EXHIBIT (10(II)(A)-#4
Agreement dated as of May 19, 1995 among AUTOMATIC DATA PROCESSING, INC.
("ADP"), XXXX X. XXXXXX ("Xxxxxx") and XXXXXXXXX XXXX and XXXXX XXXXX, ESQ. (the
"Trustees"), as Trustees of the Xxxx X. Xxxxxx 1995 Trust dated as of April 14,
1995 (the "Trust").
Pursuant to agreements with Xxxx Xxxxxxx Life Insurance Company and Pacific
Mutual Life Insurance Company, the Trust has purchased life insurance policies
on both the lives of XXXX X. XXXXXX and XXXX XXXXXX. ADP has agreed to pay a
portion of the premiums due, as set forth in Column (2) of Exhibit 1 hereto.
In furtherance of the above, the parties agree as follows:
1. ADP agrees to pay, when due, the payments enumerated in Column 2 of
Exhibit 1 for the specified ten year period; ADP has no obligation to make any
additional payments thereunder.
2. The Trustees, on behalf of the Trust, obligate the Trust to pay, when
due to the extent of Trust assets, the payments enumerated in Column 7 of
Exhibit 1; such payments are to be made to the applicable insurance companies
during the initial specified ten year period and thereafter shall be directly
made to ADP.
3. (a) Without regard to any payments described above or otherwise
described on Exhibit 1 or in any other agreement, Weston agrees that ADP's
obligations to Weston under Paragraph 5 to the JW Contract Extension - Proposed
executed June 1994 (in which a Supplemental Retirement Amount is specified as
$550,000 per year, or its actuarial equivalent) are reduced by $168,000 per
annum (i.e., leaving a net aggregate payment of $382,000 per year, or its
actuarial equivalent) for the first fifteen years ADP is obligated to make such
Supplemental Retirement Amount payments.
(b) In addition, ADP has the right to further reduce the Supplemental
Retirement Amount payments to Weston referred to in Paragraph 3(a) above if the
Trust fails to meet all or any portion of its obligations hereunder or under its
other agreements with ADP. It is understood that the obligations of the Trust
include the commitment to make ADP whole in the event the future actuarial
assumptions (including interest assumptions) which underlie Exhibit 1, are
adjusted so as to cause ADP to pay more dollars or receive fewer dollars during
the specified time-frame, in the manner, described in Columns (2) and (3) to
Exhibit 1.
4. If for any reason ADP's obligations to make the Supplemental
Retirement Amount payments to Weston (as referred to in Paragraph 3(a) above)
cease, or if such Supplemental Retirement Amount payments are insufficient to
fully satisfy Weston's obligations to ADP under Paragraph 3 above, the Trust
hereby assumes the obligation to directly pay to ADP to the extent of Trust
assets all amounts which ADP would have otherwise received under Paragraph 3(b)
above.
TRUSTEES:
/s/ Xxxxxxxxx Xxxx
------------------------------------
Xxxxxxxxx Xxxx
/s/ Xxxxx Xxxxx, Esq.
------------------------------------
Xxxxx Xxxxx
AUTOMATIC DATA PROCESSING, INC.
By:/s/ Xxxx X. Xxxxx
---------------------------------
Xxxxxxxx X. Xxxxx
Chairman of the Compensation Committee
/s/ Xxxx X. Xxxxxx
------------------------------------
Xxxx X. Xxxxxx
EXHIBIT 1
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$10 MM SURVIVOR LIFE NET SPLIT DOLLAR BENEFIT (75% BASE/25% TERM)
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CARRIER CRED RATE NET DEATH BENEFIT ANNUAL PREMIUM
------- --------- ----------------- --------------
XXXX XXXXXXX 7.54% Net $6,250,000 $193,933
PACIFIC MUTUAL 7.20% Net $3,750,000 $115,000
---------- --------
TOTAL $10,000,000 $308,933
INSURED 1: MALE 66NS
INSURED 2: FEMALE 62NS
PRESENTED BY CMS COMPANIES CORPORATION EXECUTIVE/TRUST
03/08/95 ------------------------------------------------------------------ -------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
ANNUAL PREMIUM CUMULATIVE CASH DEATH XXX. CHARGE PREMIUM CASH DEATH
YEAR PREMIUM SHARE OUTLAY VALUE BENEFIT TO EARNINGS SHARE VALUE BENEFIT
---- ------- ----- ------ ----- ------- ----------- ----- ----- -------
1 ($308,933) ($300,320) ($300,320) $267,680 $300,320 ($32,640) ($8,613) $0 $10,005,385
2 (308,933) (298,737) (599,057) 528,847 599,057 (37,570) (10,196) 0 10,011,762
3 (308,933) (296,853) (895,909) 797,021 895,909 (28,678) (12,080) 0 10,019,321
4 (308,933) (294,627) (1,190,536) 1,122,992 1,190,536 31,344 (14,306) 0 10,028,278
5 (308,933) (291,980) (1,482,516) 1,463,567 1,482,516 48,595 (16,953) 24,331 10,038,898
6 (308,933) (288,833) (1,771,349) 1,771,349 1,771,349 18,949 (20,100) 129,531 10,051,499
7 (308,933) (285,107) (2,056,456) 2,056,456 2,056,456 0 (23,826) 286,664 10,066,449
8 (308,933) (280,677) (2,337,133) 2,337,133 2,337,133 0 (28,256) 479,202 10,084,198
9 (308,933) (275,416) (2,612,549) 2,612,549 2,612,549 0 (33,517) 709,884 10,105,277
10 (308,933) (269,172) (2,881,721) 2,881,721 2,881,721 0 (39,761) 981,307 10,130,319
11 0 47,039 (2,834,682) 2,834,682 2,834,682 0 (47,039) 1,305,284 10,177,358
12 0 55,633 (2,779,049) 2,779,049 2,779,049 0 (55,633) 1,650,686 10,232,991
13 0 65,781 (2,713,268) 2,713,268 2,713,268 0 (65,781) 2,017,911 10,298,772
14 0 77,735 (2,635,533) 2,635,533 2,635,533 0 (77,735) 2,406,676 10,376,507
15 0 91,813 (2,543,720) 2,543,720 2,543,720 0 (91,813) 2,816,181 10,468,320
(Joint
Life Exp)
16 0 108,381 (2,435,339) 2,435,339 2,435,339 0 (108,381) 3,246,451 10,576,701
17 0 127,849 (2,307,490) 2,307,490 2,307,490 0 (127,849) 3,700,072 10,704,550
18 0 150,682 (2,156,808) 2,156,808 2,156,808 0 (150,682) 4,177,814 10,855,232
19 0 177,457 (1,979,351) 1,979,351 1,979,351 0 (177,457) 4,697,892 11,032,689
20 0 208,787 (1,770,564) 1,770,564 1,770,564 0 (208,787) 5,207,711 11,241,476
21 0 245,398 (1,525,166) 1,525,166 1,525,166 0 (245,398) 5,770,524 11,486,874
22 0 288,054 (1,237,112) 1,237,112 1,237,112 0 (288,054) 6,368,396 11,774,928
23 0 337,718 (899,394) 899,394 899,394 0 (337,718) 7,007,024 12,112,647
24 0 395,357 (504,036) 504,036 504,036 0 (395,357) 7,693,544 12,508,004
25 0 462,161 (41,875) 41,875 41,875 0 (462,161) 8,434,398 12,970,165
26 0 41,875 0 0 0 0 (41,875) 8,739,589 13,012,040
---------- ------- --------- ---------
(3,089,330) 0 0 (3,089,330)
TOTAL
Present Value @ 9.0% (1,473,788)
NOTE: Vanishing Premium is a Cash Flow Concept Not a Contractual Guarantee, and
is Premised on Each Carrier's Current Assumptions With Respect to Interest
Crediting Rate, Mortality and Expenses.
