Document:

Exhibit 10.1

 

 

FIRST UNITED CORPORATION

LONG-TERM INCENTIVE PLAN

 

Introduction

 

The Compensation Committee (the “Committee”)
of the Board of Directors (the “Board”) of First United Corporation (the “Corporation”) has adopted this
Long-Term Incentive Plan (this “Plan”) as a sub-plan of the Corporation’s 2018 Equity Compensation Plan that
was adopted at the 2018 annual meeting of shareholders (the “Equity Plan”). The purpose of this Plan is to reward participants
for increasing shareholder value of the Corporation, align interests with shareholders, and serve as a retention tool for key executives.

 

As used in this Plan, the term “Corporation”
refers to First United Corporation and, as the context requires, its subsidiaries.

 

Objectives for this Plan

 

The Plan is part of a total compensation
package that includes base salary, annual incentives, long-term incentives, and benefits. Below are specific objectives for this
Plan:

 

		·	Motivate and reward senior management
for increasing the long-term shareholder value of the Corporation.

 

		·	Create a strong focus on pay-for-performance
by providing a significant portion of total compensation at risk. 

 

		·	Position the Corporation’s total
compensation to be competitive with market for meeting defined performance goals. 

 

		·	Enable the Corporation to attract and
retain talent needed to drive its success.

 

Eligibility/Participation

 

The CEO of First United Corporation and
certain other executive officers of the Corporation are eligible to participate in this Plan. The Compensation Committee designates
those executive officers who are eligible to participate in this Plan and who should receive awards under this Plan. The Compensation
Committee may solicit eligibility and participation recommendations from the CEO.

 

In order to receive an Award under this
Plan, participants must be an active employee of the Corporation and in good standing at the time of grant. Employees hired after
a grant date will not be eligible to participate in that grant. 

 

Grant of Awards

 

The Compensation Committee believes that
awards that vest based on the Corporation’s performance and/or time align executive officers with shareholder interests.
Accordingly, under this Plan, a participant will receive one or more awards of restricted stock units (an “Award”).
An Award may vest based on performance metrics to be established by the Compensation Committee from time to time (a “Performance
Award”),or may vest over a period of time (the “Time Award”). The value of an Award is a specified percentage
of the participant’s salary as of the date of grant, which will be stated on an Appendix A to this Plan. Each participant’s
Award opportunity will be determined based on competitive market practice for his/her role. These opportunities will be determined
so as to reflect a target total compensation package that is competitive and provides a significant percentage of pay based on
performance (annual incentive + long-term incentive).

 

     

     

    

 

An Award of an RSU represents the right
to receive the aggregate value of the shares of the Corporation’s common stock subject to Award as of the date on which the
Award vests. That value may be paid in shares of stock, cash, or a combination of shares and cash, as determined by the Compensation
Committee at the time each Award is granted. To determine the targeted number of shares that are subject to an Award, the value
of the Award will be divided by the Fair Market Value (as that term is defined in the Equity Plan) of a share of the Corporation’s
common stock as of the date of grant, rounded down to the nearest whole share (the “Target Shares”). For Performance
Awards, the number of shares that could be issued (or converted into a cash payment, if the Compensation Committee were to determine
to pay an Award in cash) if the threshold, target or the maximum target is met will be determined by multiplying the Target Shares
by the threshold percentage, target percentage and maximum percentage, respectively. All Awards will be evidenced by an individual
award agreement with the participant that details the number of shares of common stock covered by the Award, the performance metrics
that will dictate whether and the extent to which the Award will vest, and other terms consistent with this Plan and the Equity
Plan.

 

Performance Goals; Performance Period;
Vesting of Awards

 

For each Performance Award, the Compensation
Committee will establish one or more performance goals for a three-year performance period (the “Performance Period”)
and the minimum thresholds that must be met for the Award to vest, stated as a percentage of the targeted performance goals. The
extent to which an Award will vest will be based on whether performance for the Performance Period meets or exceeds the threshold
levels, target levels or stretch levels established for each performance metric. The Compensation Committee may assign particular
weightings to each of these performance metrics. Threshold performance will cause a portion of an Award that is less than 100%
to vest; target performance will cause 100% of the Award to vest; and maximum performance will cause a multiple of 100% of the
Award to vest. Actual vesting amounts will be pro-rated between threshold and target levels and target and maximum levels to reward
incremental improvement. The Performance Period, the applicable performance metrics, and the threshold, target and maximum levels
for those metrics will be established each year by the Compensation Committee and set forth in Appendix A to this Plan.
The goals for the performance metrics will be specified in a participant’s award agreement.

 

The vesting of a Performance Award is “all
or nothing”, in that the Performance Award will vest only if the Corporation achieves the threshold goals and then only if
the participant is employed by the Corporation on the vesting date. All Performance Shares will lapse if the specified thresholds
are not met or the participant is not employed on the vesting date. Achievement of the threshold, target or maximum levels for
a Performance Award will be determined by the Compensation Committee on the date on which the Corporation files its Annual Report
on Form 10-K containing audited financial statements for the last year of the Performance Period related to the Award or March
15th of the year following the end of the Performance Period, whichever occurs first. If the Corporation is not required to file
a Form 10-K, then the determination will occur no later than March 15th of the year following the end of the Performance Period.
Promptly thereafter, the Compensation Committee shall notify each participant in writing as to whether the threshold, target or
maximum levels for the Performance Period were satisfied. In all cases, the vesting date for a Performance Award will be March
15th of the year following the end of the Performance Period for that Award.

 

A Time Award will vest on the date or dates
specified in the related award agreement.

 

    	 	- 2 - 
	 

     

    

 

 

Long-Term Incentive Plan Subject to
Equity Plan 

 

Notwithstanding anything in this Plan to
the contrary, the terms of this Plan are subject to the terms of the Equity Plan, a copy of which must be provided to each participant
at the time an Award is granted.

 

Effective Date

 

The Plan is effective as of March 11, 2020.
The Plan, its performance goals and its other components may be reviewed and revised annually by the Compensation Committee to
ensure proper alignment with the Corporation’s objectives. The Compensation Committee retains the right as described below
to amend, modify or terminate this Plan at any time during the specified period.

 

Program Authorization and Oversight

 

The Compensation Committee has the sole
authority to establish rules for and otherwise interpret this Plan, to designate those employees who are eligible for participation,
to grant awards under this Plan, and to otherwise administer this Plan as described in the Omnibus Equity Compensation Plan. Any
determination by the Compensation Committee will be final and binding.

 

Amendment and Termination

 

The Compensation Committee has developed
this Plan on the basis of existing business, market and economic conditions; current philosophy and staff assignments. If substantial
changes occur that affect these factors, the Compensation Committee may add to, amend, modify or discontinue any of the terms or
conditions of the Program at any time. No such addition, amendment, modification or discontinuance shall adversely impact any participant
who has been granted an Award without that participant’s consent.

 

Termination of Employment; Disability,
Retirement and Death; Leaves of Absence

 

If the employment of a participant is terminated
prior to the vesting date of an outstanding Award other than because of death, disability, or retirement, all unvested awards will
lapse and be forfeited.

 

If a participant becomes disabled and is
disabled long enough to be placed on long-term disability, his/her outstanding unvested awards may be appropriately prorated so
that no Award will be earned during the period of long-term disability. If a participant’s employment is terminated due to
disability, the Corporation will pay an amount of shares or cash to the participant based on the pro rata portion of the award
that would have been earned by the participant had the participant remained employed through the vesting date and had the threshold
goals been met. Such payment will be made as soon as practicable after termination.

 

In the event of retirement or death, the
Corporation will pay an amount of shares or cash to the participant or his or her estate (as the case may be) based on the pro
rata portion of the award that would have been earned by the participant had the participant remained employed through the vesting
date and had the threshold goals been met. Such payment will be made as soon as practicable after death or retirement.

 

The method of determining the pro rata
portion that shall be deemed vested in the event of termination due to disability, retirement or death shall be specified in each
award agreement.

 

In the event of an approved leave of absence,
a participant’s Award may be appropriately adjusted to reflect the period of active status. 

 

    	 	- 3 - 
	 

     

    

 

Change in Control of First United Corporation

 

Unless a participant has entered into an
agreement under the First United Corporation Change in Control Severance Plan that provides otherwise (the “CiC Plan”),
in which case the CiC Plan shall control, Section 15 of the Equity Plan shall apply to the Awards in the event there is a Change
in Control (as defined in the Equity Plan).

 

Ethics

 

Any unvested Award will terminate and lapse
in the event the Compensation Committee determines that a participant (i) knowingly participated in the altering, inflating, and/or
inappropriate manipulation of performance or financial results of the Corporation for any fiscal year, or (ii) willfully engaged
in any activity injurious to the Corporation. In addition, in the event of item (i), the participant shall forfeit and return to
the Corporation all shares of common stock (or cash, to the extent the Award was paid in cash, in which case such amount shall
be repaid to the Corporation) issued pursuant to a Performance Award to the extent it vested based on the altered, inflated, or
manipulated financial results.

 

Clawback

 

Subject to the forfeiture provisions in
the “Ethics” section above, if an Award has vested and the Corporation is thereafter required to restate its financial
statements in respect of any period covered by the Performance Period for that award due to the material noncompliance with any
applicable financial reporting requirements, including securities laws, the award shall be adjusted to give retroactive effect
to the restatement. In such case, a participant who received a distribution under such an Award will generally be required to forfeit
and return to the Corporation that portion of the award that the restatement shows should not have been earned; provided, however,
that, notwithstanding the foregoing, no participant or former participant shall be required to return any portion of any award
to the extent it was paid more than three years prior to the date the Corporation determines that a restatement is required.

 

Miscellaneous

 

Upon the vesting of an Award or the payment
of cash upon termination of employment, the Corporation shall be entitled to withhold Performance Shares or cash from the award
in an amount necessary to satisfy all federal, state and local taxes required to be withheld or otherwise deducted and paid with
respect to such award.

 

Neither this Plan nor any award agreement
granted hereunder will be deemed to give any participant the right to remain an employee of the Corporation, nor will this Plan
or an award agreement interfere with the right of the Corporation to discharge any participant at any time. In the absence of an
authorized, written employment contract, the relationship between employees and the Corporation is one of at-will employment. The
Plan does not alter the relationship.

 

The Program and the transactions and payouts
hereunder shall, in all respect, be governed by, and construed and enforced in accordance with the laws of the State of Maryland
and the Omnibus Equity Compensation Plan.

 

Each provision of this Plan is severable. If any provision is
held to be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining provisions shall not,
in any way, be affected or impaired thereby.

 

    	 	- 4 - 
	 

     

    

APPENDIX A

 

Performance Award Opportunities –
Three-Year Performance Period Beginning January 1, 2019

 

The Compensation Committee may grant Performance
Awards in 2020 with respect to a Performance Period that will be deemed to have commenced on January 1, 2019 and that will end
on December 31, 2021. The value of an Award will be equal to 10% of the participant’s base salary as of December 31, 2018,
and the performance metric will be earnings per share. The threshold level for vesting purposes will be 50% of the target amounts.
The maximum level will be 150% of the target amount. The targeted performance goal for this Performance Period will be specified
in each award agreement. If the threshold level is met, then 50% of the Performance Award will vest; if the target level is met,
then 100% of the Performance Award will vest; and if the maximum level is met, then 150% of the Performance Award will vest. Actual
vesting amounts will be pro-rated between threshold and target level and target and maximum levels. The targeted performance goal
will be specified in each award agreement. The vesting date for these Performance Awards will be March 15, 2022, provided that
(i) the participant is an employee of the Corporation in good standing on such date and (ii) the Corporation’s earnings per
share for the one-year period ending December 31, 2021 meet or exceed the threshold level.

 

Performance and Award Opportunities
 – Three-Year Performance Period Beginning January 1, 2020

 

The table below provides the Award opportunities
as a percentage of base salary at December 31, 2019:

 

	Tier	
        Annual Target Award Opportunity

        (% of Base Salary)

	CEO	15%
	I	15%

 

Tier I includes the following executive
officers:  Chief Financial Officer; Chief Operating Officer; Chief Revenue Officer; and Senior Trust Officer.

 

Two-thirds of an Award will be a Performance
Award, and one-third of the Award will be a Time Award. The Time Award will vest ratably over a three-year period, beginning on
the first anniversary of the grant date. A participant must be an employee in good standing on each vesting date to receive shares
under a Time Award.

 

2020 Performance Goals for Performance
Awards

 

The Performance Period will be deemed
to have commenced on January 1, 2020 and will end on December 31, 2022. The targeted performance goals will be earnings per
share and tangible book value per share. The threshold level for vesting purposes will be 50% of the target amount. The
maximum level will be 150% of the target amount. Threshold performance for at least one of these performance metrics must be
met for an award to vest. The targeted performance goals for this Performance Period will be specified in each award
agreement. If the threshold levels are met, then 50% of the Performance Award will vest; if the target levels are met, then
100% of the Performance Award will vest; and if the maximum levels are met, then 150% of the Performance Award will vest.
Actual vesting amounts will be pro-rated between threshold and target levels and target and maximum levels. The vesting date
for these Performance Awards will be March 31, 2023, provided that the participant is an employee of the Corporation in good
standing on such date, and either (a) the Corporation’s earnings per share for the one-year period ending December 31,
2022 meets or exceeds the threshold level for that performance metric, or (b) the Corporation’s tangible book value
per share meets or exceeds the threshold level for that performance metric.Exhibit 10.2

 

Portions of Appendix A to this Exhibit
10.2, identified by brackets, has been excluded from this Exhibit because it is both not material and would likely cause competitive
harm to the registrant if publicly disclosed. Such information will be disclosed as, if and when required pursuant to Item 402
of Regulation S-K. 

 

FIRST UNITED CORPORATION

SHORT-TERM INCENTIVE PLAN

 

Introduction and Objective

 

The annual incentive compensation plan,
known as the Short-Term Incentive Plan (the “Plan”), of First United Corporation (the “Corporation”) is
designed to recognize and reward certain employees of the Corporation and its affiliates for their collective contributions to
the success of the Corporation. The Plan focuses on the financial measures that are critical to the Corporation’s growth
and profitability. This document summarizes the elements and features of the Plan.

In short, the objectives of the Incentive Plan are to:

 

		·	Align pay with performance;

 

		·	Encourage teamwork and collaboration across
all areas of the Corporation and its affiliates;

 

		·	Motivate and reward the achievement of
specific, measurable performance objectives;

 

		·	Position total cash compensation to be
competitive with market when performance meets expectations;

 

		·	Motivate and reward employees for achieving/exceeding
performance goals; and

 

		·	Enable the Corporation and its affiliates
to attract and retain the talent needed to drive success. 

 

Eligibility

 

The Corporation’s CEO and certain
other executive officers of the Corporation and its affiliates selected by the Compensation Committee (the “Compensation
Committee”) of the Corporation’s Board of Directors (the “Board”) are eligible to participate in the Plan.
An employee who becomes a participant after the beginning of the Plan year, whether because he or she is a new hire or because
he or she is appointed as an executive officer during a Plan year, is eligible for a prorated award for that Plan year based on
the period of the Plan year during which he or she was a participant, provided that an executive must be employed by October 1
of a Plan year to be eligible for an award for that Plan year.

 

Participants must maintain a performance
level of “Satisfactory”, as determined by achieving a 3 or greater rating in the Corporation’s performance review
program.

 

Participants must be an active employee
of the Corporation or one of its affiliates as of the award payout date to receive an award (other than exceptions for death, disability
and retirement contained herein).

 

Effective Date

 

The Plan is effective March 11, 2020. The
Plan will be reviewed annually by the Compensation Committee and by Executive Management to ensure proper alignment with the Corporation’s
business objectives and to revise, if necessary, the performance goals. The Corporation retains the rights as described below to
amend, modify or discontinue the Plan at any time during the specified period. The Plan will remain in effect until terminated
by the Compensation Committee.

 

     

     

    

 

Program Administration

 

The Plan was adopted by the Compensation
Committee and reported to the Board. 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 Compensation Committee will be final
and binding on all participants.

 

Performance Period

 

The performance period and Plan operate on a calendar year basis
(January 1 – December 31st). The first Plan year is January 1, 2020 to December 31, 2020.

 

Incentive Payout Opportunity

 

Each participant will have a target incentive
opportunity based on competitive market practice for his/her role. A participant’s award will be based upon a percentage
of the participant’s base salary as of December 31 for the Plan year and will be calculated based on whether actual performance
with respect to specified metrics meets threshold levels, target levels, or maximum levels for those metrics. The Compensation
Committee may assign particular weightings to each of these performance metrics. Threshold performance will pay out a specified
percentage of the target award that is less than 100%; target performance will pay out the target award; and maximum performance
will pay out a specified percentage of the target award that is greater than 100%. Where actual performance does not meet the threshold
level for a particular metric, no award payout will be made with respect to that metric. Actual payouts for each performance metric
will be pro-rated between threshold and target levels and target and maximum levels to reward incremental improvement. The performance
metrics for a particular year and the threshold, target and maximum levels for those metrics will be established each year by the
Compensation Committee and set forth in Appendix A to this Plan.

 

Plan Trigger

 

The Compensation Committee may condition
the activation of the Plan for a particular year on whether actual performance meets a specified threshold level for one or more
performance metrics, regardless of whether actual performance with respect to other performance metrics meets or exceeds the threshold
levels for those metrics. For example, the Compensation Committee could determine that no awards will be paid for a particular
year unless earnings per share for that year exceed 50% of the targeted earnings per share goal established by the Compensation
Committee. The performance trigger(s) for a Plan year, if any, will be stated in Appendix A to this Plan.

 

Example

 

Below is an illustration for a fictional
executive with a base salary of $125,000 and an incentive target of 20% of base salary ($25,000), where the performance metrics
are return on average assets (ROA), efficiency ratio, average delinquencies as a percentage of total loans, and individual performance.
Goal weight and actual performance are provided for illustration only.

 

	

Participant Goals	Performance and Payout
	Performance Metric	Performance Goal  threshold/target/maximum	Weight	$	Actual Performance	Payout Allocation (0% - 150%)	Payout ($)
	ROA	.84% / .93% /1.02%	40%	$10,000	Threshold	50%	$5,000
	Efficiency Ratio	70% / 68% / 66%	20%	$5,000	Target	100%	$5,000
	Delinquencies	.58% / .53% / .48%	20%	$5,000	Maximum	150%	$7,500
	Individual Performance – Net Interest Margin	3.31% / 3.68% / 4.05%	10%	$5,000	Below Threshold	0%	$0
	TOTAL	100%	$25,000	70%
    payout	$17,500

 

    	 	- 2 -	 

     

    

 

Award Payouts

 

Awards for a Plan year will be paid as
a cash bonus no later than March 15th following the end of the Plan year. Awards will be calculated based on actual
performance relative to the target levels. Awards will be taxable income to participants in the year in which the award is actually
paid and will be subject to withholding for required income and other applicable taxes.

 

Any rights accruing to a participant or
his/her beneficiary under the Plan shall be solely those of an unsecured general creditor of the Corporation. Nothing contained
in the Plan, and no action taken pursuant to the provisions hereof, will create or be construed to create a trust of any kind,
or a pledge, or a fiduciary relationship between the Corporation and its affiliates, on the one hand, and a participant or any
other person, on the other hand. Nothing herein will be construed to require the Corporation to maintain any fund or to segregate
any amount for a participant’s benefit.

 

Program Changes or Discontinuance

 

The Corporation has developed the Plan
based on existing business, market and economic conditions. If substantial changes occur that affect these conditions, the Corporation
may add to, amend, modify or discontinue any of the terms or conditions of the Plan at any time.

 

The Compensation Committee may also, at
its sole discretion, waive, change or amend the Plan, as it deems appropriate.

 

No amendment, modification, discontinuance
or waiver may adversely affect a participant’s eligibility to receive an award if he or she has been notified of such eligibility.

 

Notwithstanding any other provision of
this Plan to the contrary, however, the Corporation may amend, modify or terminate this Plan, without the consent of the participants,
as the Corporation deems necessary or appropriate to ensure compliance with any law, rule, regulation or other regulatory pronouncement
applicable to the Plan, including, without limitation, Section 409A of the Internal Revenue Code and any related regulations or
other guidance promulgated with respect to Section 409A of the Code.

 

    	 	- 3 -	 

     

    

 

Promotions and Transfers

 

If a participant changes his/her role or
is promoted during the Plan year, he/she will be eligible for the new role’s target award on a prorata basis (i.e.
the award will be determined based on the number of months employed in each position.)

 

Termination of Employment

 

Except in the case of a termination due
to a participant’s death, disability or retirement as discussed below, no incentive award will be granted to any participant
whose employment with the Corporation or one of its affiliates is terminated for any reason. Moreover, to encourage employees to
remain in the employment of the Corporation, a participant must be an active employee of the Corporation or one of its affiliates
on the date the incentive is paid to receive an award.

 

Death, Disability or Retirement

 

If a participant is disabled by an accident
or illness and is disabled long enough to be placed on long-term disability under the Corporation’s long-term disability
policy, his/her award for the Plan year shall be prorated so that no award will be earned during the period of long-term disability.

 

In the event a participant’s employment
is terminated due to death or disability (as defined in the Corporation’s long-term disability policy), the Corporation will
pay to the participant’s estate or to the participant (as the case may be) the pro rata portion of the award that had been
earned by the participant through the date of termination.

 

Participants who retire during the Plan
year will receive a pro-rata portion of the award based on the retirement date. For purposes of the Plan, the term “retire”
means a participant’s voluntary termination of his or her employment (other than by reason of death or disability) after
(i) reaching 60 years of age and (ii) completing 10 years of service with the Corporation.

 

Clawback

 

In the event
the Corporation is required to prepare an accounting restatement due to the material noncompliance of the Corporation with any
financial reporting requirement under applicable securities laws or applicable accounting principles, then each participant who
received an award under the Plan will be required to return to the Corporation his or her award to the extent the accounting restatement
shows that a smaller award should have been paid; provided, however, that, notwithstanding the foregoing, no participant
or former participant will be required to return any portion of any award to the extent it was paid more than three years prior
to the date the Corporation determines that a restatement is required. To the extent a participant
has deferred into a deferred compensation plan of the Corporation an amount that an accounting restatement shows should not have
been awarded, such participant’s account under the deferred compensation plan will be adjusted to reflect such improperly-awarded
amount (and earnings and losses thereon). 

 

Ethics and Interpretation

 

If there is any ambiguity as to the meaning
of any terms or provisions of this Plan or any questions as to the correct interpretation of any information contained herein,
the Corporation’s interpretation expressed by the Compensation Committee will be final and binding. It is the intent of the
Corporation that this Plan and each award hereunder comply with the applicable provisions of Section 409A of the Internal Revenue
Code, and the Plan shall be so interpreted and administered accordingly, including with respect to any restrictions or other limitations
imposed by Section 409A of the Internal Revenue Code on the amount and timing of distributions payable under an award.

 

    	 	- 4 -	 

     

    

 

The altering, inflating, and/or inappropriate
manipulation of performance/financial results or any other infraction of recognized ethical business standards by a participant
will subject that participant to disciplinary action up to and including termination of employment. In addition, that participant’s
eligibility for an award under the Plan shall be revoked.

 

If it is determined (by the independent
members of the Compensation Committee) that a participant has willfully engaged or is willfully engaging in any activity that was
or is injurious to the Corporation or its affiliates, then the participant shall forfeit eligibility for an award for the Plan
year in which such determination is made. If it is determined that such activity occurred during a Plan year for which the participant
received an award under the Plan, then, subject to any provision of the Corporation’s deferred compensation plan that does
not permit the forfeiture of amounts deferred into such plan, the participant shall return the award to the Corporation.

 

Miscellaneous

 

The Plan will not be deemed to give any
participant the right to be retained in the employ of the Corporation or any of its affiliates, nor will the Plan interfere with
the right of the Corporation or an affiliate to discharge any participant at any time.

 

In the absence of an authorized, written
employment contract, the relationship between a participant and the Corporation and its affiliates is one of at-will employment.
The Plan does not alter the relationship.

 

This Plan and the transactions and payments
hereunder shall, in all respects, be governed by, and construed and enforced in accordance with the laws of the State of Maryland.

 

Each provision in this Plan is severable,
and if any provision is held to be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not, in any way, be affected or impaired thereby.

 

Participant Acknowledgement

 

As a condition to participation in the Plan and the receipt
of any award, each participant shall sign and deliver to the Corporation an acknowledgement in which he or she agrees to the terms
and conditions of the Plan.

 

    	 	- 5 -	 

     

    

 

Appendix A

 

Short-Term Incentive Plan

2020 Plan Year Targets and Goals

 

Incentive Targets

 

The incentive targets for the 2020 Plan
year are set forth in the following table:

 

	
        2020 Short-Term Incentive Opportunities

        (% of Base Salary)

	Tier	Below Threshold	
        Threshold

        (50% of Target)
	
        Target

        (100%)
	
        Maximum

        (150% of Target)

	CEO	0%	7.5%	15%	22.5%
	Tier I	0%	7.5%	15%	22.5%

 

Tier I includes the following executives:
Chief Financial Officer (CFO); Chief Operations Officer (COO); Chief Revenue Officer (CRO); and Senior Trust Officer (STO).

 

Performance Goals

 

For Plan year 2020, the performance goals
are return on average assets (ROAA), efficiency ratio, delinquencies as a percentage of total loans, and individual performance
based upon the metric indicated for each position in the following table. The following table shows the performance goals at threshold,
budget and maximum for Plan year 2020:

 

	Performance Measures	Wt.	2020 Performance Metrics
	
        Threshold

        (90% of target performance)1
	
        Target

        (100%)
	
        Maximum

        (110% of target performance)

	ROAA	40%	[  ]%	[_]%	[_]%
	Efficiency Ratio (non-GAAP)	20%	[_]%	[_]%	[_]%
	Average Delinquencies as % of total loans	20%	[_]%	[_]%	[_]%
	Individual Performance	20%	 	 	 
	 	CEO – Corporate Net Income (millions)	 	$[_]     	$[_]     	$[_]     
	 	CFO – Corporate Net Interest Margin	 	[_]%	[_]%	[_]%
	 	COO – Non-Interest Expenses as a % of Average Assets	 	[_]%	[_]%	[_]%
	 	CRO – Corporate Operating Leverage Ratio	 	[_]%	[_]%	[_]%
	 	STO – Wealth Pre-tax Income as a % of Wealth Total Revenue	 	[_]%	[_]%	[_]%

 

 

 

1
Performance goals are net of incentive payouts; only way to get threshold award is if incentive awards are included. Threshold
has a floor of the prior year’s actual result.

 

     

     

    

 

 

Minimum Performance Trigger

 

For Plan year 2020, the Corporation’s
net income must be at least 50% of goal for that year, which is $[_], or the Plan will not pay out any awards, regardless
of the performance with respect to the award metrics.

 

Acknowledgement

 

By signing below, the undersigned participant
acknowledges the terms of the Executive Pay-for-Performance Plan and his or her award opportunity.

 

	Date:  ____________________, 2020	 	Name:

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