MEMORANDUM OF UNDERSTANDING
Exhibit 10.5
This Memorandum of Understanding is entered into this the 30th day of April, 2005, among XXXXXX X. XXXXXXX (“Xxxxxxx”), FIRST FARMERS & MERCHANTS NATIONAL BANK (“Bank”), and FIRST FARMERS & MERCHANTS CORPORATION (“Corporation”).
WHERAS, Xxxxxxx, having reached the mandatory retirement age of seventy from the Bank and Corporation Board of Directors, would continue to work serving as an “Ambassador” in the six counties served by the Bank.
WHEREAS, Xxxxxxx would continue to serve on the Executive Committee as the Honorary Chairman, with Executive Committee fees to be paid, and Honorary Board Member for life, maintain the title of Senior Chairman of the Board and serve on other Bank related committees as assigned by the Board of Directors. Xxxxxxx would serve on various civic, professional and charitable positions as he chooses.
Xxxxxxx would continue to work for which he would receive:
(A) $5,000.00 per month, beginning May 1, 2005;
(B) Certain benefits that he now receives, including but not limited to Graymere Country Club dues, Kiwanis, Tennessee Bankers Association and other bank related expenses and use of bank automobile;
(C) Participation in the Senior Executive Officers’ Bonus Plan on the same basis as other senior officers, with base salary as established on January 1, 2002, which is $264,600.00, to be calculated through December 31, 2005; and
(D) Xxxxxxx would maintain an office of his choice on the third floor equivalent to the office of Xxxxxx X. Xxxxx, Xx.
Xxxxxxx’x agreement with the Bank and Corporation will terminate April 30, 2008, unless terminated earlier by either party, with any changes in this Memorandum to be agreed upon by both parties.
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/s/ Xxxxxx X. Xxxxxxx |
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XXXXXX X. XXXXXXX |
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/s/ H. Xxxxx Xxxx, Jr. |
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H. XXXXX XXXX, JR., CHAIRMAN |
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COMPENSATION COMMITTEE |
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FIRST FARMERS & MERCHANTS |
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NATIONAL BANK |
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FIRST FARMERS & MERCHANTS |
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NATIONAL BANK |
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By: |
/s/ T. Xxxxx Xxxxxxx |
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Its: |
Chief Executive Officer |
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FIRST FARMERS & MERCHANTS |
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CORPORATION |
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By: |
/s/ T. Xxxxx Xxxxxxx |
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Its: |
Chief Executive Officer |
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ATTEST: |
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/s/ Xxxxxx XxXxxxxx |
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SECRETARY |
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