Common use of Policy Proceeds Clause in Contracts

Policy Proceeds. Subject to Section 8, upon the death of Insured, the death proceeds of the Policy will be divided in the following manner: (a) The Insured’s beneficiary(ies) designated in accordance with Section 3 will be entitled to an amount equal to $1,500,000 from the proceeds of the Policy, such amount being assigned and endorsed to the beneficiary(ies), provided the Insured remains employed by the Bank through the earlier of (i) the Insured’s date of death or (ii) the date that is two (2) years from the Effective Date; notwithstanding the foregoing, if the Insured terminates employment, other than due to death, prior to the date that is two (2) years from the Effective Date but after the date that is one (1) year from the Effective Date, the Insured’s beneficiary(ies) will be entitled to 50% of the foregoing amount. (b) Subject to Section 6(c), the Bank will be entitled to all Policy proceeds remaining after payment to the Insured’s beneficiary(ies) under Section 6(a). (c) The Bank and Insured will share equally in any interest due on the death proceeds of the Policy on a pro rata basis based upon the amount of proceeds due each party divided by the total amount of proceeds, excluding any such interest. It is understood by the parties that, in issuing the Policy, the Insurer will have no liability except as set forth in the Policy. Upon the death of the Insured, the Insurer will be discharged from all liability on payment of the proceeds in accordance with the provisions of the Policy. It is understood and intended by the parties that the Insurer may rely on the representations of the Bank in dividing the death proceeds pursuant to this Section 6.

Policy Proceeds. Subject to Section 89, upon the death of Insured, the death Death Benefit and other proceeds of the Policy will shall be divided determined and paid in the following manner: (a) The In the event the Insured has not terminated employment with the Bank at the time of death and has not become entitled to receive a benefit pursuant to the provisions of the Executive Supplemental Compensation Agreement which was executed by the parties on January ___, 2020 (“SERP”), then Insured’s beneficiary(ies) designated in accordance with Section 3 will shall be entitled to an amount equal to the following: Step 1: Determine the lesser of (A) the greater of (x) $1,500,000 from 835,135 or (y) the then balance in the SERP’s ALB (as defined in the SERP) or (B) one hundred percent (100%) of the Net Amount-at-Risk. This shall be the amount Insured’s Beneficiary(ies) shall receive. The term “Net Amount-at-Risk” shall be defined as the total proceeds of the Policy less the cash value of the Policy. In the alternative, such amount being assigned and endorsed to in the beneficiary(ies), provided event that the Insured remains employed by has terminated employment with the Bank through the earlier of (i) the Insured’s date of death or (ii) the date that is two (2) years from the Effective Date; notwithstanding the foregoing, if the Insured terminates employment, other than due to death, prior to the date that is two (2) years from time of his death, then this Agreement shall have terminated pursuant to the Effective Date but after the date that is one (1) year from the Effective Dateterms of Paragraph 9(a)(iii), the and neither Insured nor Insured’s beneficiary(ies) will designated beneficiaries shall be entitled to 50% receive any amounts under this Agreement. For the purposes of this Agreement, Insured will be considered to have terminated his employment when he has a “Separation from Service” or “terminates employment” within the foregoing amountmeaning of Code Section 409A and any future notices or guidance related thereto. (b) Subject to Section 6(c), the The Bank will shall be entitled to all any death proceeds payable under the Policy proceeds remaining after payment of the Death Benefit to the Insured’s beneficiary(ies) under Section Paragraph 6(a). (c) The Bank and Insured will shall share equally in any interest due on the death proceeds of the Policy on a pro rata basis based upon the amount of proceeds due each party divided by the total amount of proceeds, excluding any such interest. It is understood by the parties that, in issuing the Policy, the Insurer will have no liability except as set forth in the Policy. Upon the death of the Insured, the Insurer will be discharged from all liability on payment of the proceeds in accordance with the provisions of the Policy. It is understood and intended by the parties that the Insurer may rely on the representations of the Bank in dividing the death proceeds pursuant to this Section 6.

Policy Proceeds. Subject to Section 8, upon the death of Insured, the death proceeds of the Policy will be divided in the following manner: (a) The Insured’s beneficiary(ies) designated in accordance with Section 3 will be entitled to an amount equal to $1,500,000 3,000,000 from the proceeds of the Policy, such amount being assigned and endorsed to the beneficiary(ies), provided the Insured remains employed by the Bank through the earlier of (i) the Insured’s date of death or (ii) the date that is two (2) years from the Effective Date; notwithstanding the foregoing, if the Insured terminates employment, other than due to death, prior to the date that is two (2) years from the Effective Date but after the date that is one (1) year from the Effective Date, the Insured’s beneficiary(ies) will be entitled to 50% of the foregoing amount. (b) Subject to Section 6(c), the Bank will be entitled to all Policy proceeds remaining after payment to the Insured’s beneficiary(ies) under Section 6(a). (c) The Bank and Insured will share equally in any interest due on the death proceeds of the Policy on a pro rata basis based upon the amount of proceeds due each party divided by the total amount of proceeds, excluding any such interest. It is understood by the parties that, in issuing the Policy, the Insurer will have no liability except as set forth in the Policy. Upon the death of the Insured, the Insurer will be discharged from all liability on payment of the proceeds in accordance with the provisions of the Policy. It is understood and intended by the parties that the Insurer may rely on the representations of the Bank in dividing the death proceeds pursuant to this Section 6.