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 Bill as published ix 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. EXAMPLE INDEX BENEFITS [n] [A] Index End of Cash Surrender [Annual Opportunity Annual Cumulative Year Value of Life Policy Cost Benefit Benefit Insurance Policy Income] A0 = premium B-C D+Dn-1 An-An-1 A0+Cn-1x.05x (1-42%) 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 taking the sum of the amount of premiums for the life insurance policies described in the definition of "Index" plus the amount of all previous years' after-tax Opportunity Cost, and multiplying that sum by the average rate of return on the average Federal Funds for the Plan Year as quoted in the Wall Street Journal net of the Company's highest marginal tax rate (combined federal and state) for each Plan Year. This rate shall be adjusted annually.
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 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 xxxx, 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. 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 Opportunity Cost, and multiplying that sum by the greater of either: (i) the average after tax yield of a one-year Treasury xxxx; or (ii) the Bank’s annualized after tax cost of funds as calculated from the Bank’s third quarter call report.
Opportunity Cost. The Opportunity Cost for any Plan Year shall be calculated by taking the sum of the amount of premiums set forth in the Indexed policies described above plus the amount of any after-tax benefits paid to the Executive pursuant to this Agreement (Paragraph III 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 xxxx for the Plan Year.
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 Xxxx 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. ----------------------------------------------------------------------------------------------- [n] [A] [B] [C] [D] INDEX [Annual OPPORTUNITY COST CASH SURRENDER Policy A0 = premium ANNUAL CUMULATIVE END OF VALUE OF LIFE Income] A0+Cn-1x.05x BENEFIT BENEFIT YEAR INSURANCE POLICY An-An-1 (1-42%) B-C 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 Xxxx 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 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 Bill as published ix 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. EXAMPLE INDEX BENEFITS
Opportunity Cost. The Opportunity Cost for any year shall be calculated by taking the sum of the amount of premiums set forth in the Indexed policies described above plus the amount of any after-tax benefits paid to the Executive pursuant to this Agreement plus the sum of all previous years after-tax Opportunity Cost, and multiplying that sum by the Bank’s average annualized after-tax costs of funds as calculated using the Bank’s third quarter Thrift Financial Report or any successor regulatory financial report for the Plan Year as filed with the Bank’s primary regulatory agency.
