Document:

seniormanagementplan.htm

 

First Merchants Corporation

Senior Management Incentive

Compensation Program

Approved March 26, 2012

	
I.  

	
Purpose

The Board of Directors of First Merchants Corporation (FMC) has established an executive compensation program, which is designed to closely align the interests of executives with those of our shareholders by rewarding senior managers for achieving short-term and long-term strategic management and earnings goals, with the ultimate objective of obtaining a superior return on the shareholders’ investment.

	
II.  

	
Administration

This plan will be administered solely by the Compensation and Human Resources Committee (Committee) of FMC, with supporting documentation and recommendations provided by the Chief Executive Officer (CEO) of FMC.  The Committee will annually review the targets for applicability and competitiveness

The Committee will have the authority to: (a) modify the formal plan document; (b) make the final award determinations; (c) set conditions for eligibility and awards; (d) define extraordinary accounting events in calculating earnings; (e) establish future payout schedules; (f) determine circumstances/causes for which payouts can be withheld; and (g) abolish the plan.  No payout will be earned unless and until it is formally approved by the Committee.

Any award or payout made to a participant who is an “executive officer” of First Merchants Corporation, as defined in Rule 3b-7 under the Securities Exchange Act of 1934, is subject to recovery or “clawback” by First Merchants Corporation if the award or payout was based on materially inaccurate financial statements (which includes, but is not limited to, statements of earnings, revenues or gains) or any other materially inaccurate performance metric criteria.  The Committee will determine whether a financial statement or performance metric criteria is materially inaccurate based on all the facts and circumstances.

	
III.  

	
Covered Individuals by Officer Level/Role

	
A.  

	
President and Chief Executive Officer of FMC;

	
B.  

	
Executive Vice Presidents of FMC;

	
C.  

	
Executive Officers, Non-Bank Presidents and Regional Presidents;

	
D.  

	
Selected Senior Leadership

	
E.  

	
Department Heads, Division Heads and Other Management Leadership; and

 

 

  

  

  

 

In order to receive an award, a participant must be employed at the time of the award except for conditions of death, disability or retirement.

Participants will be disqualified if their individual overall performance is rated unsatisfactory; that is, either “improvement needed” or “unacceptable.”  Additional disqualifiers will be added based on the position, role and level of influence on results.

Participant lists will be reviewed annually by the Committee.

	
IV.  

	
Implementation Parameters

	
A.  

	
The FMC CEO and EVP earnings component payouts will be determined by FMC EPS calculated on a diluted GAAP basis.

Payouts to affiliate participants on their respective company earnings component will be determined by “operating earnings” (net income plus or minus non-operating items including goodwill amortization and corporate administrative charges), except that payouts to FMIG and FMTC participants will be determined by changes in “operating earnings.”

	
B.  

	
When utilized, balanced scorecards will be tailored to each unit incorporating a specific weighting on various operating initiatives as set by the CEO, EVP’s and SVP of HR.

	
V.  

	
Plan Structure

All payouts will be determined from the schedule for EPS (Section VI.B.or VI.C.).  Participants will be notified in writing at the beginning of the plan year.

 

 

  

  

  

 

 

	
VI.  

	
Supporting Parameters

	
A.  

	
Where individual components are applicable, they must be measurable with both beginning points and standard targets cited.

	
B.  

	
Schedule Determining EPS on a diluted GAAP basis* payouts

 

 

	
$ Actual

	 	 	
Payout %

	 
	 	< 0.82	 	 	 	0	%
	 	0.82	 	 	 	70	%
	 	0.85	 	 	 	80	%
	 	0.88	 	 	 	90	%
	 	0.91	 	 	 	100	%
	 	1.00	 	 	 	110	%
	 	1.09	 	 	 	120	%
	 	1.18	 	 	 	130	%
	 	1.27	 	 	 	140	%
	 	1.36	 	 	 	150	%
	 	1.45	 	 	 	160	%
	 	1.54	 	 	 	170	%
	 	1.63	 	 	 	180	%
	 	1.72	 	 	 	190	%
	 	1.81	 	 	 	200	%

 

 

* Earnings Per Share adjusted for any unplanned extraordinary income or expenses, all as determined by the Committee.

  

  

  

 

	
C.  

	
Schedule Determining Operating Earnings Payouts for FMTC and FMIS

 

 

	  	
Operating Earnings

% Change*

	  	
Payout %

	  	
<10%

	  	
0%

	  	
10%

	  	
40%

	  	
12.50%

	  	
50%

	  	
15%

	  	
60%

	  	
17.50%

	  	
70%

	  	
20%

	  	
80%

	  	
22.50%

	  	
90%

	
Target

	
25%

	  	
100%

	  	
27.50%

	  	
110%

	  	
30%

	  	
120%

	  	
32.50%

	  	
130%

	  	
35.00%

	  	
140%

	  	
37.50%

	  	
150%

	  	
40%

	  	
160%

	  	
42.50%

	  	
170%

	  	
45%

	  	
180%

	  	
47.50%

	  	
190%

	  	
=>50%

	  	
200%

 

* Operating earnings adds back charges for amortization of goodwill and other non-operating expenses and excludes unplanned extraordinary income or expenses, all as determined by the Committee.  Operating earnings will also be normalized for subsidiary acquisitions.ex10a.htm

Exhibit 10(a)

Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm

We consent to the reference to our firm under the caption “Independent Registered Public Accounting Firm” in Pre-Effective Amendment No. 2 to the Registration Statement (Form N-4 No. 333-170695) pertaining to Lincoln National Variable Annuity Account H, which is incorporated by reference into Post-Effective Amendment No. 3, and to the use therein of our reports dated (a) March 30, 2012, with respect to the consolidated financial statements of The Lincoln National Life Insurance Company and (b) March 30, 2012, with respect to the financial statements of Lincoln National Variable Annuity Account H.

/s/ Ernst & Young LLP

Philadelphia, Pennsylvania

March 30, 2012ex10b.htm

Exhibit 10b

POWER OF ATTORNEY

We, the undersigned directors and/or officers of The Lincoln National Life Insurance Company, hereby constitute and appoint Delson R. Campbell, Brian A. Kroll, John L. Reizian, Lawrence A. Samplatsky and John D. Weber,  individually, our true and lawful attorneys-in-fact, with full power to each of them to sign for us, in our names and in the capacities indicated below, any Registration Statements and any and all amendments to Registration Statements; including exhibits, or other documents filed on Forms N-6 or N-4 or any successors or amendments to these Forms, filed with the Securities and Exchange Commission, under the Securities Act of 1933 and/or Securities Act of 1940, on behalf of the Company in its own name or in the name of one of its Separate Accounts, hereby ratifying and confirming our signatures as they may be signed by any of our attorneys-in-fact to any such amendments to said Registration Statements as follows:

Variable Life Insurance Separate Accounts:

Lincoln Life Flexible Premium Variable Life Account D: 033-00417; 811-04592

Lincoln Life Flexible Premium Variable Life Account F: 033-14692; 333-40745; 811-05164

Lincoln Life Flexible Premium Variable Life Account G: 033-22740; 811-05585

Lincoln Life Flexible Premium Variable Life Account J:  033-76434; 811-08410

Lincoln Life Flexible Premium Variable Life Account K: 033-76432; 811-08412

Lincoln Life Flexible Premium Variable Life Account M: 333-42479; 333-54338; 333-84370;

333-84360; 333-111137; 333-111128; 333-118478; 333-118477; 333-63940; 333-82663;

333-139960; 333-145090; 333-146507; 333-163139; 811-08557

Lincoln Life Flexible Premium Variable Life Account R: 333-33782; 333-90432; 333-115882;

333-125792; 333-125991; 333-43107; 333-145235; 333-145239; 811-08579

Lincoln Life Flexible Premium Variable Life Account S: 333-72875; 333-104719; 333-125790; 811-09241

Lincoln Life Flexible Premium Variable Life Account Y: 333-118482; 333-118481; 333-115883;

333-81882; 333-81884; 333-81890; 333-90438; 333-156123; 811-21028

Lincoln Life Flexible Premium Variable Life Account JF-A: 333-144268; 333-144269; 333-144271;

333-144272; 333-144273; 333-144274; 333-144275; 811-04160

Lincoln Life Flexible Premium Variable Life Account JF-C: 333-144264; 333-144270; 811-08230

Variable Annuity Separate Accounts:

Lincoln National Variable Annuity Fund A: 002-26342; 002-25618; 811-01434

Lincoln National Variable Annuity Account C: 033-25990; 333-50817; 333-68842; 333-112927; 811-03214

Lincoln National Variable Annuity Account E: 033-26032; 811-04882

Lincoln National Variable Annuity Account H: 033-27783; 333-18419; 333-35780; 333-35784;

333-61592; 333-63505; 333-135219; 333-170695; 333-175888; 811-05721

Lincoln National Variable Annuity Account L: 333-04999; 811-07645

Lincoln Life Variable Annuity Account N: 333-40937; 333-36316; 333-36304; 333-61554; 333-174367;

333-119165; 333-135039; 333-138190; 333-149434; 333-170529; 333-170897; 333-172328; 811-08517

Lincoln Life Variable Annuity Account Q: 333-43373; 811-05869

Lincoln Life Variable Annuity Account T: 333-32402; 333-73532; 811-09855

Lincoln Life Variable Annuity Account W: 333-52572; 333-52568; 333-64208; 811-10231

Lincoln Life Variable Annuity Account JL-A: 333-141888; 811-02188

Lincoln Life Variable Annuity Account JF-I: 333-144276; 333-144277; 811-09779

Lincoln Life Variable Annuity Account JF-II: 333-144278; 811-08374

Except as otherwise specifically provided herein, the power-of-attorney granted herein shall not in any manner revoke in whole or in part any power-of-attorney that each person whose signature appears below has previously executed.  This power-of-attorney shall not be revoked by any subsequent power-of-attorney each person whose signature appears below may execute, unless such subsequent power specifically refers to this power-of-attorney or specifically states that the instrument is intended to revoke all prior general powers-of-attorney or all prior powers-of-attorney.

  

  

  

This Power-of-Attorney may be executed in separate counterparts each of which when executed and delivered shall be an original; but all such counterparts shall together constitute one and the same instrument.  Each counterpart may consist of a number of copies, each signed by less than all, but together signed by all, of the undersigned.

Signature                                                                Title

 

	
/s/ Dennis R. Glass*

___________________________

	
President and Director

Dennis R. Glass

	
/s/ Charles C. Cornelio*

______________________________

	
Executive Vice President; Chief Administrative Officer and Director

	
Charles C. Cornelio

	
 

	
/s/ Frederick J. Crawford*

____________________________

	
Executive Vice President and Director

	
Frederick J. Crawford

	
 

	
/s/ C. Phillip Elam II*

______________________________

	
Senior Vice President, Chief Investment Officer

	
C. Phillip Elam II

	
 

	
/s/ Randal J. Freitag*

______________________________

	
Senior Vice President; Chief Financial Officer and Director

	
Randal J. Freitag

	
 

	
/s/ Mark E. Konen*

_____________________________

	
Executive Vice President and Director

	
Mark E. Konen

	
 

/s/ Keith J. Ryan *

______________________________                  Vice President and Director

Keith J. Ryan

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