FIRST AMENDMENT TO THE
SHAREHOLDER BENEFIT PROGRAM AGREEMENT
FOR
XXXXXXX XXXX
Upon mutual consent and for valuable consideration hereby recognized,
this First Amendment to the Shareholder Benefit Program Agreement (the
"Agreement") for Xxxxxxx Xxxx (the "Executive"), dated this 23rd day of
May, 2000, is for the purpose of amending the Agreement as follows:
Paragraph 1.1 "Accrued Benefit" shall be changed to read as follows:
"Accrued Benefit" means that portion of the Supplemental Retirement
Income Benefit which is required to be expensed and/or accrued under
generally accepted accounting principles by the following methodology:
the difference between the Bank's income derived from annual increases
in the cash surrender value of a no-load, no-surrender charge Southland
Life life insurance policy with a one-time premium of $800,000 insuring
the life of Executive and the after-tax Cost of Funds Expense,
provided, however that in the years Executive relinquishes shares
granted him pursuant to the RRP, the Bank shall accrue the savings
realized by virtue of such relinquishment.
If such contract for life insurance is not purchased or is subsequently
surrendered or lapsed, then the Bank shall receive an annual policy
illustration that assumes the above-described policy was purchased, or
had not subsequently surrendered or lapsed, which illustration will be
received from the insurance company and will indicate the increase in
policy value for purposes of calculating the Accrued Benefit.
In either case, references to life insurance contracts are merely for
purposes of calculating a benefit. The Bank has no obligation to
purchase such life insurance and, if purchased, the Executive and his
beneficiar(ies) shall have no ownership interest in such policy and
shall always have no greater interest in the benefits under this Plan
than that of an unsecured creditor of the Bank.
All other provisions of the Joinder Agreement, which are not
specifically modified by this First Amendment, are hereby incorporated and shall
remain in full force and effect.
IN WITNESS WHEREOF, the Bank and Executive have caused this First
Amendment, effective as of the above date, to be executed.
WITNESS: FIRST FEDERAL SAVINGS BANK:
/s/Xxxx X. Xxxxx By: /s/Xxxxxxx X. Xxxxxxx
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Xxxx X. Xxxxx Xxxxxxx X. Xxxxxxx
Xx. Vice President, CFO
(Title)
/s/Xxxxxxx X. Xxxx
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Xxxxxxx X. Xxxx
