Exhibit 10(e)
Xxxxxx X. Xxxxxx' Employment Agreement,
dated November 1, 2004
Exhibit 10(e)
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT, effective as of November 1, 2004 (the "Effective
Date") between United Bank of Philadelphia, a bank organized and incorporated
under the laws of the Commonwealth of Pennsylvania, with offices at 000 Xxxxx
Xxxxx Xxxxxx, Xxxxxxxxxxxx, Xxxxxxxxxxxx 00000 (the "Bank") and Xxxxxx Xxxxxx
(the "Executive"), who resides at __________________________________________.
WITNESSETH:
WHEREAS, the Bank is a Pennsylvania bank, incorporated on September 17,
1990 as a Pennsylvania-charted commercial bank; and
WHEREAS, the Executive is currently serving as President and Chief
Executive Officer of the Bank; and
WHEREAS, the Bank desires to continue to have the benefits of the
Executive's services as President and Chief Executive Officer and the Executive
desires to continue to serve in such capacity for the Bank;
WHEREAS, the parties desire to enter into this Employment Agreement setting
forth the terms and conditions of the employment relationship between the Bank
and the Executive;
NOW, THEREFORE, in consideration of the mutual agreements and covenants
contained herein the Bank and the Executive, each intending to be legally bound
hereby, agree as follows:
EMPLOYMENT AGREEMENT WITH
XXXXXX XXXXXX
Page 1 of 7
1. Duties and Term.
a. Duties and Authority. The Bank hereby employs the Executive to
serve in the capacity of President and Chief Executive Officer of the Bank
and the Executive agrees to continue in employment in such capacity with
the Bank from the Effective Date hereof through the term of this Agreement.
As President and Chief Executive Officer, the Executive shall be
responsible for the day-to-day operations and overall management of the
Bank, promote the Bank in the minority community and with the public in
general and perform such additional duties of a managerial or executive
nature consistent with her title as will promote the profitability and
growth of the Bank or as the Board of Directors of the Bank (the "Board")
may from time to time reasonably direct.
b. Devotion to Duties. During the term of this Agreement, the
Executive will devote substantially all of her skill, knowledge and working
time to the conscientious performance of her duties, except for vacation
time in accordance with the Employer's vacation policies and Section 2(e),
absence for sickness or similar disability in accordance with the
Employer's paid time off policies, and authorized leaves of absence. To the
extent that it does not significantly interfere with the performance of the
Executive's duties hereunder, it shall not be a violation of this Agreement
for the Executive to (i) serve on corporate, civic or charitable boards or
committees, if and to the extent approved by the Board, and (ii) manage
personal investments.
c. Term of Agreement. The term of the Executive's employment under
this Agreement shall commence upon the Effective Date of this Agreement and
shall continue until October 31, 2007 unless the employment of the
Executive is sooner terminated pursuant to Section 3, 4, or 5 of this
Agreement. The term of this Agreement shall be extended upon agreement of
the parties at any time prior to the expiration date. The period during
which the Executive is employed pursuant to this Agreement shall be
referred to as the "Employment Term."
EMPLOYMENT AGREEMENT WITH
XXXXXX XXXXXX
Page 2 of 7
2. Compensation.
a. Base Salary. During the first year of the Employment Term, the Bank
shall pay the Executive an annual base salary ("Base Salary") of $160,000
payable in equal bi-weekly installments or as the parties otherwise agree.
The Board will review the Executive's Base Salary annually during the
Executive's Employment Period and, at its discretion, may increase (but not
decrease) such Base Salary from time to time based upon the performance of
the Executive, the financial condition of the Employer, prevailing industry
salary scales and such other factors as the Board shall consider relevant.
Any increase in annual Base Salary shall not serve to limit or reduce any
other obligation to the Executive under this Agreement.
b. Annual Bonus. During each year of the Employment Term, the
Executive shall have the opportunity to receive an annual cash bonus
("Annual Bonus") for each fiscal year. The target Annual Bonus potential
each year applicable to the Executive shall be 30% of her Base Salary, and
the maximum Annual Bonus shall not exceed 45% of her Base Salary. The
Annual Bonus for each fiscal year shall be determined by the Board based on
the Bank's achievement of specified financial performance targets for such
fiscal year, which are set in advance of such fiscal year by the Board.
c. Employee Benefit Plans. During the Employment Term, the Executive
shall be entitled to participate in all retirement, health and other
welfare plans maintained by the Bank, as they may be established or amended
from time to time, at levels commensurate with her then current period of
service, compensation, and position.
EMPLOYMENT AGREEMENT WITH
XXXXXX XXXXXX
Page 3 of 7
d. Life Insurance. The Bank shall provide term life insurance on the
life of the Executive payable to the beneficiary designated by the
Executive in an amount equal to two times her Base Salary.
e. Vacation. The Executive shall be entitled to four (4) weeks of
vacation per year, which shall be taken at such time or times as the
Executive and the Bank reasonably agree.
f. Reimbursement of Expenses. The Bank shall reimburse the Executive
for all items of travel, entertainment and other expense reasonably
incurred by her on behalf of the Bank upon presentation to the Bank of
appropriate documentation reflecting such items of expense.
g. Automobile Allowance. The Bank shall reimburse the Executive for
the cost of leasing an automobile and the cost of insurance on such
automobile up to a maximum amount of $500 per month.
3. Death or Total Disability of the Executive.
a. Death. In the event of the death of the Executive during the
Employment Term, this Agreement shall terminate effective as of the date of
the Executive's death, and the Bank shall not have any further obligations
or liability hereunder, except as set forth in Section 5 hereof.
b. Total Disability. In the event of the Total Disability, as that
term is defined in this Section 3(b), of the Executive for a period of 90
consecutive days during the Employment Term, the Bank shall have the right
to terminate the Executive's employment hereunder after such 90 consecutive
days of Total Disability by giving the Executive 30 days' written notice
thereof and, upon expiration of such 30-day period, this Agreement shall
terminate and the Bank shall not have any further obligations or liability
hereunder; except as set forth in Section 5 hereof. The term "Total
Disability," as used in this Section 3(b), shall mean a mental, emotional
or physical injury, illness or incapacity which, in the reasonable opinion
of the Bank, renders the Executive unable to perform the principal duties,
functions and responsibilities required of her hereunder.
EMPLOYMENT AGREEMENT WITH
XXXXXX XXXXXX
Page 4 of 7
4. Discharge for Cause. The Bank may immediately discharge the Executive
and terminate her employment hereunder for the following reasons: (i) conviction
for commission of any felony, or an equivalent offense involving dishonesty with
respect to the Bank, during the Employment Term; (ii) the willful engaging by
the Executive in conduct or willfully failing to act in accordance with her
duties, which is demonstrably and materially injurious to the Bank, whether
monetarily or otherwise, including acts and omissions that constitute gross
negligence; (iii) the Executive's commission of an act of material dishonesty or
fraud in her duties; (iv) the continual and willful failure to perform her
duties after being given a 30-day written notice thereof and a reasonable
opportunity to be heard and improve; or (v) her breach of any fiduciary duty
owing to the Bank. No act or failure to act by an Executive shall be considered
"willful" unless done or not done by the Executive in bad faith and without
reasonable belief that the Executive's action or omission was in the best
interest of the Bank. Upon discharge by the Bank in accordance with this Section
4, this Agreement shall terminate and the Bank shall not have any further
obligations or liability hereunder, other than as set forth in Section 5 hereof.
5. Termination of this Agreement for Reasons Other than Discharge for
Cause.
a. General. Except as otherwise provided in Section 5(b), upon
termination of this Agreement, all obligations of the Bank and the
Executive shall immediately cease; provided, however, the Bank shall pay
the Executive the unpaid portion, if any, of the Executive's Base Salary
accrued for the period up to the date of termination and payable to the
Executive pursuant to Section 2(a) hereof, and all vested, nonforfeitable
amounts owing and accrued at the date of termination under any compensation
or benefit plan, program, or arrangements in which the Executive
theretofore participated, under the terms and conditions of such plans,
programs, and arrangements.
EMPLOYMENT AGREEMENT WITH
XXXXXX XXXXXX
Page 5 of 7
b. Discharge by the Bank Other than For Cause. In addition to any
amounts due the Executive under Section 5(a), if the Bank discharges the
Executive other than for "cause" as described in Section 4, the Bank shall
make a cash payment to the Executive in the amount of her annual Base
Salary at the time of discharge, payable in equal monthly installments for
a period of 12 months, beginning on the date of termination.
6. Amendments. No provisions of the Agreement may be modified, waived, or
discharged unless such modification, waiver or discharge is approved by the
Board or a person authorized thereby and is agreed to in writing by the
Executive and such officer as may be specifically designated by the Board. No
waiver by any party hereto at any time of any breach by any other party hereto
of, or in compliance with, any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time. No
waiver of any provision of this Agreement shall be implied from any course of
dealing between or among the parties hereto or from any failure by any party
hereto to assert its rights hereunder on any occasion or series of occasions.
7. Severability. In the event that any one or more of the provisions of
this Agreement shall be or become invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
contained herein shall not be affected thereby.
8. Construction. This Agreement shall be construed in accordance with and
governed by the laws of the Commonwealth of Pennsylvania, without regard to
conflicts of law principles, except as insofar as federal law may be applicable.
EMPLOYMENT AGREEMENT WITH
XXXXXX XXXXXX
Page 6 of 7
9. Assignment. This Agreement is personal to each of the parties. Neither
party may assign or delegate any of its, or her, rights or obligations without
the prior written consent of the other.
10. Notices. All notices, consents and other communications to be given
hereunder shall be in writing and shall be delivered personally or sent by
certified mail, return receipt requested, postage prepaid, and addressed to the
parties at their respective addresses set forth in the first paragraph of this
Agreement. Any party may from time to time change its address for purposes of
notices to that party by notice specifying a new address, but no change shall be
deemed to have been given until it is actually received by the party to whom the
notice is being given.
11. Entire Agreement. Except as otherwise expressly provided herein, this
Agreement constitutes the entire agreement among the parties hereto with respect
to the subject matter hereof, and all promises, representations, understandings,
arrangements and prior agreements relating to such subject matter (including
those made to or with the Executive by any other person or entity) are merged
herein and superseded hereby.
IN WITNESS WHEREOF, this Agreement has been executed by the Bank and by
the Executive this ___________ day of ________________, 2004.
UNITED BANK OF PHILADELPHIA
BY:
-------------------------------------------
Chairman of the Board
-------------------------------------------
Xxxxxx Xxxxxx
EMPLOYMENT AGREEMENT WITH
XXXXXX XXXXXX-XXXXXX
Page 7 of 7
