SOLD REPORT

PROGRAM TYPE: BUYER VALUE OPTION

	 	 	 	 	 	 	 
	COMPANY NO.:

	 	999	 	XYZ Corporation
	FTLE NO.:

	 	99999	 	AA12
	EMPLOYEE:

	 	John Q. Smith
	 	 
	ADDRESS:

	 	123 Main Street

Naperville, IL 12345
	 	 
	 
	 	 	 	 	 	 
	PRORATION DATE:

	 	07-19-06	 	 
	RESALE DATE:

	 	07-03-06	 	 
	CLOSING DATE:

	 	08-15-07	 	 
	 
	 	 	 	 	 	 
	Purchase Price:

	 	$350,000.00	 	 
	Sale Price:

	 	$350,000.00	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	PART I: ACQUISITION / CARRYING COSTS:
	 	 	 	 	 	 	 	 	 	 	 	 
	ACQUISITION COSTS:
	 	 	 	 	 	 	 	 	 	 	 	 
	1. Relocation Appraisals
	 	 	 	 	 	 	 	 	 	 	 	 
	2. Broker’s Market Analysis
	 	 	 	 	 	 	 	 	 	 	 	 
	3. Inspections
	 	 	 	 	 	 	 	 	 	 	 	 
	4. Pre-Title Expenses
	 	$	275.00	 	 	 	 	 	 	 	 	 
	5. Title/Deed Costs — Transferee**
	 	 	 	 	 	 	 	 	 	 	 	 
	6. Title/Deed Costs — Company
	 	 	 	 	 	 	 	 	 	 	 	 
	7. Mortgage Pre-payment Penalty**
	 	 	 	 	 	 	 	 	 	 	 	 
	8. Misc. Acquisition Costs
	 	$	62.00	 	 	 	 	 	 	 	 	 
	9. TOTAL ACQUISITION COSTS
	 	 	 	 	 	$	337.00	 	 	 	0.001	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	RECURRING CARRYING COSTS:
	 	 	 	 	 	 	 	 	 	 	 	 
	10. Insurance
	 	$	38.18	 	 	 	 	 	 	 	 	 
	11. Utilities
	 	$	108.28	 	 	 	 	 	 	 	 	 
	12. Property Tax
	 	$	212.12	 	 	 	 	 	 	 	 	 
	13. Maintenance
	 	$	76.78	 	 	 	 	 	 	 	 	 
	14. Condo/Assoc./Homeowner Fees
	 	$	0.00	 	 	 	 	 	 	 	 	 
	15. Mortgage Interest
	 	$	1,072.75	 	 	 	 	 	 	 	 	 
	16. Misc. Recurring Costs
	 	$	0.00	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	17. TOTAL RECURRING COSTS
	 	 	 	 	 	$	1,508.11	 	 	 	.43	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NON-RECURRING CARRYING COSTS:
	 	 	 	 	 	 	 	 	 	 	 	 
	18. Repairs
	 	$	276.00	 	 	 	 	 	 	 	 	 
	19. Capital Improvements
	 	 	 	 	 	 	 	 	 	 	 	 
	20. Assessments
	 	 	 	 	 	 	 	 	 	 	 	 
	21. Rental Management Fees
	 	 	 	 	 	 	 	 	 	 	 	 
	22. Misc. Non-Recurring Costs
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	23. TOTAL NON-RECURRING CARRYING COSTS
	 	 	 	 	 	$	276.00	 	 	 	0.0007	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	24. (Rental Income Credit)
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	25. TOTAL CARRYING COSTS
	 	 	 	 	 	$	1,784.11	 	 	 	.51	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	26. Interest on Equity
	 	$	.00	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	27. TOTAL ACQUISITION/CARRYING COSTS
	 	 	 	 	 	$	2,121.11	 	 	 	.61	%

			
	 	 	 
	Initials 	 	8

 

 

			
	 
	 	FILE NO.: 99999                    PAGE: 2

BVO SALE

	 	 	 	 	 	 	 	 	 	 	 	 	 
	PART II: DISPOSITION / SELLING COSTS:
	 	 	 	 	 	 	 	 	 	 	 	 
	28. Broker’s Commissions
	 	$	21,000.00	 	 	 	 	 	 	 	 	 
	29. Title Costs
	 	$	295.00	 	 	 	 	 	 	 	 	 
	30. Attorney Fees
	 	$	300.00	 	 	 	 	 	 	 	 	 
	31. Escrow Fees
	 	 	 	 	 	 	 	 	 	 	 	 
	32. Document Preparation Fees
	 	 	 	 	 	 	 	 	 	 	 	 
	33. Survey
	 	 	 	 	 	 	 	 	 	 	 	 
	34. Mortgage Release Fees
	 	 	 	 	 	 	 	 	 	 	 	 
	35. State / Local Fees
	 	 	 	 	 	 	 	 	 	 	 	 
	36. Recording Fees
	 	$	30.00	 	 	 	 	 	 	 	 	 
	37. Transfer Charges
	 	$	247.50	 	 	 	 	 	 	 	 	 
	38. Closing Costs Over Limit
	 	 	 	 	 	 	 	 	 	 	 	 
	39. Closing and Other Legal Fees
	 	$	775.00	 	 	 	 	 	 	 	 	 
	40. Points
	 	 	 	 	 	 	 	 	 	 	 	 
	41. Monetary Concessions / Incentive
	 	 	 	 	 	 	 	 	 	 	 	 
	42. Misc. Disposition / Selling
	 	$	285.00	 	 	 	 	 	 	 	 	 
	43. (Gain) / Loss on Sale
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	44. TOTAL DISPOSITION / SELLING
	 	 	 	 	 	$	22,932.50	 	 	 	6.55	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PART III: ADMINISTRATIVE COSTS:
	 	 	 	 	 	 	 	 	 	 	 	 
	45. Property Fee Credit
	 	 	 	 	 	 	 	 	 	 	 	 
	46. Interest
	 	 	 	 	 	 	 	 	 	 	 	 
	47. Management Service Fee
	 	TBD	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	49. TOTAL ADMINISTRATIVE COSTS
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PART IV: TOTAL HOMESALE PROGRAM COSTS:
	 	 	 	 	 	$	25,053.61	 	 	 	7.16	%

 

			
	**	 	Expenses incurred in the acquisition process (Line 5 and Line 7), may be considered
taxable income to the employee.

			
	 	 	 
	Initials 	 	9

 

 

Exhibit B.2

Sample Final Billing

	 	 	 
	Invoice:

	 	#99999F
	Date:

	 	August 30, 2007
	 
	 	 
	Attn:

	 	John Doe

XYZ Corporation

123 Pleasant Street

City, State, Zip

	 	 	 
	File:

	 	#99999F
	Company:

	 	#999
	Employee Name:

	 	John Q. Smith
	Address:

	 	123 Main Street

Reloville, IL 12345

	 	 	 	 	 
	Total Program Cost (per attached):
	 	$	$25,053.61	 
	Less 9% Initial Deposit:
	 	 	[$31,500.00]	 
	Less Equity Funded
	 	 	[$70,000.00]	 
	 
	 	 	 
	 
	 	 	 	 
	Total Due / [Refunded]:
	 	 	[$73,456.39]	 

			
	 	 	 
	Initials 	 	10

 

 

EXHIBIT C

HOME FINDING SERVICES

Needs Assessment

Destination services are discussed with the employee during the initial interview. NRI will discuss
their housing and lifestyle requirements, explaining NRI’s services in the home finding area, and
how it integrates with their relocation policy. NRI determines the employee’s priorities and
focuses on appropriate lifestyle issues including family concerns, dual careers, and school
choices.

Realtor Selection

NRI will research Realtors in the new area and work with them to have area information sent to the
employee, plan a tour, and preview homes that will fit the employee’s needs. NRI will call the
employee back within one (1) business day to confirm the arrangements that have been made. A home
finding packet is sent to the employee.

Area Information

Local area information is readily available. Working in conjunction with the home finding agent,
materials will be sent to the employee. NRI requires that Realtors send specific information to
employees including community data such as schools, churches, park districts, available homes, cost
of living, etc. to familiarize themselves with the destination area. Any specific need of the
employee will be researched and additional information will be provided.

Area Orientation

Employees are met by the Realtor in the new location and taken on an area tour. Tour would include
the neighborhoods in relation to the Company site plus locations of shopping, schools, public
transportation, places of worship, parks and any other amenities requested.

FEE: None. NRI receives Realtor referral fee.

NOTE: In the event the employee/new hire requires Area Orientation services prior to accepting a
position; a Realtor fee may apply.

			
	 	 	 
	Initials 	 	11

 

 

Exhibit D

MOVE MANAGEMENT SERVICES

NRI will select an appropriate agent/carrier to transport the employee’s household goods. NRI, with
the assistance of its Move Management Partner, will schedule packing, pickup, shipment and delivery
of the household goods. NRI will obtain full replacement value insurance on each shipment and
provide temporary or permanent storage resources as applicable. NRI will assist in processing
insurance claims to facilitate timely resolution of disputes. NRI will pay carrier or agent
invoices directly on behalf of Client.

Tariff

All of the tariff conditions contained in the Household Goods Carrier’s Bureau Tariff 400-N and
the STB HGB 104 Exceptions Tariff, shall govern the conditions of carriage for all household goods
movements arranged by NRI Relocation, Inc.

Bottom Line Discount

A Bottom Line Discount of 57% will apply to shipments in the continental United States.

Storage in Transit Discount

A Bottom Line Discount of 45% will apply for Storage in Transit and storage related charges.
Carrier agrees that the time period before a shipment converts from storage-in-transmit to
permanent storage shall be one hundred and eighty (180) days. There will be no extra charge for
valuation coverage during Storage-in-Transit.

It is understood and agreed by NRI and by Client that nothing in this Agreement shall constitute a
carrier or an agent as the legal representative, joint venturer, partner or employee of NRI for
any purpose whatsoever.

FEE: No service fee applied by utilizing NRI supplier contracts. NRI shall bill and COMPANY agrees
to pay, all direct cost for the transportation of household goods. The COMPANY acknowledges that
NRI shall be entitled to and will collect referral fees from carriers for services performed.

			
	 	 	 
	Initials 	 	12

 

 

Exhibit E

MORTGAGE ASSISTANCE

NRI Mortgage Solutions (NRIMS) loan counselors will research home loan programs for Company
employees to offer them the best rate and terms to fit their financial goals. NRIMS utilizes Nylx
software to review mortgage products offered by eight national lenders. Through NRI Mortgage
Solutions employees will have the benefit of:

	 	•	 	Fast and free pre-approval
	 
	 	•	 	No up front fees required
	 
	 	•	 	Minimal paperwork
	 
	 	•	 	Reduced lender fees to minimize costs
	 
	 	•	 	Discounted interest rates for qualified buyers
	 
	 	•	 	Previous income of spouse included

NRI Mortgage Solutions also has programs for New Construction, Foreign Nationals, Bridge Loans and
Employer Subsidies.

NRI Mortgage Solutions will use their best efforts in making loans to employees of the Client who
meet mortgage underwriting and credit criteria. NRI does not have exclusive agreements with these
lenders and the employee is under no obligation to use NRI Mortgage Solutions. The employee is
responsible to pay the fees, expenses or costs, for their loan. If the Company provides home
purchase cost assistance, NRI Mortgage Solutions will direct bill the Company for eligible
expenses.

FEE: None

			
	 	 	 
	Initials 	 	13

 

 

Exhibit F

APPRAISAL & INVENTORY MANAGEMENT

NRI will order appraisals from two appraisers experienced in evaluating properties in the relevant
locale. The NRI Consultant will explain the appraisal process, set timetables, and answer any
questions the employee may have about the guaranteed offer process.

NRI will carefully review the appraisals for completeness, logic and accuracy. Values are
calculated according to Client policy. The appraised value of the home will be computed by
averaging the two appraisals, unless the appraisals differ by more than 5% of the higher appraisal
amount. Should the variance exceed 5%, NRI will order a third appraisal and the appraised value
will be the average of the two closest appraisals. If NRI determines that any appraisal is
inadequate it may request re-analysis and re-certification of the value by the appraiser; discard
the appraisal and obtain a new one as a replacement.

NRI will advise the employee of the value. NRI will provide documentation and notification of this
value to the Client. The NRI Consultant will discuss the appraisal reports in detail with the
Client and/or the employee as requested.

Fee: $425

Should the employee accept the guaranteed offer from NRI the home will be considered inventory. NRI
will select and retain a local real estate broker to market the property. A listing agreement will
be executed and the activities of the broker will be monitored for effectiveness.

NRI will provide liability and casualty insurance coverage and pay the carrying costs such as
taxes mortgage, utilities, repairs, and maintenance. NRI assumes responsibility for the
performance of the vendors selected.

Fee: $350 per month, or any fraction thereof after 150 days from date of initiation

			
	 	 	 
	Initials 	 	14

 

 

Memorandum

TO: Julie Castle

FROM: Lyle Knight

DATE: May 23, 2008

SUBJECT: Purchase of House

Julie,

First Interstate Bank (FIB) has entered into an agreement regarding your home in Massachusetts to
assist you in your relocation to Billings. As we have discussed, the maximum equity loss that FIB
will absorb is $350,000. FIB will pay all selling expenses as well as typical holding costs of the
house until it is sold. Those selling expenses and holding costs will not be counted toward the
$350,000 maximum loss. Any repairs to the home will be considered as part of the $350,000 maximum
equity loss.

Should the equity loss to FIB be less than $350,000, you will be granted a bonus of up to $90,000
to cover all of your current equity loss exposure, not to exceed the FIB maximum loss of $350,000.
Such bonus will be subject to tax withholding and treated as earnings to you.

Should the equity loss exceed $350,000, you have agreed to reimburse FIB.

If this memo reflects the essence of our agreement, please sign below reflecting your
consensus.

I Agree the Above Reflects Our Agreement

	 	 	 
	/s/ Julie Castle

 

Julie Castle

	 	 

See Attached Spreadsheets for Additional detail.

 

 

Castle

	 	 	 	 	 	 	 	 	 
	6/28/2004 Purchase Price
	 	$	1,940,000.00	 	 	 	 	 
	1st Mortgage
	 	$	(1,540,000.00	)	 	Bank of America	 	 
	Original Equity
	 	$	400,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	4/9/2008 Sales Price
	 	$	1,850,000.00	 	 	 	 	 
	1st Mortgage
	 	$	(1,540,000.00	)	 	 	 	 
	Paid to Castle
	 	$	310,000.00	 	 	 	 	 
	Castle Equity
	 	$	(90,000.00	)	 	 	 	 

Scenario 1 Ultimate Sales Price of 30 Autumn Lane is $1,650,000

FIB

	 	 	 	 	 	 	 	 	 
	Purchase Price
	 	$	1,850,000.00	 	 	 	 	 
	Sales Price
	 	$	(1,650,000.00	)	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	$	200,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	FIB Max Exposure
	 	$	350,000.00	 	 	 	 	 
	less current exposure
	 	$	(200,000.00	)	 	 	 	 
	 
	 	 	 	 	 	 	 
	Available to make
Castle whole
	 	$	150,000.00	 	 	 	 	 
	To Castle
	 	$	90,000.00	 	 	Bonus of $90,000	 	Castle loss = $0
	Net Cost to FIB
	 	$	290,000.00	 	 	 	 	 

Scenario 2 Ultimate Sales Price of 30 Autumn Lane is $1,600,000

FIB

	 	 	 	 	 	 	 	 	 
	Purchase Price
	 	$	1,850,000.00	 	 	 	 	 
	Sales Price
	 	$	(1,600,000.00	)	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	$	250,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	FIB Max Exposure
	 	$	350,000.00	 	 	 	 	 
	less current exposure
	 	$	(250,000.00	)	 	 	 	 
	 
	 	 	 	 	 	 	 
	Available to make
Castle whole
	 	$	100,000.00	 	 	 	 	 
	To Castle
	 	$	90,000.00	 	 	Bonus of $90,000	 	Castle loss = $0
	Net Cost to FIB
	 	$	340,000.00	 	 	 	 	 

 

 

Scenario 3 Ultimate Sales Price of 30 Autumn Lane is $1,550,000

FIB

	 	 	 	 	 	 	 	 	 
	Purchase Price
	 	$	1,850,000.00	 	 	 	 	 
	Sales Price
	 	$	(1,550,000.00	)	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	$	300,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	FIB Max Exposure
	 	$	350,000.00	 	 	 	 	 
	less current exposure
	 	$	(300,000.00	)	 	 	 	 
	 
	 	 	 	 	 	 	 
	Available to make
Castle whole
	 	$	50,000.00	 	 	 	 	 
	To Castle
	 	$	50,000.00	 	 	Bonus of $50,000	 	Castle loss = $40,000
	Net Cost to FIB
	 	$	350,000.00	 	 	 	 	 

Scenario 4 Ultimate Sales Price of 30 Autumn Lane is $1,500,000

FIB

	 	 	 	 	 	 	 	 	 
	Purchase Price
	 	$	1,850,000.00	 	 	 	 	 
	Sales Price
	 	$	(1,500,000.00	)	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	$	350,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	FIB Max Exposure
	 	$	350,000.00	 	 	 	 	 
	less current exposure
	 	$	(350,000.00	)	 	 	 	 
	 
	 	 	 	 	 	 	 
	Available to make Castle
whole
	 	$	—	 	 	 	 	 
	To Castle
	 	$	—	 	 	 	 	 
	 
	 	 	 	 	 	Bonus of $0	 	Castle loss =  $90,000
	Net Cost to FIB
	 	$	350,000.00	 	 	 	 	 

Scenario 5 Ultimate Sales Price of 30 Autumn Lane is $1,450,000

FIB

	 	 	 	 	 	 	 	 	 
	Purchase Price
	 	$	1,850,000.00	 	 	 	 	 
	Sales Price
	 	$	(1,450,000.00	)	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	$	400,000.00	 	 	 	 	 
	FIB Max Exposure
	 	$	350,000.00	 	 	 	 	 
	less current exposure
	 	$	(400,000.00	)	 	 	 	 
	 
	 	 	 	 	 	 	 
	FIB Overexposure
	 	$	(50,000.00	)	 	 	 	 
	From Castle to FIB
	 	$	(50,000.00	)	 	 	 	Castle loss = $140,000
	Net Cost to FIB
	 	$	350,000.00

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