FIRST AMENDMENT TO SALARY CONTINUATION AGREEMENT

EX-10.24(A) 4 v436109_ex10-24a.htm EXHIBIT 10.24(A)

 

Exhibit 10.24(a)

 

FIRST AMENDMENT TO

SALARY CONTINUATION AGREEMENT

 

THIS AMENDMENT (the “Amendment”) is adopted March 29, 2016, by First South Bank, located in Washington, North Carolina (the “Employer”), and J. Randy Woodson (the “Executive”).

 

The Employer and the Executive executed a Salary Continuation Agreement dated June 3, 2014 (the “Agreement”) which provides deferred compensation benefits to the Executive under certain circumstances. The parties wish to amend the Agreement to increase the benefits provided pursuant to the Agreement. The parties agree and acknowledge that this Amendment (i) shall be interpreted in accordance with Internal Revenue Code Section 409A and (ii) increases the amount of benefits provided under the Agreement, but does not change the payment schedule thereunder.

 

NOW, THEREFORE, the Employer and the Executive adopt the following amendments to the Agreement:

 

Section 2.1 of the Agreement shall be deleted and replaced by the following:

 

2.1           Normal Retirement Benefit. Upon Separation from Service after Normal Retirement Age, the Employer shall pay the Executive an annual benefit in the amount of Thirty Thousand Dollars ($30,000) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Separation from Service and continuing for fifteen (15) years, subject to the conditions and limitations hereinafter set forth.

 

Sections 2.4, 2.5 and 2.6 of the Agreement shall be deleted and replaced by the following:

 

2.4           Change in Control Benefit. If a Change in Control occurs, followed within twenty-four (24) months by Separation of Service prior to Normal Retirement Age, the Employer shall pay the Executive an annual benefit in the amount of Thirty Thousand Dollars ($30,000) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Normal Retirement Age and continuing for fifteen (15) years.

 

2.5           Death Prior to Separation from Service and Disability. In the event the Executive dies prior to Separation from Service and Disability, the Employer shall pay the Beneficiary an annual benefit in the amount of Thirty Thousand Dollars ($30,000) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following the Executive’s death and continuing for fifteen (15) years.

 

 

 

  

2.6           Death after Separation from Service or Disability and before Normal Retirement Age. In the event the Executive dies after Separation from Service or Disability, and before Normal Retirement Age, the Employer shall pay the Beneficiary an annual benefit in the amount of Thirty Thousand Dollars ($30,000) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following the Executive’s death and continuing for fifteen (15) years.

 

The Schedule A originally attached to the Agreement shall be replaced by the Schedule A attached hereto.

 

IN WITNESS WHEREOF, the Executive and a duly authorized representative of the Employer have executed this Amendment as indicated below:

 

Executive   Employer
       
/s/ J. Randy Woodson   By: /s/ L. Steven Lee
    Its: Compensation Committee Chairman

 

 

 

  

Salary Continuation Plan

Schedule A - Exhibit 10.24(a)

 

James Woodson                   
Birth Date:  xx/xx/1961     Early Termination   Disability   Change in Control   Death 

Plan Anniversary Date: Dec. 31

Normal Retirement Date:
04/21/2026, Age 65

Normal Retirement Payment:
Monthly for 15 Years

      Amount Payable Monthly
for 15 Years Upon
Separation		   Amount Payable Monthly
for 15 Years Upon
Separation		   Amount Payable Lump Sum
Upon Death		 
Values As Of  Age  Annual Benefit 1   Annual Benefit 1,2   Annual Benefit 1,2   Annual Benefit 1,2 
                        
4/1/2016  55   0    4,049    30,000    30,000 
12/31/2016  55   0    6,460    30,000    30,000 
12/31/2017  56   0    9,537    30,000    30,000 
12/31/2018  57   12,465    12,465    30,000    30,000 
12/31/2019  58   15,250    15,250    30,000    30,000 
12/31/2020  59   17,900    17,900    30,000    30,000 
12/31/2021  60   20,420    20,420    30,000    30,000 
12/31/2022  61   22,818    22,818    30,000    30,000 
12/31/2023  62   25,100    25,100    30,000    30,000 
12/31/2024  63   27,270    27,270    30,000    30,000 
12/31/2025  64   29,334    29,334    30,000    30,000 
4/21/2026  65   30,000    30,000    30,000    30,000 

 

The first line represents the plan values as of April 1, 2016.

1 The annual benefit amount will be distributed in 12 equal monthly payments for a total of 180 monthly payments.

2 Note that accounting rules may require an additional accrual at the time this benefit is triggered.

 

IF THERE IS A CONFLICT BETWEEN THIS SCHEDULE A AND THE AGREEMENT, THE TERMS AND PROVISIONS OF THE AGREEMENT SHALL PREVAIL. IF A TRIGGERING EVENT OCCURS, REFER TO THE AGREEMENT TO DETERMINE THE ACTUAL BENEFIT AMOUNT BASED ON THE DATE OF THE EVENT.

 

James Woodson: /s/ James Woodson   By: /s/ L. Steven Lee

 

Date:   3/29/16   Title: Chairman Compensation Committee

 

  Date: 3/29/16