Opportunity Cost Clause Samples

Opportunity Cost. The Opportunity Cost for any Plan Year shall be calculated by taking the sum of the amount of premiums for the life insurance policies described in the definition of “Index” plus the amount of any after-tax benefits paid to the Executive pursuant to the Executive Plan (Paragraph II hereinafter) plus the amount of all previous years’ after-tax Opportunity Cost, and multiplying that sum by the average after tax yield of a one-year Treasury b▇▇▇.

Opportunity Cost. The Opportunity Cost for any Plan Year shall be calculated by multiplying (a) the sum of (i) the total amount of premiums set forth in the insurance policies described above, (ii) the amount of any Index Benefits (described at subparagraph b above), and (iii) the amount of all previous years after-tax Opportunity Costs; by

Opportunity Cost. The Opportunity Cost for any Plan Year shall be calculated by taking the sum of the amount of premiums for the life insurance policies described in the definition of "Index" plus the amount of any after-tax benefits paid to the Executive pursuant to the Executive Plan (Paragraph II hereinafter) plus the amount of all previous years' after-tax Opportunity Cost, and multiplying that sum by the greater of either one of the following: (i) the average after tax yield of a one-year Treasury ▇▇▇▇, or (ii) the Bank's average annualized after-tax Cost of Funds Expense as determined by the Bank's third quarter call report as filed with the appropriate regulatory agency.

Opportunity Cost. All Advertising placed by Compaq shall normally be subject to existing Advertising placements made by DoubleClick. In the unusual event that (i) DoubleClick is required by Compaq to cancel any Advertising campaign sold by DoubleClick on behalf of Compaq to avoid a conflict with an advertising agreement entered into by Compaq and (ii) no alternative Advertising programs acceptable to Advertiser are available through DoubleClick, Compaq shall remit to DoubleClick the sales commission to which DoubleClick would have been entitled had the campaign run its full course, by the dates such payments would have been due hereunder assuming the cancelled Advertising had been paid when due and Compaq shall be solely responsible for any compensation due to the Advertiser whose Advertising campaign has been cancelled. However, the foregoing provision shall not apply to Advertising that Compaq has identified to DoubleClick in good faith in advance in a written notice as being unavailable, if DoubleClick nonetheless sells such Advertising after its receipt of such notice; it being understood that in this instance only, DoubleClick shall be solely responsible for any compensation due to the Advertiser whose Advertising campaign has been cancelled.

Opportunity Cost. The Opportunity Cost for any Plan Year shall be calculated by multiplying (a) the sum of (i) the total amount of premiums set forth in the insurance policies described above, (ii) the amount of any Index Benefit (described at subparagraph b above), and (iii) the amount of all previous years after-tax Opportunity Costs; by (b) the average annualized after-tax cost of funds calculated using a one-year U.S. Treasury ▇▇▇▇ as published in the Wall Street Journal. The applicable tax rate used to calculate the Opportunity Cost shall be the Bank’s marginal tax rate until the Director’s Retirement, or other termination of service (including a Change in Control). Thereafter, the Opportunity Cost shall be calculated with the assumption of a marginal forty-two percent (42%) corporate tax rate each year regardless of whether the actual marginal tax rate of the Bank is higher or lower. [n] End of Year [A] Cash Surrender Value of Life Insurance Policy [B] Index [Annual Policy IncomeAn-An-1] [C] Opportunity Cost A0 = premium A0+C n-1x.05x (1-42%) [D] Annual Benefit B-C Cumulative Benefit D+Dn-1 0 $1,000,000 - - - - 1 $1,050,000 $50,000 $29,000 $21,000 $21,000 2 $1,102,500 $52,500 $29,841 $22,659 $43,659 3 $1,157,625 $55,125 $30,706 $24,419 $68,078 Assumptions: Initial Insurance = $1,000,000 Effective Tax Rate = 42% One Year US Treasury Yield = 5%

Opportunity Cost. The Opportunity Cost for any Plan Year shall be calculated by multiplying (a) the sum of (i) the total amount of premiums set forth in the insurance policies described above, (ii) the amount of any Index Benefits (described at subparagraph b above), and (iii) the amount of all previous years after-tax Opportunity Costs; by (b) the average annualized after-tax cost of funds calculated using a one-year U.S. Treasury ▇▇▇▇ as published in the Wall Street Journal. The applicable tax rate used to calculate the Opportunity Cost shall be the Employer's marginal tax rate until the Executive's Retirement, or other termination of service (including a Change in Control). Thereafter, the Opportunity Cost shall be calculated with the assumption of a marginal forty-two percent (42%) corporate tax rate each year regardless of whether the actual marginal tax rate of the Employer is higher or lower. ----------------------------------------------------------------------------------------------- EXAMPLE INDEX BENEFITS ----------------------------------------------------------------------------------------------- [n] [A] [B] [C] [D] INDEX [Annual OPPORTUNITY COST CASH SURRENDER Policy A(0) = premium ANNUAL CUMULATIVE END OF VALUE OF LIFE Income] A(0)+C(n-1)x.05x BENEFIT BENEFIT YEAR INSURANCE POLICY A(n)-A(n-1) (1-42%) B-C D+D(n-1) ----------------------------------------------------------------------------------------------- 0 $1,000,000 -- -- -- -- ----------------------------------------------------------------------------------------------- 1 $1,050,000 $50,000 $29,000 $21,000 $21,000 ----------------------------------------------------------------------------------------------- 2 $1,102,500 $52,500 $29,841 $22,659 $43,659 ----------------------------------------------------------------------------------------------- 3 $1,157,625 $55,125 $30,706 $24,419 $68,078 ----------------------------------------------------------------------------------------------- . . . ----------------------------------------------------------------------------------------------- Assumptions: Initial Insurance = $1,000,000 Effective Tax Rate = 42% One Year US Treasury Yield = 5%

Opportunity Cost. The Opportunity Cost for any Plan Year shall be ---------------- calculated by multiplying (a) the sum of (i) the total amount of premiums set forth in the insurance policies described above, (ii) the amount of any Index Benefits (described at subparagraph b above), and (iii) the amount of all previous years after-tax Opportunity Costs; by (b) the average annualized after-tax cost of funds calculated using a one-year U.S. Treasury ▇▇▇▇ as published in the Wall Street Journal. The applicable tax rate used to calculate the Opportunity Cost shall be the Employer's marginal tax rate until the Employee's Retirement, or other termination of service (including a Change in Control). Thereafter, the Opportunity Cost shall be calculated with the assumption of a marginal forty-two percent (42%) corporate tax rate each year regardless of whether the actual marginal tax rate of the Employer is higher or lower.

Opportunity Cost. The "Opportunity Cost" for any year shall be calculated by taking the sum of the amount of premiums set forth in the Index policies described above plus the amount of any benefits paid to the CEO pursuant to this Agreement (Paragraph II hereinafter) plus the amount of all previous years Opportunity Cost, and multiplying that sum by the interest expense of the Bank expressed as a percentage as reported in the Uniform Bank Performance Report (UBPR) for the quarter ended 9/30 for that year plus 50 basis points (.50).

Opportunity Cost. The Opportunity Cost for any Plan Year shall be calculated by taking the sum of the amount of premiums for the life insurance policies described in the definition of ‘Index” plus the amount of any after-tax benefits paid to the Director pursuant to the Director Plan (Paragraph II hereinafter) plus the amount of all previous years’ after-tax Expense, and multiplying that sum by the rolling five (5) year average of the three (3) year Treasury ▇▇▇▇. Subject to Paragraph IV, after three (3) full years from the Effective Date of this Agreement, the Board of Directors, by a two-thirds (2/3) vote of said Board, may unilaterally and in its sole discretion amend the measure of determining Opportunity Cost as set forth herein. Any said amendment(s) shall apply to all participants in the Director Plan and the Executive Plan.