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Exhibit 10(i)
THE BANK OF EAST RIDGE
SURVIVOR INCOME AGREEMENT
THIS AGREEMENT is made this 20th day of April, 1993 by and between The
Bank of East Ridge (the "Company") and Daniel O. Crye (the "Executive").
INTRODUCTION
To encourage the Executive to remain an employee of the Company, the
Company is willing to provide benefits to the Executive's beneficiary if the
Executive dies prior to terminating employment. The Company will pay the
benefits from its general assets, but only so long as one of its general assets
is a life insurance policy on the Executive's life.
AGREEMENT
The Executive and the Company agree as follows:
Article 1
Entitlement to Benefit
1.1 Pre-Termination Survivor Income Benefit. If the Executive dies
before otherwise terminating employment with the Company, and if the Company
owns a life insurance policy on the Executive's life at the time of such death,
the Company shall pay to the Executive's designated beneficiary the survivor
income benefit described in Article 2.
1.2 Disability Continuation. If the Executive terminates employment due
to disability and then dies before recovering from such disability, the Company
shall pay to the Executive's designated beneficiary the survivor income benefit
described in Article 2. Whether the Executive is disabled or has recovered from
a disability shall be determined by the Company in its sole discretion.
1.3 Suicide. No benefits shall be payable if the Executive commits
suicide within two years after the date of this Agreement.
Article 2
Survivor Income Benefit
2.1 Amount of Benefits. The survivor income benefit shall be
$160,000.00.
2.2 Form of Benefits. The survivor income benefit shall be paid to the
Executive's beneficiary in 120 equal monthly installments payable on the first
day of each month commencing with the first day of the month following the
Executive's death.
Article 3
Beneficiaries
3.1 Beneficiary Designations. The Executive shall designate a
beneficiary by filing a written designation with the Company. The Executive may
revoke or modify the designation at any time by filing a new designation.
However, designations will only be effective if signed by the Executive and
accepted by the Company during the Executive's lifetime. The Executive's
beneficiary designation shall be deemed automatically revoked if the beneficiary
predeceases the Executive, or if the Executive names a spouse as beneficiary and
the marriage is subsequently dissolved. If the Executive dies without a valid
beneficiary designation, all payments shall be made to the Executive's surviving
spouse, if any, and if none, to the Executive's surviving children and the
decedents of any deceased child by right of representation, and if no children
or decedents survive, to the Executive's estate.
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3.2 Facility of Payment. If a benefit is payable to a minor, to a
person declared incompetent, or to a person incapable of handling the
disposition of his or her property, the Company may pay such benefit to the
guardian, legal representative or person having the care or custody of such
minor, incompetent person or incapable person. The company may require proof of
incompetency, minority or guardianship as it may deem appropriate prior to
distribution of the benefit. Such distribution shall completely discharge the
Company from all liability with respect to such benefit.
Article 4
Claims and Review Procedures
4.1 Claims Procedure. The Company shall notify the Executive's
beneficiary in writing, within ninety (90) days of his or her written
application for benefits of his or her eligibility or noneligibility for
benefits under the Agreement. If the Company determines that the beneficiary is
not eligible for benefits or full benefits, the notice shall set forth (1) the
specific reasons for such denial, (2) a specific reference to the provisions of
the Agreement on which the denial is based, (3) a description of any additional
information or material necessary for the claimant to perfect his or her claim,
and a description of why it is needed, and (4) an explanation of the Agreement's
claims review procedure and other appropriate information as to the steps to be
taken if the beneficiary wishes to have the claim reviewed. If the Company
determines that there are special circumstances requiring additional time to
make a decision, the Company shall notify the beneficiary of the special
circumstances and the date by which a decision is expected to be made, and may
extend the time for up to an additional ninety-day period.
4.2 Review Procedure. If the beneficiary is determined by the Company
not to be eligible for benefits, or if the beneficiary believes that he or she
is entitled to greater or different benefits, the beneficiary shall have the
opportunity to have such claim reviewed by the company by filing a petition for
review with the Company within sixty (60) days after receipt of the notice
issued by the Company. Said petition shall state the specific reasons which the
beneficiary believes entitle him or her to benefits or to greater or different
benefits. Within sixty (60) days after receipt by the Company of the petition,
the Company shall afford the beneficiary (and counsel, if any) an opportunity to
present his or her position to the Company orally or in writing, and the
beneficiary (or counsel) shall have the right to review the pertinent documents.
The Company shall notify the beneficiary of its decision in writing within the
sixty-day period, stating specifically the basis of its decision, written in a
manner calculated to be understood by the beneficiary and the specific
provisions of the Agreement on which the decision is based. If, because of the
need for a hearing, the sixty-day period is not sufficient, the decision may be
deferred for up to another sixty-day period at the election of the Company, but
notice of this deferral shall be given to the beneficiary.
Article 5
Conversion to Split Dollar
If the Executive voluntarily terminates employment after age 65, the
Executive may elect to enter into the Split Dollar Insurance Agreement attached
as the Addendum to this Agreement.
Article 6
Amendments and Termination
The Company may amend or terminate this Agreement at any time prior to
the Executive's death by written notice to the Executive.
Article 7
Miscellaneous
7.1 Exclusive Agreement/Binding Effect. This Agreement is the entire
agreement between the Company and the Executive, written or oral, related to the
Company's obligation to pay any survivor income benefits to the Executive's
beneficiaries or survivors. This Agreement supersedes all prior agreements,
understandings and
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negotiations. This Agreement shall bind the Executive and the Company, and
their beneficiaries, survivors, executors, administrators and transferees.
7.2 No Guaranty of Employment. This Agreement is not an employment
policy or contract. It does not give the Executive the right to remain an
employee of the Company, nor does it interfere with the Company's right to
discharge the Executive. It also does not require the Executive to remain an
employee nor interfere with the Executive's right to terminate employment at any
time.
7.3 Tax Withholding. The Company shall withhold any taxes that are
required to be withheld from the benefits provided under this Agreement.
7.4 Applicable Law. The Agreement and all rights hereunder shall be
governed by the laws of {STATE], except to the extent preempted by the laws of
the Untied States of America.
7.5 Unfunded Plan. The beneficiary is a general unsecured creditor of
the Company for the payment of benefits under this Agreement. The benefits
represent the mere promise by the Company to pay such benefits. The
beneficiary's rights to such benefits are not subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment, or garnishment by creditors. Any insurance on the Executive's life
is a general asset of the company to which the Executive and designated
beneficiary have no preferred or secured claim.
IN WITNESS WHEREOF, the Executive and a duly authorized Company officer
have signed this Agreement.
EXECUTIVE: COMPANY:
THE BANK OF EAST RIDGE
/s/ Daniel Crye By: /s/ James Renegar
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DANIEL O. CRYE Title: President
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ADDENDUM TO
THE BANK OF EAST RIDGE
SURVIVOR INCOME AGREEMENT
ELECTIVE SPLIT DOLLAR INSURANCE AGREEMENT
THIS AGREEMENT is made this 20th day of April, 1993 by and between The
Bank of East Ridge (the "Company") and Daniel O. Crye (the "Executive").
Under the terms of the Survivor Income Benefit Agreement, the Executive
and the Company desire to divide the death proceeds of a life insurance policy
on the Executive's life.
AGREEMENT
The Executive and the Company agree as follows:
Article 1
The following terms shall have the meanings specified:
1.1 "Insurer" means The Mutual Group Life Insurance Company.
1.2 "Policy" means insurance policy number 534348 issued by the
Insurer.
Article 2
Policy Ownership/Interests
2.1 Executive's Interest. The Executive shall have the right to
designate the beneficiary of the death proceeds of the Policy in an amount equal
to the lesser of (i) $160,000.00, or (ii) the excess of the total death proceeds
over the cash surrender value of the Policy on the day before the Executive's
death. The Executive shall also have the right to elect and change settlement
options that may be permitted for such beneficiaries.
Article 3
Premiums
The Executive shall annually pay premiums equal to the current team
rate for the Executive's age multiplied by the aggregate death benefit payable
to the beneficiaries designated by the Executive. The "current term rate" is the
minimum amount required to be imputed under Revenue Rulings 64-328 and 66-110,
or any subsequent applicable authority. The Company shall then pay the balance
of any premiums due.
Article 4
Insurer
The Insurer shall be bound only by the terms of the Policy. Any
payments the Insurer makes or actions it takes in accordance with the Policy
shall fully discharge it from all claims, suits and demands of all persons. The
Insurer shall not be bound by or be deemed to have notice of the provisions of
this Agreement.
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Article 5
Claims Procedure
5.1 Claims Procedure. The Company shall notify the Executive's
beneficiary in writing, within ninety (90) days of his or her written
application for benefits, of his or her eligibility or noneligibility for
benefits under the Agreement. If the Company determines that the beneficiary is
not eligible for benefits or full benefits, the notice shall set forth (1) the
specific reasons for such denial, (2) a specific reference to the provisions of
the Agreement on which the denial is based, (3) a description of any additional
information or material necessary for the claimant to perfect his or her claim,
and a description of why it is needed, and (4) an explanation of the Agreement's
claims review procedure and other appropriate information as to the steps to be
taken if the beneficiary wishes to have the claim reviewed. If the Company
determines that there are special circumstances requiring additional time to
make a decision, the Company shall notify the beneficiary of the special
circumstances and the date by which a decision is expected to be made, and may
extend the time for up to an additional ninety-day period.
5.2 Review Procedure. If the beneficiary is determined by the Company
not to be eligible for benefits, or if the beneficiary believes that he or she
is entitled to greater or different benefits, the beneficiary shall have the
opportunity to have such claim reviewed by the Company by filing a petition for
review with the Company within sixty (60) days after receipt of the notice
issued by the Company. Said petition shall share the specific reasons which the
beneficiary believes entitles him or her to benefits or to greater or different
benefits. Within sixty (60) days after receipt by the Company of the petition,
the Company shall afford the beneficiary (and counsel, if any) an opportunity to
present his or her position to the Company orally or in writing, and the
beneficiary (or counsel) shall have the right to review the pertinent documents.
The Company shall notify the beneficiary of its decision in writing within the
sixty-day period, stating specifically the basis of its decision, written in a
manner calculated to be understood by the beneficiary and the specific
provisions of the Agreement on which the decision is based. If, because of the
need for a hearing, the sixty-day period is not sufficient, the decision may be
deferred for up to another sixty-day period at the election of the Company, but
notice of this deferral shall be given to the beneficiary.
Article 6
Amendments and Termination
The Company may amend or terminate this Agreement at any time prior to
the Executive's death by written notice to the Executive.
Article 7
Miscellaneous
7.1 Binding Effect. This Agreement shall bind the Executive and the
Company, their beneficiaries, survivors, executors, administrators and
transferees, and any Policy beneficiary.
7.2 No Guaranty of Employment. This Agreement is not an employment
policy or contract. It does not give the Executive the right to remain an
employee of the Company, nor does it interfere with the Company's right to
discharge the Executive. It also does not require the Executive to remain an
employee nor interfere with the Executive's right to terminate employment at any
time.
7.3 Applicable Law. The Agreement and all rights hereunder shall be
governed by and construed according to the laws of [STATE], except to the
extent preempted by the laws of the United States of America.
IN WITNESS WHEREOF, the Executive and a duly authorized Company officer
have signed this Agreement.
EXECUTIVE: COMPANY:
THE BANK OF EAST RIDGE
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/s/ Daniel Crye By: /s/ James Renegar
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DANIEL O. CRYE Title: President
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THE BANK OF EAST RIDGE
SURVIVOR INCOME AGREEMENT
BENEFICIARY DESIGNATION
I designate the following as beneficiary of benefits under the Survivor
Income Agreement:
Primary:________________________________________________________________________
Contingent:_____________________________________________________________________
NOTE: TO NAME A TRUST AS BENEFICIARY, PLEASE PROVIDE THE NAME OF THE TRUSTEE AND
THE EXACT DATE OF THE TRUST AGREEMENT.
I understand that I may change these beneficiary designations by filing
a new written designation with the Company. I further understand that the
designations will be automatically revoked if the beneficiary predeceases me,
or, if I have named my spouse as beneficiary, in the event of the dissolution of
our marriage.
Signature:______________________
Date____________________________
Accepted by the Company this _____ day of ____________, 199___.
By:_____________________________
Title:__________________________
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