EXHIBIT 10.15
CENTRAL BANK MANAGEMENT INCENTIVE PROGRAM
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APPROVED SEPTEMBER 14, 2000
o OBJECTIVES:
To provide incentive compensation to Bank management that:
o Rewards SUPERIOR performance;
o Promotes appropriate, individual impact and influence on results.
o Focuses the employees on the important goals and objectives of the
organization.
o INCENTIVE ELIGIBILITY:
1. All Bank management staff members are eligible for incentive.
2. The incentive for management staff members with less than one year's
service will be pro-rated to reflect their tenure.
3. Management staff members must have a performance appraisal rating of
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"Fully Competent" or higher to be eligible to receive an incentive
payment.
o INCENTIVE CRITERIA:
1. Profitability as measured by net incentive income (after tax,
excluding securities gains and bonus accrual).
PLUS
2. Three additional Bank criteria ("Critical Objectives") which are
determined by the Board of Directors annually not later than the May
Board meeting in conjunction with the review and approval of the
Bank's Business Plan.
3. The recommended incentive percentages will be determined as follows:
o Incentive determined as a result of the achievement of the
net income objective according to the formula established
for each fiscal year (incentive percentage increase as net
income increases);
PLUS
o An ADDITIONAL PERCENTAGE added for each Bank critical
objective accomplished. This percentage will be applied as
follows:
o Officers (grades 10-12): credit of 2% for each Bank
critical objective;
o Senior Officers (grade 13): credit of 3% to 4%* for
each Bank critical objective; and
INCENTIVE PLAN -2-
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o Chief Executive Officer: credit of 5% for each Bank
critical objective.
4. Commercial Loan Officers (grade 12) will be each
assigned one additional, individual critical objective
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for loan production. Accomplishment of the individual
critical objective will result in credit of 2% for
incentive (in addition to credit for Bank critical
objectives as may be accomplished); failure to
accomplish the individual critical objective will
result in a deduction of 2% from incentive.
* In measuring loans, only NET NEW MONEY ADVANCED will
count toward the goal as measured on a per borrower
basis. For example, an increase in a line that is not
drawn will not result in a bonus. Also, if a borrower
at the beginning of the year has 1 million outstanding
and takes out new loans totaling 400,000 during the
year, if the balance outstanding at the end of the year
is less than 1 million, no bonus will be paid on those
new originations.
* NOTE: Only the Senior Banking Officer is eligible for the higher percentages;
this will remain in effort for as long as the Senior Banking Officer position is
combined with the Senior Loan Officer position.