EXHIBIT 10.7



 

Management Bonus Plan

 

Purpose:

 

Attract, retain and motivate management with exceptional ability.

 

Eligibility Requirements:

 

Management personnel are eligible for consideration

 

Employed by the company for a minimum of six months of the fiscal year

 

Be actively employed by the company at the time of payment or retired between the last day of the fiscal year and the payment date.  Retirees must meet the definition of normal retirement — sixty-five years old with a minimum of five years of service with the company

 

Rated Good or higher on last performance evaluation

 

Calculations:

 

Bonus percentages are based on a Board approved matrix which consists of five company performance levels and five categories of management

 

Bonuses will be calculated on base salaries as of the last day of the fiscal year

 

Bonuses will be prorated for those with six but less than 12 months of service in the fiscal year and those promoted to an eligible position during the fiscal year

 

Bonuses for those on an approved leave of absence, including disability, will be prorated based upon the number of full months actually worked during the fiscal year

 

Bonuses will be rounded to the nearest hundred — up or down

 











 

REVISED MANAGEMENT BONUS GUIDELINES

DECEMBER 2011

 

	
 
    	
 
    	
 
    	
 
    	
LEVEL 1
    	
 
    	
LEVEL 2
    	
 
    	
LEVEL 3
    	
 
    	
LEVEL 4
    	
 
    	
LEVEL 5
    	
 
    
	
 
    	
 
    	
Return on Average Assets (ROAA)
    	
 
    	
.70% - .79%
    	
 
    	
.80% - .89%
    	
 
    	
.90% - .99%
    	
 
    	
1.00% - 1.09%
    	
 
    	
> 1.09%
    	
 
    
	
 
    	
 
    	
Return on Average Equity (ROAE)
    	
 
    	
5.00% - 6.99%
    	
 
    	
7.00% - 8.99%
    	
 
    	
9.00% - 9.99%
    	
 
    	
10.00% - 10.99%
    	
 
    	
> 10.99%
    	
 
    
	
 
    	
 
    	
Return on Average Tang. Equity (ROATE)
    	
 
    	
6.00% - 7.99%
    	
 
    	
8.00% - 9.99%
    	
 
    	
10.00% - 11.99%
    	
 
    	
12.00% - 12.99%
    	
 
    	
> 12.99%
    	
 
    
	
 
    	
 
    	
% Growth in Earnings per Share
    	
 
    	
8.00% - 8.99%
    	
 
    	
9.00% - 9.99%
    	
 
    	
10.00% - 10.99%
    	
 
    	
11.00% - 11.99%
    	
 
    	
> 11.99%
    	
 
    
	
 
    	
 
    	
Retail Deposit Growth (Non-CD)
    	
 
    	
1.00% - 1.99%
    	
 
    	
2.00% - 2.99%
    	
 
    	
3.00% - 3.99%
    	
 
    	
4.00% - 4.99%
    	
 
    	
> 4.99%
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
CATEGORY
    	
 
    	
RATING
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A
    	
 
    	
4
    	
 
    	
10%
    	
 
    	
15%
    	
 
    	
20%
    	
 
    	
25%
    	
 
    	
30%
    	
 
    
	
CEO/Pres &
    	
 
    	
3
    	
 
    	
8%
    	
 
    	
12%
    	
 
    	
16%
    	
 
    	
20%
    	
 
    	
24%
    	
 
    
	
EVPs
    	
 
    	
2
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    
	
 
    	
 
    	
1
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
B
    	
 
    	
4
    	
 
    	
8%
    	
 
    	
13%
    	
 
    	
18%
    	
 
    	
23%
    	
 
    	
27%
    	
 
    
	
SVPs
    	
 
    	
3
    	
 
    	
6%
    	
 
    	
10%
    	
 
    	
14%
    	
 
    	
18%
    	
 
    	
21%
    	
 
    
	
 
    	
 
    	
2
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    
	
 
    	
 
    	
1
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
C
    	
 
    	
4
    	
 
    	
7%
    	
 
    	
12%
    	
 
    	
16%
    	
 
    	
20%
    	
 
    	
24%
    	
 
    
	
Region &
    	
 
    	
3
    	
 
    	
6%
    	
 
    	
10%
    	
 
    	
14%
    	
 
    	
17%
    	
 
    	
21%
    	
 
    
	
Subsidiary
    	
 
    	
2
    	
 
    	
4%
    	
 
    	
7%
    	
 
    	
9%
    	
 
    	
11%
    	
 
    	
13%
    	
 
    
	
Presidents
    	
 
    	
1
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
D
    	
 
    	
4
    	
 
    	
6%
    	
 
    	
10%
    	
 
    	
14%
    	
 
    	
18%
    	
 
    	
22%
    	
 
    
	
Employees
    	
 
    	
3
    	
 
    	
5%
    	
 
    	
8%
    	
 
    	
12%
    	
 
    	
15%
    	
 
    	
18%
    	
 
    
	
in 
    	
 
    	
2
    	
 
    	
3%
    	
 
    	
5%
    	
 
    	
7%
    	
 
    	
9%
    	
 
    	
11%
    	
 
    
	
Grades 13
    	
 
    	
1
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    
	
and above
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
E
    	
 
    	
4
    	
 
    	
5%
    	
 
    	
8%
    	
 
    	
12%
    	
 
    	
16%
    	
 
    	
20%
    	
 
    
	
Employees 
    	
 
    	
3
    	
 
    	
4%
    	
 
    	
6%
    	
 
    	
10%
    	
 
    	
13%
    	
 
    	
16%
    	
 
    
	
in
    	
 
    	
2
    	
 
    	
2%
    	
 
    	
3%
    	
 
    	
5%
    	
 
    	
7%
    	
 
    	
8%
    	
 
    
	
Grades 
    	
 
    	
1
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    	
0%
    	
 
    
	
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