AMENDED AND RESTATED
COMMUNITY FIRST BANK AND TRUST
MANAGEMENT INCENTIVE COMPENSATION PLAN
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A.
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To
maximize the Bank’s long term profitability and the return on
shareholders equity.
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B.
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To
promote teamwork among members of management and to encourage
superior individual performance.
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C.
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To
provide management the ability to earn incentive compensation
proportional to the Bank’s success and their individual
contributions.
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All senior
officers of the Bank may be eligible for consideration as plan
participants. Actual participation will be recommended by Senior
Bank Management and approved by the Board of Directors. To be
recommended an individual participant must:
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1.
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be
performing in a fully satisfactory manner; and
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2.
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hold a position appropriate for the
use of incentive compensation.
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The plan will
have three groups of participants based upon level of management
responsibilities.
The Management
Incentive Compensation Plan has two components:
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1.
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The
Bank and/or unit performance measurement; and
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2.
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The
individual measurement.
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Individual
awards are expressed as a percentage of each individual’s
base salary as of December 31 of the plan year, and are
payable by virtue of Bank and/or Branch performance.
If approved for
participation, an employee hired during the plan year will be
eligible to receive partial incentive compensation based upon the
base salary at time of eligibility and the period remaining in the
plan year. No payment will be made for participation of less than
two months of the plan year.
A.
Ineligibility During Plan Period
An individual
participant who becomes ineligible during the plan year for any
reason other than normal retirement as defined in the Bank’s
retirement plan, death or disability, will cease to participate in
the plan and will not receive any incentive payment for the period
of eligibility.
B.
Calculation of Performance Targets
All performance
targets will be calculated on an after bonus basis.
C.
Distribution of Awards
Payments will
be made upon recommendation by Senior Bank Management and approval
of the Board of Directors and shall occur between January 1 and
March 15 following the completion of the management incentive
compensation year. Any undistributed funds will revert to the Bank
and the fund will terminate.
D.
Termination of Employment
Except as
specifically provided below, to receive payment an employee must be
an active employee at the end of the management incentive
compensation year.
A participant
in the plan who has been employed during the entire plan year, but
who is retired, as defined in the Bank’s retirement plan, at
the time the awards are paid, will be eligible for full management
incentive compensation payment. Employees retiring prior to the end
of the plan year will be eligible for pro-rata participation based
upon Bank and/or Branch performance for the plan year, the
employee’s individual performance, and the time of the
employee’s active participation in the plan, provided such
participation is at least two months.
F.
Leave of Absence or Disability
A participant
in the plan who becomes disabled, as defined in the Bank’s
long-term disability plan, or who, for other reasons, must take a
leave of absence during the plan year may, at the discretion of
Bank management, be eligible to receive partial management
incentive compensation. Such award, if approved, will be based upon
Bank and/or Branch performance for the plan year, the
employee’s individual performance, and the time of the
employee’s ac
