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BP (54233) POINT FINANCIAL CORP. EXHIBIT 10.35

Exhibit 10.35

Pointe Financial Corporation

Annual Incentive Plan

Pointe Financial Corporation

Compensation Handbook 2004

Annual Incentive Plan

Page 1 of 3

1. Purpose and Concept of the Plan

Pointe Financial, Inc. has implemented the Annual Incentive Plan to focus Company and Bank officers on successful operating performance that achieves strong earnings growth.

The Plan offers the opportunity to earn annual cash incentive awards depending on Pointe Financial’s performance versus its profit plan for the fiscal year. Actual earnings versus a pre-set performance range determine the total incentive pool and preliminary awards to participants. Individual job performance may increase or decrease a participant’s share of the incentive pool, without increasing the overall payout amount.

 

2. Selection of Eligible Participants

Generally, officers in the Bank and Holding Company at the Assistant Vice President level and above are eligible to participate in the Plan.

Prior to the beginning of each fiscal year, the CEO recommends participants, excluding himself, to the Compensation Committee of the Board (the Committee) for approval. Exhibit A provides a listing of eligible participants for the current year.

New participants may also be added during the fiscal year on a prorated basis. Participation in the Plan for a particular year does not guarantee future participation.

3. Incentive Opportunity

For each category of participants, a threshold, target, and maximum incentive award is established. The dollar value of potential incentive awards is calculated as a percent of a participant’s salary in effect at the beginning of the fiscal year, except in the case of participants added during the year. In those cases, incentives are based on a participant’s salary when the officer becomes a participant. Threshold, target, and maximum incentive award levels for participants are shown in Exhibit A.

Specific details of the anticipated current year awards at the threshold, target, and maximum incentive award levels are shown in Exhibit B.

3. Performance Period

A new plan cycle begins each fiscal year. Performance is based on final results at the end of the fiscal year.

Pointe Financial Corporation

Compensation Handbook 2004

Annual Incentive Plan

Page 2 of 3

4. Establishing the Earnings Performance Range

As a part of the annual budgeting process, Pointe Financial forecasts revenues and expenses (including the total target incentive pool). From this budgeting process, target earnings (after estimates for incentive expense and taxes) along with threshold and stretch earnings levels are developed. Threshold, target, and stretch earnings represent the performance range used to calculated incentive earnings. 

5. Calculating the Total Incentive Pool

Actual earnings are compared to the performance range to determine the total incentive pool. Earnings below the performance threshold result in no incentive pool. Earnings at the threshold, target, and stretch performance levels result in an incentive pool that corresponds to the sum of participants’ threshold, target, or maximum incentive award levels. Interpolation is used to calculate the total incentive pool if earnings fall between threshold and target, or target and stretch. If earnings exceed the stretch performance level, the total incentive pool is capped as the sum of the maximum incentive level for all participants.

6. Adjusting for Individual Participant Performance

The Chief Executive Officer, with input from other members of senior management, may adjust the actual incentive awards of individual participants based on an assessment of their job performance for the year. However, individual adjustments do not increase or decrease the overall incentive pool. In order to increase some participants’ awards, an equivalent decrease in other incentive awards must be made.

7. Timing of Payout and Vesting Schedule

Payout of earned awards are made as soon as accurate earnings information is available for the fiscal year. There is no vesting of awards and a participant must be employed by Pointe Financial on the date payments are made in order to qualify for an incentive award. Otherwise, no incentive payout is made.

In the event a participant’s employment terminates due to death, disability, or retirement during the fiscal year, a prorated incentive award is calculated, taking into account the participant’s individual performance through the date of termination.

Pointe Financial Corporation

Compensation Handbook 2004

Annual Incentive Plan

Page 3 of 3

8. Actions in the Event of a Change of Control

In the event of a Change of Control, as defined in current officer employment agreements, performance is measured through the end of the most recently completed fiscal quarter. Earnings-to-date versus the performance range for the completed quarters of the year determine a prorated incentive pool and preliminary individual awards (based on the number of completed quarters). Preliminary awards are adjusted for individual job performance, without changing the prorated total incentive pool.

9. Plan Administration, Changes and Termination

The Committee is responsible for the administration of the Plan and determining changes to the plan. However, no changes to the Plan will be made retroactively; and are only made proactively for new fiscal years.

The Committee may terminate the Plan at any time for any reason; except that the Plan will remain in effect for the current fiscal year already underway. Any payouts earned for this fiscal year are paid out following standard procedures.<PAGE>

                                                                    EXHIBIT 10.1

                   2005 EXECUTIVE INCENTIVE COMPENSATION PLAN

         The following summary highlights key features of EasyLink Services's
Executive Incentive Compensation Plan (the "Plan").

I.       PURPOSE

         The Plan has been designed to motivate and reward key management
         employees whose efforts impact the performance of EasyLink Services
         Incorporated (the "Company") through the achievement of pre-established
         financial and individual objectives.

         Performance under the Plan is measured on the fiscal year and payments
         under the Plan are made annually.

II.      ELIGIBILITY

         Officers and key management employees may be eligible to participate in
         the plan, upon the recommendation by the Chief Executive Officer of the
         Company and approval by the Compensation Committee of the Board of
         Directors.

III.     AWARD CRITERIA

         The Compensation Committee of the Board of Directors must approve the
         Company performance objectives that are used to determine awards paid
         under this plan. For Fiscal Year (FY) 2005, the financial performance
         measures under the Plan will be:

                 Revenue
                 EBITDA

         In general, 100% of performance under this Plan will be based on
         financial objectives. As more fully described in Article VII, at the
         discretion of the Compensation Committee, up to 25% of any individual's
         award may be based on subjective factors such as individual performance
         or achievement of other goals not stated in the Plan. In addition, the
         Compensation Committee may, at its discretion, increase any
         individual's award by up to 25% of the award based on such factors.
         Accordingly, each Participant is eligible to receive no less than 75%
         of the award that would have been earned solely on the basis of
         financial performance of the Company (in the event that the minimum
         level of the individual's performance or other goals are not achieved),
         and is eligible for up to 125% of such award (in the event that the
         maximum level of the individual's performance or other goals are
         achieved).

IV.      TARGET AWARDS

         A Target Award percentage is established for each position eligible to
         participate in the Plan. Target Awards (TA's) may range from 10% to
         75%, depending on position, of each participant's base pay in effect
         at the conclusion of the performance period (or pro rata at the time of
         becoming a participant).

         Generally, the participants receive the TA when performance under the
         Plan meets, but does not exceed, the pre-established performance
         objectives.

<PAGE>

         Bonus eligible positions and respective target awards as a percentage
         of base salary are as follows:

                  Position                               Target Award
                  --------                               ------------
         Level One Executive                                  75%
         Level Two Executive                                  50%
         Level Three Executive                                30%
         Level Four Executive                                 20%
         Level Five Executive                                 10%

         Level One Executive - President and Chief Executive Officer
         Level Two Executive - Business unit managers with P&L responsibility
         including Executive Vice President and General Manager of TDS and TMS
         business units and Managing Director & VP International
         Level Three Executive - Direct reports to the CEO that have significant
         operating responsibility or key staff positions including EVP and
         General Counsel, SVP Corporate Development, VP & CFO, VP & Corporate
         Controller, VP Operations, VP Quality, VP Marketing and VP Telecom &
         Facilities.
         Level Four Executives - Vice Presidents reporting to Level Three
         Executives; VP Product Marketing
         Level Five Executives - Director level positions reporting to first,
         second, third or fourth level executives that have a material
         organization and potential to significantly contribute to the
         performance of the Company. Not all Director level positions are bonus
         eligible.

V.       PERFORMANCE MEASUREMENT

                   Minimum                  This is the lowest level of
                                            performance at which an award will
                                            be generated for this particular
                                            objective of the plan. The award
                                            paid for performance at the minimum
                                            level is 20% of Target Award. There
                                            will be no payment for performance
                                            below the minimum level.

                   Target                   This is the expected level of
                                            performance based on the current
                                            year's financial plan, and will
                                            generally result in a payment equal
                                            to 100% of Target Award.

                   Maximum                  This is the performance level for
                                            which the maximum award under the
                                            plan will be paid. The maximum award
                                            under the plan is limited to 200% of
                                            the Target Award.

VI.      AWARD CALCULATION

         Attainment of the financial objectives of the Plan is measured based on
         actual results versus Plan targets. If actual results are between
         stated percentages, interpolations of payout percentages are to be
         applied.

         For FY2005, target financial performance consists of:

                  Revenues
                  EBITDA

<PAGE>

       Payouts expressed as percentage of target bonus for each participant
versus actual levels of financial performance versus Plan targets are as
follows:

     [Specific performance criteria redacted consistent with Instruction 2
      to Item 402(k) of Regulation SK and Question 13 of November 23, 2004
         FAQ of Staff of Securities and Exchange Commission and will be
                   furnished to the Commission upon request]

VII.     INDIVIDUAL OBJECTIVES

         The Compensation Committee may approve the use of individual objectives
         as part of the participant's performance criteria under the Plan. The
         use of individual objectives is subject to the following requirements:

         o   Not to exceed 25% of the total award.

         o   Individual objectives must be specifically identified at the
             beginning of the plan year and must be quantifiable in terms
             of both the targeted achievement and the time frame in which
             the objective is to be completed.

         o   Each objective must specify minimum, target and maximum
             performance levels.

         o   If minimum performance level is not achieved, the participant
             will be eligible to receive not less than 75% of the total
             award that would have been earned solely on the basis of the
             Company performance objectives.

         o   If maximum performance level is achieved, the participant will
             be eligible to receive not more than 125% of the total award
             that would have been earned solely on the basis of the Company
             performance objectives

         For FY2005, no pre-determined individual objectives have been
         established.

VIII.    ALTERNATIVE CALCULATIONS

         There may be circumstances under which the financial performance of the
         Company does not generate an award under this program. The nature and
         scope of the Company's operations are such that at times unanticipated
         economic and market conditions may render pre-established financial
         objectives unattainable in any given plan year. If, in the opinion of
         the Committee, such circumstances should arise, then bonus payments not
         to exceed 50% of Target Award may be paid.

IX.      MODIFICATIONS

         If, during a Plan Year, there has occurred or should occur, in the
         opinion of the Company, a significant beneficial or adverse change in
         economic conditions, the indicators of growth or recession in the
         Company's business segments, the nature of the operations of the
         Company, or applicable laws, regulations or accounting practices, or
         other matters which were not anticipated by the Company when it
         approved objectives for the Plan Year and which, in the Company's
         judgment, had, have, or are expected to have a substantial positive or
         negative effect on the performance of the Company as a whole, the
         Compensation Committee) may modify or revise the Performance Objectives
         for the Plan Year in such manner as it may deem appropriate in its sole
         judgment. By way of illustration, and not limitation, such significant
         changes might result from sales of assets, or mergers, acquisitions,
         divestitures, or spin-offs.

<PAGE>

X.       PAYMENT

         Any awards generated under the Plan must be approved by the
         Compensation Committee. It is anticipated that any awards generated in
         FY2005 will be paid during the first quarter of FY2006.

         At the discretion of the Compensation Committee, payment may be made in
         cash or stock options or other form of stock based compensation, such
         as restricted stock, or a combination of cash, stock options and other
         form of stock based compensation. If the bonus is paid in options or
         other form of stock based compensation, 100% vesting will occur upon
         the first anniversary of the date of the grant unless there is a change
         of control as defined in the attached Rider, in which case vesting will
         occur upon the change of control.

         Plan-eligible employees hired during the calendar year will receive a
         prorated bonus based upon the actual date of hire.

         Employees terminating prior to the payout date are not eligible for
         payment of any award under this plan unless termination is due to
         retirement or economic reduction in force. In such cases, any bonus
         payments will be prorated to the date of termination and determined on
         the basis of bonuses actually paid to similarly situated employees,
         provided that the employee was an active employee for at least six (6)
         months of the bonus year.

<PAGE>

         XI.      RIDER

                  As used in this plan, a "Change of Control" shall mean the
                  occurrence of any of the following events:

                                    (i) Any person (as such term is used in
                  Sections 13(d) and 14(d) of the Securities Exchange Act of
                  1934, as amended) becomes the "beneficial owner" (as defined
                  in Rule 13d-3 under said Act), directly or indirectly, of
                  securities of the Company representing fifty percent or more
                  of the total voting power represented by the Company's then
                  outstanding voting securities; or

                                    (ii) A merger or consolidation of the
                  Company with any other corporation or business entity, or a
                  sale, lease or disposition by the Company of all or
                  substantially all of the Company's assets, other than a
                  merger, consolidation, sale, lease or disposition which would
                  result in the voting securities of the Company outstanding
                  immediately prior thereto continuing to represent (either by
                  remaining outstanding or by being converted into voting
                  securities of the surviving or transferee entity or a direct
                  or indirect parent company of the surviving or transferee
                  entity) at least 50% of the total voting power represented by
                  the voting securities of the Company or such surviving or
                  transferee entity or parent company outstanding immediately
                  after such merger, consolidation, sale, lease or disposition.

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