Document:

Exhibit 10.3

 

AJS BANCORP, INC.

 

2003 STOCK OPTION PLAN

 

1.                                      Purpose

 

The purpose of the AJS Bancorp, Inc. (“Company”) 2003 Stock Option Plan (the “Plan”) is to advance the interests of the Company and its stockholders by providing Key Employees and Outside Directors of the Company and its Affiliates, including A. J. Smith Federal Savings Bank (“Bank”) and AJS Bancorp, MHC, the mutual holding company of the Bank, upon whose judgment, initiative and efforts the successful conduct of the business of the Company and its Affiliates largely depends, with an additional incentive to perform in a superior manner as well as to attract people of experience and ability.

 

2.                                      Definitions

 

“Affiliate” means any “parent corporation” or “subsidiary corporation” of the Bank or the Company, as such terms are defined in Section 424(e) or 424(f), respectively, of the Code, or a successor to a parent corporation or subsidiary corporation.

 

“Award” means an Award of Non-Statutory Stock Options, Incentive Stock Options, Reload Options, Limited Rights, and/or Dividend Equivalent Rights granted under the provisions of the Plan.

 

“Beneficiary” means the person or persons designated by a Participant to receive any benefits payable under the Plan in the event of such Participant’s death.  Such person or persons shall be designated in writing on forms provided for this purpose by the Committee and may be changed from time to time by similar written notice to the Committee.  In the absence of a written designation, the Beneficiary shall be the Participant’s surviving spouse, if any, or if none, his estate.

 

“Board” or “Board of Directors” means the board of directors of the Company or its Affiliate, as applicable.

 

“Cause” means personal dishonesty, incompetence, willful misconduct, any breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, or the willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or a final cease-and-desist order, any of which results in a material loss to the Company or an Affiliate.

 

“Change in Control” means a change in control of a nature that: (i) would be required to be reported in response to Item 1(a) of the current report on Form 8-K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”); or (ii) results in a Change in Control of the Bank or the Company within the meaning of the Home Owners’ Loan Act, as amended (“HOLA”), and applicable rules and regulations promulgated thereunder, as in effect at the time of the Change in Control; or (iii) without limitation such a Change in Control shall be deemed to have occurred at such time as (a) any “person” (as the term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of Company’s outstanding securities except for any securities purchased by the Bank’s employee stock ownership plan or trust; or (b) individuals who constitute the Board on the date hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the date hereof whose election was approved by a vote of at least three-quarters of the directors comprising the Incumbent Board, or whose nomination for election by

 

 

the Company’s stockholders was approved by the same Nominating Committee serving under an Incumbent Board, shall be, for purposes of this clause (b), considered as though he were a member of the Incumbent Board; or (c) a plan of reorganization, merger, consolidation, sale of all or substantially all the assets of the Bank or the Company or similar transaction in which the Bank or Company is not the surviving institution occurs; or (d) a proxy statement soliciting proxies from stockholders of the Company, by someone other than the current management of the Company, seeking stockholder approval of a plan of reorganization, merger or consolidation of the Company or similar transaction with one or more corporations as a result of which the outstanding shares of the class of securities then subject to the Plan are to be exchanged for or converted into cash or property or securities not issued by the Company; or (e) a tender offer is made for 25% or more of the voting securities of the Company and the shareholders owning beneficially or of record 25% or more of the outstanding securities of the Company have tendered or offered to sell their shares pursuant to such tender offer and such tendered shares have been accepted by the tender offeror.  Notwithstanding anything in this subsection (b) to the contrary, a change in control shall not be deemed to have occurred in the event of a conversion of the Company’s or the Bank’s mutual holding company to stock form, or in connection with any reorganization used to effect such a conversion.

 

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

 

“Committee” means a Committee of the Board consisting of either (i) two or more Non-Employee Directors of the Company, or (ii) the entire Board of the Company.

 

“Common Stock” means shares of the common stock of the Company, par value $.01 per share.

 

“Continuous Service” means employment as a Key Employee and/or service as an Outside Director without any interruption or termination of such employment and/or service with the Company, the Bank or an Affiliate. Continuous Service shall also mean a continuation as a member of the Board of Directors following a cessation of employment as a Key Employee.  In the case of a Key Employee, employment shall not be considered interrupted in the case of sick leave, military leave or any other leave of absence approved by the Bank or in the case of transfers between payroll locations of the Bank or between the Bank, its parent, its subsidiaries or its successor.

 

“Date of Grant” means the actual date on which an Award is granted by the Committee.

 

“Director” means a member of the Board.

 

“Disability” means the permanent and total inability by reason of mental or physical infirmity, or both, of an employee to perform the work customarily assigned to him, or of a Director to serve as such.  Additionally, in the case of an employee, a medical doctor selected or approved by the Board must advise the Committee that it is either not possible to determine when such Disability will terminate or that it appears probable that such Disability will be permanent during the remainder of said employee’s lifetime.

 

“Dividend Equivalent Rights” means the right to receive an amount of cash based upon the terms set forth in Section 10 hereof.

 

“Effective Date” means the date of, or a date determined by the Board following, approval of the Plan by the Company’s stockholders.

 

“Fair Market Value” means, when used in connection with the Common Stock on a certain date, the reported closing price of the Common Stock as reported by the Nasdaq stock market (as published by

 

2

 

The Wall Street Journal, if published) on such date, or if the Common Stock was not traded on such date, then on the next preceding day on which the Common Stock was traded; provided, however, that if the Common Stock is not reported on the Nasdaq stock market, Fair Market Value shall mean the average sale price of all shares of Common Stock sold during the 30-day period immediately preceding the date on which such stock option was granted, and if no shares of stock have been sold within such 30-day period, the average sale price of the last three sales of Common Stock sold during the 90-day period immediately preceding the date on which such stock option was granted.  In the event Fair Market Value cannot be determined in the manner described above, then Fair Market Value shall be determined by the Committee.  The Committee is authorized, but is not required, to obtain an independent appraisal to determine the Fair Market Value of the Common Stock.

 

“Incentive Stock Option” means an Option granted by the Committee to a Participant, which Option is designated as an Incentive Stock Option pursuant to Section 8.

 

“Key Employee” means any person who is currently employed by the Company or an Affiliate who is chosen by the Committee to participate in the Plan.

 

“Limited Right” means the right to receive an amount of cash based upon the terms set forth in Section 9.

 

“Non-Statutory Stock Option” means an Option granted by the Committee to (i) an Outside Director or (ii) to any other Participant and such Option is either (A) not designated by the Committee as an Incentive Stock Option, or (B) fails to satisfy the requirements of an Incentive Stock Option as set forth in Section 422 of the Code and the regulations thereunder.

 

“Non-Employee Director” means, for purposes of the Plan, a Director who (a) is not employed by the Company or an Affiliate; (b) does not receive compensation directly or indirectly as a consultant (or in any other capacity than as a Director) greater than $60,000; (c) does not have an interest in a transaction requiring disclosure under Item 404(a) of Regulation S-K; or (d) is not engaged in a business relationship for which disclosure would be required pursuant to Item 404(b) of Regulation S-K.

 

“Normal Retirement” means for a Key Employee, retirement at the normal or early retirement date set forth in the Bank’s Employee Stock Ownership Plan, or any successor plan.  Normal Retirement for an Outside Director means a cessation of service on the Board of Directors for any reason other than removal for Cause, after reaching 65 years of age and maintaining at least 10 years of Continuous Service.

 

“Outside Director” means a Director of the Company or an Affiliate who is not an employee of the Company or an Affiliate.

 

“Option” means an Award granted under Section 7 or Section 8.

 

“Participant” means a Key Employee or Outside Director of the Company or its Affiliates who receives or has received an award under the Plan.

 

“Reload Option” means an option to acquire shares of Common Stock equivalent to the shares (i) used by a Participant to pay for an Option, or (ii) deducted from any distribution in order to satisfy income tax required to be withheld, based upon the terms set forth in Section 19.

 

3

 

“Termination for Cause” means the termination of employment or termination of service on the Board caused by the individual’s personal dishonesty, willful misconduct, any breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, or the willful violation of any law, rule or regulation (other than traffic violations or similar offenses), or a final cease-and-desist order, any of which results in material loss to the Company or one of its Affiliates.

 

3.                                      Plan Administration Restrictions

 

The Plan shall be administered by the Committee.  The Committee is authorized, subject to the provisions of the Plan, to establish such rules and regulations as it deems necessary for the proper administration of the Plan and to make whatever determinations and interpretations in connection with the Plan it deems necessary or advisable.  All determinations and interpretations made by the Committee shall be binding and conclusive on all Participants in the Plan and on their legal representatives and beneficiaries.

 

All transactions involving a grant, award or other acquisition from the Company shall:

 

(a)                                 be approved by the Company’s full Board or by the Committee; or

 

(b)                                 be approved, or ratified, in compliance with Section 14 of the Exchange Act, by either: the affirmative vote of the holders of a majority of the securities present, or represented and entitled to vote at a meeting duly held in accordance with the laws of the state in which the Company is incorporated; or the written consent of the holders of a majority of the securities of the issuer entitled to vote provided that such ratification occurs no later than the date of the next annual meeting of shareholders; or

 

(c)                                  result in the acquisition of an Option or Limited Right that is held by the Participant for a period of six months following the date of such acquisition.

 

4.                                      Types of Awards

 

Awards under the Plan may be granted in any one or a combination of: (a) Incentive Stock Options; (b) Non-Statutory Stock Options; (c) Limited Rights; (d) Dividend Equivalent Rights and (e) Reload Options.

 

5.                                      Stock Subject to the Plan

 

Subject to adjustment as provided in Section 17, the maximum number of shares reserved for issuance under the Plan is 117,941 shares.  Shares issued under the Plan may be issued by the Company from authorized but unissued shares, treasury shares or acquired by the Company in open market purchases.  The maximum number of Options that may be awarded to a Key Employee is 58,970. To the extent that Options or rights granted under the Plan are exercised, the shares covered will be unavailable for future grants under the Plan; to the extent that Options, together with any related rights granted under the Plan, terminate, expire or are canceled without having been exercised or, in the case of Limited Rights exercised for cash, new Awards may be made with respect to these shares.  In addition, any shares that are used for the full or partial payment of the exercise price of any option will be available for future grants under the Plan.

 

4

 

6.                                      Eligibility

 

Key Employees of the Company and its Affiliates shall be eligible to receive Incentive Stock Options, Non-Statutory Stock Options, Limited Rights, Dividend Equivalent Rights and/or Reload Options under the Plan.  Outside Directors shall be eligible to receive Non-Statutory Stock Options, Dividend Equivalent Rights and Reload Options under the Plan.

 

7.                                      Non-Statutory Stock Options

 

(a)                                 Grants to Outside Directors and Key Employees.   The Committee may, from time to time, grant Non-Statutory Stock Options to eligible Key Employees and Outside Directors, and, upon such terms and conditions as the Committee may determine, grant Non-Statutory Stock Options in exchange for and upon surrender of previously granted Awards under the Plan.  Non-Statutory Stock Options granted under the Plan, including Non-Statutory Stock Options granted in exchange for and upon surrender of previously granted Awards, are subject to the terms and conditions set forth in this Section 7.

 

(b)                                 Option Agreement.  Each Option shall be evidenced by a written option agreement between the Company and the Participant specifying the number of shares of Common Stock that may be acquired through its exercise and containing the terms and conditions of the option which shall not be inconsistent with the terms of the Plan.

 

(c)                                  Price.  The purchase price per share of Common Stock deliverable upon the exercise of each Non-Statutory Stock Option shall be the Fair Market Value of the Common Stock of the Company on the date the Option is granted.  Shares may be purchased only upon full payment of the purchase price in one or more of the manners set forth in Section 13 hereof, as determined by the Committee.

 

(d)                                 Manner of Exercise and Vesting.  A Non-Statutory Stock Option granted under the Plan shall vest in a Participant at the rate or rates determined by the Committee.  A vested Option may be exercised from time to time, in whole or in part, by delivering a written notice of exercise to the President or Chief Executive Officer of the Company, or his designee.  Such notice shall be irrevocable and must be accompanied by full payment of the purchase price in cash or shares of Common Stock at the Fair Market Value of such shares, determined on the exercise date in the manner described in Section 2 hereof.  If previously acquired shares of Common Stock are tendered in payment of all or part of the exercise price, the value of such shares shall be determined as of the date of such exercise.

 

(e)                                  Terms of Options.  The term during which each Non-Statutory Stock Option may be exercised shall be determined by the Committee, but in no event shall a Non-Statutory Stock Option be exercisable in whole or in part more than 10 years from the Date of Grant.  No Options shall be earned by a Participant unless the Participant maintains Continuous Service until the vesting date of such Option, except as set forth herein. The shares comprising each installment may be purchased in whole or in part at any time after such installment becomes purchasable.  The Committee may, in its sole discretion, accelerate or extend the time at which any Non-Statutory Stock Option may be exercised in whole or in part by Key Employees and/or Outside Directors.  Notwithstanding any other provision of this Plan, in the event of a Change in Control of the Company or the Bank, all Non-Statutory Stock Options that have been awarded shall become immediately exercisable following such Change in Control.

 

(f)                                   Termination of Employment or Service.  Upon the termination of a Key Employee’s employment or upon termination of an Outside Director’s service for any reason other than Normal Retirement, death, Disability, Change in Control or Termination for Cause, the Participant’s Non-Statutory Stock Options shall be exercisable only as to those shares that were immediately purchasable on

 

5

 

the date of termination and only for one year following termination.  In the event of Termination for Cause, all rights under a Participant’s Non-Statutory Stock Options shall expire upon termination.  In the event of termination of service or employment due to the Normal Retirement, a Change in Control or death or Disability of any Participant, all Non-Statutory Stock Options held by the Participant, whether or not exercisable at such time, shall be exercisable by the Participant or his legal representative or beneficiaries for three years following the date of his termination due to Normal Retirement, death or Disability, provided that in no event shall the period extend beyond the expiration of the Non-Statutory Stock Option term.

 

(g)                                  Transferability. In the discretion of the Board, all or any Non-Statutory Stock Option granted hereunder may be transferable by the Participant once the Option has vested in the Participant, provided, however, that the Board may limit the transferability of such Option or Options to a designated class or classes of persons.

 

8.                                      Incentive Stock Options

 

The Committee may, from time to time, grant Incentive Stock Options to Key Employees.  Incentive Stock Options granted pursuant to the Plan shall be subject to the following terms and conditions:

 

(a)                                 Option Agreement.  Each Option shall be evidenced by a written option agreement between the Company and the Key Employee specifying the number of shares of Common Stock that may be acquired through its exercise and containing such other terms and conditions that are not inconsistent with the terms of the Plan.

 

(b)                                 Price.  Subject to Section 17 of the Plan and Section 422 of the Code, the purchase price per share of Common Stock deliverable upon the exercise of each Incentive Stock Option shall be not less than 100% of the Fair Market Value of the Common Stock on the date the Incentive Stock Option is granted.  However, if a Key Employee owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or its Affiliates (or under Section 424(d) of the Code is deemed to own stock representing more than 10% of the total combined voting power of all classes of stock of the Company or its Affiliates by reason of the ownership of such classes of stock, directly or indirectly, by or for any brother, sister, spouse, ancestor or lineal descendent of such Key Employee, or by or for any corporation, partnership, estate or trust of which such Key Employee is a shareholder, partner or Beneficiary),  the purchase price per share of Common Stock deliverable upon the exercise of each Incentive Stock Option shall not be less than 110% of the Fair Market Value of the Common Stock on the date the Incentive Stock Option is granted.  Shares may be purchased only upon payment of the full purchase price in one or more of the manners set forth in Section 13 hereof, as determined by the Committee.

 

(c)                                  Manner of Exercise.  Incentive Stock Options granted under the Plan shall vest in a Participant at the rate or rates determined by the Committee.  The vested Options may be exercised from time to time, in whole or in part, by delivering a written notice of exercise to the President or Chief Executive Officer of the Company or his designee.  Such notice is irrevocable and must be accompanied by full payment of the purchase price in cash or shares of Common Stock at the Fair Market Value of such shares determined on the exercise date by the manner described in Section 2.

 

The Committee may, in its sole discretion, accelerate the time at which any Incentive Stock Option may be exercised in whole or in part, provided that it is consistent with the terms of Section 422 of the Code.  Notwithstanding the above, in the event of a Change in Control, all Incentive Stock Options

 

6

 

that have been awarded shall become immediately exercisable, unless the aggregate exercise price of the amount exercisable as a result of a Change in Control, together with the aggregate exercise price of all other Incentive Stock Options first exercisable in the year in which the Change in Control occurs, shall exceed $100,000 (determined as of the Date of Grant).  In such event, the first $100,000 of Incentive Stock Options (determined as of the Date of Grant) shall be exercisable as Incentive Stock Options and any excess shall be exercisable as Non-Statutory Stock Options but shall remain subject to the provisions of this Section 8 to the extent permitted.

 

(d)                                 Amounts of Options.  Incentive Stock Options may be granted to any eligible Key Employee in such amounts as determined by the Committee; provided that the amount granted is consistent with the terms of Section 422 of the Code.  In granting Incentive Stock Options, the Committee shall consider such factors as it deems relevant, which factors may include, among others, the position and responsibilities of the Key Employee, the length and value of his or her service to the Bank, the Company, or the Affiliate, the compensation paid to the Key Employee and the Committee’s evaluation of the performance of the Bank, the Company, or the Affiliate, according to measurements that may include, among others, key financial ratios, levels of classified assets, and independent audit findings.  In the case of an Option intended to qualify as an Incentive Stock Option, the aggregate Fair Market Value (determined as of the time the Option is granted) of the Common Stock with respect to which Incentive Stock Options granted are exercisable for the first time by the Participant during any calendar year (under all plans of the Company and its Affiliates) shall not exceed $100,000.  The provisions of this Section 8(d) shall be construed and applied in accordance with Section 422(d) of the Code and the regulations, if any, promulgated thereunder.

 

(e)                                  Terms of Options.  The term during which each Incentive Stock Option may be exercised shall be determined by the Committee, but in no event shall an Incentive Stock Option be exercisable in whole or in part more than 10 years from the Date of Grant.  If any Key Employee, at the time an Incentive Stock Option is granted to him, owns stock representing more than 10% of the total combined voting power of all classes of stock of the Company or its Affiliate (or, under Section 424(d) of the Code, is deemed to own stock representing more than 10% of the total combined voting power of all classes of stock, by reason of the ownership of such classes of stock, directly or indirectly, by or for any brother, sister, spouse, ancestor or lineal descendent of such Key Employee, or by or for any corporation, partnership, estate or trust of which such Key Employee is a shareholder, partner or Beneficiary), the Incentive Stock Option granted to him shall not be exercisable after the expiration of five years from the Date of Grant.  Notwithstanding any other provision of this Plan, in the event of a Change in Control of the Company or the Bank, all Incentive Stock Options that have been awarded shall become immediately exercisable following such Change in Control.

 

(f)                                   Termination of Employment.  Upon the termination of a Key Employee’s service for any reason other than Disability, Normal Retirement, Change in Control, death or Termination for Cause, the Key Employee’s Incentive Stock Options shall be exercisable only as to those shares that were immediately purchasable by such Key Employee at the date of termination and only for a period of three months following termination.  In the event of Termination for Cause, all rights under the Incentive Stock Options shall expire upon termination.

 

Upon termination of a Key Employee’s employment due to Normal Retirement, a Change in Control or death or Disability, all Incentive Stock Options held by such Key Employee, whether or not exercisable at such time, shall be exercisable for a period of three years following the date of his cessation of employment, provided however, that any such Option shall not be eligible for treatment as an Incentive Stock Option in the event such Option is exercised more than three months following the date of his Normal Retirement or termination of employment following a Change in Control; and provided further,

 

7

 

that no Option shall be eligible for treatment as an Incentive Stock Option in the event such Option is exercised more than one year following termination of employment due to Disability and provided further, in order to obtain Incentive Stock Option treatment for Options exercised by heirs or devisees of an Optionee, the Optionee’s death must have occurred while employed or within three (3) months of termination of employment.   In no event shall the exercise period extend beyond the expiration of the Incentive Stock Option term.

 

(g)                                  Transferability.  No Incentive Stock Option granted under the Plan is transferable except by will or the laws of descent and distribution and is exercisable during his lifetime only by the Key Employee to which it is granted.

 

(h)                                 Compliance with Code.  The options granted under this Section 8 are intended to qualify as Incentive Stock Options within the meaning of Section 422 of the Code, but the Company makes no warranty as to the qualification of any Option as an Incentive Stock Option within the meaning of Section 422 of the Code.  If an Option granted hereunder fails for whatever reason to comply with the provisions of Section 422 of the Code, and such failure is not or cannot be cured, such Option shall be a Non-Statutory Stock Option.

 

9.                                      Limited Rights

 

The Committee may grant a Limited Right simultaneously with the grant of any Option to any Key Employee, with respect to all or some of the shares covered by such Option.  Limited Rights granted under the Plan are subject to the following terms and conditions:

 

(a)                                 Terms of Rights.  In no event shall a Limited Right be exercisable in whole or in part before the expiration of six months from the date of grant of the Limited Right.  A Limited Right may be exercised only in the event of a Change in Control.

 

The Limited Right may be exercised only when the underlying Option is eligible to be exercised, provided that the Fair Market Value of the underlying shares on the day of exercise is greater than the exercise price of the related Option.

 

Upon exercise of a Limited Right, the related Option shall cease to be exercisable.  Upon exercise or termination of an Option, any related Limited Rights shall terminate.  The Limited Rights may be for no more than 100% of the difference between the exercise price and the Fair Market Value of the Common Stock subject to the underlying Option.  The Limited Right is transferable only when the underlying Option is transferable and under the same conditions.

 

(b)                                 Payment. Upon exercise of a Limited Right, the holder shall promptly receive from the Company an amount of cash equal to the difference between the Fair Market Value on the Date of Grant of the related Option and the Fair Market Value of the underlying shares on the date the Limited Right is exercised, multiplied by the number of shares with respect to which such Limited Right is being exercised.  Alternatively, the Limited Right may be exercisable for shares of stock of the Company or for shares of the acquiring corporation or its parent, as applicable.  The number of shares to be received on the exercise of such Limited Right shall be determined by dividing the amount of cash that would have been available under the first sentence above by the Fair Market Value at the time of exercise of the shares underlying the Option subject to the Limited Right.

 

8

 

10.                               Dividend Equivalent Rights

 

Simultaneously with the grant of any Option to a Participant, the Committee may grant a Dividend Equivalent Right with respect to all or some of the shares covered by such Option. Dividend Equivalent Rights granted under this Plan are subject to the following terms and conditions:

 

(a)                                 Terms of Rights. The Dividend Equivalent Right provides the Participant with a cash benefit per share for each share underlying the unexercised portion of the related Option equal to the amount of any extraordinary dividend (as defined in Section 10(c)) per share of Common Stock declared by the Company. The terms and conditions of any Dividend Equivalent Right shall be evidenced in the Option agreement entered into with the Participant and shall be subject to the terms and conditions of the Plan. The Dividend Equivalent Right is transferable only when the related Option is transferable and under the same conditions.

 

(b)                                 Payment. Upon the payment of an extraordinary dividend, the Participant holding a Dividend Equivalent Right with respect to Options or portions thereof which have vested shall promptly receive from the Company the amount of cash equal to the amount of the extraordinary dividend per share of Common Stock, multiplied by the number of shares of Common Stock underlying the unexercised portion of the related Option.  With respect to options or portions thereof which have not vested, the amount that would have been received pursuant to the Dividend Equivalent Right with respect to the shares underlying such unvested Option or portion thereof shall be paid to the Participant holding such Dividend Equivalent Right together with earnings thereon, on such date as the Option or portion thereof becomes vested.  Payments shall be decreased by the amount of any applicable tax withholding prior to distribution to the Participant as set forth in Section 19.

 

(c)                                  Extraordinary Dividend.  For purposes of this Section 10, an extraordinary dividend is any dividend paid on shares of Common Stock where (i) the dividend rate exceeds the Bank’s weighted average cost of funds on interest-bearing liabilities for the current quarter, or (ii) the annualized aggregate dollar amount of the dividend exceeds the Bank’s after-tax net income for the current quarter.  For purposes of this Section 10, the dividend rate equals the quotient, expressed as a percentage, of (i) the annualized dollar amount of the dividend, and (ii) the last trade price of the Company’s Common Stock on the day immediately before the dividend is declared.

 

11.                               Reload Option

 

Simultaneously with the grant of any Option to a Participant, the Committee may grant a Reload Option with respect to all or some of the shares covered by such Option.  A Reload Option may be granted to a Participant who satisfies all or part of the exercise price of the Option with shares of Common Stock (as described in Section 13(c) below).  The Reload Option represents an additional option to acquire the same number of shares of Common Stock as is used by the Participant to pay for the original Option.  Reload Options may also be granted to replace Common Stock withheld by the Company for payment of a Participant’s withholding tax under Section 19.   A Reload Option is subject to all of the same terms and conditions as the original Option except that (i) the exercise price of the shares of Common Stock subject to the Reload Option will be determined at the time the original Option is exercised and (ii) such Reload Option will conform to all provisions of the Plan at the time the original Option is exercised.

 

9

 

12.                               Surrender of Option

 

In the event of a Participant’s termination of employment or termination of service as a result of death, Disability or Normal Retirement, the Participant (or his or her personal representative(s), heir(s), or devisee(s)) may, in a form acceptable to the Committee, make application to surrender all or part of the Options held by such Participant in exchange for a cash payment from the Company of an amount equal to the difference between the Fair Market Value of the Common Stock on the date of termination of employment or the date of termination of service on the Board and the exercise price per share of the Option.  Whether the Committee accepts such application or determines to make payment, in whole or part, is within its absolute and sole discretion, it being expressly understood that the Committee is under no obligation to any Participant whatsoever to make such payments.  In the event that the Committee accepts such application and determines to make payment, such payment shall be in lieu of the exercise of the underlying Option and such Option shall cease to be exercisable.

 

13.                               Alternate Option Payment Mechanism

 

The Committee has sole discretion to determine what form of payment it will accept for the exercise of an Option. The Committee may indicate acceptable forms in the agreement with the Participant covering such Options or may reserve its decision to the time of exercise.  No Option is to be considered exercised until payment in full is accepted by the Committee or its agent.

 

(a)                                 Cash Payment. The exercise price may be paid in cash or by certified check.  To the extent permitted by law, the Committee may permit all or a portion of the exercise price of an Option to be paid through borrowed funds.

 

(b)                                 Cashless Exercise. Subject to vesting requirements, if applicable, a Participant may engage in a “cashless exercise” of the Option.  Upon a cashless exercise, the Participant shall give the Company written notice of the exercise of the Option, together with an order to a registered broker-dealer or equivalent third party, to sell part or all of the Common Stock subject to the Option and to deliver enough of the proceeds to the Company to pay the Option exercise price and any applicable withholding taxes.  If the Participant does not sell the Common Stock subject to the Option through a registered broker-dealer or equivalent third party, the Optionee can give the Company written notice of the exercise of the Option and the third party purchaser of the Common Stock subject to the Option shall pay the Option exercise price plus applicable withholding taxes to the Company.

 

(c)                                  Exchange of Common Stock. The Committee may permit payment of the Option exercise price by the tendering of previously acquired shares of Common Stock.  All shares of Common Stock tendered in payment of the exercise price of an Option shall be valued at the Fair Market Value of the Common Stock on the date prior to the date of exercise.  No tendered shares of Common Stock which were acquired by the Participant upon the previous exercise of an Option or as awards under a stock award plan (such as the Company’s Recognition and Retention Plan) shall be accepted for exchange unless the Participant has held such shares (without restrictions imposed by said plan or award) for at least six months prior to the exchange.

 

14.                               Rights of a Stockholder

 

A Participant shall have no rights as a stockholder with respect to any shares covered by a Non-Statutory and/or Incentive Stock Option until the date of issuance of a stock certificate for such shares.  Nothing in the Plan or in any Award granted confers on any person any right to continue in the employ of 

 

10

 

the Company or its Affiliates or to continue to perform services for the Company or its Affiliates or interferes in any way with the right of the Company or its Affiliates to terminate his services as an officer, director or employee at any time.

 

15.                               Agreement with Participants

 

Each Award of Options, Reload Options, Limited Rights and/or Dividend Equivalent Rights will be evidenced by a written agreement, executed by the Participant and the Company or its Affiliates, that describes the conditions for receiving the Awards, including the date of Award, the purchase price, applicable periods, and any other terms and conditions as may be required by the Board or applicable securities law.

 

16.                               Designation of Beneficiary

 

A Participant may, with the consent of the Committee, designate a person or persons to receive, in the event of death, any Option, Reload Option, Limited Rights Award or Dividend Equivalent Rights to which he would then be entitled.  Such designation will be made upon forms supplied by and delivered to the Company and may be revoked in writing.   If a Participant fails effectively to designate a Beneficiary, then his estate will be deemed to be the Beneficiary.

 

17.                               Dilution and Other Adjustments

 

In the event of any change in the outstanding shares of Common Stock by reason of any stock dividend or split, pro rata return of capital to all shareholders, recapitalization, or any merger, consolidation, spin-off, reorganization, combination or exchange of shares, or other corporate change, or other increase or decrease in such shares, without receipt or payment of consideration by the Company, the Committee shall make such adjustments to previously granted Awards, to prevent dilution or enlargement of the rights of the Participant, including any or all of the following:

 

(a)                                 adjustments in the aggregate number of shares of Common Stock that may be awarded under the Plan;

 

(b)                                 adjustments in the aggregate number of shares of Common Stock that may be awarded to any single individual under the Plan;

 

(c)                                  adjustments in the aggregate number of shares of Common Stock covered by Awards already made under the Plan; or

 

(d)                                 adjustments in the purchase price of outstanding Incentive and/or Non-Statutory Stock Options, or any Related Options or any Limited Rights attached to such Options.

 

No such adjustments may, however, materially change the value of benefits available to a Participant under a previously granted Award.  With respect to Incentive Stock Options, no such adjustment shall be made if it would be deemed a “modification” of the Award under Section 424 of the Code.

 

18.                               Effect of a Change in Control on Option Awards

 

In the event of a Change in Control, the Committee and the Board of Directors will take one or more of the following actions to be effective as of the date of such Change in Control:

 

11

 

(a)                                 provide that such Options shall be assumed, or equivalent options shall be substituted (“Substitute Options”) by the acquiring or succeeding corporation (or an affiliate thereof), provided that: (A) any such Substitute Options exchanged for Incentive Stock Options shall meet the requirements of Section 424(a) of the Code, and (B) the shares of stock issuable upon the exercise of such Substitute Options shall constitute securities registered in accordance with the Securities Act of 1933, as amended (“1933 Act”) or such securities shall be exempt from such registration in accordance with Sections 3(a)(2) or 3(a)(5) of the 1933 Act, (collectively, “Registered Securities”), or in the alternative, if the securities issuable upon the exercise of such Substitute Options shall not constitute Registered Securities, then the Participant will receive upon consummation of the Change in Control a cash payment for each Option surrendered equal to the difference between the (1) Fair Market Value of the consideration to be received for each share of Common Stock in the Change in Control times the number of shares of Common Stock subject to such surrendered Options, and (2) the aggregate exercise price of all such surrendered Options, or

 

(b)                                 in the event of a transaction under the terms of which the holders of Common Stock will receive upon consummation thereof a cash payment (the “Merger Price”) for each share of Common Stock exchanged in the Change in Control transaction,  make or provide for a cash payment to the Participants equal to the difference between (A) the Merger Price times the number of shares of Common Stock subject to such Options held by each Optionee (to the extent then exercisable at prices not in excess of the Merger Price) and (B) the aggregate exercise price of all such surrendered Options in exchange for such surrendered Options.

 

19.                               Withholding

 

There may be deducted from each distribution of cash and/or Common Stock under the Plan the minimum amount of tax required by any governmental authority to be withheld.  Shares of Common Stock shall be withheld where required from any distribution of Common Stock.

 

20.                               Amendment of the Plan

 

The Board may at any time, and from time to time, modify or amend the Plan in any respect, or modify or amend an Award received by Key Employees and/or Outside Directors; provided, however, that no such termination, modification or amendment may affect the rights of a Participant, without his consent, under an outstanding Award.  Any amendment or modification of the Plan or an outstanding Award under the Plan, including but not limited to the acceleration of vesting of an outstanding Award for reasons other than death, Disability, Normal Retirement, or a Change in Control, shall be approved by the Committee or the full Board of the Company.

 

21.                               Effective Date of Plan

 

The Plan shall become effective upon the date of, or a date determined by the Board of Directors following approval of the Plan by the Company’s stockholders.

 

22.                               Termination of the Plan

 

The right to grant Awards under the Plan will terminate upon the earlier of (i) 10 years after the Effective Date, or (ii) the date on which the exercise of Options or related Rights equaling the maximum number of shares reserved under the Plan occurs, as set forth in Section 5.  The Board may suspend or 

 

12

 

terminate the Plan at any time, provided that no such action will, without the consent of a Participant, adversely affect his rights under a previously granted Award.

 

23.                               Applicable Law

 

The Plan will be administered in accordance with the laws of the State of Illinois.

 

IN WITNESS WHEREOF, the Company has caused the Plan to be executed by its duly authorized officers and the corporate seal to be affixed and duly attested, as of the 21st day of May, 2003.

 

Date Approved by Stockholders:  May 21, 2003

 

Effective Date:             May 21, 2003

 

 

	
ATTEST:
    	
 
    	
AJS BANCORP, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Patricia A. Butkus
    	
 
    	
/s/   Thomas R. Butkus
    
	
Secretary
    	
 
    	
Chief   Executive Officer
    

 

13

 

FIRST AMENDMENT TO THE

AJS BANCORP, INC.

2003 STOCK OPTION PLAN

 

Pursuant to Section 20 of the AJS Bancorp, Inc. 2003 Stock Option Plan (the “2003 Plan”), the 2003 Plan is hereby amended, effective as of December 28, 2005, as follows:

 

1.                                      By adding the following new Section 9(c) to the 2003 Plan:

 

“(c)         Relinquishment of Rights.  Notwithstanding anything in the Plan to the contrary, effective as of December 28, 2005, the Committee shall not grant any new Awards of Limited Rights to any Key Employees.  With respect to outstanding Awards of Limited Rights granted prior to December 28, 2005, the Board of Directors shall take such action as it determines to be necessary and appropriate to obtain the consent of Participants to relinquish their rights to such outstanding Limited Rights prior to December 31, 2005.  Outstanding Awards of Limited Rights that are relinquished by Participants pursuant to the foregoing shall be evidenced by a written consent form signed and dated by the affected Participant in accordance with Section 20 of the Plan, provided, however, that nothing in the consent form shall (i) affect the Participant’s other rights under his outstanding Options, or (ii) restrict the ability of the Company, in its sole discretion, or any third party to make a cash payment to the Participant in exchange for the termination or cancellation of the Participant’s Options.  Limited Rights for which no Participant consent form is received by the Company shall remain subject to the relevant terms and provisions of the Plan.”

 

2.                                      By adding the following new paragraph at the end of Section 15 of the 2003 Plan:

 

“Notwithstanding anything in the Plan to the contrary, no provision of the Plan shall operate to require the cash settlement of a stock option under any circumstance that is not within the sole discretion of the Company.”

 

3.                                      By substituting the following for Section 18(a) of the 2003 Plan:

 

“(a)         provide that such Options shall be assumed, or equivalent options shall be substituted (“Substitute Options”) by the acquiring or succeeding corporation (or an affiliate thereof), provided that: (A) any such Substitute Options exchanged for Incentive Stock Options shall meet the requirements of Section 424(a) of the Code, and (B) the shares of stock issuable upon the exercise of such Substitute Options shall constitute securities registered in accordance with the Securities Act of 1933, as amended (“1933 Act”) or such securities shall be exempt from such registration in accordance with Sections 3(a)(2) or 3(a)(5) of the 1933 Act, (collectively, “Registered Securities”), or in the alternative, and in the sole discretion of the Company, if the securities issuable upon the exercise of such Substitute Options shall not constitute Registered Securities, then the Participant

 

 

will receive upon consummation of the Change in Control a cash payment for each Option surrendered equal to the difference between the (1) Fair Market Value of the consideration to be received for each share of Common Stock in the Change in Control times the number of shares of Common Stock subject to such surrendered Options, and (2) the aggregate exercise price of all such surrendered Options, or”

 

IN WITNESS WHEREOF, AJS Bancorp, Inc. has caused this amendment to be adopted by a duly authorized officer, this 30th day of December, 2005.

 

 

	
 
    	
AJS   BANCORP, INC.
    
	
 
    	
 
    
	
 
    	
By
    	
/s/   Thomas R. Butkus
    
	
 
    	
Its
    	
CEOExhibit 10.4

 

A.J. SMITH FEDERAL SAVINGS BANK

AMENDED AND RESTATED

2005 EXECUTIVES AND DIRECTORS DEFERRED COMPENSATION PLAN

 

 

A.J. SMITH FEDERAL SAVINGS BANK

AMENDED AND RESTATED

2005 EXECUTIVES AND DIRECTORS DEFERRED COMPENSATION PLAN

 

The A.J. Smith Federal Savings Bank Amended and Restated 2005 Executives and Directors Deferred Compensation Plan (the “Plan”) was originally established effective January 1, 2005, for the benefit of certain Executive Employees and members of the Board of Directors of A.J. Smith Federal Savings Bank (the “Bank”).  The purpose of the Plan is to permit Executive Employees and Directors to contribute a portion of their Compensation on a pretax basis toward retirement benefits, enhance the overall effectiveness of the Bank’s executive compensation program and to attract, retain and motivate such individuals.  The Plan is hereby amended and restated effective as of January 1, 2008, in order to conform the Plan to the final Treasury Regulations promulgated under Section 409A of the Internal Revenue Code (the “Code”).

 

ARTICLE I

DEFINITIONS

 

Wherever used herein the following terms shall have the meanings hereinafter set forth:

 

1.1          “Account” or “Accounts” means the account or accounts maintained under the Plan by the Bank in the Participant’s name, including the Participant’s Compensation Deferral Account.

 

1.2          “Bank” means A.J. Smith Federal Savings Bank, or, to the extent provided in Section 6.8 below, any successor corporation or other entity resulting from a merger or consolidation into or with the Bank, or a transfer or sale of substantially all of the assets of the Bank.  Any references herein to the “Company” shall refer to AJS Bancorp, Inc., the holding company of the Bank.

 

1.3          “Base Salary” means a Participant’s annual base salary rate for the Plan Year, as specified by the Bank prior to each Plan Year.

 

1.4          “Board” means the Board of Directors of the Bank.

 

1.5          “Bonus” means the additional cash remuneration payable to a Participant annually pursuant to the Bank’s performance compensation program or any other plan, program or arrangement under which the Bank pays an amount of cash remuneration to a Participant above such Participant’s Base Salary.

 

1.6          “Cause” means an individual’s personal dishonesty, willful misconduct, any breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, or the willful violation of any law, rule or regulation (other than traffic violations or similar offenses), or a final cease-and-desist order, any of which results in material loss to the Bank.

 

 

1.7          “Change in Control” means (i) a change in ownership of the Bank under paragraph (a) below, or (ii) a change in effective control of the Bank under paragraph (b) below, or (iii) a change in the ownership of a substantial portion of the assets of the Bank under paragraph (c) below:

 

(a)                                 Change in the ownership of the Bank.  A change in the ownership of the Bank shall occur on the date that any one person, or more than one person acting as a group (as defined in Treasury Regulation Section 1.409A-3(i)(5)(v)(B)), acquires ownership of stock of the corporation that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of such corporation.  However, if any one person or more than one person acting as a group, is considered to own more than 50 percent of the total fair market value or total voting power of the stock of a corporation, the acquisition of additional stock by the same person or persons is not considered to cause a change in the ownership of the corporation (or to cause a change in the effective control of the corporation (within the meaning of paragraph (b) below).  An increase in the percentage of stock owned by any one person, or persons acting as a group, as a result of a transaction in which the corporation acquires its stock in exchange for property will be treated as an acquisition of stock for purposes of this section.  This paragraph (a) applies only when there is a transfer of stock of a corporation (or issuance of stock of a corporation) and stock in such corporation remains outstanding after the transaction.

 

(b)                                 Change in the effective control of the Bank.  A change in the effective control of the Bank shall occur on the date that either (i) any one person, or more than one person acting as a group (as defined in Treasury Regulation Section 1.409A-3(i)(5)(vi)(D)), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the corporation possessing 30% or more of the total voting power of the stock of such corporation; or (ii) a majority of members of the corporation’s board of directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the corporation’s board of directors prior to the date of the appointment or election, provided that this subsection (b) is inapplicable where a majority shareholder of the Bank is another corporation.  For purposes of (b)(ii), the term corporation refers solely to a corporation for which no other corporation is a majority shareholder.  In the absence of an event described in paragraph (i) or (ii), a change in the effective control of a corporation will not have occurred.  If any one person, or more than one person acting as a group, is considered to effectively control a corporation (within the meaning of this paragraph (b)), the acquisition of additional control of the corporation by the same person or persons is not considered to cause a change in the effective control of the corporation (or to cause a change in the ownership of the corporation within the meaning of

 

2

 

paragraph (a)).  Persons will not be considered to be acting as a group solely because they purchase or own stock of the same corporation at the same time, or as a result of the same public offering.

 

(c)                                  Change in the ownership of a substantial portion of the Bank’s assets.  A change in the ownership of a substantial portion of the Bank’s assets shall occur on the date that any one person, or more than one person acting as a group (as defined in Treasury Regulation Section 1.409A-3(i)(5)(vii)(C)), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the corporation that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the corporation immediately prior to such acquisition or acquisitions.  For this purpose, gross fair market value means the value of the assets of the corporation, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.  There is no Change in Control event under this paragraph (c) when there is a transfer to an entity that is controlled by the shareholders of the transferring corporation immediately after the transfer.

 

(d)                                 For all purposes hereunder, the definition of Change in Control shall be construed and interpreted consistent with the requirements of Code Section 409A and Treasury Regulation Section 1.409A-3(i)(5) or other guidance issued thereunder, except to the extent that such Treasury Regulations are superseded by subsequent guidance.

 

1.8          “Code” means the Internal Revenue Code of 1986, as amended from time to time.

 

1.9          “Compensation” means a Participant’s Base Salary, Bonus, or Director’s Fees payable in any calendar year.  Compensation deferrals elected under this Plan shall not affect the determination of compensation or earnings for purposes of any other plan, policy or program maintained by the Bank, except any tax-qualified plan of the Bank.

 

1.10        “Compensation Deferral Account” means the Account or Accounts maintained under the Plan by the Bank in the Participant’s name to which the Participant’s Compensation Deferral Contributions are credited in accordance with the Plan.

 

1.11        “Compensation Deferral Contribution” means the amount of Compensation a Participant elects to defer under Section 2.1 of the Plan.

 

1.12        “Director” means an individual who is a member of the Board and who is not also an employee of the Bank or the Company.

 

1.13        “Director’s Fees” means the annual and periodic fees paid to the Director by the Bank for service on the Board.

 

3

 

1.14        “Disability” means any case in which the Participant: (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under and accident and health plan covering employees of the Participant’s employer, (iii) is determined to be totally disabled by the Social Security Administration.

 

1.15        “Executive Employee” means each executive employee of the Bank designated as an Executive Employee by the Chief Executive Officer and approved by the Board.

 

1.16        “Participant” means an Executive Employee of the Bank who is eligible for participation pursuant to Section 1.15 or a Director who has completed the election and enrollment forms provided by the Bank.

 

1.17        “Plan” means the A.J. Smith Federal Savings Bank Amended and Restated 2005 Executives and Directors Deferred Compensation Plan, as set forth herein and as hereinafter amended from time to time.  This Plan is intended to be an excess benefit plan within the meaning of Section 3(36) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) to the extent of the benefits provided hereunder which are described in said Section 3(36), and to be an unfunded plan of deferred compensation described in Section 201(2) of ERISA.

 

1.18        “Plan Year” means the calendar year.

 

1.19        “Separation from Service” means, with respect to an Executive Employee, the Participant’s death, retirement or other termination of employment with the Bank within the meaning of Code Section 409A.  No Separation from Service shall be deemed to occur due to military leave, sick leave or other bona fide leave of absence if the period of such leave does not exceed six months or, if longer, so long as the Participant’s right to reemployment is provided by law or contract.  If the leave exceeds six months and the Participant’s right to reemployment is not provided by law or by contact, then the Participant shall have a Separation from Service on the first date immediately following such six-month period.

 

Whether a termination of employment has occurred is determined based on whether the facts and circumstances indicate that the employer and employee reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services the employee would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to less than 50% of the average level of bona fide services performed over the immediately preceding 36 months (or such lesser period of time in which the Participant has provided services for the Bank).

 

With respect to a Director, “Separation from Service” shall be interpreted consistent with Code Section 409A and the Treasury Regulations thereunder, and shall mean the Director’s

 

4

 

death, retirement, or termination from service on the Bank’s Board of Directors following a failure to be reappointed or reelected to the Board.  For these purposes, the Director shall not be deemed to have a Separation from Service until the Director no longer serves on the Board of Directors of the Bank, or any member of a controlled group of corporations with the Bank within the meaning of Treasury Regulation Section 1.409A-1(h)(3).

 

1.20        “Specified Employee” means with respect to a publicly traded company, any employee of the Bank or Company who is also a “Key Employee” as such term is defined in Code Section 416(i), without regard to paragraph 5 thereof.

 

1.21        Words in the masculine gender shall include the feminine and the singular shall include the plural, and vice versa, unless qualified by the context.  Any headings used herein are included for ease of reference only and are not be construed so as to alter the terms hereof.

 

ARTICLE II

COMPENSATION DEFERRAL CONTRIBUTIONS

 

2.1          Compensation Deferral Elections.  Any Executive Employee or Director may elect to become a Participant under the Plan by completing the election form provided by the Bank.  A Participant may elect to defer annually the receipt of a portion of the Compensation otherwise payable to him by the Bank in any Plan Year.  The amount of Compensation deferred by a Participant shall be a fixed percentage of such Compensation as indicated in the Deferral Agreement with Distribution Elections, attached hereto as Exhibit A, but shall not exceed: (i) twenty percent (20%) of such Participant’s Base Salary; (ii) fifty percent (50%) of such Participant’s annual Bonus; (iii) and one hundred percent (100%) of such Participant’s Director’s Fees.

 

The election by which a Participant elects to defer Compensation as provided in this Plan shall be in writing, signed by the Participant, and delivered to the Bank prior to January 1 of the Plan Year in which the Compensation to be deferred is otherwise payable to the Participant; except that in the year in which a Participant first becomes eligible to participate in the Plan, such Participant may make an election to defer Compensation within 30 days after the date he becomes eligible for services to be performed after the election is made.

 

Any deferral election made by the Participant shall be irrevocable with respect to the Compensation for the Plan Year of the election.

 

For Plan Years following the initial Plan Year of participation, a Participant may complete a Notice of Adjustment of Deferral (attached hereto as Exhibit C), provided that such election is made no later than December 31 of the Plan Year immediately preceding the Plan Year for which it is to apply.

 

2.2          Investment of Participants’Accounts.  All Compensation Deferral Contributions shall be credited to a Participant’s Account as of the last day of the month during which the Compensation amounts would have been paid to the Participant, if not deferred.  All amounts credited to a Participant’s Account shall be credited with interest monthly, at a rate per annum

 

5

 

equal to two percentage points above the prime rate, as published in The Wall Street Journal on the first day of the month, until the Account has been fully distributed to the Participant (or the Participant’s beneficiary) in the manner selected by the Participant herein in the Deferral Agreement with Distribution Elections; provided that, if a Participant’s Accounts are held or maintained by the Bank in a grantor trust, in accordance with Section 6.12, such Participant’s Accounts shall be credited with interest at a rate equal to that earned by the investments of such trust.  The Bank shall provide each Participant with a written statement of his Accounts at least annually.

 

2.3          Vesting of Participants’ Accounts.  A Participant shall be fully vested in the amount in his Compensation Deferral Account at all times.

 

2.4          Cessation of Deferrals.  All Compensation Deferral Contributions shall cease upon a Participant’s Separation from Service.

 

ARTICLE III

DISTRIBUTION OF PARTICIPANTS’ ACCOUNTS

 

3.1          Distribution of Participants’ Accounts.  The Participant’s Compensation Deferral Accounts shall be distributed to the Participant, in accordance with this Article III, and shall generally commence on the first day of the first month following the event that triggers distribution, provided, however, if the Participant is a Specified Employee and the payment is made due to Separation from Service, no payments shall be made during the first six (6) months following the Participant’s Separation from Service.  In such event, any distribution which would otherwise be paid to the Participant during such period shall be accumulated and paid to the Participant in a lump sum on the first day of the seventh month following his Separation from Service.  All subsequent distributions shall be paid in accordance with the Participant’s Deferral Agreement with Distribution Elections.  All distributions shall be made in cash.

 

3.2          Form of Distribution.  Subject to Section 3.1, each Participant shall elect the form and timing of the distribution of his Accounts at the time the Participant elects Compensation Deferral Contributions under Section 2.1 above.  The Participant may elect to have his Accounts distributed as follows:

 

(a)         in a lump sum distribution; or

(b)         in substantially equal monthly installment payments over a fixed period of 5, 10, or 15 years.

 

3.3          Time of Distribution.  A Participant may elect to receive a distribution of his Compensation Deferral Accounts commencing upon either: (i) a specified date or (ii) his Separation from Service, by completing the Deferral Agreement with Distribution Elections form attached hereto as Exhibit A and indicating his election therein

 

3.4          Disability.  Notwithstanding the Participant’s election under Section 3.3, upon a Participant’s Separation from Service due to Disability, his Compensation Deferral Account shall be distributed in the manner elected by the Participant in the Deferral Agreement with

 

6

 

Distribution Elections for Disability distributions.  If the Participant has not made an alternative election with respect to distributions on Separation of Service due to Disability, distributions from the Compensation Deferral Accounts shall be made in the manner selected by the Participant pursuant Section 3.3.

 

3.5          Distribution Due to Death.  If a Participant dies after distribution of his Accounts has commenced, but before complete distribution of his Accounts, any remaining amount in the Participant’s Accounts shall continue to be distributed, in accordance with the Participant’s existing election, to the beneficiary or beneficiaries designated by the Participant in a Beneficiary Designation Form delivered to the Bank in the form attached hereto as Exhibit B.  If a Participant has not designated a beneficiary under the Plan, or if no designated beneficiary is living on the date of distribution hereunder, amounts distributable pursuant to this Section shall be distributed first to the Participant’s surviving spouse, or if none, to the Participant’s estate.  If the Participant dies before commencement of distributions, the Participant’s Accounts shall be distributed to the Participant’s beneficiary(ies) in the manner selected by the Participant in the Deferral Agreement with Distribution Elections.

 

3.6          Change in Control.  In the event of a Change in Control of the Bank or the Company prior to the Participant’s Separation from Service or specified date chosen by the Participant for the commencement of distributions pursuant to Section 3.3, then notwithstanding the Participant’s election under Section 3.3, the Participant’s Compensation Deferral Account shall be distributed in the manner elected by the Participant on account of a Change in Control in the Deferral Agreement with Distribution Elections attached hereto as Exhibit A.  If the Participant has not made an alternative election with respect to a Change in Control, distributions from the Compensation Deferral Accounts shall be made in the manner selected by the Participant pursuant to Section 3.3.

 

3.7          Unforeseeable Emergency.  A Participant may request, by writing filed with the Bank, that a distribution be made to him of all or part of the amount then credited to his Accounts on account of a severe financial hardship occurring as the result of an “unforeseeable emergency.”  An unforeseeable emergency includes an unexpected illness or accident of the Participant, the Participant’s spouse, beneficiary or a dependent (as defined in Code Section 152(a)), loss of a Participant’s property due to casualty, or other similar, extraordinary, unforeseeable circumstances beyond the control of the Participant.  The severe financial hardship may not be relieved by an early distribution under this Plan to the extent it might otherwise be relieved through reimbursement or compensation by insurance or otherwise, by liquidation of a Participant’s assets, or by cessation of Compensation deferrals under the Plan.  Any hardship distribution under this Section will be limited to the amount necessary to meet the emergency, plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution.  The amount distributed due to an Unforseeable Emergency will be deducted from any amounts payable to the Participant under any other Section o this Article III.

 

3.8          Termination due to Cause.  In the event a Participant’s employment or service is terminated for Cause, all rights of the Participant under the Plan shall be immediately forfeited and the Bank shall have no obligation to provide any benefits to the Participant after termination for Cause.

 

7

 

ARTICLE IV

ADMINISTRATION OF THE PLAN

 

4.1          Administration by the Bank.  The Bank shall be responsible for the general operation and administration of the Plan and for carrying out the provisions thereof.

 

4.2          Powers and Duties of Bank.  The Bank shall administer the Plan in accordance with its terms and shall have all powers necessary to carry out the provisions of the Plan.  The Bank shall interpret the Plan and shall determine all questions arising in the administration, interpretation, and application of the Plan, including but not limited to, questions of eligibility and the status and rights of employees, Participants and other persons.  Any such determination by the Bank shall be conclusive and binding on all persons, subject to the requirements of Code Section 409A.  The regularly kept records of the Bank shall be conclusive and binding upon all persons with respect to a Participant’s date and length of employment, time and amount of compensation and the manner of payment thereof, type and length of any absence from work, applicable interest rate, and all other matters contained therein relating to Participants.

 

ARTICLE V

AMENDMENT OR TERMINATION

 

5.1          Amendment or Termination.  The Bank intends the Plan to be permanent but reserves the right to amend or terminate the Plan.  Any such amendment or termination shall be made pursuant to a written resolution of the Board and shall be effective as of the date of such resolution.  The Bank specifically reserves the right to amend the credited rate of interest provided for in Section 2.2; provided that, any such change will not reduce the amount of interest credited to a Participant’s Account prior to, or otherwise reduce the amount in Participant’s Account as of the effective date of the amendment.

 

5.2          Effect of Amendment or Termination.  No amendment or termination of the Plan shall divest any Participant or beneficiary of the amount in the Participant’s Accounts, or of any rights to which the Participant would have been entitled if the Plan had been terminated immediately prior to the effective date of such amendment or termination.  Such termination shall become effective as of the date specified in such instrument.  Written notice of any termination shall be given to the Participants as soon as practicable after the instrument is executed.  Subject to the requirements of Code Section 409A, in the event of complete termination of the Plan, the Plan shall cease to operate and the Bank shall pay out to each Participant his benefit as if the Participant had terminated service as of the effective date of the complete termination.  Such complete termination of the Plan shall occur only under the following circumstances and conditions:

 

(a)                                 The Board may terminate the Plan within 12 months of a corporate dissolution taxed under Code Section 331, or with approval of a Bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A), provided that the amounts deferred under the Plan are included in the Participant’s gross income in the latest of (i) the calendar year in which the Plan terminates; (ii) the calendar year in which the amount is no longer subject to a

 

8

 

substantial risk of forfeiture; or (iii) the first calendar year in which the payment is administratively practicable.

 

(b)                                 The Board may terminate the Plan by irrevocable Board action taken within the 30 days preceding a Change in Control (but not following a Change in Control), provided that the Plan shall only be treated as terminated if all substantially similar arrangements sponsored by the Bank are terminated so that the Participant and all participants under substantially similar arrangements are required to receive all amounts of compensation deferred under the terminated arrangements within 12 months of the date of the termination of the arrangements.

 

(c)                                  The Board may terminate the Plan at any time provided that (i) the termination of the Plan does not occur proximate to a downturn in the financial health of the Bank, (ii) all arrangements sponsored by the Bank that would be aggregated with this Plan under Treasury Regulations Section 1.409A-1(c) if the Participant covered by this Plan was also covered by any of those other arrangements are also terminated; (iii) no payments other than payments that would be payable under the terms of the arrangement if the termination had not occurred are made within 12 months of the termination of the arrangement; (iv) all payments are made within 24 months of the termination of the arrangements; and (v) the Bank does not adopt a new arrangement that would be aggregated with any terminated arrangement under Treasury Regulations Section 1.409A-1(c) if the Participant participated in both arrangements, at any time within three years following the date of termination of the arrangement.

 

9

 

ARTICLE VI

GENERAL PROVISIONS

 

6.1          Participants’ Rights Unsecured.  Except as set forth in Section 6.12, the Plan at all times shall be entirely unfunded and no provision shall at any time be made with respect to segregating any assets of the Bank for payment of any benefits hereunder.  The right of a Participant or the Participant’s beneficiary to receive a distribution of the Participant’s Accounts hereunder shall be an unsecured claim against the general assets of the Bank, and neither the Participant nor a beneficiary shall have any rights in or against any specific assets of the Bank.

 

6.2          Adverse Determination.  Except as otherwise provided herein, in the event of any final determination by the Internal Revenue Service or a court of competent jurisdiction, which determination is not appealable or the time for appeal or protest of which has expired that the Participants or any particular Participant is subject to federal income taxation on his accounts hereunder prior to the distribution to the Participant or Participants of such Accounts, each Participant shall be paid the portion of his Accounts includible in such Participant’s federal gross income.  This provision shall also apply to any beneficiary of a Participant.

 

6.3          No Guaranty of Benefits.  Nothing contained in the Plan shall constitute a guaranty by the Bank or any other person or entity that the assets of the Bank will be sufficient to pay any benefit hereunder.  No Participant or other person shall have any right to receive a benefit or a distribution of Accounts under the Plan except in accordance with the terms of the Plan.

 

6.4          No Enlargement of Employee Rights.  Establishment of the Plan shall not be construed to give any Participant the right to be retained in the service or employ of the Bank.

 

6.5          Spendthrift Provision.  No interest of any person or entity in, or right to receive a distribution under, the Plan shall be subject in any manner to sale, transfer, assignment, pledge, attachment, garnishment, or other alienation or encumbrance of any kind; nor may such interest or right to receive a distribution be taken, either voluntarily or involuntarily for the satisfaction of the debts of, or other obligations or claims against, such person or entity, including claims for alimony, support, separate maintenance and claims in bankruptcy proceedings.

 

6.6          Applicable Law.  The Plan shall be construed and administered under the laws of the State of Illinois except to the extent preempted by federal law.

 

6.7          Incapacity of Recipient.  Subject to applicable state law, if any person entitled to a payment under the Plan is deemed by the Bank to be incapable of personally receiving and giving a valid receipt for such payment, then, unless and until claim therefore shall have been made by a duly appointed guardian or other legal representative of such person, the Bank may provide for such payment or any part thereof to be made to any other person or institution contributing toward or providing for the care and maintenance of such person.  Any such payment shall be a payment for the account of such person and a complete discharge of any liability of the Bank and the Plan therefor.

 

10

 

6.8          Corporate Successors.  The Plan shall not be automatically terminated by a transfer or sale of assets of the Bank, or by the merger or consolidation of the Bank into or with any other corporation or other entity, but the Plan shall be continued after such sale, merger or consolidation only if and to the extent that the transferee, purchaser or successor entity agrees to continue the Plan.

 

6.9          Unclaimed Benefit.  Each participant or beneficiary shall keep the Bank notified of his or her current address.  The Bank shall not be obligated to search for the whereabouts of any person.  If the location of a Participant is not made known to the Bank within three years after the date on which payment of the Participant’s benefits under the Plan may first be made, payment may be made as though the Participant had died at the end of the three year period.  If, within one additional year after such three year period has elapsed, or, within three years after the actual death of a Participant, the Bank is unable to locate any beneficiary of the Participant, then the Bank shall have no further obligation to pay any benefit hereunder to such Participant or beneficiary or any other person and such benefit shall be irrevocably forfeited.

 

6.10        Limitations on Liability.  Notwithstanding any of the preceding provisions of the Plan, none of the Bank nor any individual acting as an employee or agent of the Bank shall be liable to any Participant, former Participant or any beneficiary or other person for any claim, loss, liability or expense incurred in connection with the Plan.

 

6.11        Claims Procedure.  In the even that a Participant’s claim for benefits under the Plan is denied in whole or in party by the Bank, the Bank will notify the Participant (or beneficiary) of the denial.  Such notification will be made in writing, within 90 days of the date the claim is received by the Bank.  The notification will include:  (i) the specific reasons for the denial; (ii) specific reference to the Plan provisions upon which the denial is based; (iii) a description of any additional information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and (iv) an explanation of the applicable review procedures.

 

The Participant (or beneficiary) has 60 days from the date he receives notice of a claim denial to file a written request for review of the denial with the Bank.  The Bank will review the claim denial and inform the Participant (or beneficiary) in writing of its decision within 60 days of the date the claim review request is received by the Bank.  This decision will be final.

 

6.12        Trust Agreement.  The Bank may enter into a rabbi trust agreement under which the Bank agrees to contribute to a trust for the purpose of accumulating assets to assist the Bank in fulfilling its obligation to Participants hereunder.  Such rabbi trust agreement shall be substantially in the form of the model trust agreement set forth in Internal Revenue Service Revenue Procedure 92-64, or any subsequent Internal Revenue Service Revenue Procedure, and shall include provisions required in such model trust agreement that all assets of the Trust shall be subject to the creditors of the Bank in the event of insolvency.

 

6.13        Severability.  If any provision of the Plan shall be held illegal or invalid for any reason, including the failure of the Plan, or any part thereof, to conform to the provisions of Code Section 409A, such illegality or invalidity shall not affect the remaining provisions of the Plan,

 

11

 

but the Plan shall be construed and enforced as if such illegal or invalid provision had never been included.

 

6.14        Change of Election to Delay Payment.  In the event that a Participant desires to modify his deferral period or payout period with respect to future Compensation Deferral Contributions, the Participant may file an election to delay the payment date or, if the Participant has elected a lump sum payout, to change the form of payment from a lump sum to a period of years (not to exceed 15 years), subject to the requirements of Code Section 409A and Treasury Regulations issued thereunder.  The new election must be filed at least 12 months prior to its becoming effective.  If the Participant becomes entitled to payment during such 12 month period, the new election form shall be ignored and reference shall be made to the prior filed election in determining the timing of the benefit payment.  In addition, except with respect to payments due to death, Disability or an Unforeseeable Emergency, the new election shall defer the first payment with respect to such election for a period of not less than 5 years from the date such payment would otherwise have been made.

 

12

 

Exhibit A

 

A. J. SMITH FEDERAL SAVINGS BANK

AMENDED AND RESTATED

2005 EXECUTIVES AND DIRECTORS DEFERRED COMPENSATION PLAN

DEFERRAL AGREEMENT WITH DISTRIBUTION ELECTIONS

 

Instructions:         New participants should use this Deferral Agreement with Distribution Elections to indicate the amount of deferral and the form of payment (e.g., lump sum or annual installments) in which you wish to receive your benefits under the A. J. Smith Federal Savings Bank Amended and Restated 2005 Executives and Directors Deferred Compensation Plan (the “Plan”).  If you are an existing participant who previously made an election as to the form of your distribution under the 2005 Executives and Directors Deferred Compensation Plan, you can change your election no later than December 31, 2008 by completing this form.  However, if you are satisfied with your prior election, you do NOT have to make a new election by completing this form.  If you do not complete this form, your prior election will remain in effect.

 

Due to IRS limitations, you may not make an election that would cause a payment to be made during 2008, or that would delay the commencement of a benefit that is otherwise scheduled to commence in 2008.

 

	
Print   Name:
    	
 
    	
 
    

 

I am a participant in the A. J. Smith Federal Savings Bank Amended and Restated 2005 Executives and Directors Deferred Compensation Plan (the “Plan”), which has been amended and restated effective as of January 1, 2008. Pursuant to Article II of the Plan, I understand that I may elect to defer the receipt of a fixed percentage of my Base Salary and Bonus (for Executive Employees), and up to 100% of my Director’s Fees (for non-employee Directors) that are due to me during calendar year 20      .

 

Executive Employees (complete this section):

 

In accordance with the Plan, I hereby elect to defer            % (designate percentage up to 20%) of my Base Salary,            % (designate percentage up to 50%) of my Bonus.  Such deferrals shall commence on January 1, 20      , and shall renew annually thereafter unless changed at least 30 days prior to January 1 of any year under the Plan.  I understand and agree that my deferral election applies only to my Base Salary and Bonus attributable to services I have not yet performed, and that no election may be made during 2008 that would cause a payment to be made during 2008, or that would delay the commencement of a benefit otherwise scheduled to commence in 2008.

 

Directors (complete this section):

 

In accordance with the Plan, I hereby elect to defer            % (designate percentage up to 100%) of my Director’s Fees.  Such deferrals shall commence on January 1, 20      , and shall renew annually thereafter unless changed at least 30 days prior to January 1 of any year under

 

 

the Plan.  I understand and agree that my deferral election applies only to Director’s Fees attributable to services I have not yet performed, and that no election may be made during 2008 that would cause a payment to be made during 2008, or that would delay the commencement of a benefit otherwise scheduled to commence in 2008

 

I understand that my election to defer shall continue in accordance with this Deferral Agreement with Distribution Elections until such time as I submit a Notice of Adjustment of Deferral (Exhibit C to the Plan) to the Plan administrator at least 30 days prior to prior to January 1 of any year under the Plan.  A Notice of Adjustment of Deferral can be used to adjust the amount of Base Salary, Bonus or Director’s Fees to be deferred or to discontinue deferrals altogether.

 

DISTRIBUTION FORM ELECTION OPTIONS

 

In accordance with terms of the Plan, I understand and agree that all Plan benefits shall be paid in the form I selected below at the time of this Deferral Agreement with Distribution Elections, and that such distribution form, once made by me, shall be irrevocable with respect to such Plan Year.  I also understand and agree that if I fail to select a form of benefit payment, the form of distribution shall be the form of payment elected on the most recent past Deferral Agreement with Distribution Elections.  I also understand and agree that my Account shall be distributed commencing on the first day of the first month following the occurrence of the event giving rise to the distribution, provided, however, that if I am a Specified Employee and the payment is made due to my Separation from Service, no payments shall be made during the first six (6) months following my Separation from Service, but rather, any distribution which would otherwise be paid to me during such period shall be accumulated and paid to me in a lump sum on the first day of the seventh month following my Separation from Service.  All subsequent distributions shall be paid in accordance with my Deferral Agreement with Distribution Elections.

 

Select either (i) or (ii) below:

 

(i)            Fixed Distribution Schedule at Specified Date

 

In accordance with the terms of the Plan, I hereby elect to receive my Plan benefits commencing on a specified date.  Payments hereunder shall commence in the year 20      .   In accordance therewith, I hereby elect to receive the amount of my Account in the following form (check one):

 

o Lump Sum Distribution

 

o Substantially equal monthly payments over a period of 5 years

 

o Substantially equal monthly payments over a period of 10 years

 

o Substantially equal monthly payments over a period of 15 years

 

 

(ii)           Separation from Service

 

In the event of my Separation from Service for any reason other than Cause, I hereby elect to receive my Account in the following form (check one):

 

o Lump Sum Distribution

 

o Substantially equal monthly payments over a period of 5 years

 

o Substantially equal monthly payments over a period of 10 years

 

o Substantially equal monthly payments over a period of 15 years

 

Notwithstanding the foregoing, in the event of my Disability, death prior to Separation from Service, or in the event of a Change in Control of the Bank or the Company prior to my Separation from Service or the fixed distribution schedule I selected above, as applicable, as such terms are defined in the Plan, I hereby elect the following alternative distribution forms.  I understand that these elections are optional, and that if not made, any relevant distribution will be made in accordance with my selection under (i) or (ii) above:

 

(iii)          Disability

 

In the event that my service on the Board or employment with the Bank or the Company is terminated on account of my Disability, I hereby elect to receive my Account in the following form (check one):

 

o Lump Sum Distribution

 

o Substantially equal monthly payments over a period of 5 years

 

o Substantially equal monthly payments over a period of 10 years

 

o Substantially equal monthly payments over a period of 15 years

 

(iv)          Death

 

In the event of my death prior to termination of service on the Board or termination of employment with the Bank or the Company, I hereby elect that my Account be distributed to my beneficiary(ies) in the following form (check one):

 

o Lump Sum Distribution

 

o Substantially equal monthly payments over a period of 5 years

 

o Substantially equal monthly payments over a period of 10 years

 

o Substantially equal monthly payments over a period of 15 years

 

 

(v)           Change in Control

 

In the event of a Change in Control of the Bank or the Company prior to my Separation from Service or the fixed distribution schedule I selected above, I hereby elect to receive my Account in the following form (check one):

 

o Lump Sum Distribution

 

o Substantially equal monthly payments over a period of 5 years

 

o Substantially equal monthly payments over a period of 10 years

 

o Substantially equal monthly payments over a period of 15 years

 

This Deferral Agreement with Distribution Elections shall become effective upon execution below by both the Participant and a duly authorized officer of the Bank.

 

Dated this            day of                               , 20      .

 

 

	
 
    	
 
    	
 
    
	
(Participant)
    	
 
    	
(Bank   duly authorized Officer)
    

 

 

Exhibit B

 

A.J. SMITH FEDERAL SAVINGS BANK

AMENDED AND RESTATED

2005 EXECUTIVES AND DIRECTORS DEFERRED COMPENSATION PLAN

 

BENEFICIARY DESIGNATION

 

	
Print Name:
    	
 
    

 

I hereby designate the following Beneficiary(ies) to receive any benefits under the Plan, following my death:

 

PRIMARY BENEFICIARY:

 

	
Name:
    	
 
    	
 
    	
%   of Benefit:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
%   of Benefit:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
%   of Benefit:
    	
 
    	
 
    

 

SECONDARY BENEFICIARY (if all Primary Beneficiaries pre-decease the Participant):

 

 

	
Name:
    	
 
    	
 
    	
%   of Benefit:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
%   of Benefit:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
%   of Benefit:
    	
 
    	
 
    

 

This Beneficiary Designation hereby revokes any prior Beneficiary Designation which may have been in effect.  This Beneficiary Designation is revocable.

 

	
 
    	
 
    	
 
    	
 
    
	
Date
    	
 
    	
Participant
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date
    	
 
    	
Compensation   Committee Member
    	
 
    

 

 

Exhibit C

 

A.J. SMITH FEDERAL SAVINGS BANK

AMENDED AND RESTATED

2005 EXECUTIVES AND DIRECTORS DEFERRED COMPENSATION PLAN

NOTICE OF ADJUSTMENT OF DEFERRAL

 

	
To:
    	
 
    	
A.   J. Smith Federal Savings Bank
    
	
Attention:
    	
 
    	
Plan   Administrator, Amended and Restated 2005 Executives and Directors Deferred   Compensation Plan
    

 

I hereby give notice of my election to adjust the amount of my Compensation deferral in accordance with my Deferral Agreement with Distribution Elections, dated the            day of                   , 20      .  This notice is submitted at least thirty (30) days prior to January 1st, and shall become effective as of January 1st, as specified below.

 

	
Adjust   my deferral as of:
    	
 
    	
January       ,   20
    
	
 
    	
 
    	
 
    
	
Deferred Base Salary
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Previous   Deferral Percentage
    	
 
    	
         %
    
	
New   Deferral Percentage
    	
 
    	
         %
    
	
N/A
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Deferred Bonus
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Previous   Deferral Percentage
    	
 
    	
         %
    
	
New   Deferral Percentage
    	
 
    	
         %
    
	
N/A
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Deferred Director’s Fees
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Previous   Deferral Percentage
    	
 
    	
         %
    
	
New   Deferral Percentage
    	
 
    	
         %
    
	
N/A
    	
 
    	
 
    

 

	
 
    	
 
    	
 
    	
 
    
	
Date
    	
 
    	
Participant   (Print)
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Participant   (Signature)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}]]