Modification and Termination of Executive Employment and Supplemental Compensation Agreements (Frank Basirico, Jr., Martin E. Plourd, James W. Andrews)
Effective May 26, 2009, executive officers Frank Basirico, Jr. and Martin E. Plourd agreed to reduce their annual base salaries by 10% and to forgo previously agreed stock options. Additionally, Basirico, Plourd, and James W. Andrews terminated their Executive Supplemental Compensation Agreements, which would have provided each with $100,000 per year for 15 years upon reaching age 65. These changes increase the Bank’s capital and end related annual accruals.
Exhibit 10.1
Effective May 26, 2009, each of the following executive officers has agreed to modify their existing employment agreements as follows:
a. Frank Basirico, Jr., Chief Executive Officer
(i) 10% annual base salary reduction from $290,000 to $261,000; and
(ii) forego receipt of a 50,000 share stock option (agreed upon with the Bank but not yet implemented)
b. Martin E. Plourd, President/Chief Operating Officer
(iii) 10% annual base salary reduction from $250,000 to $225,000; and
(iv) forego receipt of a 50,000 share stock option
Effective May 26, 2009, the following agreements were terminated at the request of each officer/party to his respective agreement.
| Officer/Party | Agreement Terminated | ||
| James W. Andrews | Executive Supplemental Compensation Agreement effective as of December 29, 2006, as amended, that provided for $100,000 per year for 15 years at age 65. | ||
| Frank Basirico, Jr. | Executive Supplemental Compensation Agreement effective as of December 29, 2006, as amended that provided for $100,000 per year for 15 years at age 65. | ||
| Martin E. Plourd | Executive Supplemental Compensation Agreement President/Chief Operating Officer effective as of December 29, 2006, as amended that provided for $100,000 per year for 15 years at age 65. |
These agreement terminations, along with the termination of other supplemental compensation agreements with other officers of the Bank, will add approximately $818,000 (less applicable taxes) to the Bank’s capital and will cause the accrual of approximately $364,000 (without consideration of any tax consequences) per year to cease.
