Document:

exv10w3

Exhibit 10.3

Western Alliance Bancorp

Bank of Nevada

Annual Bonus Plan 2008

Objective: The purpose of this Annual Bonus Plan is to provide incentives and rewards for superior
performance in order to attract and retain highly qualified team members and to maximize financial
performance so that Western Alliance Bancorp (WAL) will meet and exceed its goals.

Eligibility: Selected team members who are employed by WAL as of January 1st of the Plan
Year. Bonuses for team members hired after January 1st but on or before September
30th of a Plan Year will be prorated. Team members hired after September 30th
may be eligible the following Plan Year.

Effective Date: January 1, 2008. This Plan supersedes all others before it.

Frequency of Awards: Awards will be paid annually within 90 days after the end of the Plan Year.
Participants must be employed at the payment date to receive any bonus compensation under this
Plan.

Plan Administrator: WAL’s Incentive Compensation Committee will administer the Plan. This Committee
is made up of WAL’s Chief Executive Officer, Chief Financial Officer, and Chief Administrative
Officer.

How the Plan Works: Subject to the terms of the Plan, bonus calculations will be based on the
following factors: 1) WAL’s EPS growth, 2) NET EARNINGS growth of individual bank, 3) Organic LOAN
growth, 4) Organic Customer Funds (includes 100% credit for repo’s) growth, and 5) QUALITY control
(Regulatory exams, Internal Audits, Credit Quality).

A Target bonus percentage expressed as a percent of Base Salary will be established for each
Participant. A payout at the maximum level requires outstanding performance for the year in all
components of the Plan.

Base Salary is defined as the Participant’s actual salary earned for the year which includes pay
for regular hours worked plus paid holiday, sick, and vacation hours; earnings received while on a
Leave of Absence are not included in this calculation.

	A.	 	WAL’s EPS Growth Performance is weighted 10% at the Bank level
	 
	 	 	This portion of the Plan measures the Corporation’s percent growth in EPS.
	 
	 	 	Adjustments maybe made to this calculation to account for miscellaneous gains or losses. For
example, restructuring charges will be excluded and allocations will be normalized. The
Incentive Compensation Committee may approve other adjustments.

	 	1.	 	As soon as possible after the end of the Plan Year, the Finance Division will
calculate WAL’s EPS.
	 
	 	2.	 	EPS will be calculated including acquisitions.

January 1, 2008 (as approved by the WAL Compensation Committee April 21, 2008)

 

 

WAL

Annual Bonus Plan

	 	3.	 	The WAL EPS portion of the bonus will be calculated based on hitting the following EPS
targets listed below:

Same targets for all affiliates

	 	 	 
	Growth in	 	Percent of Target
	WAL EPS	 	Bonus Paid
	Performance	 	(WAL Portion)
	Less than $1.15
	 	No Bonus paid
	Between $1.15 to $1.30
	 	50% to 75%
	Between $1.30 to $1.44
	 	75% to 100%
	Between $1.44 to 1.59
	 	100% to 125%

	B.	 	Net Income Growth Performance is weighted 25%
	 
	 	 	This portion of the Plan measures the affiliate’s percent growth in Net Income. Net Income
is defined as the Bank’s income after taxes:
	 
	 	 	(Net Interest Income + Non-interest Income) – (Non-interest Expense – Taxes) = Net Income
	 
	 	 	Adjustments will be made to this calculation to account for miscellaneous gains or losses.
The Incentive Compensation Committee may approve other adjustments.

	 	1.	 	As soon as possible after the end of the Plan Year, the Finance Division will
calculate the Bank’s Net Income.
	 
	 	2.	 	The following chart will determine level of payout for Net Income Growth.

	 	 	 
	Growth in	 	Percent of Target
	Bank Net Income Performance	 	Bonus Paid
	BON	 	(Bank Portion)
	Less than $31.6MM
	 	No Bonus paid
	Between $31.6MM to $35.1MM
	 	50% to 75%
	Between $35.1MM to $38.7MM
	 	75% to 100%
	Between $38.7MM to $42.3MM
	 	100% to 125%

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WAL

Annual Bonus Plan

	C.	 	Loan and Customer Funds (includes 100% credit for repo’s) Growth Performance is weighted
10% (Loan) and 25% (Customer Funds) for a total of 35%
	 
	 	 	This portion of the bonus will be calculated based on Bank performance in Loan Growth and in
Customer Funds Growth.
	 
	 	 	Senior Management will agree on final budget projections that will be translated into
financial performance goals.
	 
	 	 	Loans and Customer Funds Growth

	 	1.	 	In setting the Budget for each Bank, Loan and Customer Funds Growth Goals will
be established.
	 
	 	2.	 	As soon as possible after the end of the Plan Year, the Finance Department will
measure the Actual Loan and Customer Funds results for the Bank. Adjustments may be
made to these calculations to account for staff transfers, windfalls, etc.
	 
	 	3.	 	Following are the definitions/calculations on which this portion of the bonus
will be based:

	 	a.	 	A calculation will be made for the Bank Growth in Total Loans (10% of
target) and Customer Funds (25% of target).
	 
	 	b.	 	Calculation: The percent of Target bonus paid for Loan and Customer
Funds Growth will each be calculated based on the following schedule:
	 
	 	c.	 	Both loans and customer funds will be calculated on organic growth and
will not include increases in loans or customer funds acquired by acquisition.

Chart for Organic Loan Growth 10% of target

	 	 	 
	Bank Performance	 	Percent of Target
	Loan Growth	 	Bonus Paid
	BON	 	(Loans)
	Less than $50MM
	 	No Bonus paid
	Between $50MM to $100MM
	 	25% to 50%
	Between $100MM to $150MM
	 	50% to 75%
	Between $150MM to $200MM
	 	75% to 100%
	Between $200MM to $300MM
	 	100% to 125%

Page 3

 

WAL

Annual Bonus Plan

Chart for Organic Customer Funds Growth 25% of target

	 	 	 
	Bank Performance	 	Percent of Target
	Customer Funds Growth	 	Paid
	BON	 	(Customer Funds)
	Less than $50MM
	 	No Bonus paid
	Between $50MM to 100MM
	 	25% to 50%
	Between $100MM to $150MM
	 	50% to 75%
	Between $150MM to $200MM
	 	75% to 100%
	Between $200MM to $300MM
	 	100% to 125%

	 	4.	 	In order to receive more than 100% of the Loan and Customer Funds growth portion of
the bonus:

	 	a.	 	Bank must achieve a growth of at least $200MM+ in Loans and $200MM+ in
Customer Funds for either to pay more than 100% for the goal being measured, and
	 
	 	b.	 	Participant must meet individual goals in this respective area.

	D.	 	Quality Control is weighted 30%

	 	1.	 	Quality control refers to the effectiveness of the Corporation’s regulatory
examines, internal audits and credit quality.
	 
	 	2.	 	Quality Control will be measured in the following three areas:

	 	a.	 	All Regulatory Examines (10%) must be level 2 or better
	 
	 	b.	 	Internal Audits (10%) must be at least passing
	 
	 	c.	 	Credit Quality (10%) will be measured in the following two areas

	 	i.	 	Non-performing assets will not exceed .75%
of average total loans 
	 
	 	ii.	 	Net charge-offs will not exceed .65% of
average total loans

	 	3.	 	The maximum pay out on this quality control is 100%

	E.	 	Other Calculation Provisions

	 	1.	 	Participants must meet individual loan and customer funds production goals, if
assigned, or their total bonus may be reduced or eliminated.
	 
	 	2.	 	Except as otherwise specifically approved and directed by the
WAL Compensation Committee, and subject to all legal requirements, the aggregate total of the bonuses paid to Participants in each Bank cannot exceed 10%
of the Net Income for that Bank. If it does, the payments will be pro-

Page 4

 

WAL

Annual Bonus Plan

	 	 	 	rated and
re-calculated as a percent of the actual Net Income of the Bank; however, all participants
below the level of AVP will be eligible for target (actual bank performance) pay outs prior
to proration. The balance remaining after payment to participants below the level of AVP
will then be prorated according to the remaining pool and distributed to AVP and above.

	 	3.	 	A participants bonus may be reduced or eliminated if in the discretion of Management,
i) the department’s loan review and/or audits are rated below satisfactory and/or not
adhering to safety, soundness, and approved operational procedures, ii) any participant,
their branch or department earns a rating of less than “Satisfactory,” iii) the
department’s credit underwriting and/or portfolio management practices are rated below
“Satisfactory” and/or not adhering to safety and soundness, or iv) the participant, their
branch or department has not contributed adequately to the financial results attributed to
them.
	 
	 	4.	 	With the approval of the Incentive Compensation Committee, a participant’s bonus may be
increased over his/her assigned Target bonus percentage in order to recognize extraordinary
performance. The Division Executive will provide written documentation to the Incentive
Compensation Committee to support the recommendation.

	F.	 	Other Administrative Provisions:

	 	1.	 	This is a discretionary bonus plan and, in order to receive payment of any bonus under this Plan, the participant must be employed by the Bank at the time payment
is made, which will be no later than March 15th.
	 
	 	2.	 	Designation as a Participant in the Plan does not create a contract of employment for any
specified time, nor shall such act to alter or amend the Bank’s “at-will” policy of
employment.
	 
	 	3.	 	If any Participant’s performance is rated as falling below job expectations or as less
than satisfactory at any time during the Plan Year, or if the Participant is subject to any
written disciplinary action, the bonus payment will be reduced or eliminated.
	 
	 	4.	 	Participants who transfer during the year will participate in the Plan applicable to
the department they are in at year-end. If extenuating circumstances arise, exceptions to
this policy will be considered on a case by case basis.
	 
	 	5.	 	A change in officer title occurring during the year will not change the target bonus
percentage.
	 
	 	6.	 	Awards will be paid through the normal payroll process to participants. All awards will
be subject to applicable taxes. Awards do not constitute commissions or additional wages,
and Participants have no vested interests in the benefits of the Plan, except as expressly
provided for herein.
	 
	 	7.	 	Awards under this Plan will be used in calculating covered earnings for benefit
purposes for the 401(k) and Life Insurance Plans but not for Long Term Disability
Insurance.
	 
	 	8.	 	Timely and accurate completion of all business plans, reports, budgets and other
planning exercises is required for payment under the Plan.

Page 5

 

WAL

Annual Bonus Plan

	 	9.	 	Acknowledgment from the HR Department that offices and officers have conformed to bank
policy in timeliness of annual reviews, controllable turnover, and all other areas of HR
administration is required for payment under this Plan.
	 
	 	10.	 	Performance measurements and statistics will be based on calculations completed by the
Finance Division of WAL. Any questions about the results or the bonus calculations must be
submitted to the Plan Administrator within 30 days after the calculations have been
completed and published, after which time no inquiries will be considered.
	 
	 	11.	 	Management retains the right in its sole discretion to adjust bonuses to reflect
“windfall” changes (i.e., transfer of unusually large accounts or loans between offices,
etc.).
	 
	 	12.	 	This Plan is governed and interpreted by the Plan Administrator, whose decisions shall
be final. This is a discretionary program and the Plan Administrator or the Board of
Directors of WAL reserves the right to terminate or alter this bonus program at any time.
	 
	 	13.	 	Participants are eligible to participate in only one annual bonus plan (could also be
paid out quarterly), and Management has the discretion to assign any team member to the
particular plan it deems appropriate.
	 
	 	14.	 	The intent of Bank Management is to fairly reward team members for adding value to the
Bank. If any adjustments need to be made to allow this Plan to accomplish its purpose, the
Incentive Compensation Committee in its sole discretion can make those adjustments.

Sample Calculation:

1. WAL EPS Performance is weighted 10% at the Bank level

	 	 	 	 	 
	EPS Performance	 	WAL EPS
	Year-end WAL EPS
	 	$	1.30	 
	 
	 	 	 	 
	% of EPS Target Bonus Paid
	 	 	75	%

See table on page 2

2. Net Income Growth Performance is weighted 25% at the Bank level

	 	 	 	 	 
	Net Income	 	BON
	Year-end Net Income Growth
	 	$31.6MM
	 
	 	 	 	 
	% of Net Income Target Bonus Paid
	 	 	50	%

See table on p. 2

3. Organic Loan Growth Performance is weighted 10% at the Bank level

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WAL

Annual Bonus Plan

	 	 	 	 	 
	Loan Growth	 	BON
	Loan Growth
	 	$200MM
	 
	 	 	 	 
	% of Loan Growth Target Paid
	 	 	100	%

See table page 3

4. Organic Customer Funds Growth Performance is weighted 25% at the Bank level

	 	 	 	 	 
	Customer Funds Growth	 	BON
	Customer Funds Growth
	 	$100MM
	 
	 	 	 	 
	% of Customer Funds Growth Target Paid
	 	 	50	%

See table page 3

5. Quality Control factors are weighted 30% at the Bank level with 10% weighting

	 	•	 	Regulatory Examines (level 2 or better achieved)
	 
	 	•	 	Internal Audits (passing grade on all internal audits)
	 
	 	•	 	Credit Quality

	 	o	 	Non-performing assets did not exceed .75% of average total loans
	 
	 	o	 	Net charge-offs did not exceed .65% of average total loans

	 	 	Passed at the 100% level for example purposes

WAL Annual Bonus Payment

Participant has a base salary of $60,000

Target Bonus of 8%

Target Bonus — $4,800.00

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EPS	 	 	NI	 	 	Loan	 	 	Customer Funds	 	 	Quality	 
	$	4,800	 	 	$	4,800	 	 	$	4,800	 	 	$	4,800	 	 	$	4,800.	 
	X	 10	%	 	X	 25	%	 	X	 10	%	 	X	 25	%	 	X	30	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$	480	 	 	$	1,200	 	 	$	480	 	 	$	1,200	 	 	$	1,440	 
	X	 75	%	 	X	 50	%	 	X	 100	%	 	X	 50	%	 	X	 100	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$	360	 	 	$	600	 	 	$	480	 	 	$	600	 	 	$	1,440	 

TOTAL PAYOUT IS $360.00+600.00+480.00+600.00+1,440.00 = $3,480.00

Page 7exv10w4

Exhibit 10.4

Western Alliance Bancorp

Bank of Nevada

Annual Bonus Plan 2009

Objective: The purpose of this Annual Bonus Plan is to provide incentives and rewards for superior
performance in order to attract and retain highly qualified team members and to maximize financial
performance so that Western Alliance Bancorp (WAL) will meet and exceed its goals.

Eligibility: Selected team members who are employed by WAL as of January 1st of the Plan
Year. Bonuses for team members hired after January 1st but on or before September
30th of a Plan Year will be prorated. Team members hired after September 30th
may be eligible the following Plan Year.

Effective Date: January 1, 2009. This Plan supersedes all others before it.

Frequency of Awards: Awards will be paid annually within 90 days after the end of the Plan Year.
Participants must be employed at the payment date to receive any bonus compensation under this
Plan.

Plan Administrator: WAL’s Incentive Compensation Committee will administer the Plan. This Committee
is made up of WAL’s Chief Executive Officer, Chief Financial Officer, and Chief Administrative
Officer.

How the Plan Works: Subject to the terms of the Plan, bonus calculations will be based on the
following factors: 1) WAL’s EPS growth, 2) NET EARNINGS growth of individual bank,
3) Organic Deposit growth, and 4) QUALITY control (Regulatory exams, Internal Audits, Credit
Quality). The focus on growing and increasing deposits will allow the Bank to continue making
loans.

A Target bonus percentage expressed as a percent of Base Salary will be established for each
Participant. A payout at the maximum level requires outstanding performance for the year in all
components of the Plan.

Base Salary is defined as the Participant’s actual salary earned for the year which includes pay
for regular hours worked plus paid holiday, sick, and vacation hours; earnings received while on a
Leave of Absence are not included in this calculation.

A. WAL’s EPS Performance is weighted 10% at the Bank level

This portion of the Plan measures the Corporations performance in EPS.

Adjustments maybe made to this calculation to account for miscellaneous gains or losses. For
example, restructuring charges will be excluded and allocations will be normalized. The
Incentive Compensation Committee may approve other adjustments.

	 	1.	 	As soon as possible after the end of the Plan Year, the Finance Division will
calculate WAL’s EPS.
	 
	 	2.	 	EPS will be calculated including acquisitions.
	 
	 	3.	 	The WAL EPS portion of the bonus will be calculated based on hitting the following EPS
targets listed below:

January 1,
2009 (as approved by the WAL Compensation Committee January 19, 2009)

 

 

WAL

Annual Bonus Plan

	 	 	Same targets for all affiliates

	 	 	 	 	 
	Growth in	 	Percent of Target
	WAL EPS	 	Bonus Paid
	Performance	 	(WAL Portion)
	Less than $.20
	 	No Bonus paid
	Between $.20 to $.25
	 	50% to 75%
	Between $.25 to $.30
	 	75% to 100%
	Between $.30 to $.40
	 	100% to 125%
	Between $.40 to $.60
	 	125% to 150%

	B.	 	Net Income Performance is weighted 25%

This portion of the Plan measures the affiliate’s performance in Net Income. Net Income is
defined as the Bank’s income after taxes:

(Net Interest Income + Non-interest Income) – (Non-interest Expense – Taxes) = Net Income

Adjustments will be made to this calculation to account for miscellaneous gains or losses.
The Incentive Compensation Committee may approve other adjustments.

	 	1.	 	As soon as possible after the end of the Plan Year, the Finance Division will
calculate the Bank’s Net Income.
	 
	 	2.	 	The following chart will determine level of payout for Net Income Growth.

	 	 	 	 	 
	Growth in	 	Percent of Target
	Bank Net Income Performance	 	Bonus Paid
	BON	 	(Bank Portion)
	Less than $15.0MM
	 	No Bonus paid
	Between $15.0MM to $17.0MM
	 	50% to 75%
	Between $17.0MM to $20.0MM
	 	75% to 100%
	Between $20.0MM to $25.0MM
	 	100% to 125%
	Between $25.0MM to $30.0MM
	 	125% to 150%

Page 2

 

WAL

Annual Bonus Plan

	C.	 	Organic Deposit Growth Performance is weighted 35%

This portion of the bonus will be calculated based on Bank performance in Organic Deposit
Growth.

Senior Management will agree on final budget projections that will be translated into
financial performance goals.

Organic Deposit Growth

	 	1.	 	In setting the Budget for each Bank, Organic Deposit Growth Goals will be
established.
	 
	 	2.	 	As soon as possible after the end of the Plan Year, the Finance Department will
measure the Actual Organic Deposit results for the Bank. Adjustments may be made to
these calculations to account for staff transfers, windfalls, etc.
	 
	 	3.	 	Following are the definitions/calculations on which this portion of the bonus
will be based:

	 	a.	 	A calculation will be made for the Bank Growth in Organic Deposits (35%
of target).
	 
	 	b.	 	Calculation: The percent of Target bonus paid for Organic Deposit
Growth will be calculated based on the following schedule:
	 
	 	c.	 	Organic Deposits will be calculated on organic growth and will not
include increases in deposits acquired by acquisition.

Organic Deposit Growth 35% of target

	 	 	 
	Bank Performance	 	Percent of Target
	Organic Deposit Growth	 	Paid
	BON	 	(Organic Deposits)
	Less than $100MM

	 	No Bonus paid
	Between $100MM to 150MM

	 	50% to 75%
	Between $150MM to $200MM

	 	75% to 100%
	Between $200MM to $300MM

	 	100% to 125%
	Between $300MM to $450MM

	 	125% to 150%

	4.	 	In order to receive more than 100% of the Organic Deposit growth portion of the bonus:

	 	a.	 	Bank must achieve a growth of at least $200MM+ in Organic Deposits to
pay more than 100% for the goal being measured, and

Page 3

 

WAL

Annual Bonus Plan

	 	b.	 	Participant must meet individual goals in this respective area.

	D.	 	Quality Control is weighted 30%

	 	1.	 	Quality control refers to the effectiveness of the Corporation’s regulatory
examinations, internal audits and credit quality.
	 
	 	2.	 	Quality Control will be measured in the following three areas:

	 	a.	 	All Regulatory Examines (10%) must be level 2 or better
(pass/fail)
	 
	 	b.	 	Internal Audits (10%) must be at least passing (pass/fail)

	 
	 	c.	 	Credit Quality (10%) will be measured in the following two areas

	 	i.	 	Non-performing assets (5%) less than 1% of
average total loans (pass/fail)
	 
	 	ii.	 	Net charge-offs (5%) less than .65% of
average total loans (pass/fail)

	 	3.	 	The maximum pay out on this quality control is 100%

	E.	 	Other Calculation Provisions

	 	1.	 	Participants must meet individual organic deposit production goals, if assigned, or
their total bonus may be reduced or eliminated.
	 
	 	2.	 	Except as otherwise specifically approved and directed by the WAL Compensation Committee, and subject to all legal requirements, the aggregate total of the bonuses paid to Participants in each Bank cannot exceed
12.5% of the Net Income for that Bank. If it does, the payments will be pro-rated and
re-calculated as a percent of the actual Net Income of the Bank; however, all participants
below the level of AVP will be eligible for target (actual bank performance) pay outs prior
to proration. The balance remaining after payment to participants below the level of AVP
will then be prorated according to the remaining pool and distributed to AVP and above.
	 
	 	3.	 	A participants bonus may be reduced or eliminated if in the discretion of Management,
i) the department’s loan review and/or audits are rated below satisfactory and/or not
adhering to safety, soundness, and approved operational procedures, ii) any participant,
their branch or department earns a rating of less than “Satisfactory,” iii) the
department’s credit underwriting and/or portfolio management practices are rated below
“Satisfactory” and/or not adhering to safety and soundness, or iv) the participant, their
branch or department has not contributed adequately to the financial results attributed to
them.
	 
	 	4.	 	With the approval of the Incentive Compensation Committee, a participant’s bonus may be
increased over his/her assigned Target bonus percentage in order to recognize extraordinary
performance. The Division Executive will provide written documentation to the Incentive
Compensation Committee to support the recommendation.

Page 4

 

WAL

Annual Bonus Plan

	F.	 	Other Administrative Provisions:

	 	1.	 	This is a discretionary bonus plan and, in order to receive payment of
any bonus under this Plan, the participant must be employed by the Bank at the time payment
is made, which will be no later than March 15th.
	 
	 	2.	 	Designation as a Participant in the Plan does not create a contract of employment for
any specified time, nor shall such act to alter or amend the Bank’s “at-will” policy of
employment.
	 
	 	3.	 	If any Participant’s performance is rated as falling below job expectations or as less
than satisfactory at any time during the Plan Year, or if the Participant is subject to any
written disciplinary action, the bonus payment will be reduced or eliminated.
	 
	 	4.	 	Participants who transfer during the year will participate in the Plan applicable to
the department they are in at year-end. If extenuating circumstances arise, exceptions to
this policy will be considered on a case by case basis.
	 
	 	5.	 	A change in officer title occurring during the year will not change the target bonus
percentage.
	 
	 	6.	 	Awards will be paid through the normal payroll process to participants. All awards will
be subject to applicable taxes. Awards do not constitute commissions or additional wages,
and Participants have no vested interests in the benefits of the Plan, except as expressly
provided for herein.
	 
	 	7.	 	Awards under this Plan will be used in calculating covered earnings for benefit
purposes for the 401(k) and Life Insurance Plans but not for Long Term Disability
Insurance.
	 
	 	8.	 	Timely and accurate completion of all business plans, reports, budgets and other
planning exercises is required for payment under the Plan.
	 
	 	9.	 	Acknowledgment from the HR Department that offices and officers have conformed to bank
policy in timeliness of annual reviews, controllable turnover, and all other areas of HR
administration is required for payment under this Plan.
	 
	 	10.	 	Performance measurements and statistics will be based on calculations completed by the
Finance Division of WAL. Any questions about the results or the bonus calculations must be
submitted to the Plan Administrator within 30 days after the calculations have been
completed and published, after which time no inquiries will be considered.
	 
	 	11.	 	Management retains the right in its sole discretion to adjust bonuses to reflect
“windfall” changes (i.e., transfer of unusually large accounts or loans between offices,
etc.).
	 
	 	12.	 	This Plan is governed and interpreted by the Plan Administrator, whose decisions shall
be final. This is a discretionary program and the Plan Administrator or the Board of
Directors of WAL reserves the right to terminate or alter this bonus program at any time.

Page 5

 

WAL

Annual Bonus Plan

	 	13.	 	Participants are eligible to participate in only one annual bonus plan (could also be
paid out quarterly), and Management has the discretion to assign any team member to the
particular plan it deems appropriate.
	 
	 	14.	 	The intent of Bank Management is to fairly reward team members for adding value to the
Bank. If any adjustments need to be made to allow this Plan to accomplish its purpose, the
Incentive Compensation Committee in its sole discretion can make those adjustments.

Sample Calculation:

	1.	 	WAL EPS Performance is weighted 10% at the Bank level

	 	 	 	 	 
	EPS Performance	 	WAL EPS
	Year-end WAL EPS
	 	$	.30	 
	 
	% of EPS Target Bonus Paid
	 	 	100	%

See table on page 2

	2.	 	Net Income Growth Performance is weighted 25% at the Bank level

	 	 	 	 	 
	Net Income	 	BON
	Year-end Net Income Growth
	 	$20.0MM
	 
	% of Net Income Target Bonus Paid
	 	 	100	%

See table on p. 2

	4.	 	Organic Deposit Growth Performance is weighted 35% at the Bank level

	 	 	 	 	 
	Organic Deposit Growth	 	BON
	Organic Deposit Growth
	 	$300MM
	 
	% of Organic Deposit Growth Target Paid
	 	 	125	%

See table page 3

	5.	 	Quality Control factors are weighted 30% at the Bank

	 	•	 	Regulatory Examines (10%) (level 2 or better achieved)
	 
	 	•	 	Internal Audits (10%) (passing grade on all internal audits)
	 
	 	•	 	Credit Quality

	 	o	 	Non-performing assets(5%) less than 1% of average total loans
	 
	 	o	 	Net charge-offs less than .65% of average total loans

	 	 	Passed at the 100% level for example purposes

Page 6

 

WAL

Annual Bonus Plan

WAL Annual Bonus Payment

Participant has a base salary of $60,000

Target Bonus of 8%

Target Bonus — $4,800.00

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	EPS	 	 	NI	 	 	Organic Deposits	 	 	Quality Control	 
	 
	 	$	4,800	 	 	$	4,800	 	 	$	4,800	 	 	$	4,800.	 
	 
	 	X	    10	%	 	X	     25	%	 	X	    35	%	 	X	     30	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	$	480	 	 	$	1,200	 	 	$	1,680	 	 	$	1,440	 
	 
	 	X	   100	%	 	X	  100	%	 	X	  125	%	 	X	  100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	$	480	 	 	$	1,200	 	 	$	2,100	 	 	$	1,440	 

TOTAL PAYOUT IS $480.00+1,200.00+2,100.00+1,440.00 = $5,220.00

Page 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}]]