Advanta Corp. Supplemental Executive Retirement Plan for Dennis Alter
Advanta Corp. established a Supplemental Executive Retirement Plan (SERP) for Dennis Alter, its Chairman and CEO, to provide him with an annual retirement benefit of $625,000 upon reaching age 70, covering both his and his spouse's lifetimes. The benefit vests over eight years starting in 2005, but becomes fully vested and immediately payable if Mr. Alter dies, becomes disabled, or if there is a change in control of the company. In the event of a change in control, he is also entitled to reimbursement for any excise taxes incurred.
Exhibit 10 - e
Summary of Advanta Corp. Supplemental Executive Retirement Plan
On February 11, 2005, the Compensation Committee of the Board of Directors of Advanta Corp. and the Board of Directors approved and established the Advanta Corp. Supplemental Executive Retirement Plan (the “SERP”). The SERP was established in order to provide Dennis Alter, Chairman and Chief Executive Officer, with certain retirement benefits in recognition of his more than 45 years of service to the Company. Subject to the vesting requirements described below, under the terms of the SERP, Mr. Alter will be entitled to an annual retirement benefit of $625,000 upon reaching age 70 for his and his spouse’s lives. The amount payable was determined based on a percentage of Mr. Alter’s 2001 base salary and target bonus. The annual benefit vests ratably over an eight year period beginning in 2005. In the event of death, disability or a change in control, as defined in the SERP, the annual benefit will become fully vested and immediately payable. In the event of a change in control, Mr. Alter is also entitled to receive a gross up for excise taxes that arise and for the reimbursement for such taxes.
