Document:

ex10-12.htm

Exhibit 10.12

 

 

 

 

DEFERRED INCOME AGREEMENT

 

JOHN C. WILLIAMS

 

CHAPIN STATE BANK

 

CHAPIN, ILLINOIS

 

JULY 1, 1982

 

 

 

  

  

  

 

DIRECTOR’S COMPENSATION AGREEMENT

 

This Agreement is entered into this first day of July, 1982, between CHAPIN STATE BANK, P.O. Box 278, Chapin, Illinois  62628 (herein referred to as the “Bank”) and JOHN C. WILLIAMS, Ash Street, Chapin, Illinois  62628 (herein referred to as the “Director”).

 

WITNESSETH

 

WHEREAS, the Bank recognizes that the competent and faithful efforts of Director on behalf of the Bank have contributed significantly to the success and growth of the Bank; and

 

WHEREAS, the Bank values the efforts, abilities and accomplishments of the Director and recognizes that his services are vital to its continued growth and profits in the future; and

 

WHEREAS, the Bank desires to compensate the Director and retain his services for five years, if elected, to serve on the Board of Directors.  Such compensation is set forth below; and

 

WHEREAS, the Director, in consideration of the foregoing, agrees to continue to serve as a Director, if elected,

 

NOW, THEREFORE, it is mutually agreed as follows:

 

1.           Compensation.  The Bank agrees to pay Director the total sum of $108,360 payable in monthly installments of $903 for 120 consecutive months, commencing on the first day of the month following Director’s 65th birthday.  Payments to the Director will terminate when the 120 payments have been made or at the time of the Director’s death, whichever comes first.

 

2.           Death of Director Before Age 65.  In the event Director should die before reaching age 65, the Bank agrees to pay to Director’s beneficiary designated in writing to the Bank, the sum of $903 per month for 120 consecutive months.  Payments will begin on the first day of the month following Director’s death.

 

3.           Death of Director After Age 65.  If the Director dies after age 65 prior to receiving the full 120 monthly installments, the remaining monthly installments will be paid to the Director’s designated beneficiary(ies).  The beneficiary(ies) shall receive all remaining monthly installments which the Director would have received until the total sum of $108,360 set forth in paragraph “1” is paid.  If the Director fails to designate a beneficiary in writing to the Bank, the balance of monthly installments remaining at the time of his death shall be paid to the legal representative of the estate of the Director.

 

4.           Termination of Service as a Director.  If the Director, for any reason other than death, fails to serve five consecutive years as a Director, he will receive monthly compensation beginning at age 65 on the basis that the number of full months served bears to the required number of 60 months times the compensation stated in paragraph “1”.  For example, if the Director serves only 36 months, he will be entitled to 36/60 or 60% of the compensation stated in paragraph “1”.

 

  

  

  

 

5.           Suicide.  No payments will be made to the Director’s beneficiary(ies) or to his estate in the event of death by suicide during the first three years of this agreement.

 

6.           Status of Agreement.  This agreement does not constitute a contract of employment between the parties, nor shall any provision of this agreement restrict the right of the Bank’s Shareholders to replace the Director or the right of the Director to terminate his service.

 

7.           Binding Effect.  This agreement shall be binding upon the parties hereto and upon the successors and assigns of the Bank, and upon the heirs and legal representatives of the Director.

 

8.           Interruption of Service.  The service of the Director shall not be deemed to have been terminated or interrupted due to his absence from active service on account of illness, disability, during any authorized vacation or during temporary leaves of absence granted by the Bank for reasons of professional advancement, education, health or government service, or during military leave for any period if the Director is elected to serve on the Board following such interruption.

 

9.           Forfeiture of Compensation by Competition.  The Director agrees that if after the age of 65 years, he shall compete with this bank by employment in a competing commercial bank within a radius of five miles of this bank, without the prior written consent of this bank, he will forfeit compensation provided herein for those years coinciding with the years of his employment in a competing bank.  If said Director has been discharged from employment by the directors of the bank following a majority change in the ownership of capital stock in this bank, then the written permission for competing employment from the newly elected directors, or a majority thereof, shall not be unfairly withheld by said newly elected board of directors preventing the Director from compensation by part-time or full-time employment elsewhere.

 

10.         Assignment of Rights.  None of the rights to compensation under this Agreement are assignable by the Director or any beneficiary or designee of the Director and any attempt to anticipate, sell, transfer, assign, pledge, encumber or change Director’s right to receive compensation, shall be void.

 

11.         Status of Director’s Rights.  The rights granted to the Director of any designee or beneficiary under this Agreement shall be solely those of the unsecured creditor of the Bank.

 

12.         Amendment.  This Agreement may be amended only by a written Agreement signed by the parties.

 

13.         If the Bank shall acquire an insurance policy or any other asset in connection with the liabilities assumed by it hereunder, it is expressly understood and agreed that neither Director nor any beneficiary of Director shall have any right with respect to, or claim against, such policy or other asset except as expressly provided by the terms of such policy or in the title to such other asset.  Such policy or asset shall not be deemed to be held under any trust for the benefit of Director or his beneficiaries or to be held in any way as collateral security for the fulfilling of the obligations of the Bank under this Agreement except as may be expressly provided by the terms of such policy or other asset.  It shall be, and remain, a general, unpledged, unrestricted asset of the Bank.

 

  

2

  

 

14.        This agreement shall be construed under and governed by the laws of the State of Illinois.

 

15.         Interpretation.  Wherever appropriate in this Agreement, words used in the singular shall include the plural and the masculine shall include the feminine gender.

 

 

IN WITNESS HEREOF, the parties have signed this Agreement the day and year above written.

 

	  	  	
CHAPIN STATE BANK

	  
	 	 	 	 	 
	 	 	 	 	 
	
(SEAL)

	  	
By:

	
/s/ Roy Halstenberg

	  
	  	  	  	  	  
	 	 	 	 	 
	
/s/ Patty Jo Crews

	  	
/s/ John C. Williams

	
(SEAL)

	
Witness

	  	
JOHN C. WILLIAMS, DIRECTOR

 

 

 

 

3ex10-13.htm

    
      

    

    Exhibit
10.13

     

    (Bank's Copy)

    
       

       

      DeferComp
Agreement

       

      Chapin
State Bank

      Chapin,
Illinois

       

      Dean
H. Hess

       

      Jacksonville,
Illinois

       

      

       

      

       

       

      
        	 	 	Date:       August
      3, 1987	 

      

       

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      DEFERRED COMPENSATION
AGREEMENT

       

      AGREEMENT
entered into as of the 3rd day
of August, 1987, between the CHAPIN STATE BANK, a domestic corporation having
its principal office if CHAPIN, ILLINOIS, (hereinafter referred to as the
“Bank”) and DEAN H. HESS of JACKSONVILLE, ILLINOIS (hereinafter referred to as
the “Director”).

       

      WHEREAS, the Director has
rendered the Bank may years of valuable service and it is the desire of the Bank
to have the benefit of Director’s continued loyalty, service and counsel and
also to assist Director in providing for the contingencies of death and old age
dependency, it is hereby agreed:

       

      1.            
RETIREMENT
BENEFIT - The Bank will pay the Director $879 per month commencing 30
days after the later of (a) Director’s 65th
birthday or (b) the 60th
month after the date of this Agreement for a continuous period of 120 months,
for a total of $105,492.  In the event that the Director should die
after said payments have commenced but before the expiration of said 120 month
period, the unpaid balance of the payments due will continue to be paid monthly
by the Bank to those beneficiaries at the end of this document.

       

      2.            
DEATH BENEFIT -
Should the Director die before benefits begin under Paragraph 1 of this
Agreement, the Bank will commence to pay $589 per month for a continuous period
of 120 months for a total of $70,680, beginning one month after the death of
Director, to the named beneficiary at the end of this document, otherwise to the
Executors or Administrators of the Director.  The beneficiaries named
hereon may be changed at any time by the Director, by written
amendment.  The benefits shall not be payable upon the death of the
Director resulting from suicide, whether sane or insane, within three years
after the signing of the Agreement.  The benefits under this paragraph
shall not be payable if Director made material misrepresentations on any
application for insurance which Bank may have obtained.

       

      3.            
CONDITIONS. -
Director agrees that fee of $100 per month shall not be paid as and when
services are rendered for a period of 60 months, but instead shall be paid in
the amounts and at such times as provided herein.  The provisions of
Paragraph 1 are further conditional upon services of the Director with the Bank
for a period of 5 years from the date of this Agreement.  If, however,
the Director fails to serve on the Board for 60 month, for reasons other than by
death, then the Bank, in its sole discretion, shall choose one of the following
options:

       

      
        	 
      	
                (a)

              	
                Proportionate
      Benefit – Director’s benefits beginning under Paragraph 1 and the
      beneficiary’s benefits under Paragraph 2 above will be in direct
      proportion to the number of months as it relates to 100 percent of 60
      months.  For example, if the Director serves only 30 months, the
      Director will be entitled to $440 or 50 percent of the compensation stated
      in Paragraph 1 or the beneficiary will be entitled to $295 or 50 percent
      of the compensation stated in Paragraph 2; or

              
	 	 	 
	 
      	
                (b)

              	
                Payment of Deferred
      Fee – Bank, within 90 days of the termination of service by
      Director, shall pay the Director a lump sum payment equal to the total
      amount of fees deferred pursuant to this Paragraph 3 plus ____ percent per
      annum thereon from the date of deferral until so
  paid.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      In the
absence of payment of the deferred fee within 90 days of the termination of
service, the Bank will be deemed to have elected to pay the Director a
proportionate benefit as set forth in this Paragraph 3.

       

      4.            
ACCELERATION OF
BENEFIT PAYMENTS - The Bank hereby reserves the right to accelerate the
payment of any of those sums specified in Paragraph 1, 2 and 3 above without the
consent of the Director or the Director’s estate, beneficiaries, or any other
person claiming through or under Director.

       

      5.            
ASSIGNABILITY -
Except to the extent that this provision may be contrary to law, no assignment,
pledge, collateralization, or attachment of any of the benefits under this
Agreement shall be valid or recognized by the Bank.

       

      6.            
EMPLOYMENT
RIGHTS - This Agreement creates no rights in the Director to continue on
the Board of the Corporation for any specific length of time, nor does it create
any other rights in the Director or obligations on the part of the Bank, except
those set forth in this Agreement.

       

      7.            
LAW GOVERNING -
This Agreement shall be governed by the laws of the State of
Illinois.

       

      8.            
RIGHTS OF THE
DIRECTOR - The Director and/or any beneficiary under this Agreement shall
have rights only as an unsecured creditor of the Bank.

       

      9.            
DIRECTOR’S INTEREST IN
ASSETS - The Director and/or any beneficiary of this Agreement shall not
have any interest in, claims against or rights to any insurance policy or any
other asset the Bank may acquire in connection with any liabilities the Bank may
assume under this Agreement, except those rights expressed in the policy or
title of any asset.  Benefits under the policy or asset will not be
held in trust for the benefit of the Director or beneficiary.  The
Bank will not hold the policy or asset as collateral to secure the Bank’s
liability under this Agreement, and such policy or asset will be considered an
unrestricted general asset of the Bank.

       

      THIS
AGREEMENT is solely between the Bank and the Director.  Further, the
Director and his/her beneficiaries shall have recourse only against the Bank for
enforcement.  However, it shall be binding upon the beneficiaries,
heirs, executors and administrators of the Director and upon the successors and
assigns of the Bank.  Amendments to this Agreement may only be made in
writing by both parties.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      EXECUTED
in duplicate as of the day first above written.

       

      
        	 
      	 
      	
                CHAPIN
      STATE BANK

              	 
      
	 	 	 	 	 
	 	 	 	 	 
	
                (SEAL)

              	 
      	
                By:

              	
                /s/ John Williams,
President

              	 
      
	 
      	 
      	 
      	
                Title

              	 
      
	 	 	 	 	 
	 	 	 	 	 
	 
      	 
      	/s/ Dean H. Hess	 
      
	 
      	 
      	 
      	
                Dean
      H. Hess, Director

              	 
      

      

       

       

       

      

       

      
        	
                /s/ John Williams

              	 
      	
                /s/ Dean H. Hess

              	 
      
	
                Witness

              	 
      	
                Dean
      H. Hess, Director

              	 
      

      

       

       

       

      3

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