Document:

Exhibit

STATE OF LOUISIANA
PARISH OF LAFAYETTE
CHANGE IN CONTROL AGREEMENT
AGREEMENT MADE as of the 30th day of January, 2019 by and between MIDSOUTH BANCORP, INC., a Louisiana corporation, domiciled in Lafayette, Louisiana ("MIDSOUTH") and Chris Mosteller, of full age of majority, ("EXECUTIVE"), by these presents do agree and contract that:
WHEREAS, Executive is employed by MidSouth Bank, N.A. (the "Bank"), the wholly-owned banking subsidiary of MIDSOUTH, and serving as an officer of either or both of MIDSOUTH and the Bank; and
WHEREAS, Executive's services have contributed, and are expected to continue to contribute, to the success and financial strength of MIDSOUTH; and
WHEREAS, MIDSOUTH now wishes to assure itself of the continued opportunity to benefit from Executive's services as an employee of the Bank and an officer of either or both of MIDSOUTH and the Bank; and
WHEREAS, the Board of Directors of MIDSOUTH (the "Board") has determined that the best interests of MIDSOUTH would be served by setting forth the benefits which MIDSOUTH will provide to Executive in the event Executive's employment is terminated on or after a Change in Control (as defined herein) under the circumstances described herein, subject to any necessary prior regulatory approval/non-objections to the form of this Agreement, and any necessary prior approval/non-objections of any payments proposed to be made under this Agreement pursuant to 12 C.F.R. Part 359 of the FDIC rules and regulations, if applicable.
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties do agree and contract as follows:
1.
This Agreement is effective as of the date set forth above and shall continue until the earlier of (i) the payment of all amounts owed hereunder, if any, or (ii) the termination of EXECUTIVE's employment without any amounts becoming payable to EXECUTIVE hereunder. EXECUTIVE will be deemed to have terminated EXECUTIVE's employment hereunder when EXECUTIVE has incurred a "separation from service" within the meaning of Section 409A of the Code from MIDSOUTH and the Bank, where it is reasonably anticipated that EXECUTIVE will not perform any further services after that date or that the level of bona fide services that EXECUTIVE will perform after that date (whether as an employee or independent contractor) will permanently decrease to no more than twenty percent (20%) of the average level of bona fide services

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EXECUTIVE performed over the immediately preceding thirty-six (36) month period (or, if lesser, the period of EXECUTIVE's employment).
2.
If, during the term of this Agreement, MIDSOUTH or the Bank terminates EXECUTIVE's employment without Cause or EXECUTIVE terminates EXECUTIVE's employment with MIDSOUTH or the Bank for Good Reason, in either case upon or within two years after a Change in Control ("Separation Upon Change in Control"), subject to Paragraphs 7, 8, 9 and 10 below, EXECUTIVE shall be entitled to receive payment of EXECUTIVE'S Annual Base Salary for 12 months, such period to commence immediately following termination of EXECUTIVE's employment and such payment to be payable in accordance with the established payroll practices of MIDSOUTH (but no less frequently than monthly), beginning on the first payroll date immediately following termination of EXECUTIVE's employment. Notwithstanding the foregoing, MIDSOUTH and EXECUTIVE can agree for the payment to be paid in a single lump-sum payment as soon as administratively practicable (and no later than 30 days) after termination of EXECUTIVE's employment, if and only if payment in a single lump sum would not violate Section 409A of Internal Revenue Code of 1986, an amended (the "Code"). Notwithstanding anything in this Agreement to the contrary, any such payment obligation pursuant to this Agreement shall be solely an obligation of MIDSOUTH and not an obligation of the Bank.
For purposes of this Agreement,
(i)"Annual Base Salary" shall mean the annual base salary EXECUTIVE is entitled to receive from MIDSOUTH and/or the Bank as in effect immediately preceding the date of EXECUTIVE's termination of employment or, if greater, EXECUTIVE's annual base salary as in effect immediately preceding any action by MIDSOUTH described in Paragraph 2(iv) below for which EXECUTIVE has terminated EXECUTIVE's employment for Good Reason; and
(i)"Cause" shall mean, as determined by the Board in good faith, any of the following: (A) EXECUTIVE's willful misconduct or gross negligence in connection with the performance of EXECUTIVE's duties which the Board believes does or is likely to result in material harm to MIDSOUTH or any of its subsidiaries; (B) EXECUTIVE's misappropriation or embezzlement of funds or property of MIDSOUTH or any of its subsidiaries, including the Bank; (C) EXECUTIVE's fraud or dishonesty with respect to MIDSOUTH or any of its subsidiaries, including the Bank; (D) EXECUTIVE's conviction of or entering of a guilty plea or plea of no contest with respect to any felony or any other crime involving moral turpitude or dishonesty; or (E) EXECUTIVE's breach of fiduciary duties owed to MIDSOUTH or any of its subsidiaries, including the Bank; provided, however, EXECUTIVE shall not be deemed to have been terminated for Cause hereunder unless and until there has been delivered to EXECUTIVE a letter from the Board finding that EXECUTIVE has engaged in the conduct set forth in any of the preceding clauses and specifying the particulars thereof in detail and a copy of a resolution duly adopted by the affirmative vote of the majority of the members of the Board who are not officers of MIDSOUTH at a meeting of the Board of Directors called and held for such purpose or such other appropriate written consent (after reasonable notice to EXECUTIVE and an opportunity for EXECUTIVE, together with EXECUTIVE's counsel, to be heard before the Board), finding that EXECUTIVE has engaged in such conduct and specifying the particulars thereof in detail; and
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(iii)"Change in Control" shall mean a change in the ownership of MIDSOUTH or in a substantial portion of the assets of MIDSOUTH (but not solely the effective control of MIDSOUTH) within the meanings set forth in Section 409A of the Code and the regulations promulgated thereunder. Notwithstanding the foregoing, a Change in Control shall not include changes precipitated by an assisted transaction, conservatorship, or receivership as provided in 12 C.F.R. §359.4(a)(3) as long as MIDSOUTH is subject to the golden parachute payment provision of 12 C.F.R. §359; and
(iv)"Good Reason" shall mean, without EXECUTIVE's written consent, any of the following: (A) any action taken by MIDSOUTH or any of its subsidiaries which results in a material reduction in EXECUTIVE's authority, duties or responsibilities, (B) the assignment to EXECUTIVE of duties that are materially and adversely inconsistent with EXECUTIVE's authority, duties or responsibilities; (C) any material decrease in EXECUTIVE's Annual Base Salary or annual bonus opportunity or the benefits generally available to the class of employees that includes EXECUTIVE (whether payable or provided by MIDSOUTH or any of its subsidiaries), (D) the relocation of EXECUTIVE to any principal place of employment other than EXECUTIVE's current place of employment as of the date hereof that would require an additional commute of 50 or more miles or (E) the failure by MIDSOUTH or any of its subsidiaries to pay to EXECUTIVE any portion of EXECUTIVE's Annual Base Salary, annual bonus or other benefits within 10 days after the date the same is due; provided, however, that EXECUTIVE must give MIDSOUTH notice of any event or condition that would constitute "Good Reason" within 30 days of the event or condition which would constitute "Good Reason," and upon the receipt of such notice MIDSOUTH and its subsidiaries shall have 30 days to remedy such event or condition, and if such event or condition is not remedied within such 30-day period, any termination of employment by EXECUTIVE for "Good Reason" must occur within 30 days after the period for remedying such condition or event has expired.
3.
		
	(a)
	EXECUTIVE agrees that during EXECUTIVE's employment with MIDSOUTH or the Bank and for a period of twelve months following a Separation Upon Change in Control, without the prior written consent of MIDSOUTH, EXECUTIVE shall refrain, directly or indirectly, and whether as a principal, agent, executive or otherwise, alone or in association with any other person or entity, from

		
	(i)
	Carrying on or engaging in a business similar to the Business of MIDSOUTH and the Bank within the Designated Area (so long as MIDSOUTH or the Bank carries on a business therein), by performing activities that are the same as or similar to the type conducted, authorized, offered, or provided by EXECUTIVE to the Bank within the 24-month period prior to the termination of EXECUTIVE's employment;

		
	(ii)
	Soliciting customers of MIDSOUTH and/or the Bank within the Designated Area (so long as MIDSOUTH or the Bank carries on a business therein) for the purpose of offering or providing any products or services that are similar to or competitive with the Business of MIDSOUTH; and

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	(iii)
	Soliciting or attempting to solicit any employee or independent contractor of MIDSOUTH or the Bank within the Designated Area with whom Employee had direct personal contact during the last 24 months of Employee's employment with MIDSOUTH or the Bank to work for or provide services to any business that competes with the Business of MIDSOUTH or inducing or attempting to induce that employee or independent contractor to terminate or lessen his or her affiliation with MIDSOUTH or the Bank or to violate the terms of any agreement or understanding between that individual and MIDSOUTH or the Bank.

For the purposes of this Agreement, if EXECUTIVE becomes employed by a competing business, regardless of whether or not EXECUTIVE is an owner or equity interest holder of that competing business, then EXECUTIVE shall be deemed to be carrying on or engaging in a business similar to that of MIDSOUTH and the Bank.
		
	(b)
	Definition of Designated Area. The term "Designated Area" shall mean the Louisiana parishes of Caddo, Calcasieu, DeSoto, East Baton Rouge, Iberia, Jefferson Davis, Lafayette, Lafourche, Natchitoches, Sabine, Saint Landry, Saint Martin, Saint Mary, and Terrebonne, and the Texas counties of Brazos, Collin, Dallas, Harris, Hunt, Jefferson, Montgomery, Orange, Rockwall, and Smith.

		
	(c)
	Definition of Business of MIDSOUTH. For the purposes of this Agreement, the "Business" shall be defined as the provision of commercial and consumer banking services or providing other financial products and services of the type provided by MIDSOUTH or the Bank.

		
	(d)
	In the event that EXECUTIVE breaches the terms of the noncompetition and nonsolicitation provisions set forth in this Paragraph 3, in addition to any other injunctive or monetary relief available to MIDSOUTH as a result of such breach, as specified in Paragraph 3(e) below, MIDSOUTH'S obligation to continue paying any installment payments still owed in accordance with this Agreement shall immediately cease and EXECUTIVE shall be required to repay to MIDSOUTH the gross amount (before tax withholdings) of any payments previously made under this Agreement.

		
	(e)
	In the event of a breach, or a threatened breach, of any aspect of this noncompetition and nonsolicitation covenant contained in this Paragraph 3, MIDSOUTH shall, in addition to all other remedies, be entitled to: (i) a temporary, preliminary, and/or permanent injunction against such breach without the necessity of showing any actual damages or any irreparable injury, (ii) a decree for the specific performance of this covenant, and/or (iii) damages, attorney's fees and costs.

4.
This Agreement shall supersede the terms of any prior agreement or understanding between
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EXECUTIVE and MIDSOUTH or any of its subsidiaries, including the Bank, relating solely to severance in connection with the termination of EXECUTIVE's employment on or within two years after a Change in Control. In addition, EXECUTIVE acknowledges and agrees that EXECUTIVE will not be eligible to receive benefits under the MIDSOUTH Bank Severance Plan if EXECUTIVE becomes entitled to receive payments under this Agreement. This Agreement shall not supersede any of EXECUTIVE's eligibility for health and welfare benefits including COBRA, nor supersede any short-term and long-term incentive compensation agreements entered by EXECUTIVE and MIDSOUTH or the Bank. No amendment or modification of the terms of this Agreement shall be binding or effective unless expressed in writing and signed by each party.
5. 
This Agreement shall be construed in accordance with and governed by the laws of the State of Louisiana.
6. 
It is understood and agreed that should any portion of any clause or paragraph of this Agreement be deemed too broad to permit enforcement to its fullest extent, or should any portion of any clause or paragraph of this Agreement be deemed to be unreasonable or unlawful, then said clause shall be reformed and enforced to the maximum extent permitted by law. In the event that such portion of any clause or paragraph be deemed incapable of reform, the offending language shall be severed, and the remaining terms and provisions of this Agreement shall remain unaffected, valid, and enforceable for all purposes.
If any of the provisions contained in Paragraph 3 of this Agreement are found by a court of competent jurisdiction to exceed the maximum enforceable (i) periods of time, (ii) geographic areas of restriction, (iii) scope of noncompetition or nonsolicitation, and/or (iv) description of MIDSOUTH'S business, or for any other reason, then such unenforceable element(s) of this Agreement shall be reformed by such court and reduced to the maximum periods of time, geographic areas of restriction, scope of noncompetition or nonsolicitation and/or description of MIDSOUTH' s business that is permitted by law.
7. 
It is intended that any payment or benefit which EXECUTIVE is to be paid or provided in connection with the Agreement which is considered to be non-qualified deferred compensation subject to Section 409A the Code, shall be paid and provided in a manner, and at such time, as complies with, or is exempt from, the applicable requirements of Section 409A of the Code. In connection with effecting such compliance with, or exemption from, Section 409A of the Code, the following shall apply:
(a)    Neither EXECUTIVE nor MIDSOUTH shall take any action to accelerate or delay
the payment of any monies in any matter which would not be in compliance with, or exempt from, Section 409A of the Code.
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	(b)
	If EXECUTIVE is a "specified employee" for purposes of Section 409A(a)(2)(B)(i) of the Code, any payment in connection with EXECUTIVE's separation from service (as determined for purposes of Section 409A of the Code) shall not be made until six months after EXECUTIVE's separation from service or, if earlier, EXECUTIVE's death (the "409A Deferral Period") as and only to the extent required by Section 409A of the Code. In the event such payments are otherwise due to be made in installments or periodically during the 409A Deferral Period, the payments which would otherwise have been made in the 409A Deferral Period shall be accumulated and paid in a lump sum as soon as the 409A Deferral Period ends, and the balance of the payments shall be made as otherwise scheduled.

		
	(c)
	A "specified employee" for purposes of Section 409A(a)(2)(B)(i) of the Code shall be determined on the basis of the applicable twelve-month period ending on the specified employee identification date designated by MIDSOUTH consistently for purposes of this Agreement and similar agreements or, if no such designation is made, based on the default rules and regulations under Section 409A(a)(2)(B)(i) of the Code.

		
	(d)
	If any amount payable under this Agreement qualifies as exempt separation pay but exceeds two times the limit set forth in Section 401(a)(17) of the Code, the portion of the payment that shall be deemed to constitute exempt separation pay shall be the amounts paid earliest in time.

8. 
Notwithstanding any other provision of this Agreement, EXECUTIVE's right to receive any payments under Paragraph 2 of this Agreement in the event of a Separation Upon a Change in Control, is contingent upon and subject to: (i) any restrictions imposed upon MIDSOUTH or its subsidiaries by law or any regulatory bodies with authority over MIDSOUTH or its subsidiaries and (ii) EXECUTIVE signing and delivering to MIDSOUTH a complete general release of all claims in a form acceptable to MIDSOUTH, and allowing the applicable revocation period required by law to expire without revoking or causing revocation of same, within the 60 days following the date of the Separation Upon a Change in Control. Any payments to be made under Paragraph 2 of this Agreement prior to the date the Release becomes effective and irrevocable shall be accumulated and paid in a lump sum on the first payroll date occurring after the Release becomes effective and irrevocable, except that, if the 60 days for EXECUTIVE to deliver the signed Release to MIDSOUTH and the revocation period thereunder to expire without EXECUTIVE having elected to revoke the Release, spans more than one calendar year, none of the payments under Paragraph 2 of this Agreement can commence until the subsequent calendar year.
9. 
Executive agrees to forfeit the right to receive any further installments owed under the Agreement and to repay the gross amount (before tax withholdings) of any installments previously
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paid or otherwise made available to Executive under this Agreement if the compensation would be or is subject to recovery under any applicable law (including any rule of any exchange or service through which the securities of MIDSOUTH or any of its related entities ("Affiliates") are then traded), including, but not limited to, the following circumstances:
		
	(i)
	where such compensation was in excess of what should have been paid or made available because the determination of the amount due was based, in whole or in part, on materially inaccurate financial information of MIDSOUTH;

		
	(ii)
	where such compensation constitutes "excessive compensation" within the meaning of 12 C.F.R. Part 30, Appendix A;

		
	(iii)
	where Executive has committed, is substantially responsible for, or has violated, the respective acts, omissions, conditions, or offenses outlined under 12 C.F.R. Section 359.4(a)(4); and

		
	(iv)
	if MIDSOUTH or one of its Affiliates becomes, and for so long as MIDSOUTH or its Affiliate remains, subject to the provisions of 12 U.S.C. Section 1831o(f), where such compensation exceeds the restrictions imposed on the senior executive officers of such an institution.

Executive agrees to return promptly any such compensation identified by MIDSOUTH by written notice to EXECUTIVE. If Executive fails to return such compensation promptly, Executive agrees that the amount of such compensation may be deducted from any other compensation owed to Executive by MIDSOUTH. Executive acknowledges MIDSOUTH' s rights to engage in any legal or equitable action or proceeding in order to enforce the provisions of this Paragraph 9. The provisions of this Paragraph 9 shall be modified to the extent, and remain in effect for the period, required by applicable law.
10. 
Notwithstanding the timing for the payment of any severance amounts described in Paragraph 2, no such payments shall be made or commence, as applicable, that require the concurrence or consent of the appropriate federal banking agency of MIDSOUTH pursuant to 12 C.F.R. Section 359 prior to the receipt of such concurrence or consent. Any payments suspended by operation of this Paragraph 10 shall be paid as a lump sum within thirty (30) days following receipt of the concurrence or consent of the appropriate federal banking agency of MIDSOUTH or as otherwise directed by such federal banking agency or on the schedule outlined in Paragraph 2, whichever is later.
11. 
This Agreement shall not be deemed to constitute an employment contract between MIDSOUTH or any of its subsidiaries, including the Bank, and EXECUTIVE, and nothing herein shall be deemed to give EXECUTIVE the right to continue in the employ of MIDSOUTH, the
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Bank or any of their subsidiaries, or interfere with the right of MIDSOUTH, the Bank or any of their subsidiaries to discharge EXECUTIVE at any time and for any reason.
12. 
This Agreement may be modified or amended only in writing signed by EXECUTIVE and a duly authorized agent of the Board in his or her official capacity representing the Board.
13. 
Notwithstanding anything in this Agreement to the contrary, in the event any payment payable or benefit deliverable to or for the benefit of EXECUTIVE, whether paid or payable or delivered or deliverable pursuant to the terms of this Agreement or any other plan or agreement between EXECUTIVE and MIDSOUTH or the Bank (the "Total Payments"), is or will be subject to the excise tax imposed by section 4999 of the Code (the "Excise Tax"), then the Total Payments shall be reduced to the maximum amount that could be paid to EXECUTIVE without giving rise to the Excise Tax (the "Safe Harbor Cap"), if and only if the net after-tax payment to EXECUTIVE after reducing EXECUTIVE' s Total Payments to the Safe Harbor Cap is greater than the net after-tax (including after payment of the Excise Tax) payment to EXECUTIVE without such reduction. The reduction of the amounts payable hereunder, if applicable, shall be made by reducing first the payments made pursuant to this Agreement (against the amounts payable latest in time to the extent practicable) and then to any other plan or agreement that triggers such Excise Tax (against the amounts payable latest in time to the extent practicable). All mathematical determinations, and all determinations as to whether any of the Total Payments are "parachute payments" (within the meaning of Section 280G of the Code), that are required to be made under this paragraph, including determinations as to whether the Total Payments to EXECUTIVE shall be reduced to the Safe Harbor Cap and the assumptions to be utilized in arriving at such determinations, shall be made by the outside accounting firm selected by MIDSOUTH (the "Accounting Firm"). The Accounting Firm's determinations shall be final, binding and conclusive on all parties except as described in the following sentences. If the Accounting Firm determines that no Excise Tax is imposed on the Total Payments and it subsequently is established pursuant to a final determination of a court or an Internal Revenue Service proceeding which has been finally and conclusively resolved, that the Total Payments are in excess of the Safe Harbor Cap (hereinafter referred to as an "Excess Payment"), such Excess Payment shall be deemed for all purposes to be an overpayment to EXECUTIVE made on the date EXECUTIVE received the Excess Payment and EXECUTIVE shall repay the Excess Payment to MIDSOUTH on demand; provided, however, if EXECUTIVE shall be required to pay an Excise Tax by reason of receiving such Excess Payment (regardless of the obligation to repay MIDSOUTH), EXECUTIVE shall not be required to repay the Excess Payment (and if EXECUTIVE has already repaid such amount MIDSOUTH shall refund the amount to EXECUTIVE). This paragraph shall supersede any contrary provisions in any other plan or agreement between EXECUTIVE and MIDSOUTH or the Bank.
[Signature Page Follows]
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Dated and Executed this 12th day of February 2019.
EXECUTIVE:
/s/Chris Mosteller
Chris Mosteller

MIDSOUTH BANCORP, INC.
/s/D. Michael Kramer
D. Michael Kramer  
Title: Chairman

[Signature Page to Change of Control Agreement]

9

35240817v4Exhibit

Annual Incentive Compensation Plan (AICP)

		
	Policy Name:
	Annual Incentive Compensation Plan

		
	Policy Approval Authority: 
	MidSouth Bank Board of Directors/Compensation Committee

Sponsor:                Corporate Efficiency Officer/Human Resources
        
Approval Date:                March 27, 2019

MIDSOUTH BANCORP, INC.

ANNUAL INCENTIVE COMPENSATION PLAN

2019 PLAN YEAR

STRICTLY CONFIDENTIAL

ANNUAL INCENTIVE COMPENSATION PLAN

INTRODUCTION

MidSouth Bancorp, Inc. (the “Company”) is a financial holding company founded in 1985 and headquartered in Lafayette, LA.  The Company intends to provide annual incentive award opportunities for employees eligible to participate in the 2019 Annual Incentive Compensation Plan (the “Plan”) to encourage those employees to achieve targeted business objectives of the Company.  These annual incentive awards will provide a payment based upon attainment of these specified goals and objectives.  The objective is aligning the interests of the Company’s employees with the interests of the Company and its shareholders in obtaining targeted financial results.

DEFINITIONS

As referenced within this Plan, the following words and phrases shall have the following meanings:

		
	1.
	“Actual Base Salary” means the annual rate of base salary payable to the Plan Participant as of the end of the Plan Year to which the annual incentive relates or, if earlier, at the time of the Plan Participant’s Termination of Employment.

		
	2.
	“Board” means the Board of Directors of the Company as constituted from time to time.

		
	3.
	“Code” means the Internal Revenue Code of 1986, as amended.

		
	4.
	“Disability” means the employee suffering a sickness, accident, or injury which has been determined by the carrier of any individual or group disability insurance policy covering the employee or if no such policy exists then by the Social Security Administration, to be a disability rendering the employee totally and permanently disabled. The employee must submit proof to the Plan Administrator of the carrier’s or Social Security Administration’s determination upon the request of the Plan Administrator.

		
	5.
	“Effective Date” means January 1, 2019.

		
	6.
	Plan Administrator” means the plan administrator described in Article VII.

		
	7.
	“Plan Participant” means any current employee of the Company that is designated by the Chief Executive Officer (“CEO”), and approved by the Board, as eligible to participate in this Plan.  Newly-hired or newly-promoted employees must be designated by the CEO and approved by the Board to participate in the Plan.  The CEO will recommend, and the Board will approve, the level of participation to which each employee will be eligible.

		
	8.
	“Plan Year” means the twelve-month period commencing on January 1st and ending on December 31st of each calendar year. The initial Plan Year shall commence on the Effective Date.

		
	9.
	“Termination of Employment” means the Plan Participant ceases to be employed by the Company and its subsidiaries for any reason whatsoever (whether voluntary or involuntary).  The Plan Participant will not be considered to have incurred a Termination of Employment if the Plan Participant is on an approved leave of absence with any legal or contractual right to return to employment.

		
	I.
	PLAN PURPOSE

The Plan is prospective in design with the utilization of a defined payout formula that is based upon the achievement of a combination of predetermined overall Company and other Plan Participant criteria.  This Plan is designed to reward Plan Participants based on the achievement of financial and strategic goals as set forth annually by the Company.  The Plan is further intended to reward Plan Participants for their performance while prudently managing risks associated with any activity associated with achievement of specific goals and objectives.  Annual performance is important but must be combined with long-term performance standards to ensure necessary safety and soundness for the Company and its shareholders.

The Plan will commence on the Effective Date.

		
	II.
	PARTICIPATION

Eligibility for participation in the Plan shall be limited to those employees whose responsibilities, in the judgment of the CEO and Board, have a significant bearing on the success and performance of the Company.

The CEO shall submit to the Board for each Plan Year a list of employees eligible for participation in the Plan for that Plan Year, the annual incentive award factors and their weighting, and the incentive ranges and award payouts allocated to each such Plan Participant.  The Board will approve those employees who will be eligible for participation in the Plan for that Plan Year, the annual incentive award factors and their weighting, and the incentive ranges and award payouts allocated to each such Plan Participant.  Each Plan Participant shall be notified of his or her eligibility for participation in the Plan as soon as administratively practicable after Board approval.  Plan Participants may commence participation any time prior to October 1st of the Plan Year at the discretion of the CEO with Board approval.  The annual incentive award, if any, payable to any Plan Participant for the Plan Year will be prorated based on the number of full months of participation in the Plan for the Plan Year with respect to any Plan Participant who is not employed as of the first day of the Plan Year.  No Plan Participants may be added to the Plan on or after October 1st of the Plan Year.  Eligibility for the Plan will be determined annually for each Plan Year by the CEO and the Board as described herein.  

PLAN YEAR

The period over which performance is measured and the amount of the incentive award for each Plan Participant will be determined shall be the Plan Year.

		
	III.
	GENERAL PLAN DESIGN

The Company recognizes the need to implement a performance-based incentive program for executives, key officers, and other employees as designated by the CEO and approved by the Board.  In order to align the Plan with safety and soundness principles, the Plan design incorporates a tiered approach with annual incentive awards linked to the achievement of pre-defined performance goals.  The incentive awards utilized in the Plan are designed to provide market competitive payout percentages for the achievement of the established performance-based goals.  Award levels are pre-established for each Plan Participant and are designated as a percentage of the Plan Participant’s Actual Base Salary.  Levels of achievement are generally classified as “Threshold” (performance measure below Target level, but still eligible for incentive award once Threshold is achieved or exceeded; performance below threshold will result in no payment of the incentive award), “Target” (performance goal standard, also referred to as “forecast”), and “Maximum” (performance level above Target whereby award payout may be either formulaic or discretionary, subject to any established maximum payout).

		
	IV.
	EARNINGS OF ANNUAL INCENTIVE AWARDS

Annual incentive awards are based on achievement of the performance criteria that has been pre-established and communicated to Plan Participants.  As the Plan develops and priorities change, performance measures, award payout levels and Company goals may change annually.

The annual incentive awards are to be paid on an annual basis in the form of supplemental cash compensation (subject to required tax or other withholdings).  Annual cash awards will be paid using the following schedule.  Dependent upon the Company meeting its pre-established performance goals , Plan Participants who have achieved their predetermined performance goals at the threshold, target, or maximum levels, and who have satisfied qualifying criteria as designated within their Plan Participant worksheet in order to be eligible to be paid the incentive award, will be paid the amount of the annual incentive award that corresponds to the Plan Participant’s level of achievement no later than two and one-half months following the end of the Plan Year with respect to which the annual incentive award was determined.  Payment within this time period is necessary to avoid classifying incentive awards as nonqualified deferred compensation under IRC Section §409A.  

		
	A.
	Annual Incentive Award Levels

Threshold, target, and maximum award levels, expressed as a percent of the Plan Participant’s Actual Base Salary, will be established for each eligible Plan Participant.

Percentage payouts will be calculated using either a ratable or fixed percentage approach whereby award payouts will be calculated at the threshold, target, and maximum criteria levels as well as at criteria levels between threshold and target and between target and maximum.  

		
	B.
	Performance Standards

The Plan will provide annual incentive awards to Plan Participants based on overall Company and Plan Participant performance as follows:

		
	1.
	Company Performance – The incentive awards for Company performance will be based on the Company’s overall success as measured by criteria recommended by the CEO and determined by the Board.  Percentage payouts for Company performance will be allocated based on the achievement of each pre-established Company performance goal for each Plan Participant in the Plan.

		
	2.
	Plan Participant Performance – For all Plan Participants, pre-determined Company, Bank, Regional and/or Individual Participant performance criteria may also be used to determine the amount of the Plan Participant’s award payout.  A percentage of each Plan Participant’s annual incentive award will be based on achievement of Plan Participant criteria, as recommended by the CEO and determined by the Board (which will be stated in the Plan worksheets).  The specific Plan Participant performance objectives will be established at the same time as the other performance goals.

For each performance factor (overall Company and Plan Participant), an appropriate standard of performance is intended to be established with three essential performance points:

		
	1.
	Threshold Performance: Equal to or exceeding threshold is the minimum level of performance needed to receive an award.

		
	2.
	Targeted Performance: The forecasted, or expected, level of performance based upon both historical data and management’s best judgment of expected performance during the coming performance period.

		
	3.
	Maximum Performance: The level of performance which based upon historical performance and management’s judgment would be exceptional or beyond the Target Performance level.

Performance standards are determined by using the Company’s performance history, safety and soundness principles, peer data and management’s judgment of what levels can be achieved without taking imprudent and unnecessary risk based on current market conditions.  Once the targeted performance is established, the Threshold and Maximum payout levels are calculated if applicable. Maximum levels may be subject to discretionary payouts upon the approval of the CEO and the Board.

Notwithstanding the foregoing, the Board in its discretion may determine if an extraordinary occurrence outside of management’s influence, including but not limited to unanticipated mergers or acquisitions, changes in regulatory, tax or accounting laws, or other similar items, be it a windfall or a shortfall, has occurred during the Plan Year, and whether the incentive awards should be adjusted to neutralize the effects of any such events.  Additionally, the Board in its discretion may determine if an unacceptable performance event has occurred during the Plan Year or after the end of the Plan year and before award payout, such as a major management default of primary responsibilities, or a discovery of fraud, which will result in an adjustment, reduction or elimination of any award payout for any Plan Participant.  

		
	C.
	Qualifiers

As qualifiers to receive awards under this Plan, the Company must meet its target goal established as the minimum performance achievement which must be met to pay any incentive awards for the Plan Year and Net Income must be at least 70% of targeted Net Income of $9,048,212 or $6,333,748, and each Plan Participant must achieve not only satisfactory performance, but also individual qualitative factors as designated within their Plan Participant worksheet.  The performance rating of each Plan Participant will be derived from the current performance management system utilized by the Company.  Weighting for each performance criteria (overall Company or Plan Participant) is allocated based on the Plan Participant’s level of responsibilities and overall ability to impact results, as recommended by the CEO and determined by the Board.  

		
	D.
	Payment of Awards

The procedure for calculating the Plan Participant annual incentive award entails the following steps:

		
	1.
	Except as described below, a Plan participant must be an active employee of the Company or its subsidiary at the time of the award payout in order to be eligible to receive the award payout. 

		
	2.
	Performance levels will be determined relative to specific achievement per Plan Participant.  Each individual award payout is calculated using a percent of the Plan Participant’s Actual Base Salary for the Plan Year with respect to which the incentive bonus is to be determined.

		
	3.
	For each Plan participant, the incentive award for each factor is multiplied by the assigned factor weighting.

		
	4.
	The incentive award, expressed in dollars, is then computed for each Plan Participant by calculating the award payout proportion as compared to designated levels and then adding each factor’s award result.

		
	5.
	Incentive awards are paid out to each eligible Plan Participant according to the established schedule.

		
	6.
	Awards will be paid on an annual basis no later than two and one-half months following the end of the Plan Year with respect to which the incentive bonus is to be determined. 

		
	V.
	PROGRAM ADMINISTRATOR

Administration of the Plan is the joint responsibility of the Board, the CEO, and Human Resources (or others as designated) within the Company.

		
	A.
	Responsibilities of the Board of Directors

The Board has the responsibility to approve, amend, or terminate the Plan as the Board in its discretion shall determine. The actions of the Board shall be final and binding on all parties.

The Board has the responsibility to administer and interpret the Plan.  Prior to or as soon as administratively practicable after the beginning of each Plan Year, the Board shall review and revise, if deemed advisable, the operating rules of this Plan for the Plan Year to follow.  After approval by the Board, management shall, as soon as practical, inform each of the Plan Participants under the Plan of their potential award under the operating rules adopted for the Plan Year to follow.

The Board shall determine and/or approve the final payout of each Plan Participant’s incentive award in accordance with the terms of the Plan.

		
	B.
	Responsibilities of the CEO

The CEO of the Company administers the program directly and provides liaison to the Board, including the following specific responsibilities:

		
	1.
	Recommend Plan Participant Changes Each Plan Year.

		
	a.
	This involves determining if additional employees will participate in the Plan and if any employees are to be removed from participating in the Plan.

		
	2.
	Recommendations for Annual Incentive Awards.

		
	a.
	The CEO will review the objectives and evaluations, adjust guideline awards for performance, and recommend final awards to the Board.

		
	b.
	Make appropriate adjustments on a discretionary basis for any payout inequities.

		
	3.
	Present All Other Appropriate Recommendations to the Board.

		
	a.
	Such recommendations may include changes in the Plan provisions which occur during the life of the Plan.

		
	C.
	Responsibilities of Human Resources (or Designee)

The Director of Human Resources, or designated other, of the Company will act as the Plan Administrator with regard to responsibilities for reporting the performance during the course of the Plan Year as determined by the CEO or the Board, however, additional responsibilities may be assigned to the Plan Administrator by the Board or the CEO.  All necessary reporting to outside auditors for inclusion in annual reporting will be carried out by the CEO or its designee.  Otherwise, Director of Human Resources, or designed other, will handle all ministerial duties with respect to the Plan.  

		
	VI.
	TERMINATION OF EMPLOYMENT

		
	i.
	Death of Plan Participant: In the event of the death of a Plan Participant during the Plan Year or prior to payout of the award, the incentive award attributable to that Plan Participant will be paid to the Plan Participant’s designated beneficiary(s) in an amount equal to what the Plan Participant would have received had the Plan Participant remained employed with the Company, at the normal time set forth above.  If the Plan Participant dies during the Plan Year, the Plan Participant will be deemed to have achieved Target performance with respect to any individual performance goals assigned to the Plan Participant with respect to that Plan Year.

		
	ii.
	Plan Participant Disability: If a Plan Participant incurs a Disability during the Plan Year or prior to payout of the award, the incentive award attributable to that Plan Participant will be paid to the Plan Participant in an amount equal to what the Plan Participant would have received had the Plan Participant remained employed with the Company, at the normal time set forth above.  If the Plan Participant incurs a Disability during the Plan Year, the Plan Participant will be deemed to have achieved Target performance with respect to any individual performance goals assigned to the Plan Participant with respect to that Plan Year.  

		
	iii.
	Termination of Employment: If a Plan Participant incurs a Termination of Employment prior to payout of the award other than as the result of death or Disability, that Plan Participant will forfeit any unvested, unpaid or accrued incentive award, whether or not it was earned by such Participant.

		
	iv.
	Change in Control: If a Change-in-Control, as defined by U. S. Treasury guidelines, occurs during any Plan Year, the incentive awards for that Plan Year will be deemed to have been earned at Target and the Plan Year closed as of the date of the Change in Control, and the incentive awards for that Plan year shall be payable to Plan Participants no later than two and one-half months following the Change in Control otherwise in accordance with the terms of the Plan.  If a Change in Control occurs after the end of the Plan Year, incentive awards for that Plan Year will be paid in accordance with the terms of the Plan except that each Plan Participant will be deemed to have achieved no less than Target performance with respect to any individual performance goals assigned to the Plan Participant with respect to that Plan Year

		
	VII.
	AMENDMENTS AND TERMINATION OF PLAN

The Board may amend or terminate this Plan at any time.  Upon termination, no further incentive awards will be paid for any future Plan Years; but, incentive awards for the Plan Year in which the termination occurs or any prior Plan Years will be paid in accordance with the terms of the Plan unless prohibited by applicable laws.

		
	VIII.
	COMMUNICATION OF PLAN TO PLAN PARTICIPANTS

In order for an incentive to produce increases in productivity and results, it is essential that Plan participants receive vital input required to make daily management decisions that should positively affect the Company’s growth and profitability.  Thus, it is most useful for senior management to make use of periodic reviews of the targets set to measure Plan performance.  In other words, the performance targets are intended to become one of the methods by which senior management directs the day-to-day operating activities of the management team.

Key communication events are intended to include:

		
	i.
	An initial communication to all Plan Participants of the Plan details, including the performance targets set for the Plan Year.  It is intended that the Company communicate Plan objectives as soon as administratively practicable after they are established.

		
	ii.
	Communication of new performance targets, Plan procedure changes, etc., as soon as administratively practicable.

		
	iii.
	Periodic (quarterly) reviews throughout the Plan Year as part of general senior management staff meetings.  These reviews are intended to include a review of performance year-to-date and any changes that assure attainment of the Plan objectives.

		
	iv.
	A Plan year-end review of probable Plan results, including an estimate of the Company’s performance on each measure/weighted factor.

		
	v.
	A discussion of Plan Participant contribution to the overall team results, as part of the presentation of the annual incentive award.

Finally, it is intended that each Plan Participant be provided sufficient data throughout the Plan Year, so that each Plan Participant can project probable earnings from the Plan.  It is intended to be re-emphasized to senior management that specific goals and objectives and the means to accomplishment, as well as the rewards for successful attainment, be communicated in detail to each Plan Participant.

		
	IX.
	MISCELLANEOUS

		
	i.
	No Guarantee of Employment. This Plan is not an employment policy or contract.  It does not give the Plan Participant the right to remain an employee of the Company or any subsidiary, nor does it interfere with the Company’s or subsidiary’s right to discharge the Plan Participant.  It also does not require the Plan Participant to remain an employee nor interfere with the Plan Participant’s right to terminate employment at any time.

		
	ii.
	Non Transferability. Benefits under this Plan cannot be sold, transferred, assigned, pledged, attached, or encumbered in any manner.

		
	iii.
	Reorganization. If the Company shall merge into or consolidate with another company, or organize, or sell substantially all of its assets to another company, firm, or person, such succeeding or continuing company, firm or person shall succeed to, assume and discharge the obligations of the Company under this Plan.

		
	iv.
	Tax Withholding. The Company shall withhold any taxes that are required to be withheld from the payments made under this Plan.

		
	v.
	Applicable Law. The Plan and all rights hereunder shall be governed by the laws of the State of Louisiana, except to the extent preempted by the laws of the United States of America.

		
	vi.
	Entire Plan. This Plan constitutes the entire Plan between the Company and the Plan Participant as to the subject matter hereof. 

		
	vii.
	No Rights. No rights are granted to the Plan Participant by virtue of this Plan other than those specifically set forth herein.

IN WITNESS WHEREOF, the Company has signed and adopted this Plan as of February 27, 2019, to be effective as of January 1, 2019.
        

Company:

MIDSOUTH BANCORP, INC.

By:______________________

Title:_____________________

BENEFICIARY DESIGNATION
MIDSOUTH BANK, N.A.
2019 ANNUAL INCENTIVE PLAN

I, ________________________________, designate the following as beneficiary of benefits under the plan payable following my death:
Primary:
	
			
	 
	 
	%

	 
	 
	%

	 
	 
	%

Contingent:
	
			
	 
	 
	%

	 
	 
	%

	 
	 
	%

	 
	 
	%

Note:
		
	•
	Please PRINT CLEARLY or TYPE the names of the beneficiaries.

		
	•
	To name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement.

		
	•
	To name your estate as beneficiary, please write “Estate of [your name]”.

		
	•
	Be aware that none of the contingent beneficiaries will receive anything unless ALL of the primary beneficiaries predecease you.

I understand that I many change these beneficiary designations by delivering a new written designation to the Plan Administrator, which shall be effective only upon receipt and acknowledgment by the Plan Administrator prior to my death. I further understand that the designation will be automatically revoked if the beneficiaries predecease me or I have named my spouse as beneficiary and our marriage is subsequently terminated.
Name: _______________________________________________
Signature: ____________________________________________    Date: ____________________________

SPOUSAL CONSENT (Required if Spouse not named beneficiary):
I consent to the beneficiary designation above and acknowledge that if I am named beneficiary and our marriage is subsequently terminated the designation will be automatically revoked.
Spouse Name: _______________________________ Signature: ________________________ Date: _____

Received by the Plan Administrator this _____ day of __________________, 2019.
By: ________________________________________
Title: _______________________________________

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