EMPLOYMENT CONTRACT
BETWEEN
THE XXXXXX SAVINGS
BANK
AND
------------------------------------
MEMORANDUM OF AGREEMENT, made and entered into this ----- day of
-------------, 19--, by and between THE XXXXXX SAVINGS BANK
(hereinafter referred to as the "Bank") AND ---------------,
(hereinafter referred to as "Employee"):
WITNESSETH:
WHEREAS, Employee has been employed by the Bank for more
than (____) year(s) and the efforts of said employee have been
of great value in the successful operation of the Bank; and
WHEREAS, the Bank desires, insofar as possible, to insure
that it will retain the benefits of Employee's services until
retirement and as part-time counsel and advisor thereafter; and
NOW, THEREFORE, in consideration of the services already
performed and of the covenants and agreements hereinafter set
forth, and of other good and valuable consideration, the receipt
of which is hereby acknowledged, IT IS HEREBY AGREED, by and
between the parties hereto, as follows:
1. The Bank agrees to retain the services of Employee in
the capacity of ------------, for a period of one (1) year from
the date of ----------, 19-- on each annual anniversary of this
Contract starting on the day of ----------, 19-- it shall be
renewable upon agreement for a new period of one (1) year.
2. Employee hereby accepts such employment by the Bank in
the capacity specified and agrees to devote full-time and best
efforts in carrying out any duties and responsibilities assigned.
3. The Bank agrees to pay Employee and Employee agrees to
accept from the Bank as compensation for the services to be
rendered hereunder a salary at the rate of ---------- ($------)
DOLLARS per annum. This salary shall consist of a currently paid
amount of ---------- ($------) DOLLARS per annum and a deferred
sum in the amount of ---------- ($------) DOLLARS per annum. It
is the intention of the Bank to review the above compensation
annually, and if a consistent record of sound performance is
maintained, and if the economic condition of the Bank warrants
it, then appropriate increases in the annual compensation may be
made, with an allocation to currently paid amounts and deferred
amounts as agreed upon by the parties hereto.
4. Employee shall be entitled to retire from the active
employment of the Bank at age sixty-five (65), the Normal
Retirement Age. It is contemplated, however, that Employee may
continue in the employ of the Bank beyond this time. Full-time
employment may be offered by the Trustees of the Bank on a year-
to-year basis, if circumstances warrant, and if Employee agrees
to such employment. If Employee is in the employment of the Bank
at the date of retirement or if in the part-time employment of
the Bank at the date of retirement, the Bank agrees to pay to
Employee, from the balance of the deferred compensation account
hereinafter explained, a payment due on the first of each month
and paid in one hundred twenty (120) approximately equal
installments. In the event of Employee's death before receiving
the total one hundred twenty (120) payments, the Bank agrees to
continue the payments to such person or persons as Employee may
designate by written instrument filed with the Bank, and if there
be no such written designation in effect at the time of death or
if all named beneficiaries have predeceased Employee, then to
Employee's estate, until the total of the payments made to
Employee, beneficiaries, or Employee's estate, approximately
equal one hundred twenty (120). Employee reserves the right to
change the beneficiaries of this plan at any time by filing a
written instrument of such intent with the Bank. Deferred
compensation earned under this Agreement shall be recorded as a
monthly expense and credited to a liability account described as
Deferred Compensation which will be payable to Employee at age
sixty-five (65), or in the event of Employee's death before age
sixty-five (65), according to the provisions of paragraph 5. The
amounts earned by Employee and recorded in the Deferred
Compensation Account shall be credited with interest at such
dates and rates as comparable depositors accounts are credited by
the Bank during the year, except that at the time of establishing
any monthly payments a fixed rate, based on comparable term
Treasury securities, shall be established. Amounts so earned by
Employee shall not be forfeitable for any reason.
5. If Employee should die before age sixty-five (65) while
an employee of the Bank, the Bank agrees that it shall pay the
deferred payments to designated beneficiaries or estate in one
hundred twenty (120) approximately equal installments as so
provided in Paragraph 4, payments beginning within two (2) months
after Employee's death.
6. In the event that any time before reaching age sixty-
five (65) Employee's employment is terminated with the Bank for
any reason other than permanent disability, the Bank agrees that
when Employee shall reach age sixty-five (65), it will begin
deferred compensation payments as provided in paragraph 4. In the
event that any time before reaching age sixty-five (65) Employee
shall terminate employment with the Bank because of permanent
disability or shall become permanently disabled after terminating
employment with the Bank and before reaching the age of sixty-
five (65), the Bank agrees that it shall begin the deferred
payments beginning within two (2) months after Employee's
permanent disability in the manner provided in paragraph 5.
7. Notwithstanding Paragraphs 4 and 6, the Pension
Administrative Committee (as appointed in the Xxxxxx Savings
Association Pension Plan and Trust Agreement effective October 1,
1959, as amended January 1, 1976, and more particularly as stated
in Article VIII thereof), in its sole discretion, is empowered to
permit payments for said Deferred Compensation to be paid upon
early retirement or termination after the Employee reaches the
age of sixty (60) years.
8. The Bank hereby empowers the Pension Administrative
Committee, in its sole discretion, to negotiate a payment
schedule for said Deferred Compensation of less than one hundred
twenty (120) monthly payments and/or defer monthly payments, as
provided in
paragraphs 4, 6 and 7 above, until no later than January of the
year following retirement. In those cases where the Employee's
Deferred Compensation account under paragraphs 4, 5, 6 and 7 is
less than $25,000.00, the Committee, upon the written request of
an employee, is empowered, in its sole discretion, to pay to the
employee the full amount in a lump sum distribution.
9. Neither Employee nor any person receiving payments
under this contract shall have the right or power to transfer,
assign, anticipate, pledge or mortgage or otherwise encumber in
advance any of the payments to be made to him or to any such
person. Nor shall any interest hereunder of Employee or any such
person be liable for any claims of any creditors.
10. This Agreement supersedes any previous Contract of
employment whether oral or written between Employee and the Bank
and such previous Contract or Contracts, if any there be, are
hereby canceled. This Agreement shall have no effect, however,
upon the rights of Employee under any Pension Plan or Trust to
which the Bank may make contributions, whether now in effect or
hereafter established, nor shall it prevent the Bank from paying
to Employee any bonuses that it may, from time to time, desire to
pay. In addition thereto, the required provisions of the Federal
Home Loan Bank Board Regulations, particularly section 563.39 -1
Employment Contracts, and section (B) Required Provisions, are
made a part hereof and incorporated herein by reference.
IN WITNESS WHEREOF, ------------------------- has hereunto
set his hand and seal and THE XXXXXX SAVINGS BANK has caused this
instrument to be signed by its Trustees and its corporate seal to
be affixed hereunto and attested by its Assistant Secretary or
Secretary, all on the day and year first above written.
THE XXXXXX SAVINGS BANK
Attest:
By: -------------------------- By: --------------------------
Witness:
------------------------------ ------------------ (SEAL)
DESIGNATION OF BENEFICIARY
Name of Employee ------------------------------------------------
Social Security No. ------------------- Date of Birth ---------
Employee's Address ----------------------------------------------
City and State --------------------------------------------------
I hereby designate the following as my beneficiary(ies)
under my Employment Contract with THE XXXXXX SAVINGS BANK dated
---------, 19--, hereby revoking all prior designations, if any,
made by me:
NAME/RELATIONSHIP MAILING ADDRESS
Primary
Beneficiary(ies):
------------------------- -----------------------------------
------------------------- -----------------------------------
------------------------- -----------------------------------
------------------------- -----------------------------------
Contingent
Beneficiary(ies):
------------------------- -----------------------------------
------------------------- -----------------------------------
------------------------- -----------------------------------
------------------------- -----------------------------------
Dated: ---------------, 19--
Witness:
------------------------- -----------------------------------
(Witness should not be (Signature of Employee)
a beneficiary)
