Exhibit 10(I)
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IROQUOIS BANCORP
ANNUAL MANAGEMENT INCENTIVE PLAN
OBJECTIVES
o Reward Iroquois and Member Bank Managers for the achievement of key
business objectives.
o Provide Managers with an incentive to exceed budgeted pre-tax income
performance.
o Supports Total Compensation Strategy of targeting slightly below market for
planned results and paying above market for the achievement of above plan
results.
PLAN DESIGN FEATURES
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Incentive Weighting
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Threshold Target Superior Ind./
Award Award Award Bank Dept.
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Tier 1 President/ CEO - Iroquois 20% 45% 70% 75% 25%
Tier II CFO and COO-Iroquois 15% 35% 55% 75% 25%
and Homestead CEO
Tier III Senior Management 10% 25% 40% 50% 50%
Tier IV Mid Management 5% 15% 25% 25% 75%
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o The Bank-wide goal will be measured by the member bank's planned net income
and Return on Equity and payout will be interpolated between threshold
(90%), target (100%), and superior (120%) performance.
o Individual/Department goals will be assigned a weighting, and achievement
will be determined on a pass/fail basis.
o There will be no payment if Bank performance is below threshold level or
below 90% of the average four year median Return on Equity of the Iroquois
Bancorp regional bank peer group. The award will be capped at the superior
level.
o It is the intent of the Plan that no adjustment be made for the effect of
extraordinary items on net income. Any adjustment or exception would be
based on a recommendation by the member bank's management or Board of
Directors and require approval of the Iroquois Nominating/Personnel
Committee.