SECURITY FEDERAL CORPORATION (OTCMKTS:SFDL) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersITEM 5.02 – Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On March 29, 2018 (the "Effective Date"), Security Federal Corporation (the "Company") and its financial institution subsidiary, Security Federal Bank (the "Bank"), entered into change of control severance agreements with four named executive officers, J. Chris Verenes, Roy G. Lindburg, Jessica T. Cummins and Richard T. Harmon (collectively, the "officers").
The agreements provide an initial term until December 31, 2018 and will be extended for one year on each anniversary date, provided that the board of directors of has not given the officer notice of non-renewal. If, within six months before or 24 months following a change in control, the officer experiences an involuntary termination, the Company and the Bank will pay to the officer, a lump sum cash payment equal to 2.4 times the officer's annual base salary.
Any payments made under the agreements are subject to and conditioned upon (1) compliance with 12 U.S.C. §1828(k) and Federal Deposit Insurance Corporation regulation 12 C.F.R. Part 359, Golden Parachute and Indemnification Payments, and (2) other statutory and regulatory requirements.
The foregoing description of the change in control severance agreements does not purport to be complete and is qualified in its entirety by reference to the form of change in control severance agreement, a copy of which is furnished as Exhibit 10.1 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d)Exhibits
The following exhibit is being filed herewith and this list shall constitute the exhibit index:
| 10.1 |
Form of Change in Control Severance Agreement for Certain Officers of Security Federal Corporation and Security Federal Bank. |
SECURITY FEDERAL CORP ExhibitEX-10.1 2 secfed8k32218ex101.htm EXHIBIT 10.1 Exhibit 10.1 FORM OF CHANGE IN CONTROL SEVERANCE AGREEMENT THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (the “Agreement”) is made and entered into as of this ___ day of ______________,…To view the full exhibit click here
About SECURITY FEDERAL CORPORATION (OTCMKTS:SFDL)
Security Federal Corporation is a bank holding company for Security Federal Bank (the Bank). Through its subsidiary, the Company offers financial services. The Bank is a South Carolina chartered commercial bank with approximately 10 branch offices in Aiken, Richland and Lexington counties, South Carolina and Columbia County and Georgia. The principal business of the Bank is accepting deposits from the public and originating commercial real estate loans, commercial business loans, consumer loans, as well as mortgage loans to buy or refinance one- to four-family residential real estate. It also originates construction loans on single-family residences, multi-family dwellings and projects, and commercial real estate, as well as loans for the acquisition, development and construction of residential subdivisions and commercial projects. It operates Security Federal Trust and Investments, as a division of the Bank that offers trust, financial planning and financial management services.
