Letter Agreement Regarding Post-Termination Insurance Annuity Policy between Advanta Corp. and Jeffrey D. Beck
This agreement between Advanta Corp. and Jeffrey D. Beck states that if Beck's employment with Advanta ends, the company will provide him with an insurance annuity policy paying three times his annual base salary, distributed in equal payments over 36 months. Beck must cover the required tax withholdings either by providing cash to Advanta or by having the policy amount reduced to cover the taxes. This letter represents the full understanding between the parties regarding these post-termination payments.
Exhibit 10.1
Letter Agreement, dated as of October 14, 2003, between Advanta Corp.
and Jeffrey D. Beck
Advanta
Corporation
Welsh & McKean Roads
P.O. Box 844
Spring House, PA ###-###-####
William A. Rosoff
President & Vice Chairman
Of the Board of Directors
215 ###-###-####
Fax ###-###-####
E-mail: ***@***
Personal and Confidential
October 14, 2003
Mr. Jeffrey D. Beck
3160 East Old Ridge Circle
Salt Lake City, UT 84121
Dear Jeff:
This will confirm that in the event that your employment with Advanta terminates, Advanta will provide you with an insurance annuity policy that will pay you three times your annual base salary at the time of such termination in equal payments over 36 months after the termination. You will provide the Company with the cash to pay the applicable Federal, State and local withholding taxes contemporaneously with receiving the annuity policy. Alternatively, you can pay the withholding tax by asking Advanta to supply the withholding taxes on your behalf and reducing the annuity policy provided to you commensurately, i.e., you would receive an annuity policy that would cost the amount of the full policy described above, less the cash needed to pay the withholding taxes.
This arrangement represents the entire understanding between us relating to the subject matter of the letter (i.e., payments to be made by Advanta in the event your employment with Advanta terminates).
Sincerely,
/s/ William A. Rosoff
Agreement acknowledged
this 14 day of October, 2003.
/s/ Jeffrey D. Beck
Jeffrey D. Beck
