Document:

EX-10.47

 

Exhibit 10.47

Acknowledgement

As you know, on February 23, 2007, the Board of Directors elected you as Chief Risk Officer, such
that your full title would be Senior Vice President, Business Practices, Chief Compliance Officer
and Chief Risk Officer. Since your current Employment Agreement makes reference to your previous
title, this Acknowledgement confirms that any references to your previous title and related duties
and responsibilities are replaced by references to your current title — Senior Vice President,
Business Practices, Chief Compliance Officer and Chief Risk Officer — and the duties and
responsibilities associated with such new title.

Except as modified by this Acknowledgement, the terms of your Employment Agreement remain
unchanged. Please acknowledge your agreement to these terms by signing the enclosed copy of this
letter.

	 	 	 	 	 
	 

	 	 	 	Sincerely,
	 
	 	 	 	 
	 

	 	 	 	/s/ Andrew Goodman
	 

	 	 	 	 
	 

	 	 	 	Andrew Goodman
	 

	 	 	 	Executive Vice President,
	 

	 	 	 	Worldwide Human Resources

Agreed to and accepted by:

	 	 	 	 	 
	/s/ Patrick Gnazzo
 

Patrick GnazzoEX-10.59

 

Exhibit 10.59

Acknowledgement

As you know, on February 23, 2007, the Board of Directors elected you to the office of Executive
Vice President and General Counsel. Since your current Employment Agreement makes
reference to your previous title, this Acknowledgement confirms that any references to your
previous title and related duties and responsibilities are replaced by references to your current
title — Executive Vice President and General Counsel — and the duties and responsibilities
associated with such new title.

Except as modified by this Acknowledgement, the terms of your Employment Agreement remain
unchanged. Please acknowledge your agreement to these terms by signing the enclosed copy of this
letter.

	 	 	 	 	 
	 

	 	 	 	Sincerely,
	 
	 	 	 	 
	 

	 	 	 	/s/ Andrew Goodman
	 

	 	 	 	 
	 

	 	 	 	Andrew Goodman

Executive Vice President,
	 

	 	 	 	Worldwide Human Resources

Agreed to and accepted by:

	 	 	 	 	 
	/s/ Amy Fliegelman Olli
 

Amy Fliegelman Olli<PAGE>

                        PSB EXECUTIVE BONUS COMPENSATION
                                      2007

OVERVIEW

The goal of the PSB executive compensation program is to reward strong
performance and align the interests of senior management and shareholders. A
properly structured compensation program should foster above average financial
returns and should lead to the ability to attract and retain executive
management.

The incentive program will have three current year elements - bonus awards
payable in cash, restricted stock and stock options. All three components will
be performance based and will vary based upon our performance relative to our
peer group. Performance below the peer group will lead to bonuses below the
industry average, and performance above the peer group will lead to bonuses
above the industry average. Senior officers managing business units will earn a
portion of their incentive on the business unit results and a portion on the
results of the bank.

A long term performance package will be incorporated for the first time in 2007.
The long term incentive will be based upon PSB performance relative to two
indexes over a three year term: Michigan community bank stock returns, and
national community bank stock returns (NASDAQ Bank Index).

ANNUAL INCENTIVE AWARDS

The current year incentive plan will be based on three elements: ROA relative to
peers, growth in core deposits, and a discretionary component which measures how
well participants perform their jobs.

The percentage of bonus awarded based on the bank's overall performance will
vary by individual based upon their role in the company. Managers of P&L units
will be rewarded for delivering results above plan targets in their business
unit. They will also be heavily tied to the performance of the overall company.
The following table identifies the percentage of the annual bonus that will be
based on the Bank's performance, the performance of the executive's business
unit and the executive's individual performance:

<TABLE>
<CAPTION>
                            Bus.
                     Bank   Unit   Discretionary.
                     ----   ----   --------------
<S>                  <C>    <C>    <C>
President             80%     0         20%
CFO                   60%    20%        20%
Commercial Lending    30%    50%        20%
Retail Banking        40%    40%        20%
UMC                   30%    50%        20%
Credit Officer        40%    40%        20%
SVP Staff units       40%    40%        20%
</TABLE>

<PAGE>

The President does not have a business unit component and therefore the ROA
awards will be increased 100% to equalize the awards. The maximum percentage of
base pay if all business unit targets are met for each executive are:

<TABLE>
<S>                            <C>
Commercial Lending/Retail      50%
CFO/CCO/UMC/SVP PM/SVP Sales   35%
SVP Staff Units                20%
</TABLE>

ANNUAL PAYOUT COMPONENTS

Bonus Component

This component will be payable in cash.

<TABLE>
<S>   <C>       <C>                             <C>
ROA   Level 1   80% to 90% of MI peer group     15% of base pay
      Level 2   90% to 105% of MI peer group    25% of base pay
      Level 3   105% or more of MI peer group   35% of base pay
</TABLE>

<TABLE>
<S>            <C>                            <C>
Core Deposit   DDA and savings 4% or more     5% of base pay
Growth         MMIA 10% or more and DDA/Sav   5% of base pay
               target attained
</TABLE>

<TABLE>
<S>             <C>
Discretionary   Compliance
Components      Quality - service and credit
                Teamwork/effort/diversity
                Community involvement
</TABLE>

Restricted Stock:

<TABLE>
<CAPTION>
                                              Level 1   Level 2   Level 3
                                              -------   -------   -------
<S>         <C>                               <C>       <C>       <C>
President   Bank targets attained                10        20       30
SVP         Bank & business unit/individual
            targets met                       shares per $1,000 of base salary
</TABLE>

Except in the case of the President, payout will be dependent on bank and
business unit/individual performance. In the case of the President, only bank
and individual performance will be used as criteria. Business unit/individual
performance equals up to 50%, bank performance up to 50%. Restricted stock
awards are discretionary and are subject to the consent of the President and the
board for each individual. The individual must have met or exceeded their
performance targets, contributed to the overall success of the company and be
rated satisfactory or higher. Restricted Stock awards shall be subject to the
terms and conditions of the PSB Group Inc. 2004 Stock Compensation Plan.

<PAGE>

Stock Options:

<TABLE>
<CAPTION>
                                                 Level 1   Level 2   Level 3
                                                 -------   -------   -------
<S>         <C>                                  <C>       <C>       <C>
President   Bank targets attained                   30        40        50
SVP         Bank and business unit targets met   shares per $1,000 of base salary
</TABLE>

Except in the case of the President, payout will be dependant on bank and
business unit/individual performance. In the case of the President, only bank
and individual performance will be used as criteria. Business unit/individual
performance equals up to 50%, bank performance up to 50%. Restricted stock
awards are discretionary and are subject to the consent of the President and the
board for each individual. The individual must have met or exceeded their
performance targets, contributed to the overall success of the company and be
rated satisfactory or higher. Stock Option awards shall be subject to the terms
and conditions of the PSB Group Inc. 2004 Stock Compensation Plan.

GENERAL PROVISIONS OF ANNUAL INCENTIVE PLAN

Base Pay

All references in this plan to "base salary" or "base pay" shall refer to the
executive's annual rate of pay in effect on the last day of the performance
period.

Discretionary Nature of Awards and Employment Requirement

Although Board of Directors of PSB Group, Inc. intends to follow the guidelines
established above, all awards under this plan, all determinations of whether the
Bank or an executive has satisfied performance criteria and performance measures
shall be determined by the Board, in its sole discretion. All awards under the
annual plan will be payable only if both the President and the Board of
Directors approves the award and the executive is employed in good standing on
the date the Board approves the award. If the executive's employment with the
Bank has terminated for any reason prior to that date, the executive shall
forfeit the bonus award. Notwithstanding the foregoing general rule, the Board
may waive the employment requirement in the case of an executive whose
employment terminates due to death or permanent and total disability or in such
other circumstances deemed extraordinary by the Board of Directors.

Participation in Plan

An executive shall participate in the plan only if his or her participation is
approved by the Board of Directors.

Pro-rata Awards

The Board may approve participation in the annual plan by an executive hired
after the first day of the calendar year. In such cases, the Board shall
determine in its sole discretion the percentage of the annual bonus award for
which the executive will be eligible.

<PAGE>

LONG TERM INCENTIVE AWARDS

The long term incentive plan is designed to reward the executive officers (SVP &
above) and the board members for delivering long term shareholder value in
excess of industry benchmarks. The increase in market capitalization relative to
Michigan and national peer groups will trigger a payout in the long term plan.

The total return to PSB shareholders over a three year period will be compared
to the Michigan community bank peer group and the NASDAQ bank index. Performance
over either benchmark will trigger a payout under the long term plan. If earned,
payouts would occur only following the end of the three year period, subject to
the approval of the Bank's President and the Board of Directors. Payouts would
be in the form of restricted stock.

Payout Formula

<TABLE>
<S>                       <C>           <C>
MI Bank Stock Index       Up to 9.99%   50% of base pay or fees
                          10% or more   100% of base pay or fees

NASDAQ Bank Stock Index   Up to 9.99%   25% of base pay or fees
                          10% or more   50% of base pay or fees
</TABLE>

Performance above the NASDAQ bank stock index would be added to any awards
generated from beating the Michigan (MI) bank stock index for community banks.
Performance above the MI bank stock index for community banks would be added to
any awards generated from beating the NASDAQ bank stock index. Notwithstanding
the foregoing general principles, the total amount payable to executives will
not exceed10% of the increase in PSB Group, Inc.'s market capitalization during
the incentive period. If a reduction in bonus payments is required pursuant to
the preceding sentence, the reduction of each executive's bonus shall equal the
unreduced value of the executive's award times a fraction, the numerator of
which is the reduced award of all executives and the denominator of which is the
unreduced awards of all executives.

The Board of Directors may adjust market capitalization for any stock issuances
or stock repurchase transactions. The MI bank stock index for community banks
shall be determined by reference to the index published by the Michigan Bankers
Association or such other publication selected by the Board of Directors and the
NASDAQ Bank index will be measured by reference to the index published by
Oppenheimer or such other publication selected by the Board of Directors. The
fair market value of PSB Group, Inc. common stock and the number of shares of
restricted stock and to be awarded pursuant to the Long Term Incentive Plan
shall be determined by the Board of Directors, in its sole discretion.
Restricted Stock awards shall be subject to the terms and conditions of the PSB
Group Inc. 2004 Stock Compensation Plan.

<PAGE>

GENERAL PROVISIONS OF LONG TERM INCENTIVE PLAN

Base Pay

All references in this plan to "base salary" or "base pay" shall refer to the
executive's annual rate of pay in effect on the last day of the performance
period.

Discretionary Nature of Awards and Employment Requirement

Although Board of Directors of PSB Group, Inc. intends to follow the guidelines
established above, all awards under this plan, all determinations of whether the
Bank or an executive has satisfied performance criteria and performance measures
shall be determined by the Board, in its sole discretion. All awards under the
annual plan will be payable only if both the President and the Board of
Directors approves the award and the executive is employed in good standing on
the date the Board approves the award. If the executive's employment with the
Bank has terminated for any reason prior to that date, the executive shall
forfeit the bonus award. Notwithstanding the foregoing general rule, the Board
may waive the employment requirement in the case of an executive whose
employment terminates due to death or permanent and total disability or in such
other circumstances deemed extraordinary by the Board of Directors.

Participation in Plan

An executive shall participate in the plan only if his or her participation is
approved by the Board of Directors.

Pro-rata Awards

The Board may approve participation in the annual plan by an executive hired
after the first day of the calendar year. In such cases, the Board shall
determine in its sole discretion the percentage of the annual bonus award for
which the executive will be eligible.

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