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SALARY CONTINUATION AGREEMENT
This Agreement entered into this __th day of ____, between Motor Cargo, a
corporation having its principal place of business at North Salt Lake, Utah,
(hereinafter called the "Company"); and _________________ (hereinafter called
"Executive").
WITNESSETH:
WHEREAS, Executive has been employed by the Company since April 1, 1987, in the
capacity of ____________________________ and by reason hereof has acquired
experience and knowledge of considerable value to the Company; and
WHEREAS, the Company wishes to offer an inducement to Executive to remain in its
employ by compensating him beyond his regular salary for services which he has
rendered or will hereafter render; and
WHEREAS, Executive is willing to continue in the employ of the Company until his
retirement;
NOW THEREFORE, it is mutually agreed as follows:
1) The Company hereby employs Executive in the capacity of ______________ of
Operations, commencing with the date of this Agreement, and Executive hereby
accepts such employment, the conditions of which are hereinafter set forth in
this Agreement.
2) As compensation for his services the Company hereby agrees to pay Executive,
and Executive hereby agrees to accept from the Company, a yearly salary to be
determined by the Board of Directors of the Company.
3) If Executive remains in the continuous employ of the Company, he shall retire
from active employment with the Company on the first day of the calendar
month following the month in
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which he reaches age sixty-five (65), unless by action of the Board of
Directors his period of active employment shall be shortened or extended.
4) Upon said retirement the Company, commencing with the first day of the month
following the date of such retirement, shall pay Executive the sum of $17,000
per annum. No payments shall be made to Executive during his lifetime until
the first day of the calendar month following the month in which Executive
reaches age sixty-five (65). Payments of the sum specified shall be made in
120 equal monthly payments.
Notwithstanding the above, should Executive's employment terminate before
retirement for any reason (except for death or disability which is covered in
paragraphs five (5) and six (6) below) the Corporation agrees to pay to
Executive the actuarial equivalent of the sum of $17,000 per year for every
year Executive was employed under this Agreement. This payment is to be made
in monthly payments commencing on the first month after which Executive's
employment terminates. The actuarial equivalent shall be calculated assuming
a pay-out period of 120 months.
5) In the event the Executive should die prior to attaining age sixty-five (65),
the Company agrees to pay the Executive's said wife and/or to such other
persons as the Executive may have designated, the sum of $201,000. Said
payments shall commence on the first day of the month following Executive's
death and shall be made in 120 equal monthly installments until Executive's
designated beneficiary has received the sum total to which he was entitled
under the terms of this paragraph.
6) The Company agrees that if Executive, prior to attaining age sixty-five (65)
becomes totally disabled as the result of bodily injury or disease so that he
is prevented, thereby, from engaging in any business or occupation and
performing any work for compensation, the
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Company will pay to the Executive the sum of $2,500.00 per month to age
sixty-five (65). In the event Executive shall become disabled prior to June
8, 1992; the Retirement benefit, defined in paragraph four (4) of this
contract, shall be specified as $1,675.00 for 60 months. Retirement benefit
shall commence on the first day of the month following the date of
Executive's sixty-fifth (65th) birthday. Said disability payments shall
commence on the first day of the month following notification that such
disability has continued uninterrupted for a period of three (3) months, and
said payment shall be $2,500.00 as equal monthly installments until Executive
has received the sum total to which he was by contract entitled under the
terms of this paragraph.
7) In the event Executive should die while receiving payments under paragraphs
four (4) or six (6) above, the Company shall continue such payments to the
Executive's wife and/or to such other persons as the Executive may have
designated.
8) The benefits provided hereunder shall be in addition to Executive's annual
salary as determined by the Board of Directors of the Company and shall not
affect the right of Executive to participate in any current of future Company
Retirement Plan or in any supplemental compensation arrangement which
constitutes a part of the Company's regular compensation structure.
9) It is agreed that neither Executive, nor his wife, nor any other designee,
shall have any right to sell, assign, transfer or otherwise convey the right
to receive any payments hereunder which payments and the right thereto are
expressly declared to be nonassignable and nontransferable; and, in the event
of any attempted assignment or transfer, the Company shall have no further
liability hereunder.
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10) If the Company shall acquire an insurance policy or annuity contract or any
other asset in connection with the liabilities assumed by it hereunder it is
expressly understood and agreed that neither Executive nor any beneficiary
of Executive 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 Executive or his
beneficiaries or to be held in any way as collateral security for the
fulfillment of the obligations of the Company under this Agreement except as
may be expressly provided by the terms of such policy or title to such other
asset. It shall be and remain a general, unpledged, unrestricted asset of
the Company.
11) The Company agrees that it will not merge or consolidate with any other
company or organization, or permit its business activities to be taken over
by any other organization unless and until the succeeding or continuing
company or other organization shall expressly assume all obligations and
liabilities herein set forth.
12) This Agreement may be revoked or amended in whole or in part by a writing
signed by both of the parties hereto.
IN WITNESS WHEREOF, the Company has caused this Agreement to be signed in its
Corporation Name by its duly authorized officer, and impressed with its
corporate seal, attested
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by its Secretary, and Executive has hereunto set his hand and seal, all on the
day and year first above written.
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MOTOR CARGO
(SEAL)
ATTEST
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Secretary
Executive
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