Document:

ctbi8kexeccompex10-1.htm

    EXHIBIT
      10.1

     

    

     

    COMMUNITY
      TRUST BANCORP, INC.

     

    RESTRICTED
      STOCK AGREEMENT

     

    This
      Restricted Stock Agreement (“Agreement”), dated as of the _____ day of
      __________, 200__ by and between Community Trust Bancorp, Inc.,
      a Kentucky corporation (“Company”), and ______________________ (“Employee”), is
      made pursuant to the provisions of the Company’s 2006 Stock Ownership Incentive
      Plan (“Plan”).  All terms used in this Agreement that are defined in
      the Plan shall have the same meanings given them in the Plan.

     

    Recitals:

     

    A. The
      Company has adopted the Plan to enhance the ability of the Company to attract
      and retain the services of qualified employees and to provide incentives for
      such persons to exert maximum efforts for the success of the
      Company.

     

    B.  The
      Company and Employee desire to enter into this Agreement to set forth their
      understanding with respect to the issuance of shares of the Company’s Common
      Stock to Employee pursuant to the Plan.

     

    Agreement:

     

    Now,
      Therefore, the parties hereto agree as follows:

     

    1.  Award
      of Shares.  Subject to the terms and conditions of the Plan
      and subject further to the terms and conditions set forth in this Agreement,
      on
      this date the Company awards to Employee _____________ (______________) shares
      of Common Stock of the Company (“Restricted Stock”).

     

    2.  Terms
      and Conditions.  The award of Restricted Stock hereunder is
      subject to the following terms and conditions:

     

    2.1  Non-Transferability.  Shares
      of Restricted Stock (or any right or interest in Restricted Stock) may not
      be
      sold, transferred, pledged, assigned or otherwise alienated or hypothecated
      until the end of the Restriction Period (as defined in Section 2.2 below) applicable to Restricted Stock.
      Any sale, transfer, pledge or assignment, or any purported sale, transfer,
      pledge or assignment, of any Restricted Stock, or any right or interest therein,
      in violation of this Section 2.1 shall
      be null and void.

     

    2.2  Period
      of Restriction.  Subject to earlier lapse of
      restrictions or forfeiture as hereinafter provided, the period of restriction
      (“Restriction Period”) applicable to Restricted Stock shall lapse on the fifth
      anniversary date of the date of this Agreement; provided, however, that Employee
      continues to serve as an Employee of the Company on such date.

     

    2.3  Earlier
      Lapse of Restriction Period.  Notwithstanding the
      provisions of Section 2.2, the
      Restriction Period shall lapse with respect to all shares of Restricted Stock
      immediately upon a Change in Control and immediately upon the death of Employee,
      provided that Employee has continued to serve as an Employee of the Company
      on
      such date.  In addition, in the event of the Disability of Employee
      while Employee continues to serve as an Employee, the Restriction Period shall
      lapse on the date of Disability with respect to the following percentages of
      the
      Restricted Stock: (i) if the date of Disability is on or after the first
      anniversary date of the date of this Agreement, the Restriction Period shall
      lapse with respect to 20% of the Restricted Stock and the remaining 80% of
      the
      Restricted Stock shall be forfeited by Employee; (ii) if the date of Disability
      is on or after the second anniversary date of the date of this Agreement, the
      Restriction Period shall lapse with respect to 40% of the Restricted Stock
      and
      the remaining 60% of the Restricted Stock shall be forfeited by Employee; (iii)
      if the date of Disability is on or after the third anniversary date of the
      date
      of this Agreement, the Restriction Period shall lapse with respect to 60% of
      the
      Restricted Stock and the remaining 40% of the Restricted Stock shall be
      forfeited by Employee; (iv) if the date of Disability is on or after the fourth
      anniversary date, but prior to the fifth anniversary date, of the date of this
      Agreement, the Restriction Period shall lapse with respect to 80% of the
      Restricted Stock and the remaining 20% of the Restricted Stock shall be
      forfeited by Employee.  The Committee shall have the discretion to
      review and revise the restrictions applicable to an Employee’s Restricted Stock
      in the event of the Retirement of Employee, notwithstanding the provisions
      of
      Section 2.2.

     

          
      2.4  Forfeiture.  Subject
      to the provisions of Section 2.3, the
      Restricted Stock shall be forfeited by Employee in the event that Employee’s
      service as an employee of the Company terminates prior to the expiration of
      the
      Restriction Period applicable to such Restricted Stock.  All shares of
      Restricted Stock forfeited by Employee shall be canceled (without any payment
      to
      Employee) and Employee shall have no further rights with respect
      thereto.

     

    2.5  Certificates.  Restricted
      Stock shall be registered on the Company’s stock transfer books in the name of
      Employee in book entry, electronic form or in certificated form.  The
      Employee shall deliver a stock power endorsed in blank to the Company with
      respect to all shares of Restricted Stock. If issued in certificated form,
      physical possession of the stock certificate (together with a stock power
      endorsed in blank by Employee) shall be retained by the Company until such
      time
      as the Restriction Period lapses.  If issued in uncertificated form,
      the Company shall retain the stock power endorsed in blank by Employee and
      the
      restrictions on the Restricted Stock shall be noted in the Company’s stock
      transfer books.  Upon any forfeiture of Restricted Stock, the Company
      shall have the right to cancel the Restricted Stock in accordance with this
      Agreement without any further action by Employee.  Restricted Stock
      issued in book entry or electronic form shall be subject to the following
      notation, and any certificates representing shares of Restricted Stock shall
      bear the following legend:

     

    “The
      sale
      or other transfer of the shares represented by this Certificate, whether
      voluntary, involuntary or by operation of law, is subject to certain
      restrictions on transfer as set forth in the Community Trust Bancorp, Inc.
      2006
      Stock Ownership Incentive Plan, and in the related Restricted Stock
      Agreement.  A copy of the Plan and such Restricted Stock Agreement may
      be obtained from the Secretary of Community Trust Bancorp, Inc.”

     

    2.6  Voting
      Rights; Dividends and Distributions.  During the
      Restriction Period, Employee may exercise full voting rights, and shall be
      entitled to receive all dividends and other distributions paid with respect
      to
      the Restricted Stock.  If any dividends or distributions are paid in
      the form of Common Stock, such Common Stock shall be subject to the same
      restrictions as the shares of Restricted Stock with respect to which they were
      paid.  Employee agrees to deliver to the Company any certificates
      representing stock or other securities which Employee may receive during the
      Restriction Period with respect to Restricted Stock (together with a stock
      power
      endorsed in blank by Employee).

     

    2.7  Adjustments
      in Authorized Shares and Outstanding Common Stock.  In
      the event of any change in the corporate structure of the Company affecting
      the
      Common Stock, including a merger, reorganization, consolidation,
      recapitalization, reclassification, split-up, spin-off, separation, liquidation,
      stock dividend, stock split, reverse stock split, extraordinary dividend, share
      repurchase, share combination, exchange of securities, dividend in kind or
      any
      similar corporate event or transaction, the Committee shall substitute or adjust
      the number and class of shares subject to this Agreement in such a manner as
      the
      Committee, in its discretion, determines to be appropriate and equitable to
      prevent dilution or enlargement of the rights of Employee and to preserve,
      without exceeding, the value of the grant hereunder; provided, however, that
      the
      number of shares subject to this Agreement shall be a whole number.

     

    3.  Tax
      Provisions.  If Employee timely elects, under section 83(b)
      of the Internal Revenue Code of l986, as amended, to include the fair market
      value of Restricted Stock on the date hereof in Employee’s gross income for the
      current taxable year, Employee agrees to give prompt notice to the
      Company.  Employee shall remit to the Company an amount sufficient to
      satisfy Federal, state and local taxes (including the Employee’s FICA
      obligation) required to be withheld with respect to the Restricted
      Stock.  The Company shall have the right to retain and withhold the
      amount of taxes (if any) required by any government to be withheld or otherwise
      deducted and paid with respect to Restricted Stock.  If the Company
      has a withholding obligation with respect to the Restricted Stock, Employee
      may
      satisfy the withholding requirement, in whole or in part, by having the Company
      withhold shares of Restricted Stock having a Fair Market Value on the date
      the
      withholding tax is to be determined equal to the amount required to be withheld
      under applicable law.  

     

    4.  Entire
      Agreement; Incorporation of
      Plan.  This Agreement constitutes
      the entire agreement between the parties hereto and contains all of the
      agreements between such parties with respect to the subject matter
      hereof.   Notwithstanding the foregoing, this Agreement is and
      shall be, in all respects, subject to the terms and conditions of the Plan,
      which are incorporated herein by reference.  If any provision of this
      Agreement conflicts with a provision of the Plan, the Plan provision shall
      control. Employee acknowledges the receipt of a copy of the Plan prior to the
      execution of this Agreement.

     

    5.  Captions.  The
      captions and section headings used herein are for convenience only, shall not
      be
      deemed to be part of this Agreement and shall not in any way restrict or modify
      the context or substance of any section or paragraph of this
      Agreement.

     

    6.  Governing
      Law.  This Agreement shall be
      governed by, and construed in accordance with the laws of the Commonwealth
      of
      Kentucky without regard to its conflicts of laws rules.

     

    7.  Binding
      Effect.  This Agreement shall be binding upon, and inure to
      the benefit of, the parties hereto and their respective executors,
      administrators, heirs, successors and any permitted assigns.

     

    8.  Amendment;
      Modification or Termination of the Plan.  The amendment,
      modification or termination of the Plan shall not adversely affect Employee’s
      Restricted Stock without the written consent of Employee.

     

    In
      Witness Whereof, the parties hereto have executed this Agreement as of
      the day and year first above written.

     

    
      	
              Community
                Trust Bancorp, Inc.

               

              By:       
                _____________________________                                                          

               

              Title:     _____________________________                                                           

              (“Company”)

               

              _______________________________

              (Signature
                of Employee)

               

              _______________________________

              (Printed
                Name of Employee)ctbi8kexeccompex10-2.htm

    EXHIBIT
      10.2

    

    

    

    

    

    

    

    

    
      COMMUNITY
        TRUST BANCORP, INC.

      SENIOR
        MANAGEMENT INCENTIVE

      COMPENSATION
        PLAN

    

    
      EFFECTIVE
        JANUARY 1, 2008

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      SENIOR
        MANAGEMENT INCENTIVE COMPENSATION PLAN

       

      TABLE
        OF CONTENTS

    

                                                                                                                                

    
      

      
        	 	 ARTICLE 

      

      
        	 	 

        	
                 

              	
                II.     Definitions

              

      

      
        	 	 

        	
                 

              	
                III.    Administration
                  of the Plan

              

      

      
        	 	 

        	
                 

              	
                IV.    Participant
                  Eligibility

              

      

      
        	 	 

        	
                 

              	
                V.     Payment
                  to Participants

              

        	 	 

      

      
        	
                 

              	
                VI.    Determination
                  of Annual Award Fund

              

      

      
        	 	 

        	
                 

              	
                VII.   Calculation
                  of Award

              

      

      
        	 	 

        	
                 

              	
                    Table
                  I
                  - 2008 Annual Cash Incentive
                  Compensation

              

      

      
        	
                 

              	
                    Award
                  -
                  Group I

              

      

       

      
        	
                 

              	
                    Table
                  II - 2008 Annual Cash Incentive
                  Compensation

              

      

      
        	
                 

              	
                   Award
                  - Group
                  II

              

      

      

      
        	
                 

              	
                    Table
                  III - 2008 Annual Cash Incentive
                  Compensation

              

      

      
        	
                 

              	
                    Award
                  -
                  Group III

              

      

      

      
        	
                 

              	
                    Table
                  VI - 2008 Senior Management
                  Incentive

              

      

      
        	
                 

              	
                    Compensation
                  Plan - Stock Option Awards

              

      

      
        	 	 

        	
                 

              	
                VIII.  Miscellaneous
                  Provisions

              

      

      
        	 	 

        	
                 

              	
                Attachment
                  A - Notice of
                  Participation

              

      

      
        	
                 

              	
                Attachment
                  B - Designation of
                  Beneficiary

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      ARTICLE
        I

      
         

        OBJECTIVES

         

      

    

     

    Section
      1.01

    This
      plan
      is designed to reward senior management for meeting or exceeding industry
      standards for profitability and adopted to achieve the following
      objectives:

    

    
      	
               

            	
              (a)

            	
              Increase
                the profitability and growth of Community Trust Bancorp, Inc. in
                a manner
                which is consistent with other goals of the Company, its stockholders
                and
                its employees,

            

    

    

    
      	
               

            	
              (b)

            	
              Provide
                executive compensation which is competitive with other financial
                institutions,

            

    

    

    
      	
               

            	
              (c)

            	
              Attract
                and retain personnel of outstanding ability and encourage excellence
                in
                the performance of individual
                responsibilities,

            

    

    

    
      	
               

            	
              (d)

            	
              Motivate
                and reward those members of management who contribute to the success
                of
                the Company,

            

    

    

    
      	
               

            	
              (e)

            	
              Distinguish
                among the performance contributions of some individuals by providing
                financial recognition for individual performance, as well as group
                performance, and

            

    

    

    
      	
               

            	
              (f)

            	
              Allow
                the flexibility which permits revision and strengthening from time
                to time
                to reflect changing organizational goals and
                objectives.

            

    

    
 

    ARTICLE
      II

     

    DEFINITIONS

     

    Section
      2.01

    As
      used
      herein, the following words and phrases shall have the meanings below unless
      the
      context clearly indicates otherwise:

    

    
      	
               

            	
              (a)

            	
              “Annual
                Incentive Plan” or “Annual Plan” shall mean the Senior
                Management Incentive Compensation Plan set forth in this document
                and all
                amendments thereto.

            

    

    

    
      	
               

            	
              (b)

            	
              “Award
                Period” means one Fiscal Year.

            

    

    

    
      	
               

            	
              (c)

            	
              “Board”
                means the Board of Directors of Community Trust Bancorp,
                Inc.

            

    

    

    
      	
               

            	
              (d)

            	
              “Company”
                means Community Trust Bancorp, Inc., and its
                subsidiaries.

            

    

    

    
      	
               

            	
              (e)

            	
              “Compensation
                Committee” means the Compensation Committee of the
                Board.

            

    

    

    
      	
               

            	
              (f)

            	
              “Disability”
                means the total and permanent disability of a participant as defined
                by
                any Long-Term Disability Plans in effect for the Company and as thereafter
                may be amended.

            

    

    

    
      	
               

            	
              (g)

            	
              “Effective
                Date” means the date upon which the Plan shall become
                effective.

            

    

    

    
      	
               

            	
              (h)

            	
              “Fiscal
                Year” means the accounting period adopted by the Company for federal
                income tax purposes.

            

    

    

    
      	
               

            	
              (i)

            	
              “Participant”
                means a person designated by the Company to participate in the
                Plan.

            

    

    

    
      	
               

            	
              (j)

            	
              “Plan”
                shall mean the Company’s Senior Management Incentive Compensation
                Plan.

            

    

    

    
      	
               

            	
              (k)

            	
              “Salary”
                or “Salaries” shall mean the base salary in effect for each
                participant as of the last pay period in December of the Award
                Period.

            

    

    

    
      	
               

            	
              (l)

            	
              “Stock
                Option” shall mean Stock Options granted under the Community Trust
                Bancorp, Inc. 2006 Stock Option Plan as hereinafter may be amended
                including substitutions or replacements of the Plan.  Such
                options shall be Incentive Stock Options to the extent possible under
                tax
                laws in effect at the time the option is
                awarded.

            

    

    ARTICLE
      III

    

    ADMINISTRATION
      OF THE PLAN

    

    
      Section
        3.01

    

    The
      Compensation Committee shall administer the Plan and employ such other agents
      as
      may reasonably be required to administer the Plan.

     

    
      Section
        3.02

    

    The
      Compensation Committee shall adopt such rules and regulations of general
      application as are beneficial for the administration of the Plan and shall
      make
      all discretionary decisions involving a participant of the Plan. Said committee
      shall also have the right to interpret the Plan, to determine the Effective
      Date, and to approve all employees who are to participate in the
      Plan.

    

    Section
      3.03

    A
      majority of the Compensation Committee shall constitute a quorum.  The
      acts of a majority of the members present at any meeting at which there is
      a
      quorum shall be valid acts.  Acts reduced to and approved in writing
      by a majority of said committee shall also be valid acts.

    

    Section
      3.04

    All
      incentive compensation payable under the Plan shall be paid from the general
      assets of the Company.  To the extent that any person acquires a right
      to receive payments under the Plan, such right shall be no greater than the
      right of any unsecured creditor of the Company.

    

    Section
      3.05

    The
      Compensation Committee may authorize the Chairman, President and CEO of the
      Company to send a written notice of such Plan to each selected
      Participant.  No person shall have the right to be included in the
      Plan until receiving said notice in the form of Attachment "A"
      hereto.

    

    Section
      3.06

    All
      costs
      and expenses involved in the administration of this Plan shall be paid by the
      Company.

    

    Section
      3.07

    Any
      determination or action of the Compensation Committee or the Board shall be
      final, conclusive and binding on all participants and their beneficiaries,
      heirs, personal representatives, executors and administrators.

    

    Section
      3.08

    The
      Board
      of Directors, in its sole discretion, may amend, modify or terminate the Plan
      at
      any time.  The Board shall also annually review the pre-determined
      performance standards and may amend such schedules in its sole
      discretion.

    ARTICLE
      IV

    

    PARTICIPANT
      ELIGIBILITY

    

    Section
      4.01

    The
      following groups shall participate in the Plan:

    

    
      	
               

            	
              (a)

            	
              Group
                I shall consist of the Executive Committee of the
                Corporation.

            

    

    

    
      	
               

            	
              (b)

            	
              Group
                II shall consist of the (1) CTB officers responsible for the divisions
                of
                Commercial Lending, Consumer Lending, Residential Real Estate Lending,
                Finance, Sales and Marketing, Human Resources, Compliance, Facilities
                Management and (2) the Presidents of each
                market.

            

    

     

    
      	
               

            	
              (c)

            	
              
                Group
                  III shall consist of Senior Vice Presidents of consolidated functions
                  who
                  are selected for participation by the Compensation
                  Committee.

              

            

    

    

      	
               

            	
              (d)

            	
              Individuals
                below SVP level may be recommended and approved by the Compensation
                Committee for special awards of options for extraordinary
                performance.

            

    

     

    Section
      4.02

    Voluntary
      or involuntary termination of full-time employment of a Participant prior to
      the
      payment of incentive awards for an Award Period will result in such Participant
      forfeiting any incentive compensation for the Award Period (except as provided
      in Section 4.03 herein).

    

    Section
      4.03

    If
      a
      Participant dies, retires, becomes disabled, or is granted a leave of absence
      during an Award Period, the Compensation Committee may, at its discretion or
      under such rules as it may have prescribed, award partial incentive compensation
      based on the level of achievement in relation to goals established for the
      Award
      Period.

    

    Section
      4.04

    Directors
      who are also employees of the Company shall be eligible to participate in the
      Plan.  However, a director who is compensated on the basis of a fee or
      retainer, as distinguished from a salary, shall not be eligible.

    

    Section
      4.05

    New
      employees of the Company and persons promoted during the Award Period who were
      not eligible to participate in the Plan at the beginning of the Award Period,
      but have become a member of Group I, II, or III shall participate in the Plan
      so
      long as such eligibility came into existence no later than six (6) months after
      the beginning of said Award Period.  If a person becomes eligible at a
      date later than six (6) months into an Award Period, such person shall not
      be a
      Participant under this Plan until the first day of the next Award
      Period.

    ARTICLE
      V

    

    PAYMENT
      TO PARTICIPANTS

    

    

    Section
      5.01

    Incentive
      compensation to be awarded under the Plan shall be paid to Participants within
      thirty days after the close of the Award Period.  Awards are not
      earned until paid to Participants.

    

    Section
      5.02

    A
      Participant may elect to defer payment of all or part of his or her incentive
      compensation so long as the Participant requests such deferred payment under
      the
      terms of the Company’s Voluntary Deferred Compensation Plan.

    
 

    ARTICLE
      VI

    

    DETERMINATION
      OF ANNUAL AWARD FUND

    

    

    Section
      6.01

    The
      Annual Incentive Plan fund for each group shall be generated by a percent of
      the
      aggregate salaries for the individuals in each group.  The target
      award fund shall be computed as shown in Table I below:

    

    TABLE
      I

    

    TARGET
      ANNUAL AWARD FUND

    

    
      	
              GROUP

            	
              AGGREGATE
                SALARIES

            	
              TARGET
                AWARD EXPRESSED

              AS
                A % OF SALARIES

               

            	
              TARGET
                ANNUAL AWARD FUND

            
	 	 	 	 
	
              I

            	
              $____________

            	
                          X         per
                schedule          =

            	
              $____________

            
	 	 	 	 
	
              II

            	
              $____________

            	
                          X         per
                schedule          =

            	
              $____________

            
	 	 	 	 
	
              III

            	
              $____________

            	
                          X         per
                schedule          =

            	
              $____________

            
	 	 	 	 

    

    

    Section
      6.02

    The
      actual amount of the Senior Management Incentive Compensation Plan award fund
      shall be calculated according to a schedule comparing Earnings Per Share and
      ROAA for the Award Period to a pre-determined performance
      standard.  When performance is at or above the performance standard,
      the actual award fund is adjusted upward from the target award
      fund.

    

    Section
      6.03

    There
      shall be a minimum acceptable performance beneath which no incentive awards
      are
      paid (sometimes referred to as the “threshold”) and a maximum above which there
      is no additional award paid to avoid excessive payout in the event of windfall
      profits.  Said minimum and maximum shall be reviewed annually and
      amended when necessary in the sole discretion of the Compensation
      Committee.

    

    Section
      6.04

    A
      Participant who is rated a "4" or "5" on the most recent Performance Appraisal
      and Development Plan shall not be eligible to receive an award under the
      Plan.

    ARTICLE
      VII

    

    CALCULATION
      OF AWARD

    

    Section
      7.01

    The
      Corporation’s (Group I) will earn an award determined by Earnings Per Share, as
      shown below:

    

    

    TABLE
      I

    

    2008
      ANNUAL CASH INCENTIVE COMPENSATION AWARD

    INITIAL
      CALCULATION

    

    Group
      I -
      Executive Committee of Community Trust Bancorp, Inc.

    

    
      	
               

              *Target/ROAA

            	
              Award
                as a % 

              of
                Target Award

            	
              Award
                as a %

              of
                Salary

            
	 	 	
              Group
                I

            
	
              Base                                 
                1.25%

            	
              100%

            	
              10%

            
	
              1.27%

            	
              150%

            	
              15%

            
	
              1.29%

            	
              200%

            	
              20%

            
	
              1.31%

            	
              250%

            	
              25%

            
	
              1.33%

            	
              300%

            	
              30%

            
	
              1.35%

            	
              350%

            	
              35%

            
	
              1.37%

            	
              400%

            	
              40%

            
	
              1.39%

            	
              450%

            	
              45%

            
	
              1.41%

            	
              600%

            	
              60%

            

    

    

    
      	
              ·  

            	
              For
                2008, 100% of Targeted (Base) ROAA and $2.45 earnings per share is
                required for an incentive to be
                earned.

            

    

    
      	
              ·  

            	
              These
                results are after accrual of the
                incentive.

            

    

    Section
      7.02

    The
      Corporation’s (Group II) will earn an award determined by Earnings Per Share, as
      shown below:

    

    

    TABLE
      II

    

    2008
      ANNUAL CASH INCENTIVE COMPENSATION AWARD

    INITIAL
      CALCULATION

    

    Group
      II
– Consolidated Division Officers of CTBI and

    Market
      Presidents

    

    
      	
              EPS
                as a % of

              *Target/ROAA

            	
              Award
                as a % of

              Target
                Award

            	
              Award
                as a %

              of
                Salary

            
	 	 	
              Group
                II

            
	
              Base                       1.25%

            	
              100%

            	
              9.00%

            
	
              1.27%

            	
              116.50%

            	
              10.50%

            
	
              1.29%

            	
              133%

            	
              13.50%

            
	
              1.31%

            	
              166.50%

            	
              16.50%

            
	
              1.33%

            	
              200%

            	
              18.00%

            
	
              1.35%

            	
              237.50%

            	
              21.50%

            
	
              1.37%

            	
              275%

            	
              25.00%

            
	
              1.39%

            	
              304%

            	
              27.50%

            
	
              1.41%

            	
              333%

            	
              30.00%

            

    

    

    
      	
              ·  

            	
              For
                2008, 100% of the targeted (Base) ROAA and $2.45 earnings per share
                is
                required for an incentive to be
                earned.

            

    

    
      	
              ·  

            	
              These
                results are after accrual of the
                incentive.

            

    

    
 

    Section
      7.03

    Senior
      Vice Presidents of consolidated functions designated by the Compensation
      Committee will earn an award primarily determined by earnings per share, as
      shown below:

    

    TABLE
      III

    

    2008
      ANNUAL CASH INCENTIVE COMPENSATION AWARD

    INITIAL
      CALCULATION

    

    Group
      III
      - Senior Vice Presidents of Consolidated Functions

    

    
      	
                  EPS
                as a % of

              *Target/ROAA

            	
              Award
                as a % of

              Target
                Award

            	
              Award
                as a %

              of
                Salary

            
	 	 	
              Group
                III

            
	
              Base                                              1.25%

            	
              100%

            	
              8.50%

            
	
              1.27%

            	
              109%

            	
              9.25%

            
	
              1.29%

            	
              118%

            	
              10.00%

            
	
              1.31%

            	
              147%

            	
              12.50%

            
	
              1.33%

            	
              176%

            	
              15.00%

            
	
              1.35%

            	
              205.50%

            	
              17.50%

            
	
              1.37%

            	
              235%

            	
              20.00%

            
	
              1.39%

            	
              264%

            	
              22.50%

            
	
              1.41%

            	
              294%

            	
              25.00%

            

    

    

    
      	
              ·  

            	
              For
                2008, 100% of the targeted (Base) ROAA and $2.45 earnings per share
                is
                required to earn an incentive.

            

    

    
      	
              ·  

            	
              These
                results are after accrual of the
                incentive.

            

    

     

    Section
      7.04

    Participants
      in Groups I, II, and III shall be eligible to receive Stock Options awards
      on
      the same day that cash awards are paid under the terms of this
      Plan.  Such Stock Options shall have a face value equal to the
      percentage of salary shown on Table IV below, adjusted in the same manner and
      in
      the same proportion as cash awards are adjusted under the terms of Sections
      7.01, 7.02, and 7.03, and rounded down as necessary to grant an option for
      whole
      shares.

    

    TABLE
      IV

    

    2008
      SENIOR MANAGEMENT INCENTIVE COMPENSATION PLAN STOCK
      OPTION AWARDS

    

    
      	
              EPS
                as a % of

              *
                Target/ROAA

            	
              Stock
                Option Award

              as
                a % of Salary

            
	 	
              Group
                I

            	
              Group
                II

            	
              Group
                III

            
	
              Base                                                   
                1.25%

            	
              100.00%

            	
              50%

            	
              25.00%

            
	
              1.27%

            	
              112.00%

            	
              55%

            	
              27.50%

            
	
              1.29%

            	
              125.00%

            	
              60%

            	
              30.00%

            
	
              1.31%

            	
              137.50%

            	
              65%

            	
              32.50%

            
	
              1.33%

            	
              150.00%

            	
              70%

            	
              35.00%

            
	
              1.35%

            	
              162.50%

            	
              75%

            	
              37.50%

            
	
              1.37%

            	
              175.00%

            	
              80%

            	
              40.00%

            
	
              1.39%

            	
              187.50%

            	
              90%

            	
              45.00%

            
	
              1.41%

            	
              200.00%

            	
              100%

            	
              50.00%

            

    

    

    
      	
              ·  

            	
              For
                2008, 100% of Targeted (Base) ROAA and $2.45 earnings per share is
                required for an incentive to be
                earned.

            

    

    
      	
              ·  

            	
              These
                results are after accrual of the
                incentive.

            

    

    

     

    ARTICLE
      VIII

     

    MISCELLANEOUS
      PROVISIONS

    

    Section
      8.01

    If
      the
      financial performance of the Company for any Fiscal Year taken into account
      for
      determination of an award is found to be incorrect by the Company's independent
      certified public accountants and was more than the correct amount, there shall
      be no recourse by the Company against any person or estate.  However,
      the Company shall have the right to correct such error by reducing by the excess
      amount any subsequent payments yet to be made under the Plan.

    

    Section
      8.02

    The
      Compensation Committee may elect to remove unusual, extraordinary or
      non-recurring items from the calculation of the Earnings Per Share.

    

    Section
      8.03

    The
      Company shall not merge into or consolidate with another entity or sell all
      or
      substantially all of its assets to another entity unless such other entity
      shall
      become obligated to perform the terms and conditions hereof relating to any
      awards already earned but not yet paid to the participant on his/her
      behalf.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ATTACHMENT
      A

    

    

    NOTICE
      OF PARTICIPATION

    

     

    ___________________
      is eligible for participation in the 2008 Plan Year for Community Trust Bancorp,
      Inc. Senior Management Incentive Compensation Plan, such Participant being
      subject to all of the terms and conditions of said Plan.

    

    

    

    Compensation
      Committee of the Board of
      Directors

    

    BY:
      ___________________________________

    

    Dated:
      ____________________

    

 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ATTACHMENT
      B

    

    DESIGNATION
      OF
      BENEFICIARY

    

    I,                                           a
      participant in the Community Trust Bancorp, Inc. Senior Management Incentive
      Compensation Plan, name the following as my primary beneficiary under said
      Plan
      in the event of my death prior to receiving an award payable to me under said
      Plan.

     

    Name:

     

    Relationship:

     

    Address:

    

    If
      the
      primary beneficiary predeceases me, I designate the following persons as a
      contingent beneficiary, in the order shown, to receive an award payable to
      me
      under the Plan:

     

    
      Name:

       

      Relationship:

       

      Address:

      
 

      
        Name:

         

        Relationship:

         

        Address:

        

      

    

    
      Name:

       

      Relationship:

       

      Address:

      

    

    This
      supersedes any previous beneficiary designation made by me with respect to
      this
      Plan.  However, any compensation covered by the Community Trust
      Bancorp, Inc. Voluntary Deferred Compensation Plan shall be governed by the
      Beneficiary Designation applicable to that Plan.

     

    _______________           
____________________________
Date                                               
      Signature of Participant

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}]]