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Exhibit 10.22
SEVERANCE AND RELEASE OF CLAIMS AGREEMENT
This Severance and Release of Claims Agreement is made and
entered into by and between David A. Svacina ("Svacina") and
Peoples State Bank, Wausau, Wisconsin and successors and assigns
(the "Bank").
WHEREAS, Svacina is employed by the Bank pursuant to an
Employment Agreement dated January 1, 2003, and as amended on April
13, 2005 ("Employment Agreement"); and
WHEREAS, Svacina has decided to voluntarily terminate his
employment effective December 31, 2006, pursuant to Paragraph 5(c)
of the Employment Agreement; and
WHEREAS, the Bank is willing to offer Svacina severance pay and
benefits over and above what he would be entitled to under the
terms of the Employment Agreement, the Bank’s employment
policies, and/or applicable laws in exchange for a complete and
full release of claims;
NOW, THEREFORE, in consideration of the premises and the mutual
promises herein contained, it is agreed as follows:
1.
No Liability . The Bank and Svacina agree that
neither the negotiation or the signing of this Agreement
constitutes an admission by the Bank that it has acted wrongfully
with respect to Svacina or any other person or that Svacina has any
rights whatsoever against the Bank. The Bank specifically
disclaims any liability to, or wrongful acts against, Svacina or
any other person, on the part of itself, its directors, officers,
employees, and agents and Svacina disclaims any liability to, or
wrongful or unlawful conduct against the Bank.
2.
Termination of Employment . Pursuant to paragraph
5(c) – Termination by Mr. Svacina of the
Employment Agreement, Svacina hereby submits his resignation as an
employee of the Bank effective the close of business on December
31, 2006, and the Bank hereby accepts Svacina’s voluntary
resignation.
3.
Severance Pay and Benefits .
a.
Severance Pay : As a severance benefit and as
consideration for Svacina entering into this Agreement, Svacina
shall receive severance pay totaling One Hundred Sixty-Four
Thousand One Hundred Twenty Dollars and 84/100ths ($164,120.84) to
be paid in fifty-two (52) equal installments of Three Thousand One
Hundred Fifty Six Dollars and 17/100ths ($3,156.17) which will be
paid by direct deposit in accordance with the Bank’s
usual
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and customary payroll practices starting on January 12, 2007,
with the final payment being made on December 26, 2008. The
severance pay
shall be reduced by applicable state and federal income and
employment taxes which the Bank is required to withhold.
b.
Health Insurance : As additional consideration to
Svacina for entering into this Agreement, the Bank agrees to allow
Svacina to continue family plan coverage under the Bank’s
group health insurance plan until Svacina reaches age 65 or until
Svacina becomes eligible for alternate coverage, whichever comes
sooner, with the Bank paying fifty percent (50%) of the premium
that is in effect for other Bank employees at the time, commencing
January 1, 2007. During the period of severance pay,
Svacina’s fifty percent (50%) contribution towards the cost
of continuation under the Bank’s group health insurance plan
shall be deducted from his severance payment. Thereafter,
Svacina shall be required to pay his fifty percent (50%) portion of
the premium that is in effect for other Bank employees at the time
directly to the Bank no later than the 15th of the month starting
in January of 2009. Should Svacina fail to make timely
payment of his portion of the premium that is in effect for other
Bank employees at the time for group health insurance continuation,
his rights and the rights of his spouse, Darlene Svacina, as
provided below, to continuation under the Bank’s group health
insurance plan shall terminate.
After Svacina reaches age 65, the Bank agrees to allow his wife,
Darlene Svacina, to elect to be covered until her 65th birthday
under a single plan under the Bank’s group health insurance
plan then in effect with Darlene Svacina paying directly to the
Bank by the 15th of each month 100% of the premium that is in
effect for other Bank employees at the time. It is further
understood that in the event that Svacina dies before he reaches
age 65, Darlene Svacina may elect to continue to be covered under
single coverage under the Bank’s group health insurance plan
from the date of Svacina’s death until Darlene Svacina
reaches age 65 with Darlene Svacina paying 100% of the premium that
is in effect for other Bank employees at the time. It is
further understood that in the event that Svacina and Darlene
Svacina divorce before either of them reaches age 65, Darlene
Svacina’s rights under this Agreement shall terminate.
It is further understood that Darlene Svacina’s rights
shall not transfer or be assigned to Svacina’s spouse should
he remarry.
c.
Retirement Benefits : If Svacina is employed on
December 31, 2006, Svacina shall be entitled to the regular and
normal profit contribution towards his 401(k) for the year
2006 in accordance with plan documents. The Bank also agrees
that Svacina shall be entitled to any normal contributions that the
Bank will make including all earning credits
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normally credited towards his deferred compensation in
accordance with plan documents.
4.
Post Employment Consultation/Cooperation . Upon
request by the Bank, Svacina agrees to cooperate to the extent
necessary to protect the interests of the Bank and any of its
affiliates or related entities, including without limitation, by
providing the Bank with any information that Svacina may have about
the Bank’s business and its operations, providing consulting
services to the Bank, and/or by providing truthful testimony as a
witness or declarant in connection with any pending or potential
future litigation which may arise as to which Svacina may have
relevant information, with the understanding that if such services
are required after Svacina’s last day of employment, the Bank
shall pay him an hourly rate of fifty-five dollars and 70/100ths
($55.70) per hour for such services and reimburse Svacina for
reasonable expenses i
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