Document:

Exhibit

Exhibit 10.1
AMEDISYS HOLDING, L.L.C.
AMENDED AND RESTATED SEVERANCE PLAN FOR EXECUTIVE OFFICERS 
JULY 25, 2019

1.     Purpose. The purpose of this Amedisys Holding, L.L.C. Amended and Restated Severance Plan for Executive Officers (this “Plan”) is to provide a fair framework in the event of the termination of employment in certain circumstances of certain executive officers of the Company. This document supersedes any prior plan, program or arrangement that provides severance benefits to a Covered Executive (as defined below) eligible for benefits under this Plan. This document is intended to serve both as the official plan document and the summary plan description for this Plan.  The Plan is sponsored by Amedisys Holding, L.L.C. (“Company”).  The Company is the Plan Administrator.

2.     Covered Executives. To be eligible for benefits under this Plan an executive must (1) be employed by the Company in the position of an executive officer of the Company as appointed by the Board of Directors (the “Board”) of Amedisys, Inc.; or  have been designated in writing by the Board of Directors (the “Board”) of Amedisys, Inc. or the Compensation Committee of the Board (the “Committee”), as appropriate, as being covered by this Plan; and (2) have executed and delivered to the Company (and not have revoked or attempted to revoke) the Company’s Executive Protective Covenants Agreement (“EPCA” or other similarly named agreement) (a “Covered Executive”). 

This Plan shall not be applicable to any employee who is a party to a separate employment agreement with the Company.

3.     Definitions.

(a)    Cause. “Cause,” as it applies to the determination by the Company to terminate the employment of a Covered Executive, shall mean any one or more of the following: (i) Covered Executive’s default or breach of any of the provisions of any agreement that the Covered Executive may have with the Company or any affiliate or subsidiary; (ii) Covered Executive engages in an act or series of acts constituting fraud, abuse, dishonesty, embezzlement, destruction or theft of Company property, or breach of the duty of loyalty owed by Covered Executive to the Company; (iii) Covered Executive’s violation of any applicable laws, rules or regulations (including, without limitation, all Medicare and other health care laws, rules and regulations pertaining to the provision of home health care, hospice or any other services provided by the Company); (iv) Covered Executive’s furnishing materially false, inaccurate, misleading or incomplete information to the Company; (v) Covered Executive engages in an act or series of acts constituting a material breach of the Company’s Code of Ethical Business Conduct, the Company’s employee handbook or any other Company policy; (vi) Covered Executive’s willful failure to follow reasonable and lawful directives of Covered Executive’s supervisor, or any of the Company’s senior executive officers, 

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which are consistent with Covered Executive’s job responsibilities and performance; or (vii) Covered Executive’s failure to satisfy the requirements of Covered Executive’s job, regardless whether or not such failure is willful, including the failure to satisfy the objectives of any action plan or performance improvement plan that Covered Executive may be under. In the event of a termination by the Company for Cause, Covered Executive shall have no right to any severance benefits under this Plan.

(b)    Code. “Code” shall mean the United States Internal Revenue Code of 1986, as amended, or any successor provision of law, and the regulations promulgated thereunder.

(c)    Good Reason. “Good Reason,” as it applies to the determination by a Covered Executive to terminate Covered Executive’s employment with the Company at his or her initiative shall mean the occurrence of any of the following events without Covered Executive’s written consent: (i) Covered Executive suffers a material diminution in authority, responsibilities, or duties; or (ii) Covered Executive suffers a material reduction in base salary other than in connection with a proportionate reduction in the base salaries of all similarly situated senior officer-level employees. Good Reason shall not be deemed to have occurred unless (i) Covered Executive provides the Company with notice of one of the conditions described above within 90 days of the existence of the condition, (ii) the Company is provided at least 30 days to cure the condition and fails to cure same within such 30 day period and (iii) Covered Executive terminates employment within at least 150 days of the existence of the condition.        

(d)    Employment Termination. “Employment Termination” shall mean a Covered Executive no longer being an employee of the Company as a result of a termination by the Company without Cause or by Covered Executive with Good Reason.

(e)    Change in Control. A “Change in Control” shall be deemed to have occurred if: 

a.    any person or entity, including a “group” as defined in Section 13(d)(3) of the Exchange Act or in Section 409A of the Code, other than the Company or a wholly-owned Subsidiary, or any employee benefit plan of the Company or any Subsidiary, becomes the beneficial owner of the Company’s securities having 50% or more of the combined voting power of the then outstanding securities of the Company that may be cast for the election of directors of the Company (other than as a result of an issuance of securities initiated by the Company in the ordinary course of business); or

b.    as the result of, or in connection with, any cash tender or exchange offer, merger or other business combination, sales of assets or contested election, or any combination of the foregoing transactions, after the transaction less than a majority of the combined voting power of the then outstanding securities of the Company, or any successor corporation or cooperative or entity, entitled to vote generally in the election of the directors of the Company, or other successor corporation or other entity, are held in the aggregate by the holders of the Company’s securities who immediately prior to the transaction had been entitled to vote generally in the election of directors of the Company; or

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c.    during any period of 12 consecutive months, individuals who at the beginning of the period constitute the Board cease for any reason to constitute at least a majority of the Board, unless the election, or the nomination for election by the Company’s stockholders, of each director of the Company first elected during the relevant 12 month period was approved by a vote of at least 2/3 of the directors of the Company then still in office who were directors of the Company at the beginning of that period.

4.     Result of Termination by the Company without Cause or by Covered Executive with Good Reason Prior to a Change in Control. The following provisions shall apply should the Company terminate a Covered Executive’s employment without Cause or should a Covered Executive terminate Covered Executive’s employment with Good Reason:

(a)    Salary and Bonus. The Company shall pay to Covered Executive an amount equal to one (1) times the sum of (A) the Covered Executive’s base salary, as in effect on the date of Employment Termination (or in the event a reduction in base salary is a basis for a termination with Good Reason, then the base salary in effect immediately prior to such reduction) and (B) the greater of (x) an amount equal to the cash bonus earned by the Covered Executive for the previous fiscal year or (y) an amount equal to the Covered Executive’s short-term incentive bonus target percentage for the fiscal year of the Employment Termination times the Covered Executive’s base salary, as in effect on the date of the Employment Termination (or, in the event a reduction in base salary is a basis for termination for Good Reason, then the base salary in effect immediately prior to such reduction), which amount shall be payable in substantially equal monthly installments in accordance with the Company’s normal payroll practices for a period of 12 months and which payments shall commence in accordance with the provisions of Section 6, herein (unless otherwise required to be paid in accordance with Section 7 below). 

(b)    Stock Vesting. Any unvested equity awards issued in the name of Covered Executive as of the date of termination, will vest in accordance with the terms contained in the applicable Award Agreement for such awards.  

5.     Termination by the Company without Cause or Termination by Covered Executive with Good Reason Following a Change in Control. The following provisions shall apply should the Company terminate a Covered Executive’s employment without Cause or should a Covered Executive terminate Covered Executive’s employment with Good Reason, in either case within  two years following a Change in Control (as defined above):

(a)    Salary and Bonus. The Company shall pay to Covered Executive (i) an amount equal to two (2) times the sum of (A) the Covered Executive’s base salary, as in effect on the date of Employment Termination (or in the event a reduction in base salary is a basis for a termination with Good Reason, then the base salary in effect immediately prior to such reduction) and (B) the greater of (x) an amount equal to the cash bonus earned by the Covered Executive for the previous fiscal year or (y) an amount equal to the Covered Executive’s short-term incentive bonus target percentage for the fiscal year of the Employment Termination times the Covered Executive’s base salary, as in effect on the date of the Employment Termination  (or, in the event a 

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reduction in base salary is a basis for termination for Good Reason, then the base salary in effect immediately prior to such reduction), which amount shall be payable in a lump sum on the date or dates specified in Section 6, herein (unless otherwise required to be paid in accordance with Section 7 below).

(b)     Stock Vesting. Any unvested equity awards issued in the name of Covered Executive as of the occurrence of a Change in Control will vest in accordance with the provisions of the Amedisys, Inc. 2018 Omnibus Incentive Compensation Plan, as the same may be amended from time to time, or any successor plan thereto.  

6.     Release of Claims. The Company’s obligations under this Plan are contingent upon Covered Executive’s executing (and not revoking during any applicable revocation period) a valid, enforceable, full and unconditional release of all claims Covered Executive may have against the Company, Amedisys, Inc. and their respective directors, officers, employees, subsidiaries, stockholders, successors, assigns, agents, representatives subsidiaries and affiliates (whether known or unknown) as of the date of Employment Termination in such form as provided by the Company no later than 60 days after the date of Employment Termination. If the foregoing release is executed and delivered and no longer subject to revocation within 60 days after the date of Employment Termination, then the following shall apply:

(a)    To the extent any payments due to Covered Executive under this Plan are not “deferred compensation” for purposes of Section 409A of the Code then such payments shall commence upon the first regularly-scheduled payment date immediately following the date the release is executed and no longer subject to revocation (the “Release Effective Date”). The first such cash payment shall include payment of all amounts that otherwise would have been due prior to the Release Effective Date under the terms of this Plan had such payments commenced after the date of Employment Termination, and any payments to be made thereafter shall continue as provided herein. The delayed payments shall in any event expire at the time such payments would have expired had such payments commenced after the date of Employment Termination.

(b)    To the extent any payments due to Covered Executive under this Plan above are “deferred compensation” for purposes of Section 409A, then such payments shall commence upon the 60th day following the date of Employment Termination. The first such cash payment shall include payment of all amounts that otherwise would have been due prior thereto under the terms of this Plan had such payments commenced after the date of Employment Termination, and any payments to be made thereafter shall continue as provided herein. The delayed payments shall in any event expire at the time such payments would have expired had such payments commenced immediately following the date of Employment Termination.

7.     Section 409A. Notwithstanding any provisions in this Plan to the contrary, if at the time of the Employment Termination the Covered Executive is a “specified employee” as defined in Section 409A and the deferral of the commencement of any payments or benefits otherwise payable as a result of such Employment Termination is necessary to avoid the additional tax under Section 409A, the Company will defer the payment or commencement of the payment of any such payments or benefits (without any reduction in such payments or benefits ultimately paid or provided 

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to Covered Executive) until one day after the day which is six months from the date of Employment Termination. Any monthly payment amounts deferred will be accumulated and paid to Covered Executive (without interest) six months after the date of Employment Termination in a lump sum, and the balance of payments due to Covered Executive will be paid as otherwise provided in this Plan. Each monthly payment described in this Plan is designated as a “separate payment” for purposes of Section 409A and, subject to the six-month delay, if applicable, and the first monthly payment shall commence on the payroll date as in effect on termination following the termination. For purposes of this Plan, a termination of employment means a separation from service as defined in Section 409A. No reimbursement payable to Covered Executive pursuant to any provisions of this Plan or pursuant to any plan or arrangement of the Company shall be paid later than the last day of the calendar year following the calendar year in which the related expense was incurred, and no such reimbursement during any calendar year shall affect the amounts eligible for reimbursement in any other calendar year, except, in each case, to the extent that the right to reimbursement does not provide for a “deferral of compensation” within the meaning of Section 409A. This Plan will be interpreted, administered and operated in accordance with Section 409A, although nothing herein will be construed as an entitlement to or guarantee of any particular tax treatment to Covered Executive.

8.    Claims Procedure. If a Covered Executive does not receive a benefit to which the Covered Executive believes he or she is entitled under the Plan, or if the Covered Executive believes that the Covered Executive is entitled to a greater benefit than was approved, the Covered Executive must, within 60 days following the date of Employment Termination, file a written claim with the Plan Administrator. The Plan Administrator will investigate the claim and will send the Covered Executive a written decision within 60 days from the date upon which it receives the claim. If the claim is denied, the written decision will specify the reasons for the denial (including the pertinent Plan provisions upon which the denial is based), as well as an explanation of how the Covered Executive may obtain a further review by the Plan Administrator. If special circumstances require an extension of time for the Plan Administrator to render a decision, the Plan Administrator will send the Covered Executive a written notice of the extension prior to the commencement of the extension and will explain the reasons for the delay. 

If the Covered Executive disagrees with the Plan Administrator's decision, in whole or in part, the Covered Executive has 60 days following receipt of written notice from the Plan Administrator to request a review in writing. The request must describe the reasons why the Covered Executive believes the denial was wrong and whatever evidence the Covered Executive believes supports his or her position. If the Covered Executive wishes to examine any Company documents, he or she must request an examination and specify the documents requested.

Within 60 days following a request for review, the Plan Administrator will send the Covered Executive its written decision specifying the reasons for the decision, including the pertinent Plan provisions upon which it is based. This decision shall be final and binding.
If special circumstances require an extension of time for the Plan Administrator to render a decision, the Plan Administrator will send the Covered Executive a written notice of the extension prior to the commencement of the extension and will explain the reasons for the delay.

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The Company, as Plan Administrator, has the exclusive discretionary authority to construe and interpret the Plan, to decide all questions of eligibility for severance benefits under the Plan and to determine the amount of any such severance benefits, and its decisions on such matters are final and conclusive. Any interpretations or determinations made pursuant to such discretionary authority will be upheld on judicial review, unless it is shown that the interpretation or determination was an abuse of discretion (i.e., arbitrary and capricious).

9.    Your Rights Under ERISA. As a participant in the Plan, a Covered Executive is entitled to certain rights and protection under the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). ERISA provides that all Plan participants shall be entitled to:

		
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	Examine, without charge, at the Plan Administrator's office and at other specified locations, such as worksites, all documents governing the Plan, including a copy of the latest annual report (Form 5500 Series) filed by the Plan with the U.S. Department of Labor.

		
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	Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including a copy of the latest annual report (Form 5500 Series) and updated summary plan description. The Administrator may make a reasonable charge for the copies.

		
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	Receive a summary of the Plan's annual financial report. The Plan Administrator is required by law to furnish each participant with a copy of this summary annual report.

In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate the Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the interest of the Covered Executive and other Plan participants and beneficiaries. No one, including the employer, or any other person, may fire the Covered Executive or otherwise discriminate against the Covered Executive in any way to prevent the Covered Executive from obtaining a welfare benefit or exercising his or her rights under ERISA. If the Covered Executive’s claim for a welfare benefit is denied, in whole or in part, he or she must receive a written explanation of the reason for the denial. The Covered Executive has the right to have the Plan review and reconsider his or her claim.

Under ERISA, there are steps a Covered Executive can take to enforce the above rights. For instance, if the Covered Executive requests materials from the Plan and does not receive them within 30 days, he or she may file suit in a Federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay the Covered Executive up to $110 a day until he or she receives the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator.

If the Covered Executive has a claim for benefits which is denied or ignored, in whole or in part, the Covered Executive may file suit in a state or Federal court. In addition, if the Covered Executive disagrees with the Plan's decision or lack thereof concerning the qualified status of a medical child support order, he or she may file suit in Federal court. If it should happen that Plan fiduciaries misuse the Plan's money, or if the Covered Executive is discriminated against for asserting 

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his or her rights, the Covered Executive may seek assistance from the U.S. Department of Labor, or may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If the Covered Executive is successful, the court may order the person the Covered Executive has sued to pay these costs and fees. If the Covered Executive loses, the court may order him or her to pay these costs and fees — for example, if the court finds the Covered Executive’s claim is frivolous.

If the Covered Executive has any questions about the Plan, he or she should contact the Plan Administrator. If the Covered Executive has any questions about this statement or about his or her rights under ERISA, the Covered Executive should contact the nearest office of the Pension and Welfare Benefits Administration, U.S. Department of Labor, listed in the telephone directory or the Division of Technical Assistance and Inquiries, Pension and Welfare Benefits Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.

10.    Additional Important Information.  The name of the Plan is the Amedisys Holding, L.L.C. Amended and Restated Severance Plan for Executive Officers.

The sponsor of the Plan is Amedisys Holding, L.L.C. and its employer identification number is 36-4576454. The sponsor's address and telephone number is 3854 American Way, Suite A, Baton Rouge, LA 70816, (888) 777-4312.

Amedisys Holding, L.L.C. also serves as the Plan Administrator under ERISA for the Plan, and can be contacted at 3854 American Way, Suite A, Baton Rouge, LA 70816, (888) 777-4312.

The agent for service of process for the Plan is Secretary, Amedisys Holding, L.L.C., 209 10th Avenue South, Suite 512, Nashville, TN 37203.

The Plan is an employee welfare benefit plan providing severance pay and benefits as described in this Plan document under the Amedisys Employees' Health and Welfare Benefit Plan (the BenefitPlan”). All Severance Benefits under the Benefit Plan shall be paid directly by the Company from its general assets, and the rights of an eligible employee to any benefits hereunder shall not be superior to those of an unsecured general creditor of the Company.

The Benefit Plan’s plan year is the calendar year and the Plan Number is 502.

Severance benefits under the Plan may not be assigned, transferred or pledged to a third party.

11.    At-Will Employment. No provision of the Plan is intended to provide any Covered Executive with any right to continue as an employee or in any other capacity with the Company, for any specific period of time, or otherwise affect the right of the Company to terminate the employment or service of any individual at any time for any reason with or without cause.
 
12.    Amendment and Termination. The Company reserves the right in its discretion to terminate the Plan and to amend the Plan in any manner at any time, subject to the prior approval 

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of the Board and/or the Committee, as applicable. Any such action will be in writing and signed by the Chief Executive Officer or the Chief Human Resources Officer of the Company or such other persons as he or she shall designate. Oral or other informal communications made by the Company or its representatives shall not give rise to any rights or benefits other than those contained in the Plan described herein, and such communications will not diminish the Company's rights to amend or terminate the Plan in any manner.
    
This document is executed as of this 25th day of July 2019. 

AMEDISYS HOLDING, L.L.C.
By:  AMEDISYS, INC.
Its Sole Member and Manager

By: /S/ Sharon Brunecz                                
Sharon Brunecz
Chief Human Resources Officer

8ex_161838.htm

Exhibit 10.1

 

NORTHWEST INDIANA BANCORP

EXECUTIVE CHANGE IN CONTROL SEVERANCE PLAN

 

This EXECUTIVE CHANGE IN CONTROL SEVERANCE PLAN has been established by NorthWest Indiana Bancorp, an Indiana corporation (the “Company”), on October 28, 2019 (the “Effective Date”) to provide Participants with the opportunity to receive severance protection in connection with a Change in Control of the Company or the Company’s wholly-owned Indiana state chartered savings bank subsidiary, Peoples Bank SB (the “Bank”). The Plan provides special severance benefits to executive officers of the Company at the level of Executive Vice President and above who have at least three years of employment with the Company or the Bank and are employed at the time of the Change in Control, if such persons do not have separate contractual arrangements regarding change in control severance benefits at that time. The purpose of the Plan is to attract and retain talent and to assure the present and future continuity, objectivity, and dedication of management in the event of any Change in Control. The Plan is intended to be an unfunded plan primarily to provide welfare benefits for a select group of management or highly compensated employees.

 

Article I

Definitions

 

For purposes of this Plan, the following terms shall have the meanings as set forth below:

 

“Accountants” has the meaning set forth in Section 6.3.

 

“Administrator” means the Compensation Committee, or any committee or sub-committee thereof duly authorized by the Board to administer the Plan. The Board may at any time administer the Plan, in whole or in part, notwithstanding that the Board has previously appointed a committee to act as the Administrator. After the occurrence of a Change in Control, the term “Administrator” shall refer to the compensation committee of the board of directors (or equivalent body) of the Company’s successor entity if the Company no longer has an independent existence as a result of the Change in Control.

 

“Applicable Severance Multiplier” means one for any Participant.

 

“Beneficial Owner” has the meaning ascribed to it in Rule 13d-3 and Rule 13d-5 under the Exchange Act; except that, in calculating the beneficial ownership of any particular Person, such Person shall be deemed to have beneficial ownership of all securities that such Person has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time. The term “Beneficial Ownership” has a corresponding meaning.

 

“Board” means the Board of Directors of the Company, as constituted from time to time, or the board of directors of a successor to the Company upon the occurrence of a Change in Control.

 

NorthWest Indiana Bancorp Executive Change in Control Severance Plan

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“Bonus Amount” means the greater of (i) the actual annual cash bonus received by the Participant for the calendar year immediately preceding the calendar year in which the Qualifying Termination occurs; or (ii) the annual cash bonus that the Participant would have earned for the entire calendar year in which the Qualifying Termination occurs, at target level.

 

“Cause” means (i) the Participant’s willful and continued failure to perform his or her duties for the Company or the Bank, after at least one warning in writing from the Board specifically identifying any such failure; (ii) the Participant’s willful failure to comply with any valid and legal directive of the Board or the employee of the Company or the Bank to whom the Participant reports, after at least one warning in writing from the Board specifically identifying any such failure; (iii) the Participant’s willful engagement in one or more acts of dishonesty, illegal conduct, or other misconduct which, in each case, causes material injury to the Company or the Bank, as specified in a written notice to the Participant from the Board; (iv) the Participant’s embezzlement, misappropriation, or fraud, whether or not related to the Participant’s employment with the Company or the Bank, as specified in a written notice to the Participant from the Board; (v) the Participant’s conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude; or (vi) the Participant’s violation of a material policy of the Company or the Bank, after at least one warning in writing from the Board specifically identifying the violation. For purposes of this definition, no act or failure to act on the part of the Participant shall be considered “willful” unless it is done, or omitted to be done, by the Participant in bad faith or without reasonable belief that the Participant’s action or omission was in the best interests of the Company or the Bank.

 

“Change in Control” means the consummation of any one of the events specified in the following clauses (i) through (iii):

 

(i)     any third Person (including a “group,” as provided in Section 13(d)(3) of the Exchange Act) shall, after the date of the adoption of the Plan by the Board, first become the Beneficial Owner of shares of the voting capital stock of the Company with respect to which 25% or more of the total number of votes for the election of the Board of the Company may be cast;

 

(ii)     as a result of, or in connection with, any cash tender offer, exchange offer, merger, or other business combination, sale of assets, or contested election, or combination of the foregoing, the individuals who were directors of the Company immediately prior to such transaction or combination shall cease to constitute a majority of the Board of the Company; or

 

(iii)     the shareholders of the Company shall approve an agreement providing either for a transaction in which the Company will cease to be an independent publicly owned entity or for a sale or other disposition of all or substantially all the assets of the Company (including a sale of the common stock of the Bank if after such sale any Person other than the Company owns a majority of the Bank’s common stock, or a sale of all or substantially all of the Bank’s assets other than in the ordinary course of business);

 

NorthWest Indiana Bancorp Executive Change in Control Severance Plan

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provided that, the occurrence of any of such events set forth in this definition shall not be deemed a Change in Control if, prior to such occurrence, a resolution specifically providing that such occurrence shall not constitute a Change in Control under the Plan shall have been adopted by at least a majority of the Board of the Company.

 

“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

 

“Code” means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code shall be deemed to include a reference to any regulations promulgated thereunder.

 

“Company” has the meaning set forth in the first paragraph of this Plan.

 

“Compensation Committee” means the Compensation and Benefits Committee of the Board.

 

“Continuous Employment” means the continuous employment with the Company, the Bank, or any of their respective subsidiaries, but not, by way of clarification, employment with any entity acquired by the Company or Bank by merger or otherwise.

 

“Covered Payments” has the meaning set forth in Section 6.1.

 

“Covered Period” means the period of time beginning on the first occurrence of a Change in Control and lasting through the earlier of: (i) the Participant’s death; or (ii) the 18-month anniversary of the occurrence of the Change in Control.

 

“Effective Date” has the meaning set forth in the first paragraph of this Plan.

 

“Eligible Employee” means any full-time employee of the Company who is a President, Chief Financial Officer, Chief Operating Officer, or Executive Vice President, and any other full-time employee of the Company or the Bank who is recommended by the Chief Executive Officer of the Company to the Administrator to be a key employee who should be eligible to participate in the Plan, and who, in each case, as of the date of the occurrence of the Change in Control does not have a separate written agreement with the Company or the Bank which provides for the payment of severance or other compensation following a change in control (as such terms may be defined in such separate written agreement); provided that, in each case, such Person has at least three years of Continuous Employment with the Company. Eligible Employees shall be limited to a select group of management or highly compensated employees.

 

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

 

“Exchange Act” means the Securities and Exchange Act of 1934, as amended.

 

“Excise Tax” has the meaning set forth in Section 6.1.

 

NorthWest Indiana Bancorp Executive Change in Control Severance Plan

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“Good Reason” means any of the following, if taken without the Participant’s express written consent: (i) a reduction in the Participant’s annual base salary or target annual bonus opportunity as in effect immediately prior to a Change in Control; (ii) failure by the Company to continue, or the failure by the Company to obtain the agreement of any successor to the Company or the Bank to continue, any bonus plan in which the Participant participated immediately prior to the Change in Control, unless the Company or a successor of the Company or the Bank includes the Participant as a participant in a similar bonus plan after the Change in Control on at least the same basis as the Participant participated prior to the Change in Control; (iii) a relocation of the Participant’s principal place of employment to another geographic location more than 35 miles from the Participant’s present principal place of employment, except for required business travel to an extent substantially consistent with the Participant’s travel obligations immediately prior to such Change in Control; (iv) the Company’s failure to obtain an agreement from any successor to the Company or the Bank to assume and agree to perform the obligations under this Plan in the same manner and to the same extent that the Company would be required to perform, except where such assumption occurs by operation of law; or (v) a material, adverse change in the Participant’s title, reporting relationship, authority, duties, or responsibilities (other than temporarily while the Participant is physically or mentally incapacitated or as required by applicable law); provided that, notwithstanding the foregoing, if any of the above conditions in clauses (i) through (v) exists, the Participant cannot terminate his or her employment for Good Reason unless the Participant provides written notice to the Company of the existence of the circumstances providing grounds for termination for Good Reason and his or her intention to terminate his or her employment for Good Reason (the “Notice of Good Reason”) no more than 90 calendar days following the initial existence of such grounds, and the Company has had a period of 30 calendar days following the date of the Notice of Good Reason during which it may cure such circumstances, if curable.

 

“Net-Better Amount” has the meaning set forth in Section 6.1(b).

 

“Notice of Good Reason” has the meaning set forth in the proviso clause of the definition of Good Reason above.

 

“Parachute Payments” has the meaning set forth in Section 6.1.

 

“Participant” has the meaning set forth in Section 2.1.

 

“Person” has the meaning ascribed to it in Section 13(d)(3) of the Exchange Act.

 

“Plan” means this NorthWest Indiana Bancorp Executive Change in Control Severance Plan, as may be amended and/or restated from time to time.

 

“Qualifying Termination” means either: (i) the termination of a Participant’s employment during the Covered Period by the Company or the Bank, or by any successor to the Company or the Bank, without Cause; or (ii) both (A) an event of Good Reason occurs during the Covered Period, and (B) the Participant terminates his or her employment with the Company or the Bank, or with any successor to the Company or the Bank, for such event of Good Reason within 60 calendar days following the date of the Notice of Good Reason; provided that, notwithstanding any contrary provision herein, a Qualifying Termination shall not include a termination of the Participant’s employment by reason of the death or disability of a Participant.

 

NorthWest Indiana Bancorp Executive Change in Control Severance Plan

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“Reduced Amount” has the meaning set forth in Section 6.1(a).

 

“Release” has the meaning set forth in Article V, subsection (b).

 

“Specified Employee Payment Date” has the meaning set forth in Section 9.13(b).

 

Article II

Participation

 

Section 2.1     Participants. Each Eligible Employee shall be a “Participant” in the Plan. Notwithstanding the preceding sentence, the Administrator shall have the right, in its sole discretion, to remove a Participant from participation in the Plan; provided that, any such removal shall not be effective unless the Administrator provides written notice of removal to the Participant at least six months prior to the occurrence of a Change in Control.

 

Section 2.2     Change in Applicable Severance Multiplier. The Administrator may change any Participant’s Applicable Severance Multiplier at any time; provided that, no such change (to the extent that it is a reduction in the Applicable Severance Multiplier) shall be effective unless the Administrator provides written notice of such change to the Participant at least six months prior to the occurrence of a Change in Control.

 

Article III

Severance and Benefits

 

Section 3.1     Severance. If a Participant has a Qualifying Termination, then, subject to Articles V and VI and Section 9.13, the Company will provide the Participant with the payments and benefits set forth in the following subsections of this Section 3.1:

 

(a)     A cash severance payment in an amount equal to the product of (i) the Participant’s Applicable Severance Multiplier, multiplied by (ii) the sum of (A) the Participant’s base salary in effect on the date of the Qualifying Termination, or, if greater, in effect on the date of the first occurrence of a Change in Control, plus (B) the Bonus Amount.

 

(b)     A lump sum amount equal to 100% of the aggregate annual COBRA premium amounts (based on COBRA rates then in effect) for the medical and dental coverage that was being provided to the Participant and his or her spouse and eligible dependents as of the date of the Qualifying Termination.

 

(c)     A lump sum amount equal to 100% of the Company paid annual premiums in respect of the life insurance coverage provided for an active employee similarly situated to the Participant (based upon coverage and rates in effect on the date of the Participant’s Qualifying Termination).

 

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Section 3.2     Payment of Severance. Subject to Articles V and VI and Section 9.13, the amounts due to a Participant under Section 3.1 shall be paid in a single lump sum, in cash, on the later of (i) the 25th business day following the date of the Qualifying Termination; or (ii) the fifth business day following the date the Release described in Article V, subsection (b) becomes effective and irrevocable.

 

Article IV

Equity Awards

 

The Plan does not affect the terms of any outstanding equity awards of a Participant. The treatment of any outstanding equity awards shall be determined in accordance with the terms of the Company equity incentive plan or other similar plan under which they were granted and any applicable award agreements.

 

Article V

Conditions

 

A Participant’s entitlement to any benefits and payments under Articles III and IV will be subject to the following:

 

(a)     the Participant experiencing a Qualifying Termination; and

 

(b)     the Participant executing a release of claims in favor of the Company, the Bank, and their respective affiliates, officers, and directors in a form to be provided by the Company (the “Release”) and such Release becoming effective and irrevocable within 60 days following the Participant’s Qualifying Termination.

 

Article VI

Section 280G

 

Section 6.1     Reduction. Notwithstanding any contrary provision set forth in this Plan or any other plan, arrangement, or agreement between the Company or the Bank and the Participant, if any of the payments or benefits provided or to be provided by the Company or its affiliates to a Participant or for a Participant’s benefit pursuant to the terms of this Plan or otherwise (“Covered Payments”) constitute parachute payments within the meaning of Section 280G of the Code (“Parachute Payments”), and would, but for this Article VI, be subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the “Excise Tax”), then the Covered Payments shall be either:

 

(a)     reduced in the smallest amount necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax (such amount, the “Reduced Amount”); or

 

(b)     payable in full if the Participant’s receipt, on an after-tax basis, of the full amount of payments and benefits (after taking into account the applicable federal, state, local, and foreign income, employment, and excise taxes (including the Excise Tax)) would result in the Participant receiving an amount at least 10% greater than the after-tax Reduced Amount (such amount, the “Net-Better Amount”).

 

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Section 6.2     Order of Reduction. Any reduction in the Covered Payments pursuant to Section 6.1 shall be made in the manner determined by the Company in its sole discretion; provided that, any such reduction shall be consistent with the requirements of Section 409A of the Code.

 

Section 6.3     Determinations. Any determination under this Article VI of whether any Covered Payment constitutes a Parachute Payment, as well as the determination of the amount of any Excise Tax, Reduced Amount, or Net-Better Amount, shall be made in writing in good faith by the certified public accounting firm that was the Company’s independent auditor immediately prior to the occurrence of the Change in Control (the “Accountants”), which shall provide detailed supporting calculations to the Company and the Participant as requested by the Company. The Company and the Participant shall provide the Accountants with such information and documents as the Accountants may reasonably request in order to make their determinations under this Article VI. For purposes of making the calculations and determinations required by this Article VI, the Accountants may rely on reasonable, good faith assumptions and approximations concerning the application of Sections 280G and 4999 of the Code. The Accountants’ determinations shall be final and binding on the Company and the Participant. The Company shall be responsible for all fees and expenses of the Accountants in connection with the determinations required by this Article VI.

 

Article VII

Claims Procedures

 

Section 7.1     Initial Claims. Generally, a Participant does not need to file a claim for benefits under this Plan. If a Participant becomes entitled to a benefit hereunder, the Administrator will notify the Participant of his or her entitlement. However, if a Participant does not receive any such notification, or if the Participant disagrees with the amount of such entitlement, the Participant or his or her authorized representative must submit a written claim for benefits to the Administrator within 60 days after the Participant’s Qualifying Termination. Claims should be addressed and sent to the following person or any successor to the following person:

 

Robert T. Lowry, Chief Financial Officer

NorthWest Indiana Bancorp

9204 Columbia Avenue

Munster, Indiana 46321

 

If the Participant’s claim is denied, in whole or in part, the Participant will be furnished with written notice of the denial within 90 days after the Administrator’s receipt of the Participant’s written claim, unless special circumstances require an extension of time for processing the claim, in which case a period not to exceed 180 days will apply. If such an extension of time is required, written notice of the extension will be furnished to the Participant before the termination of the initial 90-day period and will describe the special circumstances requiring the extension and the date on which a decision is expected to be rendered. Written notice of the denial of the Participant’s claim will contain the following information:

 

(a)     the specific reason or reasons for the denial of the Participant’s claim;

 

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(b)     references to the specific Plan provisions on which the denial of the Participant’s claim was based;

 

(c)     a description of any additional information or material required by the Administrator to reconsider the Participant’s claim (to the extent applicable) and an explanation of why such material or information is necessary; and

 

(d)     a description of the Plan’s review procedures and time limits applicable to such procedures, including a statement of the Participant’s right to bring a civil action under Section 502(a) of ERISA following a benefit claim denial on review.

 

Section 7.2     Appeal of Denied Claims. If the Participant’s claim is denied and he or she wishes to submit a request for review of the denied claim, the Participant or his or her authorized representative must follow the procedures described below:

 

(a)     Upon receipt of the denied claim, the Participant (or his or her authorized representative) may file a request for review of the claim in writing with the Administrator. This request for review must be filed no later than 60 days after the Participant has received written notification of the denial.

 

(b)     The Participant has the right to submit in writing to the Administrator any comments, documents, records, or other information relating to his or her claim for benefits.

 

(c)     The Participant has the right to be provided with, upon request and free of charge, reasonable access to and copies of all pertinent documents, records, and other information that is relevant to his or her claim for benefits.

 

(d)     The review of the denied claim will take into account all comments, documents, records, and other information that the Participant submitted relating to his or her claim, without regard to whether such information was submitted or considered in the initial denial of his or her claim.

 

Section 7.3     Administrator’s Response to Appeal. The Administrator will provide the Participant with written notice of its decision within 60 days after the Administrator’s receipt of the Participant’s written claim for review. There may be special circumstances which require an extension of this 60-day period. In any such case, the Administrator will notify the Participant in writing within the 60-day period and the final decision will be made no later than 120 days after the Administrator’s receipt of the Participant’s written claim for review. The Administrator’s decision on the Participant’s claim for review will be communicated to the Participant in writing and will clearly state:

 

(a)     the specific reason or reasons for the denial of the Participant’s claim;

 

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(b)     reference to the specific Plan provisions on which the denial of the Participant’s claim is based;

 

(c)     a statement that the Participant’s is entitled to receive, upon request and free of charge, reasonable access to, and copies of, the Plan and all documents, records, and other information relevant to his or her claim for benefits; and

 

(d)     a statement describing the Participant’s right to bring an action under Section 502(a) of ERISA.

 

Section 7.4     Exhaustion of Administrative Remedies. The exhaustion of these claims procedures is mandatory for resolving every claim and dispute arising under the Plan. As to such claims and disputes:

 

(a)     no claimant shall be permitted to commence any legal action to recover benefits or to enforce or clarify rights under Sections 502 or 510 of ERISA or under any other provision of law, whether or not statutory, until these claims procedures have been exhausted in their entirety; and

 

(b)     in any such legal action, all explicit and implicit determinations by the Administrator (including, but not limited to, determinations as to whether the claim, or a request for a review of a denied claim, was timely filed) shall be afforded the maximum deference permitted by law.

 

Section 7.5     Attorneys’ Fees. The Company and each Participant shall bear their own attorneys’ fees incurred in connection with any disputes between them under this Plan; provided that, notwithstanding the foregoing, if, after compliance with the procedures set forth in this Article VII, it is determined that the Company or any successor of the Company has failed to pay the Participant amounts to which the Participant is entitled hereunder, and the amounts the Company or its successor has failed to pay exceeds $25,000, then the Participant shall be entitled to recover from the Company or its successor, as the case may be, all of the Participant’s reasonable and documented attorneys’ fees and expenses incurred in connection with the pursuit of the Participant’s claim hereunder.

 

Article VIII

Administration, Amendment, and Termination

 

Section 8.1     Administration. The Administrator has the exclusive right, power, and authority, in its sole and absolute discretion, to administer and interpret the Plan. The Administrator has all powers reasonably necessary to carry out its responsibilities under the Plan, including but not limited to, the sole and absolute discretionary authority to: (i) administer the Plan according to its terms and to interpret Plan policies and procedures; (ii) resolve and clarify inconsistencies, ambiguities, and omissions in the Plan among and between the Plan and other related documents; (iii) take all actions and make all decisions regarding questions of eligibility and entitlement to benefits, and benefit amounts; (iv) make, amend, interpret, and enforce all appropriate rules and regulations for the administration of the Plan; (v) process and approve or deny all claims for benefits; and (vi) decide or resolve any and all questions, including benefit entitlement determinations and interpretations of the Plan, as may arise in connection with the Plan. The decision of the Administrator on any disputes arising under the Plan, including but not limited to, questions of construction, interpretation, and administration, shall be final, conclusive, and binding on all persons having an interest in or under the Plan. Any determination made by the Administrator under this Plan shall be given deference in the event the determination is subject to judicial review and shall be overturned by a court of law only if it is arbitrary and capricious.

 

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Section 8.2     Duration. The Plan shall continue in existence unless and until terminated in accordance with Section 8.3.

 

Section 8.3     Amendment and Termination. The Company reserves the right to amend or terminate the Plan at any time prior to the occurrence of a Change in Control by providing at least six months advance written notice of such amendment or termination to each Participant. No amendment shall be made to the Plan following a Change in Control. Notwithstanding the foregoing, at any time prior to the occurrence of a Change in Control the Company may amend the Plan without advance written notice to the Participants if any such amendment (i) enhances the severance benefits provided hereunder; (ii) corrects inconsistencies or typographical errors herein; or (iii) makes other changes intended to protect the Participants, so long as any such amendment, in the reasonable determination of the Administrator, does not adversely affect the benefits provided to Participants under the Plan.

 

Article IX

General Provisions

 

Section 9.1     At-Will Employment. The Plan does not alter the status of each Participant as an at-will employee of the Company or the Bank, as applicable. Nothing contained herein shall be deemed to give any Participant the right to remain employed by the Company or the Bank, as applicable, or to interfere with the rights of the Company or the Bank, as applicable, to terminate the employment of any Participant at any time, with or without Cause.

 

Section 9.2     Effect on Other Plans, Agreements and Benefits.

 

(a)     Any severance benefits payable to a Participant under the Plan will be (i) in lieu of and not in addition to any severance benefits to which the Participant would otherwise be entitled under any general severance policy or severance plan maintained by the Company or any agreement between the Participant and the Company or the Bank, as applicable, that provides for severance benefits (unless the policy, plan, or agreement expressly provides for severance benefits to be in addition to those provided under the Plan); and (ii) reduced by any severance benefits to which the Participant is entitled by operation of a statute or government regulations.

 

(b)     Any severance benefits payable to a Participant under the Plan will not be counted as compensation for purposes of determining benefits under any other benefit policies or plans of the Company or the Bank, as applicable, except to the extent expressly provided therein.

 

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Section 9.3     Mitigation and Offset. If a Participant obtains other employment, such other employment will not affect the Participant’s rights or the Company’s obligations under this Plan. The Company’s obligation to make the payments and provide the benefits required under the Plan will not be affected by any circumstances, including without limitation, any set-off, counterclaim, recoupment, defense, or other rights that the Company may have against the Participant.

 

Section 9.4     Severability. The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision of the Plan. If any provision of the Plan is held by a court of competent jurisdiction to be illegal, invalid, void, or unenforceable, such provision shall be deemed modified, amended, and narrowed to the extent necessary to render such provision legal, valid, and enforceable, and the other remaining provisions of the Plan shall not be affected but shall remain in full force and effect.

 

Section 9.5     Headings and Subheadings. Headings and subheadings contained in the Plan are intended solely for convenience, and no provision of the Plan is to be construed by reference to the heading or subheading of any section or paragraph.

 

Section 9.6     Unfunded Obligations. The amounts to be paid to Participants under the Plan are unfunded obligations of the Company. The Company is not required to segregate any monies or other assets from its general funds with respect to these obligations. Participants shall not have any preference or security interest in any assets of the Company other than as a general unsecured creditor.

 

Section 9.7     Successors. The Plan will be binding upon any successor to the Company, in the same manner and to the same extent that the Company would be obligated under the Plan if no succession had taken place. In the case of any transaction in which a successor would not by the foregoing provision or by operation of law be bound by the Plan, the Company shall require any successor to the Company to expressly and unconditionally assume the Plan in writing and honor the obligations of the Company hereunder, in the same manner and to the same extent that the Company would be required to perform if no succession had taken place. All payments and benefits that become due to a Participant under the Plan will inure to the benefit of his or her heirs, assigns, designees, or legal representatives.

 

Section 9.8     Transfer and Assignment. Neither a Participant nor his or her permitted successors shall have any right to sell, assign, transfer, pledge, anticipate, or otherwise encumber, transfer, hypothecate, or convey any amounts payable under the Plan prior to the date that such amounts are paid.

 

Section 9.9     Waiver. Any party’s failure to enforce any provision or provisions of the Plan will not in any way be construed as a waiver of any such provision or provisions, nor prevent any party from thereafter enforcing each and every other provision of the Plan.

 

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Section 9.10     Governing Law. The Plan shall be construed in accordance with and governed by the laws of the State of Indiana without regard to conflicts of law principles. Any action or proceeding to enforce the provisions of the Plan will be brought only in a state or federal court located in the State of Indiana, County of Lake, and each party consents to the venue and jurisdiction of such court. The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue.

 

Section 9.11     Clawback. Any amounts payable under the Plan are subject to any policy (whether in existence as of the Effective Date or later adopted) established by the Company prior to the occurrence of a Change in Control providing for clawback or recovery of amounts that were paid to the Participant. The Company will make any determination for clawback or recovery in accordance with the policy and with any applicable law or regulation.

 

Section 9.12     Withholding. The Company shall have the right to withhold from any amount payable hereunder any federal, state, and local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.

 

Section 9.13     Section 409A.

 

(a)     The Plan is intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed and administered in accordance with Section 409A of the Code. Notwithstanding any other provision of the Plan, payments provided under the Plan may only be made upon an event and in a manner that complies with Section 409A of the Code or an applicable exemption. Any payments under the Plan that may be excluded from Section 409A of the Code either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A of the Code to the maximum extent possible. For purposes of Section 409A of the Code, each installment payment provided under the Plan shall be treated as a separate payment. Any payments to be made under the Plan upon a termination of employment shall only be made upon a “separation from service” under Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under the Plan comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest, or other expenses that may be incurred by a Participant on account of non-compliance with Section 409A of the Code.

 

(b)     Notwithstanding any other provision of the Plan, if any payment or benefit provided to a Participant in connection with his or her Qualifying Termination is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code and the Participant is determined to be a “specified employee” as defined in Section 409A(a)(2)(B)(i) of the Code, then such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the Qualifying Termination or, if earlier, on the Participant’s death (the “Specified Employee Payment Date”). The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date shall be paid to the Participant in a lump sum on the Specified Employee Payment Date, and thereafter any remaining payments shall be paid without delay in accordance with their original schedule. Notwithstanding any other provision of the Plan, if any payment or benefit is conditioned on the Participant’s execution of a Release, the first payment shall include all amounts that would otherwise have been paid to the Participant during the period beginning on the date of the Qualifying Termination and ending on the payment date if no delay had been imposed.

 

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(c)     To the extent required by Section 409A of the Code, each reimbursement or in-kind benefit provided under the Plan shall be provided in accordance with the following: (i) reimbursement of any expense shall be made promptly after the expense is incurred, but in no event later than December 31 of the year after the year in which the expense was incurred; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; and (iii) any right to reimbursements or in-kind benefits under the Plan shall not be subject to liquidation or exchange for another benefit.

 

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