Exhibit 10.2
MONARCH COMMUNITY BANK
DIRECTORS’ DEFERRED COMPENSATION PLAN
WHEREAS,
Monarch Community Bank, previously known as Branch County Federal
Savings & Loan Association (the “Bank) previously
established the Branch County Federal Savings & Loan
Association Directors’ Deferred Compensation Plan dated
July 8, 1998 (the “Plan”) to provide members of
the Bank’s Board of Directors the opportunity to defer the
receipt of director’s fees until retirement; and
WHEREAS,
the Bank has determined that the Plan shall be renamed the Monarch
Community Bank Directors’ Deferred Compensation Plan;
and
WHEREAS,
The Plan was frozen on December 31, 2004; and
WHEREAS,
the Bank wishes to amend and restate the Plan without enhancing any
benefit or creating any material modification to terms and
conditions of the Plan as it applies to the amounts deferred prior
by Directors prior to December 31, 2004.
A. Participants . Any member of the
Board of Directors (“Director”) of the Bank may elect
to become a participant (“Participant”) under this plan
(the “Plan”) by filing a written Notice of Election To
Participate (“Notice”) with the Bank, in the form
prescribed by the Board of Directors. Effective
B. Deferred Compensation. Any Participant may
elect, in accordance with Section E of this Agreement, to
defer annually the receipt of all or a portion of the
director’s fees otherwise payable to him by the Bank in any
calendar year. Any director’s fee deferred pursuant to this
Section shall be recorded by the Bank in a deferred compensation
account (“Account”) maintained in the name of the
Participant. The Account shall be credited on each date for payment
of director’s fees, in accordance with the Bank’s
normal practices. Only director’s fees that would have
payable to a Participant prior to January 1, 2005, will be
subject to a deferral election under this Plan.
The Bank
shall furnish each Participant with a semiannual statement of his
Account. The Bank shall also credit interest on the amounts in an
Account to the Account until final distribution of the Account
pursuant to Section D of the Plan. The amount of
director’s fees that a Participant elects to defer under this
Section will remain constant until changed by the Participant in
accordance with Section E of the Plan.
C. Interest on Deferred Amounts . All
amounts credited to an Account shall be credited with interest at a
rate equal to the greater of five percent (5%) or the Bank’s
Return on Average Equity, until the Account has been fully
distributed. “Return on Average Equity” shall mean the
Bank’s return on average equity for its most recently ended
fiscal year, computed in accordance with generally accepted
accounting principles, consistently applied.
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