Document:

EX-10.2

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT by and between Old National Bancorp, an Indiana corporation
(“Company”) and        (“Executive”), was made and entered into originally
effective as of January 1, 2008, was amended effective as of January 1, 2009 to make certain
clarifications under Section 409A of the Internal Revenue Code and is further amended effective
January 1, 2011 (“Agreement”).

Background

A. The Company wishes to continue the Executive’s employment as its
     (and to support the Executive’s continued employment as
     of the Bank) on the terms and conditions provided herein, and the
Executive wishes to continue in such capacity on the terms and conditions provided herein.

B. By the severance and change of control provisions contained herein, the Company wishes to
encourage the Executive to devote his/her full time and attention to the faithful performance of
his/her management responsibilities and to assist the Board of Directors in evaluating business
options and pursuing the best interests of the Company and its shareholders without being
influenced by the uncertainties of his/her own employment situation.

C. The Company employs the Executive in a position of trust and confidence, and the Executive
has become acquainted with the Company’s Business, its officers and employees, its strategic and
operating plans, its business practices, processes, and relationships, the needs and expectations
of its Customers and Prospective Customers, and its trade secrets and other property, including
Confidential Information.

Agreement

NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Executive and the
Company agree as follows:

1. Defined Terms. Throughout this Agreement, when the first letter of a word (or the
first letter of each word in a phrase) is capitalized, the word or phrase shall have the meaning
specified in Appendix A.

2. Term. The initial term of this Agreement shall begin on January 1, 2008, and shall
continue through December 31, 2009; provided, however, that beginning on January 1, 2009, and on
the first day of each year thereafter, the term of this Agreement shall automatically be extended
by one year, unless either the Company or the Executive shall have provided notice to the other at
least sixty (60) days before such date that the term shall not be extended. Notwithstanding the
preceding provisions of this Section, if a Change of Control occurs during the term of this
Agreement, such term shall not end before the second anniversary of the Change of Control;
provided, however, this sentence shall apply only to the first Change of Control while this
Agreement is in effect. If the Executive’s Employment Terminates during the Term, the obligations
contained in the Restrictive Covenants shall survive the Term.

3. Position and Duties. At all times during the Term, the Executive shall (i) serve
as        and, in such capacities, shall perform such duties and have such
responsibilities as is typical for such positions, as well as any other duties as the Board may
assign to him from time to time, (ii) diligently and conscientiously devote his/her full and
exclusive business time, energy, and ability to his/her duties and the business of the Employing
Companies, (iii) serve as a member of the Board (if elected by shareholders), (iv) serve as a
member of any Employer board, as required by the Board, and (v) comply with all directions by the
Board (other than directions that would require an illegal or unethical act or omission) and all
applicable policies and regulations of the Employing Companies. Notwithstanding the preceding
provisions, the Executive may serve as a non-employee director, a volunteer, or in other such
capacities for other entities not in competition with the Company’s Business.

4. Compensation, Benefits, and Expenses. During the Term and before the Termination
of his/her Employment, the Company shall compensate (or cause the Bank to compensate) the Executive
for his/her services as follows:

(a) Base Salary. The Executive shall receive a base salary at the annual rate of
$      from January 1, 2008 through March 31, 2008. Beginning April 1, 2008, the Executive
shall receive a base salary at the annual rate of $     , as increased from time to time by
the Board. During the Term, the Board may increase (but not decrease) the Executive’s base salary.
Base salary payments shall be made in substantially equal installments pursuant to the Employing
Companies’ established payroll procedures.

(b) Incentive Compensation. The Executive shall be entitled to incentive
compensation, including equity-based compensation, as determined by the Board from time to time,
payable in accordance with the provisions of these incentive plans or programs.

(c) Employee Benefits. The Executive shall be eligible to participate in such benefit
plans as are made available to, and on such terms and conditions applicable to, other similarly
situated executives and subject to the terms of such benefit plans. The Employing Companies may
change or terminate any such benefit plan at any time, in its sole discretion, subject to
applicable legal requirements.

(d) Vacation Benefits. The Executive shall be entitled to annual vacation in
accordance with the Employing Companies’ policies as in effect from time to time for similarly
situated executive employees, but not less than four (4) weeks of paid vacation per year.

(e) Reimbursement of Expenses. The Employing Companies shall reimburse the Executive
for reasonable business expenses incurred by the Executive in connection with the performance of
his/her duties. Such reimbursements shall be made in accordance with the Employing Companies’
established reimbursement policies, as in effect from time to time; provided, however,
reimbursements for expenses incurred during a calendar year shall be made not later than March 15
of the following year.

5. Application of Agreement. Under no circumstances shall the Executive be entitled
to payments pursuant to both Section 7 and Section 8 of this Agreement.

6. Termination of Employment; Resignation of Officer and Director Positions. Subject
to its payment obligations under this Section and Section 7 or 8, if applicable, the Company may
Terminate the Executive’s Employment at any time, with or without cause. The Executive may
voluntarily Terminate his/her Employment at any time by providing at least thirty (30) days prior
notice to the Company. Regardless of whether his/her Termination of Employment is voluntary or
involuntary, the Executive shall resign from all director positions with the Employer, effective as
of his/her Termination Date. Upon Termination of Employment, the Executive shall be entitled to
the following, in addition to any benefits payable under Section 7 or 8:

(a) Any earned but unpaid base salary, at the Executive’s then effective annual rate, through
his/her Termination Date, plus any accrued vacation pay due to the Executive under the Employing
Companies’ vacation program through his/her Termination Date, which amounts shall be paid to the
Executive not later than the payroll date for the payroll period next following his/her Termination
Date.

(b) Provided that the Executive applies for reimbursement in accordance with the Employing
Companies’ established reimbursement procedures (within the period required by such procedures but
under no circumstances later than thirty (30) days after his/her Termination Date), the Employing
Companies shall pay the Executive any reimbursements to which he/she is entitled under such
procedures not later than the payroll date for the payroll period next following the date on which
the Executive applies for reimbursement.

(c) Any benefits (other than severance) payable to the Executive under any of the Employing
Companies’ incentive compensation or employee benefit plans or programs shall be payable in
accordance with the provisions of those plans or programs.

7. Non-Change of Control Severance Benefit.

(a) Subject to the following provisions of this Section, the Employing Companies shall provide
the Executive with the payments and benefits set forth in this Section, if during the Term and
before the occurrence of a Change of Control, either (i) the Employing Companies Terminate the
Executive’s Employment (other than a termination for Unacceptable Performance, Disability, or death
pursuant to Section 10), or (ii) the Executive voluntarily Terminates his/her Employment for Good
Reason pursuant to Section 11. Notwithstanding the preceding provisions of this Subsection, the
Executive shall not be entitled to benefits pursuant to this Section if he/she is entitled to
benefits pursuant to Section 8. Any amount payable to the Executive pursuant to this Section is in
addition to amounts already owed to the Executive by the Employing Companies and is in
consideration of the covenants set forth in this Agreement and/or the Release.

(b) The Employing Companies shall pay to the Executive a single lump sum payment equal to the
Executive’s Weekly Pay multiplied by fifty two (52) on the 60th day following the
Executive’s Termination of Employment provided that the Executive has executed and submitted a
Release of claims (as described in Section 19) and the statutory period during which the Executive
is entitled to revoke the Release has expired on or before that 60th day.

(c) If COBRA continuation coverage is properly elected under the Employing Companies’ group
medical plan by the Executive (and his/her spouse and dependents, if any, covered by the Employing
Companies’ group medical plan on his/her Termination Date), the Employing Companies shall pay the
cost of such coverage for the Executive (and such spouse and dependents), for twelve (12) months
following his/her Termination of Employment (or such shorter period during which such person is
eligible for COBRA continuation coverage) and, to the extent Section 20(d) is applicable, such
payments or provision of benefits shall be in compliance with Section 20(d) herein. For purposes of
the preceding sentence, the term “COBRA continuation coverage” shall include coverage substantially
similar to the COBRA continuation coverage provided after eighteen (18) months following the
Executive’s Termination Date, provided that the Executive (and his/her spouse and/or dependents, if
applicable) would be eligible for COBRA continuation coverage if the eighteen (18)-month maximum
coverage period had not expired. The Executive acknowledges and agrees that the value of this
coverage will be includible in his/her gross income for tax purposes.

(d) If permissible under the Employing Companies’ group term life insurance plan, whether
through conversion or otherwise, the Employing Companies shall continue to provide term life
insurance coverage substantially the same as that provided for the Executive immediately before
his/her Termination of Employment and shall pay for the cost thereof for twenty-four (24) months
following his/her Termination of Employment.

(e) The Employing Companies shall pay the cost of outplacement services incurred by the
Executive during the twelve (12) month period following his/her Termination of Employment and
provided by a firm of the Executives’ choice, up to a total of Fifteen Thousand Dollars ($15,000).
Reimbursements for outplacement expenses incurred during a calendar year shall be paid not later
than March 15 of the following year.

(f) To the extent that coverage or benefits under Subsection (c), (d), or (e) result in
taxable income to the Executive, the Executive acknowledges and agrees that the Executive is fully
responsible for the tax effect of the provision of such coverage or benefits.

(g) If payments to the Executive pursuant to this Agreement would result in total Parachute
Payments to the Executive, whether or not made pursuant to this Agreement, with a value (as
determined pursuant to Code Section 280G and the guidance thereunder) equal to or greater than one
hundred percent (100%) of the Parachute Payment Limit, the provisions of Section 9 shall apply as
if set out in this Section 7.

(h) Notwithstanding the preceding provisions of this Section, if the Executive is a “specified
employee” within the meaning of Code Section 409A(a)(2)(B)(i), to the extent required by such Code
Section, payments otherwise required by this Section shall be delayed to the earliest date on which
such payments are permitted and shall be paid in a lump sum on the first day following the date
that is six months following the Executive’s Termination of Employment or, if earlier, the
Executive’s death. Furthermore, the obligations of the Employing Companies to make payments to the
Executive hereunder are subject to compliance with any applicable provisions of the Federal Deposit
Insurance Corporation regulations found in Part 359 (entitled “Golden Parachute And Indemnification
Payments”) of Title 12 of the Code of Federal Regulations (or any successor provisions).

8. Change of Control Severance Benefit.

(a) Subject to the following provisions of this Section, the Employing Companies shall provide
the Executive with the payments and benefits set forth in this Section, if during the Term and
concurrent with or within two (2) years after a Change of Control, either (i) the Employing
Companies Terminate the Executive’s Employment (other than a termination for Cause, Disability, or
death pursuant to Section 10), or (ii) the Executive voluntarily Terminates his/her Employment
pursuant to Section 11 for Good Reason.

(b) The Employing Companies shall pay to the Executive a single lump sum payment in an amount
equal to the product of (i) two (2) times (ii) the sum of (A) the Executive’s annual base salary,
at the greater of the rate in effect on the Change of Control Date or the Termination Date, plus
(B) the Executive’s target bonus for the year containing the Change in Control Date or, if greater,
for the year preceding the Change in Control Date, on the 60th day following the
Executive’s Termination of Employment provided that the Executive has executed and submitted a
Release of claims (as described in Section 19) and the statutory period during which the Executive
is entitled to revoke the Release has expired on or before that 60th day.

(c) The Employing Companies shall continue to provide group medical coverage for the Executive
(and his/her spouse and dependents, if any, covered by the Employing Companies’ group medical plan
on his/her Termination Date), for the twenty-four (24) month period following his/her Termination
of Employment. Such coverage shall be under the Employing Companies’ group medical plans and at
the Employing Companies’ expense, shall be the same as that offered to active employees under the
Employing Companies’ group medical plan and, to the extent Section 20(d) is applicable, shall be in
compliance with Section 20(d) herein. If the coverage described in the preceding provisions is not
available under the Employing Companies’ group medical plan, the Employing Companies shall provide
for substantially similar coverage at their expense. The Executive acknowledges and agrees that,
in either case, the value of this coverage will be includible in his/her gross income for tax
purposes. Coverage provided pursuant to this Subsection shall be concurrent with any required
continuation coverage period under COBRA.

(d) For the twenty-four (24) month period following the Executive’s Termination of Employment,
the Employing Companies shall continue to provide term life insurance coverage substantially the
same as that provided for the Executive immediately before his/her Termination Date.

(e) The Employing Companies shall pay the cost of outplacement services incurred by the
Executive during the twelve (12) month period following his/her Termination of Employment and
provided by a firm of the Executives’ choice, up to a total of Fifteen Thousand Dollars ($15,000).
Reimbursements for outplacement expenses incurred during a calendar year shall be paid not later
than March 15 of the following year.

(f) To the extent that coverage or benefits under Subsection (c), (d), or (e) results in
taxable income to the Executive, the Executive acknowledges and agrees that the Executive is fully
responsible for the tax effect of the provision of such coverage or benefits.

(g) All outstanding Company stock options, to the extent not previously vested and
exercisable, shall become vested and exercisable upon the Executive’s Termination of Employment.

(h) If payments to the Executive pursuant to this Agreement would result in total Parachute
Payments to the Executive, whether or not made pursuant to this Agreement, with a value (as
determined pursuant to Code Section 280G and the guidance thereunder) equal to or greater than one
hundred percent (100%) of the Parachute Payment Limit, the provisions of Section 9 shall apply as
if set out in this Section 8.

(i) Notwithstanding the preceding provisions of this Section, if the Executive is a “specified
employee” within the meaning of Code Section 409A(a)(2)(B)(i), to the extent required by such Code
Section, payments otherwise required by this Section shall be delayed to the earliest date on which
such payments are permitted and shall be paid in a lump sum on the first day following the date
that is six months following the Executive’s Termination of Employment or, if earlier, the
Executive’s death. Furthermore, the obligations of the Employing Companies to make payments to the
Executive hereunder are subject to compliance with any applicable provisions of the Federal Deposit
Insurance Corporation regulations found in Part 359 (entitled “Golden Parachute And Indemnification
Payments”) of Title 12 of the Code of Federal Regulations (or any successor provisions).

9. Provisions Relating to Parachute Payments.

(a) If payments and benefits to or for the benefit of the Executive, whether pursuant to this
Agreement or otherwise, would result in total Parachute Payments to the Executive with a value
equal to or greater than one hundred percent (100%) of the Parachute Payment Limit, the amount
payable to the Executive, shall be reduced so that the value of all Parachute Payments to the
Executive, whether or not made pursuant to this Agreement, is equal to the Parachute Payment Limit
minus One Dollar ($1.00), accomplished by first reducing any amounts payable pursuant to Subsection
7(b) or 8(b), as applicable, and then reducing other amounts of compensation to the extent
necessary; provided that, no such reduction shall be taken if, after reduction for any
applicable federal excise tax imposed on the Executive by Code Section 4999, as well as any
federal, state and local income tax imposed on the Executive with respect to the total Parachute
Payments, the total Parachute Payments accruing to the Executive would be more than the amount of
the total Parachute Payments after (a) taking the reduction described in the first clause of this
sentence, and (b) further reducing such payments by any federal, state and local income taxes
imposed on the Executive with respect to the total Parachute Payments.  The Company agrees to
undertake such reasonable efforts as it may determine in its sole discretion to prevent any payment
or benefit under this Agreement (or any portion thereof) from constituting an Excess Parachute
Payment.

(b) The amount of Parachute Payments and the Parachute Payment Limit shall be determined as
provided in this Subsection (b). The Company shall direct its independent auditor (“Auditor”) or
such other accounting firm experienced in such calculations and acceptable to the Executive to
determine whether any Parachute Payments exceed the Parachute Payment Limit and the amount of any
adjustment required by Subsection (a). The Company shall promptly give the Executive notice of the
Auditor’s determination. All reasonable determinations made by the Auditor under this Subsection
shall be binding on the Employing Companies and the Executive and shall be made within thirty (30)
days after the Executive’s Termination of Employment.

10. Termination of Employment by the Company for Cause, Unacceptable Performance,
Disability, or Death.

(a) The Company may cause a Termination of the Executive’s Employment for Unacceptable
Performance or Disability at any time before a Change in Control. To do so, the Board must provide
the Executive with a notice of termination specifying the Termination Date and either the specific
act(s) or failure(s) constituting Unacceptable Performance or the circumstances constituting
Disability. If the Board’s notice identifies an act or failure constituting Unacceptable
Performance that is subject to correction under the definition of Unacceptable Performance and
related definitions in this Agreement, the notice shall also specify the period during which the
act or failure must be corrected. If the Board determines that the Executive has not corrected the
act or failure in all material respects within the required correction period, the Board must then
provide a second notice of termination stating the reasons for the termination and the Termination
Date, and the Executive’s Employment shall Terminate on such date.

(b) The Company may cause a Termination of the Executive’s Employment for Cause or Disability
at any time concurrent with or after a Change in Control. To do so, the Board must provide the
Executive with a notice of termination specifying the Termination Date and either the specific
act(s) or failure(s) constituting Cause or the circumstances constituting Disability. If the
Board’s notice identifies an act or failure constituting Cause, it shall be accompanied by a
resolution duly adopted by not less than three-quarters (3/4) of the entire membership of the Board
(after reasonable notice to the Executive and an opportunity for the Executive, together with
his/her counsel, to be heard by the Board), finding, in the reasonable opinion of the Board, that
one or more of the events of Cause listed above has occurred and specifying the details thereof.
If the act or failure constituting Cause is subject to correction under the definition of Cause and
related definitions in this Agreement, the notice shall also specify the period during which the
act or failure must be corrected. If the Board determines that the Executive has not corrected the
act or failure in all material respects within the required correction period, the Board must then
provide a second notice of termination stating the reasons for the termination and the Termination
Date, and the Executive’s Employment shall Terminate on such date.

(c) If the Executive dies before his/her Termination of Employment, his/her employment shall
terminate automatically on the date of his/her death.

(d) In the case of a Termination of Employment pursuant to this Section, the Executive shall
not be entitled to benefits or payments pursuant to Section 7 or 8.

11. Resignation by Executive for Good Reason. If an event of Good Reason occurs
during the Term, the Executive may, at any time within the ninety (90) day period following such
event, provide the Company with a notice of termination specifying the event of Good Reason and
notifying the Company of his/her intention to Terminate his/her Employment upon the Employing
Companies’ failure to correct the event of Good Reason within thirty (30) days following receipt of
the Executive’s notice of termination. If the Employing Companies fail to correct the event of
Good Reason and provide the Executive with notice of such correction within such thirty (30) day
period, the Executive’s Employment shall Terminate as of the end of such period, and the Executive
shall be entitled to benefits as provided in Section 6 and Section 7 or 8, as applicable.

12. Withholding and Taxes. The Employing Companies may withhold from any payment made
hereunder (i) any taxes that the Employing Companies reasonably determine are required to be
withheld under federal, state, or local tax laws or regulations, and (ii) any other amounts that
the Employing Companies are authorized to withhold. Except for employment taxes that are the
obligation of the Employing Companies, the Executive shall pay all federal, state, local, and other
taxes (including, without limitation, interest, fines, and penalties) imposed on him under
applicable law by virtue of or relating to the payments and/or benefits contemplated by this
Agreement, subject to any reimbursement provisions of this Agreement.

13. Use and Disclosure of Confidential Information.

(a) The Executive acknowledges and agrees that (i) by virtue of his/her employment, he/she
will be given access to, and will help analyze, formulate or otherwise use, Confidential
Information, (ii) the Employer has devoted (and will devote) substantial time, money, and effort to
develop Confidential Information and maintain the proprietary and confidential nature thereof, and
(iii) Confidential Information is proprietary and confidential and, if any Confidential Information
were disclosed or became known by persons engaging in a business in any way competitive with the
Company’s Business, such disclosure would result in hardship, loss, irreparable injury, and damage
to the Employer, the measurement of which would be difficult, if not impossible, to determine.
Accordingly, the Executive agrees that (i) the preservation and protection of Confidential
Information is an essential part of his/her duties of employment and that, as a result of his/her
employment with the Employing Companies, he/she has a duty of fidelity, loyalty, and trust to the
Employing Companies in safeguarding Confidential Information. The Executive further agrees that
he/she will use his/her best efforts, exercise utmost diligence, and take all steps necessary to
protect and safeguard Confidential Information, whether such information derives from the
Executive, other employees of the Employer, Customers, Prospective Customers, or vendors or
suppliers of the Employer, and that he/she will not, directly or indirectly, use, disclose,
distribute, or disseminate to any other person or entity or otherwise employ Confidential
Information, either for his/her own benefit or for the benefit of another, except as required in
the ordinary course of his/her employment by the Employing Companies. The Executive shall follow
all Employing Company policies and procedures to protect all Confidential Information and shall
take any additional precautions necessary under the circumstances to preserve and protect against
the prohibited use or disclosure of any Confidential Information.

(b) The confidentiality obligations contained in this Agreement shall continue as long as
Confidential Information remains confidential (except that the obligations shall continue, if
Confidential Information loses its confidential nature through improper use or disclosure,
including but not limited to any breach of this Agreement) and shall survive the termination of
this Agreement and/or termination of the Executive’s employment with the Employing Companies.

(c) From time to time, the Employer may, for its own benefit, choose to place certain
Confidential Information in the public domain. The fact that Confidential Information may be made
available to the public in a limited form and under limited circumstances does not change the
confidential and proprietary nature of such information, and does not release the Executive from
his/her obligations with respect to such Confidential Information.

14. Ownership of Documents and Return of Materials At Termination of Employment.

(a) Any and all documents, records, and copies thereof, including but not limited to hard
copies or copies stored digitally or electronically, pertaining to or including Confidential
Information (collectively, “Company Documents”) that are made or received by the Executive during
his/her employment shall be deemed to be property of the Employer. The Executive shall use Company
Documents and information contained therein only in the course of his/her employment for the
Employing Companies and for no other purpose. The Executive shall not use or disclose any Company
Documents to anyone except as authorized in the course of his/her employment and in furtherance of
the Company’s Business.

(b) Upon Termination of Employment, the Executive shall immediately deliver to the Employing
Companies (with or without request) all Company Documents and all other Employer property in the
Executive’s possession or under his/her custody or control.

15. Non-Solicitation of Customers and Employees. The Executive agrees that during the
Term and for a period of two (2) years following the Termination of the Executive’s Employment, the
Executive shall not, directly or indirectly, individually or jointly, (i) solicit in any manner,
seek to obtain or service, or accept the business of any Customer for any product or service of the
type offered by the Employer or competitive with the Company’s Business, (ii) solicit in any
manner, seek to obtain or service, or accept the business of any Prospective Customer for any
product or service of the type offered by the Employer or otherwise competitive with the Company’s
Business, (iii) request or advise any Customer, Prospective Customer, or supplier of the Employer
to terminate, reduce, limit, or change its business or relationship with the Employer, or (iv)
induce, request, or attempt to influence any employee of the Employer to terminate his/her
employment with the Employer.

16. Covenant Not to Compete. The Executive hereby understands and acknowledges that,
by virtue of his/her position with the Employing Companies, he/she has obtained advantageous
familiarity and personal contacts with Customers and Prospective Customers, wherever located, and
the business, operations, and affairs of the Employer. Accordingly, during the term of this
Agreement and for a period of two (2) years following the termination of his/her employment, the
Executive shall not, directly or indirectly:

(a) as owner, officer, director, stockholder, investor, proprietor, organizer, employee,
agent, representative, consultant, independent contractor, or otherwise, engage in the same trade
or business as the Company’s Business, in the same or similar capacity as the Executive worked for
the Employing Companies, or in such capacity as would cause the actual or threatened use of the
Employer’s trade secrets and/or Confidential Information; provided, however, that this Subsection
shall not restrict the Executive from acquiring, as a passive investment, less than five percent
(5%) of the outstanding securities of any class of an entity that are listed on a national
securities exchange or actively traded in the over-the-counter market. The Executive acknowledges
and agrees that, given the level of trust and responsibility given to him while in the Employing
Companies’ employ, and the level and depth of trade secrets and Confidential Information entrusted
to him, any immediately subsequent (i.e. within two (2) years) employment with a competitor to the
Company’s Business would result in the inevitable use or disclosure of the Employer’s trade secrets
and Confidential Information and, therefore, this two (2) year restriction is reasonable and
necessary to protect against such inevitable disclosure; or

(b) offer to provide employment or work of any kind (whether such employment is with the
Executive or any other business or enterprise), either on a full-time or part-time or consulting
basis, to any person who then currently is, or who within two (2) years preceding such offer or
provision of employment has been, an employee of the Employer.

The restrictions on the activities of the Executive contained in this Section shall be limited to
the following geographical areas:

(c) within a fifteen (15) mile radius of each banking center location operated by the Employer
on the Executive’s Termination Date;

(d) within each county in which a banking center location is operated by the Employer on the
Executive’s Termination Date;

(e) within a fifty (50) mile radius of Company’s corporate headquarters address in Evansville,
Indiana;

(f) within each city, town, and county in which the Employer began expansion or acquisition
planning or efforts during the Executive’s employment with the Employing Companies, and about which
Executive gained knowledge of Confidential Information or bore responsibility for expanding the
Company’s Business;

17. Remedies. The Executive agrees that the Company will suffer irreparable damage
and injury and will not have an adequate remedy at law if the Executive breaches any provision of
the Restrictive Covenants. Accordingly, if the Executive breaches or threatens or attempts to
breach the Restrictive Covenants, in addition to all other available remedies, the Company shall be
entitled to seek injunctive relief, and no or minimal bond or other security shall be required in
connection therewith. The Executive acknowledges and agrees that in the event of termination of
this Agreement for any reason whatsoever, the Executive can obtain employment not competitive with
the Company’s Business (or, if competitive, outside of the geographic and customer-specific scope
described herein) and that the issuance of an injunction to enforce the provisions of the
Restrictive Covenants shall not prevent the Executive from earning a livelihood. The Restrictive
Covenants are essential terms and conditions to the Company entering into this Agreement, and they
shall be construed as independent of any other provision in this Agreement or of any other
agreement between the Executive and the Company. The existence of any claim or cause of action
that the Executive has against the Company, whether predicated on this Agreement or otherwise,
shall not constitute a defense to the enforcement by the Company of the Restrictive Covenants.

18. Periods of Noncompliance and Reasonableness of Periods. The Restrictive Covenants
described in Sections 15 and 16 shall be deemed not to run during all periods of noncompliance, the
intention of the parties being to have such restrictions and covenants apply for the full periods
specified in Sections 15 and 16 following Termination of the Executive’s Employment. The Company
and the Executive acknowledge and agree that the restrictions and covenants contained in Sections
15 and 16 are reasonable in view of the nature of the Company’s Business and the Executive’s
advantageous knowledge of and familiarity with the Company’s Business, operations, affairs, and
Customers. Notwithstanding anything contained herein to the contrary, if the scope of any
restriction or covenant contained in Sections 15 and 16 is found by a court of competent
jurisdiction to be too broad to permit enforcement of such restriction or covenant to its full
extent, then such restriction or covenant shall be enforced to the maximum extent permitted by law.
The parties hereby acknowledge and agree that a court of competent jurisdiction shall invoke and
exercise the blue pencil doctrine to the fullest extent permitted by law to enforce this Agreement.

19. Release. For and in consideration of the foregoing covenants and promises made by
the Company, and the performance of such covenants and promises, the sufficiency of which is hereby
acknowledged, the Executive agrees to release the Employer and all other persons named in the
Release from any and all causes of action that the Executive has or may have against the Employer
or any such person before the effective date of the Release, other than a breach of this Agreement.
The Release shall be substantially in the form attached hereto as Exhibit I. The Company shall
provide the Release to the Executive as soon as practicable upon his/her Termination of Employment.
THE EXECUTIVE’S RIGHT TO BENEFITS HEREUNDER SHALL BE CONTINGENT ON HIS SIGNING, FILING AND NOT
REVOKING THE RELEASE AS PROVIDED IN THE RELEASE WITHIN THE PERIODS REQUIRED BY LAW.

20. Reimbursement of Certain Costs.

(a) If, during the life of the Executive and for a five (5) year period following his/her
death, the Company brings a cause of action to enforce the Restrictive Covenants or to recover
damages caused by the Executive’s breach of the Restrictive Covenants, the substantially prevailing
party in such action shall be entitled to reasonable costs and expenses (including, without
limitation, reasonable attorneys’ fees, expert witness fees, and disbursements) in connection with
such action.

(b) If, during the life of the Executive and for a five (5) year period following his/her
death, a dispute arises regarding the Executive’s rights hereunder, and the Executive obtains a
final judgment in his/her favor from a court of competent jurisdiction with respect to such
dispute, all reasonable costs and expenses (including, without limitation, reasonable attorneys’
fees, expert witness fees, and disbursements) incurred by the Executive in connection with such
dispute or in otherwise pursuing a claim based on a breach of this Agreement, shall be paid by the
Company.

(c) Any reimbursement by the Company pursuant to this Section shall be subject to compliance
with applicable provisions of the Federal Deposit Insurance Corporation regulations found in Part
359 (entitled “Golden Parachute and Indemnification Payments”) of Title 12 of the Code of Federal
Regulations (or any successor provisions).

(d) Notwithstanding anything to the contrary in the foregoing, any reimbursements or in-kind
benefits provided under this Agreement that are subject to Code Section 409A shall be made in
compliance with Treasury Regulation Section 1.409A-3(i)(1)(iv) and any reimbursements shall be made
no later than the end of the Executive’s taxable year following the Executive’s taxable year in
which the expense was incurred. In addition, the amounts eligible for reimbursement, or in-kind
benefits to be provided, during any one taxable year under this Agreement may not affect the
expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year
under this Agreement and any right to reimbursement or in-kind benefits is not subject to
liquidation or exchange for another benefit.

21. No Reliance. The Executive represents and acknowledges that in executing this
Agreement, the Executive does not rely and has not relied upon any representation or statement by
the Company and its agents, other than statements contained in this Agreement.

22. Miscellaneous Provisions.

(a) Further Assurances. Each of the parties hereto shall do, execute, acknowledge,
and deliver or cause to be done, executed, acknowledged, and delivered at any time and from time to
time upon the request of any other party hereto, all such further acts, documents, and instruments
as may be reasonably required to effect any of the transactions contemplated by this Agreement.

(b) Binding Effect; Assignment. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns; provided, however, that
neither party hereto may assign this Agreement without the prior written consent of the other
party. Notwithstanding the foregoing, this Agreement may be assigned without the prior consent of
the Executive to a successor of the Company (and the Executive hereby consents to the assignment of
the Restrictive Covenants under this Agreement to a purchaser of all or substantially all of the
assets of the Company or a transferee, by merger or otherwise, of all or substantially all of the
businesses and assets of the Company) and, upon the Executive’s death, this Agreement shall inure
to the benefit of and be enforceable by the Executive’s executors, administrators, representatives,
heirs, distributees, devisees, and legatees and all amounts payable hereunder shall be paid to such
persons or the estate of the Executive.

(c) Waiver; Amendment. No provision or obligation of this Agreement may be waived or
discharged unless such waiver or discharge is agreed to in writing and signed by the Chairman of
the Board of Directors and the Executive. The waiver by any party hereto of a breach of or
noncompliance with any provision of this Agreement shall not operate or be construed as a
continuing waiver or a waiver of any other or later breach or noncompliance. Except as expressly
provided otherwise herein, this Agreement may be amended or supplemented only by a written
agreement executed by the Chairman of the Board of Directors and the Executive.

(d) Headings. The headings in this Agreement have been inserted solely for ease of
reference and shall not be considered in the interpretation or enforcement of this Agreement.

(e) Severability. All provisions of this Agreement are severable from one another,
and the unenforceability or invalidity of any provision hereof shall not affect the validity or
enforceability of the remaining provisions.

(f) Notice. Any notice, request, instruction, or other document to be given hereunder
to any party shall be in writing and delivered by hand, registered or certified United States mail,
return receipt requested, or other form of receipted delivery, with all expenses of delivery
prepaid, as follows:

	 	 	 
	If to the Executive:
	 	If to the Company:

	     

     

     
	 	Old National Bancorp

Post Office Box 718

Evansville, IN 47705

ATTENTION: General Counsel

or to such other address as either party hereto may have furnished to the other in writing in
accordance with the preceding.

(g) No Counterparts. This Agreement may not be executed in counterparts.

(h) Governing Law; Jurisdiction; Venue; Waiver of Jury Trial. This Agreement shall be
governed by and construed in accordance with the laws of the State of Indiana, without reference to
the choice of law principles or rules thereof. The parties hereto irrevocably consent to the
jurisdiction and venue of the state courts for the State of Indiana located in Evansville, Indiana,
or the United States District Court for the Southern District of Indiana, Evansville Division,
located in Vanderburgh County, Indiana, and agree that all actions, proceedings, litigation,
disputes, or claims relating to or arising out of this Agreement shall be brought and tried only in
such courts. The Company, in its sole discretion, may, however, bring an action against the
Executive in any court where jurisdiction over the Executive may be obtained. EACH OF THE PARTIES
EXPRESSLY WAIVES ANY RIGHTS TO A JURY TRIAL THAT IT MAY OTHERWISE HAVE IN ANY COURT WITH RESPECT TO
THIS AGREEMENT TO THE MAXIMUM EXTENT PERMITTED BY LAW.

(i) Entire Agreement. This Agreement constitutes the entire and sole agreement
between the Employer and the Executive with respect to the Executive’s employment or the
termination thereof, and there are no other agreements or understandings either written or oral
with respect thereto. The parties agree that any and all prior severance and/or change of control
agreements between the parties have been terminated and are of no further force or effect.

(j) Rules of Interpretation. In interpreting this Agreement, the following rules
shall apply:

(1) The rule of construction to the effect that any ambiguities are to be resolved
against the drafting party shall not be employed in the interpretation of this Agreement.

(2) Words used in the singular shall be construed to include the plural, where
appropriate, and vice versa, and words used in the masculine shall be construed to include
the feminine, where appropriate, and vice versa.

(3) It is the intention and purpose of the Company, Employing Company, Employer and
the Executive that this Agreement shall be, at all relevant times, in compliance with (or
exempt from) Code Section 409A and all other applicable laws, and this Agreement shall be so
interpreted and administered.  In addition to the general amendment rights of the Company,
Employing Company and Employer with respect to the Agreement, the Company, Employing
Company, and Employer specifically retain the unilateral right (but not the obligation) to
make, prospectively or retroactively, any amendment to this Agreement or any related
document as they deem necessary or desirable to more fully address issues in connection with
compliance with (or exemption from) Code Section 409A and such other laws.  In no event,
however, shall this section or any other provisions of this Agreement be construed to
require the Company, Employing Company or Employer to provide any gross-up for the tax
consequences of any provisions of, or payments under, this Agreement and the Company,
Employing Company and Employer shall have no responsibility for tax or legal consequences to
the Executive (or his beneficiary) resulting from the terms or operation of this Agreement.
Also, in accordance with Code Section 409A, if the Executive is entitled to a distribution
within a period following an event as permitted by Code Section 409A, the Executive will
have no right to designate the taxable year of payment.

(4) Except as provided in the preceding provisions of this Subsection, this Agreement
shall be construed in accordance with the internal laws of the State of Indiana, without
regard to conflict of law principles.

23. Review and Consultation. The Company and the Executive hereby acknowledge and
agree that each (i) has read this Agreement in its entirety prior to executing it, (ii) understands
the provisions and effects of this Agreement, (iii) has consulted with such attorneys, accountants,
and financial and other advisors as it or he/she has deemed appropriate in connection with their
respective execution of this Agreement, and (iv) has executed this Agreement voluntarily. THE
EXECUTIVE HEREBY UNDERSTANDS, ACKNOWLEDGES, AND AGREES THAT THIS AGREEMENT HAS BEEN PREPARED BY
COUNSEL FOR THE COMPANY AND THAT THE EXECUTIVE HAS NOT RECEIVED ANY ADVICE, COUNSEL, OR
RECOMMENDATION WITH RESPECT TO THIS AGREEMENT FROM THE COMPANY OR ITS COUNSEL.

OLD NATIONAL BANCORP

	 	 	 	 	 
	 	 	By:
	 	

	 
	 	 	 	 

	       (“Executive”)
	 	 	 	Larry E. Dunigan, Chairman of the

Board of Directors

	 
	 	 	 	 

	Date
	 	 	 	Date

1

APPENDIX A

DEFINED TERMS

For purposes of this Agreement, the following terms shall have the meanings specified below:

“Bank” means Old National Bank, the Company’s principal subsidiary, and any successor to all
or substantially all of its business.

“Board” or “Board of Directors” means the Company’s Board of Directors or the committee of the
Board authorized to act of the Board’s behalf.

“Cause” means any of the following:

(1) the Executive’s act or failure to act constituting willful misconduct or gross
negligence that is materially injurious to the Employer or its reputation;

(2) the Executive’s willful and material failure to perform the duties of his/her
employment (except in the case of a Termination of Employment for Good Reason or on account
of the Executive’s physical or mental inability to perform such duties) and the failure to
correct such failure within five (5) days after receiving notice from the Board of Directors
specifying such failure in detail;

(3) the Executive’s willful and material violation of the Employing Companies’ code of
ethics or written harassment policies;

(4) the requirement or direction of a federal or state regulatory agency having
jurisdiction over the Company that the Executive’s employment be terminated;

(5) the Executive’s arrest or indictment for (i) a felony or (ii) a lesser criminal
offense involving dishonesty, breach of trust, or moral turpitude; or

(6) the Executive’s intentional breach of a material term, condition, or covenant of
this Agreement and the failure to correct such violation within five (5) days after receipt
of written notice from the Board of Directors specifying such breach in detail.

For purposes of this definition, no act or failure to act shall be considered “willful,” if the
Executive acted or failed to act either (i) in good faith or (ii) with a reasonable belief that
his/her act or failure to act was not opposed to the Employer’s best interests.

“Change in Control” means the first occurrence of any of the following events:

(1) the acquisition by any person (within the meaning of Section 13(d) of the
Securities Exchange Act of 1934 (“Act”)), other than the Company, a subsidiary, and any
employee benefit plan of the Company or a subsidiary, of twenty-five percent 25%) or more of
the combined voting power entitled to vote generally in the election of the directors of the
Company’s then outstanding voting securities;

(2) the persons who were serving as the members of the Board of Directors immediately
prior to the commencement of a proxy contest relating to the election of directors or a
tender or exchange offer for voting securities of the Company (“Incumbent Directors”) shall
cease to constitute at least a majority of the Board of Directors (or the board of directors
of any successor to the Company) at any time within one year of the election of directors as
a result of such contest or the purchase or exchange of voting securities of the Company
pursuant to such offer, provided that any director elected to the Board of Directors, or
nominated for election, by a majority of the Incumbent Directors then still in office and
whose nomination or election was not made at the request or direction of the person(s)
initiating such contest or making such offer shall be deemed to be an Incumbent Director for
purposes of this subsection (2);

(3) consummation of a merger, reorganization, or consolidation of the Company, as a
result of which persons who were shareholders of the Company immediately prior to such
merger, reorganization, or consolidation do not, immediately thereafter, own, directly or
indirectly and in substantially the same proportions as their ownership of the stock of the
Company immediately prior to the merger, reorganization, or consolidation, more than fifty
percent (50%) of the combined voting power entitled to vote generally in the election of
directors of (i) the merged, reorganized, or consolidated company or (ii) an entity that,
directly or indirectly, owns more than fifty percent (50%) of the combined voting power
entitled to vote generally in the election of directors of the company described in clause
(i);

(4) a sale, transfer, or other disposition of all or substantially all of the assets of
the Company, which is consummated and immediately following which the persons who were
shareholders of the Company immediately prior to such sale, transfer, or disposition, do not
own, directly or indirectly and in substantially the same proportions as their ownership of
the stock of the Company immediately prior to the sale, transfer, or disposition, more than
fifty percent (50%) of the combined voting power entitled to vote generally in the election
of directors of (i) the entity or entities to which such assets are sold or transferred or
(ii) an entity that, directly or indirectly, owns more than fifty percent (50%) of the
combined voting power entitled to vote generally in the election of directors of the
entities described in clause (i); or

(5) the shareholders of the Company approve a liquidation of the Company.

“Change of Control Date” means the date on which a Change of Control occurs.

“COBRA” refers to the group health plan continuation requirements in Sections 601 through 607
of the Employee Retirement Income Security Act of 1974, as amended.

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules
and regulations promulgated thereunder.

“Company” means Old National Bancorp and any successor to all or substantially all of its
business.

“Company’s Business” means, collectively, the products and services provided by the Employer,
including the following:

(1) community banking, including lending activities (including individual loans
consisting primarily of home equity lines of credit, residential real estate loans, and/or
consumer loans, and commercial loans, including lines of credit, real estate loans, letters
of credit, and lease financing) and depository activities (including noninterest-bearing
demand, NOW, savings and money market, and time deposits), debit and ATM cards, merchant
cash management, internet banking, and other general banking services;

(2) investment and brokerage services, including a full array of investment options and
investment advice;

(3) treasury segment, including investment management, wholesale funding, interest rate
risk, liquidity and leverage management, capital markets products (including interest rate
derivatives, foreign exchange, and industrial revenue bond financing);

(4) wealth management, including fiduciary and trust services, fee-based asset
management, and mutual fund management; and

(5) insurance agency services, including full-service insurance brokerage services,
such as commercial property and casualty, surety, loss control services, employee benefits
consulting and administration, and personal insurance.

“Compensation” means, as of the Termination Date, the Executive’s annual base salary then in
effect, plus the targeted cash incentive that the Executive would have been eligible to receive in
the year in which the Termination Date occurs (regardless of whether the cash incentive plan is
then in effect). For purposes of the preceding sentence, any reduction in the Executive’s annual
base salary or targeted cash incentive that is an event of Good Reason shall be disregarded.

“Confidential Information” means the following:

(1) materials, records, documents, data, statistics, studies, plans, writings, and
information (whether in handwritten, printed, digital, or electronic form) relating to the
Company’s Business that are not generally known or available to the Company’s business,
trade, or industry or to individuals who work therein other than through a breach of this
Agreement, or

(2) trade secrets of the Employer (as defined in Indiana Code §24-2-3-2, as amended, or
any successor statute).

Confidential Information includes, but is not limited to: (i) information about the Employer’s
employees; (ii) information about the Employer’s compensation policies, structure, and
implementation; (iii) hardware, software, and computer programs and technology used by Employer;
(iv) Customer and Prospective Customer identities, lists, and databases, including private
information related to customer history, loan activity, account balances, and financial
information; (v) strategic, operating, and marketing plans; (vi) lists and databases and other
information related to the Employer’s vendors; (vii) policies, procedures, practices, and plans
related to pricing of products and services; and (viii) information related to the Employer’s
acquisition and divestiture strategy. Information or documents that are generally available or
accessible to the public shall be deemed Confidential Information, if the information is retrieved,
gathered, assembled, or maintained by the Employer in a manner not available to the public or for a
purpose beneficial to the Employer.

“Customer” means a person or entity who is a customer of the Employer at the time of the
Executive’s Termination of Employment or with whom the Executive had direct contact on behalf of
the Employing Companies at any time during the period of the Executive’s employment with the
Employing Companies.

“Disability” means that the Executive is disabled within the meaning of the long-term
disability policy of the Employing Companies, as in effect on the earlier of the Termination Date
or the Change of Control Date. Termination of the Executive’s Employment on account of Disability
shall not affect his/her eligibility for benefits under any disability policy or program of the
Employer.

“Employer” means the Company and any other employer that is treated as a single employer with
the Company pursuant to Code Section 414(b), (c), or (m).

“Employing Company” means the Company or the Bank.

“Excess Parachute Payment” has the meaning given to such term in Code Section 280G(b)(1).

“Good Reason” means, for purposes of Section 7, any of the following without the express
written consent of the Executive:

(1) a material reduction in the Executive’s duties, responsibilities, or status with
the Employing Companies;

(2) a reduction in the Executive’s base compensation or failure to include the
Executive with other similarly situated employees in any incentive, bonus, or benefit plans
as may be offered by the Employing Companies from time to time;

(3) a change in the primary location at which the Executive is required perform the
duties of his/her employment to a location that is more than fifty (50) miles from the
location at which his/her office is located on the effective date of this Agreement; or

(4) the Company’s material breach of this Agreement.

“Good Reason” means, for purposes of Section 8, any of the following, without the express
written consent of the Executive, during the two (2) year period beginning on the Change of Control
Date:

(1) assignment to the Executive of any duties materially inconsistent with his/her
positions, duties, responsibilities, or status with the Employing Companies immediately
before the Change of Control Date;

(2) a substantial reduction of the Executive’s duties or responsibilities, or any
removal of the Executive from, or any failure to re-elect the Executive to, any positions
held by the Executive immediately before the Change in Control Date;

(3) a reduction by the Employing Companies in the compensation or benefits of the
Executive in effect immediately before the Change in Control Date, or any failure to include
the Executive, at a level equal to or better than any other senior executive of an Employing
Company, in any incentive, bonus, or benefit plan covering one or more senior executives of
the Employing Companies;

(4) a reduction in the Executive’s total compensation opportunity;

(5) a change in the primary location at which the Executive is required perform the
duties of his/her employment to a location that is more than fifty (50) miles from the
location at which his/her office is located immediately before the Change of Control Date
(disregarding any change in location in anticipation of the Change of Control); or

(6) the Company’s material breach of this Agreement.

“Parachute Payment” has the meaning give to such term in Code Section 280G(b)(2)(a)(i).

“Parachute Payment Limit” means three (3) times the base amount, as defined by Code Section
280G(b)(3).

“Prospective Customer” means a person or entity who was the direct target of sales or
marketing activity by the Executive or whom the Executive knew was a target of the Employer’s sales
or marketing activities during the one year period preceding the Executive’s Termination of
Employment.

“Release” means the release referred to in Section 19.

“Restrictive Covenants” means the restrictions contained in Sections 13, 14, 15, and 16.

“Term” means the term of this Agreement, including any extensions thereof, as determined
pursuant to Section 2.

“Termination Date” means the date of the Executive’s Termination of Employment.

“Termination of Employment,” and capitalized forms and derivations thereof, means the
Executive’s “separation from service” within the meaning of Code Section 409A.

“Unacceptable Performance” means any of the following:

(1) the Executive’s act or failure to act constituting willful misconduct or gross
negligence that is materially injurious to the Employer or its reputation;

(2) the Executive’s material failure to perform the duties of his/her employment
(except in the case of a Termination of Employment for Good Reason or on account of the
Executive’s physical or mental inability to perform such duties) and the failure to correct
such failure within a reasonable period after receiving written notice from the Board of
Directors describing such failure in detail;

(3) the Executive’s violation of any code of ethics or business conduct or written
harassment policies of the Employing Companies that continues after the Board has provided
notice to the Executive that the continuation of such conduct will result in Termination of
the Executive’s Employment;

(4) the requirement or direction of a federal or state regulatory agency having
jurisdiction over the Company that the Executive be removed from his/her position or the
institution by such an agency of a formal enforcement proceeding against the Company or the
Executive specifically naming the Executive as a person with substantial involvement in the
acts (or omissions) that are the subject of such proceeding, and seeking that the Executive
cease and desist from such acts (or omissions) in connection with his/her duties or seeking
civil money penalties as a result of his/her past acts (or omissions);

(5) the Executive’s arrest or indictment for (i) a felony or (ii) a lesser criminal
offense involving dishonesty, breach of trust, or moral turpitude; or

(6) the Executive’s breach of a material term, condition, or covenant of this Agreement
and the failure to correct such breach promptly following receipt of written notice from the
Board of Directors describing such breach in detail.

“Weekly Pay” means the Executive’s Compensation divided by fifty-two (52).

EXHIBIT I

RELEASE OF ALL CLAIMS

FOR VALUABLE CONSIDERATION, including the payment to the Executive of certain severance
benefits, the Executive hereby makes this Release of All Claims (“Release”) in favor of Old
National Bancorp (including all subsidiaries and affiliates) (“Company”) and its agents as set
forth herein.

1. The Executive releases, waives and discharges the Company and its agents (as defined below)
from all claims, whether known or unknown, arising out of the Executive’s employment relationship
with the Company, the termination of that relationship, and all other events, incidents, or actions
occurring before the date on which this Release is signed; provided, however, this Release shall
not apply to any claim based on the Company’s breach of Section 6 of the Employment Agreement.
Claims released herein include, but are not limited to, discrimination claims based on age, race,
sex, religion, national origin, disability, veteran status, or any other employment claim,
including claims arising under The Civil Rights Act of 1866, 42 U.S.C. § 1981; Title VII of the
Civil Rights Act of 1964; the Americans with Disabilities Act; the Age Discrimination in Employment
Act of 1967; the Federal Rehabilitation Act of 1973; the Older Workers’ Benefits Protection Act;
the Employee Retirement Income Security Act of 1974; the Fair Labor Standards Act; the Family and
Medical Leave Act (to the extent that FMLA claims may be released under governing law), the Indiana
Civil Rights Act, the Indiana Wage Payment and Wage Claims Acts, any Federal or State wage and hour
laws and all other similar Federal or State statutes; and any and all tort or contract claims,
including, but not limited to, breach of contract, breach of good faith and fair dealing,
infliction of emotional distress, defamation, or wrongful termination or discharge.

2. The Executive further acknowledges that the Company has advised the Executive to consult
with an attorney of the Executive’s own choosing and that the Executive has had ample time and
adequate opportunity to thoroughly discuss all aspects of this Release with legal counsel prior to
executing this Release.

3. The Executive agrees that the Executive is signing this Release of his/her own free will
and is not signing under duress.

4. In the event the Executive is forty (40) years of age or older, the Executive acknowledges
that the Executive has been given a period of twenty-one (21) days to review and consider a draft
of this Release in substantially the form of the copy now being executed and has carefully
considered the terms of this Release. The Executive understands that the Executive may use as much
or all of the twenty-one (21) day period as the Executive wishes prior to signing, and the
Executive has done so.

5. In the event the Executive is forty (40) years of age or older, the Executive has been
advised and understands that the Executive may revoke this Release within seven (7) days after
acceptance. ANY REVOCATION MUST BE IN WRITING AND HAND-DELIVERED TO:

Old National Bancorp

Attn: General Counsel

One Main Street

Evansville, IN 47708

NO LATER THAN BY CLOSE OF BUSINESS ON THE SEVENTH (7TH) DAY FOLLOWING THE DATE OF
EXECUTION OF THIS RELEASE.

6. The “Company and its agents,” as used in this Release, means the Company, its subsidiaries,
affiliated or related corporations or associations, their predecessors, successors, and assigns,
and the directors, officers, managers, supervisors, employees, representatives, servants, agents,
and attorneys of the entities above described, and all persons acting, through, under or in concert
with any of them.

7. The Executive agrees to refrain from making any disparaging remarks concerning the Company
or its agents. The Company agrees to refrain from providing any information to third parties other
than confirming dates of employment and job title, unless the Executive gives the Company written
authorization to release other information or as otherwise required by law. With respect to the
Company, this restriction pertains only to official communications made by the Company’s directors
and/or officers and not to unauthorized communications by the Company’s employees or agent. This
restriction will not bar the Company from disclosing the Release as a defense or bar to any claim
made by the Executive in derogation of this Release.

PLEASE READ CAREFULLY BEFORE SIGNING. EXCEPT AS EXPRESSLY PROVIDED IN PARAGRAPH 1 ABOVE, THIS
RELEASE CONTAINS A RELEASE AND DISCHARGE OF ALL KNOWN AND UNKNOWN CLAIMS AGAINST THE COMPANY AND
ITS AGENTS EXCEPT THOSE RELATING TO THE ENFORCEMENT OF THIS RELEASE OR THOSE ARISING AFTER THE
EFFECTIVE DATE OF THIS RELEASE.

2stk_incen.htm

EXHIBIT 10.1

 

2011 ASHLAND INC. INCENTIVE PLAN

SECTION 1.  PURPOSE

      The purpose of the 2011 Ashland Inc. Incentive Plan is to promote the interests of Ashland Inc. and its shareholders by providing incentives to its directors, officers and employees.  Accordingly, the Company may grant to selected officers and employees Option Awards, Stock Appreciation Rights Awards, Restricted Stock Awards, Restricted Stock Unit Awards, Incentive Awards, Performance Unit Awards and Merit Awards in an effort to attract and retain in its employ qualified individuals and to provide such individuals with incentives to continue service with the Company, devote their best efforts to the Company and improve the Company’s economic performance, thus enhancing the value of the Company for the benefit of shareholders.  This Plan also provides an incentive for qualified persons, who are not officers or employees of the Company, to serve on the Board of Directors of the Company and to continue to work for the best interests of the Company by rewarding such persons with Restricted Stock Awards, Restricted Stock Unit Awards, Option Awards or Stock Appreciation Rights Awards. 

SECTION 2.  DEFINITIONS

      “Agreement” shall mean either: (i) an agreement, either in written or electronic format, entered into by the Company and a Recipient setting forth the terms and provisions applicable to an Award granted under the Plan; or (ii) a statement, either in written or electronic format, issued by the Company to a Recipient describing the terms and provisions of such Award, which need not be signed by the Recipient.

“Award” shall mean an Option Award, a Stock Appreciation Right Award, a Restricted Stock Award, a Restricted Stock Unit Award, an Incentive Award, a Performance Unit Award or a Merit Award, in each case granted under this Plan.

“Beneficial Ownership” and “Beneficially Owned” shall have the meaning set forth in Rule 13d-3 promulgated under the Exchange Act.

      “Beneficiary” shall mean the Person or Persons designated by a Recipient or if no designation has been made, the Person or Persons entitled by will or the laws of descent and distribution to receive the benefits specified under this Plan in the event of a Recipient’s death.

      “Board” shall mean the Board of Directors of the Company or its designee.

      “Change in Control” shall be deemed to have occurred if (i) there shall be consummated (A) any consolidation or merger of the Company (a “Business Combination”), other than a consolidation or merger of the Company into or with a direct or indirect wholly-owned subsidiary, in which the shareholders of the Company own, directly or indirectly, less than 50% of the then outstanding shares of common stock of the Business Combination that are entitled to vote generally for the election of directors of the Business Combination or pursuant to which shares of the Company’s Common Stock would be converted into cash, securities or other property, other than a merger of the Company in which the holders of the Company’s Common Stock immediately prior to the merger have substantially the same proportionate ownership of common stock of the surviving corporation immediately after the merger, or (B) any sale, lease, exchange or transfer (in one transaction or a series of related transactions) of all or substantially all the assets of the Company, provided, however, that no sale, lease, exchange or other transfer of all or substantially all the assets of the Company shall be deemed to occur unless assets constituting 80% of the total assets of the Company are transferred pursuant to such sale, lease, exchange or other transfer, or (ii) the shareholders of the Company shall approve any plan or proposal for the liquidation or dissolution of the Company, or (iii) any Person shall become the Beneficial Owner of securities of the Company representing 20% or more of the combined voting power of the Company’s then outstanding securities ordinarily (and apart from rights accruing in special circumstances) having the right to vote in the election of directors, as a result of a tender or exchange offer, open market purchases, privately-negotiated purchases or otherwise, without the approval of the Board or (iv) at any time during a period of two (2) consecutive years, individuals who at the beginning of such period constituted the Board shall cease for any reason to constitute at least a majority thereof, unless the election or the nomination for election by the Company’s shareholders of each new director during such two-year period was approved by a vote of at least

  

  

  

  

two-thirds of the directors then still in office who were directors at the beginning of such two-year period.  Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the Common Stock of the Company immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions.

      “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

      “Committees” shall refer to the P&C Committee as it relates to Awards to Participants and to the G&N Committee as it relates to Awards to Outside Directors.

      “Common Stock” shall mean the Common Stock of the Company ($.01 par value), subject to adjustment pursuant to Section 14 hereof.

      “Company” shall mean Ashland Inc. or any successor thereto.

      “Disability” shall mean, (i) in the case of a Participant, when he or she becomes unable to perform the functions required by his or her regular job due to physical or mental illness and, in connection with the grant of an Incentive Stock Option, he or she falls within the meaning of that term as provided in Section 22(e)(3) of the Code; and (ii) in the case of an Outside Director, when he or she is unable to attend to his or her duties and responsibilities as a member of the Board because of incapacity due to physical or mental illness.

“Dividend Equivalents” means the equivalent value (in cash, shares of Common Stock, shares of Restricted Stock or RSUs) of dividends that would otherwise be paid on the shares subject to an Award but that have not been issued or delivered, as described in Section 16(M).

“Employee” shall mean a regular, full-time or part-time employee of the Company or any of its Subsidiaries, provided, however, that for purposes of determining whether any individual may be a Participant for purposes of any grant of ISOs, the term “Employee” shall have the meaning given to such term in Section 3401(c) of the Code.

      “Exercise Price” shall mean, with respect to each share of Common Stock subject to an Option or Stock Appreciation Right, the price fixed by the Committees at which such share may be purchased from the Company pursuant to the exercise of such Option or Stock Appreciation Right.

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

      “Fair Market Value” shall mean (i) as of any date, the closing sale price per share of Common Stock as reported on the Composite Tape of the New York Stock Exchange, or if there are no sales on such day, on the next preceding trading day during which a sale occurred; (ii) with respect to an exercise of a Stock Appreciation Right, the sale price per share of Common Stock as reported on the Composite Tape of the New York Stock Exchange at the time of such exercise, and (iii) in the absence of such markets for the shares of Common Stock, the Fair Market Value shall be determined by the Committees in good faith (which determination shall, to the extent applicable, be made in a manner that complies with Section 409A of the Code), and such determination shall be conclusive and binding for all purposes. 

      “G&N Committee” shall mean the Governance and Nominating Committee of the Board, as from time to time constituted, or any successor committee of the Board with similar functions, or its designee.

      “Incentive Award” shall mean an Award made pursuant to Section 7 hereof, the payment of which is contingent upon the achievement of the Performance Goals for the particular Performance Period.

      “Incentive Stock Option” or “ISO” shall mean an Option that is intended by the Committees to meet the requirements of Section 422 of the Code or any successor provision.

      “ISO Award” shall mean an Award of an Incentive Stock Option pursuant to Section 10 hereof.

  

-2-

  

  

      “Merit Award” shall mean an Award of Common Stock issued pursuant to Section 9 hereof.

      “Non-Employee Director” shall mean a non-employee director within the meaning of applicable regulatory requirements, including those promulgated under Section 16 of the Exchange Act.

      “Nonqualified Stock Option” or “NQSO” shall mean an Option granted pursuant to this Plan which does not qualify as an Incentive Stock Option.

“NQSO Award” shall mean an Award of a Non-Qualified Stock Option pursuant to Section 10 hereof.

“Option” shall mean the right to purchase Common Stock at a price to be specified and upon terms to be designated by the Committees or otherwise determined pursuant to this Plan.  The Committees shall designate an Option as a Nonqualified Stock Option or an Incentive Stock Option.

 

      “Option Award” shall mean an Award of an Option pursuant to Section 10 hereof.

      “Outside Director” shall mean a director of the Company, who is not also an Employee, who is selected by the G&N Committee to receive an Award under this Plan.

      “P&C Committee” shall mean the Personnel and Compensation Committee of the Board, as from time to time constituted, or any successor committee of the Board with similar functions, which shall consist of three or more members, each of whom shall be a Non-Employee Director and an outside director as defined in the regulations issued under Section 162(m) of the Code, or its designee.

      “Participant” shall mean an Employee who is selected by the P&C Committee to receive an Award under this Plan. 

      “Performance Goals” shall mean performance goals as may be established in writing by the P&C Committee.  Such goals may be absolute in their terms or measured against or in relation to other companies comparably or otherwise situated.  Such performance goals may be particular to a Participant or the Subsidiary, division or other unit in which the Participant works and/or may be based on the performance of the Company generally.  The Performance Goals applicable to any Award that is intended to qualify for the performance-based exception from the tax deductibility limitations of Section 162(m) of the Code shall be based on one or more of the following criteria: earnings, stock price, return on equity, return on investment, total return to shareholders, economic profit, debt rating, operating income, cash flows, cost targets, return on assets or margins. 

      “Performance Period” shall mean the period designated by the P&C Committee during which the Performance Goals shall be measured.

      “Performance Unit Award” shall mean an Award made pursuant to Section 8 hereof, the payment of which is contingent upon the achievement of the Performance Goals for the particular Performance Period.

“Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (a) the Company, (b) a trustee or other fiduciary holding securities under an employee benefit plan of the Company, or (c) an underwriter temporarily holding securities pursuant to an offering on behalf of the Company.

      “Personal Representative” shall mean the Person or Persons who, upon the Disability or incompetence of a Recipient, shall have acquired on behalf of the Recipient by legal proceeding or otherwise the right to receive the benefits specified in this Plan.

      “Plan” shall mean this 2011 Ashland Inc. Incentive Plan.

      “Recipient” shall mean a Participant or an Outside Director, as appropriate.

  

-3-

  

  

      “Restricted Period” shall mean the period during which Restricted Stock or Restricted Stock Units are subject to a substantial risk of forfeiture (based on the passage of time, the achievement of Performance Goals, or upon the occurrence of other events as determined by the Committees, in their discretion).

      “Restricted Stock” shall mean those shares of Common Stock issued pursuant to a Restricted Stock Award which are subject to the restrictions, terms, and conditions set forth in the related Agreement or designated by the Committees in accordance with the Plan.

      “Restricted Stock Award” shall mean an Award of Restricted Stock pursuant to Section 6 hereof.

      “Restricted Stock Unit(s)” or “RSUs” shall mean units issued pursuant to a Restricted Stock Unit Award which are valued in terms of shares of Common Stock equivalents and are subject to the restrictions, terms, and conditions set forth in the related Agreement or designated by the Committees in accordance with the Plan.  

      “Restricted Stock Unit Award” or “RSU Award” shall mean an Award of Restricted Stock Units pursuant to Section 6 hereof.

“Retirement” shall mean, (i) in the case of a Participant, retirement from the employ of the Company or any of its Subsidiaries at any time as described in the Ashland Hercules Pension Plan or in any successor pension plan, as from time to time in effect, and (ii) in the case of an Outside Director, retirement from the Board after the date established by the G&N Committee as the date for mandatory retirement, as from time to time in effect.

      “Stock Appreciation Right” or “SAR” shall mean a right pursuant to a Stock Appreciation Right Award to be paid an amount measured by the appreciation in the Fair Market Value of shares of Common Stock from the date of grant to the time of exercise of the SAR, with payment to be made wholly in cash, wholly in shares of Common Stock or a combination thereof as specified in the Agreement or determined by the Committees.  A SAR may be granted only singly and may not be granted in tandem with an Option.

      “Stock Appreciation Right Award” or “SAR Award” shall mean an Award of a Stock Appreciation Right pursuant to Section 10 hereof.

      “Subsidiary” shall mean a corporation, company or other entity (i) more than fifty percent (50%) of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority) are now or hereafter, owned or controlled, directly or indirectly, by the Company, or (ii) which does not have outstanding shares or securities (as may be the case in a partnership, limited liability company, joint venture or unincorporated association), but more than fifty percent (50%) of whose ownership interests representing the right generally to make decisions for such other entity is now or hereafter, owned or controlled, directly or indirectly, by the Company; provided, however, that for purposes of determining whether any person may be a Participant for purposes of any grant of Incentive Stock Options, the term “Subsidiary” shall have the meaning given to such term in Section 424(f) of the Code, as interpreted by the regulations thereunder and applicable law.

“Tax Date” shall mean the date the withholding tax obligation arises with respect to an Award.

SECTION 3.  STOCK SUBJECT TO THIS PLAN

      (A) Subject to adjustment as provided under Section 14 hereof, there will be reserved for issuance under this Plan an aggregate of 2.000,000 shares of Common Stock, any or all of which may be delivered with respect to Stock Appreciation Rights Awards, ISO Awards or NQSO Awards.  Of such shares, only 500,000 shares in the aggregate shall be available for Restricted Stock Awards, Restricted Stock Unit Awards, Merit Awards, Incentive Awards and Performance Unit Awards.  Subject to adjustment as provided under Section 14 hereof, the following limits shall apply with respect to Awards that are intended to qualify for the performance-based exception from the tax deductibility limitations of Section 162(m) of the Code: (i) the maximum aggregate number of shares of Common Stock that may be subject to Options or SARs granted in any calendar year to any one Participant shall be 250,000 shares; and (ii) the maximum aggregate number of Restricted Stock Awards and shares of Common Stock issuable or deliverable under Restricted Stock Unit Awards granted in any calendar year to any one Participant shall be 50,000 shares.

  

-4-

  

  

  (B) In the event that any Award is paid solely in cash, no shares shall be deducted from the number of shares available for issuance by reason of such Award.  Shares of Common Stock subject to Awards that are forfeited, terminated, canceled or settled without the delivery of Common Stock under the Plan will again be available for Awards under the Plan and credited toward the Plan limit as set forth in Section 3(A) hereof.  Notwithstanding any other provision herein, the aggregate number of shares of Common Stock that may be issued under the Plan shall not be increased by: (i) shares of Common Stock tendered in full or partial payment of the Exercise Price of an Option, (ii) shares of Common Stock withheld by the Company or any Subsidiary to satisfy a tax withholding obligation, and (iii) shares of Common Stock that are repurchased by the Company with Option proceeds.  Moreover, all shares of Common Stock covered by a SAR, to the extent that it is exercised and settled in shares, and whether or not shares are actually issued or delivered to the Recipient upon exercise of the right, shall be considered issued or delivered pursuant to the Plan for purposes of Section 3(A) hereof.

 

SECTION 4.  ADMINISTRATION

      The P&C Committee shall have the exclusive authority to administer this Plan for Participants.  The G&N Committee shall have the exclusive authority to administer this Plan for Outside Directors. 

      In addition to any implied powers and duties that may be needed to carry out the provisions hereof, the Committees, acting individually, shall have all the powers vested in them by the terms hereof, including exclusive authority to select the Recipients, to determine the type, size and terms of the Awards to be made to each Recipient, to determine the time when Awards will be granted, and to prescribe the form of the Agreement embodying Awards made under this Plan.  The Committees shall be authorized to interpret this Plan and the Awards granted under this Plan, to establish, amend and rescind any rules and regulations relating to this Plan, to make any other determinations which they believe necessary or advisable for the administration hereof, and to correct any defect or supply any omission or reconcile any inconsistency in this Plan or in any Award in the manner and to the extent the Committees deem desirable to carry it into effect.  Any decision of the Committees in the administration of this Plan, as described herein, shall be final and conclusive.

SECTION 5.  ELIGIBILITY

      Awards may only be granted to Participants and Outside Directors, provided that Outside Directors may not be granted ISOs, Incentive Awards, Performance Awards or Merit Awards.

SECTION 6.  RESTRICTED STOCK AND RESTRICTED STOCK UNIT (RSU) AWARDS 

(A)Grant.  Any Recipient may receive one or more Restricted Stock Awards or RSU Awards, as the Committees shall from time to time determine.

(B)Restricted Periods.

(1)Participants.  The Restricted Period for each Restricted Stock Award or RSU Award to a Participant shall be set forth in the applicable Agreement.  Except as otherwise provided in an Agreement upon a termination of employment or pursuant to Section 12 in the event of a Change in Control, a Restricted Stock Award or RSU Award granted to a Participant shall have a minimum Restricted Period of (i) one year in the case of restrictions that lapse based on the achievement of Performance Goals; and (ii) three years in the case of restrictions that lapse based solely on the passage of time, which period may, at the discretion of the P&C Committee, lapse on a pro-rated, graded, or cliff basis (as specified in the Agreement); provided that in the Committees’ sole discretion, no more than five percent (5%) of the shares of Common Stock available for issuance as Restricted Stock Awards or pursuant to RSU Awards under the Plan may have a Restricted Period of less than one (1) year.

(2)Outside Directors.  The Restricted Period for each Restricted Stock Award or RSU Award to an Outside Director shall be set forth in the applicable Agreement; provided that in the Committees’ sole discretion, no more than five percent (5%) of the shares of Common Stock available for issuance as Restricted Stock Awards or pursuant to RSU Awards under the Plan may have a Restricted Period of less than one (1) year.

  

-5-

  

  

(3)Termination of Employment or Service.  Except as otherwise provided in the Agreement or as determined by the Committees, in the event that a Restricted Stock Award or RSU Award has been made to a Recipient whose employment or service as a director is subsequently terminated for any reason prior to the lapse of all restrictions thereon, such Restricted Stock or RSU shall be forfeited in its entirety by such Recipient.

(C)Certain Restricted Stock Award Provisions.

               (1)Shareholder Rights; Restrictions on Transferability.  Upon the granting of a Restricted Stock Award, a Recipient shall be entitled to all rights incident to ownership of Common Stock of the Company with respect to his or her Restricted Stock, including, but not limited to, the right to vote such shares of Restricted Stock and to receive dividends thereon when, as and if paid in cash, shares of Restricted Stock or Dividend Equivalents, as set forth in the applicable Agreement or as determined by the Committees, in their discretion.  Each such grant of Restricted Stock may be made without additional consideration or in consideration of a payment by such Recipient that is less than the Fair Market Value per share of Common Stock at the date of grant.  Subject to Section 16(B) hereof, Restricted Stock may not be sold, assigned, transferred, pledged, or otherwise encumbered during a Restricted Period.

               (2)Certificates; Dividends on Restricted Stock.  During the Restricted Period, certificates representing the Restricted Stock shall be registered in the Recipient’s name and bear a restrictive legend to the effect that ownership of such Restricted Stock, and the enjoyment of all rights appurtenant thereto are subject to the restrictions, terms, and conditions provided in this Plan and the applicable Agreement.  Such certificates shall be deposited by the Recipient with the Company, together with stock powers or other instruments of assignment, each endorsed in blank, which will permit transfer to the Company of all or any portion of the Restricted Stock which shall be forfeited in accordance with this Plan and the applicable Agreement.  Restricted Stock shall constitute issued and outstanding shares of Common Stock for all corporate purposes, with the exception that: (i) the Recipient will not be entitled to delivery of the stock certificates representing such Restricted Stock until the restrictions applicable thereto shall have expired; (ii) the Company will retain custody of all shares of Restricted Stock issued as a dividend or otherwise with respect to an Award of Restricted Stock (and such issued shares of Restricted Stock shall be subject to the same restrictions, terms and conditions as are applicable to the awarded Restricted Stock) until such time, if ever, as such shares of Restricted Stock shall have become vested, and Restricted Stock shall not bear interest or be segregated in separate accounts; (iii) subject to Section 16(B) hereof, the Recipient may not sell, assign, transfer, pledge, exchange, encumber, or dispose of any Restricted Stock during the Restricted Period; and (iv) unless otherwise determined and directed by the Committees, a breach of any restrictions, terms, or conditions provided in this Plan, the applicable Agreement or established by the Committees with respect to any Restricted Stock will cause a forfeiture of such awarded Restricted Stock (including any Restricted Stock issued as a dividend or otherwise) with respect thereto.

(D)Certain Restricted Stock Unit (RSU) Award Provisions.

(1)General.  Each grant of Restricted Stock Units shall constitute an agreement by the Company to issue or deliver shares of Common Stock or cash to the Recipient following the end of the applicable Restricted Period in consideration of the performance of services.  Each such grant of Restricted Stock Units may be made without additional consideration or in consideration of a payment by such Recipient that is less than the Fair Market Value per share of Common Stock at the date of grant.

(2)No Shareholder Rights; Dividend Equivalents.  A Recipient who receives an RSU Award shall not have any rights as a shareholder with respect to the shares of Common Stock subject to such RSUs until such time, if any, that shares of Common Stock are delivered to a Recipient pursuant to the terms of the applicable Agreement.  A Recipient who receives an RSU Award shall have such rights, if any, to Dividend Equivalents as shall be set forth in the applicable Agreement or as determined by the Committees, in their discretion.

(3)Payment.  Unless otherwise determined by the Committees, each Agreement shall set forth the payment date for the RSU Award, which date shall not be earlier than the end of the applicable Restricted Period.  Payment of earned Restricted Stock Units (and Dividend Equivalents, if applicable) may be made in one or more installments and may be made wholly in cash, wholly in shares of Common Stock or a combination thereof as determined by the Committees.  

  

-6-

  

  

SECTION 7.  INCENTIVE AWARDS

(A)Grant.  Any Participant may receive one or more Incentive Awards, as the P&C Committee shall from time to time determine.

(B)Terms and Conditions. 

               (1) Performance Goals.  No later than 120 days (90 days for those Participants subject to the limitations of Code Section 162(m)) after the commencement of each Performance Period, the P&C Committee shall establish in writing one or more Performance Goals that must be reached by a Participant in order to receive an Incentive Award for such Performance Period.  Except with respect to Participants subject to the limitations of Code Section 162(m), the P&C Committee shall have the discretion to later revise the Performance Goals and the amount to be paid out upon the attainment of such goals for any reason including the reflection of promotions, transfers or other changes in a Participant’s employment so long as such changes are consistent with the Performance Goals established for other Participants in the same or similar positions.  Performance Goals established for Participants subject to Code Section 162(m) may only be adjusted to reduce or eliminate the amount of compensation otherwise payable upon attainment of the Performance Goals.

               (2) Award Limits.  The target Incentive Award shall be a fixed percentage of the Participant’s base salary paid during the year.  The maximum aggregate compensation that can be paid pursuant to an Incentive Award granted in any calendar year to any one Participant shall be three million five hundred thousand dollars ($3,500,000) or a number of shares of Common Stock having an aggregate Fair Market Value not in excess of such amount. 

(C) Payment.  Payment of Incentive Awards shall be made on a date or dates fixed by the P&C Committee.  Payment may be made in one or more installments and may be made wholly in cash, wholly in shares of Common Stock or a combination thereof as determined by the P&C Committee. Payments shall in all events be made no later than the fifteenth day of the third month following the later of (i) the end of the tax year of the Participant in which the Performance Period ends and (ii) the end of the tax year of the Company in which the Performance Period ends.

      If payment of an Incentive Award shall be made all or partially in shares of Common Stock, the number of shares of Common Stock to be delivered to a Participant on any payment date shall be determined by dividing (x) the original dollar amount to be paid on the payment date (or the part thereof determined by the P&C Committee to be delivered in shares of such Incentive Award) by (y) the Fair Market Value on the date the Board approves the P&C Committee’s decision to pay an Incentive Award or such other date as the Board shall determine.

(D) Termination.  Unless otherwise determined and directed by the P&C Committee, an Incentive Award shall terminate if the Participant does not remain continuously employed and in good standing with the Company or any of its Subsidiaries until the date of payment of such Incentive Award.  Unless otherwise determined and directed by the P&C Committee, in the event a Participant’s employment is terminated because of death, Disability or Retirement, the Participant (or his or her Beneficiaries or estate) shall receive the prorated portion of the payment of an Incentive Award for which the Participant would have otherwise been eligible based upon the portion of the Performance Period during which he or she was so employed so long as the Performance Goals are subsequently achieved.

SECTION 8.  PERFORMANCE UNIT AWARDS

      (A)Grant.  Any Participant may receive one or more Performance Unit Awards, as the P&C Committee shall from time to time determine.

      (B)Terms and Conditions.

               (1)  Performance Goals.   The Performance Goals and Performance Period applicable to a Performance Unit Award shall be set forth in writing by the P&C Committee no later than 120 days (90 days for those Participants subject to the limitations imposed by Section 162(m) of the Code) after the commencement of the Performance Period.  Except with respect to Participants subject to the limitations of Section 162(m) of the Code,

  

-7-

  

  

the P&C Committee shall have the discretion to later revise the Performance Goals and the amount to be paid out upon the attainment of such goals for any reason including the reflection of promotions, transfers or other changes in a Participant’s employment so long as such changes are consistent with the Performance Goals established for other Participants in the same or similar positions.  Goals established for Participants subject to Section 162(m) of the Code may only be adjusted to reduce or eliminate the amount of compensation otherwise payable upon attainment of the Performance Goals.

               (2)  Award Limits.  Each Performance Unit Award shall be established in dollars or shares of Common Stock, or a combination of both, as determined by the P&C Committee.  The maximum aggregate compensation that can be paid pursuant to any Performance Unit Awards granted in any calendar year to any one Participant shall be six million dollars ($6,000,000) or a number of shares of Common Stock having an aggregate Fair Market Value not in excess of such amount.  In determining the amount of any Performance Unit Award made, in whole or in part, in shares of Common Stock, the value thereof shall be based on the Fair Market Value on the first day of the Performance Period or on such other date as the Board shall determine. 

(C)   Payment.  

(1)  General.  Payment with respect to Performance Unit Awards will be made to Participants on a date or dates fixed by the P&C Committee.  The amount of such payment shall be determined by the P&C Committee and shall be based on the original amount of such Performance Unit Award (including any Dividend Equivalents with respect thereto) adjusted to reflect the attainment of the Performance Goals during the Performance Period.  Payment may be made in one or more installments and may be made wholly in cash, wholly in shares of Common Stock or a combination thereof as determined by the P&C Committee.  Except as otherwise provided in the Agreement, payments shall be made no later than the fifteenth day of the third month following the later of (i) the end of the tax year of the Participant in which the Performance Period ends and (ii) the end of the tax year of the Company in which the Performance Period ends.  Any payment may be subject to such restrictions and conditions as the P&C Committee may determine.

               (2)  Payment in Common Stock.  If payment of a Performance Unit Award established in dollars is to be made in shares of Common Stock or partly in such shares, the number of shares of Common Stock to be delivered to a Participant on any payment date shall be determined by dividing (x) the amount payable by (y) the Fair Market Value of the Common Stock on the date the Board approves the P&C Committee’s decision to pay the Performance Unit Award or on such other date as the Board shall determine.

               (3)   Payment in Cash.  If payment of a Performance Unit Award established in shares of Common Stock is to be made in cash or partly in cash, the amount of cash to be paid to a Participant on any payment date shall be determined by multiplying (x) the number of shares of Common Stock to be paid in cash on such payment date with respect to such Performance Unit Award, by (y) the Fair Market Value of the Common Stock on the date the Board approves the P&C Committee’s decision to pay the Performance Unit Award or on such other date as the Board shall determine.  

(D)      Termination.  Unless otherwise determined and directed by the P&C Committee, a Performance Unit Award (including any Dividend Equivalents with respect thereto) shall terminate for all purposes if the Participant does not remain continuously employed and in good standing with the Company or any of its Subsidiaries until payment of such Performance Unit Award.  Unless otherwise determined and directed by the P&C Committee, a Participant (or his or her Beneficiaries or estate) whose employment was terminated because of death, Disability or Retirement will receive a prorated portion of the payment of his or her Performance Unit Award (including any Dividend Equivalents with respect thereto) based upon the portion of the Performance Period during which he or she was so employed so long as the Performance Goals are subsequently achieved.

SECTION 9.  MERIT AWARDS

      Any Participant may receive a Merit Award under this Plan for such reasons and in such amounts as the P&C Committee may from time to time determine.

  

-8-

  

  

SECTION 10.  OPTION AND SAR AWARDS

      (A)Grant. Any Recipient may receive one or more Option or SAR Awards, as the Committees shall from time to time determine.

 

      (B)Designation and Price.

               (1)Any Option granted under this Plan may be granted as an Incentive Stock Option or as a Nonqualified Stock Option as shall be designated by the Committees at the time of the grant of such Option.  Only Participants may be granted ISOs.  Each Option and SAR shall, at the discretion of the Company and as directed by the Committees, be evidenced by an Agreement, which Agreement shall specify the designation of the Option as an ISO or a NQSO, as the case may be, and shall contain such terms and conditions as the Committees, in their sole discretion, may determine in accordance with this Plan.

               (2)Every ISO shall provide for a fixed expiration date of not later than ten years from the date such ISO is granted.  Every NQSO and SAR shall provide for a fixed expiration date of not later than ten years and one month from the date such NQSO or SAR is granted.

               (3)The Exercise Price of Common Stock issued pursuant to each Option or SAR shall be fixed by the Committees at the time of the granting of the Option or SAR; provided, however, that such Exercise Price shall in no event ever be less than 100% of the Fair Market Value of the Common Stock on the date such Option or SAR is granted, subject to adjustment as provided in Section 14.

(C)Exercise.  The Committees may, in their sole discretion, provide for Options or SARs granted under this Plan to be exercisable in whole or in part; provided, however, that no Option or SAR shall be exercisable prior to the first anniversary of the date of its grant, except as provided in Section 12 hereof or as the Committees otherwise determine in accordance with this Plan, and in no case may an Option or SAR be exercised at any time for fewer than 50 shares (or the total remaining shares covered by the Option or SAR if fewer than 50 shares) during the term of the Option or SAR.  The specified number of shares of Common Stock will be issued after receipt by the Company of (i) notice from the holder thereof of the exercise of an Option or SAR, and (ii) with respect to Options, payment to the Company (as provided in subsection (D) of this Section) of the Exercise Price for the number of shares with respect to which the Option is exercised. Each such notice and payment shall be delivered or mailed to the Company at such place and in such manner as the Company may designate from time to time.

(D)Payment.  

               (1)Options.  Except as otherwise provided in this Section 10, the Exercise Price for the Common Stock issuable pursuant to an Option shall be paid in full when the Option is exercised.  Subject to such rules as the Committees may impose, the Exercise Price may be paid in whole or in part: (i) in cash; (ii) by tendering (either by actual delivery or attestation) unencumbered shares of Common Stock previously acquired by the Recipient exercising such Option having an aggregate Fair Market Value at the time of exercise equal to the total Exercise Price; (iii) by a combination of such methods of payment; or (iv) by such other consideration as shall constitute lawful consideration for the issuance of Common Stock and approved by the Committees (including, without limitation, effecting a cashless exercise of the Option with a broker).

(2)Stock Appreciation Rights.  A SAR shall entitle the holder thereof, upon exercise, to surrender the SAR and receive in exchange therefore an amount equal to (A) the excess, if any, of (1) the Fair Market Value of a share of Common Stock at the time the SAR is exercised over (2) the Exercise Price specified in such SAR, (B) multiplied by the number of shares of Common Stock covered by such SAR, or portion thereof, which is so surrendered.  Such amount shall be paid to the holder in shares of Common Stock the number of which shall be determined by dividing such amount by the Fair Market Value of the Common Stock at the time the holder makes an effective exercise of the right to receive such amount; provided that the exercise of any SAR may be settled wholly in cash or a combination of cash and shares of Common Stock as set forth in the Agreement or as determined by the Committees.  

  

-9-

  

  

(E)     Expiration or Termination of Awards.

               (1) Participants.

                      (a)  Except as otherwise provided in the Agreement or as determined by the P&C Committee, and subject to the provisions of Section 12(D) hereof, every Option and SAR granted to a Participant shall provide that it may not be exercised in whole or in part for a period of one year after the date of granting such Option or SAR (unless otherwise determined by the P&C Committee) and if the employment of the Participant shall terminate prior to the end of such one year period (or such other period determined by the P&C Committee), the Option or SAR granted to such Participant shall immediately terminate.

                      (b)  Except as otherwise provided in the Agreement or as determined by the P&C Committee, in the event the Participant dies (i) while employed, (ii) during the periods in which Options or SARs may be exercised by a Participant determined to be Disabled, or (iii) after Retirement, such Option or SAR shall be exercisable, at any time or from time to time, prior to the fixed termination date set forth in the Option or SAR, by the Beneficiaries of the decedent for the number of shares which the Participant could have acquired under the Option or SAR immediately prior to the Participant’s death. 

                      (c)  Except as otherwise provided in the Agreement or as determined by the P&C Committee, in the event the employment of any Participant shall cease by reason of Disability, as determined by the P&C Committee at any time during the term of the Option or SAR, such Option or SAR shall be exercisable, at any time or from time to time, prior to the fixed termination date set forth in the Option or SAR, by such Participant or his or her Personal Representative for the number of shares which the Participant could have acquired under the Option or SAR immediately prior to the Participant’s Disability.  The determination by the P&C Committee of any question involving Disability of a Participant shall be conclusive and binding.

                      (d)  Except as otherwise provided in the Agreement or as determined by the P&C Committee, in the event the employment of any Participant shall cease by reason of Retirement, such Option or SAR shall be exercisable, at any time or from time to time, prior to the fixed termination date set forth in the Option or SAR, for the number of shares which the Participant could have acquired under the Option or SAR immediately prior to such Retirement.  

                      (e)  Notwithstanding any provision of this Plan to the contrary, any Option or SAR may, in the discretion of the P&C Committee or as provided in the relevant Agreement, become exercisable, at any time or from time to time, prior to the fixed termination date set forth in the Option or SAR, for the full number of awarded shares or any part thereof, less such number as may have been theretofore acquired under the Option or SAR from and after the time the Participant ceases to be an Employee as a result of the sale or other disposition by the Company or any of its Subsidiaries of assets or property (including shares of any Subsidiary) in respect of which such Participant had theretofore been employed or as a result of which such Participant’s continued employment is no longer required.  

                      (f)  Except as provided in subsections (b), (c), (d) and (e) of this Section 10(E)(1) and Section 12(D) and Section 16(H) hereof, every Option and SAR shall terminate on the earlier to occur of the fixed termination date set forth in the Option or SAR or thirty (30) days after cessation of the Participant's employment for any cause in respect of the number of shares of Common Stock which the Participant could have acquired under the Option or SAR immediately prior to such cessation of employment; provided, however, that no Option or SAR may be exercised after the fixed termination date set forth in the Option or SAR.  

(2)Outside Directors.  

(a)  Except as otherwise provided in the Agreement or as determined by the G&N Committee, and subject to the provisions of Section 12(D) hereof, every Option and SAR granted to an Outside Director shall provide that it may not be exercised in whole or in part for a period of one year after the date of granting such Option or SAR (unless otherwise determined by the G&N Committee) and if the service of the Outside Director shall terminate prior to the end of such one year period (or such other period determined by the G&N Committee), the Option or SAR granted to such Participant shall immediately terminate.

  

-10-

  

  

(b)  Except as otherwise provided in the Agreement or as determined by the G&N Committee, in the event the service of any Outside Director as a director of the Company ceases by reason of Retirement, death or Disability, then any unexercised Options or SARs granted to such Outside Director shall be exercisable, at any time or from time to time, prior to the fixed termination date set forth in the Option or SAR, by such Outside Director, his or her Personal Representative or his or her Beneficiaries for the number of shares which the Outside Director could have acquired under the Option or SAR immediately prior to the Outside Director’s Retirement, death or Disability, as applicable.  The determination by the G&N Committee of any question involving Disability of an Outside Director shall be conclusive and binding.

SECTION 11.  CONTINUED EMPLOYMENT

      Nothing in this Plan, or in any Award granted pursuant to this Plan, shall confer on any individual any right to continue in the employment of, or service to, the Company or any of its Subsidiaries or interfere in any way with the right of the Company or any of its Subsidiaries to terminate the Participant’s employment at any time.

SECTION 12.  CHANGE IN CONTROL

     (A)Restricted Stock and RSU Awards. Upon a Change in Control, there shall be an acceleration of any Restricted Period relating to any Restricted Stock Award or any RSU Award and such Awards shall be free of all other restrictions for the full number of awarded shares or RSUs less such number as may have been theretofore acquired under the Restricted Stock Award or RSU Award.

     (B)Incentive Awards.  Upon a Change in Control, there shall be an acceleration of any Performance Period relating to any Incentive Award, and payment of any Incentive Award shall be made in cash within 30 days after such Change in Control (and in no event later than the fifteenth day of the third month of the last day of the Company’s fiscal year in which the Change in Control occurs) based upon achievement of the Performance Goals applicable to such Award up to the date of the Change in Control.  Further, the Company’s obligation with respect to such Incentive Award shall be assumed, or new obligations substituted therefor, by the acquiring or surviving corporation after such Change in Control.  In addition, prior to the date of such Change in Control, the P&C Committee, in its sole judgment, may make adjustments to any Incentive Award as may be appropriate to reflect such Change in Control; provided that, unless otherwise determined by the P&C Committee, any such adjustment that is made with respect to an Incentive Award that is intended to qualify for the performance-based exception from the tax deductibility limitations of Section 162(m) of the Code shall be made at such times and in such manner as will not cause such Incentive Award to fail to qualify under the performance-based exception.

(C)Performance Unit Awards.  Upon a Change in Control, there shall be an acceleration of any Performance Period relating to any Performance Unit Award, and payment of any Performance Unit Award shall be made in cash within 30 days after such Change in Control (or such other time as required in order to comply with Section 409A of the Code and as set forth in the Agreement) based upon achievement of the Performance Goals applicable to such Performance Unit Award up to the date of the Change in Control.  If such Performance Unit Award was established in shares of Common Stock, the amount of cash to be paid to a Participant with respect to the Performance Unit Award shall be determined by multiplying (x) the number of shares of Common Stock relating to such Performance Unit Award, by (y) the Fair Market Value of the Common Stock on the date of the Change in Control.  Further, the Company’s obligation with respect to such Performance Unit Award shall be assumed, or new obligations substituted therefor, by the acquiring or surviving corporation after such Change in Control.  In addition, prior to the date of such Change in Control, the P&C Committee, in its sole judgment, may make adjustments to any Performance Unit Award as may be appropriate to reflect such Change in Control; provided that, unless otherwise determined by the P&C Committee, any such adjustment that is made with respect to a Performance Unit Award that is intended to qualify for the performance-based exception from the tax deductibility limitations of Section 162(m) of the Code shall be made at such times and in such manner as will not cause such Performance Unit Award to fail to qualify under the performance-based exception.

(D)Option and SAR Awards.  Upon a Change in Control, any Option Award or SAR Award shall become immediately exercisable for the full number of awarded shares or any part thereof, less such numbers as may have been theretofore acquired under the Option Award or SAR Award from and after the date of such Change in Control, unless otherwise provided in the Agreement.

  

-11-

  

  

(E)Cash-out of Awards.  In connection with a Change in Control, the Committees may, in their sole discretion, either by the terms of the Agreement applicable to any Award or by resolution adopted prior to the occurrence of the Change in Control, provide that any outstanding Award (or a portion thereof) shall, upon the occurrence of such Change in Control, be cancelled in exchange for a payment in cash in an amount based on the Fair Market Value of the shares of Common Stock subject to the Award (less any Exercise Price), which amount may be zero (0) if applicable.

SECTION 13.  WITHHOLDING TAXES  

      Federal, state or local law may require the withholding of taxes applicable to gains resulting from the payment or vesting of an Award.  Unless otherwise prohibited by the P&C Committee, the Company may permit or require (subject to such conditions or procedures as may be established by the Committees) any such tax withholding obligation of a Participant to be satisfied by any of the following means, or by a combination of such means: (i) a cash payment from Participant; (ii) withholding from the shares of Common Stock otherwise issuable to the Participant pursuant to the vesting or exercise of an Award a number of shares of Common Stock having a Fair Market Value, as of the Tax Date, which will satisfy the minimum amount of the withholding tax obligation; or (iii) having the Participant deliver to the Company a number of shares of Common Stock having a Fair Market Value as of the Tax Date which will satisfy the minimum amount of the withholding tax obligation arising from the vesting or exercise of an Award.  If the payment specified in clause (i) or (iii) of the preceding sentence is not paid by a Participant, the P&C Committee may refuse to issue Common Stock under this Plan.

SECTION 14.  ADJUSTMENTS UPON CHANGES IN CAPITALIZATION

      In the event of any change in the outstanding Common Stock of the Company by reason of any stock split, stock dividend, recapitalization, merger, consolidation, reorganization, combination, or exchange of shares, split-up, split-off, spin-off, liquidation or other similar change in capitalization, or any distribution to common stockholders other than normal cash dividends, the number or kind of shares that may be issued under this Plan pursuant to Section 3 hereof and the number or kind of shares subject to, or the price per share under any outstanding Award shall be automatically adjusted so that the proportionate interest of the Recipient shall be maintained as before the occurrence of such event.  Such adjustment shall be conclusive and binding for all purposes hereof.  Notwithstanding the foregoing, the Committees shall not make any adjustment pursuant to this Section 14 that would (i) cause any Option intended to qualify as an ISO to fail to so qualify; (ii) cause an Award that is otherwise exempt from Section 409A of the Code to become subject to Section 409A; or (iii) cause an Award that is subject to Section 409A of the Code to fail to satisfy the requirements of Section 409A.  

SECTION 15.  AMENDMENT AND TERMINATION

      The Committees may amend, alter or terminate this Plan at any time without the prior approval of the Board; provided, however, that: (i) the Committees may not, without approval by the Board, materially increase the benefits provided to Recipients under this Plan; (ii) any amendment with respect to Restricted Stock Awards or RSU Awards granted to Outside Directors must be approved by the full Board; and (iii)  no alteration or amendment that requires shareholder approval in order for the Plan to continue to comply with the New York Stock Exchange rules or any rule promulgated by the Securities and Exchange Commission or any other securities exchange on which shares of Common Stock are listed or any other applicable laws shall be effective unless such amendment shall be approved by the requisite vote of shareholders of the Company entitled to vote thereon within the time period required under such applicable listing standard or rule.

Except for adjustments made pursuant to Section 14 hereof, the Board or the Committees will not, without the further approval of the shareholders of the Company, authorize the amendment of any outstanding Option or SAR to reduce the Exercise Price.  No Option or SAR will be cancelled and replaced with Awards having a lower Exercise Price or for another Award, or for cash without further approval of the shareholders of the Company, except as provided in Sections 12 or 14 hereof.  Furthermore, no Option or SAR will provide for the payment, at the time of exercise, of a cash bonus or grant or sale of another Award without further approval of the shareholders of the Company. This Section 15 is intended to prohibit the repricing of “underwater” Options or SARs without shareholder approval and will not be construed to prohibit the adjustments provided for in Sections 12 or 14 hereof.

  

-12-

  

  

      Termination of this Plan shall not affect any Awards made hereunder which are outstanding on the date of termination and such Awards shall continue to be subject to the terms of this Plan notwithstanding its termination.  

SECTION 16.  MISCELLANEOUS PROVISIONS

 

(A)Rights to Awards. No Recipient or other Person shall have any claim or right to be granted an Award under this Plan.

(B)  Assignment and Transfer. A Recipient’s rights and interests under this Plan (including any Awards granted hereunder) may not be assigned or transferred in whole or in part, either directly or by operation of law or otherwise (except in the event of a Recipient’s death, by will or the laws of descent and distribution), including, but not by way of limitation, execution, levy, garnishment, attachment, pledge, bankruptcy or in any other manner, and no such rights or interests of any Recipient in this Plan shall be subject to any obligation or liability of such individual; provided, however, that a Recipient’s rights and interests under this Plan (including any Awards granted hereunder) may, subject to the discretion and direction of the Committees, be made transferable by such Recipient during his or her lifetime.  Except as specified in Section 6 hereof, the holder of an Award shall have none of the rights of a shareholder until the shares subject thereto shall have been registered in the name of the person receiving or person or persons exercising the Award on the transfer books of the Company.

(C)Compliance with Legal and Exchange Requirements.  The Plan, the granting and exercising of Awards hereunder, the issuance of Common Stock and other interests hereunder, and the other obligations of the Company under the Plan and any Agreement pursuant to the Plan, shall be subject to all applicable federal and state laws, rules, and regulations, and to such approvals by any regulatory or governmental agency as may be required.  The Company or the Committees, in their respective discretion, may postpone the granting and exercising of Awards, the issuance or delivery of Common Stock under any Award or any other action permitted under the Plan to permit the Company, with reasonable diligence, to complete such stock exchange listing or registration or qualification of such Common Stock or other required action under any federal or state law, rule, or regulation and may require any Recipient to make such representations and furnish such information as the Committees may consider appropriate in connection with the issuance or delivery of Common Stock in compliance with applicable laws, rules, and regulations.  The Company shall not be obligated by virtue of any provision of the Plan to recognize the exercise of any Award or to otherwise sell or issue Common Stock in violation of any such laws, rules, or regulations; and any postponement of the exercise or settlement of any Award under this provision shall not extend the term of such Awards, and neither the Company nor any of its Subsidiaries, directors or officers shall have any obligations or liability to any Recipient with respect to any Award (or Common Stock issuable thereunder) that shall lapse because of such postponement.

(D)Ratification and Consent. By accepting any Award under this Plan, each Recipient and each Personal Representative or Beneficiary claiming under or through him or her shall be conclusively deemed to have indicated his or her acceptance and ratification of, and consent to, any action taken under this Plan by the Company or any of its Subsidiaries, the Board, or the Committees.

(E)Additional Compensation. Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to shareholder approval if such approval is required.

(F)Grant Date. Each Recipient shall be deemed to have been granted any Award on the date the Committees took action to grant such Award under this Plan or such date as the Committees in their sole discretion shall determine at the time such grant is authorized. The grant date shall not be earlier than the date of the resolution and action therein by the Committees.

(G)   Fractional Shares.  No fractional shares shall be issued or delivered pursuant to this Plan or any Award.  The Committees shall determine whether cash, other Awards, or other property shall be issued or paid in lieu of fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated.

(H)  Forfeiture Provision.  Unless the Agreement specifies otherwise, the Committees may, in their discretion, require a Recipient to forfeit all unexercised, unearned, unvested or unpaid Awards if:  

  

-13-

  

  

(1)  the Recipient, without written consent of the Company, engages directly or indirectly in any manner or capacity as principal, agent, partner, officer, director, employee or otherwise in any business or activity competitive with the business conducted by the Company or any of its Subsidiaries, as determined by the Committees;

(2)  the Recipient performs any act or engages in any activity that is detrimental to the best interests of the Company or any of its Subsidiaries, as determined by the Committees; or

(3)  the Recipient breaches any agreement or covenant with, or obligation or duty to, the Company or any Subsidiary, including without limitation, any non-competition agreement, non-solicitation agreement, confidentiality or non-disclosure agreement, or assignment of inventions or ownership of works agreement, as determined by the Committees.

(I)   Severability.  The validity, legality, or enforceability of the Plan will not be affected even if one or more of the provisions of this Plan shall be held to be invalid, illegal, or unenforceable in any respect.

(J)  Section 409A.   Awards granted under the Plan shall be designed and administered in such a manner that they are either exempt from the application of, or comply with, the requirements of Section 409A of the Code.   To the extent that the Committees determine that any award granted under the Plan is subject to Section 409A of the Code, the Agreement shall incorporate the terms and conditions necessary to avoid the imposition of an additional tax under Section 409A of the Code upon a Recipient.  Notwithstanding any other provision of the Plan or any Agreement (unless the Agreement provides otherwise with specific reference to this Section):  (i) an Award shall not be granted, deferred, accelerated, extended, paid out, settled, substituted or modified under the Plan in a manner that would result in the imposition of an additional tax under Section 409A of the Code upon a Recipient; and (ii) if an Award is subject to Section 409A of the Code, and if the Recipient holding the Award is a “specified employee” (as defined in Section 409A of the Code, with such classification to be determined in accordance with the methodology established by the Company), no distribution or payment of any amount under the Award shall be made before a date that is six (6) months following the date of such Recipient’s “separation from service” (as defined in Section 409A of the Code) or, if earlier, the date of the Recipient’s death. Although the Company intends to administer the Plan so that Awards will be exempt from, or will comply with, the requirements of Section 409A of the Code, the Company does not warrant that any Award under the Plan will qualify for favorable tax treatment under Section 409A of the Code or any other provision of federal, state, local, or non-United States law. The Company shall not be liable to any Recipient for any tax, interest, or penalties a Recipient might owe as a result of the grant, holding, vesting, exercise, or payment of any Award under the Plan.

(K)  Awards to Participants Outside the United States. Notwithstanding any provision of this Plan to the contrary, in order to comply with the laws in other countries in which the Company and its Subsidiaries operate or have Employees, the P&C Committee, in its sole discretion, shall have the power and authority to: (i) determine which Subsidiaries shall be covered by this Plan; (ii) determine which Employees outside the United States are eligible to participate in this Plan; (iii) modify the terms and conditions of any Award granted to Employees outside the United States to comply with applicable foreign laws; (iv) modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable; and (v) take any action, before or after an Award is made, that it deems necessary or advisable to obtain approval or comply with any local government regulatory exemptions, approvals or requirements.

 

Notwithstanding the above, the P&C Committee may not take any actions hereunder, and no Awards shall be granted that would violate any applicable law.

(L)  Headings.  The headings in this Plan are inserted for convenience only and shall not affect the interpretation hereof.

 

(M)  Dividend Equivalents.  At the discretion of the Committees, Awards granted pursuant to the Plan may provide Recipients with the right to receive Dividend Equivalents, which may be paid currently or credited to an account for the Recipients, and may be settled in cash and/or shares of Common Stock, as determined by the Committees in their sole discretion, subject in each case to such terms and conditions as the Committees shall

  

-14-

  

  

establish.  No Dividend Equivalents shall relate to shares underlying an Option or SAR unless such Dividend Equivalent rights are explicitly set forth as a separate arrangement and do not cause any such Option or SAR to be subject to Section 409A of the Code.

(N)  Deferrals.  Except with respect to Options and SARs, the Committees may permit Recipients to elect to defer the issuance or delivery of shares of Common Stock or the settlement of Awards in cash under the Plan pursuant to such rules, procedures or programs as it may establish for purposes of the Plan. The Committees also may provide that deferred issuances and settlements include the payment or crediting of Dividend Equivalents or interest on the deferral amounts. All elections and deferrals permitted under this provision shall comply with Section 409A of the Code, including setting forth the time and manner of the election (including a compliant time and form of payment), the date on which the election is irrevocable, and whether the election can be changed until the date it is irrevocable.

(O)  Successors.  All obligations of the Company under the Plan and with respect to Awards shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or other event, or a sale or disposition of all or substantially all of the business and/or assets of the Company and references to the "Company" herein and in any Agreements shall be deemed to refer to such successors.

SECTION 17.  EFFECTIVENESS OF THIS PLAN

      This Plan shall be submitted to the shareholders of the Company for their approval on January 27, 2011, or such other date fixed for the next meeting of shareholders or any adjournment or postponement thereof.  This Plan will be effective as of the date of its approval by the shareholders of the Company.

SECTION 18.  GOVERNING LAW

      The provisions of this Plan shall be interpreted and construed in accordance with the laws of the Commonwealth of Kentucky.

 

 

 

-15-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}]]