Exhibit 10.48.1


 





 


Employee


 


Incentive 


 


Compensation Plan


 


1

















 


INTRODUCTION


 


Enterprise
Bank is committed to recognizing and rewarding employees for their
contributions and efforts to achieve exceptional business performance.  Enterprise Bank has developed this incentive
compensation plan to acknowledge individual, group and bank wide
performance.   This program is the
Enterprise Bank Employee Incentive Compensation Plan, also referred to as the “Plan”
within this document.


 


The
Plan is designed to motivate and reward Enterprise Bankers for achieving and
exceeding specified bank wide, group and individual performance
objectives.  The Plan will provide a
strong link to the performance evaluation system and the incentive bonus and
will differentiate the incentive bonus based on individual performance.  Participants and bankers will be challenged
and rewarded to contribute to the continued growth and profitability of the Bank.  The Plan, including the financial objectives
of the Plan will be revised each year to determine their appropriateness and
may be revised by the Executive Management Team.  The Compensation Committee of the Board of
Directors (“Compensation Committee”) will approve the amount and parameters of
the bonus pool.


 


It
is the collective expectation of Enterprise Bank’s management, the Compensation
Committee and the entire Board of Directors that the Enterprise Bankers will
share in Enterprise Bank’s overall success.


 


This
incentive plan description serves as a comprehensive single source of
information for eligible participants. 
It describes the objectives of the plan, its various elements, and how
they function.  If you have any questions
that are not addressed by this document, please direct them to the Chief
Executive Officer or the SVP Planning & Development.


 


GENERAL
DESCRIPTION


 


Incentive
bonuses are based on individual contributions to performance as measured by
selected financial results and ratios and performance evaluations.  The incentive formula provides a level of
award that should allow for the motivation of high quality employees.


 


The
purpose of this Plan is to motivate all employees to work together to meet and
exceed the established goals of Enterprise Bank through creating growth, increasing
revenues, maintaining high quality standards, and controlling expenses.


 


CONFIDENTIALITY


 


The
provisions of this Plan are confidential in nature.  The amount of your potential bonus award or
your target bonus level should not be communicated with others, except as
indicated within this Plan or as required by SEC disclosure requirements.  Failure to maintain the
confidentiality of this Plan may result in disciplinary action, up to and
including termination of employment.


 


CODE OF
ETHICS


 


The
intent of the Plan is to fairly reward individual, group and bank wide
achievement.  Any employee who
manipulates or attempts to manipulate the Plan for personal gain at 


 


2

















 


the
expense of clients, other employees or company objectives will be subject to
appropriate disciplinary action, up to and including termination of
employment.  Employees should apply the
intent of the Bank’s Code of Ethics when determining appropriate behavior.


 


In
the event that the participant engages in the manipulation of the Plan for
personal gain, violates a provision of the Code of Ethics, or participates in
the unethical misstatement of financial transactions and/or reports, he/she
will repay all incentive bonus payouts previously paid and will forfeit any
incentive bonus not yet paid.  The
Compensation Committee or the full Board of Directors, in its discretion may
release the participant from the requirement to make such payment, if the
Compensation Committee or the full Board of Directors determines that the
participant’s actions did not result in a material adverse impact on the
finances and/or reputation of the Company. The Company may deduct from any
compensation or other amount payable by the Company to the participant the
amount of payment due under this provision.


 


PLAN
DETERMINATIONS


 


The
Chief Executive Officer and/or Executive Management Team maintain the final
authority for decisions on the amount of all incentive payouts, as recommended
by the department and/or branch manager, and the interpretation of the
provisions of this Plan.  Questions
relating to the provisions of the Plan by employees will be made in writing
first to the department and/or branch manager and subsequently to the Chief
Executive Officer.  Each determination in
connection with any dispute shall be made in the sole discretion of the Chief
Executive Officer and/or Executive Management Team and such determination shall
be conclusive on all parties.


 


INCENTIVE
COMPENSATION PLAN GUIDELINES


 


The
following guidelines will apply to administration of this Plan:


 


·                  Participants must meet Eligibility Criteria
set forth in this Plan to be qualified to receive any incentive compensation.


 


·                  Participants who voluntarily terminate their
employment or whose employment is terminated after the performance year, but
before the payout, or during the performance year are not eligible to receive
the incentive bonus payout.  Participants
terminating employment during or after the performance year due to death,
disability, or retirement will be eligible to receive awards on a pro rata
basis at the discretion of the Chief Executive Officer and/or Executive
Management Team.


 


·                  Plan participants will receive payouts
annually by March 15th following year-end of the Plan year, or
as allowed within year end salary accrual guidelines established by the
Internal Revenue Service.  Management
reserves the right to adjust payout dates if administratively necessary.


 


·                  This Plan is effective January 1, 2007.


 


·                  This Plan replaces all other prior agreements
on incentive bonuses for all employees except as set forth under “Coordination
With Other Incentive Compensation Plans”.


 


3

















 


·                  Any or all provisions of this Plan are
subject to change without notice.  This
Plan may be cancelled without prior notice or negotiation.


 


·                  The Plan does not constitute a contract of
employment and nothing contained in the Plan, nor the receipt of any award
under this Plan, shall confer upon any participant any right to be continued in
the employ of the Bank or interfere or restrict in any way with the right of
the Bank to terminate or change the terms of a participant’s employment at any
time, which right is specifically reserved by the Bank.  The receipt of an award for any one year does
not guarantee and will have no effect on the receipt by an employee of an award
for any subsequent year.


 


·                  All bonuses are contingent upon the
achievement of the stated performance goals for the performance period and a
determination by the Executive Management Team and Compensation Committee that
bonuses shall be distributed to participants in respect of such performance
period.


 


·                  At no time before the actual payment of funds
to participants under this Plan shall any participant accrue any vested
interest or right in this Plan except as otherwise stated in this Plan.


 


·                  Changes to this Plan will be effective on the
date specified by the Chief Executive Officer and/or the Executive Management
Team in a notice formally announcing Plan modifications and/or changes.


 


·                  Details of this Plan will be communicated to
all employees at the inception of the plan and to employees as part of the New
Employee Orientation.  The Plan will be
reviewed and acknowledged by employees and their supervisors annually.  The review will focus on objectives of the
Plan and any changes or revisions that may have occurred.  The purpose of this communication process is
to keep employees constantly aware of the link between a high level of
performance and enhanced compensation. 
Employees will be provided with notification of changes made to the
Plan.


 


·                  The provisions of this Plan are not meant to
replace or override the provisions of the Employee Handbook.   When conflict arises between the
interpretation of the Plan and the Handbook, the provisions of the Employee
Handbook will prevail.


 


ELIGIBILITY
CRITERIA


 


Participants
must meet the following Eligibility Criteria in order to receive any incentive
compensation:


 


·                  Participants must be employed on the date of
payout in order to receive any incentive compensation.  If a participant is at least 62 and retires
during the year, he/she will be eligible for and incentive bonus payout.


 


·                  New participants are eligible to participate
in the Plan from date of hire.


 


·                  Any sub-standard or unsatisfactory ratings
assigned to a department or area following the completion of a regulatory
examination or internal or external audit may result in forfeiture of incentive
bonus payouts to the employees within those departments.  Determination of participation under these
circumstances will be made by the Chief Executive Officer and/or EVP
Administration.


 


·                  The Plan does not include:


 


·                  Temporary employees,


 


4

















 


·                  Contractors, consultants, or other non-Bank
employees,


 


·                  Employees filling a position on a “pro-tem”
basis,


 


·                  For employees on written probation at any
time during the performance period, inclusion in bonus payouts will be
determined on an individual basis based on consultation with the Chief
Executive Officer and/or the EVP Administration.


 


ADMINISTRATION


 


The
Plan is administered by the Chief Executive Officer, EVP Administration and SVP
Planning & Development. Administrative responsibilities will include:


 


·                  Coordinating the annual incentive plan
review, design, and approval process.


 


·                  Establishing and approving performance goals.


 


·                  Arranging for the budgeting and accrual of
incentive awards.


 


·                  Producing and distributing status reports on
a periodic basis to Enterprise Bankers.


 


·                  At payout periods designated in this Plan;
prepare, verify, approve and submit to the Human Resources department the
appropriate award calculations and payout authorization.


 


The
calculation of the payouts for the Executive Management Team will be approved
by the Compensation Committee.


 


PRO-RATA
AWARDS FOR PARTIAL SERVICE PERIODS


 


Pro rata incentive awards for Enterprise Bankers actively
employed, will be paid to the following participants at the time all incentives
are paid, if they otherwise meet the “Eligibility Criteria” set forth above:


 


·                  Incentive
bonus payouts for newly hired participants will be based on wages paid during
the Plan year, exclusive of incentive, referrals or prior year bonuses paid in
the current year.


 


·                  Incentive awards paid to participants whose title and/or
position have changed during the Plan year will be based on the position held
on the last day of the Plan year.


 


·                  Incentive awards will be pro-rated for participants who
were transferred between departments that are covered by different group
models.  The calculation of the incentive
bonus will be based on the number of full months spent in each department
during the plan year.  The allocation of
a full month will be determined based on the most number of days spent in a
department during the month.


 


·                  Participants who are at least 62 years old and retire
during the plan year.


 


·                  In the event a Participant dies, becomes disabled or
retires, he/she may be eligible for an award based on management’s
discretionary review of performance results through the last date of the
Participant’s active employment in the Plan. 
Inclusion in the Plan will be determined by the Chief Executive Officer
and the EVP Adminisration.


 


5





















 


NON ALIENATION


 


Participation in the plan and awards paid as a result of
participation are personal to the participant and neither the plan nor any
right or interest of a participant is subject to voluntary or involuntary
alienation, sale, transfer, pledge, assignment or creditor process.


 


NATURE OF PLAN


 


The Plan shall be unfunded.  All bonuses to be paid shall be paid by the
Bank from its general assets.  The Plan
shall not be construed as giving any participant any right or security interest
in any asset of the Bank.


 


CONTROLLING LAW


 


The Plan and all determinations made and actions taken
shall be construed in accordance with the laws of the Commonwealth of
Massachusetts.


 


FORFEITURE
OF AWARDS


 


Any
Enterprise Banker who terminates employment for any reason (e.g., voluntary
separation or termination due to misconduct) other than those stated under “Pro-Rata
Awards For Partial Service Periods”, prior to distribution of awards, will not
be eligible for payment of incentives which have not already been paid.


 


WINDFALLS


 


Windfalls
refer to the financial impact of extraordinary or unusual events that are
included in the financial reports of the company and have an impact on the
calculation of incentive bonuses either positively or negatively.  These events are outside of the control of
the Enterprise Bankers.   When windfalls
occur, they may be considered, either included or excluded, in determining the
basis for incentive plan payouts.  The
Compensation Committee will determine the inclusion or exclusion of such
windfalls in the financial position or results of the Company.


 


ADVANCES
AGAINST BONUS PAY


 


There
will be no salary advances against anticipated incentive payments.


 


COORDINATION
WITH OTHER INCENTIVE COMPENSATION PLANS


 


This
Plan is offered in addition to other compensation plans or employment
agreements that may be offered by the Bank. 
This includes, but is not limited to: 
referral programs, individual incentive programs, bank owned life
insurance plans, equity incentive awards, supplemental retirement plans and/or
employment agreements.


 


INCENTIVE BONUS CALCULATIONS


 


Appendix
A to this Plan outlines the methodology that will be used for calculating the
payments under this Plan.  The worksheet
has been customized to fit the group that you are included in.  This section of the Plan will explain each of
the groups and key performance categories and provide details relating to the
calculation of the incentive bonus.


 


6





















 


Groups


 


The calculation of the incentive bonus will be determined
by which group the employee is part of. 
Six groups have been established for the breakdown of employees:  Bank wide, Growth, Lending, Investment
Advisory Group (IAG), Mortgage Center and Branches.  The group you are assigned is indicated on
the front page of the Plan. 
Appendix A has been customized for your group.


 


The payout levels indicated in the attached example are
based on your targeted bonus level and provide examples of what payouts will be
at various levels of achievement.


 


Key Performance
Categories & Weightings


 


The calculation of incentive bonuses within each group will
be driven by a set of key performance categories (KPC).  These categories are the areas in which the
groups should be focusing their efforts during the year.  Appendix B includes a listing of the KPC’s
that will be used in each of the groups.


 


Each KPC has been assigned a weighting to indicate the
importance of the KPC in the calculation of the incentive bonus.


 


Each group contains a Net Income KPC.  The net income KPC is based on the net income
of the bank and represents either 100% (Bank wide Group) or 50% of the Group
weighting.  In the calculation of the
overall payout, in other than the bank wide group, the weighting of the net
income KPC will be added to the summation of all other KPC’s, to determine the overall
payout percentage.


 


Bonus Cap


 


The amount of an individual’s bonus payout can not exceed
150% of the targeted bonus level for that individual, before consideration of
the individual performance factor. 
Exceptions to this limitation may be approved by the Compensation
Committee.


 


Performance Factor


 


Each individual participant will be assigned a performance
factor to reflect the individual’s contribution to the goals of the Plan.  The performance factor will be based on the
results of the annual performance evaluations. 
The performance factor can range from 50% to 150% of the incentive bonus
calculated.  This factor will be
multiplied by the total incentive bonus calculated to determine the amount of
the incentive bonus that will be paid.


 


Each group will be broken into “pools”.  Employees will be assigned to a pool based on
department or functional area. 
Departments may be grouped together in order to create larger bonus
pools.  The total amount of dollars
within each bonus pool will remain unchanged following the assignment of
individual performance factors.


 


7





















 


The performance factor will be initially assigned by your
direct manager/supervisor.  A second
member of management (generally your supervisor’s supervisor) will review the
factor to agree with the reasonableness of the factor used.


 


Timing of Calculations


 


On a quarterly basis, participants will be provided with
estimates/forecasts of where each of the KPC’s lies and an estimation of what
payout would be achieved if the level of achievement was maintained for the
remainder of the year.  Quarterly
information is based on actual results, but the estimation of the KPC’s may not
reflect true performance for the remainder of the year.


 


Annual Payout


 


Following the calculation of individual incentive bonuses,
information will be provided to the Human Resource Department for payment of
bonuses.  Incentive bonus payouts will be
based on wages paid during the Plan year, exclusive of incentive, referrals or
prior year bonuses paid in the current year.


 


Participants will be provided with the election to
contribute a portion of the bonus to their 401(k) Plan and/or to the
Employee Stock Purchase Plan.  Taxes will
be withheld according to established IRS regulations for the payment of
bonuses.  Additional taxes may be
withheld at the instruction of the employee. 
Bonuses will be paid following established deposit or payment instructions
provided by the employee.


 


Quarterly results may not be indicative of your actual
annual payout.  The performance factor
assigned may impact the amount of the final annual payout.


 


Triggers


 


In order for payouts to be made under the Plan, the
following thresholds must be maintained.


 


	
   

  	
  ·

  	
  Non-Performing
  Assets

  	
  Maximum
  4.00%

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Gross
  Charge-Offs

  	
  Maximum
  1.00%

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  CRA
  Examination Rating

  	
  Minimum:  Satisfactory

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Safety &
  Soundness Rating

  	
  Minimum:  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Compliance
  Exam Rating

  	
  Minimum:  3

  



 


The Compensation Committee reserves the right to consider
the continuation of Plan payouts if one or more of these thresholds are not
met.


 


KEY PERFORMANCE CATEGORIES – DEFINITIONS


 


The
following definitions and sources of information will be used in the
calculation of the Key Performance Categories:


 


8





















 


Note:  Annual projections based on YTD results may vary from
actual results.   Annual estimates will
be made only to project the annual payout that may be available.  Final annual calculations will be based on
YTD actual results as of, and for the year ending, December 31st.  KPC levels will be determined based on the
employees that are included in each of the groups.


 


Bank Wide Net Income


 


Bank Wide Net Income will be based on year-to-date (YTD)
net income reported to stockholders following the end of each quarter.  Annual net income will be projected based on
the actual YTD results.  Net income may
be adjusted for windfalls as explained in the Plan.


 


Commercial Loan Growth


 


Commercial loan growth will be based on the YTD growth of average
commercial loan balances through the end of the quarter.  Annual average commercial loan growth will be
projected based on the actual growth achieved YTD.


 


Low Cost Deposit Growth


 


Low cost deposit growth will be based on the YTD growth of
average low cost deposit balances through the end of the quarter.  Annual average low cost deposit growth will
be projected based on the actual growth achieved YTD.


 


IAG Referrals


 


IAG referrals include referrals made to both the Investment
Management Group and the Brokerage Group within the Investment Advisory Group
(IAG) that result in the origination of new business.  Referrals will be tracked through
CustomerView or other any software application used by the Bank for this
purpose.  Totals will be accumulated by
representatives of the IAG.  Refer to
Appendix C for additional details on qualifying referrals.


 


Commercial Loan and Low
Cost Deposit Referrals


 


Commercial loan and low cost deposit referrals will be
tracked through CustomerView or any other software application used by the Bank
for this purpose.  Totals will be
accumulated by representatives of the Sales Department.  Branch commercial loan referrals will include
credit for loans originated by branch personnel.  Refer to Appendix C for additional details on
qualifying referrals.


 


Net Charge-offs


 


Net charge-offs as included in the allowance for loan
losses will be used for this KPC as measured at the end of each quarter and
reported to the Board of Directors.


 


9





















 


Salary Expense


 


Salary expense will be based on YTD wages paid as
summarized on the labor distribution reports. 
Wages paid will include gross wages and overtime paid.  Annual salary will be projected based on
wages paid YTD.


 


Net Contribution Before Overhead


 


Net contribution before overhead is based on the YTD net
contribution before overhead for the IAG calculated consistent with the format
presented to the IAG Committee of the Board of Directors.  Allocated benefit expense will not be
included in the calculation of this total. 
Net contribution before overhead will include both Investment Management
and Brokerage areas.  Annual net
contribution before overhead will be projected based on YTD results.


 


IAG New Business
Originated (Net Fees)


 


IAG new business originated-new fees will be based on net
new YTD fees, pro-rated for the portion of the year that will be realized in
the current year.  IAG net fees will
include fees and expenses from both the IAG and Brokerage areas.


 


Gain on Loan Sales


 


Gain on loan sales will be based on the YTD general ledger
loan sale income through the end of the quarter for the gain realized on the
sale of residential mortgage loans sold into the secondary market.  Annual gain on loan sales will be projected
based on YTD results.


 


HELOC Growth


 


HELOC growth will be based on the YTD growth of average
HELOC balances outstanding as of the end of the quarter.  Annual average HELOC growth will be projected
based on the actual average growth achieved YTD.


 


10





















 


ACCEPTANCE OF PLAN AND
PARTICIPATION


 


Acknowledgement of the Plan will
be done electronically through Vigilent Policy Center.  By acknowledging under Vigilent that you have
read and understand the Plan, you will be accepting the Plan as explained on
this form.


 


I,
                                                          ,
the undersigned has received a copy of the:


 


Please check the appropriate plan:


 


·                  Bank-wide Group Plan


 


·                  Growth Group Plan


 


·                  Lending
Group Plan


 


·                  Investment Advisory Group Plan


 


·                  Mortgage Center Plan


 


·                  Branch Plan


 


and fully understand all of its provisions and agree
that the Plan is the sole source for determining the undersigned’s incentive
bonus under this Plan.  The Participant
understands and agrees that provisions in the plan document may be amended,
terminated, superseded or modified at any time by the Company.


 


 


	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Participant’s Signature

  
	
  The
  above indicated plan and all related attachments have been accepted by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Supervisor/Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Senior
  Management Supervisor

  



 


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APPENDIX A: 
INCENTIVE BONUS CALCULATION


 


Appendix A will be distributed to each
individual employee and will contain information that is specific to the employee,
including; the assigned group, the individual target bonus percentage, the key
performance categories within the group and the weightings for each of the KPC’s.  This information is confidential nature and
subject to the confidentiality clause of this Plan.


 


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APPENDIX
B:  KEY PERFORMANCE CATEGORIES AND
WEIGHTINGS


 


	
  Group

  	
   

  	
  Key Performance Categories

  	
   

  	
  Weightings

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank-wide Group

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Bank-wide Net Income

  	
   

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Growth Group

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Bank-wide Net Income

  	
   

  	
  50

  	
  %

  
	
   

  	
   

  	
  Low Cost Deposit Growth
  (YTD AVG)

  	
   

  	
  25

  	
  %

  
	
   

  	
   

  	
  Commercial Loan Growth
  (YTD AVG)

  	
   

  	
  20

  	
  %

  
	
   

  	
   

  	
  IAG Referrals

  	
   

  	
  5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lending Group

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Bank-wide Net Income

  	
   

  	
  50

  	
  %

  
	
   

  	
   

  	
  Commercial Loan Growth
  (YTD AVG)

  	
   

  	
  22.5

  	
  %

  
	
   

  	
   

  	
  Low Cost Deposit Referrals

  	
   

  	
  10

  	
  %

  
	
   

  	
   

  	
  IAG Referrals

  	
   

  	
  5

  	
  %

  
	
   

  	
   

  	
  Net Charge Offs

  	
   

  	
  7.5

  	
  %

  
	
   

  	
   

  	
  Salary Expense

  	
   

  	
  5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IAG

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Bank-wide Net Income

  	
   

  	
  50

  	
  %

  
	
   

  	
   

  	
  Net Contribution Before
  Overhead

  	
   

  	
  25

  	
  %

  
	
   

  	
   

  	
  New Business Originated
  (Net Fees)

  	
   

  	
  15

  	
  %

  
	
   

  	
   

  	
  Commercial Loan Referrals

  	
   

  	
  5

  	
  %

  
	
   

  	
   

  	
  Low Cost Deposit Referrals

  	
   

  	
  5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mortgage Center

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Bank-wide Net Income

  	
   

  	
  50

  	
  %

  
	
   

  	
   

  	
  Gain on Loan Sales

  	
   

  	
  30

  	
  %

  
	
   

  	
   

  	
  HELOC Growth

  	
   

  	
  10

  	
  %

  
	
   

  	
   

  	
  Salary Expense

  	
   

  	
  5

  	
  %

  
	
   

  	
   

  	
  IAG Referrals

  	
   

  	
  5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Branches

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Bank-wide Net Income

  	
   

  	
  50

  	
  %

  
	
   

  	
   

  	
  Low Cost Deposit Growth
  (YTD AVG)

  	
   

  	
  30

  	
  %

  
	
   

  	
   

  	
  Commercial Loan
  Referrals/Originations

  	
   

  	
  10

  	
  %

  
	
   

  	
   

  	
  IAG Referrals

  	
   

  	
  5

  	
  %

  
	
   

  	
   

  	
  Salary Expense

  	
   

  	
  5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  100

  	
  %

  



 


13

















 


APPENDIX  C: 
BANK REFERRAL PROGRAMS


 


In
an effort to encourage all employees to participate in the growth of the
Company, several referral programs have been implemented by the Bank.  The objective of these referral programs is
to provide financial rewards to Enterprise Bankers for the referral of business
leads and/or for the generation of new business.  These referral programs are not included as
part of this incentive compensation plan.


 


The
Plan is not intended to change or impact these referral programs in any
way.  The descriptions of the referral
programs are included for reference only.


 


The
following referral programs are currently offered by the Bank:


 


COMMERCIAL
LOANS REFERRAL PROGRAM


 


An
incentive of .10% (10 basis points) will be paid based on the loan amount for
all referrals that result in a closed loan. 
This program applies to all loans except residential mortgages, home
equity lines of credit and/or consumer loans. 
All employees of Enterprise Bank who do not have lending authority, or
who have lending authority of $50,000 (unsecured) or less, are eligible to
participate in this program.  The
incentive will be paid monthly on loans closed during the previous month.


 


MORTGAGE
REFERRAL PROGRAM


 


An
incentive of .10% (10 basis points) will be paid based on the loan amount for
all qualified referrals that result in a closed loan.  This program applies to residential first
mortgage loans only and will not be paid on residential loans opened for
employees.  All officers and employees of
the Bank are eligible to participate in this program with the exception of
mortgage lending specialists.  The
incentive will be paid monthly on loans closed during the previous month.


 


HOME
EQUITY LINES OF CREDIT REFERRAL PROGRAM


 


An
incentive of $40.00 will be paid for each referral that results in a closed
loan.  This program refers to residential
home equity lines of credit only and will not be paid on HELOC’s opened for
employees.  All officers and employees of
the Bank are eligible to participate in this program with the exception of
mortgage lending specialists.  The
incentive will be paid monthly on loans closed during the previous month.


 


FINANCIAL
BROKERAGE REFERRAL PROGRAM


 


An
incentive of $40.00 will be paid for each referral that results in a meeting
between the potential customer and an agent of the bank.  This program refers to investments offered
through Enterprise Investment Services (brokerage).  All officers and employees of the Bank are
eligible to participate in this program, except for employees within the
Investment Advisory Group.  The incentive
will be paid monthly for meetings held during the previous month.


 


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INVESTMENT
ADVISORY GROUP REFERRAL PROGRAM


 


An
incentive equal to 10% will be paid based on the first year’s annualized net
fee on new business referred to the Investment Advisory Group.  Investments placed in Money Market funds or
identified as a temporary addition are not eligible for this referral
incentive.  Further, referral incentives
will not be paid on employee or director accounts, but a 10% discount on
investment management fees will be applied. All officers and employees of the
Bank are eligible to participate in this program, except for employees within
the Investment Advisory Group.  The
referral incentive will be paid as follows: 
75% of the referral fee will be paid in the payroll period following the
funding of the account, 25% will be paid on the one-year anniversary date of
the account being funded (second installment). If the account closes or is
significantly reduced in size within the first twelve months, the employee may
not be eligible for the second installment of the incentive.   At the discretion of the head of the
Investment Advisory Group, the full incentive may be paid following funding of
the account if significant funds are added to the account within the first
year.


 


INSURANCE
REFERRAL PROGRAM


 


An
incentive of $50.00 will be paid for referrals that result in a meeting with a
large premium insurance client (small business and individuals do not qualify)
and an Enterprise Bank insurance agent. 
All directors, officers and employees of the Bank are eligible to
participate in this program, except for employees within Enterprise Insurance
Services.  The incentive will be paid
monthly on meetings held during the previous month.


 


DEPOSIT
REFERRAL PROGRAM


 


An
incentive of $15.00 (Low cost funds: 
DDA, NOW), $10.00 (SAV, Escrow Manager) and/or $5.00 (BIS, MIS, MMDA,
IOLTA, COS, Sweep) will be paid for referrals that result in the opening of an
account.  No minimum balances are
required for the establishment of the new account and referrals will not be
paid for DDA internal accounts.  All
employees of the Bank are eligible to participate in this program.  The incentive will be paid in month following
the opening of the account.


 


Qualifying
Referrals:  In order for
the referral to qualify under these programs, the Enterprise Banker must
initiate the conversation and ask the prospect to do business with us (employee
initiated referrals).  Walk-ins,
call-ins, or other customer-initiated inquiries do not qualify for this program
(customer initiated referrals). All referrals must be entered onto CustomerView
or any other software application used for tracking referrals in order to
qualify for payment.  No verbal referrals
will be eligible.


 


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