Document:

EX-10.8 Post 2004 Unfunded Deferred Compensation

 

Exhibit 10.8

POST 2004

UNFUNDED DEFERRED COMPENSATION

PLAN FOR THE DIRECTORS OF

PEOPLES BANK SB

     The provisions of this Plan apply to all post-2004 deferrals. It is the intent of all of the
parties hereto that the Plan meets the requirements of Section 409A of the Internal Revenue Code.
The terms of the Plan are as follows:

     1. Each director may elect on or before December 31st of any year to defer all or
a specified portion of his annual fees for succeeding calendar years.

     2. Any person elected to fill a vacancy on the board, and who was not a director on the
preceding December 31st, may elect, within 30 days after becoming eligible under the
Plan, to defer all or a specified part of his annual fees for the balance of the calendar year
following such election and for succeeding calendar years, unless such person was already a
participant in another account balance plan sponsored by the bank.

     3. The rate of interest to be paid on deferred fees will be equal to the bank’s regular
six-month certificate of deposit, plus 2%. Interest on this account will be compounded quarterly.
The interest rate will be reset on the first business day of each month.

     4. Amounts deferred under the Plan, together with accumulated interest, will be distributed
in annual installments over a ten-year period beginning with the first day of the calendar year
immediately following the year in which the director ceases to be a director. Not withstanding
this provision, in no event shall a “key employee”; as that term is defined by the Internal Revenue
Service, receive any payment earlier than six-months after termination of employment. The first
annual installment for any such key employee will be paid on or soon after the later of six-months
after termination of employment or the first day of the calendar year immediately following the
year of termination of employment. All subsequent annual installment payments to any such key
employee will be made in the month of January, beginning with the January that immediately follows
the first annual installment payment.

     5. An election to defer fees shall continue from year to year unless terminated by the
director by written request. In the event a director elects to terminate deferring fees, the
amount already deferred cannot be paid to him until he ceases to be a director. A director may not
make or modify deferral elections during the middle of a year other than as provided in Paragraph
2.

     6. Upon the death of a director or former director prior to the expiration of the period
during which the deferred amounts are payable, the balance of the deferred fees and interest in his
account shall be payable to his estate or designated beneficiary in full on the first day of the
calendar year, following the year in which he dies.

41

 

     7. Distribution of benefits pursuant to the termination of the Plan is prohibited unless the
termination qualifies as a distributable event under Section 409A of the Internal Revenue Code or
the regulations thereunder.

     8. Not withstanding any other provisions to the contrary, in accordance with guidance issued
by the United States Treasury and the Internal Revenue Service, participants may make a valid
deferral election as late as March 15, 2005 with respect to 2005 fees that became payable after
such date. A participant may make such an election by completing the appropriate deferral election
form and submitting it to the bank no later than March 15, 2005.

ELECTION TO PARTICIPATE IN UNFUNDED DEFERRED COMPENSATION PLAN

     Certificates acknowledged and attested and inserted herewith to become apart of these minutes.
Adopted by the Board of Directors this 16th day of November 2005, and made effective January 1,
2005.

	 	 	 	 	 	 	 	 
	 	Attested by:

	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	/s/ David A. Bochnowski

	 	 	 	/s/Jon E. DeGuilio	 	 
	 	 

	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	Chairman & CEO

	 	 	 	Corporate Secretary	 	 

42EX-10.12 Summary Sheet

 

Exhibit 10.12

Summary Sheet of Director and Officer Compensation

Director Compensation

     All directors who are not also officers of the Company or the Bank receive an annual
director’s fee from the Bank of $21,860. Directors are reimbursed for expenses incurred in
connection with attendance at Board and Committee meetings.

Executive Officer Compensation

     On January 25, 2006, the Bancorp Compensation Committee of the Board of Directors approved
executive officer base compensation for 2006 and authorized payment of incentive compensation for
2005 performance. The individuals listed below will begin to receive their new base salary and
incentive compensation payment on February 1, 2006:

	 	 	 	 	 	 	 	 	 
	 	 	2006	 	 	2005	 
	 	 	Base	 	 	Incentive	 
	Inside Directors and Executive Officer	 	Salary	 	 	Compensation	 
	David A. Bochnowski, Director, Chairman and
Chief Executive Officer
	 	$	309,672	 	 	$	90,301	 
	Joel Gorelick, Director, President and Chief
Administrative Officer
	 	$	180,077	 	 	$	37,080	 
	Edward J. Furticella, Director and Consultant
	 	$	82.50 	(1)	 	$	20,550	 
	Jon E. DeGuilio, Executive Vice President,
General Counsel and Secretary
	 	$	137,224	 	 	$	15,425	 
	Robert T. Lowry, Senior Vice President and
Chief Financial Officer
	 	$	118,584	 	 	$	14,570	 

 

			
	(1)	 	Mr. Furticella is a part-time employee with the Bancorp and earns an hourly rate of
pay.

     The Bancorp Compensation Committee has established an incentive compensation system
designed to offer positive salary rewards for peak performance to all employees. The incentive
compensation is geared towards rewarding performance that results in increased profitability of the
Bancorp. In addition, incentive compensation is awarded for consistent performance tied to
corporate goals rather than short-swing profits. The incentive compensation is discretionary and
approved by the Board on an annual basis, as strategic goals are achieved.

     The incentive compensation is paid from a pool of funds created each year based on the
Bancorp’s return on equity, return on assets, and increase in earnings per basic share. Each of
the three measures is tied to a factor, which is then multiplied by the Bancorp’s annual net income
after incentive compensation expense to determine the incentive compensation pool. The Board also
has the discretion to increase the size of the incentive compensation pool to reward outstanding
performance consistent with long and short-range goals. No Board discretionary funds were included
in the 2005 incentive compensation pool. The incentive compensation pool is generally allocated to
the Bancorp’s employees in the following manner: 30% to the Chief Executive Officer, 52% to the
President and Vice Presidents and 18% to other employees. The Chief Executive Officer, with Board
approval, may reallocate a portion of his incentive compensation pool to the other compensation pools.

43

 

     The allocated incentive compensation pools can be utilized to supplement the cash remuneration
of the Bancorp’s management according to the following guidelines: Vice Presidents up to 10% of
salary; Senior Vice Presidents up to 20% of salary; President and Executive Vice President up to
35% of salary; and Chief Executive Officer up to 50% of salary. The incentive compensation for
Vice Presidents, Senior Vice Presidents, Executive Vice President and President is awarded based on
a performance review by the Chief Executive Officer, which is reviewed and approved by the
Bancorp’s Compensation Committee and Board. The performance review incorporates the following
criteria: strategic plan implementation and goal achievement; leadership based on communication,
responsiveness, efficiencies, focus and innovation; professional growth; and community involvement.
The Compensation Committee conducts the Chief Executive Officer’s performance review and
determines his incentive compensation.

     The Bancorp maintains an Employees’ Savings and Profit Sharing Plan and Trust for all
employees who meet the plan qualifications. Contributions to the Employees’ Profit Sharing Plan
and Trust are made at the discretion of the Bancorp’s Board of Directors. Contributions to the
Company’s executive officers and employees for the year ended December 31, 2005, were based on 8%
of the participants’ total compensation excluding incentives.

     The Bancorp maintains an Unqualified Deferred Compensation Plan. Participants’ accounts are
credited each year with an amount based on a formula involving the participant’s employer funded
contributions under all qualified plans and the limitations imposed by Internal Revenue Code
subsection 401(a)(17) and Code section 415.

     Pursuant to a stock option plan, the Company has reserved shares of the Bancorp’s common stock
for issuance in respect of incentive awards granted to officers and other employees of the Bancorp
and the Bank.

44Exhibit 10.32

 

Exhibit 10.32

December 28, 2005                

Kenneth L. Bloom

c/o Benesch, Friedlander, Coplan & Aronoff LLP

          Re: Separation Agreement and General Release

Dear Ken:

          This letter confirms the resignation of your employment with Associated Materials Incorporated
(“AMI”), with your last day of employment being December 31, 2005. You understand and agree that,
effective October 21, 2005, you have no longer been authorized to incur any expenses or obligations
or liabilities on behalf of AMI and you represent that you have not incurred any such expenses or
obligations or liabilities on behalf of AMI.

          In connection with your resignation, AMI is prepared to provide you with severance pay equal
to four (4) months of your current base salary (less applicable deductions and withholdings). You
will receive this severance pay by remaining on the payroll through April 30, 2006. In addition,
your group medical, dental and life insurance benefits (as may be amended from time to time for
active employees and provided that you will continue to be responsible for that portion of the
monthly premiums for which you would be responsible as an active employee) will remain in effect
until the earlier of April 30, 2006 or the date on which such coverage is available to you from
other employment.

          In order to be eligible to receive the severance payment and other benefits to which you are
not otherwise entitled, you are required to (i) agree to the terms contained in this letter,
including the General Release, indicate your agreement by signing and returning this letter, and
not revoke this agreement as provided below, and (ii) sign the Stock Repurchase Agreement, a copy
of which is attached hereto.

          In consideration for AMI’s payment of the severance payment and other benefits to which you
are not otherwise entitled, you hereby agree to release AMI and any and all of AMI’s predecessors,
successors, assigns, subsidiaries, parents, branches, divisions, affiliates, related entities and
present and former owners, stockholders, officers, directors, employees, insurers, representatives,
attorneys and agents (of either AMI or any and all of AMI’s predecessors, successors, assigns,
subsidiaries, parents, branches, divisions, affiliates and related entities) (collectively, “AMI
Officials”), individually and in their official capacities, of and from all causes of action,
claims, damages, judgments or agreements of any kind including, but not limited to, all matters
arising out of your employment with AMI and the cessation thereof. This

 

 

release includes, but is not limited to, any and all alleged claims based on Title VII of the
Civil Rights Act of 1964, the Civil Rights Act of 1866, the Age Discrimination in Employment Act
(including the Older Workers Benefit Protection Act), the Americans with Disabilities Act, the Ohio
State Labor and Industry Law (including, but not limited to, the Ohio Civil Rights Act), the
Employee Retirement Income Security Act of 1974, the Family and Medical Leave Act of 1993, the
Worker Adjustment and Retraining Notification Act, or any common law, public policy, contract
(whether oral or written, express or implied) or tort law, or any other local, state or federal
law, regulation, ordinance or rule having any bearing whatsoever on the terms and conditions of
your employment and the cessation thereof.

          In addition, you will keep in confidence and will not, except as specifically authorized in
writing by AMI or as otherwise required by law, disclose to any third party or use for the benefit
of himself or any third party any confidential or proprietary information about AMI (or its
parents, subsidiaries, affiliates or related entities) which you acquired, developed or created by
reason of your employment, except for information that is or becomes public other than through your
breach of this paragraph.

          You will also promptly return to AMI all documents, materials and property in your possession,
custody or control that are the property of AMI or any AMI Officials, including but not limited to
all AMI information and related reports, maps, files, memoranda and records, credit cards, cardkey
passes, door and file keys, computer access codes, software and including all copies, duplicates,
reproductions or excerpts thereof.

          You agree not to criticize, denigrate, disparage or impair the commercial reputation, goodwill
or interests of AMI or any AMI Officials in any manner whatsoever.

          You agree that you will cooperate with AMI (or its parents, subsidiaries, affiliates or
related entities) and its legal counsel in connection with any current or future investigation or
litigation relating to any matter with which you were involved or of which you have knowledge or
which occurred during your employment at AMI. Such assistance shall include, but not be limited
to, depositions and testimony and shall continue until such matters are resolved. AMI will
reimburse you for any reasonable and pre-approved travel-related expenses and reasonable telephone
and facsimile expenses that you incur as a result of your cooperation.

          You acknowledge and agree that you continue to be bound by the terms of the covenants set
forth in Section 5 of your employment agreement, dated as of August 21, 2002 and amended and
restated as of July 27, 2004 (and attached hereto and incorporated herein as Exhibit A), including
but not limited to the covenants regarding Noncompetition and Nonsolicitation, each of which
continues for two (2) years following the date of your termination, and the covenants regarding
Nondisclosure and Nondisparagement.

          This Agreement and Release is not an admission of any liability or wrongdoing by AMI or any
AMI Officials, and AMI and AMI Officials expressly deny any such wrongdoing or liability.

          By signing this Agreement and Release, you are providing a complete waiver of all claims that
may have arisen, whether known or unknown, up until the time that this

-2-

 

Agreement and Release is executed. If you breach this Agreement and Release, AMI will seek
restitution and/or offset of any payments or benefits provided to the extent permitted by law.

          This Agreement and Release does not affect your entitlement to previously accrued or vested
benefits to which you may be entitled, which are summarized as follows:

	 	•	 	You have no accrued but unused vacation days.
	 
	 	•	 	Your group medical and dental benefits will remain in effect until December 31,
2005. Upon the termination of your group medical and dental benefits, you will be
provided separate information regarding your right thereafter to continue group
coverage as required by the Consolidated Omnibus Budget Reconciliation Act of 1985
(“COBRA”).
	 
	 	•	 	Your group life insurance will remain in effect until December 31, 2005, which
is the last day of your employment. Upon the termination of your group life
insurance, you will be provided separate information regarding your right to
convert your group life insurance to an individual policy.
	 
	 	•	 	You will be provided a separate statement of your benefits, if any, under any
AMI savings and/or pension plan. Your rights to benefits under any AMI savings
and/or pension plan will be determined by law and in accordance with the terms of
the specific plan.

          Since your execution of this Agreement and Release releases AMI and any AMI Officials from all
claims you may have, you should review this carefully before signing it. You can take at least
twenty-one (21) days from your receipt of this Agreement and Release to consider its meaning and
effect and to determine whether you wish to enter into it. During that time, you are advised to
consult with anyone of your choosing, including an attorney, prior to executing this Agreement and
Release.

          Once you have signed this Agreement and Release, you may choose to revoke your execution
within seven (7) days. Any revocation of this Agreement and Release must be in writing and
personally delivered to John Haumesser, Associated Materials Incorporated, 3773 State Road,
Cuyahoga Falls, Ohio 44223, or if mailed, postmarked within seven (7) days of the date upon which
it was signed by you.

          TO RECEIVE THE SEVERANCE PAYMENT AND OTHER BENEFITS, YOU MUST SIGN AND RETURN THE AGREEMENT
AND RELEASE NO EARLIER THAN DECEMBER 31, 2005 AND NO LATER THAN JANUARY 21, 2006, AND DELIVER THE
ATTACHED LETTER INDICATING THAT YOU DO NOT WISH TO REVOKE YOUR AGREEMENT SEVEN (7) DAYS AFTER THE
DATE YOU SIGN THIS AGREEMENT AND RELEASE. This Agreement and Release should be returned to John
Haumesser, Associated Materials Incorporated, 3773 State Road, Cuyahoga Falls, Ohio 44223. AMI
will not make any payments or provide any other benefits pursuant to this Agreement and Release
until after the seven (7) day period expires and AMI receives the attached letter indicating that
you have not revoked your agreement.

-3-

 

          This Agreement and Release (including the attached Stock Repurchase Agreement and attached
employment agreement) contains the entire understanding of the parties relating to the subject
matter hereof, and supersedes and replaces the Separation Agreement and General Release, dated
December 27, 2005, which you previously received from AMI. You acknowledge that no
representations, oral or written, have been made other than those expressly set forth herein, and
that you have not relied on any other representations in executing this Agreement and Release.
This Agreement and Release may be modified only in a document signed by the parties and referring
specifically hereto.

Sincerely yours,

Associated Materials Incorporated

John Haumesser

Vice President, Human Resources

-4-

 

ACKNOWLEDGMENT

          I AGREE TO THE TERMS AND CONDITIONS SPECIFIED IN THIS AGREEMENT AND RELEASE AND I INTEND TO
WAIVE AND RELEASE ALL CLAIMS THAT I MAY HAVE AGAINST AMI AND ANY AMI OFFICIALS. I UNDERSTAND THAT
THIS WAIVER AND RELEASE CREATES A TOTAL AND UNLIMITED RELEASE OF ALL CLAIMS, WHETHER KNOWN OR
UNKNOWN, EXISTING AS OF THIS DATE THAT I MAY HAVE AGAINST AMI AND ANY AMI OFFICIALS.

          I HAVE HAD AMPLE TIME TO REVIEW THIS AGREEMENT AND TO CONSIDER MY GENERAL RELEASE OF ALL
CLAIMS AS SET FORTH IN THIS AGREEMENT AND RELEASE. I AM SIGNING THIS AGREEMENT AND RELEASE
KNOWINGLY, VOLUNTARILY AND WITH FULL UNDERSTANDING OF ITS TERMS AND EFFECTS. I UNDERSTAND THAT I
CAN TAKE AT LEAST TWENTY-ONE (21) DAYS FROM RECEIPT OF THIS AGREEMENT AND RELEASE TO DETERMINE
WHETHER I WISH TO SIGN IT, THAT I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY PRIOR TO SIGNING
IT, AND THAT I HAVE SEVEN (7) DAYS FROM THE DATE I SIGN THIS AGREEMENT AND RELEASE TO REVOKE IT.

          I ACKNOWLEDGE THAT I HAVE NOT RELIED ON ANY REPRESENTATIONS OR STATEMENTS NOT SET FORTH
HEREIN. I WILL NOT DISCLOSE THIS AGREEMENT AND RELEASE TO ANYONE EXCEPT TO MY IMMEDIATE FAMILY AND
ANY TAX, LEGAL OR OTHER COUNSEL THAT I HAVE CONSULTED REGARDING THE MEANING OR EFFECT OF THIS
AGREEMENT, EXCEPT AS OTHERWISE REQUIRED BY LAW.

          In
witness hereof, I have executed this Separation Agreement and General Release this ___ day
of                     , 200__.

	 	 	 	 	 	 	 
	                                                            
	 	 	 	 	 	 
	Kenneth L. Bloom
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	STATE OF OHIO

	 	 	)	 	 	 
	 

	 	 	 	 	 	ss.:
	COUNTY OF                     

	 	 	)	 	 	 

          On
this                      day of                     , 200_, before me, a Notary Public of the State of Ohio,
personally appeared KENNETH L. BLOOM, to me known and known to me to be the person described and
who executed the foregoing agreement and release and did then and there acknowledge to me that s/he
voluntarily executed the same.

	 	 	 
	 

	 	 

	 

	 	Notary Public

YOU MUST RETURN THE ENTIRE SEPARATION AGREEMENT AND GENERAL RELEASE (INCLUDING THIS ACKNOWLEDGMENT
PAGE).

-5-

 

                                        , 200_

John Haumesser

Vice President, Human Resources

Associated Materials Incorporated

3773 State Road

Cuyahoga Falls, Ohio 44223

          Re:  Separation Agreement and General Release

Dear John:

          On                     , 200_, I executed a Separation Agreement and General Release between
Associated Materials Incorporated and me. I was advised in writing to consult with an attorney of
my choosing prior to signing the Agreement and Release.

          At least seven (7) days have elapsed since I executed the above-mentioned Agreement and
Release, and I have not revoked my acceptance or execution thereof. I hereby request payment of
the monies and other benefits described in that Agreement and Release.

Very truly yours,

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