EX-10.9








    Exhibit 10.9



 



     



 




    Annual
    Incentive Bonus Program



 




    Performance
    Criteria



 



    The following performance criteria will be used as measurements
    in the Annual Incentive Bonus Program. First Business Financial
    Services, Inc. (the “Company”) and each subsidiary
    entity (“entity”) except First Business
    Trust & Investments will use the following three
    performance criteria. First Business Trust &
    Investments will use two criteria, Top Line Growth and Adjusted
    Net Income. The performance criteria used by the Company and
    each entity will be equally weighted in determining overall
    performance.



 


			
	 	    • 
	
    Return on Equity or Return on Assets: Return on Equity will be
    used by the Company and Return on Assets will be used by the
    entities.

	 
	 	    • 
	
    Top Line Growth




 


			
	 	    • 
	
    Net Interest Income plus Fee Income




 


			
	 	    • 
	
    Adjusted Net Income




 


			
	 	    • 
	
    Company: Net income pre-tax, pre-provision, after actual net
    charge offs

	 
	 	    • 
	
    Entity: Net income pre-tax, pre-allocation, pre-provision, after
    actual net charge offs




 




    Targeted
    Base Salary Percentage



 



    The targeted base salary percentage for bonus payment at three
    possible achievement levels (Threshold, Target and Superior) for
    each employment level within the Company shall be determined by
    the Company Board, acting upon the recommendation of the
    Compensation Committee. If targeted percentages for any
    employment level shall be based on a range, then the percentage
    for each participating individual within such level shall be
    determined by the Compensation Committee or management, as
    appropriate. The targeted base salary percentages for each
    participating individual shall be promptly communicated to such
    individual.



 




    Mix of
    the Payout



 


	 	 	 	 	 	 	 	 	 
	
 
	
 
	
    Company
	
 
	
 
	
    Entity
	
 

	 

	

    Company Employees


	
 
	
 
	
    100
	
    %
	
 
	
 
	
    n/a
	
 

	

    Entity Employees


	
 
	
 
	
    25
	
    %*
	
 
	
 
	
    75
	
    %









 





 




			
	
    * 		
    Based on FBFS ROE only.



 




    Safeguards



 



    Adjusted Net Income percentage is self-funding.



 



    Net Income After Tax must meet or exceed the aggregate bonus
    payment.



 




    Eligibility



 



    Employees must work a minimum of 30 hours per week to
    qualify for the bonus program.



 



    Employees must be hired by October 1 of any year the plan is in
    effect to be eligible for the Bonus Program. All employees must
    be employed on the date of payout to receive their bonus.













 






    If an employee is promoted before October 1 of any year the plan
    is in effect, then that employee will be eligible for the bonus
    percentage that is commensurate with their new position for that
    year.



 



    If an employee transfers between entities or between the Company
    and an entity on or after July 1 of any year the plan is in
    effect, then that employee’s bonus will be calculated based
    on the performance of the entity or the Company that they were
    employed in prior to the transfer.



 



    The entity President and the Company CEO may approve
    redistribution of bonus dollars to eligible participants within
    the entity or the Company as circumstances and individual
    performance warrant. Section 16 Officers are not eligible
    for any redistributed bonus dollars under this provision.



 



    Approved: March 13, 2009