AMENDMENT NO. ONE TO EMPLOYMENT AGREEMENT
Amendment No. One to the Employment Agreement dated January 29, 1997,
by and between AMERICAN BUSINESS FINANCIAL SERVICES, INC., a Delaware
corporation (the "Company"), and XXXXXXX X. XXXXXXXX, XX., an individual (the
"Employee") is entered into this 1st day of October, 1997 ("Amendment One").
BACKGROUND
The Executive is currently employed by the Company in the position of
President and Chief Executive Officer. The Company and the Executive desire to
amend the Employment Agreement to revise the terms of the bonus payable to
Executive as more fully set forth below.
NOW, THEREFORE, in consideration of good and valuable consideration,
the receipt of which is hereby acknowledged, and intending to be legally bound
hereby, the parties agree as follows:
Section 3 of the Employment Agreement entitled "Compensation" be and
hereby is amended to read as follows:
Compensation. During the Term, the Executive shall be
entitled to a minimum base annual salary of not less than
$200,000. The foregoing figure shall be adjusted in January
of each calendar year during the Term for any increase in
the cost of living (based upon the Consumer Price Index,
Philadelphia, PA - New Jersey: all items, 1982-84=100, as
published by the U.S. Department of Labor) from May, 1996 to
November of the immediately preceding calendar year. The
minimum base annual salary of the Executive, as adjusted for
the cost of living, shall be reviewed annually, and may be
increased from time to time by the Company's Board of
Directors during the Term, and once increased may not
thereafter be decreased. The Board of Directors shall
establish a cash bonus plan which provides for the following
bonuses to be paid for each fiscal year during the Term: (a)
if the Executive achieves 80% of the targets approved by the
Board of Directors for the fiscal year (the "Targets"), a
cash bonus equal to 50% of base annual salary; (b) if the
Executive achieves 100% of the Targets, a cash bonus equal
to 100% of base annual salary, and if the Executive achieves
more than 80% and less than 100% of the Targets, the cash
bonus will be proportional to the achievement (e.g., if 90%
of the Targets are achieved, the cash bonus would equal 75%
of base annual salary); (c) if the Executive achieves more
than 100% of the Targets, the cash bonus will be 100% of the
base annual salary plus an additional 2.5% for each 1% over
100% of the Targets actually achieved (for example, if the
Executive achieves 120% of the Targets, the cash bonus would
equal 150% of the base annual salary). The Targets
established by the Board of Directors may not be increased
by more than twenty-five percent (25%) from one fiscal year
to the next subsequent fiscal year and may not be increased
after a Change of Control (as defined in Section 6 hereof)
to which the Executive does not give her written consent as
provided in Section 6. The Executive shall also be entitled
to such stock options and other incentive payments as are
determined from time to time by the Company's Board of
Directors.
IN WITNESS WHEREOF, the Company and Executive have executed this
Amendment One as of the date first written above.
AMERICAN BUSINESS FINANCIAL SERVICES, INC.
(Corporate Seal) By: /s/ Xxxxxxx X. Xxxxx
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Attest: /s/ Xxxxx X. Xxxxx
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Witness: /s/ Xxxxx X. Xxxxx
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/s/ Xxxxxxx X. Xxxxxxxx, Xx. (SEAL)
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XXXXXXX X. XXXXXXXX, XX.
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