Bonus Plan Description for Scott A. Evans, President and Co-COO of Merchants Bank
This agreement outlines the annual bonus plan for Scott A. Evans, President and Co-Chief Operating Officer of Merchants Bank. Mr. Evans is eligible for a yearly cash bonus up to 20% of his base salary, based on performance in five areas: budget profitability, regulatory examination rating, net charge offs on loans, budgeted loan volumes, and individual goals and training. Each area has specific criteria and maximum bonus percentages. The bonus is awarded only if certain performance thresholds are met in each category.
Exhibit 10.13
Description of Bonus Plan
For
Scott A. Evans
Director of Merchants and President and Co-Chief Operating Officer of Merchants Bank
Scott A. Evans, President and Co-Chief Operating Officer of Merchants Bank, as part of his compensation therefor, is eligible for an annual cash bonus not to exceed an amount equal to twenty percent (20%) of his base salary. This bonus is composed of five parts, with each part having a defined maximum percentage of the overall bonus.
(1) Budget Profitability, 25%: if less than 75% of projected budget, Mr. Evans is not entitled to any bonus compensation under this part. Mr. Evans may receive 20% of the bonus under this part for each 5% of projected budget above 75% (e.g., for 86-90% of projected budget, Mr. Evans may receive 60% of the bonus compensation under this part).
(2) Merchants Bank Regulatory Examination Rating, 25%: if overall rating average is greater than 1.60, Mr. Evans is not entitled to any bonus compensation under this part. Mr. Evans may receive 25% of the bonus under this part for each one-fifth (1/5) of a point Merchants Bank’s rating average is below 1.60 (e.g., for a rating average between 1.01-1.20, Mr. Evans may receive 75% of the bonus compensation under this part).
(3) Net Charge Off on Loans, 20%: if net charge offs on loans is greater than 0.200%, Mr. Evans is not entitled to any bonus compensation under this part. Mr. Evans may receive 25% of the bonus under this part for each 0.025% net charge offs on loans is below 0.200% (e.g., if net charge offs on loans is between 0.125% and 0.101%, Mr. Evans may receive 75% of the bonus under this part).
(4) Budgeted Loan Volumes, 20%: Mr. Evans must meet the budgeted loan volumes, as established for Mr. Evans each year, to receive any compensation under this part.
(5) Individual Goals and Training, 10%: Mr. Evans must meet all goals and complete all training, as established for Mr. Evans each year, to receive any compensation under this part.
