DeferComp Agreement Chapin State Bank Chapin, Illinois John C. Williams Chapin, Illinois
Exhibit
10.11
(Bank’s
Copy)
Xxxxxx
State Bank
Xxxxxx,
Illinois
Xxxx
X. Xxxxxxxx
Xxxxxx,
Illinois
Date: August
3, 1987
DEFERRED COMPENSATION
AGREEMENT
AGREEMENT
entered into as of the 3rd day
of August, 1987, between the XXXXXX STATE BANK, a domestic corporation having
its principal office if CHAPIN, ILLINOIS, (hereinafter referred to as the
“Bank”) and XXXX X. XXXXXXXX of CHAPIN, ILLINOIS (hereinafter referred to as the
“Director”).
WHEREAS, the Director has
rendered the Bank may years of valuable service and it is the desire of the Bank
to have the benefit of Director’s continued loyalty, service and counsel and
also to assist Director in providing for the contingencies of death and old age
dependency, it is hereby agreed:
1. RETIREMENT BENEFIT -
The Bank will pay the Director $978 per month commencing 30 days after the later
of (a) Director’s 65th
birthday or (b) the 60th
month after the date of this Agreement for a continuous period of 120 months,
for a total of $117,316. In the event that the Director should die
after said payments have commenced but before the expiration of said 120 month
period, the unpaid balance of the payments due will continue to be paid monthly
by the Bank to those beneficiaries at the end of this document.
2. DEATH BENEFIT -
Should the Director die before benefits begin under Paragraph 1 of this
Agreement, the Bank will commence to pay $617 per month for a continuous period
of 120 months for a total of $74,040, beginning one month after the death of
Director, to the named beneficiary at the end of this document, otherwise to the
Executors or Administrators of the Director. The beneficiaries named
hereon may be changed at any time by the Director, by written
amendment. The benefits shall not be payable upon the death of the
Director resulting from suicide, whether sane or insane, within three years
after the signing of the Agreement. The benefits under this paragraph
shall not be payable if Director made material misrepresentations on any
application for insurance which Bank may have obtained.
3. CONDITIONS - Director
agrees that fee of $100 per month shall not be paid as and when services are
rendered for a period of 60 months, but instead shall be paid in the amounts and
at such times as provided herein. The provisions of Paragraph 1 are
further conditional upon services of the Director with the Bank for a period of
5 years from the date of this Agreement. If, however, the Director
fails to serve on the Board for 60 month, for reasons other than by death, then
the Bank, in its sole discretion, shall choose one of the following
options:
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(a)
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Proportionate
Benefit – Director’s benefits beginning under Paragraph 1 and the
beneficiary’s benefits under Paragraph 2 above will be in direct
proportion to the number of months as it relates to 100 percent of 60
months. For example, if the Director serves only 30 months, the
Director will be entitled to $489 or 50 percent of the compensation stated
in Paragraph 1 or the beneficiary will be entitled to $309 or 50 percent
of the compensation stated in Paragraph 2;
or
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(b)
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Payment of Deferred
Fee – Bank, within 90 days of the termination of service by
Director, shall pay the Director a lump sum payment equal to the total
amount of fees deferred pursuant to this Paragraph 3 plus ____ percent per
annum thereon from the date of deferral until so
paid.
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In the
absence of payment of the deferred fee within 90 days of the termination of
service, the Bank will be deemed to have elected to pay the Director a
proportionate benefit as set forth in this Paragraph 3.
4. ACCELERATION OF BENEFIT
PAYMENTS - The Bank hereby reserves the right to accelerate the payment
of any of those sums specified in Paragraph 1, 2 and 3 above without the consent
of the Director or the Director’s estate, beneficiaries, or any other person
claiming through or under Director.
5. ASSIGNABILITY -
Except to the extent that this provision may be contrary to law, no assignment,
pledge, collateralization, or attachment of any of the benefits under this
Agreement shall be valid or recognized by the Bank.
6. EMPLOYMENT RIGHTS -
This Agreement creates no rights in the Director to continue on the Board of the
Corporation for any specific length of time, nor does it create any other rights
in the Director or obligations on the part of the Bank, except those set forth
in this Agreement.
7. LAW GOVERNING - This
Agreement shall be governed by the laws of the State of Illinois.
8. RIGHTS OF THE
DIRECTOR - The Director and/or any beneficiary under this Agreement shall
have rights only as an unsecured creditor of the Bank.
9. DIRECTOR’S INTEREST IN
ASSETS - The Director and/or any beneficiary of this Agreement shall not
have any interest in, claims against or rights to any insurance policy or any
other asset the Bank may acquire in connection with any liabilities the Bank may
assume under this Agreement, except those rights expressed in the policy or
title of any asset. Benefits under the policy or asset will not be
held in trust for the benefit of the Director or beneficiary. The
Bank will not hold the policy or asset as collateral to secure the Bank’s
liability under this Agreement, and such policy or asset will be considered an
unrestricted general asset of the Bank.
THIS
AGREEMENT is solely between the Bank and the Director. Further, the
Director and his/her beneficiaries shall have recourse only against the Bank for
enforcement. However, it shall be binding upon the beneficiaries,
heirs, executors and administrators of the Director and upon the successors and
assigns of the Bank. Amendments to this Agreement may only be made in
writing by both parties.
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EXECUTED
in duplicate as of the day first above written.
| XXXXXX STATE BANK | |||
| (SEAL) | By: | /s/ Xxxx Xxxx, Director | |
| Title | |||
| /s/ Xxxx X. Xxxxxxxx | |||
| Xxxx X. Xxxxxxxx, Director | |||
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