FEDERAL SAVINGS BANK
DEFERRED DIRECTORS FEE PLAN
This Deferred Directors Fee Plan (the Plan) is adopted by the Board of Directors of Federal Bank (the Bank), effective as of April 1, 2016 (the Effective Date). The Plan is intended to allow members of the board of directors (Directors) of the Bank to defer the receipt of fees that otherwise would be paid to them. The Plan is intended to satisfy Section 409A of the Internal Revenue Code of 1986, as amended (the Code) and any regulatory or other guidance issued thereunder.
W I T N E S S E T H :
WHEREAS, the Bank recognizes the valuable services heretofore performed for it by its Directors and wishes to encourage their continued service; and
WHEREAS, the Bank values the efforts, abilities and accomplishments of the Directors and recognizes that the Directors services substantially contribute to its continued growth and success in the future; and
WHEREAS, the Bank and the Directors intend this Plan to be considered an unfunded arrangement for tax purposes; and
WHEREAS, the Bank has adopted this Plan which controls all issues relating to the deferred compensation benefits as described in this Plan.
NOW, THEREFORE, in consideration of the mutual promises herein contained, the parties hereto agree to the following terms and conditions:
For the purposes of this Plan, the following terms have the meanings indicated, unless the context clearly indicates otherwise:
1.1 Bank. Bank means Federal Savings Bank or any successor to the business thereof, and any affiliated or subsidiary corporations designated by the Board of Directors.
1.2 Beneficiary. Beneficiary means the person or persons (and, if applicable, their heirs) designated as a beneficiary to whom the deceased Directors benefits are payable. If no Beneficiary is so designated, then the Directors Spouse, if living, will be deemed the Beneficiary. If the Directors Spouse is not living at the time of the Directors death or dies prior to payment of the survivors benefit, then the Children of the Director will be deemed the Beneficiaries and will take on a per stirpes basis. If there are no living Children, then the Directors estate will be deemed the Beneficiary. For this purpose, the term Children means the Directors children, or the issue of any deceased Children, then living at the time payments are due the Children under this Plan. The term Children shall include both natural and adopted children, as well as stepchildren. Also,