Contract
Exhibit
10.6
The
Salary Continuation Agreements between Beneficial Mutual Savings Bank (the
“Bank”) Xxxxxx X. Xxxxxxx, Xxxx X. Xxxxxxxx, Xxxxxx Xxxxxx, Xxxxxx X. Nise and
Xxxxxx X. Xxxxxx, Xx. (collectively, the “Executives”) are substantially
identical except that:
(a) |
The
Executives’ beneficiaries would receive the following monthly death
benefits in the event of death prior to age 55 while in active
service
with Bank:
|
Executive
|
First
12 months
|
13th
month through the
month executive would have reached age 65 |
Xx.
Xxxxxxx
|
$20,417
|
$13,618
|
Xx.
Xxxxxxxx
|
19,130
|
12,759
|
Xx.
Xxxxxx
|
20,417
|
13,618
|
Mr.
Nise
|
40,417
|
26,958
|
Xx.
Xxxxxx
|
22,917
|
15,285
|
(b) |
The
Executives’ beneficiaries would receive the following monthly death
benefits in the event of death between ages 55 and
65:
|
Executive
|
First
12 months
|
13th
month through 120th
month following date of death |
Xx.
Xxxxxxx
|
$20,417
|
$13,618
|
Xx.
Xxxxxxxx
|
19,130
|
12,759
|
Xx.
Xxxxxx
|
20,417
|
13,618
|
Mr.
Nise
|
40,417
|
26,958
|
Xx.
Xxxxxx
|
22,917
|
15,285
|
(c)
Upon
retirement at age 65, the Executives receive life insurance benefits in the
form
of a life insurance policy in the following amounts:
Executive
|
Policy
Amount
|
Xx.
Xxxxxxx
|
$490,000
|
Xx.
Xxxxxxxx
|
459,112
|
Xx.
Xxxxxx
|
490,000
|
Mr.
Nise
|
970,000
|
Xx.
Xxxxxx
|
550,000
|
Agreement
made this 1st day
of
July
2003
between
BENEFICIAL
MUTUAL SAVINGS BANK
(hereinafter referred to as Bank) and _______________________ (Hereinafter
referred to as Employee).
BACKGROUND
1. |
Employee
is employed by Bank
|
2. |
Bank
and Employee desire to enter into Agreement whereby, if Employee
dies
while in Bank’s employ, before attaining the age of sixty-five (65) years,
certain payments will be made to Employee’s family as more fully set forth
herein.
|
NOW,
THEREFORE,
intending to be legally bound hereby, the parties agree as follows:
1.
Employee
Death Benefits Prior to Attaining Age 55
If
Employee’s death occurs before Employee has attained the age of fifty-five (55)
years, and while Employee is an active Employee of the Bank, Bank will pay
to
the Beneficiary (as identified in Paragraph 9 hereof) _________ per month for
twelve (12) months commencing with the first month following the date of
Employee’s death and _________ per month commencing with the thirteenth (13th)
month following Employee’s death through the month during which Employee would
have attained the age of sixty-five (65) years had Employee lived to such
date.
2.
Employee’s
Death Benefits After Attaining Age 55 but Prior to Attaining Age
65
If
Employee’s death occurs after Employee attains the age of fifty-five (55) years,
but while Employee is an active Employee of Bank, Bank will pay to the
Beneficiary (as identified in Paragraph 9 hereof) _________ per month for twelve
(12) months commencing with the first month following the date of Employee’s
death and _________ per month commencing with the thirteenth (13th) month
following Employee’s death through the one hundred and twentieth (120th) month
following Employee’s death.
3.
Benefits
After Employee’s Termination Or Employee Attaining the Age of
65
Upon
his
or her retirement at age sixty-five (65) Employee shall receive a life insurance
policy in the amount of _________ (“Life Insurance Benefit”). The policy is
intended to be a continuation of the current policy held by the Bank to fund
the
Employee Benefits under this Plan. The policy delivered to Employee, as the
Life
Insurance Benefit shall contain all of the attributes of the then current policy
in the same proportion as the Life Insurance Benefit bears to the face amount
of
the policy. The formula for determining the attribute shall be as
follows:
Attributes
of
Then
Current
Policy
|
x
|
Life
Insurance Benefit
Face
Amount of
Current
Policy
|
=
|
Attributes
of
Life
Insurance
Benefit
|
1
When
Used in This Section
(a) |
the
term “then current policy” shall mean all of the policies held by the
Employer to provide funding for the Employee’s obligation under the
Plan.
|
(b) |
the
term “attributes” shall include, but not be limited to (1) cash value, (2)
outstanding policy loans, and (3) premiums
due.
|
As
of the
date in which he or she attained the age of sixty-five (65) years, Employee’s
rights under this Agreement, except to the extent provided in the first section
of Section (3), shall terminate. Other termination provisions are found in
paragraph’s 6, 9 and 11 hereof. Should Employee terminate her employment with
Bank or should Employee be terminated for any reasons, except for dishonesty,
or
should this Plan be terminated, Employee shall be entitled to a life insurance
policy with a death benefit to be the lesser of the (a) Life Insurance Benefit
or (b) an amount calculated by multiplying the Life Insurance Benefit by a
fraction, the denominator of which shall be twenty-five (25) and the numerator
shall be the number of consecutive calendar years during which the Employee
was
in the employment for a full twelve (12) months.
4. Employee
Contribution
Employee
acknowledges that she has not been required to make any monetary payment to
the
Bank or give any consideration, other than employment to Bank in return for
this
Agreement.
5. Bank’s
Funding
Bank
shall not be required to fund its potential obligations under this Agreement
or
pledge assets as security for its performance hereunder.
6.
Terminations
of Employment
This
Agreement shall not in any way constitute any employment Agreement between
Employee and Bank and shall in no way obligate Bank to continue the employment
of Employee with Bank, nor shall this Agreement limit the right of Bank to
terminate Employee’s employment with Bank for any reason. Termination of
Employee’s employment with Bank for any reason, whether by action of Bank,
Employee, or in any other manner, shall immediately terminate this Agreement
and
all of Bank’s obligations hereunder. For purposes of Paragraphs 1 and 2, the
word “termination” shall not be defined to include termination occasioned by
death of Employee.
2
7. Other
Benefits and Agreements
The
benefits provided for Employee hereunder are in addition to any other benefits
Employee may have under any other plan or program of Bank and, except as
otherwise expressly provided for herein, this Agreement shall supplement and
shall not supersede any other Agreement between Bank and Employee or any
provisions contained therein.
8. Assignment
Neither
Employee nor the Beneficiary hereunder shall have any right to commute, sell,
transfer, assign or otherwise convey the right to receive any payments under
the
terms of this Agreement. Any such attempted assignment or transfer shall at
the
option of the Bank terminate this Agreement and Bank shall have no further
liability hereunder.
9. Beneficiary
The
following person(s) shall be deemed the Beneficiary or Beneficiaries under
this
Agreement in the percentages set forth as follows:
Name
|
Percentages
|
||
Notwithstanding
anything set forth herein to the contrary, the Employee’s Beneficiary or
Beneficiaries must be members of the Employee’s family, including parents,
siblings, aunts, uncles nieces and nephews.
If
any
payments or portions of payments remain due under the Agreement at the death
of
a Beneficiary, such remaining payments or portion of payment shall be paid
to
Beneficiary’s living children equally. If no living children survive such
deceased Beneficiary, then such remaining payments or portions of payments
shall
be divided among the remaining beneficiaries in the percentages indicated in
the
foregoing paragraph.
In
the
event that at Employee’s death or at the death of a Beneficiary, there are no
other Beneficiaries or children of Beneficiaries, Banks obligation to make
payments under this Agreement is terminated.
Employee
shall notify Bank in a form and manner acceptable to Bank of the names and
addresses of his or her beneficiaries and children of such beneficiaries.
Attached hereto as Exhibit “A” is a form of notice of names and addresses of
Employee’s Beneficiaries and children of Beneficiaries acceptable to Bank. In
the absence of such notice, or in the event of an incomplete notice, Bank shall
be under no obligation to make payments to any spouse, child or grandchild
of
whom it has no notice.
3
10.
Notice
Any
notice which shall be or may be given hereunder shall be in writing and shall
be
mailed by certified mail, postage prepaid, addressed as follows:
(A)
|
Notice
to Employee
|
(B)
|
Notice
to Bank
|
|
000
Xxxxxx Xxxxxx
|
||||
Xxxxxxxxxxxx,
XX 00000
|
||||
Any
party
hereto may from time to time change the address to which notices to it shall
be
mailed by giving notice thereof in the manner provided for herein.
11.
Miscellaneous
(a) |
If
Bank liquidates or is otherwise dissolved due to insolvency or
any other
event, this Agreement shall terminate and shall be considered null,
void
and of no legal effect.
|
(b) |
This
Agreement shall be binding upon and insure the benefits of the
parties
hereto, their respective Heirs, Executors, Administrators, and
Beneficiaries and Bank’s successors and
assigns.
|
(c) |
This
Agreement represents the entire understanding between the parties
hereto
and may be amended only by an instrument in writing signed by such
parties.
|
(d) |
The
parties hereto consent to the exclusive jurisdiction of the courts
of the
Commonwealth of Pennsylvania in any and all actions arising
hereunder,
|
(e) |
This
Agreement shall be governed and construed under the laws of the
Commonwealth
of Pennsylvania as in effect at the time of the execution of this
Agreement.
|
(f) |
All
headings preceding the text of the several paragraphs hereof
are inserted
solely for reference and shall not constitute a part of this
Agreement,
nor affect its meaning, construction of
effect.
|
4
IN
WITNESS WHEREOF,
The
parties hereto have set their hands and seals the day first written
above.
CORPORATE
SEAL
|
BENEFICIAL
MUTUAL SAVINGS BANK
|
||
By:
|
|||
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