EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT made as of this day of June, 2000 between
United Bank of Philadelphia, a bank organized and incorporated under the laws of
the Commonwealth of Pennsylvania, with offices at 300 North Third Street,
Philadelphia, Pennsylvania 19106 (the "Bank") and Brenda Hudson-Nelson (the
"Employee").
WITNESSETH:
WHEREAS, the Bank is a Pennsylvania bank, incorporated on September 17,
1990 as a Pennsylvania-chartered commercial bank; and
WHEREAS, the Bank would like to employ the Employee as Senior Vice
President and Chief Financial Officer of the Bank; and
WHEREAS, the parties desire to provide for such employment of the
Employee in accordance with the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the premises contained herein and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto, intending to be legally bound hereby,
agree as follows:
EMPLOYMENT AGREEMENT WITH
BRENDA HUDSON-NELSON
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1. Duties and Term.
a. The Bank hereby employs the Employee to serve in the capacity of
Senior Vice President and Chief Financial Officer of the Bank and, in
such capacity, to be responsible for the financial and operational
matters of the Bank as are consistent with her title. Employee will be
responsible for conducting such additional activities as will promote
the profitability and growth of the Bank or as shall be assigned by
the President of the Board of Directors. The Employee agrees to be so
employed by Bank and shall devote her best efforts and all of her
business time to the performance of her duties hereunder.
b. The term of the Employee's employment hereunder shall commence upon
the date of the execution of this Agreement and shall continue until
the second anniversary of this date (the "Original Term"); provided,
however, that employment may be terminated earlier in the event that:
(i) any governmental or other approvals necessary for the Employee to
fill this role cannot be obtained or (ii) the Bank terminates the
Employee pursuant to Paragraph 4 of this Agreement.
c. This Agreement shall be subject to renewal upon agreement of the
parties at any time during the Original Term (any period of employment
after the Original Term shall be referred to as a "Renewal Term."
EMPLOYMENT AGREEMENT WITH
BRENDA HUDSON-NELSON
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2. Compensation.
a. Salary. During the first year of the Original Term, the Bank shall pay
the Employee an annual salary of $100,000 payable in equal bi-weekly
installments or as the parties otherwise agree. Thereafter the
Employee's annual salary shall be such as is mutually determined by
the Employee and the Board of Directors of the Bank, but in no event
shall be less than the Employee's salary during the previous year of
the Original Term. The Employee's annual salary during any Renewal
Term shall be the subject of mutual agreement between the Employee and
the Bank but shall not be less than the Employee's salary during the
previous year of the Employment Term.
b. Additional Compensation. The Employee shall have the opportunity to
receive an annual cash bonus (the "Annual Bonus"), which shall be
divided into two tiers: the initial cash bonus (the "Initial Cash
Bonus"), equal up to 12% of the Employee's Base Salary, and the
additional cash bonus (the "Additional Cash Bonus"), which shall be
equal to 12% of the Employee's Base Salary. Both the Initial Cash
Bonus and the Additional Cash Bonus shall be based upon separate
financial performance targets for each fiscal year, or, in the case of
the 2000 fiscal year, the last six months of operation (the
"Performance Targets"). The Performance Targets shall be determined as
follows:
EMPLOYMENT AGREEMENT WITH
BRENDA HUDSON-NELSON
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(i) The target financial performance on which the Employee's Initial
Cash Bonus will be based (the "Initial Cash Bonus Target") shall
be equal to the annual EBITDA target for the Bank for that fiscal
year as set forth in the Bank's budget. However, for the 2000
fiscal year, the Initial Cash Bonus Target shall be break-even
for the last six months of the fiscal year.
(ii) The target financial performance on which the Employee's
Additional Cash Bonus will be based (the "Additional Cash Bonus
Target") shall be equal to the sum of (x) the Initial Cash Bonus
Target and (y) the product of the Initial Cash Bonus Target
multiplied by 8 percent. However, the Additional Cash Bonus
Target for 2000 shall be the target EBITDA of the Bank as set
forth in the Bank's budget.
c. Fringe benefits. During the Employment Term, the Bank, at its expense,
shall provide to the Employee health, disability, life and other
insurance benefits. During the Employment Term, the Employee shall be
entitled to receive benefits under employee benefit, retirement,
pension profit-sharing, deferred compensation, long-term incentive,
stock option, restricted stock, phantom stock or other similar plans
that may be established at the sole discretion of the Board of
Directors of the Bank.
EMPLOYMENT AGREEMENT WITH
BRENDA HUDSON-NELSON
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d. Insurance. The Employee shall be a beneficiary of the Bank's group
health and disability insurance. During the period of employment, the
Bank, at its sole expense, will provide the Employee with term life
insurance coverage in the amount of two times the salary identified in
Section 2(a) hereof. The policy shall be owned by the Employee who
shall have all incidents of ownership of the policy, including,
without limitation, the right to name the beneficiary thereof.
e. Vacation. During each calendar year during the Employment Term, the
Employee shall be entitled to take four weeks vacation at such times
as the Employee and the Bank mutually agree. Such agreement shall not
be unreasonably with-held. Employees vacation shall vest according to
vesting schedule contained in the Bank's Employee manual.
f. Reimbursement of Expenses. The Employee shall be reimbursed for all
items of travel, entertainment and other expense reasonably incurred
by her on behalf of the Bank upon presentation to the Bank of vouchers
representing such items of expense. Such expenses shall include the
cost of leasing an automobile for the Employee and the cost of
insurance on such automobile up to a maximum amount of $500 per month.
g. Entire Compensation. The compensation provided for herein, and any
additional compensation made available to the Employee in the
discretion of the Board of Directors of the Bank, is in full payment
of the services to be rendered by the Employee to the Bank.
3. Death or Total Disability of the Employee.
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a. Death. In the event of the death of the Employee during the Employment
Term, this Agreement shall terminate effective as of the date of the
Employee's death, and the Bank shall not have any further obligations
or liability hereunder, except as set forth in Section 5 hereof.
b. Total Disability. In the event of the Total Disability, as that term
is defined in this Section 3(b), of the Employee for a period of 90
consecutive days during the Employment Term, the Bank shall have the
right to terminate the Employee's employment hereunder after such 90
consecutive days of Total Disability by giving the Employee 30 days'
written notice thereof and, upon expiration of such 30-day period,
this Agreement shall terminate and the Bank shall not have any further
obligations or liability hereunder, except as set forth in Section 5
hereof. The Term "Total Disability", as used in this Section 3(b),
shall mean a mental, emotional or physical injury, illness or
incapacity which, in the reasonable opinion of the Bank, renders the
Employee unable to perform the principal duties, functions and
responsibilities required of him hereunder.
4. Discharge for Cause. The Bank may immediately discharge the Employee and
terminate her employment hereunder for the following reasons: (i) habitual
intoxication; (ii) drug addiction; (iii) conviction of a felony during the
Employment Term; (iv) adjudication as an incompetent or (v) the Employee's
willful breach or habitual neglect of her duties or obligations as set
forth herein. Upon receipt of such notice by the Employee, in the case of
clauses (i), (ii), (iii), and (iv) and in the case of clause (v) upon the
expiration of a 30-day cure period, this Agreement shall terminate and the
Bank shall not have any further obligations or liability hereunder, other
than as set forth in Section 5 hereof.
5. Obligations of the Bank Upon Termination. Upon Termination of this
Agreement, the Bank shall not have any further obligations or liability
hereunder, other than reimbursement of expenses pursuant to Section 2(d)
hereof, except to pay to the Employee the unpaid portion, if any, of the
Employee's salary accrued for the period up to the date of termination and
payable to the Employee pursuant to Section 2(a) hereof.
6. Amendments. Any amendment to this Agreement shall be made only by written
agreement signed by the parties hereto.
7. Construction. This Agreement shall be construed in accordance with and
governed by the laws of the Commonwealth of Pennsylvania.
8. Assignment. The rights and obligations of the Bank under this Agreement may
not be assigned by the Bank without the prior written consent of the
Employee.
9. Notices. All notices, consents and other communications to be given
hereunder shall be in writing and shall be delivered personally or sent by
certified mail, return receipt requested, postage prepaid, and addressed to
the parties at their respective addresses set forth in the first paragraph
of this Agreement. Any party may from time to time change its address for
purposes of notices to that party by notice specifying a new address, but
no change shall be deemed to have been given until it is actually received
by the party to whom the notice is being given.
IN WITNESS WHEREOF, this Agreement has been executed by the Bank and by the
Employee as of the day and year first above written.
UNITED BANK OF PHILADELPHIA
BY:
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Co-Chairman of the Board
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Brenda Hudson-Nelson
EMPLOYMENT AGREEMENT WITH
BRENDA HUDSON-NELSON
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