Third Change. The second sentence of Section 10(c) is hereby deleted in its entirety and replaced with the following: “For purposes of this Agreement, “Disability” means the Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.”
Third Change. Section 11 of the Agreement amended by deleting the first three sentences thereof and replacing them with the following new language: “If the payments and benefits provided pursuant to Section 10 of this Agreement, either alone or together with other payments and benefits the Employee has the right to receive from the Bank, would constitute a “parachute payment” under Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), the payments and benefits pursuant to Section 10 shall be reduced by the amount, if any, which is the minimum necessary to result in no portion of the payments and benefits under Section 10 being non-deductible to the Bank pursuant to Section 280G of the Code and subject to the excise tax imposed under Section 4999 of the Code. If such a reduction is necessary and none of the payments or benefits constitutes a “deferral of compensation” within the meaning of and subject to Section 409A of the Code, then the reduction shall occur in a manner the Employee elects in writing prior to the date of payment. If the payments or benefits constitute a deferral of compensation or if the Employee fails to make an election pursuant to the preceding sentence, then the payments and/or benefits to be reduced will be determined in a manner which has the least economic cost to the Employee. The Bank’s independent public accountants will determine any reduction in the payments and benefits to be made pursuant to Section 10; the Bank will pay for the accountant’s opinion. If the Bank and/or the Employee do not agree with the accountant’s opinion, the Bank will pay to the Employee the maximum amount of payments and benefits pursuant to Section 10 (as selected by the Employee if the payments and benefits do not constitute a deferral of compensation) that the opinion indicates have a high probability of not causing any of the payments and benefits to be non-deductible to the Bank and subject to the excise tax imposed under Section 4999 of the Code.”
Third Change. Section 4.2 of the Adoption Agreement is amended effective January 1, 2016 to update the Plan Name as follows:
Third Change. Section 5(e) of the Agreement is hereby amended by deleting the reference to "thirty-six (36)" and replacing with "sixty (60)".
Third Change. Section 10(a) of the Agreement is hereby amended by deleting the reference to "Section 7" therein and replacing it with a reference to "Section 4". AMERICAN SAVINGS BANK ---------------------- For the Entire Board of Directors Date: --------------
Third Change. Section 21.4 of the Adoption Agreement is amended to update the vesting service crediting method from the Hours of Service method to the Elapsed time method as follows:
Third Change. Section 2 is hereby amended by adding the following sentence to the end thereof: “Notwithstanding anything in this Section 2 to the contrary, unless otherwise mutually agreed by the parties in writing, no annual extensions of the term of the Agreement shall occur after the date Executive attains age 70.”
Third Change. Section 3(a) is hereby amended by substituting “$270,000” for “$197,600” therein and Section 3(b) is hereby amended by deleting the third sentence thereof (referring to the two percent (2%) of pre-tax, pre-incentive earnings incentive bonus).
Third Change. The second paragraph of Section 6 of the Agreement shall be amended in its entirety as follows: “Except as otherwise provided in Sections 1, 2 or 3 as applicable, in the event that, on or before the occurrence of an Employee’s Retirement Date or Early Retirement Date, a “Termination of Protected Employment” occurs following a Change in Control (as defined herein), then the Employee shall be deemed to have retired as of his Early Retirement Date and the Employee may elect to receive the present value of his accrued benefit in a lump sum or elect to receive his benefits in accordance with Section 1 of this Agreement. Said election must be made in accordance with Section 13 of this Agreement. An Employee will be deemed to have a termination of employment for purposes of determining the timing of any payments under this Agreement only upon a “separation from service” within the meaning of Section 409A of the Code.” Except as expressly provided herein, the terms and conditions of the Agreement shall remain in full force and effect and shall be binding on the parties hereto until the expiration of the term of the Agreement. Effectiveness of this Amendment to the Agreement shall be conditioned upon approval by the Board of Directors of the Bank (or appropriate committee thereof), and this Amendment to the Supplemental Income Plan Agreement shall become effective on the later of date of such approval and execution by both parties hereto.
Third Change. Section 5.2 of the Adoption Agreement, Compensation for a Plan Year, is hereby deleted in its entirety and shall hereafter read as follows: Compensation for the Plan Year will mean:
