Memo of Understanding Between Cass Information Systems, Inc. and Lawrence A. Collett Regarding Post-Retirement Chairman and Consulting Role
Cass Information Systems, Inc. and Lawrence A. Collett have agreed that, after his retirement as CEO, Mr. Collett will serve as Chairman of the Board and consultant for an initial three-year term starting July 20, 2008, with possible extension. He will work up to one day per week, receive $150,000 annually plus board-related fees and expense reimbursements, but will not participate in the company’s profit sharing plan after June 30, 2008. The agreement can be terminated by either party at any time, and compensation terms address contingencies such as death or disability.
Exhibit 10.1
MEMO OF UNDERSTANDING
The purpose of this memorandum is to outline the basis of the work and compensation that will be performed by Lawrence A. Collett (Chairman) after he retires as Chief Executive Officer and assumes the role of Chairman of the Board of, and consultant to, Cass Information Systems, Inc.
I. | Role and Responsibilities |
The Chairmans duties shall be as set forth in the description attached to this memorandum.
II. | Time Commitments |
It is expected that the Chairman will spend not more than one day per week engaged in the above duties or activities as requested by the Company.
This new position will begin July 20, 2008.
It is understood that this position will be for an initial three-year period, but can be extended upon the mutual agreement of the Chairman and the Board of Directors. It is recognized this understanding can be terminated at any time by either party.
III. | Compensation |
A. | Annual Fee For serving in the outlined capacity, the Chairman shall receive a fee of $150,000 per year, paid monthly. |
B. | The Chairman shall also receive the annual stock compensation and the monthly Board of Directors retainer and monthly meeting fees. In addition he will receive fees for each loan committee meeting he attends as a member of that committee. He shall not receive a fee as an ex-officio member of other board committees. |
C. | He will be reimbursed for business-related expenses including but not limited to, country club membership and automobile expenses at a level equivalent to that provided during employment, and membership dues for organizations such as the Regional Business Council and CEO Council which, in the Boards opinion, are beneficial for the Company. |
IV. | Other Compensation Issues |
A. | He will not participate in the Profit Sharing Plan of the Company after 6/30/2008. |
B. | He will retain full interest in the stock bonus awards and stock option awards that have been provided up to the time of his retirement. These will be allowed to vest according to the original schedule and terms of the individual agreements with respect to all matters other than the terms of the individual agreements relating to the termination of Mr. Colletts employment. |
V. | Future Contingencies |
A. | The annual fee, board fees and board stock compensation shall cease in the event of the Chairmans death. |
B. | In the event of disability, all payments would continue until the Board of Directors determined that the Chairman could not serve as originally planned for the duration of the term. |
Cass Information Systems, Inc. | ||||||
By: | /s/ Eric H. Brunngraber | /s/ Lawrence A. Collett | ||||
Name: | Eric H. Brunngraber | Lawrence A. Collett | ||||
Title: | President and Chief Operating Officer |