Exhibit 10.10

 

First Western Financial, Inc.

 

NEO Discretionary Incentive Compensation Plan

 

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Plan Overview and Description

 

	
Purpose:
    	
 
    	
To provide financial incentives to Named Executive   Officers (“NEO” or “Participant”) that align with the short-term and   long-term goals of First Western (“Company”). This NEO Discretionary   Incentive Compensation Plan (“Plan”) provides a direct link between eligible   Participant’s compensation and the Company’s annual performance.
    
	
 
    	
 
    	
 
    
	
Plan Period:
    	
 
    	
January 1, 2018 through December 31, 2018
    
	
 
    	
 
    	
 
    
	
Plan Description:
    	
 
    	
The Plan will be measured and weighted based upon two   components:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
1.            Satisfaction of the established   Gateway criteria.

 

2.            Participant’s individual Performance   criteria.
    
	
 
    	
 
    	
 
    
	
Gateway:
    	
 
    	
If the established   Gateway criteria is satisfied, the Plan will become eligible for payment.
    
	
 
    	
 
    	
 
    
	
Definitions:
    	
 
    	
Performance   Measures & Goals include gross revenue budget,   return on equity budget, earnings before taxes budget, along with qualitative   measures.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Gross   Revenue Budget—   First Western Financial, Inc. fiscal year budgeted gross revenues, as is   defined on the relevant financial statements.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Return on Equity (“ROE”) Budget — The return provided to shareholders   for capital required/provided.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Defined as:
    
	
 
    	
 
    	

    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Earnings   Before Taxes (“EBT”) Budget — Budgeted First Western Financial, Inc. operating earnings   before taxes as stated on the financial statements as of December 31,   2018.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Plan   Design:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Target   Opportunity - The   percentage of base salary a Participant is eligible to receive as incentive   compensation within a fiscal year (the “Target”).  If actual results are above or below   individual’s Performance Measures and Goal thresholds as set forth on the   individual NEO’s Discretionary Incentive Plan incorporated herein, the payout   will be reduced or increased as indicated in the chart.  The Target is not a guaranteed bonus.
    
	
 
    	
 
    	
 
    
	
Gateway:
    	
 
    	
No payout can occur   if the Earnings Before Tax for First Western    Financial, Inc. for the fiscal year ending December 31, 2018   do not exceed $6.0 million.
    
	
 
    	
 
    	
 
    
	
Payment Timing
    	
 
    	
Incentives are paid annually   during the first quarter of the following year. CEO performance calculations   may be prepared quarterly and submitted to the Compensation Committee for   review.
    


 

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Administrative Provision of the Plan

 

	
Plan   Administration:
    	
 
    	
Awards under the Plan are “at-risk” based upon the performance of   the Company. Each NEO has a Discretionary Incentive Plan with an assigned   target award opportunity, expressed as a dollar amount. The Discretionary   Incentive Plan is individually tailored to the responsibility of the eligible   NEO. Certain goals of the Discretionary Incentive Plan are linked to the   Company’s annual growth objectives for revenues and earnings. Other goals   focus on specific earnings and expense targets that have been determined by   the Compensation Committee and/or Chief Executive Officer to be important for   a particular Participant to direct his or her attention to. Each performance   goal is graded individually and the Discretionary Incentive Plan award   represents the total of the achievements on the individual performance goals.   The Chief Executive Officer approves all individual Discretionary Incentive   Plans except his own, which is approved by the Compensation Committee.
    
	
 
    	
 
    	
 
    
	
Plan Eligibility:
    	
 
    	
A Participant must remain employed and in good   standing on the last day of the calendar year to which the incentive payment   relates in order to be eligible payment, except as specified in NEO’s   Employment Agreement.
    
	
 
    	
 
    	
 
    
	
Severability:
    	
 
    	
The provisions of this Plan shall be deemed   severable and the invalidity or unenforceability of any provision shall not   affect the validity or enforceability of the other provision herein.
    
	
 
    	
 
    	
 
    
	
No Waiver:
    	
 
    	
The failure by one party to require performance of   any provision shall not affect that party’s right to require performance at   any time thereafter, nor shall a waiver of any breach or default of this Plan   constitute a waiver of any subsequent breach or default or a waiver of the   provision itself.
    
	
 
    	
 
    	
 
    
	
Governing Law:
    	
 
    	
This Plan shall be construed and enforced in   accordance with Colorado law, without regard to principles concerning   conflicts of law, and the parties consent to venue in the District Court,   City & County of Denver, Colorado.
    
	
 
    	
 
    	
 
    
	
Employment Agreement:
    	
 
    	
Participant and the Company entered into an   Employment Agreement effective as of January 1, 2017. In the event of a   conflict between this Plan and the Employment Agreement, the Employment   Agreement shall control.
    
	
 
    	
 
    	
 
    
	
Knowing and Voluntary Consent:
    	
 
    	
Participant has read this Plan carefully and knows   and understands the contents of the Plan. Participant represents and agrees   that he/she fully understands his/her right to discuss all aspects of this   Plan with an attorney, that he/she has carefully read and fully understands   all of the provisions of this Plan, and that he/she voluntarily accepts this   Plan.
    


 

	
 
    	
 
    	
 
    
	
NEO
    	
 
    	
COMPANY
    


 

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