Document:

ex10s.htm

Employment Contract between Commercial Mutual Insurance Company

 and Successor Companies and John D.Reiersen

Assumptions:

	
1.  

	
Mr. Reiersen will terminate his employment with The Robert Plan effective 11/10/06

	
2.  

	
Commercial Mutual (CMIC) will make up lost salary and benefits currently being received by Mr. Reiersen from the Robert Plan.

	
3.  

	
Mr. Reiersen will receive additional time off in each calendar year, and his salary level will be adjusted accordingly.

	
4.  

	
Effective date of Contract November 13, 2006

	
5.  

	
Title will be President & CEO through 12/31/09 at which time Mr. Reiersen will become a consultant to the Company. Mr. Reiersen's position as Consultant will be annually renewed subject to Board approval.

	
6.  

	
Mr. Reiersen has the option of ending his position as President & CEO effective 12/31/08, subject to providing at least one year's prior notice of such election. Under this option, Mr. Reiersen will become a Consultant to the Company, effective 1/01/09.

Current salary and benefits:

Commercial Mutual Insurance Company

Salary $220,000. Current contract expires 12/31/07 Company life benefits of $100,000

Company DBL insurance

Company 401k plan

Dental insurance

Eligibility for CMIC profit sharing plan

25 time bank days

Acura MDX- Company car

Severance- One years pay-prorated in 2007.

Robert Plan-

Salary $75,000

Executive DBL Program

Dental Insurance

Life Insurance $75,000

Company pays 50% of supplementary life policy providing $380,000 in coverage

5 time bank days

  

  

  

 

Contract terms:

Period 11/13-12/31/06

Salary of $295,000

401k plan eligibility

Company life Insurance at $100,000 maximum

Payment of supplementary life insurance policy (approximately $2200 per year)

Time bank days- prorated days at 30 day level

Company holidays

Dental Insurance

Company DBL benefits

CMIC profit sharing plan eligibility

Company car- Acura MDX or equivalent

Severance one year's pay plus accrued time bank days

Period 1/1/07- 12/31/07- Mr. Reiersen's time bank days are increased to 40. A 5% or $15,000 pay increase will become effective 1/01/07. In return for the additional 10 time bank days, Mr. Reiersen will forgo $10,000 of that raise. Salary and benefits will be as follows:

Salary $300,000 per annum

40 time bank days

Company 401k plan

Company profit sharing plan as approved by Board

Company life insurance

Supplemental life insurance benefit

Company DBL program

Company dental benefits

Company car- MDX or equivalent

Company holidays

Severance pay- Up to 6/30/07- balance of the year, plus accrued time bank days. From

7/1/07- 6 months pay plus accrued time bank days

Period 1/1/08-12/31/08- Mr. Reiersen will commence working on a four-day a week basis with four weeks vacation. This will increase his time bank days to 68 for the year an increase of 28 days over 2007. Mr. Reiersen will receive a salary increase of 5%, effective 1/01/08 increasing his full-time salary to $325,500. In return for the additional time bank days Mr. Reiersen will forego $35,000 of his salary. Thus salary and benefits will be as follows:

Salary - $290,500

68 time bank days

Company 401 k plan

  

  

  

Company profit sharing plan as approved by Board

Company life insurance

Supplemental life insurance

Company DBL benefits

Company dental benefits

Company car MDX or equivalent

Company holidays

Severance Pay- 6 months pay plus accrued time bank days.

Period 1/1/09-12/31/09- During this period Mr. Reiersen will work on three-day week basis with four weeks vacation. This will require 116 time bank days or an increase of 66 days over the 2007 level of pay. Mr. Reiersen's salary will increase 5% effective 1/01/09 bringing gross full time salary to $342,000. In return for the additional time bank days, Mr. Reiersen will forego $85,500 of his full-time salary. Thus salary and benefits will be as follows:

Salary $256,500 per annum

116 time bank days

Company 401k plan

Company profit sharing plan as approved by Board

Company life insurance Supplemental life insurance Company DBL benefits

Company dental benefits

Company Car Acura MDX or equivalent

Company holidays

Severance pay- 6 months pay plus accrued time bank days.

Note: Accrued time bank days as of 12/31/09 plus any profit sharing due for 2009 profits, will be paid in 2010 by February 28, 2010.

Period 1/01/10 and subsequent years- Mr. Reiersen will receive an annual salary of $100,000 as Consultant to the Company.  Mr. Reiersen in addition to his responsibilities as a Board member will provide consulting services and other specified duties as established by the Board.  Mr. Reiersen will continue to be eligible for any employee profit sharing plan benefits established by the Board as well as participation in the Companies 401-k Plan. Should the Board decide to terminate Mr. Reiersen as Consultant of the Company, Mr. Reiersen shall receive a severance payment equal to $50% of his annual salary.

Other provisions:

	
1.  

	
Accrued time bank days are capped at 50 days.

	
2.  

	
Upon conversion of CMIC to a stock company, CMIC will become a part of the DCAP Group Inc. and Mr. Reiersen will be granted shares of DCAP stock upon such conversion, in an amount to be determined at such time.

  

  

  

	 

	
3.  

	
For the period 1/01/08- 12/31/09, should Mr. Reiersen decide to work more than a three or four day week his salary shall be adjusted accordingly.

	
4.  

	
During the term of the above employment, including service as Chairman of the Board, and for a five-year period subsequent to termination of his employment, Mr. Reiersen shall not obtain employment or provide consulting services to any competitor or potential competitor of CMIC or its successor companies. Mr. Reiersen is forever precluded from assisting any other insurers in writing CMIC's unique product lines or in utilizing its unique underwriting or claims procedures. During the course of his employment and for a five-year period subsequent to his employment, Mr. Reiersen will be required to obtain written approval from the Board for any employment or consulting services to be provided to any other insurance company.

The above contract is agreed to by both parties to be effective on November 13, 2006.

 

 

                       

 

/s/ John D. Reiersen               /s/ Barry B. Goldstein  

John D. Reiersen                                                                Barry B. Goldstein

President & CEO                                                                Chairman of the Board

Commercial Mutual                                                            Commercial Mutual

Dated: September 13, 2006                                                Dated: September 13, 2006ex10t.htm

AMENDMENT NO. 1, dated as of January 25, 2008 (the “Amendment”), to EMPLOYMENT CONTRACT BETWEEN COMMERCIAL MUTUAL INSURANCE COMPANY and SUCCESSOR COMPANIES AND JOHN D. REIERSEN, dated as of September 13, 2006 (the “Agreement”).

RECITALS

WHEREAS, Commercial Mutual Insurance Company (the “Company”) and John D. Reiersen (the “Employee”) have entered into the Agreement which sets forth the terms and conditions upon which the Employee is employed by the Company and upon which the Company compensates the Employee.

WHEREAS, the Company and the Employee desire to amend the Agreement in certain respects.

NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties, intending to be legally bound, hereby agree that, notwithstanding anything in the Agreement to the contrary:

1. The Employee’s employment may be terminated by the Company at any time with or without cause upon written notice by the Company to the Employee to such effect.  In the event of termination by the Company, the Employee will be entitled to severance as provided for in the Agreement, payable in accordance with the Company’s standard payroll policies.

2. The Employee’s title as President and CEO of the Company beyond the next annual meeting of the Board of Directors of the Company (the “Board”) (the “Next Annual Board Meeting”) is subject to the approval by the Board of such titles at such Next Annual Board Meeting.

3. The Employee’s service as a director of the Company is subject to the right of the policyholders to elect and remove directors pursuant to applicable law and the Company’s by-laws.

4. All references in the Agreement to the Employee serving as a consultant are deleted.  Accordingly, effective January 1, 2010, the Employee will serve as an employee of the Company and will provide employment services, including, without limitation, services relating to strategic planning, regulatory compliance, reinsurance, industry relations, product development and auditing, and other specified duties as established by the Board, subject to the right to the Company to terminate his employment with or without cause and the obligation to pay severance, as provided for in the Agreement, payable in accordance with the Company’s standard payroll policies.

5. Except as amended hereby, the Agreement shall continue in full force and effect in accordance with its terms.

  

  

  

IN WITNESS WHEREOF, the Company and the Employee have executed this Amendment as of the date first above written.

COMMERCIAL MUTUAL INSURANCE COMPANY

 

By: /s/Barry Goldstein

Barry Goldstein, Chairman of the Board

 

 

/s/ John D. Reiersen

John D. Reiersen

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