August 24, 1999
Xxxx X. Xxxxxx
President and Chief Executive Officer
United Financial Holdings, Inc.
Dear Xxxx:
When your Salary Continuation Plan dated August 25, 1994 was terminated on
December 5, 1997, provisions in the agreement were inadvertently terminated.
Specifically, the terminated plan effectively compensated for the economic loss
of $36,000 resulting from the transfer of your Split Dollar Life Insurance
agreement, also dated August 25, 1994. With the termination of the Salary
Continuation Plan, this portion of the agreement was eliminated when, in fact,
it should have remained in effect.
The purpose of this letter is to reinstate the payment provision of $36,000 from
the terminated plan subject to the following terms and conditions:
1. PRE-RETIREMENT DEATH. Should you die prior to age sixty-five (65), but
while in the employ of the Corporation, then for a period of twelve (12)
consecutive months, the Corporation will pay "Benefit Income" of Three
Thousand Dollars ($3.000) each month to your designated
beneficiary(ies), or, if none, to your surviving spouse, or, if your
spouse does not survive you, then to your surviving child or children in
equal shares, or, if there is no surviving child, then to your estate.
Payment of Benefit Income shall commence on the first day of the second
calendar month following the date of your death.
a. In the event the beneficiary dies after you but while receiving
Benefit Income, the beneficiary may designate a successor
beneficiary to himself or herself as to any Benefit Income yet
payable to him or her. In the absence of such designation, the
remaining Benefit Income shall be paid to the estate of the
beneficiary upon the beneficiary's death.
b. Beneficiaries designated may be changed at any time.
c. Beneficiaries shall be designated in writing accepted by the
Corporation and executed by you in the presence of two (2)
witnesses.
2. TERMINATION OF EMPLOYMENT PRIOR TO AGE SIXTY-FIVE. In the event your
employment with Corporation terminates during your lifetime, prior to
reaching age sixty-five (65), then for a period of twelve (12) consecutive
months, the Corporation will pay you "Benefit Income" of Three Thousand
Dollars ($3,000) each month. Payment of Benefit Income shall commence on
the first day of the second calendar month following the date of
termination. In the event you shall die after said payments of Benefit
Income have become due but before the expiration of the twelve (12) month
period, the payment of Benefit Income will continue through the remainder
of the twelve (12) month period to those beneficiaries provided in
paragraph 1.a. above.
Xxxx X. Xxxxxx
Page 2
3. CHANGE IN CONTROL OF CORPORATION. In the event a change in control
application is filed with and approved by the Federal Reserve Bank and
prior to reaching age sixty-five (65), then, whether or not you continue in
the employ of the Corporation, for a period of twelve (12) consecutive
months, the Corporation will pay you "Benefit Income" of Three Thousand
Dollars ($3,000) each month. Payment of Benefit Income shall commence on
the first day of the second calendar month following the date of Change in
Control. In the event you shall die after said payments of Benefit Income
have become due but before expiration of the twelve (12) month period, the
payment of Benefit Income will continue through the remainder of the twelve
month period to those beneficiaries provided in paragraph 1.a. above.
4. RETIREMENT BENEFIT. Should you still be in the employ of the Corporation
when you reach age sixty-five (65), then upon your retirement from
employment with the Corporation on or after age sixty-five (65), the
Corporation will pay you for a period of twelve (12) consecutive months
Three Thousand Dollars ($3,000) each month. Payment of Benefit Income shall
commence on the first day of the second calendar month following the date
of your retirement. In the event you shall die after said payments of
Benefit Income have become due but before expiration of the twelve (12)
month period, the payment of Benefit Income will continue through the
remainder of the twelve month period to those beneficiaries provided in
paragraph 1.a. above.
This issue was presented to the Strategic Review Committee and received its
approval at the August 24, 1999 meeting. The Strategic Review Committee
recommended its adoption at the next regularly scheduled Board meeting of United
Financial Holdings, Inc..
If you are in agreement with the terms and conditions as outlined above, please
indicate your agreement below. A copy of this letter will be maintained in the
files of the Human Resources Department.
Sincerely,
Xxxx X. Xxxxxx
Chairman
United Financial Holdings, Inc.
Agreed: Witness: ___________________
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Xxxx X. Xxxxxx
