William Penn Life, 1970 (5. évfolyam, 1-4. szám)

1970-08-01 / 3. szám

OFFICIAL NOTICE

TO: ALL WILLAM PENN MEMBERS

RE: WILLIAM PENN-AMERICAN LIFE MERGER AGREEMENT

Following these explanatory details we print the text of the William Penn-American Life Merger Agreement.

1. The Merger Agreement was approved and accepted unanimously by the Boards of Directors of the two Societies.

2. The Merger Agreement has been submitted to the Insurance Departments of the Commonwealth of Pennsylvania and the State of Connecticut. No action can be taken by the Insurance Commissioners until notice has been given to the members and approval by the Convention Delegate®.

3. The Merger Agreement will become effective after it has been approved by % majority vote of the delegates and approval by the Insurance Commissioners of the State of Connecticut and Commonwealth of Pennsylvania.

In connection with the provisions of this Agreement, we would like to emphasize the following:

a) The Litigation in Ohio has not yet terminated, but the Appeals Court has decided that the American Life assets belong to its members. This merger is considered essential to success so that the William Penn can become a direct party in the Litigation succeeding to the rights of the American Life Insurance Association.

b) The assets and liabilities of the two Associations will be blended and merged and the William Penn becomes the surviving corporation.

c) The William Penn agrees to enroll as a member every American Life Member who files the necessary application

with the William Penn and pays the required premium.

d) Upon approval by the Insurance Departments of the Merger Agreement the American Life Board is designated as an Advisory Board to the William Penn, representing the American Life Membership to serve until the next William Penn Convention in 1971.

e) The agreement also provides that William Penn will be reimbursed for its expenditures, including all costs of litigation.

f) Upon approval of the Merger Agreement and acquisition of the American Fund through a final court order, two members of the American Life Advisory Board, representing the former members of American Life, will be seated as William Penn Board members, one to be selected by the American Life Advisory Board and one to be selected by the William Penn Board, to serve until September 1975. Mr. Segedy agrees to surrender his rights to be a William Penn Board member and by separate contract, as principle American Life officer, he has been retained to work for consummation of the merger and will be paid for his services $600.00 per month until September, 1971. The contract further provides that upon delivery of the title of the American Life assets to William Penn, and as principle surviving, retiring officer of American Life, he will receive a Lifetime annuity in the amount of $600.00 per month. The details of compensation were worked out with our actuary and will be paid out of the surplus of American Life assets.