AMENDMENT ONE TO TERRITORIAL SAVINGS BANK AMENDED AND RESTATED SUPPLEMENTAL EMPLOYEE RETIREMENT AGREEMENT FOR VERNONHIRATA
Exhibit 10.1
AMENDMENT ONE TO
TERRITORIAL SAVINGS BANK
AMENDED AND RESTATED
SUPPLEMENTAL EMPLOYEE RETIREMENT AGREEMENT
FOR VERNON HIRATA
WHEREAS, Territorial Savings Bank (the Bank), and Vernon Hirata, Executive Vice President and General Counsel of the Bank (the Executive) entered into the Territorial Savings Bank Amended and Restated Supplemental Employee Retirement Agreement for Vernon Hirata (the SERP), effective as of October 29, 2008; and
WHEREAS, the Agreement was a restatement of the Supplemental Employee Retirement Agreement entered into by the Bank and the Executive as of January 1, 2002 (the Predecessor Agreement); and
WHEREAS, Clark Consulting, the compensation consulting firm which drafted the Predecessor Agreement, recently informed the Bank and the Executive that there was a drafting error in the Predecessor Agreement, whereby the offsets that should have applied to the early retirement benefit were inadvertently not included in the relevant section of the Predecessor Agreement; and
WHEREAS, all of the required financial statement reporting and accruals, tax reporting and payments and benefit statement reporting have correctly been handled as if the offsets to the early retirement benefit had been included in the Predecessor Agreement, which was the original intent of the Bank and the Executive.
NOW THEREFORE, solely in order to correct the inadvertent drafting error, such that the Agreement correctly reflects the intent of the Bank and the Executive, the Agreement is hereby amended as follows, effective as of January 1, 2002.
1. | Section 2.2.1 of the Agreement is hereby amended to read as follows: |
2.2.1 Amount of Benefit. The Early Termination Benefit under this Section 2.2 is the annual amount equal to 65% of the Executives Final Average Compensation multiplied by a fraction not exceeding one, the numerator of which is the Executives completed Years of Service and the denominator of which is the Executives potential Years of Service determined as if the Executive remained employed by the Bank until the Executives Normal Retirement Date, minus Social Security Benefit minus Pension Offset. The Early Termination Benefit shall be paid for a term of certain of 15 years.
IN WITNESS WHEREOF, the Executive and the Bank have signed this Amendment on the dates set forth below.
TERRITORIAL SAVINGS BANK | ||||||||
March 30, 2011 | By: | /s/ Harold Ohama | ||||||
Date | Chairman, Compensation Committee of the Board | |||||||
March 30, 2011 | /s/ Vernon Hirata | |||||||
Date | Vernon Hirata |