Document:

exv10w36

 

EXHIBIT
10.36

ALLERGAN

2007

MANAGEMENT BONUS PLAN

 

 

PURPOSE OF THE PLAN

The Allergan, Inc. 2007 Management Bonus Plan (the “Plan”) is designed to reward eligible
management-level employees for their contributions to providing Allergan’s stockholders increased
value for their investment through the successful accomplishment of specific financial objectives
and individual performance objectives.

PLAN YEAR

The Plan year runs from January 1, 2007 through December 31, 2007.

ELIGIBILITY

All regular full-time and part-time employees of Allergan, Inc. and its subsidiaries (the
“Company”) scheduled to work 20 or more hours per week in salary grades 7E and above who are not
covered by any other bonus or sales incentive plan are eligible to participate in the Plan.
Notwithstanding anything in this Plan to the contrary, any individual shall not be eligible to
participate in the Plan if such individual (a) performs services for the Company and is classified
or paid as an independent contractor (regardless of his or her classification for federal tax or
other legal purposes) by the Company or (b) performs services for the Company pursuant to an
agreement between the Company and any other person including a leasing organization. Participants
must be employed on or before June 30, 2007 in order to be eligible to receive a bonus.
Participants must be actively employed by the Company on the date bonuses are paid in order to be
eligible to receive a bonus. Participants who resign or are terminated for reasons other than those
noted below will receive no bonus.

Bonuses, if any, for participants who become eligible after the beginning of the plan year, retire
(“normal retirement” is defined as termination of employment after the Plan participant has
attained age 55, provided that such participant has been employed by the Company for a minimum of 5
years), become disabled, die or transfer into a position covered by another incentive plan will be
prorated. Bonuses, if any, for participants who are laid-off will be prorated provided the
participant was eligible for at least six months of the Plan year. All proration will be based on
the number of months of participation in the Plan during the Plan year.

PERFORMANCE OBJECTIVES

Bonuses for Plan participants are based on both corporate performance and individual
performance in relation to pre-established objectives, as follows:

CORPORATE OBJECTIVES

	u	 	Earnings Per Share (“EPS”)—EPS is defined as adjusted
net earnings from continuing operations as measured by Wall
Street divided by the weighted average number of common and
common equivalent shares on a diluted basis.
	 
	u 	 	 Revenue Growth in Local Currency—Net sales stated in
constant local currency compared to the prior year.
Specifically defined as the percentage change in annual net
sales in constant local currency from the previous fiscal year
end to the current fiscal year end (“Revenue Growth”). The
purpose of net sales stated in constant local currency is to
remove any impact on net sales growth from changes in currency
exchange rates from year to year.
	 
	u 	 	 Research and Development (“R&D”) Reinvestment Rate—R&D
expense as a percentage of revenue. Specifically defined as
the total annual R&D expense as a percentage of annual net
sales as of the current fiscal year end.
	 
	u 	 	 Operating Income—Operating Income compared to budget
will be considered for allocation of bonus pools by Business
Unit/Function. Operating Income is defined as Net Sales minus
Cost of Goods minus Selling and General Administrative expenses minus Research & Development
minus allocated corporate interest where applicable.

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INDIVIDUAL OBJECTIVES

Management Bonus Objectives (“MBOs”) are prepared by each participant and his or her supervisor at
the beginning of the Plan year and may be modified throughout the year as necessary. Objectives
should reflect major results and accomplishments to be achieved in order to meet short and
long-term business goals that contribute to increased stockholder value. MBOs are expressed as
specific, quantifiable measures of performance in relation to key operating decisions for the
participant’s business unit, such as managing inventory levels, receivables, expenses, payables,
increasing sales, eliminating unnecessary capital expenditures, etc.

At the end of the Plan year, the supervisor evaluates the participant’s performance in relation to
his or her objectives in order to determine the size of the bonus award, if any. A more detailed
description of how the award is calculated is provided under “Individual Bonus Award Calculation.”

BONUS POOL CALCULATION

The components of this calculation for bonus pool funding are: (1) EPS, (2) Revenue Growth and
(3) R&D Reinvestment Rate.

BONUS POOL FUNDING —Bonuses are funded when the Company achieves a threshold level
of target EPS performance. The level of bonus funding is determined by EPS
performance, Revenue Growth and R&D Reinvestment Rate as outlined in the table below.

	u	 	Earnings Per Share, Revenue Growth and R&D Reinvestment Rate

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	R&D	 	 	 	TOTAL
	2007 EPS	 	BONUS
%	 	REVENUE	 	BONUS
%	 	REINVEST.	 	BONUS
%	 	BONUS % OF
	RANGE	 	OF TARGET	 	GROWTH	 	OF TARGET	 	RATE	 	OF TARGET	 	TARGET
	 
	-$0.150
	 	 	0.0	%	 	 	15.1	%	 	 	0.0	%	 	 	15.31	%	 	 	0.0	%	 	 	0.0	%
	-$0.120
	 	 	50.0	%	 	 	16.1	%	 	 	2.0	%	 	 	15.56	%	 	 	2.0	%	 	 	54.0	%
	-$0.090
	 	 	60.0	%	 	 	17.1	%	 	 	4.0	%	 	 	15.81	%	 	 	4.0	%	 	 	68.0	%
	-$0.060
	 	 	70.0	%	 	 	18.1	%	 	 	6.0	%	 	 	16.06	%	 	 	6.0	%	 	 	82.0	%
	-$0.03
	 	 	80.0	%	 	 	19.1	%	 	 	8.0	%	 	 	16.31	%	 	 	8.0	%	 	 	96.0	%
	Target
	 	 	90.0	%	 	 	20.1	%	 	 	10.0	%	 	 	16.56	%	 	 	10.0	%	 	 	110.0	%
	$0.025
	 	 	95.0	%	 	 	21.1	%	 	 	13.8	%	 	 	16.81	%	 	 	13.8	%	 	 	122.5	%
	$0.050
	 	 	100.0	%	 	 	22.1	%	 	 	17.5	%	 	 	17.06	%	 	 	17.5	%	 	 	135.0	%
	$0.075
	 	 	105.0	%	 	 	23.1	%	 	 	21.3	%	 	 	17.31	%	 	 	21.3	%	 	 	147.5	%
	$0.100
	 	 	110.0	%	 	 	24.1	%	 	 	25.0	%	 	 	17.56	%	 	 	25.0	%	 	 	160.0	%

Revenue Growth and R&D Reinvestment Rate bonus funding may not exceed target unless EPS
performance is equal to or greater than target. If actual results fall between the performance
levels shown above, bonuses will be prorated accordingly.

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BONUS POOL DIFFERENTIATION BY BUSINESS UNIT/FUNCTION

	u 	 	 Operating Income—The target bonus pool
determined by EPS, Revenue Growth and R&D
Reinvestment Rate performance is modified for
each business unit/function based on
Operating Income results vs. budget. That is, a business unit that exceeds budget will receive
a greater share of the total Company pool than a business unit that is below budget.

At the end of the year, the Chief Executive Officer of Allergan, Inc. may recommend adjustments to
the bonus funding levels to the Organization and Compensation Committee (the “Committee”) after
consideration of key operating results. When calculating corporate performance for purposes of
this Plan, the Committee has the discretion to include or exclude any or all of the following
items:

	 	•	 	extraordinary, unusual or non-recurring items
	 
	 	•	 	effects of accounting changes
	 
	 	•	 	effects of financing activities
	 
	 	•	 	expenses for restructuring or productivity initiatives
	 
	 	•	 	other non-operating items
	 
	 	•	 	spending for acquisitions
	 
	 	•	 	effects of divestitures
	 
	 	•	 	amortization of acquired intangible assets

INDIVIDUAL BONUS AWARD CALCULATION

Target bonus awards are expressed as a percentage of the participant’s year-end annualized
base salary. The target percentages vary by salary grade (see Attachment No. 1).

A participant’s actual bonus award may vary above or below the targeted level based on the
supervisor’s evaluation of his or her performance in relation to the predetermined MBOs. Each
participant’s actual bonus award may be modified down to 0% or up to 150% of his or her target
bonus amount. However, the total of all bonus awards given within each business unit must total no
more than 100% of the total bonus pool dollars allocated to that business unit.

METHOD OF PAYMENT

For grade 8 Directors and above, bonuses are paid in cash up to a maximum bonus pool equal to
100% of participants’ bonus targets and performance over such pool is paid in restricted stock or
restricted stock units with cliff vesting two years from the award effective date. Any payment in
the form of stock will be issued under the Incentive Compensation Plan. Upon a recipient’s normal
retirement eligibility date (defined as the date on which the recipient has (i) attained age 55 and
(ii) been employed by the Company for a minimum of 5 years) all of the restrictions imposed on the
recipient’s restricted stock shall lapse. For grade 7 participants, all bonuses are paid in cash.
Bonus awards are paid following the close of the Plan year after the review and authorization of
bonuses by the Committee. Bonuses will be paid within 30 days following management communication of
the award, through the participant’s normal payroll channel. In the event of a Change in Control
(as defined in Attachment No. 2), bonuses will be paid within 30 days of the effective date of the
Change in Control.

CHANGE IN CONTROL

If a Change in Control occurs after the close of the Plan year and Company performance
supports bonus pool funding, participants will be paid a bonus based on performance in relation to
the EPS, Revenue Growth and R&D Reinvestment Rate targets.

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If the Change in Control occurs during the Plan year, participants will be paid a bonus prorated to
the effective date of the Change in Control and EPS, Revenue Growth and R&D Reinvestment Rate
performance will be deemed to be the greater of:

	 	•	 	100% of the EPS, Revenue Growth and R&D Reinvestment Rate targets or

	 
	 	•	 	the prorated actual year-to-date performance

In either case, a participant’s actual bonus may vary above or below the targeted level according
to the provisions outlined in “Individual Bonus Award Calculation” above. Participants must be
employed by the Company or its successor on the effective date of the Change in Control in order to
receive the prorated payment, unless their employment is terminated for retirement, death,
disability or otherwise without cause. For purposes of this plan, “cause” shall be limited to only
three types of events: the willful refusal to comply with a lawful, written instruction of the
Board so long as the instruction is consistent with the scope and responsibilities of the
participant’s position prior to the Change in Control; dishonesty which results in a material
financial loss to the Company (or to any of its affiliated companies) or material injury to its
public reputation (or to the public reputation of any of its affiliated companies); or conviction
of any felony involving an act of moral turpitude.

GENERAL

Management reserves the right to define corporate performance and individual performance and
to review, alter, amend, or terminate the Plan at any time subject to approval of the Committee.
This Plan does not constitute a contract of employment and cannot be relied upon as such. Any
questions regarding this Plan should be directed to the Human Resources department or the Vice
President, Compensation and Benefits. This Management Bonus Plan document supersedes any previous
document you may have received.

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ATTACHMENT NO. 1

ALLERGAN

2007 MANAGEMENT BONUS PLAN

TARGET AWARDS

	 	 	 	 	 
	 	 	US	 	Intl
	Salary Grade	 	Target Bonus	 	Target Bonus
	7E
	 	12%	 	15%
	8E
	 	17%	 	20%
	9E
	 	23%	 	25%
	10E
	 	25%	 	30%
	11E
	 	35%	 	35%
	12E
	 	35%	 	40%
	13E
	 	40%	 	45%
	14E
	 	50%	 	 
	15E
	 	60%	 	 

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ATTACHMENT NO. 2

CHANGE IN CONTROL DEFINITION

“Change in Control” shall mean the following and shall be deemed to occur if any of the
following events occur:

         (a) Any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) (a “Person”), is or becomes the “beneficial
owner,” as defined in Rule 13d-3 under the Exchange Act (a “Beneficial Owner”), directly or
indirectly, of securities of Allergan, Inc., a Delaware corporation (“Allergan”) representing (i)
20% or more of the combined voting power of Allergan’s then outstanding voting securities, which
acquisition is not approved in advance of the acquisition or within 30 days after the acquisition
by a majority of the Incumbent Board (as hereinafter defined) or (ii) 33% or more of the combined
voting power of Allergan’s then outstanding voting securities, without regard to whether such
acquisition is approved by the Incumbent Board;

         (b) Individuals who, as of the date hereof, constitute the Board of Directors of Allergan
(the “Incumbent Board”), cease for any reason to constitute at least a majority of the Board of
Directors, provided that any person becoming a director subsequent to the date hereof whose
election, or nomination for election by Allergan’s stockholders, is approved by a vote of at least
a majority of the directors then comprising the Incumbent Board (other than an election or
nomination of an individual whose initial assumption of office is in connection with an actual or
threatened election contest relating to the election of the directors of Allergan, as such terms
are used Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) shall, for the purposes
of this Agreement, be considered as though such person were a member of the Incumbent Board of
Allergan;

         (c) The consummation of a merger, consolidation or reorganization involving Allergan, other
than one which satisfies both of the following conditions:

              (1) a merger, consolidation or reorganization which would result in the voting securities of
Allergan outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of another entity) at least 55% of the
combined voting power of the voting securities of Allergan or such other entity resulting from the
merger, consolidation or reorganization (the “Surviving Corporation”) outstanding immediately after
such merger, consolidation or reorganization and being held in substantially the same proportion as
the ownership in Allergan’s voting securities immediately before such merger, consolidation or
reorganization, and

              (2) a merger, consolidation or reorganization in which no Person is or becomes the
Beneficial Owner directly or indirectly, of securities of Allergan representing 20% or more of the
combined voting power of Allergan’s then outstanding voting securities; or

         (d) The stockholders of Allergan approve a plan of complete liquidation of Allergan or an
agreement for the sale or other disposition by Allergan of all or substantially all of Allergan’s
assets.

Notwithstanding the preceding provisions of this Section, a Change in Control shall not be deemed
to have occurred if the Person described in the preceding provisions of this Section is (1) an
underwriter or underwriting syndicate that has acquired the ownership of any of Allergan’s then
outstanding voting securities solely in connection with a public offering of Allergan’s securities,
(2) Allergan or any subsidiary of Allergan or (3) an employee stock ownership plan or other
employee benefit plan maintained by Allergan (or any of its affiliated companies) that is qualified
under the provisions of the Internal Revenue Code of 1986, as amended. In addition,
notwithstanding the preceding provisions of this Section, a Change in Control shall not be deemed
to have occurred if the Person described in the preceding provisions of this Section becomes a
Beneficial Owner of more than the permitted amount of outstanding securities as a result of the
acquisition of voting securities by Allergan which, by reducing the number of voting securities
outstanding, increases the proportional number of shares beneficially owned by such Person,
provided, that if a Change in Control would occur but for the operation of this sentence and such
Person becomes the Beneficial Owner of any additional voting securities (other than through the
exercise of options granted under any stock option plan of Allergan or through a stock dividend or
stock split), then a Change in Control shall occur.

Page -6-exv10wxwy

 

EXHIBIT 10(w)

OLD NATIONAL BANCORP

1999 EQUITY INCENTIVE PLAN

“PERFORMANCE-BASED” RESTRICTED STOCK AWARD AGREEMENT

     THIS AWARD AGREEMENT (the “Agreement”), made and executed as of the 25th day of January,
2007, between Old National Bancorp, an Indiana corporation (the “Company”), and
                                        , an officer or employee of the Company or one of its Affiliates (the
“Participant”).

WITNESSETH:

     WHEREAS, the Company has adopted the Old National Bancorp 1999 Equity Incentive Plan (the
“Plan”) to further the growth and financial success of the Company and its Affiliates by aligning
the interests of Participants, through the ownership of Shares and through other incentives, with
the interests of the Company’s shareholders; to provide Participants with an incentive for
excellence in individual performance; and to promote teamwork among Participants; and

     WHEREAS, it is the view of the Company that this goal can be achieved by granting Restricted
Stock to eligible officers and other key employees; and

     WHEREAS, the Participant has been designated by the Compensation Committee as an individual to
whom Restricted Stock should be granted as determined from the duties performed, the initiative and
industry of the Participant, and his or her potential contribution to the future development,
growth and prosperity of the Company;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained,
the Company and the Participant agree as follows:

     1. Award of Restricted Stock. The Company hereby awards to the Participant
                                         (                    ) Shares of performance-based Restricted Stock (hereinafter, the
“Restricted Stock”), subject to the terms and conditions of this Agreement and the provisions of
the Plan. This award will be earned if target level performance is achieved. All provisions of
the Plan, including defined terms, are incorporated herein and expressly made a part of this
Agreement by reference. The Participant hereby acknowledges that he or she has received a copy of
the Plan.

     2. Performance Goals. Except as otherwise provided in Sections 4 and 5 of this Agreement,
the Restricted Stock will be treated as earned to the extent the Performance Goals specified in
Exhibit A are satisfied. To the extent the Performance Goals are not satisfied (with the
result that either no Shares or less than all Shares of Restricted Stock have been earned), then
the unearned Shares will be forfeited, effective as of the last day of the Performance Period,
regardless of whether the Period of Restriction has otherwise lapsed under Section 3 of this
Agreement. To the extent the Performance Goals are exceeded, the participant will earn 100% of the
shares awarded in Section 1, plus the participant will be awarded additional shares in accordance
with the schedule set forth Exhibit A (Calculation of Performance). For example, if the Performance
Level is 130%, the participant will be awarded additional shares equal to 30% of the shares awarded
in Section 1. Notwithstanding the preceding provisions on this Section, the Compensation Committee
may, in its discretion, reduce the number of Shares treated as earned, if it determines that a
significant corporate transaction or other event during the Performance Period, other than the
acquisition of St. Joseph Capital Corporation, either alone or in combination with other
transactions or events, has distorted the intent of one or more of the Performance Goals.

     3. Period of Restriction. The Period of Restriction shall begin on the Grant Date and lapse, except as otherwise
provided in Sections 2, 4 and 5 of this Agreement, on February 1, 2010.

 

 

     4. Change in Control. Notwithstanding any other provision of this Agreement, any
Shares of Restricted Stock, as stated in Section 1, which have not been earned or are subject to
the Period of Restriction, shall be treated as fully earned and the Period of Restriction shall
lapse upon a Change in Control of the Company as provided in Section 12.1 of the Plan.

     5. Termination of Service. Notwithstanding any other provision of this Agreement, in
the event of the Participant’s Termination of Service due to death, Disability or Retirement, the
following shall apply:

	 	(a)	 	If the Participant’s Termination of Service is due to death, the (i) Period of
Restriction shall lapse, and (ii) the Shares shall be treated as earned, at the
“Target” level specified in Exhibit A, effective as of the date of death.
	 
	 	(b)	 	If the Participant’s Termination of Service is due to Disability or Retirement,
(i) he shall continue to be treated as a Participant, (ii) the Period of Restriction
shall lapse at the time specified in Section 3 of this Agreement, and (iii) the Shares
shall be treated as earned to the extent the applicable Performance Goals are
satisfied; provided, however, that if the Participant dies prior to the end of the
Period of Restriction, then the provisions of subsection (a) of this Section 5 shall
apply.

     Unless otherwise determined by the Committee in its sole discretion, in the event of the
Participant’s Termination of Service for any other reason, any Shares of Restricted Stock which
have not been earned and/or with respect to which the Period of Restriction has not lapsed, shall
be forfeited effective as of the date of the Participant’s Termination of Service.

     6. Dividends on Restricted Stock. During the Period of Restriction, the Participant
shall be entitled to receive any cash dividends paid with respect to the Shares of Restricted
Stock, regardless of whether such Shares have been earned or the Period of Restriction has not
lapsed. All stock dividends paid with respect to Shares of Restricted Stock shall be (a) added to
the Restricted Stock, and (b) subject to all of the terms and conditions of this Agreement and the
Plan.

     7. Voting Rights. During the Period of Restriction, the Participant may exercise all
voting rights with respect to the Shares of Restricted Stock as if he or she is the owner thereof.

     8. Participant’s Representations. The Participant represents to the Company that:

	 	(a)	 	The terms and arrangements relating to the grant of Restricted Stock and the
offer thereof have been arrived at or made through direct communication with the
Company or person acting in its behalf and the Participant;
	 
	 	(b)	 	The Participant has received a balance sheet and income statement of the
Company and as an officer or key employee of the Company:

	 	(i)	 	is thoroughly familiar with the Company’s business affairs and
financial condition and
	 
	 	(ii)	 	has been provided with or has access to such information (and
has such knowledge and experience in financial and business matters that the
Participant
is capable of utilizing such information) as is necessary to evaluate the
risks, and make an informed investment decision with respect to, the grant
of Restricted Stock; and

	 	(c)	 	The Restricted Stock is being acquired in good faith for investment purposes
and not with a view to, or for sale in connection with, any distribution thereof.

     9. Income and Employment Tax Withholding. All required federal, state, city and local
income and employment taxes which arise on the satisfaction of the Performance Goals and the lapse
of

2

 

the Period of Restriction shall be satisfied through the (a) withholding of the Shares required
to be issued under Section 11, or (b) tendering by the Participant of Shares which are owned by the
Participant, as described in Section 6.6(a) of the Plan. The Fair Market Value of the Shares to be
withheld or tendered shall be equal to the dollar amount of the Company’s aggregate withholding tax
obligations, calculated as of the day prior to the day on which the Period of Restriction ends.

     10. Nontransferability. Until the end of the Period of Restriction, the Restricted
Stock cannot be (i) sold, transferred, assigned, margined, encumbered, bequeathed, gifted,
alienated, hypothecated, pledged or otherwise disposed of, whether by operation of law, whether
voluntarily or involuntarily or otherwise, other than by will or by the laws of descent and
distribution; or (ii) subject to execution, attachment or similar process. Any attempted or
purported transfer of Restricted Stock in contravention of this Section 10 or the Plan shall be
null and void ab initio and of no force or effect whatsoever.

     11. Issuance of Shares. At or within a reasonable period of time following execution
of this Agreement, the Company will issue, in book entry form, the Shares representing the
Restricted Stock.

     As soon as administratively practicable following the date on which the Shares of Restricted
Stock are earned and the Period of Restriction lapses, the Company will issue to the Participant or
his Beneficiary the number of Shares of Restricted Stock specified in Exhibit A, less any
withholdings required by Section 9 of this Agreement. In the event of the Participant’s death
before the Shares are issued, such stock certificate will be issued to the Participant’s
Beneficiary or estate in accordance with Section 14.7 of the Plan.

     Notwithstanding the foregoing provisions of this Section 11, the Company will not be required
to issue or deliver any certificates for Shares prior to (i) completing any registration or other
qualification of the Shares, which the Company deems necessary or advisable under any federal or
state law or under the rulings or regulations of the Securities and Exchange Commission or any
other governmental regulatory body; and (ii) obtaining any approval or other clearance from any
federal or state governmental agency or body, which the Company determines to be necessary or
advisable. The Company has no obligation to obtain the fulfillment of the conditions specified in
the preceding sentence. As a further condition to the issuance of certificates for Shares, the
Company may require the making of any representation or warranty which the Company deems necessary
or advisable under any applicable law or regulation. Under no circumstances shall the Company
delay the issuance of shares pursuant to this Section to a date that is later than 2-1/2 months
after the end of the calendar year in which the Period of Restriction lapses, unless issuance of
the shares would violate federal securities law or other applicable law, in which case the Company
shall issue such shares as soon as administratively feasible after such issuance would no longer
violate such laws.

     Notwithstanding the preceding provisions of this Section or any other provision of this
Agreement, no Shares of Restricted Stock shall be transferred to the Participant to the extent that
the Compensation Committee has determined that such transfer would result in the Participant’s
compensation for the year exceeding the applicable compensation limit under Code Section 162(m).
Shares of Restricted Stock whose transfer is affected by the preceding sentence shall be
transferred to the Participant on the earliest date thereafter on which the transfer would not, in
the Compensation Committee’s judgment, result in the
Participant’s compensation for the year exceeding the applicable compensation limit under Code
Section 162(m).

     12. Mitigation of Excise Tax. Except to the extent otherwise provided in a written
agreement between the Company and the Participant, the Restricted Stock issued hereunder is subject
to reduction by the Committee for the reasons specified in Section 14.10 of the Plan.

     13. Indemnity. The Participant hereby agrees to indemnify and hold harmless the
Company and its Affiliates (and their respective directors, officers and employees), and the
Committee, from and against any and all losses, claims, damages, liabilities and expenses based
upon or arising out of the incorrectness or alleged incorrectness of any representation made by the
Participant to the Company or any failure on the part of the Participant to perform any agreements
contained herein. The Participant

3

 

hereby further agrees to release and hold harmless the Company
and its Affiliates (and their respective directors, officers and employees) from and against any
tax liability, including without limitation, interest and penalties, incurred by the Participant in
connection with his or her participation in the Plan.

     14. Financial Information. The Company hereby undertakes to deliver to the
Participant, at such time as they become available and so long as the Period of Restriction has not
lapsed and the Restricted Stock has not been forfeited, a balance sheet and income statement of the
Company with respect to any fiscal year of the Company ending on or after the date of this
Agreement.

     15. Changes in Shares. In the event of any change in the Shares, as described in
Section 4.5 of the Plan, the Committee will make appropriate adjustment or substitution in the
Shares of Restricted Stock, all as provided in the Plan. The Committee’s determination in this
respect will be final and binding upon all parties.

     16. Effect of Headings. The descriptive headings of the Sections and, where
applicable, subsections, of this Agreement are inserted for convenience and identification only and
do not constitute a part of this Agreement for purposes of interpretation.

     17. Controlling Laws. Except to the extent superseded by the laws of the United
States, the laws of the State of Indiana, without reference to the choice of law principles
thereof, shall be controlling in all matters relating to this Agreement.

     18. Counterparts. This Agreement may be executed in two (2) or more counterparts,
each of which will be deemed an original, but all of which collectively will constitute one and the
same instrument.

     IN WITNESS WHEREOF, the Company, by its officer thereunder duly authorized, and the
Participant, have caused this Restricted Stock Award Agreement to be executed as of the day and
year first above written.

PARTICIPANT

	 	 	 	 	 
	 

Signature

	 	 

Printed Name
	 	 

OLD NATIONAL BANCORP

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Allen R. Mounts

EVP, Chief Human Resources Officer

Old National Bancorp	 	 

4

 

EXHIBIT A

Grant Date: January 25, 2007

Shares of Restricted Stock Awarded: See Section 1 of the Agreement

Performance Period: January 1, 2007 through December 31, 2009

OVERVIEW

To continue its objective of focusing the executive officers on creation of stockholder value, Old
National Bancorp’s Compensation Committee has approved a 3-year Performance Based Restricted Stock
award to executive officers, which could be earned on December 31, 2009 based on the collective
results of the following three performance factors:

	 	1.	 	Earnings Per Share (EPS) Growth
	 
	 	2.	 	Total Revenue (defined as net interest income and total non-interest income, as
reflected in year end financial statements) Growth
	 
	 	3.	 	Net Charge Off Ratio

DEFINITION OF PERFORMANCE FACTORS

Earnings Per Share (EPS):

Earnings Per Share is defined as GAAP EPS, disregarding, however, extraordinary items and
non-recurring charges, both as determined under GAAP, recognized in a period after the quarter
ending March 31, 2007.

Total Revenue:

The sum of net interest income and total non-interest income (as reflected in year-end financial
statements), disregarding, however, extraordinary items, as determined under GAAP, recognized in a
period after the quarter ending March 31, 2007.

Net Charge Off Ratio:

Net Charge Off Ratio is defined as the three year average ratio of Net Charge Offs to Average Loans
for the periods ending 2007, 2006 and 2009.

PERFORMANCE WEIGHTS

“Performance Weight” equals the relative importance of each performance measure in evaluating
performance and determining the number of Performance Based Restricted Shares earned. The
following weight has been assigned to each performance factor:

	 	 	 	 	 	 	 	 	 
	EPS	 	Revenue	 	 
	Growth	 	Growth	 	Net Charge Off Ratio
	50%

	 	 	25	%	 	 	25	%

 

 

CALCULATION OF PERFORMANCE

For each Performance Factor, the performance level (1) will be determined at the end of
the performance period. The performance level will then be multiplied times the Performance Weight
for each Performance Factor, resulting in Old National’s Weighted Average Performance Level.
(1) The table below shows the percent of the Shares Awarded (Section 1 of Agreement)
that may be earned at various performance levels:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	2009 Total	 	Net Charge Off	 	 
	Performance	 	2009 GAAP	 	Revenue	 	Ratio (3yr	 	Performance
	Range	 	EPS	 	($000)	 	Average)	 	Level
	MAXIMUM
	 	$	1.44	 	 	$	455,083	 	 	 	0.200	%	 	 	200	%
	 
	 	 	 	 	 	 	451,328	 	 	 	0.210	%	 	 	190	%
	 
	 	 	1.43	 	 	 	447,572	 	 	 	0.220	%	 	 	180	%
	 
	 	 	 	 	 	 	443,817	 	 	 	0.230	%	 	 	170	%
	 
	 	 	1.41	 	 	 	440,061	 	 	 	0.240	%	 	 	160	%
	 
	 	 	 	 	 	 	436,306	 	 	 	0.250	%	 	 	150	%
	 
	 	 	1.40	 	 	 	432,550	 	 	 	0.260	%	 	 	140	%
	 
	 	 	 	 	 	 	428,795	 	 	 	0.270	%	 	 	130	%
	 
	 	 	1.39	 	 	 	425,039	 	 	 	0.280	%	 	 	120	%
	 
	 	 	 	 	 	 	421,284	 	 	 	0.290	%	 	 	110	%
	TARGET
	 	$	1.38	 	 	 	417,528	 	 	 	0.300	%	 	 	100	%
	 
	 	 	1.37	 	 	 	414,546	 	 	 	0.325	%	 	 	90	%
	 
	 	 	1.36	 	 	 	411,565	 	 	 	0.350	%	 	 	80	%
	 
	 	 	1.34	 	 	 	408,583	 	 	 	0.375	%	 	 	70	%
	 
	 	 	1.33	 	 	 	405,602	 	 	 	0.400	%	 	 	60	%
	 
	 	 	1.32	 	 	 	402,620	 	 	 	0.425	%	 	 	50	%
	 
	 	 	1.31	 	 	 	399,638	 	 	 	0.450	%	 	 	40	%
	 
	 	 	1.29	 	 	 	396,657	 	 	 	0.475	%	 	 	30	%
	MINIMUM
	 	$	1.28	 	 	 	393,675	 	 	 	0.500	%	 	 	25	%

Example 1:

 

			
	*	 	The results for a given Performance Factor will be reduced to the next lowest level if the
final financial result does not equal one of the levels listed in the above schedule. For Example:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	2009 Total	 	Net Charge	 	 
	 	 	2009 GAAP	 	Revenue	 	Off Ratio (3yr	 	 
	 	 	EPS	 	($000)	 	Average)	 	Total
	Actual Results
	 	$	1.39	 	 	$	412,000	 	 	 	0.395	%	 	 	 	 
	Adjusted Results
	 	$	1.39	 	 	 	411,565	 	 	 	0.400	%	 	 	 	 
	Performance Level (a)
	 	 	120	%	 	 	80	%	 	 	60	%	 	 	 	 
	Factor Weight (b)
	 	 	50	%	 	 	25	%	 	 	25	%	 	 	 	 
	Weighted Performance (a
times b)
	 	 	60	%	 	 	20	%	 	 	15	%	 	 	95	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Restricted Shares
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Granted
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,000	 
	Restricted Shares Earned
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	950	 

2

 

Example 2:

 

			
	*	 	The results for a given Performance Factor will be reduced to the next lowest level if the
final financial result does not equal one of the levels listed in the above schedule. For Example:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	2009 Total	 	Net Charge	 	 
	 	 	2009 GAAP	 	Revenue	 	Off Ratio (3yr	 	 
	 	 	EPS	 	($000)	 	Average)	 	Total
	Actual Results
	 	$	1.36	 	 	$	412,000	 	 	 	0.520	%	 	 	 	 
	Adjusted Results
	 	$	1.36	 	 	 	411,565	 	 	 	0.000	%	 	 	 	 
	Performance Level (a)
	 	 	80	%	 	 	80	%	 	 	0	%	 	 	 	 
	Factor Weight (b)
	 	 	50	%	 	 	25	%	 	 	25	%	 	 	 	 
	Weighted Performance (a
times b)
	 	 	40	%	 	 	20	%	 	 	0	%	 	 	60	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Restricted Shares
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Granted
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,000	 
	Restricted Shares Earned
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	600	 

Example 3:

 

			
	*	 	The results for a given Performance Factor will be reduced to the next lowest level if the
final financial result does not equal one of the levels listed in the above schedule. For Example:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	2009 Total	 	Net Charge	 	 
	 	 	2009 GAAP	 	Revenue	 	Off Ratio (3yr	 	 
	 	 	EPS	 	($000)	 	Average)	 	Total
	Actual Results
	 	$	1.39	 	 	$	426,000	 	 	 	0.285	%	 	 	 	 
	Adjusted Results
	 	$	1.39	 	 	$	425,039	 	 	 	0.290	%	 	 	 	 
	Performance Level (a)
	 	 	120	%	 	 	120	%	 	 	110	%	 	 	 	 
	Factor Weight (b)
	 	 	50	%	 	 	25	%	 	 	25	%	 	 	 	 
	Weighted Performance (a
times b)
	 	 	60	%	 	 	30	%	 	 	27.5	%	 	 	117.5	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Restricted Shares
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Granted
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,000	 
	Restricted Shares Earned
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,175	 

TIMING FOR AWARD DETERMINATION

Once performance results for Old National are known and approved by the auditors, the Compensation
Committee will review and approve the final performance results for the each performance factor.
The final determination of the results including action related determining the overall final
Performance Level will occur on or before

February 1, 2010.

3

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