DEFERRED COMPENSATION
AGREEMENT BETWEEN
LOGANSPORT SAVINGS BANK, FSB
AND
XXXXX X. XXXXXXXXX
THIS AGREEMENT, dated and effective as of April 12, 2000, although executed
and delivered on the date set forth immediately following Article V hereof, by
and between Logansport Savings Bank, FSB (the "Bank") and Xxxxx X. Xxxxxxxxx
(the "Employee"),
W I T N E S S E T H:
WHEREAS, the Employee is now serving as President of the Bank; and
WHEREAS, the Bank desires to have the benefit of the Employee's continued
loyalty, service and leadership until his retirement; and
WHEREAS, the Bank desires to provide the Employee with the supplemental
retirement benefit, to be paid upon his retirement in order to induce the
Employee to remain with the Bank and to devote his highest skill and energy to
the discharge of his employment duties; and
WHEREAS, the parties desire to incorporate their entire agreement in this
writing;
NOW, THEREFORE, in consideration of the premises, the mutual covenants
herein contained and in further consideration of each act done pursuant hereto
by either of the parties, the parties enter into the following Articles of
Agreement:
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ARTICLE I
DEFINITIONS
Section 1.01. Account. The term "Account" means the account maintained for
the Employee under this Agreement, which is credited in each calendar year with
amounts determined pursuant to Article II of this Agreement.
Section 1.02. Administrator. The term "Administrator" means the Board,
which shall have the sole authority to manage and control the operation and
administration of this Agreement.
Section 1.03. Board. The term "Board" means the Board of Directors of the
Bank. Whenever the provisions of this Agreement require action by the Board, it
may be taken by the Executive Committee of the Board or by an individual who is
designated by the Board to take action on its behalf with the same force and
effect as though taken by the entire Board.
Section 1.04. Bank. The term "Bank" means Logansport Savings Bank, FSB.
Section 1.05. Effective Date. The term "Effective Date" means April 12,
2000.
Section 1.06. Employee. The term "Employee" means Xxxxx X. Xxxxxxxxx.
Section 1.07. Plan Year. The Term "Plan Year" means the consecutive twelve
(12) month period beginning each January 1 and ending on the following December
31.
Section 1.08. Retirement Age. The term "Retirement Age" means age
sixty-five (65).
Section 1.09. Termination of Employment. The term "Termination of
Employment" means the date on which the Employee, prior to the attainment of his
Retirement Age, retires, resigns or otherwise, voluntarily or involuntarily,
terminates his full-time employment with the Bank. The Employee shall be deemed
to have terminated his full-time employment with the Bank if he incurs a Total
Disability.
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Section 1.10. Total Disability. The term "Total Disability" means a
physical or mental disability of such character which is sufficiently serious
and permanent as to prevent the Employee from performing his normal duties for
the Bank.
ARTICLE II
THE ALLOCATION
Section 2.01. Amount of Allocations. On the last day of December, 2000, the
Bank shall credit to the Employee's Account an amount equal to twenty-five
thousand dollars ($25,000). On the last day of each December beginning with
December, 2001 and occurring before the first to occur of (1) the Employee's
retirement following the attainment of his Retirement Age, (2) the Employee's
death or (3) the Employee's Termination of Employment, the Bank shall credit to
the Employee's Account an amount equal to twenty-five thousand dollars ($25,000)
times the percentage increase or decrease in Employee's base salary above or
below $150,000 for the calendar year for which the allocation is being made. For
the year in which Employee retires following his attainment of his Retirement
Age, dies, or has a Termination of Employment, the Bank shall credit to the
Employer's Account on the date he retires following the attainment of his
Retirement Age, dies or has a Termination of Employment, the pro rata portion of
the annual amount which would otherwise be credited to Employee on December 31st
of that year had he not retired after reaching his Retirement Age, died or had a
Termination of Employment during that year. Each allocation under this Section
2.01 shall be deemed to have been made for purposes of computing interest under
Section 2.02 of this Agreement beginning on the required allocation date.
Section 2.02. Allocation of Interest. After the end of each Plan Year, and
on a pro rata basis throughout the next calendar year, immediately following the
end of each Plan Year, Bank shall
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credit the Employee's Account, with interest, compounded annually, on the
undistributed balance then held in his Account. The annual rate of interest for
each Plan Year shall be equal to the highest certificate of deposit rates
offered by the Bank during the year preceding the year in which the interest is
to be allocated. Interest with respect to any allocations made during a Plan
Year shall accrue from the date of allocation.
ARTICLE III
BENEFITS
Section 3.01. Death Benefits. Upon the death of the Employee prior to the
attainment of his Retirement Age or prior to his Termination of Employment, his
beneficiary, if living, or has contingent beneficiaries, if not, as determined
pursuant to Section 4.03 of this Agreement, shall receive in a single lump sum
cash payment the balance held in the deceased Employee's Account on the date of
death. In the absence of any such designation or if the designated or contingent
beneficiary is not living at the death of the Employee, the Account balance
shall be paid in a lump sum to the Employee's spouse, if any, or, if none, to
his estate. The lump sum payment shall be paid within sixty (60) calendar days
after the Employee's death.
Section 3.02. Retirement or Prior Termination of Employment. Upon the
Employee's retirement after he attains his Retirement Age or upon his earlier
Termination of Employment, he shall receive a cash payment of the balance in his
Account at the time of his retirement following the attainment of his Retirement
Age or his earlier Termination of Employment. The Account balance shall be paid
in substantially equal monthly installments over a term of five (5) years
commencing no later than sixty (60) calendar days after he retires after
attaining his Retirement Age or after his earlier Termination of Employment.
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Section 3.03. Death After Payments Commence. If Employee dies prior to
receiving any or all of the monthly installments contemplated by Section 3.02 of
this Article III, the Account balance not yet paid to Employee shall be paid in
a lump sum within sixty (60) calendar days after the Employee's death to his
designated beneficiaries, if living, or to his contingent beneficiaries, if not
living. In the absence of any such designation or if the designated or
contingent beneficiary is not living at the death of the Employee, the Account
balance shall be paid in a lump sum to the Employee's spouse, if any, or, if
none, to his estate. Such payment shall be made within sixty (60) calendar days
after the Employee's death.
Section 3.04. Continued Interest Accrual. Amounts appropriated under this
Agreement pending distribution shall continue to accrue interest at the rate and
in the manner prescribed by Section 2.02 of the Article II hereof, which shall
change on January 1st of each year as prescribed by that Section 2.02.
ARTICLE IV
ADMINISTRATION
Section 4.01. Delegation of Responsibility. The Administrator may delegate
duties involved in the administration of this Agreement to the Executive
Committee of the Board or to such other person or persons whose services are
deemed by it to be necessary or convenient. However, the ultimate responsibility
for the administration of this Agreement shall remain with the Administrator.
Section 4.02. Payment of Benefits. The amounts allocated to the Employee's
Account and payable as benefits under this Agreement shall be paid solely from
the general assets of the Bank. The Employee shall not have any interest in any
specific assets of the Bank under the terms of this
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Agreement. This Agreement shall not be considered to create an escrow account,
trust fund or other funding arrangement of any kind or a fiduciary relationship
between the Employee and the Bank.
Section 4.03. Designation of Beneficiaries. The Employee shall designate in
a writing filed with the Secretary of the Bank a beneficiary and a contingent
beneficiary to whom death benefits or any unpaid benefits due hereunder at the
date of the Employee's death shall be paid.
ARTICLE V
MISCELLANEOUS
Section 5.01. Amendment of Agreement. This Agreement cannot be amended,
modified or supplemented in any respect except by a subsequent written agreement
entered into by the parties.
Section 5.02. Successors and Assigns. This Agreement shall be binding upon,
and shall inure to the benefit of, the Bank, its successors and assigns, and the
Employee, his heirs, legatees and personal representatives.
Section 5.03. Non-Alienation. The Employee and his beneficiary, as
determined pursuant to Section 4.03 of this Agreement, shall not have any right
to anticipate, alienate or assign any rights under this Agreement, and any
effort to do so shall be null and void. The monthly benefits payable under this
Agreement shall be exempt from the claims of creditors or other claimants and
from all orders, decrees, levies and executions and any other legal process to
the fullest extent permitted by law.
Section 5.04. Choice of Law. This Agreement shall be construed and
interpreted pursuant to, and in accordance with, the laws of the State of
Indiana.
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Section 5.05. Waiver. Failure of any party hereto to insist upon strict
compliance with any of the terms, covenants and conditions hereof shall not be
deemed a waiver or relinquishment of any similar right or power hereunder at any
subsequent time.
Section 5.06. Notices. Any notice required or permitted to be given under
this Agreement shall be sufficient if in writing and if personally delivered to
the party to whom notice should be given at the addresses set forth below (or at
such other address for a party as shall be specified by notice given pursuant
hereto):
Bank: Logansport Savings Bank, FSB
000 Xxxx Xxxxxxxx
X.X. Xxx 000
Xxxxxxxxxx, Xxxxxxx 00000
Employee: Xxxxx X. Xxxxxxxxx
0000 Xxxxxxxxx Xxxxx
Xxxxxxxxxx, Xxxxxxx 00000
Section 5.07. Unenforceability. If any provision of this Agreement is
deemed invalid or unenforceable, the remaining provisions shall remain in
effect.
Section 5.08. Headings. The headings in this Agreement are solely for
convenience of reference and shall not affect its interpretation.
Section 5.09. Duration of this Agreement. This Agreement shall
automatically terminate at the date on which the balance of the Employee's
Account has been distributed pursuant to the terms of this Agreement.
Section 5.10. No Employment Contract. This Agreement shall not be construed
as an agreement, consideration or inducement of employment or as affecting in
any manner the rights
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or obligations of the Bank or of the Employee to continue or to terminate the
employment relationship at any time.
IN WITNESS WHEREOF, the Bank and Employee have caused this Agreement to be
executed as of this 20th day of March, 2001.
LOGANSPORT SAVINGS BANK, FSB
By: /s/ Xxxxxxx X. Xxxxx
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Xxxxxxx X. Xxxxx, Senior Vice President
/s/ Xxxxx X. Xxxxxxxxx
-------------------------------------------
Xxxxx X. Xxxxxxxxx
"Employee"
