EXHIBIT
10.17


 




CENTRUE
FINANCIAL CORPORATION ANNUAL CASH BONUS PLAN


1.     
Background and Purpose.


         1.1      
Purpose. The purpose of the CENTRUE FINANCIAL CORPORATION 2015 ANNUAL CASH BONUS PLAN (the “Plan”) is
to further link our executive’s and other officers interests with those of the Company by creating a direct relationship
between key Company performance measurements and individual bonus payouts.


                     Awards
under the Plan are intended to qualify as performance-based compensation deductible by the Company under the qualified performance-based
compensation exception to Section 162(m) of the Code.


         1.2     
Effective Date. The Plan is effective as of January 27, 2015 (the “Effective Date”), subject
to approval by the Company’s stockholders at the first annual meeting of stockholders to occur after the Effective Date,
and shall remain in effect until it has been terminated pursuant to Section 9.6.


2.     
Definitions. The following terms shall have the following
meanings:


         2.1       “Affiliate” means any corporation or other entity controlled by the Company. As of the Effective Date, the
Company’s only Affiliate is Centrue Bank.


         2.2     
“Award” means an award granted pursuant to the Plan, the payment of which shall be contingent on the attainment
of Performance Goals with respect to a Performance Period, as determined by the Committee pursuant to Section 6.1.


         2.3      
“Base Salary” means the Participant’s annualized rate of base salary on the first day of the Performance
Period before (i) deductions for taxes or benefits and (ii) deferrals of compensation pursuant to any Company or Affiliate-sponsored
plans.


         2.4      
“Board” means the Board of Directors of the Company, as constituted from time to time.


    	 



    	 



    

         2.5      
“Cause” means:


                     (a)      
If the Participant is a party to an employment agreement with the Company or an Affiliate and such agreement provides for a definition
of Cause, the definition contained therein; or


                     (b)      
If no such agreement exists, or if such agreement does not define Cause:


 


		                                (i)         	the
Participant’s willful failure to perform his or her duties (other than any such failure resulting from incapacity due to
physical or mental illness);
	 	 	 



		                                (ii)        	the
Participant’s willful engagement in dishonesty, illegal conduct or gross misconduct, which is, in each case, materially
injurious to the Company or its Affiliates;
	 	 	 



		                                (iii)       	the
Participant’s embezzlement, misappropriation or fraud, whether or not related to the Participant’s employment with
the Company;
	 	 	 



		                                (iv)      	the
Participant’s conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state law equivalent)
or a crime that constitutes a misdemeanor involving moral turpitude; or
	 	 	 



		                                 (v)       	the
Participant’s violation of any restrictive covenants entered into between the Participant and the Company or the Company’s
Code of Conduct.



         2.6      
“Change in Control” means:


                     (a)       
The direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one
or a series of related transactions, of all or substantially all of the properties or assets of the Company and its Affiliates,
taken as a whole, to any person that is not an Affiliate of the Company;


                     (b)       
The Incumbent Directors cease for any reason to constitute at least a majority of the Board;


                     (c)       
The date which is 10 business days prior to the consummation of a complete liquidation or dissolution of the Company;


                     (d)      
The acquisition by any person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange
Act of 1934, as amended), of 50% or more (on a fully diluted basis) of either (i) the then outstanding Shares of the Company,
taking into account as outstanding for this purpose such Shares issuable upon the exercise of options or warrants, the conversion
of convertible stock or debt, and the exercise of any similar right to acquire such Shares or (ii) the combined voting power of
the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); provided, however, that for purposes of this Plan, the following acquisitions shall not
constitute a Change in Control: (A) any acquisition by the Company or any Affiliate, (B) any acquisition by any employee benefit
plan sponsored or maintained by the Company or any Affiliate or (C) any acquisition which complies with clauses, (i), (ii) and
(iii) of subsection (e) of this definition; or


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                     (e)      
The consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction
involving the Company that requires the approval of the Company’s stockholders, whether for such transaction or the issuance
of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination:
(i) more than 50% of the total voting power of (A) the entity resulting from such Business Combination (the “Surviving
Company”), or (B) if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of
sufficient voting securities eligible to elect a majority of the members of the board of directors (or the analogous governing
body) of the Surviving Company (the “Parent Company”), is represented by the Outstanding Company Voting Securities
that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which the
Outstanding Company Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders
thereof is in substantially the same proportion as the voting power of the Outstanding Company Voting Securities among the holders
thereof immediately prior to the Business Combination; (ii) no person (other than any employee benefit plan sponsored or maintained
by the Surviving Company or the Parent Company) is or becomes the beneficial owner, directly or indirectly, of 50% or more of
the total voting power of the outstanding voting securities eligible to elect members of the board of directors of the Parent
Company (or the analogous governing body) (or, if there is no Parent Company, the Surviving Company); and (iii) at least a majority
of the members of the board of directors (or the analogous governing body) of the Parent Company (or, if there is no Parent Company,
the Surviving Company) following the consummation of the Business Combination were Board members at the time of the Board’s
approval of the execution of the initial agreement providing for such Business Combination.


         2.7      
“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time, including any regulations
or authoritative guidance promulgated thereunder and successor provisions thereto.


         2.8      
“Committee” means the Compensation Committee of the Company’s Board.


         2.9      
“Company” means Centrue Financial Corporation, a Delaware Corporation, and any successor thereto.


         2.10  
  “Covered Employee” has the meaning set forth in Section 162(m)(3) of the Code.



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         2.11    
“Determination Date” means the earlier of: (a) the 90th day of the Performance Period or (b) the date on which
25% of the Performance Period has elapsed. The Determination Date shall be a date on which the outcome of the Performance Goals
are substantially uncertain.


         2.12  
 “Disability” means unless otherwise defined in an employment agreement between the Participant and the Company,
permanent and total disability within the meaning of Section 22(e)(3) of the Code.


         2.13   
“Incumbent Directors” means the individuals who, as of the date the Plan is adopted, are directors of the Company
and any individual who becomes a director subsequent to such date whose election, nomination for election by the Company’s
stockholders, or appointment, was approved by a vote of at least two-thirds of the then-Incumbent Directors (either by a specific
vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without objection
to such nomination).


         2.14    
“Maximum Award” means as to any Participant for any Plan Year 52.5% of the Participant’s Base
Salary for that Plan Year. The Maximum Award limit shall be pro-rated for any Award payable with respect to a Performance Period
that is shorter than one year.


         2.15   
“Negative Discretion” means the discretion of the Committee to reduce or eliminate the size of an Award in
accordance with Section 6.1(c) of the Plan.


         2.16    
“Participant” means as to any Performance Period, the executive officers of the Company or an Affiliate who
are deemed likely to be Covered Employees and other key employees of the Company or an Affiliate who are designated by the Committee
to participate in the Plan for that Performance Period.


         2.17   
“Performance Criteria” means the performance criteria upon which the Performance Goals for a particular Performance
Period are based, which, unless and until the Committee or Board proposes to stockholders and stockholders approve a change in
Performance Criteria, may include any of the following:


                     (a)       
net earnings or net income (before or after taxes);


                     (b)      
basic or diluted earnings per share (before or after taxes);


                     (c)      
gross profit or gross profit growth;


                     (d)      
net operating profit (before or after taxes);


                     (e)       
return on assets, capital, invested capital, equity or sales;


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                     (f)       
earnings before or after taxes, interest, depreciation and/or amortization;


                     (g)      
gross or operating margins;


                     (h)      
minimum capital ratings and improvements in capital structure;


                     (i)        
budget and expense management;


                     (j)        
productivity ratios;


                     (k)       
regulatory achievements (CAMELS 2 or better, no new regulatory orders;


                     (l)       
share price (including, but not limited to, growth measures and total stockholder return);


                     (m)     
enterprise value; and


                     (n)      
completion of acquisitions, business expansions or dispositions and other transactional goals.


     Such
Performance Criteria may relate to the performance of the Company as a whole, a business unit, division, department, individual
or any combination of these and may be applied on an absolute basis and/or relative to one or more peer group companies or indices,
or any combination thereof, as the Committee shall determine.


         2.18    
“Performance Goals” means the goals selected by the Committee, in its discretion to be applicable to a Participant
for any Performance Period. Performance Goals shall be based upon one or more Performance Criteria. Performance Goals may include
a threshold level of performance below which no Award will be paid and levels of performance at which specified percentages of
the Target Award will be paid and may also include a maximum level of performance above which no additional Award amount will
be paid.


         2.19  
  “Performance Period” means the period for which performance is calculated, which unless otherwise indicated
by the Committee, shall be the Plan Year.


         2.20    
“Plan” means the Centrue Financial Corporation Annual Cash Bonus Plan, as hereafter amended from time to time.


         2.21    
“Plan Year” means the Company’s fiscal year, which commences on January 1st and ends on December 31st.


         2.22  
  “Pro-rated Award” means an amount equal to the Award otherwise payable to the Participant for a Performance
Period in which the Participant was actively employed by the Company or an Affiliate for only a portion thereof, multiplied by
a fraction, the numerator of which is the number of days the Participant was actively employed by the Company or an Affiliate
during the Performance Period and the denominator of which is the number of days in the Performance Period.



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         2.23    
“Shares” means the shares of the Company’s common stock.


         2.24  
  “Target Award” means the target award payable under the Plan to a Participant for a particular Performance
Period, expressed as a percentage of the Participant’s Base Salary. In special circumstances, the target award may be expressed
as a fixed amount of cash.


3.     
Administration.


         3.1      
Administration By the Committee. The Plan shall be administered by the Committee.


         3.2      
Authority of the Committee. Subject to the provisions of the Plan and applicable law, the Committee shall have the power,
in addition to other express powers and authorizations conferred on the Committee by the Plan, to: (i) designate Participants;
(ii) determine the terms and conditions of any Award; (iii) determine whether, to what extent, and under what circumstances Awards
may be forfeited or suspended; (iv) interpret, administer, reconcile any inconsistency, correct any defect and/or supply any omission
in the Plan or any instrument or agreement relating to, or Award granted under, the Plan; (v) establish, amend, suspend, or waive
any rules for the administration, interpretation and application of the Plan; and (vi) make any other determination and take any
other action that the Committee deems necessary or desirable for the administration of the Plan.


         3.3      
Decisions Binding. All determinations and decisions made by the Committee, the Board, and any delegate of the Committee
pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons, and shall be given the maximum deference
permitted by law.


         3.4      
Delegation By the Committee. The Committee, in its sole discretion, may delegate all or part of its authority and powers
under the Plan to one or more directors and/or officers of the Company; provided, however, that the Committee may not delegate
its responsibility to (i) make Awards to executive officers; (ii) make Awards which are intended to constitute qualified performance-based
compensation under Section 162(m) of the Code; or (iii) certify the satisfaction of the Performance Goals pursuant to Section
6.1 in accordance with Section 162(m) of the Code.


         3.5     
Agents; Limitation of Liability. The Committee may appoint agents to assist in administering the Plan. The Committee and
each member thereof shall be entitled to, in good faith, rely or act upon any report or other information furnished to it or him
by any officer or employee of the Company, the Company’s certified public accountants, consultants or any other agent assisting
in the administration of the Plan. Members of the Committee and any officer or employee of the Company acting at the direction
or on behalf of the Committee shall not be personally liable for any action or determination taken or made in good faith with
respect to the Plan, and shall, to the extent permitted by law, be fully indemnified and protected by the Company with respect
to any such action or determination.



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4.     
Eligibility and Participation.


         4.1      
Eligibility. Only executive level and other key employees of the Company and its participating Affiliates are eligible
to participate in the Plan.


         4.2      
Participation. The Committee, in its discretion, shall select, no later than the Determination Date, the persons who shall
be Participants for the Performance Period. Only eligible individuals who are designated by the Committee to participate in the
Plan with respect to a particular Performance Period may participate in the Plan for that Performance Period. An individual who
is designated as a Participant for a given Performance Period is not guaranteed or assured of being selected for participation
in any subsequent Performance Period.


         4.3      
New Hires; Newly Eligible Participants. A newly hired or newly eligible Participant will be eligible to receive a Pro-rated
Award.


         4.4      
Leaves of Absence. If a Participant is on a leave of absence for a portion of a Performance Period, the Participant will
be eligible to receive a Pro-rated Award reflecting participation for the period during which he or she was actively employed
and not any period when he or she was on leave.


5.     
Terms of Awards.


         5.1     
Determination of Target Awards. Prior to, or reasonably promptly following the commencement of each Performance Period,
but no later than the Determination Date, the Committee, in its sole discretion, shall establish the Target Award for each Participant,
the payment of which shall be conditioned on the achievement of the Performance Goals for the Performance Period.


         5.2     
Determination of Performance Goals and Performance Formula. Prior to, or reasonably promptly following the commencement
of, each Performance Period, but no later than the Determination Date, the Committee, in its sole discretion, shall establish
in writing the Performance Goals for the Performance Period and shall prescribe a formula for determining the percentage of the
Target Award which may be payable based upon the level of attainment of the Performance Goals for the Performance Period. The
Performance Goals shall be based on one or more Performance Criteria, each of which may carry a different weight, and which may
differ from Participant to Participant.



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         5.3     
Adjustments. The Committee is authorized, in its sole discretion, to adjust or modify the calculation of a Performance
Goal for a Performance Period in connection with any one or more of the following events:


                     (a)      
significant litigation or claim judgments or settlements or formal or informal regulatory action against the Company or any Affiliate;


                     (b)      
the effect of changes in tax laws, accounting standards or principles, or other laws or regulatory rules affecting reporting results;


                     (c)      
any reorganization and restructuring programs;


                     (d)       extraordinary nonrecurring items as described in management’s discussion and analysis of financial condition and results
of operations appearing in the Company’s annual report to stockholders for the applicable year or period;


                     (e)      
acquisitions or divestitures; and


                     (f)       
any other specific unusual or nonrecurring events or objectively determinable category thereof.


                     No
adjustment shall be made if the effect would be to cause an Award to fail to qualify as performance-based compensation under Section
162(m) of the Code.


6.     
Payment of Awards.


         6.1      
Determination of Awards; Certification.  


                     (a)      
Following the completion of each Performance Period, the Committee shall determine the extent to which the Performance Goals have
been achieved or exceeded. If the minimum Performance Goals established by the Committee are not achieved, then no payment will
be made.


                     (b)      
To the extent that the Performance Goals are achieved, the Committee shall certify in writing, in accordance with the requirements
of Section 162(m) of the Code, the extent to which the Performance Goals applicable to each Participant have been achieved and
shall then determine, in accordance with the prescribed formula, the amount of each Participant’s Award.


                     (c)      
In determining the amount of each Award, the Committee may reduce or eliminate the amount of an Award by applying Negative Discretion
if, in its sole discretion, such reduction or elimination is appropriate.


                     (d)      
In no event shall the amount of an Award for any Plan Year exceed the Maximum Award.



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         6.2     
Form and Timing of Payment. Except as otherwise provided herein, as soon as practicable following the Committee’s
certification pursuant to Section 6.1 for the applicable Performance Period, each Participant shall receive a cash lump sum payment
of his or her Award, less required withholding. In no event shall such payment be made later than 2 1/2 months following the date
the Committee certifies that the Performance Goals have been achieved.


         6.3      
Employment Requirement. Except as otherwise provided in Section 7, no Award shall be paid to any Participant
who is not actively employed by the Company or an Affiliate on the date that Awards are paid.


7.     
Termination of Employment.


         7.1      
Employment Requirement. Except as otherwise provided in Section 7.2, if a Participant’s employment terminates for
any reason prior to the date that Awards are paid, all of the Participant’s rights to an Award for the Performance Period
shall be forfeited.


         7.2      
Termination of Employment Due to Death or Disability. If a Participant’s employment is terminated by reason of his
or her death or Disability during a Performance Period or following a Performance Period but before the date that Awards are paid,
the Participant or his or her beneficiary will be paid the Award that would otherwise be payable if the Participant remained employed
through the date that Awards are paid. In the case of a Participant’s Disability, the employment termination shall be deemed
to have occurred on the date that the Committee determines that the Participant is Disabled. Payment of such Award will be made
at the same time and in the same manner as Awards are paid to other Participants.


8.     
Change in Control.


                     If
a Change in Control occurs during a Performance Period, each Participant will receive his or her Target Award, without regard
to actual performance and without proration for less than the full Performance Period. Awards paid in connection with a Change
in Control will be paid within 30 days following the Change in Control.


9.     
General Provisions.


         9.1      
Compliance With Legal Requirements. The Plan and the granting of Awards shall be subject to all applicable federal and
state laws, rules and regulations, and to such approvals by any regulatory or governmental agency as may be required.


         9.2      
Non-transferability. A person’s rights and interests under the Plan, including any Award previously made to such
person or any amounts payable under the Plan may not be assigned, pledged, or transferred, except in the event of the Participant’s
death, to a designated beneficiary in accordance with the Plan, or in the absence of such designation, by will or the laws of
descent or distribution.



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         9.3      
No Right to Employment. Nothing in the Plan or in any notice of Award shall confer upon any person the right to continue
in the employment of the Company or any Affiliate or affect the right of the Company or any Affiliate to terminate the employment
of any Participant.


         9.4      
No Right to Award. Unless otherwise expressly set forth in an employment agreement signed by the Company and a Participant,
a Participant shall not have any right to any Award under the Plan until such Award has been paid to such Participant and participation
in the Plan in one Performance Period Year does not connote any right to become a Participant in the Plan in any future Performance
Period.


         9.5      
Withholding. The Company shall have the right to withhold from any Award, any federal, state or local income and/or payroll
taxes required by law to be withheld and to take such other action as the Committee may deem advisable to enable the Company and
Participants to satisfy obligations for the payment of withholding taxes and other tax obligations relating to an Award.


         9.6      
Amendment or Termination of the Plan. The Board or the Committee may, at any time, amend, suspend or terminate the Plan
in whole or in part; provided, that, no amendment that requires stockholder approval in order for the Plan to continue to comply
with Section 162(m) of the Code shall be effective unless approved by the requisite vote of the stockholders of the Company. Notwithstanding
the foregoing, no amendment shall adversely affect the rights of any Participant to Awards allocated prior to such amendment,
suspension or termination.


         9.7      
Unfunded Status. Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed
to create a trust of any kind or a fiduciary relationship between the Company and any Participant, beneficiary or legal representative
or any other person. To the extent that a person acquires a right to receive payments under the Plan, such right shall be no greater
than the right of an unsecured general creditor of the Company. All payments to be made hereunder shall be paid from the general
funds of the Company and no special or separate fund shall be established and no segregation of assets shall be made to assure
payment of such amounts except as expressly set forth in the Plan. The Plan is not intended to be subject to the Employee Retirement
Income Security Act of 1974, as amended (ERISA).


         9.8      
Governing Law. The Plan shall be construed, administered and enforced in accordance with the laws of Illinois without regard
to conflicts of law.


         9.9      
Beneficiaries. To the extent that the Committee permits beneficiary designations, any payment of Awards due under the Plan
to a deceased Participant shall be paid to the beneficiary duly designated by the Participant in accordance with the Company’s
practices. If no such beneficiary has been designated or survives the Participant, payment shall be made by will or the laws of
descent or distribution.



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         9.10    
Section 162(m) of the Code; Bifurcation of the Plan. It is the intent of the Company that the Plan and the Awards made
under the Plan to Participants who are or may become persons whose compensation is subject to Section 162(m) of the Code satisfy
any applicable requirements to be treated as qualified performance-based compensation under Section 162(m) of the Code. The provisions
of the Plan may at any time be bifurcated by the Board or the Committee so that certain provisions of the Plan or any Award intended
to satisfy the applicable requirements of Section 162(m) of the Code are only applicable to persons whose compensation is subject
to Section 162(m) of the Code.


         9.11  
  Section 409A of the Code. It is intended that payments under the Plan qualify as short-term deferrals exempt from the requirements
of Section 409A of the Code. In the event that any Award does not qualify for treatment as an exempt short-term deferral, it is
intended that such amount will be paid in a manner that satisfies the requirements of Section 409A of the Code. The Plan shall
be interpreted and construed accordingly.


         9.12  
  Expenses. All costs and expenses in connection with the administration of the Plan shall be paid by the Company.


         9.13  
  Section Headings. The headings of the Plan have been inserted for convenience of reference only and in the event of any
conflict, the text of the Plan, rather than such headings, shall control.


         9.14  
  Severability. In the event that any provision of the Plan shall be considered illegal or invalid for any reason, such illegality
or invalidity shall not affect the remaining provisions of the Plan, but shall be fully severable, and the Plan shall be construed
and enforced as if such illegal or invalid provision had never been contained therein.


         9.15  
  Gender and Number. Except where otherwise indicated by the context, wherever used, the masculine pronoun includes the feminine
pronoun; the plural shall include the singular, and the singular shall include the plural.


         9.16  
  Non-exclusive. Nothing in the Plan shall limit the authority of the Company, the Board or the Committee to adopt such other
compensation arrangements, as it may deem desirable for any Participant.


         9.17  
  Notice. Any notice to be given to the Company or the Committee pursuant to the provisions of the Plan shall be in writing
and directed to the Secretary of the Company at the Company’s executive office.



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         9.18  
  Successors. All obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding upon
any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger,
consolidation or otherwise, of all or substantially all of the assets of the Company.


         9.19  
  Clawback. In the event the Board determines that a significant restatement of the Company’s financial results or
other Company metrics for any of the three prior fiscal years for which audited financial statements have been prepared is required
and (i) such restatement is the result of fraud or willful misconduct and (ii) the Participant’s Award amount would have
been lower had the results or metrics been properly calculated, the Committee has the authority to obtain reimbursement from any
Participant responsible for the fraud or willful misconduct resulting in the restatement. Such reimbursement shall consist of
any portion of any Award previously paid that is greater than it would have been if calculated based upon the restated financial
results or metrics.


                     The
action permitted to be taken by the Board under this Section 9.19 is in addition to, and not in lieu of, any and all other rights
of the Board and/or the Company under applicable law and shall apply notwithstanding anything to the contrary in the Plan.


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