Management Retention Supplemental Retirement Income Salary Continuation Plan for Kevin Clark, President, Heritage Bank, F.S.B.

Contract Categories: Human Resources › Salary Continuation Agreements
Summary

This agreement between Heritage Bank, F.S.B. and its President, Kevin Clark, outlines a supplemental retirement income plan. The plan provides annual retirement benefits to Mr. Clark starting at age 62 for 15 years, with benefits increasing by 5% annually until retirement. It also includes family income protection and specifies terms for vesting, early retirement, disability, and change of control. The agreement details the accrual and vesting schedule, projected benefits, and tax implications, ensuring financial security for Mr. Clark and his beneficiaries upon retirement or other qualifying events.

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EX-10.5 7 ufc023963-ex10_5.txt MANAGEMENT PLAN EXHIBIT 10.5 [LOGO] BANK COMPENSATION STRATEGIESGROUP MANAGEMENT RETENTION SUPPLEMENTAL RETIREMENT INCOME SALARY CONTINUATION PLAN FOR KEVIN CLARK, PRESIDENT HERITAGE BANK, F.S.B. REVISED 1-10-96 Presented by: Timothy L. Voth Regional Director B.C.S. FINANCIAL INSTITUTION ASSOCIATIONS ENDORSEMENTS AMERICAN BANKERS ASSOCIATION - ALABAMA BANKERS ASSOCIATION - CALIFORNIA BANKERS ASSOCIATION - COLORADO BANKERS ASSOCIATION - CONNECTICUT BANKERS ASSOCIATION - FLORIDA BANKERS ASSOCIATION - FLORIDA LEAGUE OF FINANCIAL INSTITUTIONS - GEORGIA BANKERS ASSOCIATION - ILLINOIS COMMUNITY BANKERS ASSOCIATION - INDIANA BANKERS ASSOCIATION - IOWA INDEPENDENT BANKERS ASSOCIATION - IOWA LEAGUE OF SAVINGS INSTITUTIONS - KANSAS BANKERS ASSOCIATION - LOUISIANA BANKERS ASSOCIATION - MINNESOTA BANKERS ASSOCIATION - MINNESOTA LEAGUE OF SAVINGS AND COMMUNITY BANKERS - MISSISSIPPI BANKERS ASSOCIATION - MISSOURI BANKERS ASSOCIATION - MISSOURI LEAGUE OF SAVINGS INSTITUTIONS - MONTANA BANKERS ASSOCIATION - NEBRASKA BANKERS ASSOCIATION - NEW MEXICO BANKERS ASSOCIATION - NORTH DAKOTA BANKERS ASSOCIATION - OKLAHOMA BANKERS ASSOCIATION - PENNSYLVANIA BANKERS ASSOCIATION - SOUTH CAROLINA BANKERS ASSOCIATION - SOUTH DAKOTA BANKERS ASSOCIATION - TENNESSEE BANKERS ASSOCIATION - TEXAS BANKERS ASSOCIATION - UTAH BANKERS ASSOCIATION - VERMONT BANKERS ASSOCIATION - WASHINGTON BANKERS ASSOCIATION - WISCONSIN INDEPENDENT COMMUNITY BANKERS ASSOCIATION - WYOMING BANKERS ASSOCIATION [LOGO] P.O. Box 5428 Bend, OR 97708 ###-###-#### * Fax: (503) 389-6663 SUMMARY OF BENEFIT PLAN DESIGN SALARY CONTINUATION PLAN HERITAGE BANK, FSB Plan benefits: * Retirement income benefits are provided for selected key decision makers. * Family income protection is provided for participant's beneficiary. * Individual agreements specify: - Vesting - Incentives - Early retirement benefits - Disability benefits - Change of control provisions The following chart summarizes the retirement benefits for each plan participant.
CURRENT PRE RETIRE- PROJECTED DURATION TOTAL CURRENT ANNUAL RET MENT ANNUAL OF BENEFITS DIRECTOR AGE BENEFIT INFLTR AGE BENEFIT BENEFITS PAID - ----------------------------------------------------------------------------------------------- Kevin Clark 40 24,220 5.00% 62 67,476 15 years 1,012,140
ACCRUAL & VESTING SCHEDULE MANAGEMENT SUPPLEMENTAL RETIREMENT SALARY CONTINUATION PLAN PARTICIPANT: KEVIN CLARK BEGINNING AGE: 40 RETIREMENT AGE: 62 LENGTH OF BENEFIT: 15 YEARS BENEFIT AMOUNT: $24,220 PRE-RETIREMENT INFLATOR 5% RETIREMENT BENEFIT AT AGE 62 $67,476
PRE-RETIREMENT BENEFIT ACCRUAL/VESTING SCHEDULE A B C D E F G END OF CURRENT IMMEDIATE IMMEDIATE LUMP SUM ANNUAL PLAN VESTING YEAR LUMP SUM ANNUAL BENEFIT BENEFIT YEAR PERCENTAGE ACCRUAL BENEFIT BENEFIT AGE 62 AGE 63 - --------------------------------------------------------------------------------------------------------------------- 1 100 3,327 3,327 393 19,702 2,328 - --------------------------------------------------------------------------------------------------------------------- 2 100 3,805 7,132 843 38,805 4,586 - --------------------------------------------------------------------------------------------------------------------- 3 100 4,355 11,487 1,357 571,428 6,786 - --------------------------------------------------------------------------------------------------------------------- 4 100 4,990 16,477 1,947 75,685 8,944 - --------------------------------------------------------------------------------------------------------------------- 5 100 5,723 22,200 2,623 937,691 11,071 - --------------------------------------------------------------------------------------------------------------------- 6 100 6,571 28,771 3,400 111,561 13,183 - --------------------------------------------------------------------------------------------------------------------- 7 100 7,553 36,324 4,292 129,410 15,292 - --------------------------------------------------------------------------------------------------------------------- 8 100 8,695 45,019 5,320 147,361 17,413 - --------------------------------------------------------------------------------------------------------------------- 9 100 10,024 55,043 6,504 165,540 19,562 - --------------------------------------------------------------------------------------------------------------------- 10 100 11,577 66,619 7,872 184,085 21,753 - --------------------------------------------------------------------------------------------------------------------- 11 100 13,397 80,016 9,455 203,147 24,006 - --------------------------------------------------------------------------------------------------------------------- 12 100 15,540 95,556 11,292 222,897 26,340 - --------------------------------------------------------------------------------------------------------------------- 13 100 18,076 113,631 13,428 243,536 28,778 - --------------------------------------------------------------------------------------------------------------------- 14 100 21,097 134,728 15,921 265,300 31,350 - --------------------------------------------------------------------------------------------------------------------- 15 100 24,724 159,452 18,842 288,485 34,090 - --------------------------------------------------------------------------------------------------------------------- 16 100 29,125 188,577 22,284 313,472 37,043 - --------------------------------------------------------------------------------------------------------------------- 17 100 34,543 223,120 26,366 340,772 40,269 - --------------------------------------------------------------------------------------------------------------------- 18 100 41,346 264,467 31,252 371,117 43,854 - --------------------------------------------------------------------------------------------------------------------- 19 100 50,150 314,616 37,178 405,636 47,933 - --------------------------------------------------------------------------------------------------------------------- 20 100 62,118 376,734 44,518 446,277 52,736 - --------------------------------------------------------------------------------------------------------------------- 21 100 80,008 456,742 53,973 497,114 58,743 - --------------------------------------------------------------------------------------------------------------------- 22 100 114,272 571,014 67,476 571,014 67,476 - ---------------------------------------------------------------------------------------------------------------------
(c) Copyright 1996 BCS Group INDIVIDUAL PLAN ACCOUNTING SALARY CONTINUATION PLAN HERITAGE BANK, Fsb Kevin Clark - ----------------------------------------------------- --------Annual--------- Birth date: 09/16/55 Current salary: 24,220 Years of benefit: 15 Retirement age: 62 Curr annl benefit: 24,220 Benefit incr: 5.00% Age/Ins.age: 40/40 Projected salary: 67,476 Discount rate: 8.50% Years of accrual: 22 Proj annl benefit: 67,476 Corp. tax rate: 37.00%
ACCRUED CUMULATIVE PLAN ANNUAL BENEFIT ----PRE-TAX PLAN EXPENSE----- CUMULATIVE AFTER-TAX AGE YEAR BENEFIT LIABILITY ANNUAL CUMULATIVE TAX CREDIT EXPENSE - ------------------------------------------------------------------------------------------------------------------------------- 40 1 24,220 3,327 3,327 3,327 1,231 2,096 41 2 25,431 7,132 3,805 7,132 2,639 4,493 42 3 26,703 11,487 4,355 11,487 4,250 7,237 43 4 28,038 16,477 4,990 16,477 6,096 10,381 44 5 29,440 22,200 5,723 22,200 8,213 13,986 45 6 30,912 28,771 6,571 28,771 10,644 18,126 46 7 32,457 36,324 7,553 36,324 13,439 22,885 47 8 34,080 45,019 8,695 45,019 16,656 28,363 48 9 35,784 55,043 10,024 55,043 20,365 34,678 49 10 37,573 66,620 11,577 66,620 24,648 41,971 50 11 39,452 80,017 13,397 80,017 29,605 50,411 51 12 41,424 95,557 15,540 95,557 35,355 60,201 52 13 43,496 113,633 18,076 113,633 42,043 71,589 53 14 45,670 134,730 21,097 134,730 49,849 84,880 54 15 47,954 159,454 24,724 159,454 58,997 100,456 55 16 50,352 188,579 29,125 188,579 69,773 118,805 56 17 52,869 223,122 34,543 223,122 82,554 140,567 57 18 55,513 264,468 41,346 264,468 97,852 166,615 58 19 58,288 314,618 50,150 314,618 116,407 198,209 59 20 61,203 376,736 62,118 376,736 139,391 237,343 60 21 64,263 456,744 80,008 456,744 168,994 287,748 61 22 67,476 571,016 114,272 571,016 211,274 359,739 62 23 67,476 551,321 47,781 618,797 228,953 389,841 63 24 67,476 529,885 46,040 664,837 245,988 418,846 64 25 67,476 506,554 44,145 708,982 262,322 446,657 65 26 67,476 481,161 42,083 751,065 277,893 473,169 66 27 67,476 453,523 39,838 790,903 292,633 498,267 67 28 67,476 423,442 37,395 828,298 306,469 521,826 68 29 67,476 390,703 34,737 863,035 319,322 543,710 69 30 67,476 355,070 31,843 894,878 331,104 563,771 70 31 67,476 316,287 28,693 923,571 341,720 581,848 71 32 67,476 274,076 25,265 948,836 351,068 597,765 72 33 67,476 228,134 21,534 970,370 359,036 611,331 73 34 67,476 178,131 17,473 987,843 365,501 622,339 74 35 67,476 123,708 13,053 1,000,896 370,331 630,563 75 36 67,476 64,475 8,243 1,009,139 373,381 635,756 76 37 67,476 0 3,007 1,012,146 374,494 637,651
(c) Copyright 1996, BCS Group Inc.