Exhibit 10(n)
AMENDMENT TO
FIRST FEDERAL SAVINGS BANK OF WABASH
SPLIT DOLLAR AGREEMENT
THIS AMENDMENT, made and entered into this 30th day of June, 2003, by and
between FIRST FEDERAL SAVINGS BANK OF WABASH, a Federal stock savings bank
located in Wabash, Indiana (the "Company"), and Xxxxxxxxx X. Xxxxxx (the
"Executive") amends and restates the SPLIT DOLLAR AGREEMENT dated September 30,
2002. This Agreement shall append the Split Dollar Endorsement entered into on
even date herewith or as subsequently amended, by and between the aforementioned
parties.
INTRODUCTION
To encourage the Executive to remain an employee of the Company, the
Company is willing to divide the death proceeds of a life insurance policy on
the Executive's life. The Company will pay life insurance premiums from its
general assets.
AGREEMENT
The Company and the Executive agree as follows:
Article 1
General Definitions
The following terms shall have the meanings specified:
1.1 "Insured" means the Executive.
1.2 "Insurer" means each life insurance carrier in which there is a Split
Dollar Policy Endorsement attached to this Agreement
1.3 "Normal Retirement Age" means the Executive's 65th birthday.
1.4 "Policy" means the specific life insurance policy issued by the
Insurer.
1.5 Two Times Base Annual Salary" means the current base annual salary of
the Executive at the earliest of: (1) the date of the Executive's death; (2) the
date of the Executive's Disability; or (3) the Executive's Normal Retirement
Date multiplied by a factor of two (2).
Article 2
Policy Ownership/Interests
2.1 Company Ownership. The Company is the sole owner of the Policy and
shall have the right to exercise all incidents of ownership. The Company shall
be the beneficiary of the remaining death proceeds of the Policy after the
Interest of the Executive or the Executive's transferee has been paid according
to Section 2.2 below.
2.2 Executive's Interest. The Executive shall have the right to designate
the beneficiary of Two Times Base Annual Salary. The Executive shall also have
the right to elect and change settlement options that may be permitted. However,
the Executive, the Executive's transferee or the Executive's beneficiary shall
have no rights or interests in the Policy with respect to that portion of the
death proceeds designated in this section 2.2 upon the Executive's Termination
of Employment.
2.3 Termination of Participation. An Executive's rights under this
Agreement shall cease and his or her participation in this Agreement shall
terminate if either of the following events occur: (i) if there is a Termination
for Cause; or (ii) if the Executive's employment with the Company is terminated
for any reason prior to Normal Retirement Age, or (iii) the Executive retires,
or (iv) the plan is terminated per Article 7. In the event that the Company
decides to maintain the Policy or Policies after the Executive's Termination of
Participation in the Plan, the Company shall be the direct beneficiary of the
entire death proceeds of the Policy or Policies.
2.4 Other Termination. Nothing herein negates the Company's right to amend
or terminate this Agreement under Article 7. However, the Company is not
obligated to provide any additional resources to maintain the Policy or Policies
in full force and effect. In addition, the Company may replace each Policy with
a comparable insurance policy to cover the benefit provided under this Agreement
and the Company and the Executive shall execute a new Split Dollar Policy
Endorsement for each new Policy. Each new Policy or any comparable policy shall
be subject to the claims of the Company's creditors.
Article 3
Premiums
3.1 Premium Payment. The Company shall pay any premiums due on the Policy.
3.2 Economic Benefit. The Company shall determine the economic benefit
attributable to the Executive based on the amount of the current term rate for
the Executive's age multiplied by the aggregate death benefit payable to the
Executive's beneficiary. The "current term rate" is the minimum amount required
to be imputed under Revenue Rulings 64-328 and 66-110, or any subsequent
applicable authority.
3.3 Imputed Income. The Company shall impute the economic benefit to the
Executive on an annual basis.
Article 4
Assignment
The Executive may assign without consideration all of the Executive's
interests in the Policy and in this Agreement to any person, entity or trust. In
the event the Executive transfers all of the Executive's interest in the Policy,
then all of the Executive's interest in the Policy and in the Agreement shall be
vested in the Executive's transferee, who shall be substituted as a party
hereunder and the Executive shall have no further interest in the Policy or in
this Agreement.
Article 5
Insurer
The Insurer shall be bound only by the terms of the Policy. Any payments
the Insurer makes or actions it takes in accordance with the Policy shall fully
discharge it from all claims, suits and demands of all entities or persons. The
Insurer shall not be bound by or be deemed to have notice of the provisions of
this Agreement.
Article 6
Claims Procedure
6.1 Claims Procedure. A Participant or beneficiary ("claimant") who has not
received benefits under the Plan that he or she believes should be paid shall
make a claim for such benefits as follows: 6.1.1. Initiation - Written Claim.
The claimant initiates a claim by submitting to the Company a written claim for
the benefits.
6.1.2. Timing of Company Response. The Company shall respond to such
claimant within 90 days after receiving the claim. If the Company
determines that special circumstances require additional time for
processing the claim, the Company can extend the response period by an
additional 90 days by notifying the claimant in writing, prior to the end
of the initial 90-day period, that an additional period is required. The
notice of extension must set forth the special circumstances and the date
by which the Company expects to render its decision.
6.1.3. Notice of Decision. If the Company denies part or all of the
claim, the Company shall notify the claimant in writing of such denial. The
Company shall write the notification in a manner calculated to be
understood by the claimant. The notification shall set forth:
(a) The specific reasons for the denial.
(b) A reference to the specific provisions of the Plan on which the
denial is based.
(c) A description of any additional information or material necessary
for the claimant to perfect the claim and an explanation of why
it is needed.
(d) An explanation of the Plan's review procedures and the time
limits applicable to such procedures, and
(e) A statement of the claimant's right to bring a civil action under
ERISA Section 502 (a) following an adverse benefit determination
on review.
6.2 Review Procedure. If the Company denies part or all of the claim, the
claimant shall have the opportunity for a full and fair review by the Company of
the denial, as follows:
6.2.1 Initiation - Written Request. To initiate the review, the
claimant, within 60 days after receiving the Company's notice of denial,
must file with the Company a written request for review.
6.2.2. Additional Submissions - Information Access. The claimant shall
then have the opportunity to submit written comments, documents, records
and other information relating to the claim. The Company shall also provide
the claimant, upon request and free of charge, reasonable access to, and
copies of, all documents, records and other information relevant (as
defined in applicable ERISA regulations) to the claimant's claim for
benefits.
6.2.3. Considerations on Review. In considering the review, the
Company shall take into account all materials and information the claimant
submits relating to the claim, without regard to whether such information
was submitted or considered, in the initial benefit determination.
6.2.4. Timing of Company Response. The Company shall respond in
writing to such claimant within 60 days after receiving the request for
review. If the Company determines that special circumstances require
additional time for processing the claim, the Company can extend the
response period by an additional 60 days by notifying the claimant in
writing, prior to the end of the initial 60 day period that an additional
period is required. The notice of extension must set forth the special
circumstances and the date by which the Company expects to render its
decision.
6.2.5. Notice of Decision. The Company shall notify the claimant in
writing of its decision on review. The Company shall write the notification
in a manner calculated to be understood by the claimant. The notification
shall set forth:
(a) The specific reasons for the denial.
(b) A reference to the specific provisions of the Plan on which the
denial is based.
(c) A statement that the claimant is entitled to receive, upon
request and free of charge, reasonable access to, and copies of,
all documents, records and other information (as defined in
applicable ERISA regulations) to the claimant's claim for
benefits, and
(d) A statement of the claimant's right to bring a civil action under
ERISA Section 502 (a).
Article 7
Amendments and Termination
7.1 Amendment or Termination of Agreement. The Company may amend or
terminate the Agreement at any time and may amend or terminate an Executive's
rights under the Agreement at any time prior to the Executive's death by written
notice to the Executive. However, unless otherwise agreed to by the Company and
the Executive, this Agreement will automatically terminate upon the Executive's
Termination of Employment. Additionally, the Company may sell, surrender,
exchange, or transfer the insurance Policy or Policies purchased under the
Agreement at any time. If the Company decides to sell, surrender, transfer, or
exchange the Policies while this Agreement is in effect, the Company will first
give the Executive or the Executive's transferee the option to purchase the
Policies for a period of 60 days from written notice of such intention. The
purchase price shall be an amount equal to the cash surrender value of the
Policies.
7.2 Waiver. An Executive may, in the Executive's sole and absolute
discretion, waive his or her rights under the Agreement at any time. Any waiver
permitted under this Section 7.2 shall be in writing and delivered to the Board
of Directors of the Company.
Article 8
Miscellaneous
8.1 Binding Effect. This Agreement shall bind the Executive and the Company
and their beneficiaries, survivors, executors, administrators and transferees,
and any Policy beneficiary.
8.2 No Guarantee of Employment. This Agreement is not an employment policy
or contract. It does not give the Executive the right to remain an employee of
the Company, nor does it interfere with the Company's right to discharge the
Executive. It also does not require the Executive to remain an employee nor
interfere with the Executive's right to terminate employment at any time.
8.3 Applicable Law. The Agreement and all rights hereunder shall be
governed by and construed according to the laws of the State of Indiana, except
to the extent preempted by the laws of the United States of America.
8.4 Reorganization. The Company shall not merge or consolidate into or with
another company, or reorganize, or sell substantially all of its assets to
another company, firm or person unless such succeeding or continuing company,
firm or person agrees to assume and discharge the obligations of the Company.
8.5 Notice. Any notice, consent or demand required or permitted to be given
under the provisions of this Split Dollar Agreement by one party to another
shall be in writing, shall be signed by the party giving or making the same, and
may be given either by delivering the same to such other party personally, or by
mailing the same, by United States certified mail, postage prepaid, to such
party, addressed to his or her last known address as shown on the records of the
Company. The date of such mailing shall be deemed the date of such mailed
notice, consent or demand.
8.6 Entire Agreement. This Agreement constitutes the entire agreement
between the Company and the Executive as to the subject matter hereof. No rights
are granted to the Executive by virtue of this Agreement other than those
specifically set forth herein.
8.7 Administration. The Company shall have powers which are necessary to
administer this Agreement, including but not limited to:
(a) Interpreting the provisions of this Agreement;
(b) Establishing and revising the method of accounting for this
Agreement;
(c) Maintaining a record of benefit payments; and
(d) Establishing rules and prescribing any forms necessary or
desirable to administer this Agreement.
8.8 Named Fiduciary. The Company shall be the named fiduciary and plan
administrator under the Agreement. The named fiduciary may delegate to others
certain aspects of the management and operation responsibilities of the plan
including the employment of advisors and the delegation of ministerial duties to
qualified individuals.
IN WITNESS WHEREOF, the parties have executed this Agreement the day and
year first above written.
EXECUTIVE: COMPANY:
First Federal Savings Bank of Wabash
/s/ Xxxxxxxxx X. Xxxxxx By /s/ Xxxxxxx X. Xxxxxxxx
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Xxxxxxxxx X. Xxxxxx Title Vice President/Controller
