OCONEE FEDERAL FINANCIAL CORP. (NASDAQ:OFED) 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.
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Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
(e)On December 20, 2016, Oconee Federal Savings and Loan
Association (the Association), a wholly owned subsidiary of
Oconee Federal Financial Corp. (the Company), entered into
amended and restated employment agreements (together, the
Employment Agreements) with each of T.R. Evatt, currently Chief
Executive Officer of the Company and the Association, and Curtis
T. Evatt, currently President and Chief Financial Officer of the
Company and the Association (together, the Executives). The
Employment Agreements are effective as of January 1, 2017, and
the terms of the Employment Agreements are substantially similar
to the employment agreements previously entered into with the
executives. The Employment Agreements reflect Mr. T.R. Evatts new
position as Executive Chairman of the Association and Mr. Curtis
T. Evatts new position as President, Chief Executive Officer and
Chief Financial Officer of the Association, which positions were
previously announced and are effective January 1, 2017.
The term of the Employment Agreements is three years. Commencing
on January 1, 2018 and continuing on each anniversary thereafter,
the Employment Agreements will be renewed for an additional year
so that the remaining term will be three years, provided that the
Board of Directors has approved the extension of the term. The
Employment Agreements provide for an annual base salary of
$198,500 for Mr. T.R. Evatt and $208,560 for Mr. Curtis T. Evatt,
which will be reviewed at least annually by the Board of
Directors or a committee designated by the Board. The Association
may increase, but not decrease the executives base salary, except
for a decrease that is generally applicable to all employees. The
Employment Agreements provide certain benefits if the Company
terminates the executives employment without cause (as defined in
the Employment Agreements) or the executive resigns from his
employment for good reason (as defined in the Employment
Agreements) (an Event of Termination). Upon an Event of
Termination, the executive will receive (i) a severance payment
equal to the base salary and bonuses due to him for the remaining
unexpired term of the agreement, (ii) the present value of the
contributions that would have been made on the executives behalf
under the Associations defined contribution plans as if the
executive had continued working for the Association for the
remaining unexpired term of the agreement, and (iii) under Mr.
Curtis T. Evatts agreement only, at no expense to the executive,
non-taxable medical and dental coverage and life insurance
coverage for the remaining unexpired term of the agreement. Mr.
T.R. Evatts employment agreement does not provide for continued
insurance benefits.
In the event of a change in control (as defined) of the Company
or Association followed within 18 months by an Event of
Termination, the executive will receive (i) a severance payment
equal to three times the executives highest annual base salary
plus the highest bonus paid to the executive with respect to the
three fiscal years prior to the change in control, (ii) the
present value of the contributions that would have been made on
the executives behalf under the Associations defined contribution
plans as if the executive had continued working for the
Association for 36 months, and (iii) under Mr. Curtis T. Evatts
agreement only, at no expense to the executive, non-taxable
medical and dental coverage and life insurance coverage for 36
months following termination of the Employment Agreement. Mr.
T.R. Evatts employment agreement does not provide for continued
insurance benefits.
In the event any severance payments that are made in connection
with a change in control (as defined) constitute an excess
parachute payment (as defined in Section 280G of the Internal
Revenue Code), the severance payments under the Employment
Agreements will be reduced to the maximum level that would not
result in an excise tax under Section 4999 of the Code.
The Employment Agreements restrict the executives from revealing
confidential information of the Company and Association. In
addition, for one year following termination of employment, the
executives may not compete with the Company and Association or
solicit or hire the Associations employees.
The foregoing description of the Employment Agreements does not
purport to be complete and is qualified in its entirety by
reference to the employment agreements, which will be filed as
exhibits to the Companys quarterly report on Form 10-Q for the
quarter ending December 31, 2016.
| Item 9.01. | Financial Statements and Exhibits. |
| None. |
About OCONEE FEDERAL FINANCIAL CORP. (NASDAQ:OFED)
Oconee Federal Financial Corp. is a stock holding company for Oconee Federal Savings and Loan Association. Oconee Federal Savings and Loan Association is a federally chartered savings and loan association. The Company’s principal business consists of attracting retail deposits from the public in its market area and investing those deposits, together with funds generated from operations, in one- to four-family residential mortgage loans and, to a lesser extent, nonresidential mortgage, construction and land, agricultural and other loans. The Company also invests in the United States Government and federal agency securities, mortgage-backed securities and short-term deposits. The Company has also used borrowed funds as a source of funds. The Company borrows principally from the Federal Home Loan Bank of Atlanta. The Company’s primary market area consists of the counties where it has offices and the nearby communities and townships in adjacent counties in South Carolina and Georgia. OCONEE FEDERAL FINANCIAL CORP. (NASDAQ:OFED) Recent Trading Information
OCONEE FEDERAL FINANCIAL CORP. (NASDAQ:OFED) closed its last trading session 00.00 at 23.00 with 404 shares trading hands.