Document:

exv10w4

 

Exhibit 10.04

Summary of Compensation Payable to Named Executive Officers

     On February 10, 2006 and March 1, 2006, the Compensation Committee of the Board of Directors
of eBay Inc. approved the compensation to be paid to eBay’s executive officers for 2006. The
following table shows the annualized base salary to be paid to our Chief Executive Officer and four
most highly-compensated other executive officers (based on their total annual salary and bonus
compensation during 2005), also referred to as the Named Executive Officers, effective April 1,
2006. In addition to receiving base salary, eBay’s executive officers, including the Named
Executive Officers, are eligible to participate in the company’s eBay Incentive Plan, which was
included as an exhibit to eBay’s Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission on July 27, 2005. The target bonus amounts for each of the Named Executive
Officers for 2006, expressed as a percentage of base salary, are also set forth in the table below.
Equity compensation plan grants to eBay’s executive officers, including the Named Executive
Officers, are reported on Form 4 filings with the Securities and Exchange Commission.

	 	 	 	 	 	 	 	 	 
	Name and Principal Position	 	Salary	 	Target Bonus
	Margaret C. Whitman
	 	$	995,016	 	 	 	100	%
	President and Chief Executive Officer
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Maynard G. Webb, Jr
	 	 	650,000	 	 	 	85	 
	Chief Operating Officer
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	John J. Donahoe
	 	 	800,000	 	 	 	85	 
	President, eBay Business Unit
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Jeffrey D. Jordan
	 	 	550,000	 	 	 	70	 
	President, PayPal
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Rajiv Dutta
	 	 	530,000	 	 	 	70	 
	President, SkypeEmployment Agreement

     

     

     

     

     

     

    

      EMPLOYMENT
        AGREEMENT

       

      BETWEEN

       

      PEOPLES
        BANK SB

       

      AND

       

      NORTHWEST
        INDIANA BANCORP

       

      AND

       

      DAVID
        A. BOCHNOWSKI

       

      

      

      

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      TABLE
        OF CONTENTS

       

      Page

       

      
        	
                1.

              	
                EMPLOYMENT
                  AND TERM.

              	
                1

              
	 	
                (a)

              	
                Employment.

              	
                1

              
	 	
                (b)

              	
                Term.

              	
                1

              
	
                2.

              	
                DUTIES.

              	
                1

              
	
                3.

              	
                SALARY.

              	
                2

              
	 	
                (a)

              	
                Base
                  Salary.

              	
                2

              
	 	
                (b)

              	
                Salary
                  Increases or Decreases.

              	
                2

              
	 	
                (c)

              	
                Expenses,
                  Automobile and Clubs.

              	
                2

              
	
                4.

              	
                ANNUAL
                  BONUSES.

              	
                2

              
	
                5.

              	
                EQUITY
                  INCENTIVE COMPENSATION.

              	
                2

              
	
                6.

              	
                OTHER
                  BENEFITS.

              	
                3

              
	 	
                (a)

              	
                Insurance
                  Plans.

              	
                3

              
	 	
                (b)

              	
                Vacation.

              	
                3

              
	 	
                (c)

              	
                Other.

              	
                3

              
	
                7.

              	
                TERMINATION.

              	
                4

              
	 	
                (a)

              	
                Death
                  or Disability.

              	
                4

              
	 	
                (b)

              	
                Discharge
                  for Cause.

              	
                4

              
	 	
                (c)

              	
                Termination
                  for Other Reasons.

              	
                5

              
	
                8.

              	
                DEFINITIONS.

              	
                5

              
	
                9.

              	
                OBLIGATIONS
                  OF THE BANK UPON TERMINATION.

              	
                7

              
	 	
                (a)

              	
                Death,
                  Disability, Discharge for Cause or Resignation Without Good
                  Reason.

              	
                8

              
	 	
                (b)

              	
                Discharge
                  Without Cause or Resignation with Good Reason.

              	
                8

              
	 	
                (c)

              	
                Disability.

              	
                9

              
	 	
                (d)

              	
                Level
                  of Bonus and Welfare Benefits after a Change of Control.

              	
                9

              
	 	
                (e)

              	
                Continuing
                  Obligations After Termination.

              	
                9

              
	
                10.

              	
                CERTAIN
                  ADDITIONAL PAYMENTS BY THE BANK.

              	
                9

              
	
                11.

              	
                NO
                  SET-OFF OR MITIGATION.

              	
                12

              
	
                12.

              	
                PAYMENT
                  OF CERTAIN EXPENSES.

              	
                12

              
	
                13.

              	
                INDEMNIFICATION
                  AND JOINT OBLIGATION.

              	
                12

              

      

      

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

      

      
        	
                14.

              	
                BINDING
                  EFFECT.

              	
                12

              
	
                15.

              	
                NOTICES.

              	
                12

              
	
                16.

              	
                TAX
                  WITHHOLDING.

              	
                13

              
	
                17.

              	
                ARBITRATION.

              	
                13

              
	
                18.

              	
                NO
                  ASSIGNMENT.

              	
                13

              
	
                19.

              	
                NONSOLICITATION.

              	
                13

              
	
                20.

              	
                EXECUTION
                  IN COUNTERPARTS.

              	
                14

              
	
                21.

              	
                JURISDICTION
                  AND GOVERNING LAW.

              	
                14

              
	
                22.

              	
                SEVERABILITY.

              	
                14

              
	
                23.

              	
                PRIOR
                  UNDERSTANDINGS.

              	
                14

              

      

      

      

       

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

      EMPLOYMENT
        AGREEMENT

       

      THIS
        AGREEMENT, made and entered into as of April 19, 2006 (the “Effective Date”), by
        and between Northwest Indiana Bancorp (the “Company”) and Peoples Bank SB
        (together, the “Bank” unless otherwise noted) and David A. Bochnowski (the
“Executive”).

       

      W
        I T N E
        S S E T H THAT:

       

      WHEREAS,
        the Bank acting through its Board of Directors (“Board”) desires to continue to
        employ the Executive as its Chairman and Chief Executive Officer, and the
        Executive desires to continue in such employment;

       

      NOW,
        THEREFORE, the Bank and the Executive, each intending to be legally bound,
        hereby mutually covenant and agree as follows:

       

      1. Employment
        and Term.

       

      (a) Employment. 
        The
        Bank
        shall employ the Executive as the Chairman and Chief Executive Officer of
        the
        Bank, and the Executive shall so serve, for the term set forth in
        Paragraph 1(b).

       

      (b) Term. 
        The
        initial term of the Executive’s employment under this Agreement shall commence
        as of the Effective Date and end thirty-six calendar months thereafter, subject
        to the extension of such term as hereinafter provided and subject to earlier
        termination as provided in Paragraph 7, below. Beginning on the day
        immediately after the Effective Date, the term of this Agreement shall be
        extended automatically for one (1) additional day for each day which has
        then elapsed since the Effective Date, unless, at any time after the Effective
        Date, either the Board of Directors of the Bank or the Executive gives written
        notice to the other, in accordance with Paragraph 15, below, that such
        automatic extension of the term of this Agreement shall cease. Any such notice
        shall be effective immediately upon delivery. The initial term of this
        Agreement, plus any extension by operation of this Paragraph 1, shall be
        hereinafter referred to as the “Term.”

       

      2. Duties. 
        During
        the period of employment as provided in Paragraph 1(b) hereof, the
        Executive shall serve as Chairman and Chief Executive Officer of the Bank
        and
        have all powers and duties consistent with such positions, subject to the
        reasonable direction of the Board. The Executive shall also continue to serve
        as
        a member of the Board if elected. The Executive shall devote his best efforts
        to
        fulfill faithfully, responsibly and to the best of his ability his duties
        hereunder; provided, however, that with the approval of the Board, the Executive
        may serve, or continue to serve, on the boards of directors of, and hold any
        other offices or positions in, companies or organizations, which, in the
        Board’s
        judgment, will not present any material conflict of interest with the Bank
        or
        any of its subsidiaries or affiliates or divisions, or unfavorably affect
        the
        performance of the Executive’s duties, or will not violate any applicable
        statute or regulation. The Executive shall keep track of his time and expenses
        spent on the affairs of the Company and shall so advise the Bank so as to
        allow
        for a proper allocation of the Executive’s salary and expenses between the
        Company and the Bank.

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      3. Salary.

       

      (a) Base
        Salary.  For
        services performed by the Executive for the Bank pursuant to this Agreement
        during the period of employment as provided in Paragraph 1(b) hereof, the
        Bank shall pay the Executive a base salary at the rate of Three Hundred
        Thirty-Five Thousand Dollars ($335,000.00) per year, payable in substantially
        equal installments in accordance with the Bank’s regular payroll practices. The
        Executive’s base salary (with any increases under paragraph (b), below)
        shall not be subject to reduction, except that prior to a Change of Control,
        the
        Bank may decrease the Executive’s base salary if the consolidated operating
        results of the Company are significantly less favorable than those achieved
        for
        the fiscal year ended December 31, 2005, and the Bank makes similar
        decreases in the base salaries it pays to the executive officers of the Bank.
        Any compensation which may be paid to the Executive under any additional
        compensation or incentive plan of the Bank (including those under
        Paragraphs 4, 5 and 6) or which may be otherwise authorized from time to
        time by the Board (or an appropriate committee thereof) shall be in addition
        to
        the base salary to which the Executive shall be entitled under this
        Agreement.

       

      (b) Salary
        Increases or Decreases.  During
        the period of employment as provided in Paragraph 1(b) hereof, the base
        salary of the Executive shall be reviewed no less frequently than annually
        by
        the Board to determine whether or not the same should be increased in light
        of
        the duties and responsibilities of the Executive and the performance of the
        Bank
        or decreased under the circumstances permitted in Section 3(a). If it is
        determined that an increase or decrease is merited, such increase or decrease
        shall be promptly put into effect and the base salary of the Executive as
        so
        increased or decreased shall constitute the base salary of the Executive
        for
        purposes of Paragraph 3(a).

       

      (c) Expenses,
        Automobile and Clubs.  The
        Bank
        shall pay or reimburse the Executive for all reasonable travel and other
        expenses incurred by the Executive in the performance of his services under
        this
        Agreement. The Bank further agrees to provide the Executive with the full
        time
        use of an automobile of a make and model selected by the Executive, not more
        than two years old, commensurate with his position and as approved by the
        Compensation Committee of the Board of Directors. Subject to the approval
        of the
        Board of Directors of the Bank, the Bank shall reimburse the Executive for
        all
        initiation fees and dues associated with membership in professional, social,
        civic and service organizations which the Executive joins or has joined and
        which membership, in whole or in part, furthers the interests of or promotes
        the
        interests of the Bank or assists the Executive in business relationships
        on
        behalf of the Bank.

       

      4. Annual
        Bonuses.  For
        each
        calendar year during the term of employment, the Executive shall be eligible
        to
        receive in cash an annual performance bonus as may be set by Board.

       

      5. Equity
        Incentive Compensation.  During
        the term of employment hereunder the Executive shall be eligible to participate,
        in an appropriate manner relative to other senior executives of the Bank,
        in any
        equity-based incentive compensation plan or program approved by the Board
        from
        time to time, including (but not by way of limitation) the Company’s Amended and
        Restated 2004 Stock Option and Incentive Plan.

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      6. Other
        Benefits.

       

      (a) Insurance
        Plans.  The
        Bank
        agrees to continue funding all premiums as they become due pursuant to the
        following insurance policies, and any other insurance policies that may in
        the
        future be purchased, under which the Executive is an insured until such time
        as
        the Executive attains the age of sixty-six (66).

       

      
        	
                Company/Policy
                  No.

              	 	
                Type

              	 	
                Benefit
                  Amount

              
	 	 	 	 	 
	
                Assurant
                  Employee Benefits

                Group
                  Policy #54075

                Certificate
                  No. 36

              	 	
                Group
                  Life and AD&D

              	 	
                $400,000

              
	 	 	 	 	 
	
                Principal
                  Financial Group

                Group
                  Policy #N31368

                Location
                  09

              	 	
                Group
                  Life and AD&D

              	 	
                $148,000

              
	 	 	 	 	 
	
                Mass.
                  Mutual Life Insurance

                And
                  New York Life Insurance

                Policy
                  Nos. 0064748 and 56608619

              	 	
                Endorsement
                  Split Dollar Plan

              	 	
                $200,000

              
	 	 	 	 	 
	
                American
                  States Life Insurance

                Policy
                  No. 0100432728

              	 	
                Individual
                  Life Insurance

              	 	
                $500,000

              
	 	 	 	 	 
	
                Valley
                  Forge Life Insurance Co.

                Policy
                  No. 84040058

              	 	
                Universal
                  Life Insurance

              	 	
                $438,659*

              
	 	 	 	 	 
	
                New
                  York Life

                Policy
                  No. 56612175

              	 	
                Universal
                  Life Insurance

              	 	
                $100,000

              
	 	 	 	 
	
                *Death
                  Benefit Value as of Feb. 7, 2006

              	 	 	 

      

      

      Notwithstanding
        the above, in the event of a Change in Control (as defined in
        Paragraph 8(c)) of the Bank, the Bank agrees to immediately pay the
        Executive the amount of all such future premiums on the above policies as
        shall
        be reasonably expected to become due, plus any amount as may be necessary
        under
        Paragraph 10, prior to the Executive attaining the age of
        sixty-six (66). In the event such payment is made, the Bank shall be
        relieved of its obligation to continue funding premiums as they become
        due.

       

      (b) Vacation. 
        Notwithstanding
        anything herein to the contrary, the Executive shall be entitled to a maximum
        of
        six weeks vacation to be taken during such times as may be chosen by the
        Executive. Any vacation time not taken during any calendar year and any unused
        vacation days in existence as of the date hereof may be taken with the consent
        of the Compensation Committee of the Board, which consent shall not be
        unreasonably withheld. Vacation time for each calendar year shall be considered
        earned as of the first day of each calendar year.

       

      (c) Other. 
        The
        Executive shall be entitled to participate in all of the various retirement,
        welfare, fringe benefit and executive perquisite plans, programs and
        arrangements of 

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      the
        Bank
        as they may exist from time to time. Notwithstanding the limitations of any
        health benefit plan maintained by the Bank, the Bank agrees to pay the costs
        of
        any necessary physical examinations and the costs of all diagnostic testing
        incurred by the Executive on his own behalf.

       

      7. Termination. 
        Unless
        this Agreement is earlier terminated in accordance with the following provisions
        of this Paragraph 7, the Bank shall continue to employ the Executive and
        the Executive shall remain employed by the Bank during the entire Term of
        this
        Agreement as set forth in Paragraph 1(b). Paragraph 9 hereof sets
        forth certain obligations of the Bank in the event that the Executive’s
        employment hereunder is terminated. Certain capitalized terms used in this
        Agreement are defined in Paragraph 8, below.

       

      (a) Death
        or Disability.  Except
        to
        the extent otherwise provided in Paragraph 9, this Agreement shall
        terminate immediately (a Date of Termination) in the event of the Executive’s
        death or in the event that the Executive becomes disabled. The Executive
        will be
        deemed to be disabled upon the earlier of (i) the end of an
        eighteen (18)-consecutive month period during which, by reason of physical
        or mental injury or disease, the Executive has been unable to perform
        substantially all of his usual and customary duties under this Agreement
        or
        (ii) the date that a reputable physician, jointly selected by the Board and
        the Executive, determines in writing that the Executive will, by reason of
        physical or mental injury or disease, be unable to perform substantially
        all of
        the Executive’s usual and customary duties under this Agreement for a period of
        at least eighteen (18) consecutive months. If any question arises as to
        whether the Executive is disabled, upon reasonable request therefor by the
        Board, the Executive shall submit to reasonable medical examination for the
        purpose of determining the existence, nature and extent of any such disability.
        In accordance with Paragraph 15, the Board shall promptly give the
        Executive written notice of any such determination of the Executive’s disability
        and of any decision of the Board to terminate the Executive’s employment by
        reason thereof. In the event of disability, until the Date of Termination,
        the
        base salary payable to the Executive under Paragraph 3(a) hereof shall be
        reduced dollar-for-dollar by the amount of disability benefits paid to the
        Executive in accordance with any disability policy or program of the
        Bank.

       

      (b) Discharge
        for Cause.  In
        accordance with the procedures hereinafter set forth, the Board may discharge
        the Executive from his employment hereunder for Cause. Except to the extent
        otherwise provided in Paragraph 9, this Agreement shall terminate
        immediately as of the Date of Termination in the event the Executive is
        discharged for Cause. Any discharge of the Executive for Cause shall be
        communicated by a Notice of Termination to the Executive given in accordance
        with Paragraph 15 of this Agreement. For purposes of this Agreement, a
“Notice of Termination” means a written notice which (i) indicates the
        specific termination provision in this Agreement relied upon, (ii) sets
        forth in reasonable detail the facts and circumstances claimed to provide
        a
        basis for termination of the Executive’s employment under the provision so
        indicated and (iii) specifies the termination date, which may be as early
        as the date of the giving of such notice. In the case of a discharge of the
        Executive for Cause, the Notice of Termination shall include a copy of a
        resolution duly adopted by the Board at a meeting called and held for such
        purpose (after reasonable notice to the Executive and reasonable opportunity
        for
        the Executive, together with the Executive’s counsel, to be heard before the
        Board prior to such vote), finding that, in the reasonable and good faith
        opinion of the 

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      Board,
        the Executive was guilty of conduct constituting Cause. No purported termination
        of the Executive’s employment for Cause shall be effective without a Notice of
        Termination.

       

      (c) Termination
        for Other Reasons.  The
        Bank
        may discharge the Executive for reason other than Cause by giving written
        notice
        to the Executive in accordance with Paragraph 15 at least thirty (30)
        days prior to the Date of Termination. The Executive may resign from his
        employment, without liability to the Bank, by giving written notice to the
        Bank
        in accordance with Paragraph 15 at least thirty (30) days prior to the
        Date of Termination. Except to the extent otherwise provided in
        Paragraph 9, this Agreement shall terminate immediately as of the Date of
        Termination in the event the Executive is discharged for reasons other than
        Cause or resigns.

       

      8. Definitions. 
        For
        purposes of this Agreement, the following capitalized terms shall have the
        meanings set forth below:

       

      (a) “Accrued
        Obligations” shall mean, as of the Date of Termination, the sum of (A) the
        Executive’s base salary under Paragraph 3(a) through the Date of
        Termination to the extent not theretofore paid, (B) the amount of any
        bonus, incentive compensation, deferred compensation and other cash compensation
        accrued by the Executive as of the Date of Termination to the extent not
        theretofore paid and (C) any unused vacation, expense reimbursements
        (regardless of whether a claim for such has yet been filed) and other cash
        entitlements due the Executive as of the Date of Termination. For the purpose
        of
        this Paragraph 8(a), dollar amounts shall be deemed to accrue ratably over
        the period during which they are earned, but no discretionary compensation
        shall
        be deemed earned or accrued unless it has been specifically approved by the
        Board in accordance with the applicable plan, program or policy.

       

      (b) “Cause”
        shall mean: (A) the Executive’s commission of an act materially and
        demonstrably detrimental to the goodwill of the Bank or any of its subsidiaries,
        which act constitutes gross negligence or willful misconduct by the Executive
        in
        the performance of his material duties to the Bank or (B) the Executive’s
        conviction of a felony involving moral turpitude, but specifically excluding
        any
        conviction based entirely on vicarious liability. No act or failure to act
        will
        be considered “willful” unless it is done, or omitted to be done, by the
        Executive in bad faith or without reasonable belief that his action or omission
        was in the best interests of the Bank. In addition, no act or omission will
        constitute Cause unless the Bank has given detailed written notice thereof
        to
        the Executive and, where remedial action is feasible, he then fails to remedy
        the act or omission within a reasonable time after receiving such
        notice.

       

      (c) “Change
        of Control” shall mean:

       

      (i) The
        acquisition by any “person” (within the meaning of Section 13(d)(3) or
        14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
        provided, however, that “person” shall not include the Executive, members of the
        Executive’s immediate family, or any trust of which the beneficial owners are
        the Executive or members of his immediate family) of beneficial ownership
        (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
        35% or more of either (i) the then outstanding shares of capital stock of
        the Bank or the Company (the 

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      “Outstanding
        Bank (or Company, as appropriate) Capital Stock”) or (ii) the combined
        voting power of the then outstanding voting securities of the Bank or the
        Company entitled to vote generally in the election of directors (the “Bank (or
        Company, as applicable) Voting Securities”); provided, however, that
        (X) any acquisition by or from the Company or any of its subsidiaries,
        (Y) any acquisition by any employee benefit plan (or related trust)
        sponsored or maintained by the Company or any of its subsidiaries or
        (Z) any acquisition by any corporation with respect to which, following
        such acquisition, more than 65% of the then outstanding shares of capital
        stock
        of such corporation and the combined voting power of the then outstanding
        voting
        securities of such corporation entitled to vote generally in the election
        of
        directors is then beneficially owned, directly or indirectly, by all or
        substantially all of the individuals and entities who were the beneficial
        owners, respectively, of the Outstanding Bank (or Company, as appropriate)
        Capital Stock and Bank (or Company, as appropriate) Voting Securities
        immediately prior to such acquisition, in substantially the same proportion
        as
        their ownership, immediately prior to such acquisition, of the Outstanding
        Bank
        (or Company, as appropriate) Capital Stock and Bank (or Company, as appropriate)
        Voting Securities, as the case may be, shall not constitute a Change of Control;
        or

       

      (ii) Individuals
        who, as of the Effective Date constituted the Board of Directors of the Bank
        (or
        Company, as appropriate) (the “Incumbent Board”) cease for any reason to
        constitute at least a majority of such Board; provided, however, that any
        individual who becomes a member of the respective Board subsequent to such
        date
        whose election, or nomination for election by the stockholders of the Bank
        or
        the Company, as appropriate, was approved by a vote of at least a majority
        of
        the directors then comprising the Incumbent Board shall be deemed to be a
        member
        of the Incumbent Board; but provided further, that no individual whose election
        or initial assumption of office as a director occurs as a result of an actual
        or
        threatened election contest (as such terms are used in Rule 14a-11 of
        Regulation 14A promulgated under the Exchange Act) with respect to the
        election or removal of directors, or any other actual or threatened solicitation
        of proxies or consents by or on behalf of any person other than the Board
        of
        Directors of the Bank (or Company, as appropriate), shall be deemed to be
        a
        member of the Incumbent Board; or

       

      (iii) Consummation
        of a reorganization, merger or consolidation (a “Business Combination”) with
        respect to which all or substantially all of the individuals and entities
        who
        were the respective beneficial owners of the Outstanding Bank (or Company,
        as
        appropriate) Capital Stock and Bank (or Company, as appropriate) Voting
        Securities immediately prior to such Business Combination do not, following
        such
        Business Combination, beneficially own, directly or indirectly, more than
        65%
        of, respectively, the then outstanding shares of capital stock and the combined
        voting power of the then outstanding voting securities entitled to vote
        generally in the election of directors, as the case may be, of the corporation
        resulting from the Business Combination, in substantially the same proportion
        as
        their ownership immediately prior to such Business Combination of the
        Outstanding Bank (or Company, as appropriate) Capital Stock and Bank (or
        Company, as appropriate) Voting Securities, as the case may be; or

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      (iv) Consummation
        of a sale or other disposition of all or substantially all of the assets
        of the
        Bank (or Company, as appropriate) other than to a corporation with respect
        to
        which, following such sale or disposition, more than 65% of, respectively,
        the
        then outstanding shares of capital stock and the combined voting power of
        the
        then outstanding voting securities entitled to vote generally in the election
        of
        directors is then owned beneficially, directly or indirectly, by all or
        substantially all of the individuals and entities who were the beneficial
        owners, respectively, of the Outstanding Bank (or Company, as appropriate)
        Capital Stock and Bank (or Company, as appropriate) Voting Securities
        immediately prior to such sale or disposition, in substantially the same
        proportion as their ownership of the Outstanding Bank (or Company, as
        appropriate) Capital Stock and Bank (or Company, as appropriate) Voting
        Securities, as the case may be, immediately prior to such sale or disposition;
        or

       

      (v) A
        complete liquidation or dissolution of the Bank or the Company.

       

      Any
        other
        provision of this Agreement to the contrary notwithstanding, “Change of Control”
shall not include any transaction described in subparagraphs (A), (C) or
        (D) of this paragraph (iii) where, in connection with such transaction, the
        Executive or any party acting in concert with the Executive substantially
        increases his or its, as the case may be, ownership interest in the Bank
        or the
        Company or a successor to the Bank or the Company.

       

      (d) “Date
        of
        Termination” shall mean (A) in the event of a discharge of the Executive by
        the Board for Cause, the date specified in such Notice of Termination,
        (B) in the event of a discharge of the Executive without Cause or a
        resignation by the Executive, the date specified in the written notice to
        the
        Executive (in the case of discharge) or the Bank (in the case of resignation),
        which date shall be no less than thirty (30) days from the date of
        such written notice, (C) in the event of the Executive’s death, the date of
        the Executive’s death, and (D) in the event of termination of the
        Executive’s employment by reason of disability pursuant to Paragraph 7(a),
        the date the Executive receives written notice of such termination.

       

      (e) “Good
        Reason” shall mean any of the following: (A) the failure to re-elect the
        Executive as Chairman and Chief Executive Officer and as a member of the
        Board
        of Directors with full voting rights, (B) assignment of duties inconsistent
        with the Executive’s position, authority, duties or responsibilities, or any
        other action by the Bank which results in a substantial diminution of such
        position, authority, duties or responsibilities, (C) any substantial
        failure by the Bank to comply with any of the provisions of this Agreement
        or
        (D) the Bank’s giving notice to the Executive to stop further operation of
        the evergreen feature described in Paragraph 1 above; provided, however,
        that actions taken by the Board of Directors of the Bank under
        subparagraphs (A) and (B) by reason of the Executive’s inability to perform
        the responsibilities contemplated by those sections because of a physical
        or
        mental injury or disease shall not be deemed “Good Reason.” In addition,
        resignation by the Executive for any reason during the one (1)-year period
        immediately after a Change of Control shall be deemed to be a resignation
        for
        Good Reason.

       

      9. Obligations
        of the Bank Upon Termination.  The
        following provisions describe the obligations of the Bank to the Executive
        under
        this Agreement upon termination of his 

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      employment.
        However, except as explicitly provided in this Agreement, nothing in this
        Agreement shall limit or otherwise adversely affect any rights which the
        Executive may have under applicable law, under any other agreement with the
        Bank
        or any of its subsidiaries, or under any compensation or benefit plan, program,
        policy or practice of the Bank or any of its subsidiaries.

       

      (a) Death,
        Disability, Discharge for Cause or Resignation Without Good Reason. 
In
        the
        event this Agreement terminates by reason of the death or disability of the
        Executive, or by reason of the discharge of the Executive by the Bank for
        Cause,
        or by reason of the resignation of the Executive other than for Good Reason,
        the
        Bank shall pay to the Executive, or his heirs or estate in the event of the
        Executive’s death, all Accrued Obligations in a lump sum in cash within
        thirty (30) days after the Date of Termination; provided, however, that any
        portion of the Accrued Obligations which consists of bonus, deferred
        compensation or incentive compensation, shall be determined and paid in
        accordance with the terms of the relevant plan as applicable to the Executive.
        In addition to the foregoing, in the event this Agreement terminates by reason
        of the death of the Executive, then within thirty (30) days of the death of
        the Executive, the Bank shall pay to the Executive’s heirs or estate in a lump
        sum in cash an amount equal to the sum of the Executive’s then-current annual
        base salary and the amount of the most recent annual bonus received by the
        Executive.

       

      (b) Discharge
        Without Cause or Resignation with Good Reason.  In
        the
        event that this Agreement terminates by reason of the discharge of the Executive
        by the Bank without Cause, or by reason of the resignation of the Executive
        for
        Good Reason, then the Bank shall pay to Executive, or his heirs or estate
        in the
        event of the Executive’s death, in addition to the compensation and benefits
        described in paragraph (a), the following benefits:

       

      (i) A
        cash
        bonus for the year of termination equal to the most recent annual bonus received
        by the Executive,

       

      (ii) Payment
        in a lump sum of an amount equal to three (3) times the Executive’s
        then-current base salary as in effect prior to the termination,

       

      (iii) Payment
        in a lump sum of an amount equal to three (3) times the most recent annual
        bonus received by the Executive,

       

      (iv) Continuation,
        for a period of three (3) years after the Date of Termination, of welfare
        benefits and senior executive perquisites at least equal to those which would
        have been provided if the Executive’s employment had continued for that
        time,

       

      (v) A
        payment
        equal to that described in Paragraph 6(a) as necessary to fund the future
        premiums on such insurance policies as shall be reasonably expected to become
        due prior to the Executive reaching the age of sixty-six (66);
        and

       

      (vi) Outplacement
        services, at the expense of the Bank, from a provider reasonably selected
        by the
        Executive.

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      (c) Disability. 
        In
        the
        event this Agreement terminates by reason of the disability of the Executive,
        then the Bank shall pay to the Executive in addition to the compensation
        and
        benefits described in paragraph (a), the following benefits:

       

      (i) A
        cash
        bonus for the year of termination equal to the most recent annual bonus received
        by the Executive;

       

      (ii) Cash
        compensation during each year between the Date of Termination and the earlier
        of
        the date upon which the Executive attains age seventy (70) or the death of
        the Executive equal to sixty-six percent (66%) of both the then current
        base salary and the most recent annual bonus received by the Executive;
        and

       

      (iii) Continuation
        of welfare benefits and senior executive perquisites at least equal to those
        which would have been provided if the Executive’s employment had continued for
        that time as the cash compensation in (ii) continues.

       

      Notwithstanding
        the foregoing, the payments due under this section following the Date of
        Termination shall be offset dollar-for-dollar by the amount of disability
        payments paid to the Executive for periods following the Date of Termination
        in
        accordance with any disability policy or program of the Bank.

       

      (d) Level
        of Bonus and Welfare Benefits after a Change of Control.  If
        the
        Executive’s employment terminates for any reason after a Change of Control, the
        phrase “most recent annual bonus” as used in paragraphs (b)(i) and (iii)
        and (c) shall be replaced by the phrase “most recent annual bonus received by
        the Executive prior to the Change of Control,” and the phrase “would have been
        provided if the Executive’s employment had continued for that time” as used in
        paragraph (b)(iv) and (c)(iii) shall be replaced by the phrase “were
        provided to the Executive immediately prior to the Change of Control;” provided,
        however, that this paragraph (d) shall not apply to (b)(i) and (iii) and
        (c) or to (b)(iv) and (c)(iii) if the benefits the Executive would receive
        under
        (b)(i) and (iii) and (c) or (b)(iv) and (c)(iii) would be greater without
        the
        application of this paragraph (d).

       

      (e) Continuing
        Obligations After Termination.  If
        the
        Executive’s employment with the Bank terminates for any reason, the Bank’s
        obligations and the Executive’s obligations under Paragraphs 9 through 19
        shall continue after termination of the employment relationship.

       

      10. Certain
        Additional Payments by the Bank.  The
        Bank
        agrees that:

       

      (a) Anything
        in this Agreement to the contrary notwithstanding, in the event it shall
        be
        determined that any payment or distribution by the Bank to or for the benefit
        of
        the Executive (whether paid or payable or distributed or distributable pursuant
        to the terms of this Agreement or otherwise, but determined without regard
        to
        any additional payments required under this Paragraph 10) (a “Payment”)
        would be subject to the excise tax imposed by Section 4999 of the Internal
        Revenue Code of 1986, as amended (the “Code”), or if any interest or penalties
        are incurred by the Executive with respect to such excise tax (such excise
        tax,
        together with any such interest and penalties, being hereinafter collectively
        referred to as the “Excise Tax”), then the Executive shall be entitled to
        receive an additional payment (a “Gross-

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      Up
        Payment”) in an amount such that, after payment by the Executive of all taxes
        (including any interest or penalties imposed with respect to such taxes),
        including, without limitation, any income taxes (and any interest and penalties
        imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment,
        the Executive retains an amount of the Gross-Up Payment equal to the Excise
        Tax
        imposed upon the Payment.

       

      (b) Subject
        to the provisions of paragraph (c), below, all determinations required to
        be made under this Paragraph 10, including whether and when a Gross-Up
        Payment is required and the amount of such Gross-Up Payment and the assumptions
        to be utilized in arriving at such determination, shall be made by the
        accounting firm which is then serving as the auditors for the Bank (the
“Accounting Firm”), which shall provide detailed supporting calculations both to
        the Bank and the Executive within fifteen (15) business days of the receipt
        of notice from the Executive that there has been a Payment, or such earlier
        time
        as is requested by the Bank. In the event that the Accounting Firm is serving
        as
        accountant or auditor for the individual, entity or group effecting the Change
        of Control, the Executive shall appoint a nationally recognized accounting
        firm
        to make the determinations required hereunder (which accounting firm shall
        then
        be referred to as the Accounting Firm hereunder). All fees and expenses of
        the
        Accounting Firm shall be borne solely by the Bank. Any Gross-Up Payment,
        as
        determined pursuant to this Paragraph 10, shall be paid by the Bank to the
        Executive within five (5) days of the receipt of the Accounting Firm’s
        determination. If the Accounting Firm determines that no Excise Tax is payable
        by the Executive, it shall furnish the Executive with a written opinion that
        failure to report the Excise Tax on the Executive’s applicable federal income
        tax return would not result in the imposition of a negligence or similar
        penalty. Any good faith determination by the Accounting Firm shall be binding
        upon the Bank and the Executive. As a result of the uncertainty in the
        application of Section 4999 of the Code at the time of the initial
        determination by the Accounting Firm hereunder, it is possible that Gross-Up
        Payments which will not have been made by the Bank should have been made
        (“Underpayment”), consistent with the calculations required to be made
        hereunder. In the event that the Bank exhausts its remedies pursuant to
        paragraph (c), below, and the Executive thereafter is required to make a
        payment of any Excise Tax, the Accounting Firm shall determine the amount
        of the
        Underpayment that has occurred and any such Underpayment shall be promptly
        paid
        by the Bank to or for the benefit of the Executive.

       

      (c) The
        Executive shall notify the Bank in writing of any claim by the Internal Revenue
        Service that, if successful, would require the payment by the Bank of a Gross-Up
        Payment. Such notification shall be given as soon as practicable but no later
        than thirty (30) business days after the Executive is informed in writing
        of such claim and shall apprise the Bank of the nature of such claim and
        the
        date on which such claim is requested to be paid. The Executive shall not
        pay
        such claim prior to the expiration of the thirty (30)-day period following
        the
        date on which Executive gives such notice to the Bank (or such shorter period
        ending on the date that any payment of taxes with respect to such claim is
        due).
        If the Bank notifies the Executive in writing prior to the expiration of
        such
        period that it desires to contest such claim, the Executive shall:

       

      (i) Give
        the
        Bank any information reasonably requested by the Bank relating to such
        claim,

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      (ii) Take
        such
        action in connection with contesting such claim as the Bank shall reasonably
        request in writing from time to time, including, without limitation, accepting
        legal representation with respect to such claim by an attorney reasonably
        selected by the Bank,

       

      (iii) Cooperate
        with the Bank in good faith in order effectively to contest such claim,
        and

       

      (iv) Permit
        the Bank to participate in any proceedings relating to such claim;

       

      provided,
        however, that the Bank shall bear and pay directly all costs and expenses
        (including additional interest and penalties) incurred in connection with
        such
        contest and shall indemnify and hold the Executive harmless, on an after-tax
        basis, for any Excise Tax or income tax (including interest and penalties
        with
        respect thereto) imposed as a result of such representation and payment of
        costs
        and expenses. Without limiting the foregoing provisions of this
        paragraph (c), the Bank shall control all proceedings taken in connection
        with such contest and, at its sole option, may pursue or forgo any and all
        administrative appeals, proceedings, hearings and conferences with the taxing
        authority in respect of such claim and may, at its sole option, either direct
        the Executive to pay the tax claimed and sue for a refund or contest the
        claim
        in any permissible manner; and the Executive agrees to prosecute such contest
        to
        a determination before any administrative tribunal, in a court of initial
        jurisdiction and in one or more appellate courts, as the Bank shall determine;
        provided, however, that if the Bank directs the Executive to pay such claim
        and
        sue for a refund, the Bank shall advance the amount of such payment to the
        Executive on an interest-free basis and shall indemnify and hold the Executive
        harmless, on an after-tax basis, from any Excise Tax or income tax (including
        interest or penalties with respect thereto) imposed with respect to such
        advance
        or with respect to any imputed income with respect to such advance; and further
        provided that any extension of the statute of limitations relating to payment
        of
        taxes for the taxable year of the Executive with respect to which such contested
        amount is claimed to be due is limited solely to such contested amount.
        Furthermore, the Bank’s control of the contest shall be limited to issues with
        respect to which a Gross-Up Payment would be payable hereunder and the Executive
        shall be entitled to settle or contest, as the case may be, any other issue
        raised by the Internal Revenue Service or any other taxing
        authority.

       

      (d) If,
        after
        the receipt by the Executive of an amount advanced by the Bank pursuant to
        paragraph (c), above, the Executive receives any refund with respect to
        such claim, the Executive shall (subject to the Bank’s complying with the
        requirements of said paragraph (c)) promptly pay to the Bank the amount of
        such refund (together with any interest paid or credited thereon, after taxes
        applicable thereto). If, after the receipt by the Executive of an amount
        advanced by the Bank pursuant to said paragraph (c), a determination is
        made that the Executive shall not be entitled to any refund with respect
        to such
        claim and the Bank does not notify the Executive in writing of its intent
        to
        contest such denial of refund prior to the expiration of thirty (30) days
        after such determination, then such advance shall be forgiven and shall not
        be
        required to be repaid; and the amount of such advance shall offset, to the
        extent thereof, the amount of the Gross-Up Payment required to be
        paid.

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      (e) Notwithstanding
        anything contained in this Paragraph 10 to the contrary, if the present value
        of
        the payments made under this Agreement, without taking into account the Gross-Up
        Payment, is no greater than one hundred and five percent (105%) of the amount
        payable to the Executive assuming the Executive’s payments under this Agreement
        were limited to the maximum amount that could be payable without application
        of
        the excise tax imposed by Section 4999 of the Code (the “Section 4999 Limit”),
        the Executive’s payments shall be limited to the Section 4999
        Limit.

       

      11. No
        Set-Off or Mitigation.  The
        Bank’s obligation to make the payments provided for in this Agreement and
        otherwise to perform its obligations hereunder shall not be affected by any
        set-off, bankers right of set-off, counterclaim, recoupment, defense or other
        claim, right or action which the Bank may have against the Executive or others.
        In no event shall the Executive be obligated to seek other employment or
        take
        any other action by way of mitigation of the amounts payable to the Executive
        under any of the provisions of this Agreement and such amounts shall not
        be
        reduced whether or not the Executive obtains other employment.

       

      12. Payment
        of Certain Expenses.  The
        Bank
        agrees to pay promptly as incurred, to the fullest extent permitted by law,
        all
        legal fees and expenses which the Executive may reasonably incur as a result
        of
        any contest by the Bank, the Executive or others of the validity or
        enforceability of, or liability under, any provision of this Agreement
        (including as a result of any contest initiated by the Executive about the
        amount of any payment due pursuant to this Agreement), plus in each case
        interest on any delayed payment at the applicable federal rate provided for
        in
        Section 7872(f)(2)(A) of the Code.

       

      13. Indemnification
        and Joint Obligation.  To
        the
        fullest extent permitted by law, the Bank shall indemnify the Executive
        (including the advancement of expenses) for any judgments, fines, amounts
        paid
        in settlement and reasonable expenses, including attorneys’ and experts’ fees,
        incurred by the Executive in connection with the defense of any lawsuit or
        other
        claim to which he is made a party by reason of being an officer, director
        or
        employee of the Bank or any of its subsidiaries. The Company and the Bank
        are
        jointly and severally liable to provide the payment of all compensation,
        payments and/or benefits due to the Executive or his beneficiaries under
        this
        Agreement or any of the plans, programs or arrangements referred to
        hereby.

       

      14. Binding
        Effect.  This
        Agreement shall be binding upon and inure to the benefit of the heirs and
        representatives of the Executive and the successors and assigns of the Bank
        and
        the Company. The Bank and the Company shall require any successor (whether
        direct or indirect, by purchase, merger, reorganization, consolidation,
        acquisition of property or stock, liquidation, or otherwise) to all or a
        substantial portion of its assets, by agreement in form and substance reasonably
        satisfactory to the Executive, expressly to assume and agree to perform this
        Agreement in the same manner and to the same extent that the Bank and the
        Company would be required to perform this Agreement if no such succession
        had
        taken place. Regardless of whether such an agreement is executed, this Agreement
        shall be binding upon any successor of the Bank and the Company in accordance
        with the operation of law, and such successor shall be deemed the “Bank” or the
“Company,” as appropriate, for purposes of this Agreement.

       

      15. Notices. 
        All
        notices, requests, demands and other communications hereunder shall be in
        writing and shall be deemed to have been duly given if delivered by hand
        or by

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      recognized
        commercial delivery service or if mailed within the continental United States
        by
        first class certified mail, return receipt requested, postage prepaid, addressed
        as follows:

       

      
        	
                 

              	
                If
                  to the Board or the Bank, to:

              
	 	
                 

                Peoples
                  Bank SB

                9204
                  Columbia Avenue

                Munster,
                  Indiana 46321

                Attention:
                  Corporate Secretary

              
	 	 
	 	
                If
                  to the Executive, to:

              
	 	 
	 	
                David
                  A. Bochnowski

                10203
                  Cherrywood Lane

                Munster,
                  Indiana 46321

              

      

       

      Such
        addresses may be changed by written notice sent to the other party at the
        last
        recorded address of that party.

       

      16. Tax
        Withholding.  The
        Bank
        shall provide for the withholding of any taxes required to be withheld by
        federal, state or local law with respect to any payment in cash, shares of
        stock
        and/or other property made by or on behalf of the Bank to or for the benefit
        of
        the Executive under this Agreement or otherwise. The Bank may, at its option:
        (a) withhold such taxes from any cash payments owing from the Bank to the
        Executive, (b) require the Executive to pay to the Bank in cash such amount
        as may be required to satisfy such withholding obligations and/or (c) make
        other satisfactory arrangements with the Executive to satisfy such withholding
        obligations.

       

      17. Arbitration. 
        Except
        as
        to any controversy or claim which the Executive elects, by written notice
        to the
        Bank, to have adjudicated by a court of competent jurisdiction, any controversy
        or claim arising out of or relating to this Agreement or the breach hereof
        shall
        be settled by arbitration at a mutually agreed site in accordance with the
        laws
        of the State of Indiana. The arbitration shall be conducted in accordance
        with
        the rules of the American Arbitration Association. The costs and expenses
        of the
        arbitrator(s) shall be borne by the Bank. The award of the arbitrator(s)
        shall
        be binding upon the parties. Judgment upon the award rendered by the
        arbitrator(s) may be entered in any court having jurisdiction.

       

      18. No
        Assignment.  Except
        as
        otherwise expressly provided herein, this Agreement is not assignable by
        any
        party and no payment to be made hereunder shall be subject to anticipation,
        alienation, sale, transfer, assignment, pledge, encumbrance or other
        charge.

       

      19. Nonsolicitation. 
        The
        Executive covenants that upon his Date of Termination, he shall not, for
        a
        period of one (1) year following the Date of Termination directly recruit
        any person who is an employee of the Bank; solicit, encourage or induce any
        such
        employee to leave the Bank’s employ or solicit, encourage or induce any customer
        of the Bank to cease doing business with the Bank.

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      20. Execution
        in Counterparts.  This
        Agreement may be executed by the parties hereto in two (2) or more
        counterparts, each of which shall be deemed to be an original, but all such
        counterparts shall constitute one and the same instrument, and all signatures
        need not appear on any one counterpart.

       

      21. Jurisdiction
        and Governing Law.  This
        Agreement shall be construed and interpreted in accordance with and governed
        by
        the laws of the State of Indiana, without regard to the conflict of laws
        provisions of such laws.

       

      22. Severability. 
        If
        any
        provision of this Agreement shall be adjudged by any court of competent
        jurisdiction to be invalid or unenforceable for any reason, such judgment
        shall
        not affect, impair or invalidate the remainder of this Agreement. Furthermore,
        if the scope of any restriction or requirement contained in this Agreement
        is
        too broad to permit enforcement of such restriction or requirement to its
        full
        extent, then such restriction or requirement shall be enforced to the maximum
        extent permitted by law, and the Executive consents and agrees that any court
        of
        competent jurisdiction may so modify such scope in any proceeding brought
        to
        enforce such restriction or requirement. Nothing herein shall be construed
        as
        requiring the Bank to make any payment which would be prohibited under 12
        C.F.R.
        359. In the event a payment required under the terms of this Agreement cannot
        lawfully be made because of the limitations of 12 C.F.R. 359, the
        obligation to make such payment shall be deferred until such time as the
        limitations of 12 C.F.R. 359 shall no longer apply. Upon deferring any
        payment required under this Agreement due to the limitations of 12 C.F.R.
        359,
        the Bank shall provide the Executive with a legal opinion of counsel addressing
        the exact provisions of 12 C.F.R. 359 which pose the barrier to
        payment.

       

      23. Prior
        Understandings.  This
        Agreement embodies the entire understanding of the parties hereto and supersedes
        all other oral or written agreements or understandings between them regarding
        the subject matter hereof. No change, alteration or modification hereof may
        be
        made except in a writing, signed by each of the parties hereto. The headings
        in
        this Agreement are for convenience of reference only and shall not be construed
        as part of this Agreement or to limit or otherwise affect the meaning
        hereof.

       

      (Signature
        Page Follows)

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, each of the Company and the Bank have caused this Agreement
        to
        be executed by its duly authorized officer and the Executive has signed this
        Agreement, effective as of the date first written above.

       

      

      
        	 	
                PEOPLES
                  BANK SB

              
	 	 	 
	 	 	 
	 	
                By:

              	 
	 	
                Name:

              	 
	 	
                Title:

              	 
	 	 	 
	 	 	 
	 	 	 
	 	
                NORTHWEST
                  INDIANA BANCORP

              
	 	 	 
	 	 	 
	 	
                By:

              	 
	 	
                Name:

              	 
	 	
                Title:

              	 
	 	 	 
	 	 	 
	 	 	 
	 	
                DAVID
                  A. BOCHNOWSKI

              
	 	 
	 	 
	 	
                10203
                  Cherrywood Lane

              
	 	
                Munster,
                  Indiana 46321

              

      

      
 

       

       

      15

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