Document:

Exhibit 10.29

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT, made as of the 15th day of September, 2008, by and between Union Bank & Trust Company (hereinafter called “Bank”) and Bruce Hart, an adult individual (hereinafter called “Executive”).

 

BACKGROUND

 

A.        Bank wishes to employ Executive on the terms and conditions contained in this Agreement.

 

B.        Executive wishes to accept employment with Bank on the terms and conditions contained in this Agreement.

 

NOW, THEREFORE, in consideration of the facts, mutual promises and covenants contained herein and intending to be legally bound hereby, Bank and Executive agree as follows:

 

(1)       Employment.            Bank hereby employs Executive and Executive hereby accepts employment by Bank upon the terms and conditions contained in this Agreement.

 

(2)       Office and Duties.

 

(a)       Executive shall serve Bank generally as the Vice President and Chief Financial Officer of the Bank and shall have such authority and such responsibilities as the Board of Directors of the Bank reasonably may determine from time to time.  Executive shall perform any other duties reasonably required by Bank.  Executive shall faithfully perform and discharge such management duties and such other duties recently required by the Board of Directors from time to time, or as otherwise agreed to between the Board of Directors and Executive.

 

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(b)       Throughout the term of this Agreement, Executive shall devote his working time, energy, skill and best efforts to the performance of his duties hereunder in a manner which will faithfully and diligently further the business and interest of Bank.

 

(3)       Term.  This Agreement shall be for a term of three (3) years, commencing on the date hereof and ending thirty-six (36) months thereafter, unless sooner terminated as hereinafter provided.  Unless either party elects to terminate this Agreement at the end of the current term by giving the other party notice of such election of at least ninety (90) days before the expiration of the then current term, this Agreement shall be deemed to automatically renew each year commencing on the day after the expiration of the then current term, unless otherwise terminated.  If notice of election not to renew is given by either party, the provisions of paragraph 5 regarding Severance shall apply.

 

(4)       Compensation.

 

(a)       For all of the services rendered by Executive to Bank, Executive shall receive an annual base salary of Seventy-Five Thousand Dollars ($75,000.00).  This salary shall remain the same or increase by mutual agreement of the parties at any time during the then current term of the Agreement.

 

(b)       In addition to Executive’s base salary, Executive may be entitled to a bonus based on the performance of the Bank to be determined by the Board of Directors of Bank on an annual basis.

 

(c)        Throughout the term of this Agreement and as long as they are kept in force by Bank, Executive shall be entitled to participate in and receive the benefits of any disability plan, life insurance, pension plans, and profit sharing plans available to other similarly situated employees of Bank.

 

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(d)       Executive shall be entitled to four (4) weeks of vacation and the paid holidays made available to other similarly situated employees of the Bank.

 

(5)       Change of Control.  If the Bank is sold and either the Bank’s successors or Executive decide to terminate Executive’s employment, the Executive shall be entitled to a severance pay in the amount equal to thirty-six (36) months of the Executive’s then current annual base salary payable in accordance with the Bank’s ordinary payroll schedule.  This severance payment shall begin on the date that the Bank’s successor or Executive give notice of termination.  This clause applies whether Executive tenders his resignation or is terminated by the Bank’s successor.  If, however, the Executive commits fraud or intentional misconduct or criminal violations related to his work with the Bank then the Executive shall not be entitled to receive any severance pursuant to this paragraph.

 

(6)       Expenses.     Bank will reimburse Executive for all reasonable expenses incurred by Executive in connection with the performance of Executive’s duties hereunder upon receipt of vouchers therefore and in accordance with Bank’s regular reimbursement procedures and practices in effect from time to time.

 

(7)       Death.            If Executive dies, all payments hereunder shall cease at the end of the then current term in which Executive’s death shall occur and Bank shall have no further obligations or liabilities hereunder to Executive’s estate or legal representative or otherwise.

 

(8)       Discharge With or Without Cause.           Either party may terminate Executive’s employment with or without cause at any time, by giving thirty (30) days written notice to the other of its intention to terminate such employment, and in such event Bank shall be obligated only to:

 

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(i)         Continue to pay Executive the regular compensation due to him under his agreement up to the termination date stated in said written notice or to such earlier date as Executive actually ceases performing his duty;

 

(ii)        Pay Executive any discretionary bonuses authorized or declared by Bank’s Board of Directors on or prior to the date of such written notice by Bank.

 

If, however, the Executive commits gross misconduct, fraud, intentional and substantial failure to perform, any intentional violations or criminal acts related to his job at the Bank, then Bank may terminate employee without any notice effective immediately.

 

(9)       Bank Property.          All advertising, sales, financial data, and other materials or articles of information, including without limitation data processing reports, sales analyses, invoices, or information, samples, or any other materials or data of any kind furnished to Executive by Bank or developed by Executive on behalf of Bank or at Bank’s direction or for Bank’s use or otherwise in connection with Executive’s employment hereunder, are and shall remain the sole and confidential property of Bank, if Bank requests the return of such materials at any time during or at or after the termination of Executive’s employment, Executive shall immediately deliver the same to Bank.

 

(10)     Noncompetition, Trade Secrets, etc.

 

(a)       During the term of this Agreement and for a period after the termination of his employment with Bank, as set forth in subsections (10)(a)(i)-(ii), for any reason whatsoever and so long as Bank is in compliance with the terms of this Agreement, Executive shall not directly or indirectly induce or attempt to influence any Executive of Bank to terminate his employment with Bank and shall not engage in (as principal, partner, director, officer, agent, employee, consultant or otherwise) or be financially interested in any business doing business in the County of Schuylkill which conducts business activities carried on by Bank, or being definitely planned by Bank at the time of the termination of the Executive’s employment 

 

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(the “Business Activities”).  However, nothing contained in this Section 10 shall prevent Executive from holding for investment no more than five percent (5%) of any class of equity securities of a Bank whose securities are traded on a national securities exchange.

 

(i)         If Executive terminates his employment with Bank, the restrictions contained in Section 10(a) shall apply for a period of three (3) years after he terminates his employment with Bank.

 

(ii)        If Bank terminates Executive’s employment with Bank, Bank will not enforce the restrictions contained in Section 10(a) above, however the Bank will have the right to enforce 10(b) and (c) below.

 

(b)       During the term of this Agreement, and at all times thereafter, Executive shall not use for his personal benefit, or disclose, communicate or divulge to, or use for the direct or indirect benefit of any person, firm, association, or Bank other than then Bank, any material referred to in Section 9 above or any information regarding the business methods, business policies, procedures, techniques, trade secrets, or other knowledge or processes used or developed by the Bank or any names and addresses of customers or clients or any data on or relating to past, present or prospective customers or clients or any other confidential information relating to or dealing with the business operations or activities of Bank, made known to Executive or learned or acquired by Executive while in the employ of Bank.

 

(c)        Any and all writings, inventions, improvements, processes, procedures and/or techniques which Executive may make, conceive, discover or develop, either solely or jointly with any other person or persons, at any time during the term of this Agreement, whether during working hours or at any other time and whether at the request or upon the suggestion of Bank or otherwise, which relate to or are useful in connection with any business now or hereafter carried on or contemplated by the Bank, including developments or expansions of its present fields of operations, shall make full disclosure to Bank of all such writings, inventions, improvements, processes, procedures and techniques, and shall do everything necessary or 

 

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desirable to vest the absolute title thereto in Bank.  Executive shall write and prepare all specifications and procedures regarding such inventions, improvements, processes, procedures and techniques and otherwise aid and assist Bank so that Bank can prepare and present applications for copyright or Letters Patent wherever possible, as well as reissues, renewals, and extensions thereof, and can obtain the record title to such copyright or patents so that Bank shall be the sole and absolute owner thereof in all countries in which it may desire to have copyright or patent protection.  Executive shall not be entitled to any additional or special compensation or reimbursement regarding any and all such writings, inventions, improvements, processes, procedures and techniques.

 

(d)       Executive acknowledges that the restrictions contained in the foregoing subsections (a), (b) and (c), in view of the nature of the business in which Bank is engaged, are reasonable and necessary in order to protect the legitimate interest of Bank, and that any violation thereof would result in irreparable injuries to Bank, and Executive therefore acknowledges that, in the event of his violation of any of these restrictions, Bank shall be entitled to obtain from any court of competent jurisdiction preliminary and permanent injunctive relief as well as damages and an equitable accounting of all earnings, profits and other benefits arising from such violation, which rights shall be cumulative and in addition to any other rights or remedies to which Bank may be entitled.

 

(e)       If the period of time or the area specified in subsection (a) above should be adjudged unreasonable in any proceeding, then the period of time shall be reduced by such number of months or the area shall be reduced by the elimination of such portion thereof or both so that such restrictions may be enforced in such area and for such time as adjudged to be  reasonable.  If Executive violates any of the restrictions contained in the foregoing subsection (a), the restrictive period shall not run in favor of Executive from the time of the commencement of any such violation until such time as such violation shall be cured by Executive to the satisfaction of Bank.

 

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(11)     Prior Agreements.    Executive represents to Bank (i) that there are no restrictions, agreements or understandings whatsoever to which Executive is a party which would prevent or make unlawful his execution of this Agreement or his employment hereunder, (ii) that his execution of this Agreement and his employment hereunder shall not constitute a breach of any contract, agreement or understanding, oral or written, to which he is a party or by which he is bound and (iii) that he is free and able to execute this Agreement and to enter into the employment of Bank.

 

(12)     Miscellaneous.

 

(a)       Indulgences, Etc.     Neither the failure nor any delay on the part of either party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power of privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.

 

(b)       Controlling Law.       This Agreement and all questions relating to its validity, interpretation, performance and enforcement, shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania.

 

(c)        Notices.          All notices, requests, demands and other communications required or permitted under this Agreement and the transactions contemplated herein shall be in writing and shall be deemed to have been duly given, made and received when delivered against receipt or when sent by United States registered mail, return receipt requested, postage prepaid, addressed as set forth below:

 

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(i)         If to Executive:

 

Bruce Hart

14 Bent Pine Rd.

West Hazleton, PA 18202

 

(ii)        If to Bank:

 

Union Bank & Trust Company

Centre & Mahantongo Streets

Pottsville, PA 17901

Attention:  Board of Directors

 

In addition, notice by mail shall be sent air mail if posted outside of the continental United States.

 

Any party may alter the address to which communications or copies are to be sent by giving notice of such change or address in conformity with the provisions of this Section for the giving of notice.

 

(d)       Binding Nature of Agreement.      This Agreement shall be binding upon and inure to the benefit of the Bank and its successors and assigns and shall be binding upon Executive, his heirs and legal representatives.

 

(e)       Execution in Counterparts.            This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute on and the same instrument.  This Agreement shall become binding when one or more counterparts hereof, 

 

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individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.

 

(f)        Provisions Separable.         The provisions of this Agreement are independent of and separable from each other, and no provision shall be affected or rendered invalid or enforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.

 

(g)       Entire Agreement.   This Agreement contains the entire understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and understandings, inducements or conditions, express or implied, oral or written, except as herein contained.  The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof.  This Agreement may not be modified or amended other than by an agreement in writing.

 

(h)       Section Heading.     The Section headings in this Agreement are for convenience only; they form no part of this Agreement and shall not affect its interpretation.

 

(i)         Gender, Etc.  Words used herein, regardless of the number and gender, specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires.

 

(j)         Number of Days.      In computing the number of days for purposes of this Agreement, all days shall be counted including Saturdays, Sundays and holidays; provided, however, that if the final day of any time period falls on a Saturday, Sunday or holiday, then the final day shall be deemed to be the next day which is not a Saturday, Sunday or holiday.

 

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered the date first above written.

 

 

	
UNION BANK & TRUST COMPANY
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Felix E. Bartush, Jr., Director
    	
 
    	
Daniel R. Blaschak, Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Harry J. Brown, Director
    	
 
    	
Albert V. Schulze, Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Frances D. Weiss, Director
    	
 
    	
Naomi Morrow Ost, Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Albert J. Evans, Director
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTIVE
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Bruce Hart
    	
 
    	
 
    

 

10Exhibit 10.30

 

AMENDMENT TO COMPENSATION AGREEMENT

 

It is agreed that the Compensation Agreement between UNION BANK & TRUST COMPANY and HARRY J. BROWN, DIRECTOR, dated January 1, 1986, will be amended as follows:

 

Paragraph “1” shall read: Compensation. The Bank agrees to pay Director the total sum of $688,065 payable in monthly installments of $5,733.88 for 120 months, commencing on the first day of the month following Director’s 66th birthday. Payments to the Director will terminate when the 120 payments have been made or at the time of the Director’s death, whichever occurs first.

 

Paragraph “2” shall read: Death of Director Before Age 66. In the event Director should die before reaching age 66, the Bank agrees to pay to Director’s beneficiary designated in writing to the Bank, the sum of $5,733.88 per month for 120 consecutive months. Payments will begin on the first day of the month following Director’s death.

 

Paragraph “3” shall read: Death of Director After Age 66. If the Director dies after age 66 prior to receiving the full 120 monthly installments, the remaining monthly installments will be paid to the Director’s designated beneficiary(ies). The beneficiary(ies) , shall receive all remaining monthly installments which the Director would have received until the total sum of $688,065 set forth in Paragraph “1” is paid. If the Director fails to designate a beneficiary in writing to the Bank, the balance of monthly installments remaining at the time of his death shall be paid to the legal representative of the estate of the Director.

 

IN WITNESS HEREOF, the parties have signed this agreement on May 31, 1991.

 

	
 
    	
 
    	
UNION BANK AND TRUST COMPANY
    
	
 
    	
 
    	
 
    
	
(Seal)
    	
 
    	
By
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
WITNESS
    	
 
    	
HARRY J. BROWN, DIRECTOR
    

 

 

DIRECTOR’S COMPENSATION AGREEMENT

 

This Agreement is entered into this first day of January, 1986, between UNION BANK & TRUST COMPANY, 25 S. Centre Street, Box 119, Pottsville, Pennsylvania 17901 (herein referred to as the “Bank”) and HARRY J. BROWN, RD#3, Box 448, Schuylkill, Pennsylvania 17972 (herein referred to as the “Director”).

 

WITNESSETH

 

WHEREAS, the Bank recognizes that the competent and faithful efforts of Director on behalf of the Bank have contributed significantly to the success and growth of the Bank; and

 

WHEREAS, the Bank values the efforts, abilities and accomplishments of the Director and recognizes that his services are vital to its continued growth and profits in the future; and

 

WHEREAS, the Bank desires to compensate the Director and retain his services for four years, if elected, to serve on the Board of Directors. Such compensation is set forth below; and

 

WHEREAS, the Director, in consideration of the foregoing, agrees to continue to serve as a Director, if elected,

 

NOW, THEREFORE, it is mutually agreed as follows:

 

1.             Compensation. The Bank agrees to pay Director the total sum of 1,074,300 payable in monthly installments of $8,952.50 for 120 consecutive months, commencing on the first day of the month following Director’s 65th birthday. Payments to the Director will terminate when the 120 payments have been made or at the time of the Director’s death, whichever occurs first.

 

2.             Death of Director Before .Age 65. In the event Director should die before reaching age 65, the Bank agrees to pay to Director’s beneficiary(ies) designated in writing to the Bank, the following schedule:

 

	
If Death Occurs

In Year
    	
 
    	
Monthly Income

To Beneficiary For 120   Months
    
	
 
    	
 
    	
 
    
	
1986 - 1990
    	
 
    	
7,389.17
    
	
1991 - 1995
    	
 
    	
7,628.25
    
	
1996 - 2001
    	
 
    	
8,150.92
    
	
2002 &   Thereafter
    	
 
    	
8,952.50
    

 

Payments will begin on the first day of the month following Director’s death.

 

 

3.             Death of Director After Age 65. If the Director dies after age 65 prior to receiving the full 120 monthly installments, the remaining monthly installments will be paid to the Director’s designated beneficiary(ies). The beneficiary(ies) shall receive all remaining monthly installments which the Director would have received until the total sum of $1,074,300 set forth in paragraph “1” in paid. If the Director fails to designate a beneficiary in writing to the Bank, the balance of monthly installments remaining at the time of his death shall be paid to the legal representative of the estate of the Director.

 

4.             Termination of Service as a Director. If the Director, for any reason other than death, fails to serve four consecutive years as a Director, he will receive monthly compensation beginning at age 65 on the basis that the number of full months served bears to the required number of 48 months times the compensation stated in paragraph “1”. For example, if the Director serves only 24 months, he will be entitled to 24/48 or 50 % of the compensation stated in paragraph “1”.

 

5.             Suicide. No payments will be made to the Director’s beneficiary(ies) or to his estate in the event of death by suicide during the first three years of this agreement.

 

6.             Status of Agreement. This agreement does not constitute a contract of employment between the parties, nor shall any provision of this agreement restrict the right of the Bank’s Shareholders to replace the Director or the right of the Director to terminate his service.

 

7.             Binding Effect. This agreement shall be binding upon the parties hereto and upon the successors and assigns of the Bank, and upon the heirs and legal representatives of the Director.

 

8.             Interruption of Service. The service of the Director shall not be deemed to have been terminated or interrupted due to his absence from active service on account of illness, disabiliaty, during any authorized vacation or during temporary leaves of absence granted by the Bank for reasons of professional advancement, education, health or government service, or during military leave for any period if the Director is elected to serve on the Board following such interruption.

 

9.             Forfeiture of Compensation by Competition. The Director agrees that all rights to compensation following age 65 shall be forfeited by him if he engages in competition with the Bank, without the prior written consent of the Bank, within a radius of 50 miles of the main office of the Bank for a period of ten years, coinciding with the number of years that the Director shall receive such compensation.

 

10.          Assignment of Rights. None of the rights to compensation under this agreement are assignable by the Director or any beneficiary or designee of the Director and any attempt to anticipate, sell, transfer, assign, pledge, encumber or change Director’s right to receive compensation, shall be void.

 

11.          Status of Director’s Rights. The rights granted to the Director or any designee or beneficiary under this agreement shall be solely those of an unsecured creditor of the Bank.

 

 

12.          Amendments. This agreement may be amended only by a written agreement signed by the parties.

 

13.          If the Bank shall acquire an insurance policy or any other asset in connection with the liabilities assumed by it hereunder, it is apparently understood and agreed that neither Director nor any beneficiary of Director shall have any right with respect to, or claim against, such policy or in the title to such other asset. Such policy or asset shall not he deemed to be held under any trust for the benefit of Director or his beneficiaries or to be held in any way as collateral security for the fulfilling of the obligations of the Bank under this Agreement except as may be expressly provided by the terms of such policy or other asset. It shall be, and remain, a general, unpledged, unrestricted asset of the Bank.

 

14.          This Agreement shall be construed under and governed by the laws of the State of Pennsylvania.

 

15.          Interpretation. Wherever appropriate in this Agreement, words used in the singular shall include the plural and the masculine shall include the feminine gender.

 

16.          This Agreement shall be binding upon and inure to the benefit of any successor of the Bank and any such successor shall be deemed substituted for the Bank under the terms of this Agreement. As used herein, the term “successor” shall include any person, corporation or other business entity which at any time, whether by merger, purchase or otherwise, acquires all or substantially all of the stock, assets or business of the Bank.

 

17.          If the Bank’s marginal income tax bracket is different from 48% at the time deferred income payments are made under this Agreement to the Director or his beneficiary(ies), the payments may be adjusted by the Board of Directors to reflect that change. The following formula could be used to calculate the change in benefits:

 

Monthly Income (As Shown) X .54

1 - Tax Bracket

 

IN WITNESS HEREOF, the parties have signed this Agreement the day and year above written.

 

	
 
    	
 
    	
UNION BANK AND TRUST COMPANY
    
	
 
    	
 
    	
 
    
	
(Seal)
    	
 
    	
By 
    	
 
    
	
 
    	
 
    	
 
    	
Frances D. Weiss, President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(SEAL)
    
	
 
    	
 
    	
 
    
	
Witness
    	
 
    	
Harry J. Brown, Director
    
					

 

 

AMENDMENT TO COMPENSATION AGREEMENT

 

It is agreed that the Compensation Agreement between UNION BANK & TRUST COMPANY and NAOMI K. MORROW, EXECUTIVE, dated January 1, 1985, will be amended as follows:

 

 

Paragraph “1” shall read: Compensation. The Bank agrees to pay Executive the total sum of $250,030.80 payable in monthly installments of $1,389.06 for 180 months, commencing on the first day of the month following Executive’s 66th birthday. Payments to the Executive will terminate when the 180 payments have been made or at the time of the Executive’s death, whichever occurs first.

 

Paragraph “2” shall read: Death of Executive Before Age 66. In the event Executive should die before reaching age 66, the Bank agrees to pay to Executive’s beneficiary designated in writing to the Bank, the sum of $1,389.06 per month for 180 consecutive months. Payments will begin on the first day of the month following Executive’s death.

 

Paragraph “3” shall read: Death of Executive After Age 66. If the Executive dies after age 66 prior to receiving the full 180 monthly installments, the remaining monthly installments will be paid to the Executive’s designated beneficiary(ies). The beneficiary(ies) shall receive all remaining monthly installments which the Executive would have received until the total sum of $250,030.80 set forth in Paragraph “1” is paid. If the Executive fails to designate a beneficiary in writing to the Bank, the balance of monthly installments remaining at the time of her death shall be paid to the legal representative of the estate of the Executive.

 

IN WITNESS HEREOF, the parties have signed this agreement on February 22, 1991.

 

	
 
    	
 
    	
UNION BANK AND TRUST COMPANY
    
	
 
    	
 
    	
 
    
	
(Seal)
    	
 
    	
By
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
WITNESS
    	
 
    	
NAOMI K. MORROW, EXECUTIVE
    
					

 

 

DEFERRED INCOME AGREEMENT

 

This Agreement is entered into this first day of January, 1985, between UNION BANK AND TRUST COMPANY, 25 S. Centre, Box 119, Pottsville, Pennsylvania 17901 (herein referred to as the “Employer”) and NAOMI E. MORROW, 202 West Main Street, Schuylkill Haven, Pennsylvania 17972 (herein referred to as the “Employee”).

 

WITNESSETH

 

WHEREAS, the Employee is currently employed by the Employer in the capacity of OFFICER; and

 

WHEREAS, the Employer recognizes that the competent and faithful efforts of the Employee on behalf of the Employer have contributed significantly to the success and growth of the Employer; and

 

WHEREAS, the Employer values the efforts, abilities and accomplishments of the Employee and recognizes that his services are vital to its continued growth and profits in the future; and

 

WHEREAS, the Employer desires to retain the Employee’s valuable services and business counsel and to induce the Employee to remain in his executive capacity with the Employer.

 

WHEREAS, the Employee, in consideration of the foregoing, agrees to continue to serve in his executive capacity,

 

NOW, THEREFORE; it is mutually agreed as follows:

 

1.             Compensation. The Employer agrees to pay Employee the total sum of $358,500 payable in monthly installments of $1,991.67 for 180 consecutive months, commencing on the first day of the month following Employee’s 65th birthday. Payments to the Employee will terminate when the 180 payments have been made or at the time of the Employee’s death, whichever occurs first.

 

2.             Death of Employee Before Age 65. In the event Employee should die before reaching age 65, the Employer agrees to pay to Employee’s beneficiary designated in writing to the Employer, the sum of $1,991.67per month for 180 consecutive months. Payments will begin of the first day of the month following Employee’s death.

 

3.             Death of Employee After Age 65. If the Employee dies after age 65 prior to receiving the full 180 monthly installments, the remaining monthly installments will be paid to the Employee’s designated beneficiary(ies). The beneficiary(ies) shall receive all remaining monthly installments which the Employee would have received until the total sum of $350,500 set forth in paragraph “1” is paid. If the Employee fails to designate a beneficiary in writing to the

 

 

Employer, the balance of monthly installments . remaining at the time of his death shall be paid to the legal representative of the estate of the Employee.

 

4.             Termination of Service as an Employee. If the Employee, for any reason other than death, fails to serve four consecutive years as an executive, he will receive monthly compensation beginning at age 65 on the basis that the number of full months served bears to the required number of 48 months times the compensation stated in paragraph “1”. For example, if the Employee serves only 24 months, he will be entitled to 24/48 or, 50 % of the compensation stated in paragraph “1”.

 

5.             Suicide. No payments will be made to the Employee’s beneficiary(ies) or to his estate in the event of death by suicide during the first 30 months of this agreement.

 

6.             Status of Agreement. This agreement does not constitute a contract of employment between the parties, nor shall any provision of this agreement restrict the right of the Employer to replace the executive or the right of the Employee to terminate his service.

 

7.             Binding Effect. This agreement shall, be binding upon the parties hereto and Upon the successors and assigns of the Employer, and upon the heirs and legal representatives of the Employee.

 

8.             Interruption of Service. The service of the Employee shall not be deemed to have been terminated or interrupted due to his absence from active service on account of illness, disability, during any authorized vacation or during temporary leaves of absence granted by the Employer for reasons of professional advancement, education, health or government service, or during military leave for any period if the Employee continues to serve in an executive capacity following such interruption.

 

9.             Forfeiture of Compensation by Competition. The Employee agrees that all rights to compensation following age 65 shall be forfeited by him if he engages in competition with the Employer, without the prior written consent of the Employer, within a radius of 50 miles of the main office of the Employer for a period of ten years, coinciding with the number of years that the Employee shall receive such compensation.

 

10.          Assignment of Rights. None of the rights to compensation under this Agreement are assignable by the Employee or any beneficiary or designee of the Employee and any attempt to anticipate, sell, transfer, assign, pledge, encumber or change Employee’s right to receive compensation, shall be void.

 

11.          Status of Employee’s Rights. The rights granted to the Employee or any designee or beneficiary under this Agreement shall be solely those of an unsecured creditor of the Employer.

 

12.          Amendments. This Agreement may be amended only by a written Agreement signed by the parties.

 

13.          If the Employer shall acquire an insurance policy or any other asset in connection with the liabilities assumed by it hereunder, it is expressly understood and agreed that neither

 

 

Employee nor any beneficiary of Employee shall have any right with respect to, or claim against, such policy or other asset except as expressly provided by the terms of such policy or in the title to such other asset. Such policy or asset shall not be deemed to be held under any trust for the benefit of Employee or his beneficiaries or to be held in any way as collateral security for the fulfilling of the obligations of the Employer under this Agreement except as may be expressly provided by the terms of such policy or other asset. It shall be, and remain, a general, unpledged, unrestricted asset of the Employer.

 

14.          This Agreement shall be construed under and governed by the laws of the State of Pennsylvania.

 

15.          Interpretation. Wherever appropriate in this Agreement, words used in the singular shall include the plural and the masculine shall include the feminine gender.

 

16.          This Agreement shall be binding upon and inure to the benefit of any successor of the Corporation and any such successor shall be deemed substituted for the Corporation under the terms of this Agreement. As used herein, the term “successor” shall include any person, corporation or other business entity which at any time, whether by merger, purchase or otherwise, acquires all of the stock, assets or business of the Corporation.

 

17.          If the Bank’s marginal income tax bracket is different from 46% at the time deferred income payments are made under this Agreement to the Officer or his beneficiary(ies), the payments may be adjusted by the Board of Directors to reflect that change. The following formula could be used to calculate the change in benefits:

 

Monthly Income (As Shown) X .54

1 - Tax Bracket

 

IN WITNESS HEREOF, the parties have signed this Agreement the day 

 

and year above written.

 

 

	
 
    	
 
    	
UNION BANK AND TRUST COMPANY
    
	
 
    	
 
    	
 
    
	
(Seal)
    	
 
    	
By 
    	
 
    
	
 
    	
 
    	
 
    	
Frances D. Weiss, President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(SEAL)
    
	
 
    	
 
    	
 
    
	
Witness
    	
 
    	
Naomi E. Morrow, Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}]]