Document:

Form of United Community Bank Supplemental Executive Retirement Plan

 Exhibit 10.5 
  
 FORM OF 
 UNITED COMMUNITY BANK 
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
  
 Effective January 1, 2006 

 United Community Bank 
 Supplemental Executive Retirement Plan 
  
 Table of Contents 
  

					
	ARTICLE I	  	Introduction	  	1
			
	ARTICLE II	  	Definitions	  	1
			
	ARTICLE III	  	Eligibility and Participation	  	3
			
	ARTICLE IV	  	Benefits	  	4
			
	ARTICLE V	  	Accounts	  	5
			
	ARTICLE VI	  	Supplemental Benefit Payments	  	6
			
	ARTICLE VII	  	Claims Procedures	  	6
			
	ARTICLE VIII	  	Amendment and Termination	  	7
			
	ARTICLE IX	  	General Provisions	  	8

 ARTICLE I 
 INTRODUCTION 
  
 Section 1.01
Purpose, Design and Intent. 
  

	(a)	The purpose of the United Community Bank Supplemental Executive Retirement Plan (the “Plan”) is to assist United Community Bank (the “Bank”) and its affiliates
in retaining the services of key employees until their retirement, to induce such employees to use their best efforts to enhance the business of the Bank and its affiliates, and to provide certain supplemental retirement benefits to such employees.

  

	(b)	The Plan, in relevant part, is intended to constitute an unfunded “excess benefit plan” as defined in Section 3(36) of the Employee Retirement Income Security Act of
1974, as amended. In this respect, the Plan is specifically designed to provide certain key employees with retirement benefits that would have been provided under various tax-qualified retirement plans sponsored by the Bank but for the applicable
limitations placed on benefits and contributions under such plans by various provisions of the Internal Revenue Code of 1986, as amended. 

  
 ARTICLE II 
 DEFINITIONS

  
 Section 2.01 Definitions. In this Plan, whenever the
context so indicates, the singular or the plural number and the masculine or feminine gender shall be deemed to include the other, the terms “he,” “his,” and “him,” shall refer to a Participant or a beneficiary of a
Participant, as the case may be, and, except as otherwise provided, or unless the context otherwise requires, the capitalized terms shall have the following meanings: 
  

	(a)	“Affiliate” means any corporation, trade or business, which, at the time of reference, is together with the Bank, a member of a controlled group of
corporations, a group of trades or businesses (whether or not incorporated) under common control, or an affiliated service group, as described in Sections 414(b), 414(c), and 414(m) of the Code, respectively, or any other organization treated as a
single employer with the Bank under Section 414(o) of the Code. 

  

	(b)	“Applicable Limitations” means one or more of the following, as applicable: 

  

	 	(i)	the maximum limitations on annual additions to a tax-qualified defined contribution plan under Section 415(c) of the Code; 

  

	 	(ii)	the maximum limitation on the annual amount of compensation that may, under Section 401(a)(17) of the Code, be taken into account in determining contributions to and benefits
under tax-qualified plans; and 

  

	 	(iii)	the maximum limitations, under Sections 401(k), 401(m), or 402(g) of the Code, on pre-tax contributions that may be made to a qualified defined contribution plan.

  

	(c)	“Bank” means United Community Bank and its successors. 

  

	(d)	“Board of Directors” means the Board of Directors of the Bank. 

  

	(e)	“Change in Control” means the earliest occurrence of one of the following events: 

  

 1 

	 	(i)	Merger: The Company merges into or consolidates with another corporation, or merges another corporation into the Company, and as a result less than a majority of the combined
voting power of the resulting corporation immediately after the merger or consolidation is held by persons who were stockholders of the Company immediately before the merger or consolidation. 

  

	 	(ii)	Acquisition of Significant Share Ownership: There is filed or required to be filed, a report on Schedule 13D or another form or schedule (other than Schedule 13G) required
under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, if the schedule discloses that the filing person or persons acting in concert has or have become the beneficial owner of 25% or more of a class of the Company’s voting
securities, but this clause (b) shall not apply to beneficial ownership of Company voting shares held in a fiduciary capacity by an entity of which the Company directly or indirectly beneficially owns 50% or more of its outstanding voting
securities. 

  

	 	(iii)	Change in Board Composition: During any period of two consecutive years, individuals who constitute the Company’s Board of Directors at the beginning of the two-year
period cease for any reason to constitute at least a majority of the Company’s Board of Directors; provided, however, that for purposes of this clause (iii), each director who is first elected by the board (or first nominated by the board for
election by the stockholders) by a vote of at least two-thirds ( 2/3) of the directors who were directors at the
beginning of the two-year period shall be deemed to have also been a director at the beginning of such period; or 

  

	 	(iv)	Sale of Assets: The Company sells to a third party all or substantially all of its assets. 

  
 Notwithstanding anything in this Agreement to the contrary, in no event shall the conversion of the Bank from the mutual
holding company form of organization to the full stock holding company form of organization (including the elimination of the mutual holding company) constitute a “Change in Control” for purposes of this Agreement. 
  

	(f)	“Code” means the Internal Revenue Code of 1986, as amended. 

  

	(g)	“Committee” means the person(s) designated by the Board of Directors, pursuant to Section 9.02 of the Plan, to administer the Plan.

  

	(h)	“Common Stock” means the common stock of the Company. 

  

	(i)	“Company” means United Community Bancorp and its successors. 

  

	(j)	“Eligible Individual” means any Employee who participates in the ESOP or the 401(k) Plan, as the case may be, and whom the Board of Directors determines is
one of a “select group of management or highly compensated employees,” as such phrase is used for purposes of Sections 101, 201, and 301 of ERISA. 

  

	(k)	“Employee” means any person employed by the Bank or an Affiliate. 

  

	(l)	“Employer” means the Bank or Affiliate thereof that employs the Employee. 

  

	(m)	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

  

	(n)	“ESOP” means the United Community Bank Employee Stock Ownership Plan, as amended from time to time. 

  

 2 

	(o)	“ESOP Acquisition Loan” means a loan or other extension of credit incurred by the trustee of the ESOP in connection with the purchase of Common Stock on
behalf of the ESOP. 

  

	(p)	“ESOP Valuation Date” means any day as of which the investment experience of the trust fund of the ESOP is determined and individuals’ accounts under
the ESOP are adjusted accordingly. 

  

	(q)	“Effective Date” means January 1, 2006. 

  

	(r)	“Participant” means an Eligible Employee who is entitled to benefits under the Plan. 

  

	(s)	“Plan” means this United Community Bank Supplemental Executive Retirement Plan. 

  

	(t)	“401(k) Plan” means the United Community Bank 401(k) Profit-Sharing Plan and Trust, as amended from time to time. 

  

	(u)	“Supplemental ESOP Account” means an account established by an Employer, pursuant to Section 5.01 of the Plan, with respect to a Participant’s
Supplemental ESOP Benefit. 

  

	(v)	“Supplemental ESOP Benefit” means the benefit credited to a Participant pursuant to Section 4.01 of the Plan. 

  

	(w)	“Supplemental Savings Benefit” means the benefit credited to a Participant pursuant to Section 4.03 of the Plan. 

  

	(x)	“Supplemental Savings Account” means an account established by an Employer, pursuant to Section 5.03 of the Plan, with respect to a Participant’s
Supplemental Savings Benefit. 

  

	(y)	“Supplemental Stock Ownership Account” means an account established by an Employer, pursuant to Section 5.02 of the Plan, with respect to a
Participant’s Supplemental Stock Ownership Benefit. 

  

	(z)	“Supplemental Stock Ownership Benefit” means the benefit credited to a Participant pursuant to Section 4.02 of the Plan. 

  
 ARTICLE III 
 ELIGIBILITY AND PARTICIPATION 
  
 Section 3.01 Eligibility and Participation. 
  

	(a)	Each Eligible Employee may participate in the Plan. An Eligible Employee shall become a Participant in the Plan upon designation as such by the Board of Directors. An Eligible
Employee whom the Board of Directors designates as a Participant in the Plan shall commence participation as of the date established by the Board of Directors. The Board of Directors shall establish an Eligible Employee’s date of participation
at the same time it designates the Eligible Employee as a Participant in the Plan. 

  

	(b)	The Board of Directors may, at any time, designate an Eligible Employee as a Participant for any or all supplemental benefits provided for under Article IV of the Plan.

  

 3 

 ARTICLE IV 
 BENEFITS 
  
 Section 4.01
Supplemental ESOP Benefit. 
  
 As of the last day of each plan year of
the ESOP, the Employer shall credit the Participant’s Supplemental ESOP Account with a Supplemental ESOP Benefit equal to the excess of (a) over (b), where: 
  

	(a)	Equals the annual contributions made by the Employer and/or the number of shares of Common Stock released for allocation in connection with the repayment of an ESOP Acquisition Loan
that would otherwise be allocated to the accounts of the Participant under the ESOP for the applicable plan year, if the provisions of the ESOP were administered without regard to any of the Applicable Limitations; and 

  

	(b)	Equals the annual contributions made by the Employer and/or the number of shares of common stock released for allocation in connection with the repayment of an ESOP Acquisition Loan
that are actually allocated to the accounts of the Participant under the provisions of the ESOP for that particular plan year, after giving effect to any reduction of such allocation required by any of the Applicable Limitations.

  
 Section 4.02 Supplemental Stock Ownership
Benefit. 
  

	(a)	Upon a Change in Control, the Employer shall credit to the Participant’s Supplemental Stock Ownership Account a Supplemental Stock Ownership Benefit equal to (i) less
(ii), the result of which is multiplied by (iii), where: 

  

	 	(i)	Equals the total number of shares of Common Stock acquired with the proceeds of all ESOP Acquisition Loans (together with any dividends, cash proceeds, or other medium related to
such ESOP Acquisition Loans) that would have been allocated or credited for the benefit of the Participant under the ESOP and/or this Plan, as the case may be, had the Participant continued in the employ of the Employer through the first ESOP
Valuation Date following the last scheduled payment of principal and interest on all ESOP Acquisition Loans outstanding at the time of the Change in Control; and 

  

	 	(ii)	Equals the total number of shares of Common Stock acquired with the proceeds of all ESOP Acquisition Loans (together with any dividends, cash proceeds, or other medium related to
such ESOP Acquisition Loans) and allocated for the benefit of the Participant under the ESOP and/or this Plan, as the case may be, as of the first ESOP Valuation Date following the Change in Control; and 

  

	 	(iii)	Equals the fair market value of the Common Stock immediately preceding the Change in Control. 

  

	(b)	For purposes of clause (i) of subsection (a) of this Section 4.02, the total number of shares of Common Stock shall be determined by multiplying the sum of
(i) and (ii) by (iii), where: 

  

	 	(i)	Equals the average of the total shares of Common Stock acquired with the proceeds of an ESOP Acquisition Loan and allocated for the benefit of the Participant under the ESOP as of
the three most recent ESOP Valuation Dates preceding the Change in Control (or lesser number if the Participant has not participated in the ESOP for three full years); 

  

 4 

	 	(ii)	Equals the average number of shares of Common Stock credited to the Participant’s Supplemental ESOP Account for the three most recent plan years of the ESOP (such that the
three most recent plan years coincide with the three most recent ESOP Valuation Dates referred to in (i) above); and 

  

	 	(iii)	Equals the original number of scheduled annual payments on the ESOP Acquisition Loan. 

  
 Section 4.03 Supplemental Savings Benefit. 
  
 A Participant’s Supplemental Savings Benefit under the Plan shall be equal to the excess of (a) over (b), where: 
  

	(a)	Equals the sum of the matching contributions and other contributions of the Employer that would otherwise be allocated to an account of the Participant under the 401(k) Plan for a
particular year, if the provisions of the 401(k) Plan were administered without regard to any of the Applicable Limitations; and 

  

	(b)	Equals the sum of the matching contributions and other contributions of the Employer that are actually allocated on account of the Participant under the provisions of the 401(k)
Plan for that particular year, after giving effect to any reduction of such allocation required by any of the Applicable Limitations. 

  
 ARTICLE V 
 ACCOUNTS 

 
 Section 5.01 Supplemental ESOP Benefit Account. 
  
 For each Participant who is credited with a benefit pursuant to Section 4.01 of the
Plan, the Employer shall establish, as a memorandum account on its books, a Supplemental ESOP Account. Each year, the Committee shall credit to the Participant’s Supplemental ESOP Account the amount of benefits determined under
Section 4.01 of the Plan for that year. The Committee shall credit the account with an amount equal to the appropriate number of shares of Common Stock or other medium of contribution that would have otherwise been made to the
Participant’s accounts under the ESOP but for the limitations imposed by the Code. Shares of Common Stock shall be valued under this Plan in the same manner as under the ESOP. Cash contributions credited to a Participant’s Supplemental
ESOP Account shall be credited annually with interest at a rate equal to the combined weighted return provided to the Participant’s non-stock accounts under the ESOP. 
  
 Section 5.02 Supplemental Stock Ownership Account. 
  
 The Employer shall establish, as a memorandum account on its books, a Supplemental Stock Ownership Account. Upon a Change in Control, the
Committee shall credit to the Participant’s Supplemental Stock Ownership Account the amount of benefits determined under Section 4.02 of the Plan. The Committee shall credit the account with an amount equal to the appropriate number of
shares of Common Stock or other medium of contribution that would have otherwise been made to the Participant’s accounts under the ESOP. Shares of Common Stock shall be valued under this Plan in the same manner as under the ESOP. Cash
contributions credited to a Participant’s Supplemental Stock Ownership Account shall be credited annually with interest at a rate equal to the combined weighted return provided to the Participant’s non-stock accounts under the ESOP.

  

 5 

 Section 5.03 Supplemental Savings Account. 
  
 The Employer shall establish a memorandum account, the “Supplemental Savings
Account” for each Participant on its books, and each year the Committee will credit the amount of contributions determined under Section 4.03 of the Plan. Contributions credited to a Participant’s Supplemental Savings Account shall be
credited monthly with interest at a rate equal to the combined weighted return provided to the Participant’s account(s) under the 401(k) Plan. 
  
 ARTICLE VI 
 SUPPLEMENTAL BENEFIT
PAYMENTS 
  
 Section 6.01 Payment of Supplemental ESOP Benefit.

  

	(a)	A Participant’s Supplemental ESOP Benefit shall be paid to the Participant or, in the event of the Participant’s death, to his beneficiary, in the same form, time and
medium (i.e., cash and/or shares of Common Stock) as his benefits are paid under the ESOP. 

  

	(b)	A Participant shall have a non-forfeitable right to the Supplemental ESOP Benefit credited to him under this Plan in the same percentage as he has benefits allocated to him under
the ESOP at the time the benefits become distributable to him under the ESOP. 

  
 Section 6.02 Payment of Supplemental Stock Ownership Benefit. 
  

	(a)	A Participant’s Supplemental Stock Ownership Benefit shall be paid to the Participant or, in the event of the Participant’s death, to his beneficiary, in the same form,
time and medium (i.e., cash and/or shares of Common Stock) as his benefits are paid under the ESOP. 

  

	(b)	A Participant shall always have a fully non-forfeitable right to the Supplemental Stock Ownership Benefit credited to him under this Plan. 

  
 Section 6.03 Payment of Supplemental Savings Benefit. 
  

	(a)	A Participant’s Supplemental Savings Benefit shall be paid to the Participant or, in the event of the Participant’s death, to his beneficiary, in the same form and at the
same time as his benefits are paid under the 401(k) Plan. 

  

	(b)	A Participant shall have a non-forfeitable right to his Supplemental Savings Benefit under this Plan in the same percentage as he has to his matching contributions under the 401(k)
Plan at the time the benefits become distributable to him under the 401(k) Plan. 

  
 ARTICLE VII 
 CLAIMS PROCEDURES 
  
 Section 7.01 Claims Reviewer. 
  

For purposes of handling claims with respect to this Plan, the “Claims Reviewer” shall be the Committee, unless the Committee designates another person or
group of persons as Claims Reviewer. 
  

 6 

 Section 7.02 Claims Procedure. 
  

	(a)	An initial claim for benefits under the Plan must be made by the Participant or his beneficiary or beneficiaries in accordance with the terms of this Section 7.02.

  

	(b)	Not later than ninety (90) days after receipt of such a claim, the Claims Reviewer will render a written decision on the claim to the claimant, unless special circumstances
require the extension of such 90-day period. If such extension is necessary, the Claims Reviewer shall provide the Participant or the Participant’s beneficiary or beneficiaries with written notification of such extension before the expiration
of the initial 90-day period. Such notice shall specify the reason or reasons for the extension and the date by which a final decision can be expected. In no event shall such extension exceed a period of ninety (90) days from the end of the
initial 90-day period. 

  

	(c)	In the event the Claims Reviewer denies the claim of a Participant or any beneficiary in whole or in part, the Claims Reviewer’s written notification shall specify, in a manner
calculated to be understood by the claimant, the reason for the denial; a reference to the Plan or other document or form that is the basis for the denial; a description of any additional material or information necessary for the claimant to perfect
the claim; an explanation as to why such information or material is necessary; and an explanation of the applicable claims procedure. 

  

	(d)	Should the claim be denied in whole or in part and should the claimant be dissatisfied with the Claims Reviewer’s disposition of the claimant’s claim, the claimant may
have a full and fair review of the claim by the Committee upon written request submitted by the claimant or the claimant’s duly authorized representative and received by the Committee within sixty (60) days after the claimant receives
written notification that the claimant’s claim has been denied. In connection with such review, the claimant or the claimant’s duly authorized representative shall be entitled to review pertinent documents and submit the claimant’s
views as to the issues, in writing. The Committee shall act to deny or accept the claim within sixty (60) days after receipt of the claimant’s written request for review unless special circumstances require the extension of such 60-day
period. If such extension is necessary, the Committee shall provide the claimant with written notification of such extension before the expiration of such initial 60-day period. In all events, the Committee shall act to deny or accept the claim
within 120 days of the receipt of the claimant’s written request for review. The action of the Committee shall be in the form of a written notice to the claimant and its contents shall include all of the requirements for action on the original
claim. 

  

	(e)	In no event may a claimant commence legal action for benefits the claimant believes are due the claimant until the claimant has exhausted all of the remedies and procedures afforded
the claimant by this Article VII. 

  
 ARTICLE VIII

 AMENDMENT AND TERMINATION 
  
 Section 8.01 Amendment of the Plan. 
  
 The Bank may from time to time and at any time amend the Plan; provided, however, that such amendment may not adversely affect the rights of any Participant or
beneficiary with respect to any benefit under the Plan to which the Participant or beneficiary may have previously become entitled prior to the effective date of such amendment without the consent of the Participant or beneficiary. The Committee
shall be authorized to make minor or administrative changes to the Plan, as well as amendments required by applicable federal or state law (or authorized or made desirable by such 

  

 7 

 
statutes); provided, however, that such amendments must subsequently be ratified by the Board of Directors. 
  
 Section 8.02 Termination of the Plan. 
  
 The Bank may terminate the Plan at any time; provided, however, that such termination may
not adversely affect the rights of any Participant or beneficiary with respect to any benefit under the Plan to which the Participant or beneficiary may have previously become entitled prior to the effective date of such termination without the
consent of the Participant or beneficiary. Any amounts credited to the supplemental accounts of any Participant shall remain subject to the provisions of the Plan and no distribution of benefits shall be accelerated because of termination of the
Plan. 
  
 Section 8.03 Special Transition Rule Relating to
Section 409A. 
  
 The Bank intends this Plan to conform in all
respects with Section 409A of the Internal Revenue Code of 1986, as amended, in both form and operation. Notwithstanding any other provision in this Plan, the Bank reserves the right to amend any provision of the Plan or take any other action
the Board of Trustees deems appropriate to ensure compliance with Section 409A, including altering the time and form of any distribution under the Plan. 
  
 ARTICLE IX 
 GENERAL PROVISIONS

  
 Section 9.01 Unfunded, Unsecured Promise to Make Payments in
the Future. 
  
 The right of a Participant or any beneficiary to receive
a distribution under this Plan shall be an unsecured claim against the general assets of the Bank or its Affiliates, and neither a Participant, nor his designated beneficiary or beneficiaries, shall have any rights in or against any amount credited
to any account under this Plan or any other assets of the Bank or an Affiliate. The Plan at all times shall be considered entirely unfunded both for tax purposes and for purposes of Title I of ERISA. Any funds invested hereunder shall continue for
all purposes to be part of the general assets of the Bank or an Affiliate and available to its general creditors in the event of bankruptcy or insolvency. Accounts under this Plan and any benefits which may be payable pursuant to this Plan are not
subject in any manner to anticipation, sale, alienation, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of a Participant or a Participant’s beneficiary. The Plan constitutes a mere promise by the Bank or
Affiliate to make benefit payments in the future. No interest or right to receive a benefit may be taken, either voluntarily or involuntarily, for the satisfaction of the debts of, or other obligations or claims against, such Participant or
beneficiary, including claims for alimony, support, separate maintenance and claims in bankruptcy proceedings. 
  
 Section 9.02 Committee as Plan Administrator. 
  

	(a)	The Plan shall be administered by the Committee designated by the Board of Directors of the Bank. 

  

	(b)	 The Committee shall have the authority, duty and power to interpret and construe the provisions of the Plan as it deems appropriate. The Committee shall have the
duty and responsibility of maintaining records, making the requisite calculations and disbursing the payments hereunder. In addition, the Committee shall have the authority and power to delegate any of its administrative duties to employees of the
Bank or an Affiliate, as they may deem appropriate. The Committee shall be entitled to rely on all tables, valuations, certificates, opinions, data and reports furnished 

  

 8 

	 	 
by any actuary, accountant, controller, counsel or other person employed or retained by the Bank with respect to the Plan. The interpretations,
determinations, regulations and calculations of the Committee shall be final and binding on all persons and parties concerned. 

  
 Section 9.03 Expenses. 
  
 Expenses of administration of the Plan shall be paid by the Bank or an Affiliate. 
  

Section 9.04 Statements. 
  
 The Committee shall furnish individual annual statements of accrued benefits to each Participant, or current beneficiary, in such form as determined by the Committee or
as required by law. 
  
 Section 9.05 Rights of Participants and
Beneficiaries. 
  

	(a)	The sole rights of a Participant or beneficiary under this Plan shall be to have this Plan administered according to its provisions and to receive whatever benefits he or she may be
entitled to hereunder. 

  

	(b)	Nothing in the Plan shall be interpreted as a guaranty that any funds in any trust which may be established in connection with the Plan or assets of the Bank or an Affiliate will be
sufficient to pay any benefit hereunder. 

  

	(c)	The adoption and maintenance of this Plan shall not be construed as creating any contract of employment or service between the Bank or an Affiliate and any Participant or other
individual. The Plan shall not affect the right of the Bank or an Affiliate to deal with any Participants in employment or service respects, including their hiring, discharge, compensation, and other conditions of employment or service.

  
 Section 9.06 Incompetent Individuals.

  
 The Committee may, from time to time, establish rules and procedures
which it determines to be necessary for the proper administration of the Plan and the benefits payable to a Participant or beneficiary in the event that such Participant or beneficiary is declared incompetent and a conservator or other person is
appointed and legally charged with that Participant’s or beneficiary’s care. Except as otherwise provided for herein, when the Committee determines that such Participant or beneficiary is unable to manage his financial affairs, the
Committee may pay such Participant’s or beneficiary’s benefits to such conservator, person legally charged with such Participant’s or beneficiary’s care, or institution then contributing toward or providing for the care and
maintenance of such Participant or beneficiary. Any such payment shall constitute a complete discharge of any liability of the Bank or an Affiliate and the Plan for such Participant or beneficiary. 
  
 Section 9.07 Sale, Merger or Consolidation of the Bank. 
  
 The Plan may be continued after a sale of assets of the Bank, or a merger or consolidation
of the Bank into or with another corporation or entity only if, and to the extent that, the transferee, purchaser or successor entity agrees to continue the Plan. Additionally, upon a merger, consolidation or other change in control any amounts
credited to Participant’s deferral accounts shall be placed in a grantor trust to the extent not already in such a trust. In the event that the Plan is not continued by the transferee, purchaser or successor entity, then the Plan shall be
terminated subject to the provisions of Section 8.02 of the Plan. Any legal fees incurred by a Participant in determining benefits to which such Participant is entitled under 

  

 9 

 
the Plan following a sale, merger, or consolidation of the Bank or an Affiliate of which the Participant is an Employee or, if applicable, a member of the
Board of Directors, shall be paid by the resulting or succeeding entity. 
  
 Section 9.08 Location of Participants. 
  
 Each
Participant shall keep the Bank informed of his current address and the current address of his designated beneficiary or beneficiaries. The Bank shall not be obligated to search for any person. If such person is not located within three
(3) years after the date on which payment of the Participant’s benefits payable under this Plan may first be made, payment may be made as though the Participant or his beneficiary had died at the end of such three-year period. 

 
 Section 9.09 Liability of the Bank and its Affiliates. 
  
 Notwithstanding any provision herein to the contrary, neither the Bank nor any individual
acting as an employee or agent of the Bank shall be liable to any Participant, former Participant, beneficiary, or any other person for any claim, loss, liability or expense incurred in connection with the Plan, unless attributable to fraud or
willful misconduct on the part of the Bank or any such employee or agent of the Bank. 
  
 Section 9.10 Governing Law. 
  
 All questions
pertaining to the construction, validity and effect of the Plan shall be determined in accordance with the laws of the United States and, to the extent not preempted by such laws, by the laws of the State of Indiana. 
  

 10 

 Having been adopted by its Board of Directors, this Plan is executed by its duly authorized officer this
         day of                     , 2006. 
  

									
	 Attest:
	 	 	 	UNITED COMMUNITY BANK
				
	 	 	 	 	 By:
	 	 
	Corporate Secretary	 	 	 	 	 	 For the Entire Board of Directors

  

 11Form of United Community Bancorp Employment Agreement

 Exhibit 10.6 
  
 FORM OF 
 COMPANY EMPLOYMENT AGREEMENT 
  
 This Employment
Agreement (hereinafter referred to as this “Agreement”), is entered into this        day of             , 2006, by and between United
Community Bancorp, a federal chartered corporation, (hereinafter referred to as the “Company”), and
                        , an individual (hereinafter referred to as the “Employee”); 
  
 WITNESSETH: 
  
 WHEREAS, as a result of the skill, knowledge and experience of the Employee,
the Board of Directors of the Company desires to retain the services of the Employee as the
                                 of the Company; 
  
 WHEREAS, the Employee desires to serve as the
                                 of the Company; and 
  
 WHEREAS, the Employee and the Company desire to enter into this Agreement to
set forth the terms and conditions of the employment relationship between the Company and the Employee; 
  
 NOW, THEREFORE, in consideration of the promises and mutual covenants herein contained, the Company and the Employee hereby agree as follows: 

 
 1. Employment and Term. 
  
 (a) Term. Upon the terms and subject to the conditions of this
Agreement, the Company hereby employs the Employee, and the Employee hereby accepts employment, as the President/Chief Executive Officer of the Company. The term of this Agreement shall commence on
                    , 2006, and shall end on
                    , 200_, unless extended by the Company, with the consent of the Employee, as provided in subsection (b) of this
Section 1 (hereinafter referred to, together with such extensions, as the “Term”). 
  
 (b) Extension. On or before each anniversary of the date of this Agreement, the Board of Directors of the Company shall review this Agreement and,
upon approval by the Board, shall extend the term of this Agreement for a one-year period beyond the then effective expiration date. Any such extension shall be subject to the written consent of the Employee. The Board shall document its reasons for
extending the term of this Agreement in the minutes of the meeting at which such action is taken. 
  
 2. Duties of the Employee. 
  
 (a) General Duties and Responsibilities. The Employee shall serve as the President/Chief Executive Officer of the Company. Subject to the direction
of the Board, the Employee shall perform all duties and shall have all powers which are commonly incident to the office of President/Chief Executive Officer or which, consistent therewith, are delegated to him by the Board. 
  
 (b) Devotion of Entire Time to the Business of the Company and its
Affiliates. The Employee shall devote his entire productive time, ability and attention during normal business hours throughout the Term to the faithful performance of his duties under this Agreement. The Employee shall not directly or
indirectly render any services of a business, commercial or professional nature to any person or organization other than the Company or any affiliates without the prior written consent of the Board; provided, however, that the Employee shall not be
precluded from (i) vacations and other 

 
leave time in accordance with Section 3(d) below, (ii) reasonable participation in community, civic, charitable or similar organizations,
(iii) reasonable participation in industry-related activities, including, but not limited to, attending state and national trade association meetings and serving as an officer, director or trustee of a state or national trade association or
Federal Home Loan Bank, (iv) serving as an officer or director of any affiliate of the Company and receiving a salary, director’s fees or other compensation or benefits, as appropriate, or (v) pursuing personal investments which do
not interfere or conflict with the performance of the Employee’s duties to the Company or its affiliates. 
  
 3. Compensation. 
  
 (a) Base Salary. The Employee shall receive during the Term an annual salary payable in equal installments not less often than monthly. The amount
of such annual salary shall be $             until changed by the Board in accordance with Section 3(b) below. 
  
 (b) Periodic Salary Review. The annual salary of the Employee shall be reviewed by the Board from time to time
throughout the Term, but not less often than once every three years, and shall be set at an amount not less than $            , based upon the Employee’s individual performance
and such other factors as the Board may deem appropriate (hereinafter referred to as the “Periodic Review”). The results of the Periodic Review shall be reflected in the minutes of the Board. 
  
 (c) Employee Benefit Programs. During the Term, the Employee shall be
entitled to participate in all formally established employee benefit, bonus, pension and profit sharing plans and similar programs that are maintained by the Company or its affiliates from time to time and all employee benefit plans or programs
hereafter adopted in writing by the Board for which senior management personnel are eligible, including any employee stock ownership plan, stock option plan or other stock benefit plan (hereinafter collectively referred to as “Benefit
Plans”), in accordance with the terms and conditions of such Benefit Plans. Notwithstanding any statement to the contrary contained elsewhere in this Agreement, the Company or its affiliates may at any time discontinue or terminate any Benefit
Plan now existing or hereafter adopted, to the extent permitted by the terms of such Benefit Plan, and shall not be required to compensate the Employee for such discontinuance or termination to the extent such discontinuance or termination pertains
to all employees who are eligible participants at the time. 
  
 (d) Vacation and Sick Leave. The Employee shall be entitled, without loss of pay, to be absent voluntarily from the performance of his duties under this Agreement, in accordance with the policies periodically established by the Board
for senior management. The Employee shall be entitled to annual sick leave as established by the Board for senior management. 
  
 (e) Expenses. In addition to any compensation received under Section 3(d), the Employee shall be paid or reimbursed for all reasonable travel,
entertainment and miscellaneous expenses incurred in connection with the performance of his duties under this Agreement, including participation in industry-related activities. 
  
 4. Termination of Employment. 
  
 (a) General. The employment of the Employee shall terminate at any time during the Term (i) at the option of the
Company, upon the delivery by the Company of written notice of termination to the Employee, or (ii) at the option of the Employee, upon delivery by the Employee of written notice of termination to the Company if, in connection with a Change in
Control (hereinafter defined), the present capacity or circumstances in which the Employee is employed are materially adversely changed (including, but not limited to, a material reduction in responsibilities or authority or the assignment of

  

 2 

 
duties or responsibilities substantially inconsistent with those normally associated with the position of President/Chief Executive Officer of the Company,
change of title or removal as a director of the Company, the requirement that the Employee regularly perform his principal executive functions more than thirty-five (35) miles from his primary office immediately preceding the Change in Control
or the Employee’s compensation or other benefits provided under this Agreement are reduced, unless the benefit reductions are part of a company-wide reduction. For purposes of this Agreement, an event shall be deemed to have occurred “in
connection with a Change in Control” if such event occurs within one year before or after a Change in Control. The following subsections (i), (ii) and (iii) and (iv) of this Section 4(a) shall govern the obligations of the
Company to the Employee upon the occurrence of the events described in such subparagraphs: 
  
 (i) Termination for Cause. In the event that the Company terminates the employment of the Employee during the Term because of the
Employee’s personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure or refusal to perform the duties and responsibilities assigned in this Agreement, willful violation of any
law, rule or regulation (other than traffic violations or other minor offenses), or final cease-and-desist order or material breach of any provision of this Agreement (hereinafter collectively referred to as “Cause”), the Employee shall
not receive, and shall have no right to receive, any compensation or other benefits for any period after such termination. 
  
 (ii) Termination in Connection with Change in Control. In the event that the employment of the Employee is terminated by the
Company in connection with a Change in Control for any reason other than Cause or is terminated by the Employee as provided in Section 4(a) above, then the following shall occur: 
  

	 	(A)	The Company shall promptly pay to the Employee or to his beneficiaries, dependents or estate an amount equal to the product of 2.99 multiplied by the Employee’s “base
amount” as defined in Section 280G(b)(3) of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (hereinafter collectively referred to as “SECTION 280G”); 

  

	 	(B)	The Employee, his dependents, beneficiaries and estate shall continue to be covered at its expense under all health, life, disability and other benefit plans of the Company in which
the Employee was a participant prior to the effective date of the termination of his employment as if the Employee were still employed under this Agreement until the earlier of the expiration of the Term or the date on which the Employee is included
in another employer’s benefit plans as a full-time employee; and 

  

	 	(C)	The Employee shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise, nor shall any amounts received from
other employment or otherwise by the Employee offset in any manner the obligations of the Company hereunder, except as specifically stated in subparagraph (II) above. 

  

 3 

 (iii) Termination not in Connection with Change in Control. In the event that the
employment of the Employee is terminated before the expiration of the Term for any reason other than death, termination for Cause or termination in connection with a Change in Control, then the following shall occur: 
  

	 	(A)	The Company shall be obligated to continue to pay to the Employee, his designated beneficiaries or his estate, on at least a monthly basis until the expiration of the Term, the
annual salary in effect at the time of termination pursuant to Section 3(b) above, plus a cash bonus equal to the cash bonus, if any, paid to the Employee in the twelve month period prior to the termination of employment;

  

	 	(B)	The Company shall continue to provide to the Employee, at its expense, health, life, disability and other benefits substantially equal to those being provided to the Employee at the
date of termination of his employment until the earliest to occur of the expiration of the Term or the date on which the Employee is included in another employer’s benefit plans as a full-time employee; and 

  

	 	(C)	The Employee shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise, nor shall any amounts received from
other employment or otherwise by the Employee offset in any manner the obligations of the Company hereunder, except as specifically stated in subparagraph II above. 

  
 (iv) Death of the Employee. The Term shall automatically expire upon the death of the Employee. In
such event, the Employee’s estate shall be entitled to receive the amount of the annual salary that the Employee would have received through the last day of the third calendar month following the month in which the death occurred, except as
otherwise specified herein. 
  
 (v)
“Golden Parachute” Provision. In the event that any payments pursuant to this Section 4 would result in the imposition of a penalty tax pursuant to SECTION 280G, such payments shall be reduced to the maximum amount which may be
paid under SECTION 280G without exceeding such limits. Any payments made to the Employee pursuant to this Agreement are subject to and conditioned upon their compliance with 12 U.S.C. § 1828(k) and any regulations promulgated thereunder.

  
 (vi) Definition of “Change in
Control”. For purposes of this Agreement, a Change in Control means any of the following events: 
  

	 	(A)	Merger: The Company merges into or consolidates with another corporation, or merges another corporation into the Company, and as a result less than a majority of the combined voting
power of the resulting corporation immediately after the merger or consolidation is held by persons who were stockholders of the Company immediately before the merger or consolidation. 

  

	 	(B)	 Acquisition of Significant Share Ownership: There is filed, or is required to be filed, a report on Schedule 13D or another form or 

  

 4 

	 	 
schedule (other than Schedule 13G) required under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, if the schedule discloses that the filing
person or persons acting in concert has or have become the beneficial owner of 25% or more of a class of the Company’s voting securities, but this clause (B) shall not apply to beneficial ownership of Company voting shares held in a
fiduciary capacity by an entity of which the Company directly or indirectly beneficially owns 50% or more of its outstanding voting securities. 

  

	 	(C)	Change in Board Composition: During any period of two consecutive years, individuals who constitute the Company’s Board of Directors at the beginning of the two-year period
cease for any reason to constitute at least a majority of the Company’s Board of Directors; provided, however, that for purposes of this clause (C), each director who is first elected by the board (or first nominated by the board for election
by the stockholders) by a vote of a least two-thirds (2/3) of the directors who were directors at the beginning of the two-year period shall be deemed to have also been a director at the beginning of such period; or 

  

	 	(D)	Sale of Assets: The Company sells to a third party all or substantially all of its assets. 

  
 (vii) Termination by Employee. If the Employee terminates this Agreement without the written consent
of the Company, other than pursuant to Section 4(a)(ii) of this Agreement, the Employee shall not engage in the financial institutions’ business as a director, officer, employee or consultant for any business or enterprise which competes
with the principal business of the Company or any of its subsidiaries within Dearborn County, Indiana or within thirty (30) miles of the principal business location of Company, for the unexpired term of this Agreement. This provision shall not
apply in the event of the termination of the employment of the Employee by the Company prior to the expiration of the Term or the termination of the employment of the Employee by the Employee pursuant to Section 4(a)(ii) of this Agreement.

  
 5. Consolidation, Merger or Sale of Assets.
Nothing in this Agreement shall preclude the Company from consolidating with, merging into, or transferring all, or substantially all, of its assets to another corporation that assumes all of its obligations and undertakings hereunder. Upon such
a consolidation, merger or transfer of assets, the term “Company” as used herein, shall mean such other corporation or entity, and this Agreement shall continue in full force and effect. 
  
 6. Confidential Information. The Employee acknowledges that
during his employment he will learn and have access to confidential information regarding the Company and its affiliates, and their customers and businesses. The Employee agrees and covenants not to disclose or use for his own benefit, or the
benefit of any other person or entity, any confidential information, unless or until the Company consents to such disclosure or use of such information is otherwise legally in the public domain. The Employee shall not knowingly disclose or reveal to
any unauthorized person any confidential information relating to the Company or its affiliates, or to any of the businesses operated by them, and the Employee acknowledges that such information constitutes the exclusive property of the Company. The
Employee shall not otherwise knowingly act or conduct himself to the material detriment of the Company or its affiliates or in a manner which is inimical or contrary to the interests of the Company or its affiliates. 
  

 5 

 7. Non-assignability. Neither this Agreement nor any right or interest hereunder shall be
assignable by the Employee, his beneficiaries or legal representatives without the Company’s prior written consent; provided, however, that nothing in this Section 8 shall preclude the Employee from designating a beneficiary to receive any
benefits payable hereunder upon his death or the executors, administrators or other legal representatives of the Employee or his estate from assigning any rights hereunder to the person or persons entitled thereto. 
  
 8. No Attachment. Except as required by law, no right to
receive payment under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge or hypothecation or to execution, attachment, levy, or similar process of assignment by operation of law,
and any attempt, voluntary or involuntary, to effect any such action shall be null, void and of no effect. 
  
 9. Binding Agreement. This Agreement shall be binding upon, and inure to the benefit of, the Employee and the Company and their respective
permitted successors and assigns. 
  
 10. Amendment of
Agreement. This Agreement may not be modified or amended, except by an instrument in writing signed by the parties hereto. 
  
 11. Waiver. No term or condition of this Agreement shall be deemed to have been waived, nor shall there be an estoppel against the
enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written waiver shall be deemed a continuing waiver, unless specifically stated therein, and each waiver shall
operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than the act specifically waived. 
  
 12. Severability. If, for any reason, any provision of this
Agreement is held invalid, such invalidity shall not affect the other provisions of this Agreement not held so invalid, and each such other provision shall, to the full extent consistent with applicable law, continue in full force and effect.

  
 13. Headings. The headings of the paragraphs
herein are included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Agreement. 
  
 14. Governing Law. This Agreement has been executed and delivered in the State of Indiana and its validity, interpretation, performance, and
enforcement shall be governed by the laws of the State of Indiana, except to the extent that federal law governs. 
  
 15. Notices. Any notice or other communication required or permitted pursuant to this Agreement shall be deemed delivered if such notice or
communication is in writing and is delivered personally or by facsimile transmission or is deposited in the United States mail, postage prepaid, addressed as follows: 
  
 If to the Company: 
  
 United Community Bank 
 230 Walnut Street

 Lawrenceburg, Indiana 47025 
  

 6 

 If to the Employee: 
  
 [Name] 
 [Address] 
  
 16. Source of Payments.
Notwithstanding any provision herein to the contrary, to the extent payments and benefits, as provided by this Agreement, are paid or received by Executive under the Employment Agreement dated as of July 1, 2005 between Executive and the
Company, such compensation payments and benefits paid by the Company will be subtracted from any amount or benefit due simultaneously to Executive under similar provisions of this Agreement. Payments pursuant to this Agreement will be allocated in
proportion to the level of activity and time expended on such activities by Executive, as determined by the Company. 
  

 7 

 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer,
and the Employee has signed this Agreement, each as of the day and year first above written. 
  

									
	 Attest:
	 	 	 	UNITED COMMUNITY BANCORP
				
	 	 	 	 	 By:
	 	 
					
	 	 	 	 	 	 	 Its:
	 	 
			
	 	 	 	 	EMPLOYEE
				
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 [Name]

  

 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}]]