Exhibit 10.5
DIRECTOR'S DEFERRED COMPENSATION AGREEMENT
This Agreement made and entered into this ____ day of ________________,
_______, by and between ______________________, hereinafter referred to as the
"Director" and Clover Leaf Bank, S.B., a State Chartered Savings Bank, of
Edwardsville, Madison County, Illinois, hereinafter referred to as the Bank as
follows:
Whereas, the Director has been duly elected to the Board of Directors
of the Bank pursuant to the By-laws of the Bank and the applicable statues and
laws of the State of Illinois, and,
Whereas, in such capacity the Director is entitled to certain
compensation for his services so rendered, and,
Whereas, said compensation is due and payable from time to time as
established by policies of the Board of Directors as services are rendered by
the Director, and,
Whereas, the parties have agreed that all or a portion of the payment
of compensation due the Director shall be deferred pursuant to the provisions of
this Agreement,
NOW THEREFORE, it is agreed by as follows;
1. Credit to Account The Bank shall-establish on its books an
account to be known as the "Directors Deferred Compensation
Account" to which those fees selected by the Director shall be
credited as they are earned.
2. Interest All sums credited to the Directors Deferred Compensation
Account shall be credited with interest from the date earned at a
per annum rate equal to the Bank's return on capital for the most
recent full calendar year. However, the rate paid on said
deferred compensation accounts shall not be less than 6.50% per
annum.
3. Termination of Board Membership Upon termination of the
Director's membership on the Board for whatever reason, the
amount of compensation and interest credited to the Director's
Deferred Compensation Account for the said Director shall be paid
to him. Such payment shall be made either in lump sum within
sixty (60) days of the Director's termination date, or in equal
monthly, quarterly, or annual installments over a period not
exceeding five (5) years, however, the Bank shall elect, it
having the sole option to determine the method of payment. In the
event the Bank elects to pay the compensation in installments,
then interest shall continue to be credited to the unpaid balance
as provided in Paragraph 2 hereof.
4. Death of Director Upon the death of the Director prior to the
receipt by him of his full balance in the Director's Deferred
Compensation Account due him hereunder, such balance shall be
paid to his beneficiary as named by him below, or, in the absence
or prior death of such beneficiary, then to the Director's
Estate. The beneficiary designation hereon is revocable and may
be changed by the Director at any time in writing.
5. Nature of Account The amounts credited to the Director's Deferred
Compensation Account hereunder shall remain part of the general
funds of the Bank and neither the Director nor any Beneficiary
shall have any property interest in any specific assets of the
Bank. The establishment of the Deferred Compensation Account will
not require or result in the actual funding of a segregated
account or serve as security for such account.
6. Restrictions to Assignability Neither the Director's Deferred
Compensation Account or any portion thereof shall be subject to
or available for assignment, transfer, encumbrance or pledge by
the Director or any Beneficiary except as provided for herein in
the event of the death of a Director, and any such attempted
assignment, transfer, encumbrance or pledge shall be considered
void and without any force and effect.
7. Relation to Board Membership This Agreement does not confer upon
the Director any continuing right to serve as a Director of the
Bank nor does it require or insure the payment of any Ices by the
Bank to the Director or to any other member of the Board of
Directors.
8. Reports The Bank shall annually furnish the Director a statement
showing balance and interest earned during the year.
IN WITNESS WHEREOF, the parties have executed this Agreement, those
officers of the Bank being signatory hereto having been duly authorized by the
Board of Directors to so act.
CLOVER LEAF BANK, S.B.
By:________________________
ATTEST:
___________________
________________________
Director
