First National Bank of Ottawa & First Ottawa Bancshares, Inc. Joint Director Compensation Policy

Summary

This policy outlines how directors of First National Bank of Ottawa and First Ottawa Bancshares, Inc. are compensated for their service. Directors receive an annual retainer from the bank, payments for attending certain meetings at the holding company, and compensation for monthly board meetings. Payments are made semi-annually, and directors may also be eligible for stock options and other benefits as determined by the board. The policy aims to attract and retain qualified directors by compensating them for their time and contributions.

EX-10.5 2 a05-1966_1ex10d5.htm EX-10.5

Exhibit 10.5

FIRST NATIONAL BANK OF OTTAWA

FIRST OTTAWA BANCSHARES, INC.

JOINT POLICY ON DIRECTOR COMPENSATION

It is the policy of First National Bank of Ottawa and First Ottawa Bancshares, Inc. to attract and retain the highest quality individuals to serve as directors. Those individuals will be required to devote their time, skills, business development efforts, and judgement to serving the long-term needs of our shareholders. We recognize that those directors be compensated for each of those components. Accordingly, we adopt the following schedule of compensation for directors.

ANNUAL RETAINER – Bank	$	6,000.00
ANNUAL RETAINER – Holding Company	None
ANNUAL MEETING OF SHAREHOLDERS – Bank	None
ANNUAL MEETING OF SHAREHOLDERS – Holding Company	$	500.00
ANNUAL ORGANIZATIONAL MEETING – Holding Company	$	500.00
MONTHLY COMMITTEE MEETINGS	None
MONTHLY BOARD MEETINGS (includes 1 excused absence/year)	$	500.00
SPECIAL BOARD MEETINGS	None

Payment schedule will be semi-annual.

Annual retainer will be paid right after annual meeting when directors are elected.

The directors may also be awarded stock options under First Ottawa Bancshares, Inc. 2002 Stock Incentive Plan.

The directors shall also be eligible for each of the benefits and privilege as may be available to them by Board resolution duly adopted.