Document:

exv10w13

Exhibit 10.13

 

 

INDEMNIFICATION AGREEMENT

by and between

AMERICAN COMMERCIAL LINES INC.

and

{NAME}

Dated as of ____________

 

 

 

 

INDEMNIFICATION AGREEMENT

     INDEMNIFICATION AGREEMENT (this “Agreement”), dated as of {DATE}, by and between American
Commercial Lines Inc., a Delaware corporation (the “Company”), and {NAME}, a natural person
(“Indemnitee”).

R E C I T A L S

     WHEREAS, highly competent individuals have become more reluctant to serve publicly-traded
corporations as directors, officers or in other capacities unless they are provided with adequate
protection through insurance or adequate indemnification against risks of claims and actions
against them arising out of their services to and activities on behalf of such corporations;

     WHEREAS, directors and officers are increasingly being subjected to expensive and
time-consuming litigation relating to, among other things, matters that traditionally would have
been brought only against the corporation itself;

     WHEREAS, the Board of Directors of the Company (the “Board”) recognizes the limitations on the
protection provided by liability insurance and the uncertainties as to the scope and level of such
coverage that may be available in the future;

     WHEREAS, the Board recognizes the limitations on the protection provided by existing
indemnification arrangements pursuant to the Company’s certificate of incorporation (the “Charter”)
and amended and restated bylaws (the “Bylaws”) and the uncertainties as to its availability in any
particular situation;

     WHEREAS, the Board believes that, in light of the limitations and uncertainties in respect of
the protection provided by the Company’s liability insurance and existing indemnification
arrangements and the impact these uncertainties may have on the Company’s ability to attract and
retain qualified individuals to serve or continue to serve the Company as directors, officers or in
other capacities, the Company should act to assure such individuals that there will be increased
certainty with respect to such protection in the future;

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify, and to advance expenses on behalf of, such individuals to the fullest extent
permitted by applicable law so that they will serve or continue to serve the Company free from
undue concern that they may not be adequately protected;

     WHEREAS, Indemnitee is concerned that the protection provided under the Company’s liability
insurance and existing indemnification arrangements may not be adequate and may not be willing to
serve or continue to serve the Company as a director, an officer or in any other capacity without
greater certainty concerning such protection, and the Company desires

 

 

Indemnitee to serve or continue to serve the Company as a director, an officer or in another
capacity and is willing to provide such greater certainty; and

     WHEREAS, this Agreement is a supplement to, and in furtherance of, the Charter and the Bylaws
and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to
diminish or abrogate any rights of Indemnitee thereunder.

A G R E E M E N T S

     NOW, THEREFORE, in consideration of the premises, covenants and agreements contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, the Company and Indemnitee covenant and
agree as follows:

ARTICLE I

DEFINITIONS

     1.1 For purposes of this Agreement:

     (a) The term “agent” shall mean any person who is or was a director, an officer or an employee
of the Company or a subsidiary of the Company or any other person authorized by the Company to act
for or on behalf of the Company, including any person serving in such capacity as a director,
officer, employee, fiduciary or other official of another corporation, partnership, limited
liability company, joint venture, trust or other enterprise at the request of, for the convenience
of, or to represent the interests of the Company or a subsidiary of the Company.

     (b) “Agreement” shall have the meaning ascribed to such term in the Preamble.

     (c) “Beneficial Owner” and “Beneficial Ownership” shall have the meanings ascribed to such
terms in Rule 13d-3 promulgated under the Exchange Act as in effect on the date hereof.

     (d) “Board” shall have the meaning ascribed to such term in the Recitals.

     (e) “Bylaws” shall have the meaning ascribed to such term in the Recitals.

     (f) “Change in Control” shall mean the occurrence of any of the following events, each of
which shall be determined independently of the others:

     (i) any Person, other than a holder of at least 10% of the outstanding voting power of
the Company as of the date hereof, becomes the Beneficial Owner of a majority of the stock
of the Company entitled to vote in the election of directors of the Company;

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     (ii) Continuing Directors cease to constitute a majority of the members of the Board;

     (iii) the stockholders of the Company adopt and consummate a plan of complete or
substantial liquidation or an agreement providing for the distribution of all or
substantially all of the assets of the Company is entered into;

     (iv) the Company is a party to a merger, consolidation, other form of business
combination or a sale of all or substantially all of its assets, with an unaffiliated third
party, unless the business of the Company following consummation of such merger,
consolidation or other business combination is continued following any such transaction by a
resulting entity (which may be, but need not be, the Company) and the stockholders of the
Company immediately prior to such transaction hold, directly or indirectly, at least a
majority of the voting power of the resulting entity; provided, however,
that a merger or consolidation effected to implement a recapitalization or similar
transaction of the Company shall not constitute a Change in Control; or

     (v) there is a Change in Control of the Company of a nature that is reported in
response to item 5.01 of Current Report on Form 8-K or any similar item, schedule or form
under the Exchange Act, as in effect at the time of such change, whether or not the Company
is then subject to such reporting requirements;

provided, however, that for purposes of this Agreement a Change in Control
shall not be deemed to occur if the Person or Persons deemed to have acquired control is or
are a holder of at least 10% of the outstanding voting power of the Company as of the date
hereof.

     (g) “Charter” shall have the meaning ascribed to such term in the Recitals.

     (h) “Company” shall have the meaning ascribed to such term in the Preamble.

     (i) “Continuing Directors” shall mean the members of the Board on the date hereof,
provided, that any individual becoming a member of the Board subsequent to the date hereof
whose election or nomination for election was supported by at least a majority of the directors who
then comprised the Continuing Directors shall be considered to be a Continuing Director.

     (j) “Corporate Status” describes the status of a person who is or was a director, officer,
trustee, general partner, managing member, fiduciary, employee or agent of the Company or of any
other Enterprise which such person is or was serving at the request of the Company.

     (k) “D&O Liability Insurance” shall have the meaning ascribed to such term in Section
16.1.

     (l) “Delaware Court” shall mean the Court of Chancery of the State of Delaware.

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     (m) “DGCL” shall mean the General Corporation Law of the State of Delaware.

     (n) “Disinterested Director” shall mean a director of the Company who is not and was not a
party to the Proceeding in respect of which indemnification or advancement of Expenses is sought by
Indemnitee.

     (o) “Enterprise” shall mean the Company and any other corporation, constituent corporation
(including any constituent of a constituent) absorbed in a consolidation or merger to which the
Company is a party, limited liability company, partnership, joint venture, trust, employee benefit
plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a
director, officer, trustee, general partner, managing member, fiduciary, employee or agent.

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

     (q) “Expenses” means all reasonable costs and expenses (including, without limitation, fees
and expenses of counsel, retainers, court costs, transcript costs, fees of experts, witness fees,
travel expenses, duplicating costs, printing and binding costs, telephone charges, postage and
delivery service fees and all other disbursements or expenses) incurred in connection with
prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a
witness in, or otherwise participating in, a Proceeding. For avoidance of doubt, Expenses shall
include expenses incurred in connection with any appeal resulting from any Proceeding including,
without limitation, the premium, security for and other costs relating to any cost bond,
supersedeas bond or other appeal bond or its equivalent; provided, however, that
Expenses shall not include amounts paid in settlement by Indemnitee or the amount of judgments or
fines against Indemnitee.

     (r) “Indemnification Arrangements” shall have the meaning ascribed to such term in Section
17.2.

     (s) “Indemnitee” shall have the meaning ascribed to such term in the Preamble.

     (t) “Independent Counsel” shall mean a law firm, or a member of a law firm, that is
experienced in matters of corporate law and neither currently is, nor in the three years preceding
its selection or appointment hereunder has been, retained to represent (i) the Company or
Indemnitee in any matter material to either such party (provided, that acting as an
Independent Counsel under this Agreement or in a similar capacity with respect to any other
indemnification arrangements between the Company and its present or former directors or officers
shall not be deemed a representation of the Company or Indemnitee) or (ii) any other party to the
Proceeding giving rise to a claim for indemnification or advancement of expenses hereunder.
Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would have a conflict of
interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s
rights under this Agreement.

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     (u) The “Nominating and Governance Committee” shall mean the Nominating and Governance
Committee of the Board.

     (v) The term “Person” shall have the meaning ascribed to such term in Sections 13(d) and 14(d)
of the Exchange Act as in effect on the date hereof; provided, however, that the
term “Person” shall exclude: (i) the Company; (ii) any Subsidiaries of the Company; (iii) any
employment benefit plan of the Company or of a Subsidiary of the Company or of any corporation
owned, directly or indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company; and (iv) any trustee or other fiduciary
holding securities under an employee benefit plan of the Company or of a Subsidiary of the Company
or of a corporation owned directly or indirectly by the stockholders of the Company in
substantially the same proportions as their ownership of stock of the Company.

     (w) A “Potential Change in Control” shall be deemed to have occurred if: (i) the Company
enters into an agreement or arrangement, the consummation of which would result in the occurrence
of a Change in Control, (ii) any Person or the Company publicly announces an intention to take or
consider taking actions which, if consummated, would constitute a Change in Control or (iii) the
Board adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in
Control has occurred.

     (x) “Proceeding” shall include any threatened, pending or completed action, suit, arbitration,
alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other
actual, threatened or completed proceeding, whether brought in the right of the Company or
otherwise, and whether of a civil, criminal, administrative or investigative nature (including any
appeal therefrom), in which Indemnitee was, is or may be involved as a party or otherwise by reason
of the fact of his or her Corporate Status or by reason of any action (or failure to act) taken by
him or her or of any action (or failure to act) on his or her part while serving in any Corporate
Status (in each case, regardless of whether serving in such capacity at the time any liability or
expense is incurred for which indemnification, reimbursement or advancement of expenses can be
provided under this Agreement), or any inquiry or investigation that Indemnitee in good faith
believes might lead to the institution of any such action, suit or other proceeding.

     (y) References to “serving at the request of the Company” shall include any service as a
director, officer, employee, agent or fiduciary of the Company or any other Enterprise which
imposes duties on, or involves services by, such director, officer, employee, agent or fiduciary
with respect to an employee benefit plan, its participants or beneficiaries; and if Indemnitee
acted in good faith and in a manner Indemnitee reasonably believed to be in the best interests of
the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have
acted in a manner “not opposed to the best interests of the Company” as referred to in this
Agreement.

     (z) The term “Subsidiary”, with respect to any Person, shall mean any corporation or other
entity of which a majority of the voting power of the voting equity securities or equity interest
is owned, directly or indirectly, by such Person.

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     (aa) The phrase “to the fullest extent permitted by law” shall mean (i) to the fullest extent
permitted by the DGCL as in effect on the date of this Agreement and (ii) to the fullest extent
authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of
this Agreement that increase the extent to which a corporation may indemnify its directors and
officers.

     (bb) “Trustee” shall have the meaning ascribed to such term in Section 15.1.

ARTICLE II

SERVICES BY INDEMNITEE

     2.1 Indemnitee agrees to serve or continue to serve in his or her current capacity or
capacities as a director, officer, employee, agent or fiduciary of the Company. Indemnitee may
also serve, as the Company may reasonably request from time to time, as a director, officer,
employee, agent or fiduciary of any other corporation, partnership, limited liability company,
association, joint venture, trust, employee benefit plan or other Enterprise in which the Company
has an interest. Indemnitee and the Company each acknowledge that they have entered into this
Agreement as a means of inducing Indemnitee to serve or continue to serve the Company in such
capacities. Indemnitee may at any time and for any reason resign from such position or positions
(subject to any other contractual obligation or any obligation imposed by operation of law). The
Company shall have no obligation under this Agreement to continue Indemnitee in any such position
for any period of time and shall not be precluded by the provisions of this Agreement from removing
Indemnitee from any such position at any time.

ARTICLE III

THIRD-PARTY PROCEEDINGS

     3.1 The Company shall indemnify and hold Indemnitee harmless in accordance with the provisions
of this Section 3.1 if Indemnitee was, is, or is threatened to be made, a party to or a
participant (as a witness or otherwise) in any Proceeding, other than a Proceeding by or in the
right of the Company to procure a judgment in its favor. Pursuant to this Section 3.1,
Indemnitee shall be indemnified against all Expenses, judgments, liabilities, fines, penalties and
amounts paid in settlement (including all interest, assessments and other charges paid or payable
in connection with or in respect of such Expenses, judgments, fines, penalties and amounts paid in
settlement) actually and reasonably incurred by Indemnitee or on his or her behalf in connection
with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and
in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of
the Company and, in the case of a criminal action or Proceeding, had no reasonable cause to believe
that his or her conduct was unlawful.

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ARTICLE IV

INDEMNITY IN PROCEEDINGS BY OR IN THE RIGHT OF THE COMPANY

     4.1 The Company shall indemnify and hold Indemnitee harmless in accordance with the provisions
of this Section 4.1 if Indemnitee was, is, or is threatened to be made, a party to or a
participant (as a witness or otherwise) in any Proceeding by or in the right of the Company to
procure a judgment in its favor. Pursuant to this Section 4.1, Indemnitee shall be
indemnified against all Expenses actually and reasonably incurred by Indemnitee or on his or her
behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee
acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the
best interests of the Company. No indemnification, hold harmless or exoneration for Expenses shall
be made under this Section 4.1 in respect of any Proceeding, claim, issue or matter as to
which Indemnitee shall have been finally adjudged by a court to be liable to the Company, unless
and only to the extent that the Delaware Court (or any court hearing appeals therefrom) shall
determine upon application that, despite the adjudication of liability but in view of all the
circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification, to be
held harmless or to exoneration.

ARTICLE V

INDEMNIFICATION FOR EXPENSES OF A PARTY WHO IS WHOLLY OR PARTLY SUCCESSFUL

     5.1 Any other provisions of this Agreement notwithstanding, to the extent that Indemnitee is a
party to (or a participant in) and is successful, on the merits or otherwise, in the defense of any
Proceeding or any claim, issue or matter therein, the Company shall indemnify and hold Indemnitee
harmless against all Expenses actually and reasonably incurred by him or her or on his or her
behalf in connection therewith. If Indemnitee is successful, on the merits or otherwise, as to one
or more but less than all claims, issues or matters in any Proceeding, the Company shall indemnify
and hold Indemnitee harmless against all Expenses actually and reasonably incurred by him or her or
on his or her behalf in connection with each successfully resolved claim, issue or matter and any
claim, issue or matter related to each such successfully resolved claim, issue or matter. For
purposes of this Section 5.1 and without limitation, the termination of any claim, issue or
matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a
successful result as to such claim, issue or matter.

ARTICLE VI

INDEMNIFICATION FOR EXPENSES OF A WITNESS

     6.1 Any other provision of this Agreement notwithstanding, to the extent that Indemnitee is,
by reason of his or her Corporate Status, a witness in any Proceeding to which Indemnitee is not a
party, he or she shall be indemnified and held harmless against all Expenses actually and
reasonably incurred by him or her or on his or her behalf in connection therewith.

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ARTICLE VII

ADDITIONAL INDEMNIFICATION, HOLD HARMLESS AND EXONERATION RIGHTS

     7.1 In addition to, and without regard to any limitations on, the indemnification provided for
in Sections 3.1, 4.1 or 5.1, the Company shall indemnify and hold
Indemnitee harmless if Indemnitee is, or is threatened to be made, a party to or participant in any
Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its
favor) against all Expenses, judgments, fines, penalties and amounts paid in settlement (including
all interest, assessments and other charges paid or payable in connection with or in respect of
such Expenses, judgments, fines, penalties and amounts paid in settlement) actually and reasonably
incurred by Indemnitee or on his or her behalf in connection with such Proceeding. The only
limitation that shall exist upon the Company’s obligations pursuant to this Agreement shall be that
the Company shall not be obligated to make any payment to Indemnitee that is finally determined
(under the procedures, and subject to the presumptions, set forth in Articles XII and
XIII) to be unlawful.

ARTICLE VIII

CONTRIBUTION IN THE EVENT OF JOINT LIABILITY

     8.1 Whether or not the indemnification provided in Sections 3.1, 4.1,
5.1 and 7.1 hereof is available, if, for any reason, Indemnitee shall be required
to pay, in connection with any Proceeding in which the Company is jointly liable with Indemnitee,
all or any portion of any judgments, liabilities, fines, penalties, amounts to be paid in
settlement and/or for Expenses, the Company shall contribute to the amount actually and reasonably
incurred and paid or payable by Indemnitee, whether for judgments, liabilities, fines, penalties,
amounts paid or to be paid in settlement and/or for Expenses in proportion to the relative benefits
received by the Company and all agents of the Company, other than Indemnitee, who are jointly
liable with Indemnitee, on the one hand, and Indemnitee, on the other hand, from the transaction or
transactions from which such Proceeding arose; provided, however, that the
proportion determined on the basis of relative benefit may, to the extent necessary to conform to
law, be further adjusted by reference to the relative fault of the Company and all agents of the
Company other than Indemnitee who are jointly liable with Indemnitee, on the one hand, and
Indemnitee, on the other hand, in connection with the events that resulted in such judgments,
liabilities, fines, penalties, amounts paid or to be paid in settlement and/or for Expenses, as
well as any other equitable considerations which applicable law may require to be considered. The
relative fault of the Company and all agents of the Company, other than Indemnitee, who are jointly
liable with Indemnitee, on the one hand, and Indemnitee, on the other hand, shall be determined by
reference to, among other things, the degree to which their actions were motivated by intent to
gain personal profit or advantage, the degree to which their liability is primary or secondary and
the degree to which their conduct is active or passive. The Company shall not enter into any
settlement in respect of any Proceeding in which the Company is jointly liable with Indemnitee
unless such settlement provides for a full and final release of all claims asserted against
Indemnitee.

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     8.2 The Company shall indemnify and hold Indemnitee harmless from any claims of contribution
which may be brought by agents of the Company, other than Indemnitee, who may be jointly liable
with Indemnitee in respect of any Proceeding.

     8.3 To the fullest extent permissible under applicable law, if the indemnification and hold
harmless rights provided for in this Agreement are unavailable to Indemnitee in whole or in part
for any reason whatsoever, the Company, in lieu of indemnifying and holding Indemnitee harmless,
shall contribute to the amount incurred by Indemnitee, whether for judgments, liabilities, fines,
penalties, amounts paid or to be paid in settlement and/or for Expenses, in connection with any
Proceeding, claim, matter or issue relating to an indemnifiable event under this Agreement, in such
proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding
in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of
the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault
of the Company (and its agents, other than Indemnitee) and Indemnitee in connection with such
event(s) and/or transaction(s).

ARTICLE IX

EXCLUSIONS

     9.1 Notwithstanding any provision in this Agreement, the Company shall not be obligated under
this Agreement to make any indemnification, contribution, hold harmless or exoneration payment in
connection with any claim made against Indemnitee:

     (a) for which payment has actually been received by or on behalf of Indemnitee under any
insurance policy, contract, agreement, indemnity provision or otherwise, except with respect to any
excess beyond the amount actually received under such insurance policy, contract, agreement or
indemnity provision or otherwise;

     (b) for an accounting of profits made from the purchase and sale (or sale and purchase) by
Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or
similar provisions of state statutory law or common law; or

     (c) except as otherwise provided in Section 14.5 hereof, in connection with any
Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or
any part of such Proceeding) initiated by Indemnitee against the Company or its directors,
officers, employees or other indemnitees, unless (i) the Board authorized such Proceeding (or any
part of such Proceeding) prior to its initiation or (ii) the Company provides the indemnification,
hold harmless or exoneration payment, in its sole discretion, pursuant to the powers vested in the
Company under applicable law.

ARTICLE X

ADVANCES OF EXPENSES; DEFENSE OF CLAIMS

     10.1 Notwithstanding any provision of this Agreement to the contrary, and to the fullest
extent permitted by applicable law, the Company shall advance any Expenses incurred by Indemnitee
or on his or her behalf in connection with a Proceeding within thirty (30) days after

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receipt by the Company of a written statement requesting such advance, which statement may be
delivered to the Company at such time and from time to time as Indemnitee deems appropriate in his
or her sole discretion (whether prior to or after final disposition of any such Proceeding).
Advances shall be made without regard to Indemnitee’s ability to repay such amounts and without
regard to Indemnitee’s ultimate entitlement to be indemnified, held harmless or exonerated under
this Agreement or otherwise. Any such advances shall be made on an unsecured basis and be interest
free. Advances shall include any and all reasonable Expenses incurred pursuing a Proceeding to
enforce the right of advancement provided herein, including Expenses incurred preparing and
forwarding a statement or statements to the Company to support the advances requested. Indemnitee
shall qualify for advances, to the fullest extent permitted by applicable law, solely upon the
execution and delivery to the Company of an undertaking providing that Indemnitee shall repay any
and all advances to the extent that it is ultimately determined that Indemnitee is not entitled to
be indemnified by the Company under either of the provisions of this Agreement, the Charter, the
Bylaws, applicable law or otherwise. This Section 10.1 shall not apply to any claim made
by Indemnitee for which an indemnification, hold harmless or exoneration payment is excluded
pursuant to Section 9.1.

     10.2 Indemnitee shall reimburse the Company for all amounts advanced by the Company pursuant
to Section 10.1 if it is ultimately determined that Indemnitee is not entitled to be
indemnified by the Company for such Expenses. Notwithstanding the foregoing, if Indemnitee seeks a
judicial adjudication pursuant to Section 14.1, Indemnitee shall not be required to
reimburse the Company pursuant to this Section 10.2 until a final determination (as to
which all rights of appeal have been exhausted or lapsed) has been made.

     10.3 The Company shall be entitled to participate in any Proceeding at its own expense.
Neither party shall settle a Proceeding (in whole or in part) which would impose any Expense,
liability or limitation on the other party hereto without such party’s prior written consent, which
consent shall not be unreasonably withheld.

ARTICLE XI

PROCEDURE FOR NOTIFICATION AND APPLICATION FOR INDEMNIFICATION

     11.1 Indemnitee shall notify the Company in writing as soon as reasonably practicable (a)
after being served with any summons, citation, subpoena, complaint, indictment, information or
other document relating to any Proceeding or (b) if the Company has not been previously notified,
after receipt of written notice of any other matter with respect to which Indemnitee intends to
seek indemnification under Sections 3.1, 4.1 or 6.1 or advancement of
expenses under Section 10.1. The omission by Indemnitee to so notify the Company shall not
relieve the Company from any liability which it may have to Indemnitee (i) under this Agreement
except and only to the extent the Company can establish that such omission to notify resulted in
actual material prejudice to the Company or (ii) otherwise than under this Agreement.

     11.2 Indemnitee may thereafter deliver to the Company a written request for indemnification
pursuant to this Agreement at such time and from time to time as Indemnitee

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deems appropriate in his sole discretion, which request shall also be deemed a request for
advancement of expenses under Section 10.1. Following such a written request, Indemnitee’s
entitlement to indemnification shall be determined according to Section 12.1.

ARTICLE XII

PROCEDURE UPON APPLICATION FOR INDEMNIFICATION

     12.1 (a) Upon written request by Indemnitee for indemnification pursuant to the first
sentence of Section 11.2 hereof, a determination, if required by applicable law, with
respect to Indemnitee’s entitlement thereto shall be made in the specific case by one of the
following methods:

     (i) If Indemnitee is not a member of the Nominating and Governance Committee and the
members of such committee are all Disinterested Directors, then the Nominating and
Governance Committee shall promptly consider the request for indemnification and make a
recommendation to the Board action in respect of such request for indemnification (which may
include granting such request, denying it or any other action such committee deems to be
appropriate and in the best interests of the Company);

     (ii) If Indemnitee is a member of the Nominating and Governance Committee, then if
there are at least three members of the Board who are Disinterested Directors, such
Disinterested Directors will appoint a Board committee amongst themselves, which committee
may, but shall not be required to, include all Disinterested Directors, solely for the
purpose of considering the request for indemnification by Indemnitee and shall promptly
consider the request for indemnification and make the determination on behalf of the Board
and take such action in respect thereof (which may include granting such request, denying it
or any other action such committee deems to be appropriate and in the best interests of the
Company);

     (iii) If there are less than three Disinterested Directors, then such determination
with respect to Indemnitee’s request for indemnification shall be made by Independent
Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee.

     (b) The Company shall promptly advise Indemnitee in writing with respect to any determination
that Indemnitee is or is not entitled to indemnification, including a description of any reason or
basis for which indemnification has been denied. If it is determined that Indemnitee is entitled
to indemnification, payment to Indemnitee shall be made within ten business days after such
determination. Indemnitee shall reasonably cooperate with the person, persons or entity making
such determination with respect to Indemnitee’s entitlement to indemnification, which cooperation
shall include providing to such person, persons or entity, upon such person’s, persons’ or entity’s
reasonable advance request, any documentation or information which is (i) reasonably available to
Indemnitee and reasonably necessary to such determination and (ii) not privileged or otherwise
protected from disclosure. Any costs or Expenses (including reasonable attorneys’ fees and
disbursements) incurred by Indemnitee in so

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cooperating with the person, persons or entity making such determination shall be borne by the
Company (regardless of what the outcome of the determination as to Indemnitee’s entitlement to
indemnification is) and the Company shall indemnify and hold Indemnitee harmless therefrom.

     12.2 If the determination of entitlement to indemnification is to be made by Independent
Counsel pursuant to Section 12.1(a)(iii) hereof, the Independent Counsel shall be selected
by the Nominating and Governance Committee or, if all members thereof are not Disinterested
Directors, by an affirmative vote of a majority of the Board. The Company shall give written
notice to Indemnitee advising him or her of the identity of the Independent Counsel so selected.
Indemnitee may, within ten (10) days of its receipt of such written notice of selection, deliver to
the Company a written objection to such selection; provided, however, that such
objection may be asserted only on the ground that the Independent Counsel so selected does not meet
the requirements of “Independent Counsel” as defined in Section 1.1(t), and the objection
shall set forth with particularity the factual basis of such assertion. Absent a proper and timely
objection, the person so selected shall act as Independent Counsel. If a written objection is made
and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless
and until such objection is withdrawn or a court of competent jurisdiction has determined that such
objection is without merit. If, within twenty (20) days after submission by Indemnitee of a
written request for indemnification pursuant to Section 11.2 hereof, no Independent Counsel
shall have been selected and not objected to, either the Company or Indemnitee may petition the
Delaware Court for resolution of any objection which shall have been made by Indemnitee to the
Company’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a
person selected by the Delaware Court or by such other person as the Delaware Court shall
designate, and the person with respect to whom all objections are so resolved or the person so
appointed shall act as Independent Counsel under Section 12.1 hereof. Upon the due
commencement of any judicial proceeding pursuant to Section 14.1, Independent Counsel shall
be discharged and relieved of any further responsibility in such capacity (subject to the
applicable standards of professional conduct then prevailing).

     12.3 The Company shall pay any and all reasonable fees and expenses of Independent Counsel
incurred by such Independent Counsel in connection with acting pursuant to Section 12.1
hereof, and the Company shall pay all reasonable fees and expenses incident to the procedures of
Section 12.2, regardless of the manner in which such Independent Counsel was selected or
appointed.

ARTICLE XIII

PRESUMPTIONS AND EFFECT OF CERTAIN PROCEEDINGS

     13.1 In making a determination with respect to entitlement to indemnification hereunder, the
person, persons or entity making such determination shall presume that Indemnitee is entitled to
indemnification under this Agreement if Indemnitee has submitted a request for indemnification in
accordance with Section 11.2 of this Agreement, and the Company shall have the burdens of
coming forward with evidence and of persuasion to overcome that presumption. Neither the failure
of the Company to have made a determination prior to the commencement of any action pursuant to
this Agreement as to whether indemnification is proper under the circumstances nor an actual
determination made pursuant to Section 12.1 hereof that

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     Indemnitee has not met the applicable standard of conduct shall be a defense to the action or
create a presumption that Indemnitee has not met the applicable standard of conduct.

     13.2 If the person, persons or entity empowered or selected under Section 12.1 to
determine whether Indemnitee is entitled to indemnification shall not have made a determination
within sixty (60) days after receipt by the Company of the request therefor, the requisite
determination of entitlement to indemnification shall be deemed to have been made and Indemnitee
shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material
fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially
misleading, in connection with the request for indemnification, or (ii) a prohibition of such
indemnification under applicable law; provided, however, that such 60-day period
may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person,
persons or entity making the determination with respect to entitlement to indemnification in good
faith requires such additional time to obtain and evaluate documentation and/or information
relating thereto.

     13.3 The termination of any Proceeding or of any claim, issue or matter therein, by judgment,
order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not
(except as otherwise expressly provided in this Agreement) of itself adversely affect the right of
Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and
in a manner which he reasonably believed to be in or not opposed to the best interests of the
Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to
believe that his conduct was unlawful.

     13.4 Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on
the records or books of account of the Enterprise, including financial statements, or on
information supplied to Indemnitee by the officers of the Enterprise in the course of their duties,
or on the advice of legal counsel for the Enterprise or on information or records given or reports
made to the Enterprise by an independent certified public accountant or by an appraiser or other
expert selected by the Enterprise. The provisions of this Section 13.4 shall not be deemed
to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed or
found to have met the applicable standard of conduct set forth in this Agreement. In addition, the
knowledge and/or actions, or failure to act, of any other director, other officer, trustee,
partner, managing member, fiduciary, agent or employee of the Enterprise shall not be imputed to
Indemnitee for purposes of determining the right to indemnification under this Agreement. Whether
or not the foregoing provisions of this Section 13.4 are satisfied, it shall in any event
be presumed that Indemnitee has at all times acted in good faith and in a manner he or she
reasonably believed to be in or not opposed to the best interests of the Company. Anyone seeking
to overcome this presumption shall have the burden of proof and the burden of persuasion by clear
and convincing evidence.

ARTICLE XIV

REMEDIES OF INDEMNITEE

     14.1 In the event that (i) a determination is made pursuant to Section 12.1 of this
Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii)

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advancement of Expenses, to the fullest extent permitted by applicable law, is not timely made
pursuant to Section 10.1 of this Agreement, (iii) no determination of entitlement to
indemnification shall have been made pursuant to Section 12.1 of this Agreement within
sixty (60) days after receipt by the Company of the request for indemnification (subject to any
extension as provided in Section 13.2), (iv) payment of indemnification is not made
pursuant to this Agreement within ten (10) business days after receipt by the Company of a written
request therefor, (v) a contribution payment is not made in a timely manner pursuant to Article
VIII of this Agreement, (vi) payment of indemnification pursuant to this Agreement is not made
within ten (10) business days after a determination has been made that Indemnitee is entitled to
indemnification or such determination is deemed to have been made pursuant to Section 13.2,
or (vii) payment to Indemnitee pursuant to any hold harmless or exoneration rights under this
Agreement or otherwise is not made within ten (10) business days after receipt by the Company of a
written request therefor, Indemnitee shall be entitled to an adjudication by the Delaware Court to
such indemnification, hold harmless, exoneration, contribution or advancement rights.

     14.2 In the event that a determination shall have been made pursuant to Section 12.1
of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding
commenced pursuant to this Article XIV shall be conducted in all respects as a de novo
trial on the merits and Indemnitee shall not be prejudiced by reason of the adverse determination
under Section 12.1. In any judicial proceeding commenced pursuant to this Article
XIV, Indemnitee shall be presumed to be entitled to be indemnified, held harmless, exonerated
and to receive advances of Expenses under this Agreement and the Company shall have the burden of
proving Indemnitee is not entitled to be indemnified, held harmless, exonerated and to receive
advances of Expenses, as the case may be, and the Company may not refer to or introduce into
evidence any determination pursuant to Section 12.1 of this Agreement adverse to Indemnitee
for any purpose.

     14.3 If a determination shall have been made pursuant to Section 12.1 of this
Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such
determination in any judicial proceeding commenced pursuant to this Article XIV, absent (i)
a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to
make Indemnitee’s statement not materially misleading, in connection with the request for
indemnification, or (ii) a prohibition of such indemnification under applicable law.

     14.4 The Company shall be precluded from asserting in any judicial proceeding commenced
pursuant to this Article XIV that the procedures and presumptions of this Agreement are not
valid, binding and enforceable and shall stipulate in any such court that the Company is bound by
all the provisions of this Agreement.

     14.5 Unless and until a determination shall have been made pursuant to Section 12.1 of
this Agreement that Indemnitee is not entitled to indemnification, the Company shall indemnify and
hold Indemnitee harmless to the fullest extent permitted by law against all Expenses and, if
requested by Indemnitee, shall (within ten (10) business days after the Company’s receipt of such
written request) advance to Indemnitee, to the fullest extent permitted by applicable law, such
Expenses which are incurred by Indemnitee in connection with any judicial proceeding brought by
Indemnitee (i) to enforce his rights under, or to recover damages for breach of, this Agreement or
any other indemnification, hold harmless, exoneration, advancement or

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contribution arrangement or provision of the Charter or the Bylaws now or hereafter in effect;
or (ii) for recovery or advances under any insurance policy maintained by any person for the
benefit of Indemnitee, regardless of whether Indemnitee ultimately is determined to be entitled to
such indemnification, advance, contribution or insurance recovery, as the case may be.

ARTICLE XV

ESTABLISHMENT OF TRUST

     15.1 In the event of a Potential Change in Control, the Company shall, upon written request by
Indemnitee, set up a “Trust” for the benefit of Indemnitee and from time to time upon written
request of Indemnitee shall fund such Trust in an amount sufficient to satisfy any and all Expenses
reasonably anticipated at the time of each such request to be incurred in connection with
investigating, preparing for, participating in or defending any Proceedings, and any and all
judgments, fines, penalties and amounts paid in settlement (including all interest, assessments and
other charges paid or payable in connection with or in respect of such judgments, fines penalties
and amounts paid in settlement) in connection with any and all Proceedings from time to time
actually paid or claimed, reasonably anticipated or proposed to be paid. The trustee of the Trust
(the “Trustee”) shall be a bank or trust company or other individual or entity chosen by Indemnitee
and reasonably acceptable to the Company. Nothing in this Section 15.1 shall relieve the
Company of any of its obligations under this Agreement. The amount or amounts to be deposited in
the Trust pursuant to the foregoing funding obligation shall be determined by mutual agreement of
Indemnitee and the Company or, if the Company and Indemnitee are unable to reach such an agreement,
by Independent Counsel selected in accordance with Section 12.2 of this Agreement. The
terms of the Trust shall provide that, except upon the consent of both Indemnitee and the Company,
upon a Change in Control: (a) the Trust shall not be revoked or the principal thereof invaded,
without the written consent of Indemnitee; (b) the Trustee shall advance, to the fullest extent
permitted by applicable law, within two (2) business days of a request by Indemnitee and upon the
execution and delivery to the Company of an undertaking providing that Indemnitee shall repay any
advance to the extent that it is ultimately determined that Indemnitee is not entitled to be
indemnified, held harmless or exonerated by the Company; (c) the Trust shall continue to be funded
by the Company in accordance with the funding obligations set forth above; (d) the Trustee shall
promptly pay to Indemnitee all amounts for which Indemnitee shall be entitled to indemnification,
or to be held harmless or exonerated pursuant to this Agreement or otherwise; and (e) all
unexpended funds in such Trust shall revert to the Company upon mutual agreement by Indemnitee and
the Company or, if Indemnitee and the Company are unable to reach such an agreement, upon a final
determination by an Independent Counsel selected in accordance with Section 12.2 of this
Agreement that Indemnitee has been fully indemnified, held harmless and exonerated under the terms
of this Agreement. The Trust shall be governed by Delaware law (without regard to its conflicts of
laws rules) and the Trustee shall consent to the exclusive jurisdiction of the Delaware Court in
accordance with Section 23.1 of this Agreement.

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ARTICLE XVI

DIRECTORS’ AND OFFICERS’ LIABILITY INSURANCE

     16.1 The Company shall use commercially reasonable efforts to obtain and maintain a policy or
policies of insurance (the “D&O Liability Insurance”) at commercially reasonable rates with
reputable insurance companies providing liability insurance for directors and officers of the
Company in their capacities as such (and for any capacity in which any director or officer of the
Company serves any other Enterprise at the request of the Company), in respect of acts or omissions
occurring while serving in such capacity.

     16.2 To the extent D&O Liability Insurance is obtained and maintained by the Company,
Indemnitee shall be covered by the Company’s D&O Liability Insurance policy or policies as in
effect from time to time in accordance with the applicable terms to the maximum extent of the
coverage available under such policy or policies. The Company shall, promptly after receiving
notice of a Proceeding as to which Indemnitee is a party or a participant (as a witness or
otherwise), give notice of such Proceeding to the insurers under the Company’s D&O Liability
Insurance policies in accordance with the procedures set forth in the respective policies. The
Company shall thereafter take all necessary or desirable actions to cause such insurers to pay, on
behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the
terms of such policies. The failure or refusal of any such insurer to pay any such amount shall
not affect or impair the obligations of the Company under this Agreement.

     16.3 Upon request by Indemnitee, the Company shall provide to Indemnitee copies of the D&O
Liability Insurance policies as in effect from time to time. The Company shall promptly notify
Indemnitee of any material changes in such insurance coverage.

ARTICLE XVII

NON-EXCLUSIVITY; SURVIVAL OF RIGHTS; [INSURANCE;] SUBROGATION

     17.1 The rights of Indemnitee as provided by this Agreement shall not be deemed exclusive of
any other rights to which Indemnitee may at any time be entitled under applicable law, the Charter,
the Bylaws, any agreement, a vote of stockholders, a resolution of directors or otherwise. No
amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or
restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by
Indemnitee in his or her Corporate Status prior to such amendment, alteration or repeal. To the
extent that a change in applicable law, whether by statute or judicial decision, permits greater
indemnification, hold harmless or exoneration rights or advancement of Expenses than would be
afforded currently under the Charter, the Bylaws or this Agreement, it is the intent of the parties
hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such
change. No right or remedy herein conferred is intended to be exclusive of any other right or
remedy, and every other right and remedy shall be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or

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otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other right or remedy.

     17.2 The DGCL permits the Company to purchase and maintain insurance or furnish similar
protection or make other arrangements including, but not limited to, providing a [trust fund,]
letter of credit or surety bond (“Indemnification Arrangements”) on behalf of Indemnitee against
any liability asserted against him or her or incurred by or on his or her behalf or in such
capacity as a director, officer, employee or agent of the Company, or arising out of his or her
status as such, whether or not the Company would have the power to indemnify him against such
liability under the provisions of this Agreement or under the DGCL, as it may then be in effect.
The purchase, establishment, and maintenance of any such Indemnification Arrangement shall not in
any way limit or affect the rights and obligations of the Company or of Indemnitee under this
Agreement except as expressly provided herein, and the execution and delivery of this Agreement by
the Company and Indemnitee shall not in any way limit or affect the rights and obligations of the
Company or the other party or parties thereto under any such Indemnification Arrangement.

     17.3 In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers
required and take all action necessary to secure such rights, including execution of such documents
as are necessary to enable the Company to bring suit to enforce such rights.

     17.4 The Company’s obligation to indemnify, hold harmless, exonerate or advance Expenses
hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer,
trustee, partner, managing member, fiduciary, employee or agent of any other Enterprise shall be
reduced by any amount Indemnitee has actually received as indemnification, hold harmless or
exoneration payments or advancement of expenses from such Enterprise.

ARTICLE XVIII

DURATION OF AGREEMENT

     18.1 All agreements and obligations of the Company contained herein shall continue during the
period Indemnitee serves as a director or officer of the Company or as a director, officer,
trustee, partner, managing member, fiduciary, employee or agent of any other corporation,
partnership, joint venture, trust, employee benefit plan or other Enterprise which Indemnitee
serves at the request of the Company and shall continue thereafter so long as Indemnitee shall be
subject to any possible Proceeding (including any rights of appeal thereto and any Proceeding
commenced by Indemnitee pursuant to Article XIV of this Agreement) by reason of his
Corporate Status, whether or not he or she is acting in any such capacity at the time any liability
or expense is incurred for which indemnification can be provided under this Agreement.

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ARTICLE XIX

SEVERABILITY

     19.1 If any provision or provisions of this Agreement shall be held to be invalid, illegal or
unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the
remaining provisions of this Agreement (including, without limitation, each portion of any Section,
paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal
or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be
affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law;
(b) such provision or provisions shall be deemed reformed to the extent necessary to conform to
applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the
fullest extent possible, the provisions of this Agreement (including, without limitation, each
portion of any Section, paragraph or sentence of this Agreement containing any such provision held
to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable)
shall be construed so as to give effect to the intent manifested thereby.

ARTICLE XX

ENFORCEMENT AND BINDING EFFECT

     20.1 The Company expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on it hereby in order to induce Indemnitee to serve or to continue
to serve as a director, officer or key employee of the Company, and the Company acknowledges that
Indemnitee is relying upon this Agreement in serving as a director, officer or key employee of the
Company.

     20.2 Without limiting any of the rights of Indemnitee under the Charter or Bylaws of the
Company, as they may be amended from time to time, this Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof and supersedes all prior
agreements and understandings, oral, written and implied, between the parties hereto with respect
to the subject matter hereof.

     20.3 The indemnification, hold harmless, exoneration and advancement of expenses rights
provided by or granted pursuant to this Agreement shall be binding upon and be enforceable by the
parties hereto and their respective successors and assigns (including any direct or indirect
successor by purchase, merger, consolidation or otherwise to all or substantially all of the
business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a
director, officer, employee or agent of the Company or of any other Enterprise at the Company’s
request, and shall inure to the benefit of Indemnitee and his or her spouse, assigns, heirs,
devisees, executors and administrators and other legal representatives.

     20.4 The Company shall require and cause any successor (whether direct or indirect by
purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of
the business and/or assets of the Company, by written agreement in form and substance satisfactory
to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and

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to the same extent that the Company would be required to perform if no such succession had
taken place.

     20.5 The Company and Indemnitee agree herein that a monetary remedy for breach of this
Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and further
agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto
agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific
performance hereof, without any necessity of showing actual damage or irreparable harm and that by
seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from
seeking or obtaining any other relief to which he may be entitled. The Company and Indemnitee
further agree that Indemnitee shall be entitled to such specific performance and injunctive relief,
including temporary restraining orders, preliminary injunctions and permanent injunctions, without
the necessity of posting bonds or other undertaking in connection therewith. The Company
acknowledges that in the absence of a waiver, a bond or undertaking may be required of Indemnitee
by the Court, and the Company hereby waives any such requirement of such a bond or undertaking.

ARTICLE XXI

MODIFICATION AND WAIVER

     21.1 No supplement, modification or amendment of this Agreement shall be binding unless
executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provisions of this Agreement nor shall
any waiver constitute a continuing waiver.

ARTICLE XXII

NOTICES

     22.1 All notices, requests, demands and other communications hereunder shall be in writing and
shall be delivered (i) in person, (ii) by Federal Express or other nationally recognized overnight
carrier service which issues confirmation of delivery or (iii) by certified or registered mail with
postage prepaid. Any such notice shall be deemed to be duly given (i) when delivered, if delivered
personally or by Federal Express or other nationally recognized overnight carrier service or (ii)
on the third (3rd) business day after the date on which such notice is mailed by certified or
registered mail with postage prepaid:

     (a) if to Indemnitee, at the address indicated on the signature page of this Agreement, or
such other address as Indemnitee shall provide in writing to the Company in accordance with the
terms hereof.

     (b) if to the Company, to:

American Commercial Lines Inc.

1701 E. Market Street

Jeffersonville, Indiana 47130

Attention: General Counsel

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     with a copy (which shall not constitute notice) to:

Hogan & Hartson LLP

875 Third Avenue

New York, NY 10022

Attention: Ms. Amy Freed

     or to any other address as may have been furnished to Indemnitee in writing by the Company.

ARTICLE XXIII

APPLICABLE LAW AND CONSENT TO JURISDICTION

     23.1 This Agreement and the legal relations among the parties hereto shall be governed by, and
construed and enforced in accordance with, the laws of the State of Delaware, without regard to its
conflict of laws rules. The Company and Indemnitee hereby irrevocably and unconditionally: (a)
agree that any action or proceeding arising out of or in connection with this Agreement shall be
brought only in the Delaware Court and not in any other state or federal court in the United States
of America or any court in any other country; (b) consent to submit to the exclusive jurisdiction
of the Delaware Court for purposes of any action or proceeding arising out of or in connection with
this Agreement; (c) appoint irrevocably, to the extent such party is not a resident of the State of
Delaware, CT Corporation, as its agent in the State of Delaware or any other such agent as
designated by the Company and reasonably acceptable to Indemnitee as such party’s agent for
acceptance of legal process in connection with any such action or proceeding against such party
with the same legal force and validity as if served upon such party personally within the State of
Delaware; (d) waive any objection to the laying of venue of any such action or proceeding in the
Delaware Court; and (e) waive, and agree not to plead or to make, any claim that any such action or
proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum, or
is subject (in whole or in part) to a jury trial.

ARTICLE XXIV

IDENTICAL COUNTERPARTS

     24.1 This Agreement may be executed in one or more counterparts, each of which shall for all
purposes be deemed to be an original but all of which together shall constitute one and the same
Agreement. Only one such counterpart signed by the party against whom enforceability is sought
needs to be produced to evidence the existence of this Agreement.

ARTICLE XXV

MISCELLANEOUS

     25.1 Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun
where appropriate. The headings of the paragraphs of this Agreement are inserted for

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convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

     [Remainder of Page Intentionally Left Blank — Signature Page Follows]

-21-

 

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the parties hereto
on the date and year first above written.

	 	 	 	 	 
	 	AMERICAN COMMERCIAL LINES INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	INDEMNITEE

 	 
	 	  	 	 
	 	 	Name:  	 	 
	 	 	 	 
	 

[SIGNATURE PAGE TO AMERICAN COMMERCIAL LINES INC.

INDEMNIFICATION AGREEMENT]exv10w15

Exhibit 10.15

MIDWEST BANC HOLDINGS, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

     THIS AGREEMENT made as of the ___ day of                                          (the “Effective Date”), by and
between Midwest Banc Holdings, Inc., a Delaware corporation (the “Company”), and the undersigned
executive (the “Executive”).

INTRODUCTION

     The Company has agreed to provide supplemental retirement benefits to certain executives and
to enter into individual agreements with the executives to set forth the terms thereof. Such
agreements are intended to encourage the executive to remain an employee of the Company or one or
more of its Subsidiaries. Except for the death benefit payable to the Executive in the event such
Executive dies while in the active service of the Company, the Company and the Subsidiaries will
pay the benefits from their general assets. These agreements are intended to constitute an
unfunded plan maintained primarily to provide deferred compensation to a select group of management
or highly compensated employees within the meaning of Sections 201(2), 301(3) and 401(a)(1) of
ERISA and regulations issued thereunder.

     In furtherance of the foregoing, the Company and Executive agree as follows:

AGREEMENT

ARTICLE 1

DEFINITIONS

     Whenever used in this Agreement, the following words and phrases shall have the meanings
specified:

     1.1 “Accrual Rate” means an interest rate equal to four (4) percent per annum.

     1.2 “Agreement” means this Midwest Banc Holdings, Inc. Supplemental Executive
Retirement Agreement entered into between the Company and the Executive.

     1.3 “Benefit Percentage” means ___ percent.

     1.4 “Change in Control” means a change in the ownership or effective control of the
Company, or in the ownership of a substantial portion of the assets of the Company as provided in
Section 409A(a)(2)(A)(v) of the Code and the final Treasury regulations thereunder. In accordance
with the final Treasury regulations, “Change in Control” means any one of the events described
below:

          (a) Change in Ownership. A change in the ownership of the Company occurs on the date
that any person or persons acting as a group acquires ownership of stock of the Company
that, together with stock held by such person or group, constitutes more than fifty (50)
percent of the total fair market value or total voting power of the stock of such Company.
If a person or group is considered to own more than fifty (50)

 Page 1

 

percent of the total fair market value or total combined voting power of the stock of
the Company, the acquisition of additional stock by the same person or persons is not
considered to cause a change in the ownership of the Company (or to cause a change in the
“effective control of the Company” within the meaning of paragraph (c)).

          (b) Change in Effective Control. A change in the effective control of the Company
occurs on the date that a majority of the Company’s board of directors is replaced during
any 12-month period by directors whose appointment or election is not endorsed by a majority
of the members of the Company’s board of directors prior to the date of the appointment or
election.

          (c) Change in Ownership of a Substantial Portion of the Company’s Assets. A change in
the ownership of a substantial portion of the Company’s assets occurs on the date that any
person or group acquires (or has acquired during the 12-month period ending on the date of
the most recent acquisition by such person or persons) assets from the Company that have a
total gross fair market value equal to or more than fifty (50) percent of the total gross
fair market value of all of the assets of the Company immediately prior to such acquisition
or acquisitions.

     1.5 “Code” means the Internal Revenue Code of 1986, as amended from time to time, or
any successor legislation thereto.

     1.6 “Company” means Midwest Banc Holdings, Inc., a Delaware corporation, as well as
any successor to such entity as provided in Section 12.3 hereof.

     1.7 “Compensation Committee” means the Compensation Committee of the Company’s board
of directors.

     1.8 “Disability” means the Executive is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than
twelve (12) months. Determination of Disability may be made by either the Social Security
Administration or by the claims administrator of a disability insurance program covering employees
of the Company provided that the definition of “disability” applied under such insurance program
complies with the requirements of the preceding sentence. Upon the request of the Company, the
Executive must submit proof to the Company of the Social Security Administration’s or the claims
administrator’s determination.

     1.9 “Early Retirement Age” means the Executive’s 60th birthday.

     1.10 “Employer” means the entity from among the Company and the Subsidiaries that is,
or was, the primary employer of the Executive.

     1.11 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     1.12 “Executive” means the individual named on this Agreement and on whose behalf the
Agreement is entered.

 Page 2

 

     1.13 “Final Salary” means the highest annual base salary rate paid by the Company and
any Subsidiary to the Executive during the three (3) years ending on the date of Separation from
Service, or if earlier, the date the Executive attains Normal Retirement Age.

     1.14 “Good Reason” means Separation from Service that satisfies the following
conditions:

	 	(a)	 	A Separation from Service must occur during the two year period following the
initial existence of one of the following conditions arising without the consent of the
Executive.

	 	(1)	 	A material diminution in the Executive’s base salary and/or
annual bonus/incentive opportunity.
	 
	 	(2)	 	A material diminution in the Executive’s authority, duties, or
responsibilities.
	 
	 	(3)	 	A material change in the geographic location at which the
Executive must perform the services.
	 
	 	(4)	 	Any other action or inaction that constitutes a material breach
by the Company of the agreement under which the Executive provides services.

	 	(b)	 	The Executive must notify the Company of the existence of the condition
described in paragraph (a) within ninety (90) days of the initial existence of the
condition, upon the notice of which the Company has a period of sixty (60) days during
which to remedy the condition.

     1.15 “Involuntary Termination of Employment” means Separation from Service (a) by the
Executive for Good Reason or (b) by the Company for reasons other than Termination for Cause.

     1.16 “Normal Retirement Age” means the Executive’s 65th birthday.

     1.17 “Normal Retirement Date” means the later of the Normal Retirement Age or
Separation from Service.

     1.18 “Plan Year” means a twelve-month period commencing on January 1 and ending on
December 31 of each year. The initial Plan Year shall be a short Plan Year which shall commence on
the Effective Date.

     1.19 “Separation from Service” means termination of the Executive’s employment with
the Company for reasons other than death. Whether a Separation from Service has occurred is
determined based on whether the facts and circumstances indicate that the Company and Executive
reasonably anticipated that no further services would be performed after a certain date or that the
level of bona fide services the Executive would perform after such date (whether as an employee or
as an independent contractor) would permanently decrease to no more than forty-

 Page 3

 

nine (49%) of the average level of bona fide services performed (whether as an employee or an
independent contractor) over the immediately preceding twelve (12) month period (or the full period
of services to the Company if the Executive has been providing services to the Company less than
twelve (12) months). For periods during which an Executive is on a paid bona fide leave of absence
(as defined in Treasury Regulation Section 1.409A-1(h)(1)(i)) and has not otherwise terminated
employment, the Executive is treated as providing bona fide services at a level equal to the level
of services that the Executive would have been required to perform to receive the compensation paid
with respect to such leave of absence. Periods during which an Executive is on an unpaid bona fide
leave of absence (as defined in Treasury Regulation Section 1.409A-1(h)(1)(i)) and has not
otherwise terminated employment are disregarded for purposes of this definition (including for
purposes of determining the applicable twelve (12) month period).

     1.20 “Specified Employee” means an employee who, as of the date of the employee’s
Separation from Service, is a key employee of the Company. Notwithstanding the foregoing, an
employee is a Specified Employee only if the stock of the Company or any entity with whom the
Company would be considered a single employer under Section 414(b) or Section 414(c) of the Code is
publicly traded on an established securities market or otherwise. For purposes of this Agreement,
an employee is a key employee if the employee meets the requirements of Section 416(i)(1)(A)(i),
(ii), or (iii) of the Code (applied in accordance with the regulations thereunder and disregarding
Section 416(i)(5)) at any time during the twelve (12) month period ending on December 31 (the
“identification period”). For purposes of identifying a Specified Employee, the definition of
compensation under Treasury Regulation Section 1.415(c)-2(a) is used, applied as if the Company
were not using any safe harbor provided in Treasury Regulation Section 1.415(c)-2(d), were not
using any of the special timing rules provided in Treasury Regulation Section 1.415(c)-2(e), and
were not using any of the special rules provided in Treasury Regulation Section 1.415(c)-2(g). If
the employee is a key employee during an identification period, the employee is treated as a key
employee for purposes of this Agreement during the twelve (12) month period that begins on the
first day of April following the close of the identification period.

     1.21 “Subsidiary” means any direct or indirect subsidiary of the Company. An entity
employing an Executive will not be treated as a Subsidiary for any period of time it is not a
direct or indirect subsidiary of the Company

     1.22 “Termination for Cause” means Separation from Service for any one or more of the
following reasons, as determined by the Committee, in the exercise of good faith and reasonable
judgment:

     (a) In the case where there is no employment, change in control or similar agreement in
effect between the Executive and the Employer at the time of Separation from Service, or
where there is such an agreement but the agreement does not define “termination for cause”
(or similar words) or a “cause” termination would not be permitted under such agreement at
that time because other conditions were not satisfied, the termination of an employment or
consulting arrangement due to the willful and continued failure or refusal by the Executive
to substantially perform assigned duties (other than any such failure resulting from the
Executive Disability), the Executive’s

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dishonesty or theft, the Executive’s violation of any obligations or duties under any
employee agreement, or the Executive’s gross negligence or willful misconduct; or

     (b) In the case where there is an employment, change in control or similar agreement in
effect between the Executive and the Employer at the time of Separation from Service that
defines “termination for cause” (or similar words) and the occurrence of an event for which
resignation for “termination for cause” would be permitted under such agreement at that
time.

          No act or failure to act on an Executive’s part shall be considered willful unless done, or
omitted to be done, by the Executive not in good faith and without reasonable belief that his
action or omission was in the best interest of the Company.

     1.23 “Year of Service” means a twelve-month period commencing on the Executive’s most
recent date of hire by the Company or a Subsidiary and on each anniversary thereof.

ARTICLE 2

LIFETIME BENEFITS

     2.1 Normal Retirement Benefit. Subject to Article 6, upon Separation from Service on
or after the Executive’s Normal Retirement Age, the Employer shall pay to the Executive the benefit
described in this Section 2.1 in lieu of any other benefit under this Agreement.

          2.1.1 Amount of Benefit. The annual benefit under this Section 2.1 is an amount equal
to the Executive’s Final Salary multiplied by the Benefit Percentage.

          2.1.2 Payment of Benefit. The Employer shall pay the annual benefit to the Executive
in twelve (12) equal monthly installments payable on the first day of each month commencing with
the month following the Executive’s Separation from Service. Notwithstanding the foregoing, the
first payment may be made within 45 days following the Executive’s Separation from Service. The
annual benefit shall be paid to the Executive for fifteen (15) years.

     2.2 Early Retirement Benefit. Subject to Article 6, upon Separation from Service (a)
on or after the Early Retirement Age but before the Normal Retirement Age for reasons other than
Disability and (b) after completing five continuous years of employment with the Employer or any
Subsidiary after the Effective Date, the Employer shall pay to the Executive the benefit described
in this Section 2.2 in lieu of any other benefit under this Agreement.

          2.2.1 Amount of Benefit. The annual benefit under this Section 2.2 is an amount equal
to a percentage of the annual benefit that would be payable as described in Section 2.1.1 above,
computed as follows:

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	Age at Termination	 	Percentage of
	of Employment	 	Section 2.1.1 Benefit
	60 years
	 	 	50	%
	61 years
	 	 	60	%
	62 years
	 	 	70	%
	63 years
	 	 	80	%
	64 years
	 	 	90	%
	65 years
	 	 	100	%

          2.2.2 Payment of Benefit. The Employer shall pay the annual benefit to the Executive
in twelve (12) equal monthly installments payable on the first day of each month commencing with
the month following the Executive’s Separation from Service. Notwithstanding the foregoing, the
first payment may be made within 45 days following the Executive’s Separation from Service. The
annual benefit shall be paid to the Executive for fifteen (15) years.

     2.3 Early Termination Benefit. Subject to Article 6, upon Separation from Service
before the Early Retirement Age, for reasons other than Disability, the Employer shall pay to the
Executive the benefit described in this Section 2.3 in lieu of any other benefit under this
Agreement.

          2.3.1 Amount of Benefit. If the Executive has completed ten (10) or more Years of
Service and five (5) continuous years of employment with the Employer or any Subsidiary after the
Effective Date, the benefit under this Section 2.3 shall be the Accrued Benefit Balance set forth
in Schedule A. Upon a Separation from Service, interest shall accrue on the unpaid balance at four
(4) percent per annum, compounded annually, until fully paid. If the Executive has completed less
than ten (10) Years of Service or less than five (5) continuous years of employment with the
Employer or any Subsidiary after the Effective Date, the Employer shall pay no benefit under this
Section 2.3.

          2.3.2 Payment of Benefit. The Employer shall pay the annual benefit to the Executive
in twelve (12) equal monthly installments payable on the first day of each month commencing with
the month following the Executive’s Normal Retirement Date. The annual benefit shall be paid to
the Executive for fifteen (15) years.

     2.4 Disability Benefit. Subject to Article 6, if the Executive has a Separation from
Service due to Disability prior to Normal Retirement Age, the Employer shall pay to the Executive
the benefit described in this Section 2.4 in lieu of any other benefit under this Agreement.

          2.4.1 Amount of Benefit. The benefit under this Section 2.4 is an amount equal to the
Executive’s Normal Retirement Benefit, calculated under Section 2.1 above, as if the Executive
remained employed, with no increase in annual base salary through his Normal Retirement Age.

          2.4.2 Payment of Benefit. The Employer shall pay the annual benefit amount to the
Executive in twelve (12) equal monthly installments payable on the first day of each month

 Page 6

 

commencing with the month following the Executive’s Normal Retirement Date. The annual
benefit shall be paid to the Executive for fifteen (15) years.

     2.5 Change of Control Benefit. Subject to Article 6, in the event of the Executive’s
Involuntary Termination of Employment for reasons other than Disability within two (2) years
following a Change of Control, but prior to Normal Retirement Age, the Employer shall pay to the
Executive the benefit described in this Section 2.5 in lieu of any other benefit under this
Agreement.

          2.5.1 Amount of Benefit. The benefit under this Section 2.5 is ___ percent of the
benefit projected to be earned had the Executive remained employed through Normal Retirement Age
with an annual positive four (4) percent salary adjustment effective on each anniversary of the
Involuntary Termination of Employment until the Executive reached his Normal Retirement Age. In
the event the Executive has attained the Early Retirement Age and is entitled to the early
retirement benefit under Section 2.2, the benefit payable hereunder shall be the greater of the
foregoing or that amount provided in Section 2.2.1. For purposes of the foregoing sentence, a
discount rate equal to the Accrual Rate is to be used to compare the benefit under this Section
2.5.1 with the benefit under Section 2.2.1.

          2.5.2 Payment of Benefit. The Employer shall pay the benefit amount to the Executive
in a lump sum payment within 74 days of the date of the Executive’s Involuntary Termination of
Employment. The benefit shall be equal to the lump sum present value of the payments described in
Sections 2.1.2, 2.2.2, 2.3.2 or 2.4.2 above, whichever is applicable, where such present value is
to be determined using a discount rate equal to the applicable federal rate in effect on the date
of the Change in Control for purposes of determining present value of payments subject to the
non-deductibility and excise tax provisions of Section 280G and Section 4999 of the Code,
respectively, and regulations thereunder.

          2.5.3 Monthly Installment Payments. Notwithstanding Section 2.5.2, an Executive may
elect that, in the event of a Change in Control, the Employer shall pay the benefit to the
Executive in twelve (12) equal monthly installments payable on the first day of each month
commencing with the month following the Executive’s Normal Retirement Date. The annual benefit
shall be paid to the Executive for fifteen (15) years. The election to receive installment
payments must be made by the Executive no later than the date this Agreement is signed.
Notwithstanding the foregoing, the Executive may change his or her election provided the
requirements of Section 2.8 are satisfied.

     2.6 Restriction on Timing of Distribution. Notwithstanding any provision of this
Agreement to the contrary, if the Executive is considered a Specified Employee, the provisions of
this Section 2.6 shall govern all distributions hereunder. If benefit distributions which would
otherwise be made to the Executive due to Separation from Service are limited because the Executive
is a Specified Employee, then such distributions shall not be made during the first six (6) months
following Separation from Service. Rather, any distribution which would otherwise be paid to the
Executive during such period shall be accumulated (without the adjustment for the time value of
money) and paid to the Executive in a lump sum on the first day of the seventh month following
Separation from Service. All subsequent distributions shall be paid in the manner specified.

 Page 7

 

     2.7 Limited Cashouts. Notwithstanding anything in this Article 2 to the contrary, the
Company may make a lump sum distribution of amounts deferred hereunder provided:

	 	(a)	 	the payment results in the termination of the Executive’s interest under the
Agreement and all other agreements, methods, programs, or other arrangements that are
required to be aggregated pursuant to Treasury Regulation Section 1.409A-1(c)(2); and
	 
	 	(b)	 	the payment is not greater than the applicable dollar amount under Section
402(g)(1)(B) of the Code.

     2.8 Change in Form or Timing of Distributions. For distribution of benefits under this
Article 2, the Executive and the Company may, subject to the terms of Section 9.1, amend the
Agreement to delay the timing or change the form of distributions. Any such amendment:

 

	 	(a)	 	may not accelerate the time or schedule of any distribution, except as provided
in section 409A of the Code and the regulations thereunder;
	 
	 	(b)	 	must, for benefits distributable under Sections 2.1, 2.2, 2.3, 2.4 and 2.5,
delay the commencement of distributions for a minimum of five (5) years from the date
the first distribution was originally scheduled to be made; and
	 
	 	(c)	 	must take effect not less than twelve (12) months after the amendment is made.

ARTICLE 3

DEATH BENEFITS

     3.1 Death During Active Service. No death benefits will be paid by the Company under
this Agreement in the event the Executive dies while in the active service of the Company. Death
benefits will be provided by way of a compensatory split-dollar life insurance arrangement pursuant
to Article 7.

     3.2 Death During Payment of a Benefit. If the Executive dies after any payments have
commenced under Article 2 of this Agreement but before receiving all such payments, the Employer
shall pay the remaining benefits to the Executive’s beneficiary at the same time and in the same
amounts they would have been paid to the Executive had the Executive survived.

     3.3 Death After Separation from Service But Before Payment of a Benefit Commences. If
the Executive is entitled to a benefit under Article 2 of this Agreement, but dies after Separation
from Service and prior to the commencement of said benefit payments, the Employer shall pay the
same benefit payments to the Executive’s beneficiary that the Executive was entitled to prior to
death except that the benefit payments shall commence on the first day of the month following the
date of the Executive’s death.

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ARTICLE 4

LIABILITY FOR BENEFITS

     4.1 Primary Obligor. The Employer shall be the primary obligor with respect to the
obligation to pay benefits owing to a Executive under this Agreement.

     4.2 Company Guaranty. The Company hereby guarantees the obligations of each Employer
to pay benefits owing to an Executive under this Agreement.

ARTICLE 5

BENEFICIARIES

     5.1 Beneficiary Designations. The Executive shall designate a beneficiary by filing a
written designation with the Employer. The Executive may revoke or modify the designation at any
time by filing a new designation. However, designations will only be effective if signed by the
Executive and received, accepted and acknowledged in writing by the Employer during the Executive’s
lifetime. The Executive’s beneficiary designation shall be deemed automatically revoked if the
beneficiary predeceases the Executive, or if the Executive names a spouse as beneficiary and the
marriage is subsequently dissolved. If the Executive dies without a valid beneficiary designation,
any benefits shall be paid to the personal representative of the Executive’s estate.

     5.2 Facility of Payment. If the Employer determines in its discretion that a benefit
is payable to a minor, to a person declared incapacitated, or to a person incapable of handling the
disposition of his or her property, the Employer may pay such benefit to the guardian, legal
representative or person having the care or custody of such minor, incapacitated person or
incapable person. The Employer may require proof of incapacity, minority or guardianship as it may
deem appropriate prior to distribution of the benefit. Such distribution shall completely
discharge the Employer from all liability under the Agreement with respect to such benefit.

ARTICLE 6

FORFEITURE AND OTHER CONDITIONS ON OBLIGATION TO PAY

     6.1 Termination for Cause. Notwithstanding any provision of this Agreement to the
contrary, neither the Company nor any Subsidiary shall pay any benefit under this Agreement if the
Executive’s Separation from Service is the result of a Termination for Cause.

     6.2 Suicide or Misstatement. The Company shall not pay any benefit under the
Agreement if the Executive commits suicide within two years after the Effective Date of this
Agreement, or if an insurance company which issued a life insurance policy covering the Executive
and owned by the Company or its Subsidiary denies coverage (i) for material misstatements of fact
made by the Executive on an application for such life insurance, or (ii) for any other reason.

     6.3 Restrictive Covenants.

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          6.3.1 The Company has agreed to provide benefits under this Agreement in return for the
Executive’s acceptance of restrictive covenants set forth in this Section 6.3. The Executive
hereby acknowledges that the benefits provided hereunder constitute adequate consideration for
Executive’s obligations under this Section 6.3.

          6.3.2 Neither the Company nor any Subsidiary shall pay any benefit under this Agreement, and
the Executive shall be obligated to repay any lump sum payment received under this Agreement if,
without the prior written consent of the Company and the affected Subsidiary or Subsidiaries,
Executive:

          (a) at any time prior to the                      anniversary of the Separation from Service of
the Executive, either as an individual, on his or her own account, or as an agent, employee,
director, shareholder or otherwise, directly or indirectly, solicit, induce or encourage, or
attempt to solicit, induce or encourage any customer of the Company or any of its affiliates
not to do business with the Company or any of its affiliates. For purposes of this
paragraph, such customers and such affiliates shall be limited to those persons or entities
which are customers or affiliates as of the date immediately preceding the date of the
Executive’s Separation from Service; or

          (b) at any time prior to the                      anniversary of the Separation from Service of
the Executive, directly or indirectly solicits, induces or encourages any person who, as of
the date immediately preceding the date of the Separation from Service, is an employee of
the Company or any of its affiliates to terminate his or her relationship with the Company
or any of its affiliates.

          6.3.3 Executive represents and warrants that:

          (a) Executive has read and understands this Agreement;

          (b) Executive has had an opportunity to consult with legal counsel in connection
herewith;

          (c) the restraints and agreements herein provided are fair and reasonable;

          (d) enforcement of the provisions of Section 6.3 will not cause him or her undue
hardship; and

          (e) that the above restrictions are reasonable in scope and duration and are the least
restrictive means to protect the Company’s and its Subsidiaries’ legitimate and proprietary
business interests and property from irreparable harm.

          6.3.4 The Company and the Executive hereby recognize that the restrictive nonsolicitation
provisions of Section 6.3.2 have value and that value shall be recognized in the Section 280G
calculations by an allocation of the termination benefits between the nonsolicitaion provision and
the other termination benefits based on the value of the fair market value of the nonsolicitation
provisions. The Company shall make the determination of the fair value to be assigned.

 Page 10

 

ARTICLE 7

DEATH BENEFITS PROVIDED BY LIFE INSURANCE

     7.1 General. The Company will provide the Executive with current life insurance
protection by way of a compensatory split-dollar life insurance arrangement in the event the
Executive dies while in the active service of the Company. The Company is and will be the owner of
the life insurance policy or policies contemplated by this Agreement (individually the “Policy,”
and collectively, the “Policies”) and, as such, possess all of the incidents of ownership in and to
each Policy, subject to the limitations contained herein. The Company will endorse to the
Executive the right to designate the beneficiary of a portion of the death benefits payable under
the Policies as provided and limited herein.

     7.2 Purchase of the Policies. The parties undertake all necessary actions to cause
each Policy to be issued to the Company and to cause each Policy to conform to the terms of this
Agreement. Each Policy will be subject to the terms and conditions of this Agreement and of the
endorsement filed with the insurance company issuing each Policy (the “Insurer”).

     7.3 Ownership of the Policies.

          7.3.1 Company Will Own Each Policy. The Company will own each Policy at all times and
may exercise all ownership rights and incidents of ownership granted to the particular Policy’s
owner by the Insurer, except the Executive’s right to direct the distribution of the Policies’
death benefits up to the Current Life Insurance Protection Amount defined in Section 7.5.1.

          7.3.2 Company’s Right to Borrow, Withdraw, Pledge or Assign. The Company alone may,
to the extent of its interest, exercise the right to borrow or withdraw on each Policy’s cash
surrender values. The Company may pledge or assign the policy, subject to the terms and conditions
of this Agreement, in order to secure a loan or loans from the Insurer or from a third party.
Interest charges on such loans shall be the responsibility of and shall be paid by the Company.

          7.3.3 Company’s Right to Exchange, Surrender or Cancel Policy. The Company shall have
the sole right to exchange, surrender or cancel any Policy or Policies and to receive from the
Insurer the amount due the owner under each Policy.

          7.3.4 Company Retains Rights Granted Under Each Policy. The Company shall retain all
rights which each Policy grants to the owner thereof.

          7.3.5 No Action By Executive. The Executive shall take no action with respect to any
Policy that would in any way compromise or jeopardize the Company’s rights without the Company’s
express written consent.

     7.4 Exchange of Policies. The Company may, with the consent of the Executive,
exchange any Policies that are the subject matter of this Agreement, with or without replacing said
Policies. The Executive agrees not to unreasonably withhold his or her consent.

 Page 11

 

     7.5 Economic Benefit Limited to Current Life Insurance Protection Amount.

          7.5.1 Economic Benefit Provided to Executive. For each calendar year for which this
Agreement is in force, the economic benefit provided to the Executive under this Agreement is
limited to current life insurance protection as set forth in Schedule B (the “Current Life
Insurance Protection Amount”).

          7.5.2 Executive Has No Right to Cash Surrender Value. The Executive does not have any
current or future right to access any cash surrender value of any Policy.

          7.5.3 Executive Has No Economic Benefits. The Executive does not have any economic
benefits in any Policy other than as provided in Section 7.5.1.

     7.6 Beneficiary Designation Rights. The Company shall endorse to the Executive the
right and power to designate a beneficiary or beneficiaries to receive an aggregate sum payable
upon the death of the Executive equal to the Current Life Insurance Protection Amount. This
endorsement shall be effected using a form provided by the Insurer or Insurer. A Policy’s
endorsement shall not be terminated, altered, or amended without the express written consent of the
Executive. To change a beneficiary, the Executive must execute a new endorsement and comply with
the requirements of the particular Policy. Failure to comply with the terms of the individual
Policy will result in the change not becoming effective. The parties shall take all actions
necessary to cause such an endorsement to conform to the provisions of this Agreement.

     7.7 Premium Payments. Subject to the Company’s absolute right to surrender or
terminate any Policy at any time and for any reason, the Company shall pay the entire premiums owed
under the Policies to the Insurers. Upon request, the Company shall promptly furnish to the
Executive evidence of timely payment of such premiums.

     7.8 Income Taxation of Current Life Insurance Protection Amount. Consistent with the
federal income tax regulations governing the taxation of compensatory split-dollar life insurance
arrangements, the parties agree that the value of the economic benefits provided to the Executive
hereunder for a taxable year is equal to the cost of the Current Life Insurance Protection Amount
in effect for that year. Such cost equals the Current Life Insurance Protection Amount multiplied
by the life insurance premium factor designated or permitted in guidance published by the Internal
Revenue Service. The Company shall annually furnish to the Executive a statement of the amount of
income reportable by the Executive for federal and state income tax purposes consistent therewith.
The Executive agrees to report the amount reflected in the statement on his or her personal income
tax return.

     7.9 Death of the Executive.

          7.9.1 Determination of the Death Benefit Payable to the Executive and the Company.
Upon the death of the Executive while in the active service of the Company, the Company and the
Executive’s beneficiaries designated under the Policies (or if no beneficiary is designated, the
estate of the Executive) shall promptly take all action necessary to obtain the death benefits
provided under each Policy. The Company shall have the unqualified right to receive that portion
of such death benefits that exceeds the Current Life Insurance Protection Amount for the calendar
year in which the Executive’s death occurs. The balance of the Policy

 Page 12

 

death benefits (i.e., the Current Life Insurance Protection Amount) shall be paid to the
Executive’s beneficiaries designated under the Policies (or if no beneficiary is designated, the
estate of the Executive) in the manner and in the amount provided in the Policy’s provisions. In
no event shall the aggregate amounts payable under the Policies (and this Agreement) to the
Executive’s beneficiaries (or estate) exceed the Current Life Insurance Protection Amount for the
calendar year in which the Executive’s death occurs.

          7.9.2 Payment to Executive’s Beneficiaries. To the extent an amount is paid to the
Executive’s beneficiaries (or the estate of the Executive) hereunder, then such amount will
satisfy, replace, and render void all obligations of the Company to pay such amount under Article 3
of this Agreement.

          7.9.3 No Rights to Death Benefits if Executive Dies While Not in the Active Service of the
Company. If the Executive dies while not in the active service of the Company, neither the
Executive’s estate nor any of the Executive’s beneficiaries shall have any rights to any portion of
any death benefits payable under any Policy.

     7.10 No Rights to Assign Interest in Policy. The Executive may not, without the
written consent of the Company, assign to any individual, trust or other organization, any right,
title or interest in any Policy, nor any rights, options, privileges or duties created under this
Agreement.

     7.11 Insurer Not a Party to This Agreement. No Insurer shall be deemed a party to
this Agreement, but is expected to respect the rights of the parties as herein developed upon
receiving an executed copy of this Agreement. The Insurer shall be fully discharged from its
obligations under the applicable Policy by payment of the Policy’s death benefit to the
beneficiaries named in the Policy, subject to the Policy’s terms and conditions and endorsements.
No provision in this Agreement shall in any way be construed as enlarging, changing, varying, or in
any other way affecting the Insurer’s obligations as expressly provided in the Policy, except
insofar as the provisions of this Agreement are made a part of the Policy by the endorsement
document executed by the Company and filed with the Insurer in connection with this Agreement.

ARTICLE 8

CLAIMS AND REVIEW PROCEDURES

     8.1 Claims Procedure. An Executive or Beneficiary (“claimant”) who has not received
benefits under the Agreement that he or she believes should be distributed shall make a claim for
such benefits as follows:

          8.1.1 Initiation – Written Claim. The claimant initiates a claim by submitting to the
Company a written claim for the benefits. If such a claim relates to the contents of a notice
received by the claimant, the claim must be made within sixty (60) days after such notice was
received by the claimant. All other claims must be made within one hundred eighty (180) days of
the date on which the event that caused the claim to arise occurred. The claim must state with
particularity the determination desired by the claimant.

 Page 13

 

          8.1.2 Timing of Company Response. The Company shall respond to such claimant within
ninety (90) days after receiving the claim. If the Company determines that special circumstances
require additional time for processing the claim, the Company can extend the response period by an
additional ninety (90) days by notifying the claimant in writing, prior to the end of the initial
ninety (90) day period, which an additional period is required. The notice of extension must set
forth the special circumstances and the date by which the Company expects to render its decision.

          8.1.3 Notice of Decision. If the Company denies part or all of the claim, the Company
shall notify the claimant in writing of such denial. The Company shall write the notification in a
manner calculated to be understood by the claimant. The notification shall set forth:

	 	(a)	 	The specific reasons for the denial;
	 
	 	(b)	 	A reference to the specific provisions of the Agreement on
which the denial is based;
	 
	 	(c)	 	A description of any additional information or material
necessary for the claimant to perfect the claim and an explanation of why it is
needed;
	 
	 	(d)	 	An explanation of the Agreement’s review procedures and the
time limits applicable to such procedures; and
	 
	 	(e)	 	A statement of the claimant’s right to bring a civil action
under ERISA Section 502(a) following an adverse benefit determination on
review.

     8.2 Review Procedure. If the Company denies part or all of the claim, the claimant
shall have the opportunity for a full and fair review by the Company of the denial as follows:

          8.2.1 Initiation – Written Request. To initiate the review, the claimant, within
sixty (60) days after receiving the Company’s notice of denial, must file with the Company a
written request for review.

          8.2.2 Additional Submissions – Information Access. The claimant shall then have the
opportunity to submit written comments, documents, records and other information relating to the
claim. The Company shall also provide the claimant, upon request and free of charge, reasonable
access to, and copies of, all documents, records and other information relevant (as defined in
applicable ERISA regulations) to the claimant’s claim for benefits.

          8.2.3 Considerations on Review. In considering the review, the Company shall take
into account all materials and information the claimant submits relating to the claim, without
regard to whether such information was submitted or considered in the initial benefit
determination.

          8.2.4 Timing of Company Response. The Company shall respond in writing to such
claimant within sixty (60) days after receiving the request for review. If the Company

 Page 14

 

determines that special circumstances require additional time for processing the claim, the
Company can extend the response period by an additional sixty (60) days by notifying the claimant
in writing, prior to the end of the initial sixty (60) day period, which an additional period is
required. The notice of extension must set forth the special circumstances and the date by which
the Company expects to render its decision.

          8.2.5 Notice of Decision. The Company shall notify the claimant in writing of its
decision on review. The Company shall write the notification in a manner calculated to be
understood by the claimant. The notification shall set forth:

	 	(a)	 	The specific reasons for the denial;
	 
	 	(b)	 	A reference to the specific provisions of the Agreement on
which the denial is based;
	 
	 	(c)	 	A statement that the claimant is entitled to receive, upon
request and free of charge, reasonable access to, and copies of, all documents,
records and other information relevant (as defined in applicable ERISA
regulations) to the claimant’s claim for benefits; and
	 
	 	(d)	 	A statement of the claimant’s right to bring a civil action
under ERISA Section 502(a).

ARTICLE 9

AMENDMENT AND TERMINATION

     9.1 Amendment. This Agreement may be amended or terminated only by a written
agreement signed by the Company and the Executive.

     Notwithstanding the previous paragraph in this Article 9, the Company may amend or terminate
this Agreement at any time if, pursuant to legislative, judicial or regulatory action, continuation
of the Agreement would (i) cause benefits to be taxable to the Executive prior to actual receipt,
or (ii) result in significant financial penalties or other significantly detrimental ramifications
to the Company (other than the financial impact of paying the benefits).

     9.2 Effect of a Change in Control.

          9.2.1 Notwithstanding any other provision of this Agreement, following a Change in Control,
the provisions or the interpretation or administration of this Agreement may not be amended or
terminated in any manner which would adversely affect in any way the computation or amount of or
entitlement to benefits under the Agreement as in effect immediately prior to the Change in
Control, including, but not by way of limitation, any adverse change in or to:

          (i) the formula pursuant to which benefits are earned or the date on which benefits
become vested;

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          (ii) Final Salary recognized under the Agreement for purposes of determining benefits;
or

          (iii) the time or manner of payment of benefits available to any Executive or
beneficiary, including the commencement of the benefit payments or any present value or
other factors, including any methods of accounting, used in determining the amount thereof.

          9.2.2 The Employer shall deposit assets equal in value to the aggregate of all accrued
benefits then payable or reasonably expected to be payable in the future under the Agreement as of
the date of such Change in Control with a bank or corporate trustee pursuant to one or more grantor
trusts in a form satisfactory to the Company and Executive provided the assets set aside in a trust
are not treated for purposes of Section 409A of the Code as property transferred in connection with
the performance of services under Section 83 of the Code (e.g., the assets are transferred to a
foreign trust or the assets are transferred as a result of a change in the financial health of the
Company).

     9.3 Plan Termination Generally. This Agreement may be terminated only by written
agreement signed by the Company and the Executive. Except as provided in Section 9.4, the
termination of this Agreement shall not cause a distribution of benefits under this Agreement.
Rather, upon such termination benefit distributions will be made at the earliest distribution event
permitted under Article 2 or Article 3.

     9.4 Plan Terminations Under Section 409A. Notwithstanding anything to the contrary in
Section 9.3, if this Agreement terminates in the following circumstances:

	 	(a)	 	Within thirty (30) days before or twelve (12) months after a
Change in Control, provided that all distributions are made no later than
twelve (12) months following such termination of the Agreement and further
provided that all of the Company’s arrangements which are substantially similar
to the Agreement are terminated so that the Executive and all participants in
similar arrangements are required to receive all amounts of compensation
deferred under the terminated arrangements within twelve (12) months of such
terminations;
	 
	 	(b)	 	The Company’s termination of the Agreement within twelve (12)
months of a corporate dissolution or with the approval of a bankruptcy court
provided that the amounts deferred under the Agreement are included in the
Executive’s gross income in the latest of the following years: (i) the calendar
year in which the Agreement terminates; (ii) the first calendar year in which
the amount is no longer subject to a substantial risk of forfeiture; or (iii)
the first calendar year in which the distribution is administratively
practical; or
	 
	 	(c)	 	Upon the Company’s termination of this and all other
arrangements that would be aggregated with this Agreement pursuant to Treasury
Regulations Section 1.409A-1(c) if the Executive participated in such

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	 	 	 	arrangements (“Similar Arrangements”), provided that (i) the termination and
liquidation does not occur proximate to a downturn in the financial health
of the Company, (ii) all termination distributions are made no earlier than
twelve (12) months and no later than twenty-four (24) months following such
termination, and (iii) the Company does not adopt any new arrangement that
would be a Similar Arrangement for a minimum of three (3) years following
the date the Company takes all necessary action to irrevocably terminate and
liquidate the Agreement;

the Company may distribute the benefits to the Executive in a lump sum subject to the above terms.

ARTICLE 10

ADJUSTMENT DUE TO EXCISE TAX

     10.1 If it is determined (in the reasonable opinion of independent public accountants then
regularly retained by the Company), that any amount payable to Executive by the Company under this
Agreement or any other plan, program or agreement under which Executive participates or is a party
would constitute an “Excess Parachute Payment” within the meaning of Section 280G of the Code (or
any similar provision), subject to the excise tax imposed by Section  4999 of the Code, as amended
from time to time (the “Excise Tax”), then the amount of benefits payable to the Executive under
any provision of this Agreement shall be reduced to the extent necessary so that no portion of the
amounts payable to the Executive is subject to the Excise Tax. Executive shall be responsible for
any and all Excise Taxes (or similar taxes imposed upon such payments).

     10.2 The determination of the amount of reduction, if any, in the amounts payable to the
Executive shall be made in good faith by the Company’s independent public accountants, and a
written statement setting forth the calculation thereof shall be provided to the Executive.

ARTICLE 11

ADMINISTRATION

     11.1 Plan Administrator Duties. The Company shall administer this Agreement according
to its express terms and shall also have the discretion and authority to (i) make, amend, interpret
and enforce all appropriate rules and regulations for the administration of this Agreement and (ii)
decide or resolve any and all questions, including interpretations of this Agreement, as may arise
in connection with the Agreement to the extent the exercise of such discretion and authority does
not conflict with Section 409A of the Code.

     11.2 Agents. In the administration of this Agreement, the Company may employ agents
and delegate to them such administrative duties as it sees fit, including acting through a duly
appointed representative, and may from time to time consult with counsel who may be counsel to the
Company.

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     11.3 Binding Effect of Decisions. Any decision or action of the Company with respect
to any question arising out of or in connection with the administration, interpretation and
application of the Agreement and the rules and regulations promulgated hereunder shall be final and
conclusive and binding upon all persons having any interest in the Agreement.

     11.4 Indemnity of Plan Administrator. The Company shall indemnify and hold harmless
the employees of the Company against any and all claims, losses, damages, expenses or liabilities
arising from any action or failure to act with respect to this Agreement, except in the case of
willful misconduct by an employee.

ARTICLE 12

MISCELLANEOUS

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

     12.2 Non-Transferability. Benefits under this Agreement may not be sold, transferred,
assigned, pledged, attached or encumbered in any manner.

     12.3 Reorganization. The Company shall not merge or consolidate into or with another
company, or reorganize, or sell substantially all of its assets to another company, firm, or person
unless such succeeding or continuing company, firm, or person agrees to assume and discharge the
obligations of the Company under this Agreement. Upon the occurrence of such event, the term
“Company” as used in this Agreement shall be deemed to refer to the successor or survivor company.

     12.4 Tax Withholding and Reporting. The Employer shall withhold any taxes that are
required to be withheld, including taxes owed under Section 409A of the Code, from the benefits
provided under this Agreement. The Executive acknowledges that the Employer’s sole liability
regarding taxes is to forward any amounts withheld to the appropriate taxing authorities. The
Employer shall satisfy all applicable reporting requirements, including those under Section 409A of
the Code.

     12.5 Applicable Law. The Agreement and all rights hereunder shall be governed by the
laws of the State of Illinois, except to the extent preempted by Federal laws.

     12.6 Unfunded Arrangement. The Executives and beneficiaries are general unsecured
creditors of the Company and their respective Employers for the payment of benefits under this
Agreement. The benefits represent the mere promise by the Company and the respective Employers to
pay such benefits. The rights to benefits are not subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by
creditors. Any insurance on the Executive’s life is a general asset of the Company or the Employer
to which the Executive and beneficiary have no preferred or secured claim.

 Page 18

 

     12.7 Named Fiduciary. The Company shall be the named fiduciary and plan administrator
under this Agreement. It may delegate to others certain aspects of the management and operational
responsibilities including the employment of advisors and the delegation of ministerial duties to
qualified individuals.

     12.8 Gender and Number. In the Agreement, wherever the context permits, words in the
masculine gender include the feminine and neuter genders, words in the singular include the plural
and words in the plural include the singular.

     12.9 Entire Agreement. This Agreement constitutes the entire agreement between the
Company and the Executive as to the subject matter hereof. No rights are granted to the Executive
by virtue of this Agreement other than those specifically set forth herein.

     12.10 Binding Effect. This Agreement shall bind the Executive and the Company, and
their beneficiaries, survivors, executors, successors, administrators and transferees. The Company
shall require any successor to the Company and any successor to any Employer by merger,
consolidation or combination to expressly assume in writing the obligations of the Company and/or
such Employer hereunder.

     12.11 Alternative Action. In the event it shall become impossible for the Company or
the Employer to perform any act required by this Agreement due to regulatory or other constraints,
the Company or the Employer may perform such alternative act as most nearly carries out the intent
and purpose of this Agreement and is in the best interests of the Company, provided that such
alternative acts do not violate Section 409A of the Code.

     12.12 Headings. Article and Section headings are for convenient reference only and
shall not control or affect the meaning or construction of any provision herein.

     12.13 Validity. If any provision of this Agreement shall be illegal or invalid for
any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this
Agreement shall be construed and enforced as if such illegal or invalid provision had never been
inserted herein.

     12.14 Deduction Limitation on Benefit Payments. If the Company reasonably anticipates
that the Company’s deduction with respect to any distribution under this Agreement would be limited
or eliminated by application of Section 162(m) of the Code, then to the extent deemed necessary by
the Company to ensure that the entire amount of any distribution from this Agreement is deductible,
the Company may delay payment of any amount that would otherwise be distributed under this
Agreement. The delayed amounts shall be distributed to the Executive (or the beneficiary in the
event of the Executive’s death) at the earliest date the Company reasonably anticipates that the
deduction of the payment of the amount will not be limited or eliminated by application of Section
162(m) of the Code.

     12.15 Compliance with Section 409A. This Agreement shall be interpreted and
administered consistent with Section 409A of the Code.

*     *     *

 Page 19

 

     IN WITNESS WHEREOF, the Executive and a duly authorized Company Officer have signed this
Agreement on this ___ day of                                         , 2008. The Executive agrees that this Agreement
replaces (supersedes) all other previous Supplemental Executive Retirement Agreements prior to the
Effective Date of this Agreement.

	 	 	 	 	 	 	 
	Executive:	 	Company:
	 	 	MIDWEST BANC HOLDINGS, INC., for
	 	 	itself and its Subsidiaries
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	As its:	 	 	 	 
	 

	 	 	 	 	 	 

*      *      *

ELECTION OF INSTALLMENT PAYMENT ON CHANGE IN CONTROL

     Pursuant to Section 2.5.3 of this Agreement, I hereby elect to have my benefit paid to me in
the form of twelve (12) equal monthly installments payable on the first day of each month
commencing with the month following my Normal Retirement Date. My benefit will be paid to me for a
period of fifteen (15) years. I understand that if I do not make the election by signing below, my
benefit will be paid to me in the form of a lump sum pursuant to Section 2.5.2 no later than 74
days after the date of my Involuntary Termination of Employment.

	 	 	 	 	 	 	 
	 

	 	Signature:
	 	 	 	 
	 

	 	 	 	 	 	 

 Page 20

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