DEATH BENEFIT AGREEMENT
Exhibit
10.19
This
Agreement entered into this 2nd day of
June, 1994, by and between Kellwood Company (“Company”), a Delaware corporation,
and ________________ (“Employee”), an Employee of Kellwood Company.
In
consideration of the Company and Employee mutually agreeing to eliminate the
Employee’s participation under the Company’s Group Term Life Insurance Plan, and
other good and valuable consideration, the parties hereto agree as
follows:
1. |
Standard
Death Benefit Amount.
The Standard Death Benefit Amount under this Agreement shall be calculated
as the lesser of (a) four times the sum of the Employee’s current annual
salary and the Employee’s last cash bonus, or (b) $1,000,000; so that the
maximum Standard Death Benefit shall not exceed $1,000,000. In the case of
death while still employed, the Employee’s then current salary and last
bonus shall be used in the calculation. In the event of death after
retirement, the Employee’s salary as of the date of retirement and last
bonus shall be used in the calculation. | |
2. |
Death
Before Retirement.
In the event the Employee’s death occurs while in the employ of the
Company or any of its subsidiaries, and therefore before retirement, the
amount of the death benefit paid by the Company to Employee’s beneficiary
shall be 150% of the Standard Death Benefit Amount described in paragraph
1 above. | |
3. |
Death
After Retirement. | |
A. |
Retirement
before 60. | |
If
Employee retires from the Company before Employee reaches 60 years of age,
upon the death of the Employee, the amount of the death benefit paid by
the Company to Employee’s beneficiary shall be 150% of the Retirement
Adjusted Death Benefit Amount described in subparagraph C
below. | ||
B. |
Retirement
on or after 60. | |
If
Employee retires from the Company on or after Employee reaches 60 years of
age, the Company will pay to the Employee at retirement 50% of the
Retirement Adjusted Death Benefit Amount described in subparagraph C
below, and upon the death of the Employee the amount of the death benefit
paid by the Company to Employee’s beneficiary shall be 100% of the
Retirement Adjusted Death Benefit Amount described in subparagraph C
below. | ||
C. |
Retirement
Adjusted Death Benefit Amount. | |
The
Retirement Adjusted Death Benefit Amount shall be a percentage of the
Standard Death Benefit calculated in accordance with the following
schedule: | ||
Age
at Retirement |
Percentage
of Standard Death Benefit | |||
65
or older |
100% | |||
64 |
95% | |||
63 |
90% | |||
62 |
85% | |||
61 |
80% | |||
60 |
75% | |||
59 |
70% | |||
58 |
65% | |||
57 |
60% | |||
56 |
55% | |||
55 |
50% |
D. |
For
example, if the Standard Death Benefit was $1,000,000, an employee
retiring at 60 years of age would receive $375,000 at retirement and the
beneficiary would receive $750,000 at Employee’s death, no matter what the
age at death. |
4. |
Free
of Charge.
Employee shall not be charged by or pay anything to Kellwood Company or
any of its subsidiaries for this benefit provided, however, that this
benefit may be subject to tax withholding and the tax laws in
effect. |
5. |
Termination
of Benefit.
This Agreement shall be terminated upon the termination of the employment
of Employee for any reason except retirement, and except that in the event
of termination after a Change in Control of the Company (as defined in the
1987 Employment Agreements between the Company and certain senior
executives) this Agreement shall continue for twenty four
months. |
6. |
Effective
Date.
The effective date of this Agreement shall be June 2, 1994. Employee
hereby acknowledges that his prior death benefit Agreement dated November
30, 1984 with the Company is being superseded hereby on more generous
terms to the Employee, and therefore the parties agree that the prior
Agreement is null and void. |
7. |
Retirement.
Retirement is defined as an Employee who retires under the provisions of a
qualified retirement plan of Kellwood Company, or as an Employee declared
by the Compensation and Stock Option Committee of the Kellwood Company’s
Board of Directors to be a retiree. |
8. |
Beneficiary.
Employee hereby designates ________________ as the primary beneficiary and
________________ as the secondary beneficiary under the terms of this
Agreement. Beneficiaries may be changed at any time upon the written
request of Employee (whether still employed or retired) after acknowledged
receipt by the Company of the change request. |
9. |
Assignment.
This Agreement is personal in nature and may not be assigned or pledged in
any manner. |
Dated the
day and year first above written.
KELLWOOD
COMPANY | |
By:_______________________ | |
Chairman, President and CEO | |
EMPLOYEE | |
_______________________ |