Employee’s Interests Contract Clauses (12)

Employee’s Interests. 4.1. Executive: Pre-Retirement Death Benefit. Upon death of the Employee while in service to the Bank, the Employee Death Benefit under this Agreement shall be the lesser of i) three (3) times base annual salary, not to exceed $400,000, less $50,000 or ii) the Net Amount at Risk, defined as the difference between the death benefit payable upon death of the insured pursuant to a life insurance policy and the accrued cash value of the life insurance policy at the time of death of the insured. 4.2.... Executive: Post-Retirement Death Benefit. If the Employee is in service to the Bank at the time the Employee reaches age 65, upon the death of the Employee on or after age 65, the Employee Death Benefit under this Agreement shall be the lesser of i) a multiple of final base annual salary, not to exceed $400,000, or ii) the Net Amount at Risk, defined as the difference between the death benefit payable upon death of the insured pursuant to a life insurance policy and the accrued cash value of the life insurance policy at the time of death of the insured. The multiple under this paragraph 4.2 shall be: Age 65 and After 1.5 times Final Base Salary 4.3. Definitions: (a) "Normal Retirement Age" shall be Age 65. (b) "Executive" shall be an Employee who is a signatory to this Agreement and who has one or more of the titles listed as an "Executive" title on Schedule 4.5. (c) Net Amount at Risk: defined as the difference between the death benefit payable upon death of the insured pursuant to a life insurance policy and the accrued cash value of the life insurance policy at the time of death of the insured. 2 5. Beneficiary 5.1. Beneficiary Designation. The Employee's "Beneficiary Designation" shall be made in writing and delivered to the Bank in a form acceptable to the Insurers and Bank ("Beneficiary Designation Form"). Employee's designated Beneficiary may be amended by the Employee from time to time during the term of this Agreement. Upon the acceptance by the Bank of a new "Beneficiary Designation Form", all "Beneficiary Designations" previously filed shall be cancelled. The Bank shall be entitled to rely on the last "Beneficiary Designation Form" filed by the Employee and accepted by the Bank prior to the Employee's death. 5.2. Beneficiary Acknowledgement. No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Bank or its designated agent. 5.3. Facility of Payment. If the Bank determines in its discretion that a benefit is to be paid to a minor, to a person incapable of handling the disposition of that person's property, the Bank may direct payment of such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person. The Bank may require proof of incompetence, minority or guardianship as it may deep appropriate prior to distribution of the benefit. Any payment of a benefit shall be a payment for the account of the Employee and the Employee's Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Agreement for such payment amount. 5.4. No Beneficiary Designation. If the Employee dies without a valid designation of Beneficiary, or if all designated Beneficiaries predecease the Employee, then the Employee's surviving spouse shall be the designated Beneficiary. If the Employee has no surviving spouse, the benefits shall be made payable to the personal representative of the Employee's estate. View More