EX-10.8 16 tex10_8-7609.txt EX-10.8 FIRST AMENDMENT TO THE DIRECTOR SUPPLEMENTAL RETIREMENT INCOME AND DEFERRED COMPENSATION AGREEMENT FOR SALVATORE ROMANO MAGYAR SAVINGS BANK Upon mutual consent and for valuable consideration hereby recognized, THE DIRECTOR SUPPLEMENTAL RETIREMENT INCOME AND DEFERRED COMPENSATION AGREEMENT FOR SALVATORE ROMANO IS hereby amended. The language below is immediately effective for each listed section and supercedes all previous versions of these sections. AMENDED SECTIONS SUBSECTION 1.6 OF THE DIRECTOR SUPPLEMENTAL RETIREMENT INCOME AND DEFERRED COMPENSATION AGREEMENT FOR SALVATORE ROMANO SHALL BE AMENDED AS FOLLOWS; 1.6 "Benefit Age" means the later of: (i) the Director's seventieth (70th) birthday or (ii) the actual date the Director's full-time service with the Bank terminates. EXHIBIT A - REVISED 8/05 CONDITIONS, ASSUMPTIONS, AND SCHEDULE OF CONTRIBUTIONS AND PHANTOM CONTRIBUTIONS A new "Exhibit A - Revised 8/05" is also attached to reflect the new schedule of contributions and the new Supplemental Retirement Income Benefit resulting from the Director's change of Benefit Age. All other provisions of THE DIRECTOR SUPPLEMENTAL RETIREMENT INCOME AND DEFERRED COMPENSATION AGREEMENT FOR SALVATORE ROMANO which are not specifically modified by this Amendement are hereby incorporated and shall remain in full force and effect. _______________________________ Date____________ Director Signature and Date ________________________________________________ Director Printed Name _______________________________ Date____________ Bank Officer Signature and Date ________________________________________________ Bank Officer Printed Name/Title CONDITIONS, ASSUMPTIONS, AND SCHEDULE OF CONTRIBUTIONS AND PHANTOM CONTRIBUTIONS 1. Interest Factor - for purposes of: a. the Accrued Benefit Account - shall be six percent (6%) per annum, compounded monthly. b. the Elective Contributions - shall be ten percent (10%) per annum, compounded monthly. c. the Emeritus Contributions - shall be six percent (6%) per annum, compounded monthly. d. the Retirement Income Trust Fund - for purposes of annuitizing the balance of the Retirement Income Trust Fund over the Payout Period, the trustee of the Salvatore Romano Grantor Trust shall exercise discretion in selecting the appropriate rate given the nature of the investments contained in the Retirement Income Trust Fund and the expected return associated with the investments. For these purposes, if the trustee of the Retirement Income Trust Fund has purchased a life insurance policy, the trustee shall have the discretion to determine the portion of the cash value of such policy available for purposes of annuitizing the Retirement Income Trust Fund, in accordance with Section 2.3 of the Agreement. 2. The amount of the annual Emeritus Contributions (or Phantom Contributions) to the Retirement Income Trust Fund (or Accrued Benefit Account) has been based on the annual interest-adjusted accounting accruals which would be required of the Bank through the earlier of the Director's death or Benefit Age, (i) pursuant to APB Opinion No. 12, as amended by FAS 106 and (ii) assuming a discount rate equal to six percent (6%) per annum, in order to provide a portion of the unfunded, non-qualified Supplemental Retirement Income Benefit. The Emeritus Contributions are calculated to support a benefit based upon 50% of the Director's total board fees, committee fees and/or retainer in the twelve months prior to Director's Benefit Eligibility Date. 3. The amount of the annual Elective Contributions (or Phantom Contributions) to the Retirement Income Trust Fund (or Accrued Benefit Account) has been based on the annual interest-adjusted accounting accruals which would be required of the Bank through the earlier of the Director's death or Benefit Age, (i) pursuant to APB Opinion No. 12, as amended by FAS 106 and (ii) assuming a discount rate equal to ten percent (10%) per annum, in order to provide a portion of the unfunded, non-qualified Supplemental Retirement Income Benefit. Director has elected a monthly, pre-tax deferral of board fees, committee fess and/or retainer in the amount of $0 per month for 0 months. 4. Supplemental Retirement Income Benefit means an actuarially determined annual amount equal to Sixteen Thousand Three Hundred and Fifty Dollars ($16,350) at age 70 if paid entirely from the Accrued Benefit Account or Ten Thousand four Hundred and Sixty-Four Dollars ($10,464) at age 70 if paid from the Retirement Income Trust Fund. Exhibit A - Revised 8/05 The Supplemental Retirement Income Benefit: o the definition of Supplemental Retirement Income Benefit has been incorporated into the Agreement for the sole purpose of actuarially establishing the amount of annual Contributions (or Phantom Contributions) to the Retirement Income Trust Fund (or Accrued Benefit Account). The amount of any actual retirement, pre-retirement or disability benefit payable pursuant to the Agreement will be a function of (i) the amount and timing of Contributions (or Phantom Contributions) to the Retirement Income Trust Fund (or Accrued Benefit Account) and (ii) the actual investment experience of such Contributions (or the monthly compounding rate of Phantom Contributions). 5. Schedule of Annual Gross Contributions/Phantom Contributions
PLAN YEAR ELECTIVE CONTRIBUTIONS EMERITUS CONTRIBUTIONS TOTAL CONTRIBUTIONS --------- ---------------------- ---------------------- ------------------- 2004 $0 $79,467 $79,467 2005 0 30,511 30,511 2006 0 7,979 7,979 2007 0 8,545 8,545 2008 0 9,150 9,150 2009 0 9,798 9,798 2010 0 10,491 10,491 2011 0 10,322 10,322
Exhibit A - Revised 8/05 (Cont'd.)