Insurance Transfer Agreement
Exhibit 10.20
This Agreement is entered into as of the 31st day of December, 2003, by and among Valley Financial Corporation, a Virginia corporation (“VFC), Valley Bank, a Virginia banking corporation (“Valley Bank”) and Xxxxx X. Xxxxxxxx, 000 Xxxxxxxxxx Xxxx, X.X., Xxxxxxx, Xxxxxxxx 00000 (“Xxxxxxxx”).
1. | On the closing date, which shall be a mutual convenient date on or before December 31, 2003: |
(a) | Valley Bank shall pay to Xxxxxxxx in current funds the Transfer Consideration and Tax Gross-Up computed as of the closing date; |
(b) | Xxxxxxxx shall assign and transfer to Valley Bank absolutely and unconditionally all of Xxxxxxxx’x right, title and interest in and to the Policies and shall execute and file with the Insurer, on forms satisfactory to the Insurer, any document or |
documents required by the Insurer to effectuate such transfer and assignment on its books and records; and |
(c) | Xxxxxxxx shall pay in full to VFC the Policy Loan and VFC shall cancel the promissory note evidencing the Policy Loan and deliver the same to Xxxxxxxx marked “paid”. |
2. | As of the closing date and effective automatically on receipt by Xxxxxxxx of the Transfer Consideration, Xxxxxxxx assigns and transfers all of his right, title and interest in and to the Policy to Valley Bank absolutely and unconditionally and agrees that he shall have no further rights or obligations in connection with the Policies and Valley Bank assumes the same. |
Valley Bank | ||||
By | /s/ A. Xxxxx Xxxxx | |||
Title: |
EVP/COO |
/s/ Xxxxx X. Xxxxxxxx |
Xxxxx X. Xxxxxxxx |
Valley Financial Corporation | ||||
By |
/s/ A. Xxxxx Xxxxx | |||
Title: |
EVP/COO |