JOINT
BENEFICIARY DESIGNATION
AGREEMENT
INSURER:
POLICY
NUMBER:
INSURER:
POLICY
NUMBER:
Bank:
SOUTHERN FIRST BANK, NATIONAL
ASSOCIATION, F/N/A Greenville First
Bank
Insured:
Relationship of Insured to Bank:
Executive
The
respective rights and duties of the Bank and the Insured in the
above-referenced policy(ies) shall be pursuant to the terms set
forth below:
I.
DEFINITIONS
Refer to the contract(s) for the policy(ies) for the definition of
any terms in this Agreement that are not defined herein. If
the definition of a term in the policy(ies) is inconsistent with
the definition of a term in this Agreement, then the definition of
the term as set forth in this Agreement shall supersede and replace
the definition of the terms as set forth in the policy(ies).
II. POLICY TITLE AND
OWNERSHIP
Title and ownership shall reside in the Bank for its use and for
the use of the Insured all in accordance with this Agreement.
The Bank alone may, to the extent of its interest, exercise the
right to borrow or withdraw on the policy(ies) cash values.
Where the Bank and the Insured (or assignee, with the consent of
the Insured) mutually agree to exercise the right to increase the
coverage under the subject Joint Beneficiary Designation policy,
then, in such event, the rights, duties and benefits of the parties
to such increased coverage shall continue to be subject to the
terms of this Agreement.
III. BENEFICIARY DESIGNATION
RIGHTS
The Insured (or assignee) shall have the right and power to
designate a beneficiary or beneficiaries to receive the
Insured’s share of the proceeds payable upon the death of the
Insured, and to elect and change a payment option for such
beneficiary, subject to any right or interest the Bank may have in
such proceeds, as provided in this Agreement.
IV. PREMIUM PAYMENT
METHOD
Subject to the Bank’s absolute right to surrender or
terminate the policy(ies) at any time and for any reason, the Bank
shall pay an amount equal to the planned premiums and any other
premium payments that might become necessary to keep the
policy(ies) in force.
V. TAXABLE
BENEFIT
Annually the Insured will receive a taxable benefit equal to the
imputed value of insurance as required by the Internal Revenue
Service. The Bank (or its administrator) will report to the
Insured the amount of imputed income each year on Form W-2 or its
equivalent.
VI. DIVISION OF DEATH
PROCEEDS
Subject to Paragraphs VII and VIII herein, the division of the
death proceeds of the policy(ies) are as follows:
A. If the Insured is
employed by the Bank, at the time of death, the Insured’s
beneficiary(ies), designated in accordance with Paragraph III,
shall be entitled to an amount equal to the lower of three (3)
times the amount of the Insured's then salary (without bonuses) or
the net-at-risk insurance portion of the proceeds from the
policy(ies) in effect from time to time. The net-at-risk
insurance portion shall be the total death proceeds less the cash
value of the policy(ies). The Bank shall be entitled to the
remainder of the proceeds.
B . If the Insured
is not employed, for whatever reason, by the Bank at the time of
death , the Bank shall be entitled to all the death
proceeds.
VII. OWNERSHIP OF THE CASH SURRENDER
VALUE OF THE POLICY
The Bank shall at all times be entitled to an amount equal to the
cash value of the policy(ies), as that term is defined in the
policy(ies) contract(s), less any policy(ies) loans and unpaid
interest or cash withdrawals previously incurred by the Bank and
any applicable surrender charges. Such cash value shall be
determined as of the date of surrender or death as the case may
be.
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VIII.
TERMINATION OF AGREEMENT
A. This Agreement s
