Common use of Director’s Interest Clause in Contracts

Director’s Interest. The Director shall have the right to designate the beneficiary(ies) of death proceeds. Upon the death of the Insured, the Insured’s beneficiaries shall be entitled to an amount equal to the balance of the Deferral Account maintained by the Bank for the Insured under the Deferred Fee Agreement as of the calendar year end of the year preceding the year of the Insured’s death. However, the amount paid to the Insured, the Insured’s transferee and the Insured’s beneficiary(ies) or estate shall be reduced by any amounts paid under the Deferred Fee Agreement and the Insured, the Insured’s transferee and the Insured’s beneficiary(ies) or estate shall have no rights or interests in the Policy beyond the amount due and payable. The Director shall also have the right to elect and change settlement options specified in the Policy that maybe permitted. However, the Director, the Director’s transferee and the Director’ s beneficiary(ies) or estate shall have no rights or interests in the Policy for that portion of the death proceeds designated in this Section 2.2 if Termination of Service of the Director shall have previously occurred as a result of Termination for Cause under the Deferred Fee Agreement.

Director’s Interest. The Director shall have the right to designate the beneficiary(ies) of death proceeds. Upon the death of the Insured, the Insured’s beneficiaries shall be entitled to an amount equal to the balance of the Deferral Account maintained by the Bank for the Insured under the Deferred Fee Agreement as of the calendar year end of the year preceding the year date of the Insured’s death. However, the amount paid to the Insured, the Insured’s transferee and the Insured’s beneficiary(ies) or estate shall be reduced by any amounts paid under the Deferred Fee Agreement and the Insured, the Insured’s transferee and the Insured’s beneficiary(ies) or estate shall have no rights or interests in the Policy beyond the amount due and payable. The Director shall also have the right to elect and change settlement options specified in the Policy that maybe may be permitted. However, the Director, the Director’s transferee and the Director’ s ’s beneficiary(ies) or estate shall have no rights or interests in the Policy for that portion of the death proceeds designated in this Section 2.2 if Termination of Service of the Director shall have previously occurred as a result of Termination for Cause under the Deferred Fee Agreement.