PROVIDENT BANK
2006 EXECUTIVE VICE-PRESIDENT INCENTIVE PLAN
OBJECTIVE
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The purpose of this plan is to closely align management total compensation to
the short and long-term financial goals of the organization.
PARTICIPANTS
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This plan shall apply to the levels of management defined below:
Executive Vice Presidents
ELIGIBILITY
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To be eligible for benefits under this plan each participant must be employed in
one of the above categories and in good standing. For those employed in one of
the above categories less than one full year, the amount will be pro-rated based
on the actual number of full calendar months employed in one of the above
categories.
INCENTIVE OBJECTIVES
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A. CORPORATE
The criteria to be used for the corporate performance measure shall be
Earnings Per Share (EPS) as determined annually by the Board of Directors.
B. INDIVIDUAL
The criteria to be used for the individual performance measure shall be
the employee's overall performance rating for calendar year 2006.
PERFORMANCE MEASURES
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For 2006, as determined by the Compensation Committee of the Board of Directors
are:
A. CORPORATE EARNINGS PER SHARE (EPS)
Threshold
Target
Maximum
B. INDIVIDUAL
The individual performance measure will be based upon an overall
performance rating for calendar year 2006 of "On Target" or "Above
Target". An employee with a "Below Target" overall performance rating will
not be eligible for any award under this plan.
PROVIDENT BANK
2006 EXECUTIVE VICE-PRESIDENT INCENTIVE PLAN
PAGE 2
INCENTIVE COMPENSATION COMPUTATION
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A. CORPORATE PERFORMANCE
For incentive compensation to be awarded at least the Threshold must be
achieved.
B. INDIVIDUAL PERFORMANCE
The individual performance measure will be based upon an overall
performance rating for calendar year 2006 of "On Target" or "Above
Target". An employee with a "Below Target" overall performance rating will
not be eligible for any award under this plan.
PAYMENT OF INCENTIVE AWARDS
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A. TIMING
Incentive compensation payable under this plan will be paid to
participants within two months after the year-end financials have been
certified.
B. DEFERRAL
Participants may defer all or part of the compensation payable under this
plan under separate agreement with the corporation. Any decision to defer
incentive compensation must be made at the inception of the current year's
plan. Access to deferred moneys is guided by IRS regulations applicable to
Section 401(k) of the Internal Revenue Code.
C. INCENTIVE AWARD SCHEDULE
Each year a schedule will be attached to this plan showing threshold,
target and maximum levels of incentive compensation set by the Board of
Directors.
PROVIDENT BANK
2006 EXECUTIVE-VICE PRESIDENT INCENTIVE PLAN
INCENTIVE AWARD SCHEDULE
PERFORMANCE MEASURES
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THRESHOLD TARGET MAXIMUM
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Earnings Per Share
INCENTIVE AWARD CALCULATION
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The incentive award will be determined as a percentage of year-end base salary.
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BANK PERFORMANCE
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TRESHOLD TARGET MAXIMUM
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EMPLOYEE PERFORMANCE EMPLOYEE PERFORMANCE EMPLOYEE PERFORMANCE
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ON ABOVE ON ABOVE ON ABOVE
TARGET TARGET TARGET TARGET TARGET TARGET
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13% - 17% 18% - 22% 23% - 27% 28% - 32% 33% - 37% 38% - 42%
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PARTICIPANTS
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R. Wayne Hall
Russell Johnson
John King
R. Hugh Newton
H. Les Patrick
Dennis Starliper
Jeanne Uphouse