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EXHIBIT 10.3
DEFERRED COMPENSATION AGREEMENT
This Agreement, made this 1st day of January, 1996, by and between Central
Illinois Bancorp, Inc. (hereinafter called "Company") and Participant,
(hereinafter called "Director").
WITNESSETH:
WHEREAS, Director is a valued member of the Board of Directors of Company, and
WHEREAS, Company wishes to retain the services of Director until his retirement
from the Board of Directors, and
WHEREAS, Company and Director both want to provide to Director a post-
retirement income.
NOW, THEREFORE, Company and Director mutually agree as follows:
1. Beginning January 1, 1996, all fees thereafter earned by Director
for his services as a member of the Board of Directors of
Company will be retained by Company and held by Company in a
segregated account designated as the "Deferred Compensation Account
for Director".
2. This segregated account will remain an asset of Company subject to
the rights and claims of all creditors of Company, until voluntarily
withdrawn by Director, paid to Director under periodic
pension payments, or paid to Director's beneficiaries or heirs.
3. Company will add interest to the amount held in this segregated
account quarterly, based on the rate then currently being paid by
Central Illinois Bank on its 365-day certificates of deposit.
4. During Director's lifetime, by mutual consent of Company and
Director, Director will have the right at any time to cancel the
further deferral of fees earned as a member of the Board of
Directors of Company and to demand and receive from Company the full
amount then held in the segregated account designated "Deferred
Compensation Account for Director."
5. On Director's normal retirement from Company's Board of
Directors, or on his earlier retirement due to sickness or other
disability, or on his early retirement with the consent of Company,
Company will pay the then balance in the segregated account to
Director in equalized monthly payments over a period of five years.
Interest added to undistributed balances in this segregated account
will be distributed as earned.
6. In the event Director dies subsequent to his retirement under
the conditions set forth in Paragraph 5, Company will continue to
make the payments called for in Paragraph 5 to such person or
persons named by Director in a written designation filed by him with
Company before his death, or in the absence of such designation, to
the person or persons designated by Director in his last will and
testament, or in the absence thereof, the entire balance will be
paid to his estate.
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7. In the event Director dies prior to his normal retirement under the
conditions set forth in Paragraph 5, Company will make such payments
as would otherwise have been made to Director under the formula
described in Paragraph 5 to such person or persons named by Director
in a written designation filed by him with Company before his death,
or in the absence of such designation, to the person or persons
designated by Director in his last will and testament, or in the
absence thereof, the entire balance will be paid to his estate.
8. If prior to normal retirement under the conditions set forth in
Paragraph 5, Director voluntarily resigns as opposed to early
retirement by consent of Company, is requested to resign by the
majority of the Board of Directors of Company, or is forced to
resign by regulatory authorities, the entire balance then held in
the segregated account "Deferred Compensation Account for Director
will be paid in full to Director.
9. If Director is dismissed for cause as a member of the Board of
Directors of Company, there is a substantial risk for forfeiture of
any funds then held in the "Deferred Compensation Account for
Director".
10. Neither Director nor his beneficiaries shall have the right
to encumber, commute, borrow against, dispose of, or assign the
right to receive payments hereunder.
IN WITNESS WHEREOF, Director and Company have executed this Agreement on the
date above written.
CENTRAL ILLINOIS BANCORP, INC.
BY:
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Participant, Director
Attest by:
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----------------------- Secretary/Assistant Secretary
Date
Date:
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