THREE - DEFERRED COMPENSATION Sample Clauses

THREE - DEFERRED COMPENSATION. A. The Corporation shall set aside and accrue to the benefit of Executive the sum of the following no later than December 31 of each year subject to the terms set forth in this Agreement: 1. A base of Twenty-five Thousand Dollars ($25,000) per year; and 2. Such additional annual deferred compensation as determined by the Board of Directors. 3. In the event Executive becomes entitled to receive benefits under Article Five of this Agreement, he shall be entitled to a pro-rata portion of his base benefit based upon his completed calendar months of employment for the year of employment termination and any additional annual deferred compensation determined by the Board of Directors. B. The sum of the above annual set aside, plus each prior year’s set aside, shall be referred to as Executive’s Deferred Compensation Account (“EDC Account”). The EDC Account shall bear annual interest equal to the one year treasury note constant maturity interest rate published by the Federal Home Loan Bank in effect on January 1 of each year (constant one year U.S. Treasury Index per FRB H15). C. The Corporation may purchase life insurance to fund all or part of the above EDC Account and Executive shall execute all reasonable insurance applications to facilitate such purchase provided, however, Executive shall have no right, title or interest in such insurance or in the EDC Account, unless otherwise provided by the Corporation.