Document:

EX-10.12

 Exhibit 10.12 

NOTICE OF AWARD CERTIFICATE 

PRESIDIO, INC. 
 STOCK
OPTION AWARD 
 (IPO GRANT) 
 This
certifies that the Participant: 
 has been granted the nonqualified stock options described in this Notice of Award Certificate to purchase Shares in
accordance with the vesting schedule indicated below (subject to the Participant’s continued service through each applicable vesting date set forth below, and subject to the further terms of the Award Certificate attached to this Notice of
Award Certificate and the Presidio, Inc. 2017 Long-Term Incentive Plan): 
  

			
	 Total Number of Shares subject to Option:
	  	[    ]
		
	 Exercise Price per Share subject to Option:
	  	$[    ]
		
	 Grant Date of Option:
	  	[    ], 2017

  

			
	Vesting Schedule
	 Percentage of Total Shares
Subject to
Option
	  	 Vesting Date

	One-third	  	[    ], 20XX
	One-third	  	[    ], 20XX
	One-third	  	[    ], 20XX

 Please read and acknowledge the terms and conditions of this Award through the E*TRADE portal. 

 

			
	PRESIDIO, INC.
		
	By:	 	 
		 	Name:
		 	Title:

 PRESIDIO, INC. 

2017 LONG-TERM INCENTIVE PLAN 

NONQUALIFIED STOCK OPTION AWARD CERTIFICATE 

THIS NONQUALIFIED STOCK OPTION AWARD CERTIFICATE (this “Award Certificate”), is entered into effective as of the Grant Date
set forth on the Notice to which this Award Certificate is attached (the “Notice”), by and between Presidio, Inc., a Delaware corporation (the “Company”), and the individual identified on the Notice (the
“Participant”). Capitalized terms used herein without definition shall have the meanings ascribed to such terms in the Presidio, Inc. 2017 Long-Term Incentive Plan (the “Plan”). 

WHEREAS, the Company has adopted the Plan to provide additional incentive to certain employees, officers, consultants, and directors of the
Company and its Subsidiaries; and 
 WHEREAS, the Committee responsible for administration of the Plan has determined to grant an option to
the Participant as provided herein. 
 NOW, THEREFORE, the parties hereto agree as follows: 

1. Grant of Option; Exercise Price of the Option. 

(a) The Company hereby grants to the Participant the right and option (the “Option”) to purchase all or any part of the
number of whole Shares set forth on the Notice, subject to, and in accordance with, the terms and conditions set forth in this Award Certificate and the Plan (including, without limitation, Sections 3(c) and 9 of the Plan). 

(b) The price at which the Participant shall be entitled to purchase Shares upon the exercise of the Option, to the extent vested and
exercisable, shall be the exercise price per Share set forth on the Notice. 
 (c) The Option is not intended to qualify as an
“incentive stock option” within the meaning of Section 422 of the Code. 
 (d) This Award Certificate shall be construed in
accordance and consistent with, and subject to, the Plan (which is incorporated herein by reference). The Participant hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all the terms and provisions thereof. 

2. Vesting of the Option. 

(a) Subject to the terms and conditions of this Award Certificate and the Plan, the Option shall become vested and exercisable in accordance
with the vesting schedule set forth on the Notice. Any fractional shares that would otherwise become vested on a relevant vesting date hereunder shall accrue and vest on the final vesting date set forth on the Notice (subject to the terms and
conditions of this Award Certificate and the Plan). 

  
 -2- 

 3. Exercisability. 

(a) The Option granted hereunder shall expire 10 years following the Grant Date (the “Option Term”) unless earlier
terminated in accordance with the terms of this Award Certificate. 
 (b) Except as otherwise provided in Section 4, any unvested
portion of the Option shall be cancelled for no consideration at the time of the Participant’s Termination of Employment for any reason. 

(c) Upon the Participant’s Termination of Employment by the Company for Cause, the Option shall immediately terminate, whether or not the
Option is then vested and exercisable. 
 (d) To the extent that any portion of the Option was vested and exercisable at the time of the
Participant’s Termination of Employment (including any portion of the Option that vests as a result of such Termination of Employment in accordance with the terms of this Award Certificate), such vested portion of the Option shall remain
exercisable for the following post-termination periods: 
 (i) Upon a Termination of Employment due to the Participant’s
death or Disability, the earlier of (A) one year following such Termination of Employment and (B) the expiration of the Option Term. 

(ii) Upon the Participant’s Termination of Employment for any reason other than by the Company with Cause or due to the
Participant’s death or Disability, the earlier of (A) 90 days following such Termination of Employment and (B) the expiration of the Option Term. 

4. Change in Control. 

(a) If, in connection with a Change in Control, a Replacement Award (as defined below) is not provided to the Participant, then the Option
shall vest in full immediately as of immediately prior to such Change in Control. 
 (b) If, in connection with a Change in Control, a
Replacement Award is provided to the Participant but the Participant experiences a Qualifying Termination (defined below) on or following the date of the Change in Control and prior to the second anniversary of the date of the Change in Control,
then such Replacement Award shall vest in full (and if such Replacement Award is an Option, shall remain exercisable in accordance with Section 3). 

(c) For purposes of this Award Certificate, the term “Replacement Award” means an award issued to a Participant that
(i) is of the same type as the Award the Participant held immediately prior to the Change in Control that is being replaced; (ii) relates to securities of the Company or the entity surviving, directly or indirectly, the Company following a
Change in Control that are publicly traded and listed on a stock exchange in the United States of America; (iii) is equal in value to the value of the Option that is being replaced as of the date of the Change in Control, as determined in the
sole discretion of the Committee; and (iv) contains terms and conditions that are not less favorable to the Participant than the terms and conditions of the Option that is being replaced (including vesting provisions and the provisions that
would apply 

  
 -3- 

 
in the event of a subsequent change in control) as of the date of the Change in Control. Without limiting the generality of the foregoing, a Replacement Award may take the form of a continuation
of the Option that is being replaced if the requirements of the previous sentence are satisfied. The determination of whether an award satisfies the requirements for being a Replacement Award shall be made by the Committee, as constituted
immediately before the Change in Control, in its sole discretion. 
 (d) For purposes of this Award Certificate, the term
“Qualifying Termination” means the Participant’s Termination of Employment (i) by the Company (or its applicable Subsidiary) without Cause or (ii) due to the Participant’s death or Disability. 

5. Manner of Exercise and Payment. 

(a) Subject to the terms and conditions of this Award Certificate and the Plan, the Option may be exercised through the procedures set forth
on the E*TRADE portal or in any other manner determined by the Committee in its sole discretion, all of which shall be in accordance with the procedures, set forth in Section 5(i) of the Plan. 

(b) The Participant shall not be deemed to be the holder of, or to have any of the rights of a holder with respect to any Shares subject to
the Option until the Option shall have been exercised pursuant to the terms of this Award Certificate and the Participant shall have paid the full exercise price for the number of Shares in respect of which the Option was exercised and made
arrangements acceptable to the Company for the payment of all applicable withholding taxes. 

  
 -4- 

 6. Non-Transferability of Option. The Option is non-transferable except to the extent
provided in Section 5(k) of the Plan. 
 7. No Right to Continued Service. Nothing in this Award Certificate or the Plan shall
be interpreted or construed to confer upon the Participant any right with respect to continuance of service by the Company, nor shall this Award Certificate or the Plan interfere in any way with the right of the Company to terminate the
Participant’s services at any time. 
 8. Withholding of Taxes. If the Participant is entitled to receive Shares upon exercise
of the Option, the Participant shall make arrangements acceptable to the Company for the payment of the withholding taxes prior to the issuance of such Shares, in accordance with Sections 5 and 13(d) of the Plan. 

9. Modification of Agreement; Severability. This Award Certificate may be modified, amended, suspended, or terminated, and any terms or
conditions may be waived, but only by a written instrument executed by the parties hereto. Notwithstanding the vesting provisions contained in the Plan on the Grant Date, the Participant hereby acknowledges that the vesting of the Option shall be in
accordance with the provisions of Sections 2 and 4 herein. Should any provision of this Award Certificate be held by a court of competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of this Award
Certificate shall not be affected by such holding and shall continue in full force in accordance with their terms. 
 10.
Miscellaneous. 
 (a) This Award Certificate shall inure to the benefit of and shall be binding upon the parties hereto and their
respective heirs, legal representatives, successors and assigns. Neither this Award Certificate nor any of the rights, interests, or obligations hereunder shall be assigned by the Participant without the prior written consent of the Company. 

(b) The provisions of Section 13 of the Plan, to the extent applicable, are hereby incorporated by reference and made a part hereto. 

  
 -5-Exhibit
                                         10.24

                                                                           

                                                                          PeoplesBank,
                                         A Codorus Valley Company

                                                                          Executive
                                         Incentive Plan

                                                                          January,
                                         2017

                                                                           

                                                                          

	 	Approved
                                         by

                                                                                Board
                                         of Directors:

                                                                                 

                                                                                Approved
                                         by

                                                                                Compensation
                                         Committee:

                                                                                 

	CONFIDENTIAL
                                         TREATMENT REQUESTED

                                                                                 

  

    	 	 	 

     

    

 

CONFIDENTIAL
TREATMENT REQUESTED

 

	PeoplesBank,
    A Codorus Valley Company
	Executive
    Incentive Plan

  

		I.	Introduction

 

The
success of both PeoplesBank and Codorus Valley Bancorp, Inc. (“the Company”) is dependent upon the Company’s
ability to meet and exceed financial and strategic objectives, increase the value of the franchise and operate in the best long-term
interests of the shareholders. This success is dependent upon the contributions of each individual executive which collectively
impact the Company’s performance and results.

 

PeoplesBank
intends to provide executives with a structured incentive compensation opportunity in order to recognize the contribution that
each makes to the overall performance of the organization. The purpose of this incentive plan is to motivate, reward and reinforce
performance and achievement of corporate goals and individual performance/contributions in support of the Company’s strategic
objective for growth and profitability.

 

While
risk is an inherent aspect of business, this compensation plan is designed to reward executives for certain levels of performance
without encouraging undue risk-taking which could materially threaten the safety and soundness of the Company or business unit.

 

This
Executive Incentive Plan (“the Plan”) has been developed as a meaningful compensation tool to encourage and reward
participants for the part that they play in the overall success of the Company. The Plan is designed to:

 

		●	provide
                                         a form of results-oriented variable compensation which is directly linked to overall
                                         Company performance, and, 

		●	provide
                                         for recognition of individual contribution to the Company’s performance 

 

		II.	Plan
                                         Year

 

The
plan year for this program will be the calendar year, January 1 – December 31. The Plan will pay out annually based on achievement
of established goals and performance measures. The performance measures for the Plan will be determined, calculated and approved
annually.

 

	CONFIDENTIAL
    TREATMENT REQUESTED

 

	January
    2017	Page
    2

 

    	 	 	 

     

    

 

CONFIDENTIAL
TREATMENT REQUESTED

 

	PeoplesBank,
    A Codorus Valley Company
	Executive
    Incentive Plan

		III.	Eligibility
                                         for Participation

 

All
PeoplesBank executives who meet the criteria below will be eligible to participate in the Executive Incentive Plan. A listing
of participant categories by grouping appears in Exhibit A.

 

Eligibility
for incentive payout will be determined by the participant’s most recent performance rating. To be eligible, individuals
must have a minimally satisfactory rating and not be on probation and/or written warning during the plan year or at the time of
award payment. Newly hired executives will be eligible for participation in the Plan providing they started employment prior to
October 1 of the plan year. Payout for current year hires will be pro-rated based on their actual pay during the plan year. If
the individual started employment after October 1, the executive will be eligible for the next plan year.

 

A
participant’s eligibility ceases at termination of employment (except in the case of retirement, death or disability) and
the participant will not receive any awards under the Plan beyond those already received. To be eligible for an award, an employee
must be employed as of the payout date.

 

		IV.	Incentive
                                         Opportunities

 

Each
participant will have a target incentive opportunity based on his/her role and competitive market practice. Incentive opportunities
will be defined as a percentage of base pay. Base pay is actual base salary earned as of December 31 of the plan year. See Exhibit
A for targets by participant categories.

 

		V.	Payout
                                         Range

 

Actual
awards will pay out at a reduced level (i.e.50% of target) for threshold performance, at 100% for target performance and at higher
level (i.e.150% of target) for stretch/maximum or above performance. Performance below threshold will be zero.

 

	CONFIDENTIAL
    TREATMENT REQUESTED

 

	January
    2017	Page
    3

 

    	 	 	 

     

    

 

CONFIDENTIAL
TREATMENT REQUESTED

 

	PeoplesBank,
    A Codorus Valley Company
	Executive
    Incentive Plan

		VI.	Performance
                                         Goals

 

Each
participant will have defined performance goals. The goals and weights are determined at the beginning of each plan year and may
change from year to year. The goals are established by the Compensation Committee and Executive Management in conjunction with
the annual budget process. Company goals are selected to be aligned with business/strategic plan and reflect annual financial
measures such as net income, return on assets, return on equity, earnings per share, balance sheet growth or similar indicators.
Personal goals generally reflect each participant’s unique role and responsibilities and may include Action Plan objectives
as deemed appropriate. Threshold, target, and maximum goals will be defined for quantifiable goals.

 

The
performance goals for the plan year are found in Exhibit B. Individual participant performance measures will be documented in
the format that is specific, measurable, time bound, and directly tied to the budget and or action plan item for the calendar
year.

 

		VII.	Award
                                         Calculation and Distribution

 

Payout
amounts are calculated according to the level of overall performance achievement as compared to goals as explained in Exhibit
B. Payout for performance between the threshold and target and target and maximum is interpolated.

 

Incentive
payouts will be approved by the Compensation Committee. Final incentive payouts can be adjusted downward based on an assessment
of risk by the Compensation Committee.

 

Actual
individual payouts are then distributed to eligible participants based on payout percentage of base pay (defined as actual base
salary earned as of December 31 of the plan year) for the year.

 

Payment
will be made following the release of the prior year financials by the external auditors. This will occur no later than March
15 of the following year. The Company will deduct from all payments under this plan any federal, state or local taxes required
by law to be withheld from such payments. Any participant terminating employment (except retirement, death, or disability) prior
to actual payment of award will forfeit that award.

 

	CONFIDENTIAL
    TREATMENT REQUESTED

 

	January
    2017	Page
    4

 

    	 	 	 

     

    

 

CONFIDENTIAL
TREATMENT REQUESTED

 

	PeoplesBank,
    A Codorus Valley Company
	Executive
    Incentive Plan

		VIII.	Administration

 

Effective
Date

This
Plan is effective January 1, 2017 for the performance period of January 1, 2017 to December 31, 2017. The Plan will be reviewed
annually by the Compensation Committee to ensure proper alignment with the Company’s objectives. The Company’s Compensation
Committee retains the right as described below to amend, modify or discontinue the Plan at any time during the specified period.
The Plan will remain in effect until earned incentive compensation is paid to participants.

 

Plan
Authorization and Oversight

This
Plan is authorized by the Board of Directors. The Compensation Committee has the sole authority to interpret the Plan and to make
or nullify any rules and procedures, as necessary, for proper administration. Any determination by the Committee and/or Board
of Directors will be final and binding. The Compensation Committee may, in its sole discretion, terminate or modify any aspect
of the Plan. However, no Plan amendment or termination will adversely affect an outstanding award.

 

The
Compensation Committee shall have full power and authority to construe, interpret, manage and control this plan. The plan administrator
shall be designated at the discretion of the Compensation Committee. The Compensation Committee may also terminate, modify, or
amend this plan. Amendments can include adjustments to award calculations for any significant extraordinary financial items occurring
in any given time period.

 

Any
decisions made or action taken by the Committee arising out of, or in connection with, the administration, interpretation and
effect of the Plan shall be at their absolute discretion and will be conclusive and binding on all parties. The Company reserves
the right to amend, suspend, reinstate or terminate all or any part of the Plan at any time.

 

The
Company will give prompt written notice to each participant of any amendment, suspension, termination or any material modification
of the Plan. The Compensation Committee also reserves the right to withhold or amend award payments based on performance or circumstances
deemed highly unusual.

 

	CONFIDENTIAL
    TREATMENT REQUESTED

 

	January
    2017	Page
    5

 

    	 	 	 

     

    

 

CONFIDENTIAL
TREATMENT REQUESTED

 

	PeoplesBank,
    A Codorus Valley Company
	Executive
    Incentive Plan

 

Risk
Assessment

At
least annually, the Director of Human Resources and Chief Risk Officer (who has responsibility for risk assessment) will review
this plan and provide a report including a detailed assessment regarding any risk issues inherent in the Plan. This risk report
and the plan document in full will be reviewed by the Compensation Committee of the Board of Directors to ensure that the plan
design is consistent with the compensation philosophy of the Company and that the Plan does not motivate undue risk taking. The
annual review will also include the market competitiveness of the Plan, the plan’s alignment with the Company’s strategic
plan, an assessment of how the Plan meets the objectives in the Introduction of this document, plus the Plan’s impact on
the overall safety and soundness of the Company. The Committee will then provide a report and recommendations to the full Board
of Directors who are responsible to approve the Plan.

 

Leave
of Absence

Employees
on a leave of absence (including FMLA, Long Term Disability, Short Term Disability, etc.) will be eligible; however, their distribution
will be pro-rated based upon the number of full months of work completed during the plan year under consideration.

 

Termination
of Employment

If
a participant is terminated by the Company or resigns, no incentive award will be distributed except death, disability or retirement.

 

If
a participant ceases to be employed by the Company due to death, disability or retirement, his/her incentive award distribution
for the Plan year will be pro-rated based on the number of full months of work completed during the plan year under consideration.

 

Miscellaneous

The
Plan does not constitute a contract of employment, and participation in the Plan does not give any employee the right to be retained
in the service of the Company or any right or claim to an award under the Plan unless specifically accrued under the terms of
this plan. Designation as a plan participant conveys the opportunity, but not the right, to any awards conferred under the Plan.

 
	CONFIDENTIAL
    TREATMENT REQUESTED

 

	January
    2017	Page
    6

 

    	 	 	 

     

    

 

CONFIDENTIAL
TREATMENT REQUESTED

 

	PeoplesBank,
    A Codorus Valley Company
	Executive
    Incentive Plan

Any
right of a participant or his or her beneficiary to the payment of an award under this plan may not be assigned, transferred,
pledged or encumbered.

 

		IX.	Governing
                                         Law

 

Except
as preempted under federal law, the provisions of the Plan shall be construed, administered and enforced in accordance with the
domestic internal law of the Commonwealth of Pennsylvania.

 

		X.	Plan
                                         Approval

 

This
plan has been approved by the Board of Directors of Codorus Valley Bancorp, Inc. on

	 	 	 
	 	 	 
	By		 
	 	Board of Directors	 
	 	Codorus Valley
    Bancorp, Inc.	 
	 	 	 
	 	Compensation
    Committee	 
	 	Codorus Valley
    Bancorp, Inc.	 

 

	CONFIDENTIAL
    TREATMENT REQUESTED

 

	January
    2017	Page
    7

 

    	 	 	 

     

    

 

CONFIDENTIAL
TREATMENT REQUESTED

 

	PeoplesBank,
    A Codorus Valley Company
	Executive
    Incentive Plan

Exhibit
A

 

Executive
Incentive Plan

Participants
and Incentive Opportunities

 

	Category	Participants	Incentive
    Opportunities
	Threshold

        (50%
        of Target)
	Target

        (100%
        of Target)
	Maximum

        (150%
        of Target)

	1	President
    & CEO	12.5%	25%	37.5%
	 
	2	Executive
    Chair	10%	20%	30%
	Chief
    Information Officer
	Chief
    Counsel
	Chief
    Financial Officer
	Chief
    Lending Officer
	Chief
    Administrative Officer
	SVP
    – Retail Sales & Service
	SVP
    – Wealth Management
	Chief
    Risk Officer
	3	Chief
    Credit Officer	7.5%	15%	22.5%
	 	SVP,
    General Services
	 	VP,
    Marketing

  

	CONFIDENTIAL
    TREATMENT REQUESTED

 

	January
    2017	Page
    8

 

    	 	 	 

     

    

 

CONFIDENTIAL
TREATMENT REQUESTED

 

	PeoplesBank,
    A Codorus Valley Company
	Executive
    Incentive Plan

Exhibit
B

Performance
Goals - Plan Year 2017

  

	Category	Performance
    Measure	Weight	Performance
    Goals
	 	 	 	Threshold	Target	Stretch
	Corporate	NI	*	$[redacted]**	$[redacted]**	$[redacted]**
	 	ROE	*	[redacted]**%	[redacted]**%	[redacted]**%
	 	Efficiency
    Ratio	*	[redacted]**%	[redacted]**%	[redacted]**%
	Individual	Individual
    Performance	*	TBD
	Total	 	100%	 	 	 

*Assigned
per below

**Portions
of this exhibit have been redacted and are subject to a confidential treatment request filed with the Secretary of the Securities
and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934. The redacted material has been filed
separately under the request for confidential treatment.

  

	2017
    Performance Measure Weightings	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	2016	 	2017
	Position	 		Performance
    Measure	 	 	Weight	 	Weight
	 	 	 	 	 	 	 
	Executive
    Chair	 	Net
    Income	 	50%	 	50%
	(Miller)	 	ROE	 	25%	 	15%
	 	 	Efficiency
    Ratio	 	10%	 	20%
	 	 	Personal	 	15%	 	15%
	 	 	 	 	100%	 	100%
	 	 	 	 	 	 	 
	President
    & CEO	 	Net
    Income	 	50%	 	50%
	(Utz)	 	ROE	 	25%	 	15%
	 	 	Efficiency
    Ratio	 	10%	 	20%
	 	 	Personal	 	15%	 	15%
	 	 	 	 	100%	 	100%
	 	 	 	 	 	 	 
	Chief
    Financial Officer	 	Net
    Income	 	50%	 	50%
	(Field)	 	ROE	 	25%	 	15%
	 	 	Efficiency
    Ratio	 	10%	 	20%
	 	 	Personal	 	15%	 	15%
	 	 	 	 	100%	 	100%

 

	CONFIDENTIAL
    TREATMENT REQUESTED

 

	January
    2017	Page
    9

 

    	 	 	 

     

    

 

CONFIDENTIAL
TREATMENT REQUESTED

 

	PeoplesBank,
    A Codorus Valley Company
	Executive
    Incentive Plan

	Chief
    Administrative Officer	 	Net
    Income	 	50%	 	50%
	(Clemens)	 	ROE	 	25%	 	15%
	 	 	Efficiency
    Ratio	 	10%	 	20%
	 	 	Personal	 	15%	 	15%
	 	 	 	 	100%	 	100%
	 	 	 	 	 	 	 
	Chief
    Risk Officer	 	Net
    Income	 	50%	 	50%
	(Baker)	 	ROE	 	25%	 	15%
	 	 	Efficiency
    Ratio	 	10%	 	20%
	 	 	Personal	 	15%	 	15%
	 	 	 	 	100%	 	100%
	 	 	 	 	 	 	 
	Chief
    Counsel	 	Net
    Income	 	50%	 	50%
	(Riggs)	 	ROE	 	25%	 	15%
	 	 	Efficiency
    Ratio	 	10%	 	20%
	 	 	Personal	 	15%	 	15%
	 	 	 	 	100%	 	100%
	 	 	 	 	 	 	 
	Chief
    Information Officer	 	Net
    Income	 	50%	 	50%
	(Campagna)	 	ROE	 	25%	 	15%
	 	 	Efficiency
    Ratio	 	10%	 	20%
	 	 	Personal	 	15%	 	15%
	 	 	 	 	100%	 	100%
	 	 	 	 	 	 	 
	Chief
    Credit Officer	 	Net
    Income	 	50%	 	50%
	(S.
    Miller)	 	ROE	 	25%	 	15%
	 	 	Efficiency
    Ratio	 	10%	 	20%
	 	 	Personal	 	15%	 	15%
	 	 	 	 	100%	 	100%
	 	 	 	 	 	 	 
	VP
    - Marketing	 	Net
    Income	 	50%	 	50%
	(Eifert)	 	ROE	 	25%	 	15%
	 	 	Efficiency
    Ratio	 	10%	 	20%
	 	 	Personal	 	15%	 	15%
	 	 	 	 	100%	 	100%

 

	CONFIDENTIAL
    TREATMENT REQUESTED

 

	January
    2017	Page
    10

 

    	 	 	 

     

    

 

CONFIDENTIAL
TREATMENT REQUESTED

 

	PeoplesBank,
    A Codorus Valley Company
	Executive
    Incentive Plan

	SVP
    - General Services	 	Net
    Income	 	50%	 	50%
	(Tyson)	 	ROE	 	25%	 	15%
	 	 	Efficiency
    Ratio	 	10%	 	20%
	 	 	Personal	 	15%	 	15%
	 	 	 	 	100%	 	100%
	 	 	 	 	 	 	 
	Chief
    Lending Officer	 	Net
    Income	 	50%	 	50%
	(Doll)	 	ROE	 	25%	 	15%
	 	 	Efficiency
    Ratio	 	10%	 	10%
	 	 	Personal	 	15%	 	25%
	 	 	 	 	100%	 	100%
	 	 	 	 	 	 	 
	SVP
    Retail Sales & Service	 	Net
    Income	 	50%	 	50%
	(Crenshaw)	 	ROE	 	25%	 	15%
	 	 	Efficiency
    Ratio	 	10%	 	10%
	 	 	Personal	 	15%	 	25%
	 	 	 	 	100%	 	100%
	 	 	 	 	 	 	 
	SVP
    - Wealth Management	 	Net
    Income	 	50%	 	50%
	(Altland)	 	ROE	 	25%	 	15%
	 	 	Efficiency
    Ratio	 	10%	 	10%
	 	 	Personal	 	15%	 	25%
	 	 	 	 	100%	 	100%

  

Parameters
for 2017

		1.	Base
                                         pay is defined as actual base salary earned as of December 31 of plan year.

		2.	Generally,
                                         Company performance factor(s) must meet or exceed threshold to initiate an award in the
                                         Plan. Each performance factor is assessed independently from the other performance factors.

		3.	Awards
                                         for performance above threshold but between defined points (threshold, target, maximum)
                                         will be interpolated.

		4.	Performance
                                         above maximum level will be paid at maximum award level.

		5.	The
                                         Compensation Committee has the discretion to adjust incentive payments down by as much
                                         as 100% if it is determined that excessive risk has been taken. This can be done on an
                                         individual or overall basis, as appropriate.

		6.	Net
                                         income is defined as net income after all expenses including the dividend paid on the
                                         preferred shares and the expense of the awards under this plan.

		7.	Return
                                         on Equity is the amount of Net Income available to common shareholders as a percentage
                                         of average common shareholders’ equity.

		8.	Efficiency
                                         Ratio is the amount of the Bank’s total noninterest expenses (“overhead”)
                                         as a percentage of total revenues. The determination of total revenues excludes the impact
                                         of ALLL provision and gain on sales of investment securities

 

	CONFIDENTIAL
    TREATMENT REQUESTED

 

	January
    2017	Page
    11

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