# **Exhibit 10.1**

# ** **

 

**2003**

**CommunityFirst**

**Corporate**

**AnnualIncentive Plan**

 

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# **2003 Corporate AIP**

 

# **Tableof Contents**

# ** **

| Cover                                    |   |
|------------------------------------------|--------|
|                                     |   |
| Table of  Contents                       |   |
|                                     |   |
| AIP Message from Mark Anderson           |   |
|                                     |   |
| Annual  Incentive Plan Overview          |   |
|                                     |   |
| Plan Design                              |   |
|                                     |   |
| External Award Calculation               |   |
|                                     |   |
| Balanced Scorecard  Detail               |   |
|                                     |   |
| Message from Mark Anderson               |   |
|                                     |   |
| Balanced  Scorecard Performance Measures |   |
|                                     |   |
| Performance Measure  Definitions         |   |
|                                     |   |
| 2003  Qualifying Products                |   |
|                                     |   |
| Performance  Measurement Schedule        |   |
|                                     |   |
| Attachments:                             |   |
|                                     |   |
| Internal Award  Calculation              |   |
|                                     |   |
| Balanced Scorecard Calculation Example   |   |

 

2

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| TO:  FROM:  RE:  DATE: | Senior  Management  Corporate Vice Presidents  Mark A. Anderson  2003 Annual Incentive Plan  February 18, 2003 |  |
|------------------------|----------------------------------------------------------------------------------------------------------------|--|

 

 

It is a new year; a newopportunity to prove our performance. As Wayne Gretzky said, ‘You’re only as good as your last shift on theice.”  We have completed the first 10%of 2003 and if we want to make 2003 as successful as 2002, to achieve andexceed our plan objectives, and continue to prove to the world that we have atruly special company, we must focus on our contributions to the success of theCommunity First team.

 

# **“Improving Lives Through Financial Solutions”**

 

Do you believe it?

Do you support it?

How do you help improvelives?

 

You are part of theCommunity First future and that future starts today.  We are determined to be the best Community First we can be andyou are a critical part of our success and the success of our strategicinitiatives.  We believe that we can bea top financial performer in the industry, an employer of choice, and canimprove our client’s lives.  On behalfof the Board of Directors of Community First Bankshares, Inc., I invite you toaffirm your commitment to our future, our success, and ourMission/Vision/Values and participate in the 2003 Annual Incentive Plan.

 

One year ago, as welaunched the 2002 plan following very attractive 2001 incentive awards, I tooka very bold stand in suggesting the 2002 awards would be the largest todate.  That prophecy was realized.  Today, we have the opportunity to continuethat direction.

 

I challenge you to commityourself also to understanding the components of the plan, why they areimportant and how you can contribute.

 

Best wishes for2003.  Let’s make it a team win thatwill make it a success for us all.

 

3

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#### **Introduction**

As we approach 2003 withnew challenges and opportunities by offering our customers quality financialservices, it is important that our compensation package rewards outstandingperformance in meeting our sales, financial and credit quality goals.

 

#### **Plan Objectives**

The Annual Incentive Plan(AIP), has been designed to motivate superior performance and create additionalshareholder value.

 

#### **Administrative Guidelines**

Eligibility Requirements- All Community First designated Vice Presidents, Senior Vice Presidents,Executive Vice Presidents, COO & CEO are eligible for the Corporate AIP.

 

Award Potential -There is no cap on the amount of AIP you are eligible to earn.  AIP is determined as a percent of youryear-end annual salary.  This award isbased on achievement of all designated measures.

 

Incentive PaymentSchedule**-**The AIP will be calculated and paid atthe end of each plan year, and is typically paid with the first full pay periodin March of the year following the incentive period.  The AIP plan year is defined as CFB’s fiscal year, which is alsothe calendar year.

 

Communication– AIP progress will be tracked and reported quarterly using actual data whereavailable and providing estimates on all others.  You are encouraged to track the measures on an on-going basis.

 

New Hires- Employees hired into eligible positions between January 1 and June 30 of theplan year are eligible for the plan and may receive a pro-rata award.  For example: someone hired in May will bepaid for seven months of earned incentive. Employees hired after June 30 may be eligible to participate in the planand receive a pro-rata award at the discretion of President/CEO and Director ofHuman Resources.

 

Promotions**-**Employeespromoted into AIP eligible positions would be covered under the same provisionsas a new hire.

 

Voluntary Resignation,Involuntary Resignation or Termination prior to the end of the plan year– Potential incentive payment is forfeited.

 

Voluntary Demotion– Payment may be made at the discretion and approval of the President/CEO andDirector of Human Resources.

 

Transfers**–**If the employee transfers out of an eligible position, an award may bepro-rated.  If an employee transfers toa different size location, the AIP calculation will be pro-rated to reflect theappropriate time worked in each location during the plan year.

 

Medicalor Unpaid Medical Leave of Absence– Will be reviewed on a case by case basis.

 

Overall PerformanceRequirements – To emphasize that achievement of the incentiveplan goals must not come at the expense of other responsibilities, no incentiveawards will be made to participants whose overall performance for the yearreceives a rating of less than “Meets Expectations”.

 

Periodic Review– Periodically the effectiveness of the plan will be reviewed to assure theplan supports CFB’s strategic direction. Each year the plan will be reviewed to determine participant eligibilityand whether it will be continued for the next fiscal year.

 

Reserved Right- Community First reserves the right to change any and all terms of theCorporate Annual Incentive Plan, up to and including termination of the plan,at any time.

 

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**2003 Annual Incentive Plan (AIP)**

**PlanDesign**

 
| **I.  Group**                                                                                                             |   | **Target  Incentive** |   | **Maximum** |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|-------------|--------|
| CEO                                                                                                                            |   | 50                    | %      | 100         | %      |
| Vice  Chairman/COO                                                                                                             |   | 40                    | %      | 80          | %      |
| Division Presidents  Chief Financial Officer  Chief Investment Officer  CIO/Pres. of CFTI  Credit Officer  SVP/Human Resources |   | 30                    | %      | 60          | %      |
| All  other SVP’s                                                                                                          |   | 25                    | %      | 50          | %      |
| VP’s                                                                                                                      |   | 15                    | %      | 30          | %      |

 
| **II.  AIP Split   (50% Internal/50% External)** |   | **Target  Incentive** |   | **Internal** |   | **External** |   |
|-------------------------------------------------------|--------|-----------------------|--------|--------------|--------|--------------|--------|
| A.                                                    |   | 50                    | %      | 25.0         | %      | 25.0         | %      |
| B.                                                    |   | 40                    | %      | 20.0         | %      | 20.0         | %      |
| C.                                                    |   | 30                    | %      | 15.0         | %      | 15.0         | %      |
| D.                                                    |   | 25                    | %      | 12.5         | %      | 12.5         | %      |
| E.                                                    |   | 15                    | %      | 7.5          | %      | 7.5          | %      |

 
| **III.  Balanced  Scorecard Split** |   | **AIP** |   | **Balanced  Scorecard** |   | **Total  Incentive** |   |
|------------------------------------------|--------|---------|--------|-------------------------|--------|----------------------|--------|
| Division  Presidents                     |   | 50      | %      | 50                      | %      | 100                  | %      |
| All  Other                               |   | 75      | %      | 25                      | %      | 100                  | %      |

 

For Division and CFCPresidents, the Corporate AIP represents 50% of their Incentive Planstructure.  The other 50% will bedetermined based upon the Balanced Scorecard approach.  The Balanced Scorecard is the annualincentive plan we use for our Bank Presidents/Branch Managers (our SalesManagement Group).   For all otherCorporate participants, the AIP represents 75% of their incentive and 25% isdriven by the Balanced Scorecard.

 

| **Balanced  Scorecard – Target Incentive** |   |
|-------------------------------------------------|--------|
| **Group**                                       |   | **Target  Incentive** |   |
| 1 % 2                                           |   | 100 | % |
| 3                                               |   | 75 | % |
| 4                                               |   | 60 | % |
| 5                                               |   | 50 | % |

 

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**EXTERNALAWARD****CALCULATION**

 

Compares CFB performancein 2002 on Return on Equity (ROE) and Total Shareholder Return (TSR) to SNLpeer group (30 banks).

 
| **Percentile** |   | 85th or higher |   | 100           | %      | 150  | %       | 200            | %      |
|----------------|--------|----------------|--------|---------------|--------|------|---------|----------------|--------|
| **ROE**        |   | 50th*          |   | 50            | %      | 100  | %       | 150            | %      |
|           |   | 49th or lower  |   | 0             | %      | 50   | %       | 100            | %      |
|           |   |           |   | 49th or lower |   | 50th | *  | 85th or higher |   |

** **

**Percentile TSR**

 

----

*Award will be proratedfrom 50th % to 85th %.

 

**External award calculation**:

 
|   |   |       |   | **% of  Salary at Performance Level** |   |
|--------|--------|------------|--------|---------------------------------------|--------|
|   |   | **Target** |   | **50%**                               |   | **100%** |   | **150%** |   | **200%** |   |
| I      |   | 25.00      | %      | 12.50                                 | %      | 25.00 | % | 37.50 | % | 50.00 | % |
| II     |   | 20.00      | %      | 10.00                                 | %      | 20.00 | % | 30.00 | % | 40.00 | % |
| III    |   | 15.00      | %      | 7.50                                  | %      | 15.00 | % | 22.50 | % | 30.00 | % |
| IV     |   | 12.50      | %      | 6.25                                  | %      | 12.50 | % | 18.75 | % | 25.00 | % |
| V      |   | 7.50       | %      | 3.75                                  | %      | 7.50 | % | 11.25 | % | 15.00 | % |

 

 

The **Selected Peer Group** reflectsour selection of the 29 other institutions most like the subjectinstitution to be used as a peer group in comparing relative compensationlevels. The automated process searches in sequence for:

 

1.  Banks in the same state within 40% of totalassets.

2.  Banks in the same region within 40% of totalassets.

3.  Banks in the same state within 80% of totalassets.

4.  Banks in the same region within 80% of totalassets.

5.  Any bank within 40% of total assets.

6.  Any bank within 80% of total assets.

7.  Banks closest in asset size.

 

If at any point in thesequence 29 banks are found, the sequence stops and those banks form theSelected Peer Group.  If step six isreached and there are still not 29 other banks, the banks closest in asset sizeany where in the country are chosen to round out the peer group.

 

6

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### ****

 

### **A Message from Mark Anderson (BalancedScorecard)**

 

 

Greetings Team!!!!!

 

As we complete 2002, werealize the second complete year utilizing the Balanced Scorecard.  What is the assessment after nearly twoyears of use?  The Balanced Scorecardcontinues to have an increasing impact on performance and actions, and we madetremendous progress across the board in the Scorecard components.  During the initial year of usage, we learneda great deal about the scorecard and as a result, we made some very importantenhancements to it for 2002.  Ourinterest in a meaningful scorecard and desire to “listen to you”, led to a fewadditional modifications during the year in the form of a “retroactive mid-yearcorrection”.  This is a terrific tooland measurement vehicle for all of us and the improvement in our BalancedScorecard totals have been very impressive.

 

Not content to stay thesame, we assembled all the feedback, questions and concerns from you.  This led to a tremendous series ofdiscussions and debates about every aspect of the scorecard that resulted in:

 

•                  Areaffirmation of our support of the scorecard,

•                  Sweepingmodifications for 2003, and

•                  Groundworkfor additional change in 2004.

 

The attached materialwill present the 2003 Balanced Scorecard. Among the highlights:

 

Removed from Scorecard

 

•      Investment Income to Plan

•      Loan Fees to Plan

•      Campaign Performance

•      New Customer Cross-Sell

 

 

Addedto Scorecard

 

•                  Penetration(OPB, OBB & Debit Card)

•                  Net RevenueGrowth

 

Why did we drop thesefour measures?

 

•                  Investmentincome and loan fees are also critical components of Net Revenues/FTE andNon-Interest Income/FTE.  This levelsthe playing field across markets and the 90-day plans will still tie to profitplan levels for each category, while we emphasize total fee income growth.

•                  Campaignperformance has been removed since we have elected to change our approach tocampaigns.  Our new approach will tieclosely to promotion areas, 90-day plans and the new scorecard.

•                  Newcustomer cross-sell – Frankly, we would like to have retained this measure andbelieve that we may have this (or a better measure) as a scorecard component inthe future with more accurate data and less need to manually test thesystem.  Keep emphasizing new customersolutions and additional products.

 

7

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Why did we add two newmeasures?

 

•                  Growth/Penetration– Alternative channels are critical relationship builders.  With the explosive growth of OPB (OnlinePersonal Banking), OBB (Online Business Banking) and debit card usage, we haveshown the importance of these approaches to transactions by our clients.  As an interesting note, since our debit cardinformation does not provide easily available location by location information,this is a team goal.  All CommunityFirst banks will work together, drive penetration and success, and receive thesame score.

•                  NetRevenue Growth – This is a very important change that emphasizes growing ourbusiness, whether it is with new or existing clients.  Put simply, we must realize growth, and the earlier scorecard didnot have an ideal reward for growth.

 

The list of enhancementscontinues.  Our scaling has been changedin a way that provides narrower bank scoring which will result in more accuratescores.  We added a bonus point featureto the credit component.  The weights ofthe components of the scorecard were reviewed and changed as appropriate givenour 2003 focus.

 

Finally, in conjunctionwith our analysis of the scorecard, there was a very strong consensus that inthe future, the next generation of the Balanced Scorecard will become morebalanced.  How do we do that?  The inclusion of an employee component and aclient component appear to be appropriate. For 2003, we will work on developing a “below the line” (that is to say,we will develop a score but it will not factor into the 2003 scorecard)baseline for client and employee.  Ourobjective is to include those in the Balanced Scorecard in 2004 or 2005.

 

We are very excited andhope you share the enthusiasm.  Thereare great opportunities in Community First and the excellent progress over thepast few years provides an excellent leverage point.  Thank you for proving the importance of the Scorecard.

 

All the best,

 

MarkAnderson, CFA

Presidentand Chief Executive Officer

 

8

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#### **BalancedScorecard Performance Measures**

There are six measurementfactors included in the AIP plus two “below the line” measures.   Our six weighted measures are:

 

1.               Number of sales perFTE per week

2.               Net ControllableRevenue per FTE

3.               ControllableNon-interest Income per FTE

4.               Net ControllableRevenue Growth

5.               Credit Goal Scoring

6.               Growth/Penetration

 

2003 brings increased focus on two key areas of our success:our people and our customers.  For thefirst time, we’ll be including measures for each of those areas, providingfeedback and building benchmarks for future planning.  Ultimately a determination will be made as to which of these, ifany will be integrated in to future scorecard measures.

 

**Thesetwo measures have no weighting in 2003 and will not affect scorecard awards.**

 

In addition to thesemeasures, the bank’s performance against profit plan is an important indicatorof success and is included in the AIP. The profit plan is based on historical performance but is designed todrive higher level performance.

 

If the RFC/CFC’s actualperformance is less than 90% of profit plan, unless a ROE of 30% is achieved,no AIP will be awarded.  Where actualperformance exceeds the profit plan, a higher AIP will be paid to reward Presidents/Managers.

 

Those employees whoestablish aggressive profit plans, with higher levels of performance over theprevious year, and exceed those plans, will receive a bonus incentive.

 

 

#### **Calculating the Balanced Scorecard AIP Award**

•                  Eachof the measures are based on actual performance and multiplied by the weightassigned to each.  These weighted scoresare added to obtain the **Balanced Scorecard Points**.  Bonus points have been added to all of themeasures.  This will allow rewards forperformance above and beyond expectations. *Also,a special bonus is included on Sales/FTE/Week measure.  Locations that have a 20% increase overtheir 2002 average will move into the next higher level.  This will reward substantial growthperformance.*

 

•                  Thebank’s actual **Performance vs. Profit Plan** is then computed.  If it is less than 90%, unless the specifiedROE is achieved, no AIP will be awarded.

 

•                  The**BalancedScorecard Performance Points** number is computed by multiplying theTotal Performance Points in Part A by the Bank’s Performance vs. Profit Planfrom Part B.  This provides for a higherincentive when the bank’s performance exceeds plan.

 

•                  The**TargetIncentive** for each bank is based on a grid showing the bank’s NetControllable Revenue per FTE vs. Annualized Pretax Adjusted Earnings.  This target incentive takes into accountbank earnings and efficiency, rewarding banks that achieve higher earnings andgreater efficiency.

 

•                  The**BaseBalanced Incentive** is computed by multiplying the Target Incentive(D) by the Balance Performance Index (C). This is the percent of base salary to be paid as the AIP.

 

•                  A**BonusIncentive** is added to the AIP if the bank’s Balanced ScorecardPoints (A) are greater than 50 and the bank’s performance vs. profit planexceeds 100%.  The bonus incentive isbased on a

 

9

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schedule reflecting thepercentage increase in the 2003 Profit Plan pre-tax adjusted earnings over the2002 actual pre-tax adjusted earnings. This is intended to provide higher rewards for Presidents/Managers whoset aggressive plans and exceed them.

 

•                  The**TotalBalance Incentive Percentage** equals the Base Balanced Incentive plusthe Bonus Incentive, if applicable. This is the total percentage of the Bank President/Managers salary to bepaid out as the AIP.

 

**The following pages illustrate how the BalancedScorecard AIP scoring and calculations are determined:**

 

1.               Performance MeasureDefinitions

2.               2003 QualifyingProducts

3.               Performance MeasureSchedule that shows the assigned goal and scoring tiers

 

10

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**2003 CFB BalancedScorecard**

**Regional FinancialCenters/Community Financial Centers**

**Performance MeasurementDefinitions** – Presidents/Managers

** **
| **1.**   **Number of Sales/FTE/Week**                                                                               |
|--------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     | **Sales** | = # of qualifying  products sold.  A list of qualifying  products is included (see page 10). |
|                                                                                                                     | **FTE** | = Full-time  equivalents, on an actual hours worked basis, as reported on the Ceridian  Payroll System.  The calculation for  incentive purposes will use the monthly FTE:

•      All  Bank and Investment Employees

•      .60  Trust

•      .30  Insurance |
|                                                                                                                     | **Week** | =  # of weeks in the period being reported.   This will be adjusted for the exact number of days in the period. |
|                                                                                                                     |  

The  calculation for incentive purposes will be based on Quarterly performance  divided by four quarters for the year. |
|                                                                                                                     |
|                                                                                                                          |
| ****Special Credit: a 20% increase over same  quarter 2002 average will allow a move to the next higher payout level.*** |
|                                                                                                                     |
| **2.   Net Controllable Revenue/FTE**                                                                               |
|                                                                                                                     | **Net Controllable Revenue** | =  (Net Interest Income + Total Non-interest Income (including loan fees+JV Soft  Dollar fees) - Security Gains - BOLI Benefit - Undistributed Income from  subsidiaries). |
|                                                                                                                     | **FTE** | = Full-time  equivalents, on an actual hours worked basis, as reported on the Ceridian  Payroll System.  The calculation for  incentive purposes will use the monthly FTE:

•      All  Bank and Investment Employees

•      .60  Trust

•      .30  Insurance |
|                                                                                                                     | The  calculation will be based on year-to-date annualized performance. |
|                                                                                                                     |   |
| **3.   Controllable NII/FTE**                                                                                       |   |   |
|                                                                                                                     | **NII** | =  (Total Non-Interest Income (incl. loan fees+JV Soft Dollar fees) - Security  Gain - BOLI Benefit - Undistributed Income) |
|                                                                                                                     | **FTE** | = Full-time  equivalents, on an actual hours worked basis, as reported on the Ceridian  Payroll System.  The calculation for  incentive purposes will use the monthly FTE:

•      All  Bank and Investment Employees

•      .60  Trust

•      .30  Insurance |
|                                                                                                                     |  

The  calculation will be based on year-to-date annualized performance. |
|                                                                                                                     |
| **4.   Net Controllable Revenue Growth**                                                                            |
|                                                                                                                     | **Net Controllable Revenue** | =  (Net Interest Income + Total Non-interest Income (incl. loan fees+JV Soft  Dollar fees) - Security Gains - BOLI Benefit - Undistributed Income from  subsidiaries). |
|                                                                                                                          |  |  |  |  |  |  |

 

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|                                               |                                                                                                                                                                                                                                                        |                                                                                                 |   |
|----------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|--------|
| **5.   Credit Measurements**                  |
|                                               | **Credit Goal Scoring**                                                                                                                                                                                                                                     | =  This is the Credit Goal Score as reported in the Credit Goal Report prepared  by Loan Accounting. |
|                                               |                                                                                                                                                                                                                                                        |                                                                                                 |   |
| **6.   Growth/Penetration**                   |                                                                                                                                                                                                                                                        |
|                                               | ***On-line Personal Banking***                                                                                                                                                                                                                              | =  # of new enrollees                                                                                |   |
|                                               | **On-line Business Banking**                                                                                                                                                                                                                                | =  # of new enrollees                                                                                |   |
|                                               | **Debit Card Penetration**                                                                                                                                                                                                                                  | =  # increased transactions                                                                          |   |
|                                               |                                                                                                                                                                                                                                                        |                                                                                                 |   |
| **STUDY MEASURES**                                 |                                                                                                                                                                                                                                                        |
| **1.   People Index**                         |
|                                               | **Voluntary Turnover**                                                                                                                                                                                                                                      |
|                                               | Employees  who choose to leave employment with Community First.  Reasons will typically include:  new job, working conditions, pay or other  personal reasons.  This will be  reported monthly with an annual roll-up.                       |
|                                               | **Employee Engagement**                                                                                                                                                                                                                                     |
|                                               | There  will be an employee satisfaction survey conducted across the company once  during 2003.  An average of all  responses will be reported as well as an average for each location and/or  department.                                              |
|                                               |
| **2.   2003 Customer Performance Indicators** |
|                                               | **Annual Customer Telephone Survey**                                                                                                                                                                                                                        |
|                                               | Customers across Community first will be surveyed to assess  industry-accepted drivers of customer engagement.  Each Branch/Market will receive a benchmark score.  It is anticipated this survey will be  conducted in second quarter.           |
|                                               |                                                                                                                                                                                                                                                        |
|                                               | **Percentage of Single Service Households**                                                                                                                                                                                                                 |
|                                               | Single  Service Households represent significant opportunities to grow existing  customer relationships.  By Branch,  this percentage will be reported with the monthly Scorecard.  This number will be compared to the 2002  year-end benchmark. |
|                                               |                                                                                                                                                                                                                                                        |
|                                               | **Total  Household Cross-Sell**                                                                                                                                                                                                                             |
|                                               | The number of accounts  held by a household directly correlates to customer retention, loyalty, and  profitability.  By Branch, this number  comprised of both personal and business households will be reported with the  monthly Scorecard.          |
|                                               |                                                                                                                                                                                                                                                        |
|                                               | **New Customer Household Cross-Sell**                                                                                                                                                                                                                       |
|                                               | The  number of accounts sold to new customer households directly correlates to the  Branch sales process.  By Branch, this  number comprised of both personal and business households will be reported  with the monthly Scorecard.                    |
|                                               |
| **Other Definitions**                              |
|                                               | **Pretax Adjusted Earnings** = income b/4 tax + corp directed training +  corp directed advertising + CFSC data processing + goodwill + intangibles +  mgmt fee - undistributed income from subsidiaries - securities gains                                 |
|                                                    |                                                                                                                                                                                                                                                             |                                                                                                      |        |  |  |

 

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**2003 CFB BalancedScorecard**

**Regional FinancialCenters/Community Financial Centers**

## ***2003 Qualifying Productsfor Sales Measurements***

** **

***(Changes from 2002 highlighted in blue)***

 

**Numberof Sales/FTE/Week**

 
| **Qualifying  New Products**                                                                |   | **Source**                             |
|---------------------------------------------------------------------------------------------|--------|----------------------------------------|
|                                                                                        |   |                                   |
| 1.     Checking (Retail, Business, and Public)                          |   | 1.     ITI         |
| 2.     Savings (Retail, Business, and Public)                           |   | 2.     ITI         |
| 3.     Certificate of Deposit (Retail, Business,  and Public)           |   | 3.     ITI         |
| 4.     Retirement Accounts (Savings and  Certificates)                  |   | 4.     ITI         |
| 5.     Loans/Lines                                                      |   | 5.     ITI         |
| •     Consumer  loans                                              |   |                                   |
| •     Ready Credit                                                 |   |                                   |
| •     Mortgage  (non-CFM)                                          |   |                                   |
| •     Home Equity  Loans & Lines                               |   |                                   |
| •     Agricultural                                                 |   |                                   |
| •     Commercial                                                   |   |                                   |
| •     Tax Exempt  Loans                                            |   |                                   |
| •     Commercial  Revolving Credit                                 |   |                                   |
| •     Letters of  Credit                                           |   |                                   |
| •     Direct  Leases                                               |   |                                   |
| 6.     ATM Card                                                         |   | 6.     ITI         |
| 7.     Debit Card                                                       |   | 7.     ITI         |
| 8.     Safe Deposit Box                                                 |   | 8.     ITI         |
| 9.     Payment Protection (CGLI)                                        |   | 9.     ITI         |
| •     Single  Life  (1 sale)                                  |   |                                   |
| •     Joint  Life  (2 sales)                                  |   |                                   |
| •     Disability  (1 sale)                                         |   |                                   |
| •     Single  Life/Disability  (2 sales)                      |   |                                   |
| •     Joint  Life/Disability  (3 sales)                       |   |                                   |
| 9.     Elan Credit Card*                                                |   | 9.     Elan Report |
| •     Consumer                                                     |   |                                   |
| •     Merchant                                                     |   |                                   |
| 10.   Investments*                                                                |   | 10.   Primevest File*        |
| •      Network  Trades                                        |   |                                   |
| 11.   Online Banking                                                              |   | 11.   Corillian File         |
| 12.   Online Bill Pay                                                             |   | 12.   Corillian File         |
| 13.   Online Business Banking*                                                    |   | 13.   H&S File*          |
| 14.   Insurance Policies*                                                         |   | 14.   Insurance File*        |
| •      New  Property & Casualty Policies/Endorsements     |   |                                   |
|                                                                                        |   |                                   |
| 15.   Wealth Management *                                                         |   | 15.   Wealth Mgmt File*      |
| 16.   Community First Mortgage*                                                   |   | 16.   Wells Fargo File*      |
|                                                                                        |   |                                   |
| **Products NOT Qualifying:**                                                                |   |                                   |
| 1.     Commercial Floor Plans                                           |   |                                   |
| 2.     Indirect Loans                                                   |   |                                   |
| 3.     New  non-Property & Casualty Insurance Policies/Endorsements |   |                                   |
| 4.     Renewal Insurance Policies                                       |   |                                   |
| 5.     Investment Direct Trades                                         |   |                                   |
| 6.     Checking and Savings account upgrades                            |   |                                   |
| 7.     Loan and certificates automatically  renewed                     |   |                                   |

 

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****In development***

 

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# **2003 CFB Balanced Scorecard**

***PerformanceMeasurement Schedule***

 

***(Changes made fromthe 2002 scorecard to the 2003 scorecard are highlighted in blue.)***

 
| **Measure**                           |   | **Weighting** |   | **Payout Scale** |    | **Score** |   | **Bonus Points**                               |                                                 |
|---------------------------------------|--------|---------------|--------|------------------|---------|-----------|--------|------------------------------------------------|------------------------------------------------------|
|                                  |   |          |   |             |    |      |   |                                           |                                                 |
| **Sales/FTE/Week**                    |   | 15.0          | %      | 3.00             |    | 10.00     |   | Add  1 point for each .05 increment above 5.25 |                                                 |
|                                  |   |          |   | 3.25             |    | 20.00     |   |                                           |                                                 |
|                                  |   |          |   | 3.50             |    | 30.00     |   |                                           |                                                 |
|                                  |   |          |   | 3.75             |    | 40.00     |   |                                           |                                                 |
|                                  |   |          |   | 4.00             |    | 50.00     |   |                                           |                                                 |
|                                  |   |          |   | 4.25             |    | 60.00     |   |                                           |                                                 |
|                                  |   |          |   | 4.50             |    | 70.00     |   |                                           |                                                 |
|                                  |   |          |   | 4.75             |    | 80.00     |   |                                           |                                                 |
|                                  |   |          |   | 5.00             |    | 90.00     |   |                                           |                                                 |
|                                  |   |          |   | 5.25             |    | 100.00    |   |                                           |                                                 |
|                                  |   |          |   |             |    |      |   |                                           |                                                 |
| **Net Controllable Revenue/FTE**      |   | 20.0          | %      | $                | 200,000 |      | 10.00  |                                           | Add  1 point for each $1,000 increment over $272,000 |   |
|                                  |   |          |   | $                | 208,000 |      | 20.00  |                                           |                                                 |   |
|                                  |   |          |   | $                | 216,000 |      | 30.00  |                                           |                                                 |   |
|                                  |   |          |   | $                | 224,000 |      | 40.00  |                                           |                                                 |   |
|                                  |   |          |   | $                | 232,000 |      | 50.00  |                                           |                                                 |   |
|                                  |   |          |   | $                | 240,000 |      | 60.00  |                                           |                                                 |   |
|                                  |   |          |   | $                | 248,000 |      | 70.00  |                                           |                                                 |   |
|                                  |   |          |   | $                | 256,000 |      | 80.00  |                                           |                                                 |   |
|                                  |   |          |   | $                | 264,000 |      | 90.00  |                                           |                                                 |   |
|                                  |   |          |   | $                | 272,000 |      | 100.00 |                                           |                                                 |   |
|                                  |   |          |   |             |    |      |   |                                           |                                                 |
| **Controllable NII/FTE**              |   | 20.0          | %      | $                | 45,000  |      | 10.00  |                                           | Add  1 point for each $1,000 increment over $62,100  |   |
|                                  |   |          |   | $                | 46,900  |      | 20.00  |                                           |                                                 |   |
|                                  |   |          |   | $                | 48,800  |      | 30.00  |                                           |                                                 |   |
|                                  |   |          |   | $                | 50,700  |      | 40.00  |                                           |                                                 |   |
|                                  |   |          |   | $                | 52,600  |      | 50.00  |                                           |                                                 |   |
|                                  |   |          |   | $                | 54,500  |      | 60.00  |                                           |                                                 |   |
|                                  |   |          |   | $                | 56,400  |      | 70.00  |                                           |                                                 |   |
|                                  |   |          |   | $                | 58,300  |      | 80.00  |                                           |                                                 |   |
|                                  |   |          |   | $                | 60,200  |      | 90.00  |                                           |                                                 |   |
|                                  |   |          |   | $                | 62,100  |      | 100.00 |                                           |                                                 |   |
|                                  |   |          |   |             |    |      |   |                                           |                                                 |
| **Net Controllable Revenue $ Growth** |   | 20.0          | %      | 2.0              | %       | 10.00     |   | Add  1 point for each .1% increment above 8.0% |                                                 |
|                                  |   |          |   | 2.7              | %       | 20.00     |   |                                           |                                                 |
|                                  |   |          |   | 3.3              | %       | 30.00     |   |                                           |                                                 |
|                                  |   |          |   | 4.0              | %       | 40.00     |   |                                           |                                                 |
|                                  |   |          |   | 4.7              | %       | 50.00     |   |                                           |                                                 |
|                                  |   |          |   | 5.4              | %       | 60.00     |   |                                           |                                                 |
|                                  |   |          |   | 6.0              | %       | 70.00     |   |                                           |                                                 |
|                                  |   |          |   | 6.7              | %       | 80.00     |   |                                           |                                                 |
|                                  |   |          |   | 7.4              | %       | 90.00     |   |                                           |                                                 |
|                                  |   |          |   | 8.0              | %       | 100.00    |   |                                           |                                                 |

 

14

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| **Credit Goal Score**                                    |   | 15.0   | %      | 3.5       |   | 10.00  |   | Add 1 point for each .05 increment below 2.0          |   |
|----------------------------------------------------------|--------|--------|--------|-----------|--------|--------|--------|-------------------------------------------------------|--------|
|                                                     |   |   |   | 3.3       |   | 20.00  |   |                                                  |   |
|                                                     |   |   |   | 3.2       |   | 30.00  |   |                                                  |   |
|                                                     |   |   |   | 3.0       |   | 40.00  |   |                                                  |   |
|                                                     |   |   |   | 2.8       |   | 50.00  |   |                                                  |   |
|                                                     |   |   |   | 2.7       |   | 60.00  |   |                                                  |   |
|                                                     |   |   |   | 2.5       |   | 70.00  |   |                                                  |   |
|                                                     |   |   |   | 2.3       |   | 80.00  |   |                                                  |   |
|                                                     |   |   |   | 2.1       |   | 90.00  |   |                                                  |   |
|                                                     |   |   |   | 2.0       |   | 100.00 |   |                                                  |   |
|                                                     |   |   |   |      |   |   |   |                                                  |   |
| **Online Personal Banking****[# new enrollees]**         |   | 3      | %      | 4,000     |   | 10.00  |   | Add  1 point for each 100 increment over 13,000       |   |
|                                                     |   |   |   | 5,000     |   | 20.00  |   |                                                  |   |
|                                                     |   |   |   | 6,000     |   | 30.00  |   |                                                  |   |
|                                                     |   |   |   | 7,000     |   | 40.00  |   |                                                  |   |
|                                                     |   |   |   | 8,000     |   | 50.00  |   |                                                  |   |
|                                                     |   |   |   | 9,000     |   | 60.00  |   |                                                  |   |
|                                                     |   |   |   | 10,000    |   | 70.00  |   |                                                  |   |
|                                                     |   |   |   | 11,000    |   | 80.00  |   |                                                  |   |
|                                                     |   |   |   | 12,000    |   | 90.00  |   |                                                  |   |
|                                                     |   |   |   | 13,000    |   | 100.00 |   |                                                  |   |
|                                                     |   |   |   |      |   |   |   |                                                  |   |
| **Online Business Banking****[# new enrollees]**         |   | 3      | %      | 750       |   | 10.00  |   | Add  1 point for each 30 increment over 3,000         |   |
|                                                     |   |   |   | 1,000     |   | 20.00  |   |                                                  |   |
|                                                     |   |   |   | 1,250     |   | 30.00  |   |                                                  |   |
|                                                     |   |   |   | 1,500     |   | 40.00  |   |                                                  |   |
|                                                     |   |   |   | 1,750     |   | 50.00  |   |                                                  |   |
|                                                     |   |   |   | 2,000     |   | 60.00  |   |                                                  |   |
|                                                     |   |   |   | 2,250     |   | 70.00  |   |                                                  |   |
|                                                     |   |   |   | 2,500     |   | 80.00  |   |                                                  |   |
|                                                     |   |   |   | 2,750     |   | 90.00  |   |                                                  |   |
|                                                     |   |   |   | 3,000     |   | 100.00 |   |                                                  |   |
|                                                     |   |   |   |      |   |   |   |                                                  |   |
| **Debit Card Penetration****[# increased transactions]** |   | 4      | %      | 1,700,000 |   | 10.00  |   | Add  1 point for each 20,000 increment over 2,825,000 |   |
|                                                     |   |   |   | 1,825,000 |   | 20.00  |   |                                                  |   |
|                                                     |   |   |   | 1,950,000 |   | 30.00  |   |                                                  |   |
|                                                     |   |   |   | 2,075,000 |   | 40.00  |   |                                                  |   |
|                                                     |   |   |   | 2,200,000 |   | 50.00  |   |                                                  |   |
|                                                     |   |   |   | 2,325,000 |   | 60.00  |   |                                                  |   |
|                                                     |   |   |   | 2,450,000 |   | 70.00  |   |                                                  |   |
|                                                     |   |   |   | 2,575,000 |   | 80.00  |   |                                                  |   |
|                                                     |   |   |   | 2,700,000 |   | 90.00  |   |                                                  |   |
|                                                     |   |   |   | 2,825,000 |   | 100.00 |   |                                                  |   |

 

15

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