Document:

Exhibit 10.2 

FIRST INDIANA CORPORATION

SUPPLEMENTAL BENEFIT PLAN

PLAN AGREEMENT

 

THIS AGREEMENT is made as of the 3rd day of January, 2006, by and between First Indiana Bank (hereinafter referred to as the “Employer”) and Reagan K. Rick, (hereinafter referred to as the “Employee”).

 

WITNESSETH:

 

WHEREAS, the Board of Directors of the Employer has determined that it is desirable and in the best interest of the Employer to maintain a Supplemental Benefit Plan; and

 

WHEREAS, the Employee has been selected to become a participant of said Plan, and the Employee elects to so participate.

 

IT IS THEREFORE AGREED:

 

	
            1.
 	
            Benefits.  The Employee shall be eligible to receive any and all benefits to which he is entitled under the terms of the Plan.
 

 

	
            2.
 	
            Vesting.  The Employee shall be vested with respect to the “excess plan portion” of his monthly retirement benefits under the Plan to the same extent he is vested with respect to benefits payable under the DB Pension Plan.  He shall become fully vested with respect to his other benefits under the Plan and this Agreement (the remainder of his monthly retirement benefit) at the time specified in the Plan or, if earlier, when the sum of his whole years of age plus his whole years of service with the Employer and its affiliates exceeds 80, provided he remains in the service of the Employer and its affiliates until such time.  For purposes of the Plan and this Agreement, the Employee’s whole years of service with the Employer and its affiliates shall be determined in the same manner as it is determined for vesting purposes
under the DB Pension Plan.
 

 

	
            3.
 	

      Arbitration.
        In the event of any disputes, differences, controversies or claims arising
        out of, or in connection with, the Employee’s rights under the Plan
        or this Agreement, other than a dispute in which the sole relief sought
        is an equitable remedy, such as a temporary restraining order or a permanent
        or temporary injunction, the parties shall be required to have the dispute,
        controversy, difference or claim settled through binding arbitration pursuant
        to the American Arbitration Association’s rules of Commercial Arbitration
        which are then in effect The location of all arbitration proceedings shall
        be Indianapolis, Indiana. One arbitrator shall be selected by the parties
        and shall be a current or former executive officer (vice president or
        higher) of a publicly-traded corporation. In the event the parties are
        unable to mutually agree upon a person to act as the arbitrator, or in
        the event a mutually-agreed upon arbitrator shall fail to accept the appointment
        by the parties, the parties shall jointly request from the American Arbitration
        Association a list 

    

 

1

 

 

of
  the names of five persons qualified to act as an arbitrator under this clause.
  The selection of the final arbitrator then shall be achieved by each party alternately
  striking a name, with the Employer going first, until one name remains. In the
  event the parties mutually agree that the five names submitted by the American
  Arbitration Association are unsatisfactory, they jointly may request a second
  list of five names from the American Arbitration Association and final selection
  shall be achieved through the procedure set out herein. The decision of the
  arbitrator shall be final and binding upon both parties, and any award entered
  by the arbitrator shall be final, binding and non-appealable, and judgment may
  be entered thereon by either party in accordance with the applicable law in
  any court of competent jurisdiction. The arbitrator shall not have authority
  to modify any provision of the Plan or this Agreement nor to award a remedy
  for any difference, dispute, controversy or claim arising under the Plan or
  this Agreement other than a benefit specifically provided under or by virtue
  of the Plan or this Agreement. The Employer shall be responsible for all of
  the reasonable expenses of the American Arbitration Association, the arbitrator
  and the conduct of the selection and the arbitration procedures set forth in
  this section, including reasonable attorneys’ fees and expenses incurred
  by either party which are associated with the arbitration procedure through
  the time the final arbitration decision or award is rendered. This arbitration
  provision shall be specifically enforceable.

 

	
            4.
 	
            Limitation on Payments.
 

 

	
             
 	
            (a)
 	

      Notwithstanding
        anything contained herein to the contrary, prior to the payment of any
        amounts pursuant to the Plan or this Agreement, an independent national
        accounting firm designated by the Employer (the "Accounting Firm") shall
        compute whether there would be payable to the Employee any "excess parachute
        payments,” within the meaning of section 280G of the Internal Revenue
        Code of 1986, as amended (the "Code"), taking into account the total "parachute
        payments," within the meaning of section 280G of the Code, payable or
        to be provided to the Employee, whether by the Employer or any of its
        affiliates or by any successor to the Employer or any such affiliate,
        and whether under the Plan or this Agreement or under any other plan,
        practice or agreement. If there would be any excess parachute payments,
        the Accounting Firm will compute the net after-tax proceeds to the Employee,
        taking into account the excise tax imposed by section 4999 of the Code,
        if (i) such parachute payments were reduced to the point that the total
        thereof would not exceed three times the "base amount" as defined in section
        280G of the Code, less One Dollar ($1.00), or (ii) such parachute payments
        were not reduced. If not reducing such parachute payments would result
        in a greater after-tax amount to the Employee, such parachute payments
        shall not be reduced. If reducing such parachute payments would result
        in a greater after-tax amount to the Employee, they shall be reduced to
        such lesser amount. If such parachute payments must be reduced, the Employee
        shall direct which of the payments are to be reduced and the manner in
        which each is to be limited or modified. The determination by the Accounting
        Firm shall be binding 

    

 

 

2

 

 

 

	 	 	upon the Employer and the Employee subject to
      the application of subsection (c) of this section.
	 	 	 
	
       

    	
      (b)

    	
      As
        a result of various incentive or other plans, the Employee may be entitled
        to receive various parachute payments over a period of several years.
        In such event, the Accounting Firm may need to update its calculations
        under subsection (a) of this section one or more times. In the event that
        all or a portion of a parachute payment is not made due to the limitations
        of this Section 4, the Employer shall not be relieved of liability for
        such amount but such parachute payment shall be deferred and included
        in calculations with respect to subsequent parachute payments.

    

 

	
             
 	
            (c)
 	
            As a result of uncertainty in the application of section 280G of the Code at the time of determinations by the Accounting Firm hereunder and uncertainties in the valuation of future payments, it is possible that parachute payments will have been made by the Employer which should not have been made (an "Overpayment") or that additional parachute payments which will not have been made by the Employer could have been made (an "Underpayment"), consistent in each case with the other provisions of this Section 4.  In the event that the Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against the Employer or the Employee which the Accounting Firm believes has a high probability of success, determines that an Overpayment has been made, such Overpayment shall be treated for all purposes as a loan to the Employee which the Employee
shall repay to the Employer, together with interest at the applicable federal rate provided for in section 7872(f)(2)(A) of the Code; provided, however, that no amount shall be payable by the Employee to the Employer if and to the extent that such payment would not reduce the amount which is subject to taxation under section 4999 of the Code.  In the event that the Accounting Firm determines that an Underpayment has occurred, such Underpayment shall promptly be paid or transferred by the Employer to or for the benefit of the Employee, together with interest at the applicable federal rate provided for in section 7872(f)(2)(A) of the Code.
 

 

	
             
 	
            (d)
 	

      All
        fees, costs and expenses (including, but not limited to, the cost of retaining
        experts) of the Accounting Firm shall be borne by the Employer and the
        Employer shall pay such fees, costs and expenses as they become due. In
        performing the computations required hereunder, the Accounting Firm shall
        assume that all parachute payments to be made to the Employee will be
        subject to federal and state income tax at the maximum rate in effect
        at the time the determination is made unless the Employee provides the
        Accounting Firm with evidence that it is more probable than not that one
        or more parachute payments will be taxable at a lower rate, or lower rates,
        in which case the Accounting Firm shall assume that such parachute payments
        will be taxed at the lower rate or rates. taxes will be paid for state
        and federal purposes at the highest possible marginal 

    

 

 

3

 

 

 

	 	 	tax rates which could be applicable to the Employee
      in the year of receipt of the payments, unless the Employee agrees otherwise.
	 	 	 
	
       

    	
      (e)

    	
      In
        the event the Plan or this Agreement is subject to Section 18(k) of the
        Federal Deposit Insurance Act (the “FDIA”) at the time any payment
        is to be made by the Bank to the Executive pursuant to the Plan or this
        Agreement or otherwise, such payment will be subject to, and conditioned
        upon, its compliance with Section 18(k) of the FDIA and any regulations
        promulgated thereunder.

    

 

IN WITNESS WHEREOF, this Agreement has been made as of the date herein above written.

 

Employer:

 

FIRST INDIANA BANK

 

 

	
             
 	
            By:
 	
            _________________________
 

Robert H. Warrington, 

President & CEO

First Indiana Bank, N.A.

 

EMPLOYEE:

 

_____________________________

Reagan K. Rick

 

_____________________________

Street Address or P. O. Box 

 

_____________________________

City, State, Zip

 

 

 

4Exhibit 10.3 

FIRST INDIANA CORPORATION

2004 EXECUTIVE COMPENSATION PLAN

 

Restricted Stock Agreement

 

RS NO. 000066

 

The Compensation Committee of First Indiana Corporation and its Subsidiaries (collectively, the “Employers”) hereby awards Restricted Shares of the Corporation’s Common Stock to Reagan K. Rick (the “Grantee”) upon the following terms and conditions:

 

1.  Reference to Plan.  The Restricted Shares awarded by this Agreement are granted pursuant to the First Indiana Corporation 2004 Executive Compensation Plan (the “Plan”).  A copy of the Plan, as in effect on the Date of Grant, is attached hereto and incorporated herein by reference.  No amendment of the Plan adopted after the Date of Grant shall apply to the Restricted Shares unless, by its express provisions, it is effective retroactive to the Date of Grant or some earlier date.  No such retroactive amendment may, without the consent of the Grantee, adversely affect the rights of the Grantee under this Agreement.

 

2.  Definitions.  For purposes of this Agreement and any amendments hereto, the terms defined in Article IV of the Plan, when capitalized, shall have the same meanings as the meanings ascribed to them for purposes of the Plan, unless a different meaning is set forth herein, or unless a different meaning is plainly required by the context.  For purposes of this Agreement and any amendments hereto, the following terms, when capitalized, shall have the following meanings, unless a different meaning is plainly required by the context:

 

“Agreement” means this Restricted Stock Agreement.

 

“Bank” means First Indiana Bank, N.A., a wholly-owned Subsidiary of the Corporation.

 

“Common Stock” means shares of the common stock, par value $.01 per share, of the Corporation.

 

“Date of Grant” means January 3, 2006, the date as of which the Restricted Shares awarded by this Agreement are being awarded.

 

“Restricted Period” means the period commencing on the Date of Grant, and ending on January 3, 2011, or on such earlier date as the Compensation Committee may determine pursuant to Section 4.

 

“Restricted Shares” mean the shares of Common Stock awarded by this Agreement, including any shares of Common Stock or other securities distributed in respect thereof, or in substitution therefor, by reason of an adjustment provided for in Section 8 below.

 

 

 

 

3.  Share Award.  The Employers hereby award to the Grantee, subject to the terms and conditions of the Plan, and subject to the terms and conditions set forth in this Agreement, Five Thousand (5,000) shares of Common Stock.

 

4.  Restrictions on Transfer.  The Restricted Shares will vest at the expiration of the Restricted Period, subject to the provisions of Sections 5 and 6.  Unless and until such time as the restrictions specified in this Agreement no longer apply, the Grantee may not sell, assign, transfer, pledge or otherwise encumber the Restricted Shares, except as hereinafter provided.  The Compensation Committee shall have the authority, in its discretion, to waive the provisions of Sections 5 and 6 and to shorten the Restricted Period as to any or all of the Restricted Shares and thereby to cause such Restricted Shares to vest at an earlier date, whenever the Compensation Committee may determine that such action is appropriate by reason of changes in applicable tax or other laws or by reason of other changes and circumstances occurring after the Date of Grant.

 

5.  Forfeiture Upon Interruption or Termination of Continuous Status.  If the Grantee's Continuous Status is interrupted or terminated prior to the close of the Restricted Period, the Restricted Shares shall be forfeited and cancelled; provided, however, that the provisions of this section shall not be deemed to limit the authority of the Committee to declare the Restricted Shares fully vested notwithstanding such interruption or termination; provided further, that if the Grantee’s Continuous Status is terminated by the Bank without Cause (as defined below) at any time during the Restricted Period, the Restricted Shares shall be deemed to have become fully vested upon such termination and no longer shall be subject to forfeiture.  “Cause” when used in connection with termination of the Grantee’s employment or
Continuous Status, shall have the meaning set forth in any then-effective employment agreement between the Grantee and his or her Employer.  In the absence of such an employment agreement provision, “Cause” means:  (a) conviction of any crime (whether or not involving an Employer) constituting a felony in the jurisdiction involved; (b) engaging in any substantiated act involving moral turpitude; (c) engaging in any act which, in each case, subjects, or if generally know would subject, an Employer to public ridicule or embarrassment; (d) material violation of his or her Employer’s policies, including, without limitation, those relating to sexual harassment or the disclosure or misuse of confidential information; or (e) serious neglect or misconduct in the performance of the Grantee’s duties for his Employer or willful or repeated failure or refusal to perform such duties.  The Compensation Committee shall have the right to determine whether the termination of the
Grantee’s employment or Continuous Status is a dismissal for Cause and the date of the termination in such a case, which date the Compensation Committee may deem to be the date of the action that is a Cause for dismissal.  Such determination of the Compensation Committee shall be final, binding, and conclusive.

 

6.  Certificates for Restricted Shares.  The Corporation shall issue one or more certificates in respect of the Restricted Shares in the name of the Grantee and shall hold such certificate or certificates on deposit for the account of the Grantee until the expiration of the Restricted Period and in accordance with the Plan.  Each such certificate shall bear the following legend:

 

 

-2-

 

 

 

The transferability of this certificate and the shares of stock represented hereby are subject to the terms and conditions (including forfeiture) contained in the First Indiana Corporation 2004 Executive Compensation Plan (“Plan”) and an Agreement entered into between the registered owner and First Indiana Corporation.  Copies of the Plan and the Agreement are on file in the office of the Secretary of First Indiana Corporation, 135 North Pennsylvania Street, Suite 2800, Indianapolis, Indiana 46204.

 

Upon execution of this Agreement, the Grantee shall execute a stock power endorsed in blank and promptly deliver such stock power to the Corporation.

 

7.  Grantee's Rights as Stockholder; Voting; Dividends.  Except as otherwise provided herein, the Grantee, as owner of the Restricted Shares, shall have all the rights of a stockholder, including, but not limited to, the right to receive all cash dividends paid on the Restricted Shares and the right to vote the Restricted Shares.

 

8.  Adjustments for Changes in Capitalization of the Corporation.  In the event of any change in the outstanding shares of Common Stock subsequent to the Date of Grant by reason of any reorganization, recapitalization, stock split, stock dividend, combination or exchange of shares, merger, consolidation, or any change in the corporate structure of the Corporation or in the shares of Common Stock, the number and class of Restricted Shares covered by this Agreement shall be appropriately adjusted.  Any shares of Common Stock or other securities distributed in respect of the Restricted Shares as a result of any of the foregoing shall be held by the Corporation on deposit for the account of the Grantee until the expiration of the Restricted Period and shall be subject to the forfeiture and other provisions of this Agreement to the same extent and
in the same manner as the previously issued Restricted Shares in respect of which they were distributed.

 

9.  Effect of Change of Control.  The Change of Control Provisions set forth in the Plan shall apply to and control this Agreement.

 

10.  Delivery and Registration of Shares of Common Stock.  The Corporation's obligation to deliver shares of Common Stock hereunder shall, if the Compensation Committee so requests, be conditioned upon the receipt of a representation as to the investment intention of the Grantee or any other person to whom such shares are to be delivered, in such form as the Compensation Committee shall determine to be necessary or advisable to comply with the provisions of the Securities Act of 1933, as amended, or any other federal, State or local securities legislation.  In requesting any such representation, it may be provided that such representation requirement shall become inoperative upon a registration of such shares or other action eliminating the necessity of such representation under such Securities Act or other securities legislation.  The
Corporation shall not be required to deliver any shares under this Agreement prior to (i) the admission of such shares to listing on any stock exchange on which the shares of Common Stock may then be listed, and (ii) the completion of such registration or other qualification of such shares under any state or federal law, rule or regulation, as the Compensation Committee shall determine to be necessary or advisable.

 

 

-3-

 

 

 

11.  Withholding Tax.  Upon vesting of the Restricted Shares (or at such earlier time as an election is made by the Grantee under Section 83(b) of the Internal Revenue Code of 1986, as amended, or any successor provision thereto, to include the value of the Restricted Shares in taxable income), the Grantee’s Employer shall have the right to require the Grantee or other person receiving the Restricted Shares to pay such Employer the amount of any taxes which it is required to withhold with respect to the Restricted Shares or, in lieu thereof, to retain, or sell without notice, a sufficient number of the Restricted Shares to cover the amount required to be withheld.  The Corporation shall have the right to deduct from all dividends paid on the Restricted Shares the amount of any taxes which the Employers are required to withhold with
respect to such dividend payments.

 

12.  Notices.  Any notices provided for in this Agreement or the Plan shall be given in writing.  Notices to the Employers shall be delivered to the President of the Corporation at the main office of the Corporation, and shall be deemed effectively given when so delivered.  Notices to the Grantee shall be mailed and shall be deemed effectively given five days after deposit in the United States mail, postage prepaid, addressed to the Grantee at the last address provided by the Grantee to the Corporation.

 

13.  Plan and Plan Interpretations as Controlling.  The Restricted Shares and the terms and conditions herein set forth are subject in all respects to the terms and conditions of the Plan which is controlling.  All determinations and interpretations of the Compensation Committee shall be binding and conclusive upon the Grantee or his legal representatives with regard to any question arising hereunder or under the Plan.

 

14.  Award Not a Service Contract.  This Award is not an employment or service contract, and nothing in this Agreement shall be deemed to create in any way whatsoever any obligation on the Grantee’s part to continue in the service of the Corporation or any Subsidiary, or on the part of the Corporation or any Subsidiary to continue the Grantee in its service.

 

15.  Grantee Acceptance.  The Grantee shall signify his acceptance of the terms and conditions of this Agreement by signing on the space provided below and returning a signed copy hereof to the Corporation.

 

[The remainder of this page is intentionally left blank.]

 

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of January 3, 2006.

 

FIRST INDIANA CORPORATION

 

By: __________________________

	
             
 	
            Robert H. Warrington, President
 

 

“Corporation”

 

 

FIRST INDIANA BANK, N.A.

 

By: __________________________

	
             
 	
            Robert H. Warrington,
 
	
             
 	
            President and CEO
 	
             

 

 “Bank”

 

 

ACCEPTED:

 

	
             
 	
            REAGAN K. RICK
 

 

	
             
 	
            ______________________________
 

Reagan K. Rick

______________________________

	
             
 	
            (Street Address)
 

 

______________________________

	
             
 	
            (City, State & Zip Code)
 

 

	
             
 	
            “Grantee”
 

 

 

 

-5-

 

 

 

 

IRREVOCABLE STOCK
POWER  

 

FOR VALUE RECEIVED, the undersigned does hereby sell, assign and transfer to First Indiana Corporation, ____________ shares of the common stock of First Indiana Corporation represented by Certificate Nos. _____________ (including additional shares of such common stock distributed as dividends in respect of such shares or any such additional shares) now or hereafter standing in the name of the undersigned on the books of said Corporation.

 

The undersigned hereby irrevocably constitutes and appoints National City Bank to transfer the said shares on the books of said Corporation, with full power of substitution in the premises.

 

Dated: ___________________

________________________________

	
             
 	
            Reagan K. Rick

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