ITEM 2.02 Results of Operations and Financial Condition
On May 2, 2024, Catalyst Bancorp, Inc. (the “Company”) announced its quarterly results for the quarter ended March 31, 2024. A copy of the related press release (the "Press Release") is attached as Exhibit 99.1 to this Current Report on Form 8-K. The Press Release attached hereto, which is incorporated herein by reference, is being furnished to the SEC and shall not be deemed "filed" for any purpose except as otherwise provided herein.
ITEM 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers; Compensatory Arrangements of Certain Officers
| (e) | Compensatory Arrangements of Certain Officers |
On May 2, 2024, Catalyst Bank (the “Bank”), the wholly owned subsidiary of Catalyst Bancorp, Inc. (the “Company”), entered into an employment agreement (the “Employment Agreement”) with Don Ledet, Chief Risk Officer (the “Executive”). The term of the Employment Agreement commences on May 2, 2024, and will expire on September 1, 2027, unless renewed or extended. Any such renewal or extension of the Employment Agreement will be reflected in an amendment or supplement to such agreement.
Prior to the expiration of the term of the Employment Agreement, the Board of Directors will review the agreements to determine whether to extend the term of the Employment Agreement for three additional years or such other time period mutually agreed upon.
Pursuant to the Employment Agreement, Mr. Ledet agrees to continue his service as Chief Risk Officer of the Bank for a term of three years ending May 1, 2027. Mr. Ledet’s agreement provides for a base salary of $150,000, which may be increased at the discretion of the Board of Directors of Catalyst Bank.
The Employment Agreement is terminable with or without cause by Catalyst Bank. The Executive has no right to compensation or other benefits pursuant to the Employment Agreement for any period after termination for cause, except for benefits that have vested and been earned prior to termination. The Employment Agreement provides that in the event of an involuntary termination of employment (including a voluntary termination by the Executive as a result of a material breach of the agreement by Catalyst Bank or for “good reason”, including a change in the Executive’s position, salary or duties without his or her consent), the Executive would be entitled to (1) a lump sum cash severance payment which is equal to twelve months of the Executive’s base salary as of the date of termination, subject to the Executive executing a release of any claims against Catalyst Bank or its affiliates and (2) continued health insurance coverage until the earlier of twelve months or the date the Executive receives substantially similar benefits from another employer.
The Employment Agreement provides that if the Executive’s employment terminates without cause or with good reason on the effective date of a change in control, as defined in the agreement, or within 30 calendar days after a change in control, then the Executive would be entitled to (1) a lump sum cash severance payment equal to 12 months of the greater of the Executive’s base salary at the time of the change in control or the date of his
