EXHIBIT 10.5
AMENDED AND RESTATED
WESBANCO BANK, INC.
SALARY CONTINUATION AGREEMENT
[WITH CHANGE IN CONTROL PROVISION]
THIS AMENDED AND RESTATED SALARY CONTINUATION
AGREEMENT is made
this _____ day of _________, 2005, by and between
WESBANCOBANK, INC. , a
state-chartered commercial bank located in Wheeling, West Virginia
(the "Company") and {NAME} (the
"Executive").
WITNESSETH
WHEREAS, the parties had entered into a Salary
Continuation Agreement dated [Date] , to encourage
the Executive to remain an employee of the Company, under which the
Company was willing to provide salary continuation benefits to the
Executive from its general assets under certain
circumstances;
WHEREAS, the parties intend here by to conform
the Salary Continuation Agreement with the Section 409A of the Code
(as defined herein) and guidance issued thereunder and to restate
the Salary Continuation Agreement to include both the conforming
changes for the Section 409A and the amendment.
The Executive and the Company agree as
follows:
Article
1
Definitions
Whenever used in this Agreement, the following
words and phrases shall have the meanings specified:
1.1 "Change of Control Event" shall be
deemed to have occurred as of the first day that any one or more of
the following conditions shall have been satisfied, followed by
Termination of Employment within the time period hereinafter
specified:
(a) Final regulatory approval is obtained for any
Person (other than those Persons in control of the Company as of
the Effective Date, or other than a trustee or other fiduciary
holding securities under an employee benefit plan of the Company or
a corporation owned directly or indirectly by the stockholders of
the Company in substantially the same proportions as their
ownership of stock of the Company), becomes the Beneficial Owner,
directly or indirectly, or securities of the Company representing
thirty five percent (35%) or more of the combined voting power of
the Company's then outstanding securities; or
(b) During any period of two (2) consecutive years
(not including any period prior to the execution of this
Agreement), individuals who at the beginning of such period
constitute the Board of the Company (and any new Director, whose
election by the Company's stockholders was approved by a vote of at
least two-thirds (2/3) of the Directors then still in office who
either were Directors at the beginning of the period or whose
election or nomination for election was so approved), cease for any
reason to constitute a majority thereof; or
(c) Final regulatory approval is obtained with
respect to: (A) a plan of complete liquidation of the Company; or
(B) an agreement for the sale or disposition of all or
substantially all the Company's assets; or (C) a merger,
consolidation, or reorganization of the Company with or involving
any other corporation, other than a merger, consolidation, or
reorganization that would result in the voting securities of the
Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity), at least fifty
percent (50%) of the combined voting power of the voting securities
of the Company (or such surviving entity) outstanding immediately
after such merger, consolidation, or reorganization.
However, in no
event shall a Change in Control Event be deemed to have occurred,
with respect to the Executive, if the Executive is part of a
purchasing group which consummates the Change in Control Event
transaction. The Executive shall be deemed "part of a purchasing
group" for purposes of the preceding sentence if the Executive is
an equity participant in the purchasing company or group (except
for: (i) passive ownership of less than three percent (3%) of the
stock of the purchasing company; or (ii) ownership of equity
participation in the purchasing company or group which is otherwise
not significant, as determined prior to the Change in Control Event
by a majority of the non-employee continuing Directors of the
Company, as applicable).
The occurrence
of a Change in Control Event as defined above shall also then be
followed within three (3) years by the Executive's Termination of
Employment for reasons other than death, Disability or
retirement.
Notwithstanding
the foregoing, no event or combination of events shall constitute a
Change in Control Event if and to the extent that event or
combination of events would not constitute a Change in Control
Event under Section 409A of the Code or the guidance published
thereunder as then in effect.
1.2
"Code" means the Internal Revenue Code of 1986, as
amended.
1.3 "Disability" means, if the
Executive is covered by a Company sponsored disability policy,
total disability as defined in such policy without regard to any
waiting period. If the Executive is not covered by such a policy,
Disability means the Executive suffering a sickness, accident or
injury which, in the judgment of a physician satisfactory to the
Company, prevents the Executive from performing substantially all
of the Executive's normal duties for the Company. As a condition to
receiving any Disability benefits, the Company may require the
Executive to submit to such physical or mental evaluations and
tests as the Company's Board of Directors deems appropriate.
Nothwithstanding the foregoing, in any case in which Section 409A
may apply, a Disability will not be deemed to occur
unless the
Executive is unable to engage in substantial gainful activity for a
period of 12 months due to a medically determinable physical or
mental impairment or, due to such impairment, is receiving
disability benefits for a period of three months under a plan
provided by the company to its employees.
1.4 "Early Terminationæ means the
Termination of Employment before Normal Retirement Age for reasons
other than death, Disability, Termination for Cause or following a
Change in Control Event.
1.5 "Early Termination Date" means the
month, day and year in which Early Termination occurs.
1.6 "Effective Date" means
[Date] , for the initial Salary Continuation
Agreement and the _____ day of _________, 2005 for this Amended and
Restated Salary Continuation Agreement.
1.7 "Normal
Retirement Age" means the Executive's 65th
birthday.
1.8 "Normal Retirement Date" means the
later of the Normal Retirement Age or Termination of
Employment.
1.9 "Plan Year" means a twelve-month
period commencing on [anniversary of initial
agreement ] and ending on [day before the
anniversary] of each year. The initial Plan Year shall
commence on the effective date of this Agreement.
1.10 "Salary" means the annual
remuneration the Executive receives as base salary, but before
deductions authorized by the Executive or required by law to be
withheld from the Executive by the Company such as income taxes or
Social Security taxes.
1.11
"Termination for Cause" See Section 5.2.
1.12 "Termination of Employment" means
that the Executive ceases to be employed by the Company for any
reason whatsoever other than by reason of a leave of absence, which
is approved by the Company. For purposes of this Agreement, if
there is a dispute over the employment status of the Executive or
the date of the Executive's Termination of Employment, the Company
shall have the sole and absolute right to decide the
dispute.
Article
2
Lifetime
Benefits
2.1 Normal Retirement Benefit. Upon
Termination of Employment on or after the Normal Retirement Age for
reasons other than death, the Company shall pay to the Executive
the benefit described in this Section 2.1 in lieu of any other
benefit under this Agreement.
2.1.1. Amount of Benefit. The annual
benefit under this Section 2.1 is (_________ Thousand
________ Hundred ______Dollars ).
2.1.2 Payment of Benefit. The Company
shall pay the annual benefit to the Executive in 12 equal monthly
installments payable on the first day of each month commencing with
the month following the Executive's Normal Retirement Date. The
annual benefit shall be paid to the Executive for 10
years.
3
2.2 Early Termination/Retirement
Benefit. Upon Early Termination/Retirement, the Company shall
pay to the Executive the benefit described in this Section 2.2 in
lieu of any other benefit under this Agreement.
2.2.1 Amount of Benefit. The benefit
under this Section 2.2 is the Early Termination/Retirement Annual.
Benefit set forth in Schedule A for the Plan Year ending
immediately prior to the Termination of Employment, determined by
vesting the Executive in 100 percent of the Accrual Balance. Any
increase in the annual benefit under Section 2.1.1 shall require
the recalculatio