FIRST NORTHWEST BANCORP (NASDAQ:FNWB) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On October 4, 2019, First Northwest Bancorp (the “Company”) and First Federal Savings & Loan Association of Port Angeles (“First Federal”) signed a Separation Agreement and Release of All Claims (the “Separation Agreement”) with Laurence J. Hueth, President and Chief Executive Officer of the Company, in connection with his planned retirement from the Company on January 2, 2020 (the “Separation Date”). In accordance with the Company’s Bylaws, Mr. Hueth will also resign as a director of the Company effective as of the Separation Date. The Separation Agreement was reviewed and approved by the Compensation Committee of the Boards of the Company and First Federal on September 23, 2019.
The Separation Agreement entitles Mr. Hueth to a lump-sum payment of $17,139, payable within seven days following the Separation Date, to cover the premiums for continuation coverage of medical benefits under COBRA for him and his eligible dependents for a period of 12 months following the Separation Date. If Mr. Hueth obtains health insurance coverage through subsequent employment, he is required to repay the Company for any unused amount. He is also entitled to a lump-sum payment for all accrued but unused vacation plus one-half of accrued but unused sick leave up to 240 hours, in each case as of the Separation Date. The payments will be made in January 2020. Finally, he will be entitled to receive all vested benefits as of the Separation Date under the Company’s equity incentive plan, 401(k) plan, and deferred compensation plan in accordance with the terms of those plans.
Mr. Hueth’s Employment Agreement dated as of February 22, 2019, will terminate on the Separation Date. Similar to the terms of the Employment Agreement, the Separation Agreement provides for a general release of claims against the Company and prohibits Mr. Hueth from competing with the Company and its subsidiaries within any county in which First Federal operates a full-service branch office or lending center for a period of one year following the Separation Date. He is also prohibited from soliciting employees, customers and suppliers to cease doing business with the Company or First Federal during that one-year period.
The foregoing summary of the material terms of the Separation Agreement is subject to the complete provisions set forth in the Separation Agreement, a copy of which is filed with this report as Exhibit 10.1 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibit. The following exhibit is furnished with this Form 8-K.
First Northwest Bancorp Exhibit
EX-10.1 2 separationagreement-hueth_.htm EXHIBIT 10.1 Exhibit Exhibit 10.1SEPARATION AGREEMENT ANDRELEASE OF ALL CLAIMS1. The Parties. This Separation Agreement and Release of All Claims (\”Agreement\”) is entered into between Laurence J. Hueth (\”Mr. Hueth\” and/or the \”Employee\”) and First Northwest Bancorp (the “FNWB”) and its wholly owned subsidiary,…
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About FIRST NORTHWEST BANCORP (NASDAQ:FNWB)
First Northwest Bancorp is the bank holding company for First Federal Savings and Loan Association of Port Angeles (the Bank). The Bank is a community-oriented financial institution primarily serving the North Olympic Peninsula region of Washington. The Bank offers a range of products and services focused on the lending and depository needs of the communities it serves. The Bank provides commercial and consumer banking services to individuals and businesses located primarily on the Olympic Peninsula in the State of Washington. These services include deposit and lending transactions that are supplemented with borrowing and investing activities. The Bank’s principal lending activities are focused on first lien one- to four-family mortgage loans, and commercial and multi-family real estate loans. The Bank also makes construction and land loans (including lot loans), commercial business loans and consumer loans.
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