FIRST AMENDMENT TO SALARY CONTINUATION AGREEMENT

 

Exhibit 10.22(a)

 

FIRST AMENDMENT TO

SALARY CONTINUATION AGREEMENT

 

THIS AMENDMENT (the “Amendment”) is adopted March 29, 2016, by First South Bank, located in Washington, North Carolina (the “Employer”), and ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ (the “Executive”).

 

The Employer and the Executive executed a Salary Continuation Agreement dated June 3, 2014 (the “Agreement”) which provides deferred compensation benefits to the Executive under certain circumstances. The parties wish to amend the Agreement to increase the benefits provided pursuant to the Agreement. The parties agree and acknowledge that this Amendment (i) shall be interpreted in accordance with Internal Revenue Code Section 409A and (ii) increases the amount of benefits provided under the Agreement, but does not change the payment schedule thereunder.

 

NOW, THEREFORE, the Employer and the Executive adopt the following amendments to the Agreement:

 

Section 2.1 of the Agreement shall be deleted and replaced by the following:

 

2.1           Normal Retirement Benefit. Upon Separation from Service after Normal Retirement Age, the Employer shall pay the Executive an annual benefit in the amount of Twenty-Seven Thousand Dollars ($27,000) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Separation from Service and continuing for fifteen (15) years, subject to the conditions and limitations hereinafter set forth.

 

Sections 2.4, 2.5 and 2.6 of the Agreement shall be deleted and replaced by the following:

 

2.4           Change in Control Benefit. If a Change in Control occurs, followed within twenty-four (24) months by Separation of Service prior to Normal Retirement Age, the Employer shall pay the Executive an annual benefit in the amount of Twenty-Seven Thousand Dollars ($27,000) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Normal Retirement Age and continuing for fifteen (15) years.

 

2.5           Death Prior to Separation from Service and Disability. In the event the Executive dies prior to Separation from Service and Disability, the Employer shall pay the Beneficiary an annual benefit in the amount of Twenty-Seven Thousand Dollars ($27,000) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following the Executive’s death and continuing for fifteen (15) years.

 

  

2.6           Death after Separation from Service or Disability and before Normal Retirement Age. In the event the Executive dies after Separation from Service or Disability, and before Normal Retirement Age, the Employer shall pay the Beneficiary an annual benefit in the amount of Twenty-Seven Thousand Dollars ($27,000) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following the Executive’s death and continuing for fifteen (15) years.

 

The Schedule A originally attached to the Agreement shall be replaced by the Schedule A attached hereto.

 

IN WITNESS WHEREOF, the Executive and a duly authorized representative of the Employer have executed this Amendment as indicated below:

 

Executive		Employer
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇		By:	/s/ L. ▇▇▇▇▇▇ ▇▇▇
		Its:	Compensation Committee Chairman

 

  

Salary Continuation Plan

Schedule A - Exhibit 10.22(a)

  

▇▇▇▇▇ ▇▇▇▇▇▇
Birth Date:  xx/xx/1964				Early Termination				Disability				Change in Control				Death
Plan Anniversary Date: Dec. 31 Normal Retirement Date: 05/11/2029, Age 65 Normal Retirement Payment: Monthly for 15 Years								Amount Payable Monthly for 15 Years Upon Separation				Amount Payable Monthly for 15 Years Upon Separation				Amount Payable Lump Sum Upon Death
Values As Of		Age		Annual Benefit 1				Annual Benefit 1,2				Annual Benefit 1,2				Annual Benefit 1,2
4/1/2016		51			0				3,104				27,000				27,000
12/31/2016		52			0				4,927				27,000				27,000
12/31/2017		53			0				7,253				27,000				27,000
12/31/2018		54			9,466				9,466				27,000				27,000
12/31/2019		55			11,572				11,572				27,000				27,000
12/31/2020		56			13,575				13,575				27,000				27,000
12/31/2021		57			15,480				15,480				27,000				27,000
12/31/2022		58			17,293				17,293				27,000				27,000
12/31/2023		59			19,017				19,017				27,000				27,000
12/31/2024		60			20,658				20,658				27,000				27,000
12/31/2025		61			22,219				22,219				27,000				27,000
12/31/2026		62			23,703				23,703				27,000				27,000
12/31/2027		63			25,116				25,116				27,000				27,000
12/31/2028		64			26,460				26,460				27,000				27,000
5/11/2029		65			27,000				27,000				27,000				27,000

 

The first line represents the plan values as of April 1, 2016.

¹ The annual benefit amount will be distributed in 12 equal monthly payments for a total of 180 monthly payments.

² Note that accounting rules may require an additional accrual at the time this benefit is triggered.

 

IF THERE IS A CONFLICT BETWEEN THIS SCHEDULE A AND THE AGREEMENT, THE TERMS AND PROVISIONS OF THE AGREEMENT SHALL PREVAIL. IF A TRIGGERING EVENT OCCURS, REFER TO THE AGREEMENT TO DETERMINE THE ACTUAL BENEFIT AMOUNT BASED ON THE DATE OF THE EVENT.

 

▇▇▇▇▇ ▇▇▇▇▇▇:

/s/ ▇▇▇▇▇ ▇▇▇▇▇▇

By:

/s/ L. ▇▇▇▇▇▇ ▇▇▇

 

Date:

3/29/16

Title: Chairman Compensation Committee

 

Date:

3/29/16