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.