Exhibit 10(t)
Between
GLATFELTER VERWALTUNGSGESELLSCHAFT MBH,
hereby represented by its sole proprietor,
____________________________________________________,
hereby represented by
____________________________________________________
and
Mr
MARTIN RAPP
the following
RETIREMENT PENSION CONTRACT
is concluded.
I. RETIREMENT PENSION PROVISION
1. As Managing Director of Glatfelter Verwaltungsgesellschaft mbH Mr Martin
Rapp acquires benefit entitlements according to this agreement.
2. Benefits become due without fail
2.1. on Mr Martin Rapp's 65th birthday;
2.2. should Mr Martin Rapp become permanently incapable to work before that
date, either alleged by himself or by Glatfelter
Verwaltungsgesellschaft mbH and supported by a medical referee's
doctor's certificate;
2.3. upon Mr Martin Rapp's death with regard to his surviving dependants'
entitlements to widow's and orphan's benefits;
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3. Should Glatfelter Verwaltungsgesellschaft mbH terminate the employment
(ordinary or extraordinary dismissal) for reasons other than breach of
trust of contractual obligation by Mr Martin Rapp himself, he will, after
his 65th birthday, receive benefit payments, arising from this agreement
and calculated on the basis of benefit entitlements accrued up to
termination of employment. The value of these entitlements depends on
Section 2 of the Company Pension Law.
4. If Mr Martin Rapp's employment with Glatfelter Verwaltungsgesellschaft mbH
ceases for other reasons or upon completion of the vesting periods before
his 65th birthday, he retains any benefit entitlements arising from this
retirement pension provision accrued up to that date in accordance with
Company Pension Law regulations.
In this case benefit payments based on entitlements accrued up to
termination of employment become due after his 65th birthday, or should Mr
Martin Rapp become permanently incapable of working, or upon his death with
regard to widow's and orphan's benefits.
Vesting periods are deemed completed on 31/07/2007.
5. From his 60th birthday, Mr Martin Rapp is entitled to receive early
retirement benefit in the form of a reduced old-age pension. To this end
the attained retirement benefit according to II.1 (below) is reduced by
2.5% for each year by which the start of pension payments is brought
forward. Any started years count pro-rata.
II. BENEFIT PAYMENTS
1. From his 65th birthday or in case of permanent incapacity Mr Martin Rapp
receives an annual (old-age) pension payment of 1.5% per year of service of
his average pensionable income paid over the last 5 years. Pensionable are
his gross salary according to Section ......... as well as any bonus
payments/variable pay paid in the respective 12-months period in accordance
with the ,,Variable Pay Plan" as per Section ..... of the Managing
Director's Employment Contract. The retirement pension percentage also
applies to any pre-service periods from 01/08/2002. Any started years count
pro rata temporis.
2. In case of Mr Martin Rapp's death, provided the marriage had existed for at
least 5 years prior to the claim date, his widow receives 60% of the
retirement pension Mr Martin Rapp was paid or, in case of death before the
retirement date, would have received if he had been incapable to work.
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3. In case of Mr Martin Rapp's death his legitimate children and any of his
children of equivalent legal status receive the following orphan's benefit
until their 18th birthday:
3.1. If the mother is alive and was entitled to receive widow's benefit at
her husband's death, each child receives 20 % of the widow's benefit.
However, the amount of benefit paid to the widow and children shall
not exceed the amount of benefit Mr Martin Rapp would have received.
3.2. If the mother is no longer alive or was not entitled to receive
widow's benefit at her husband's death, each child receives 33 1/3 %
of the widow's benefit. However, the combined amount shall not exceed
60 % of the benefit Mr Martin Rapp would have received.
3.3. If, at 18, any legitimate children are still in further education or
undertaking vocational training, orphan's benefit will continue to be
paid until their 24th birthday, provided the child's income from the
age of 18 does not exceed the amount of the intended orphan's benefit.
4. Any increase in benefits after pension payments have become due is subject
to the legal regulations and any arising company pension law specific
legislation.
Benefits paid under the state pension scheme or an exempting private life
insurance cannot be offset against these benefit payments.
5. In case of a divorce settlement in accordance with Sections 1587 f BGB
(German Civil Code) calculations will be based on the same benefits as
would have been payable had the divorce settlement not taken place. The
divorce settlement is deemed non-existent if it would entail an increase in
company pension provisions.
In case of a lawful extension of the divorce settlement in accordance with
Section 3a of the German Law for the Regulation of Hardship Cases in
Divorce Settlements (VersorgAusglHarteG) the amount of benefit paid to the
surviving widow will be reduced in accordance with Section 3a para. 4 of
the VersorgAusglHarteG by the value of compensation benefit in accordance
with Section 3a para. 1 of the VersorgAusglHarteG, which is paid to or
payable to the divorced (former) wife.
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III. MATURITY OF BENEFIT PAYMENTS
1. The entitlement to receive benefit payments starts in the month after any
payments became due, at the earliest upon termination of the employment
contract and a twelfth of the amount specified in II. is payable on the
15th day of each month.
2. The entitlement is suspended as long as a claim to salary or salary
compensation payments exists and the salary continues to be paid as death
benefit.
3. Payment of benefit ends at the end of the month in which the respective
beneficiary dies or in which the other conditions for receipt of benefit
payment become void.
IV. EXTINCTION OF BENEFIT ENTITLEMENTS
Any entitlements to benefit provision arising from this contract become extinct,
1. if Mr Martin Rapp caused his incapacity to work either deliberately or
through gross negligence;
2. if Glatfelter Verwaltungsgesellschaft mbH would be entitled to terminate
the service provisions without notice for an important reason constituting
breach of duty of good faith caused by the respective beneficiary;
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3. if the respective beneficiary would act against the interests of Glatfelter
Verwaltungsgesellschaft mbH or against the interests of associated
companies including the KG to such an extent, that it would in the case of
an existing service provision entitle the company concerned to terminate
the service provision without notice for an important reason constituting a
breach of duty of good faith;
4. If the widow remarries. In this case the widow is only entitled to receive
widow's benefit for three months following her remarriage.
This clause does not affect the orphans' benefit provision regulations.
V. DUTY OF DISCLOSURE
1. Any respective beneficiary has the duty to inform Glatfelter
Verwaltungsgesellschaft mbH of any change that impacts on the contractual
obligations of the Glatfelter Verwaltungsgesellschaft mbH. If necessary,
relevant valid proof of personal status must be provided.
2. Any respective beneficiary has the duty to repay possible benefit
overpayments of any kind to the Glatfelter Verwaltungsgesellschaft mbH,
including any demands arising from submission of incorrect tax returns,
social security payments or similar, even if there was no personal gain.
VI. FINAL CLAUSES
1. This contract comes into force upon signature. There are no other verbal
agreements.
2. Changes and additions to this contract have to be made in writing.
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3. Part invalidity of this contract does not affect the remaining contractual
clauses.
4. A court of arbitration at the seat of the Glatfelter
Verwaltungsgesellschaft mbH will decide any disputes arising from this
contract including its validity and interpretation. The judge's decision is
final. To this end a separate arbitration agreement will be made.
York, PA USA Gernsbach
Place, Date: February 5, 2008 Place, Date: 31-01-2008
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/s/ Dante C. Parrini /s/ Martin Rapp
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Glatfelter Verwaltungsgesellschaft mbH Martin Rapp
represented by its shareholder/partner,
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by: Dante C. Parrini