Exhibit 10.16 - Executive Annual Incentive Plan Award Schedule for 2004 JUNIATA VALLEY FINANCIAL CORP EXECUTIVE ANNUAL INCENTIVE PLAN EXHIBIT B - BANK PERFORMANCE FACTORS AND AWARD SCHEDULE PLAN YEAR 2004 CATEGORY 1 - CEO POSITION - ------------------------------------------------------------------------------- GOALS - ------------------------------------------------------------------------------- PERFORMANCE MEASURES EARNINGS PER SHARE (75%) - ------------------------------------------------------------------------------- Threshold Target Optimum --------- ------ ------- $2.45 $2.58 $2.80 - ------------------------------------------------------------------------------- RETURN ON AVERAGE EQUITY (25%) - ------------------------------------------------------------------------------- Threshold Target Optimum --------- ------ ------- 11.80% 12.5% 13.5% - ------------------------------------------------------------------------------- AWARDS (% of Base Pay) - ------------------------------------------------------------------------------- Threshold Target Optimum --------- ------ ------- 12% 20% 28% - ------------------------------------------------------------------------------- CATEGORY 1 - CEO (Award amount on base of $148,271 - will use 2004 actual base) - ------------------------------------------------------------------------------- Threshold Target Optimum --------- ------ ------- $17,793 $29,654 $41,516 - ------------------------------------------------------------------------------- PARAMETERS - ---------- 1. Company measures will be 75% EPS and 25% ROAE. 2. Both Financial Measures must meet threshold to initiate an award in the plan. 3. Will interpolate awards between threshold, target, and optimum. 4. Will pay for performance above optimum at a scale of one-half the increase between target and optimum. 5. Pay is defined as total base pay for the applicable plan year.