First Amendment to Confirmatory Split Dollar Agreement No. 2 between Nortek, Inc. and Richard L. Bready

Summary

This amendment updates a prior agreement between Nortek, Inc. and employee Richard L. Bready regarding a life insurance policy. The amendment clarifies that Mr. Bready remains the policy owner but affirms Nortek’s rights to borrow against the policy and recover its interest if the agreement ends. It also specifies what happens if the policy is sold or transferred, and limits each party’s recovery rights if the agreement terminates. Both parties signed the amendment on September 15, 1997.

EX-10.6 8 0008.txt EXHIBIT 10.6 CONFIRMATORY SPLIT DOLLAR AGREEMENT NO. 2 First Amendment Pursuant to the provisions of Section 10 of Confirmatory Split Dollar Agreement No. 2 entered into as of December 31, 1996 by and between Nortek, Inc., a Delaware corporation having a principal place of business in Providence, Rhode Island (the "Corporation"), and Richard L. Bready, of said Providence (the "Employee"), the Corporation and the Employee hereby amend the Agreement by changing Sections 2 and 3 to read as follows: "2. The Employee shall continue to be the owner of the Policy and, except to the extent of (a) the Corporation's Interest in the Policy as provided herein or, if greater, (b) the Corporation's actual borrowings against the Policy as permitted under paragraph (a) of Section 3 below, shall have and may exercise all the rights of a policy owner, including but not limited to the right to designate the beneficiaries, select settlement options, borrow on the security of the Policy and surrender the Policy. Dividends shall not be applied to the payment of premiums unless otherwise agreed by the Corporation and the Employee. 3. The Employee hereby affirms his assignment to the Corporation of the following limited ownership rights in the Policy: (a) The right to obtain one or more loans or advances on the Policy to the full extent that loans are permitted under the terms of the Policy, even if the amount of such loans or advances exceeds the Corporation's Interest in the Policy (determined without reduction for outstanding indebtedness). (b) The right upon termination of this Agreement to realize against the cash value of the Policy or the death proceeds payable under the terms of the Policy, as the case may be, the Corporation's Interest in the Policy. For purposes of this subparagraph, the sale, surrender, or transfer of ownership of the Policy by the Employee or his assignee shall be deemed a termination of the Agreement unless consented to by the Corporation. If this Agreement terminates during the Employee's lifetime, the Corporation shall have no right of recovery against the Employee or his assignee in excess of the then cash value of the Policy. Whenever the Agreement terminates, the Employee or his assignee shall have no right of recovery against the Corporation with respect to the excess of the then outstanding loans or advances on the Policy over the Corporation's Interest in the Policy (determined without reduction for outstanding indebtedness). The Employee shall upon execution of this Agreement simultaneously execute a confirmatory collateral assignment securing the Corporation's rights under the terms of this Agreement." SIGNED and SEALED in two original counterparts this 15th day of September, 1997. NORTEK, INC. By: /s/Kevin W. Donnelly Its: Vice President, duly authorized /s/ Richard L. Bready Richard L. Bready