Exhibit 10.13 SPLIT DOLLAR AGREEMENT
THIS AGREEMENT, made as of the 21st day of November, 2000, by and between
SALISBURY BANK & TRUST COMPANY with its principal offices in Salisbury,
Connecticut (hereinafter referred to as the "Trustee"), and XXXXXX X. XXXXXX, of
Xxxxxxxxxx, Connecticut (hereinafter referred to as the "Employee").
WITNESSETH THAT:
WHEREAS, the Trustee is holding in trust, pursuant to a Rabbi Trust
established by The First National Bank of Litchfield, dated November 21, 2000, a
life insurance policy on the life of the Employee as listed in Schedule A
attached hereto (hereinafter referred to as the "Policy"), which was contributed
into the Rabbi Trust by The First National Bank of Litchfield; and
NOW, THEREFORE, the Trustee agrees to make the Policy subject to this
Agreement as follows:
1. The parties hereto agree that the Policy shall be subject to
the terms and conditions of this Agreement. The Trustee shall
be the sole and absolute owner of the Policy and may exercise
all ownership rights granted to the owner thereof by the terms
of the Policy, except as may be otherwise provided herein.
2. Dividends, if any, declared on the Policy shall be applied to
purchase paid-up additional insurance on the life of the
Employee. The parties hereto agree that the dividend election
provisions, if any, of the Policy shall conform to the
provisions hereof.
3. The premium for the Policy becoming due after the date of this
Agreement will be paid by the Trustee during the Employee's
employment by The First National Bank of Litchfield and will
be allocated between the Employee and the Trust. The
Employee's share of the premium (term insurance allocation)
shall be paid by the Trustee as agent for the Employee and
shall be charged to the Employee as additional cash
compensation.
4. The Policy shall be an asset of the Trust. The Employee has no
rights under the Policy other than to name one or more
beneficiaries for his share of the death benefit and the
manner in which such share of the death benefit shall be paid.
5. a. Upon the death of the Employee, the Trustee shall
promptly take all action necessary to facilitate the
payment of the death benefits provided under the
Policy.
b. The Employee shall have the unqualified right to
designate a personal beneficiary for the first
$250,000 of death benefit or the entire proceeds, if
less, provided by the Policy. Said amount shall be
paid directly by the insurer to the beneficiary or
beneficiaries and in a manner designated by the
Employee. The balance of the death benefit under the
Policy shall be paid directly by the insurer to the
Trustee.
6. This Agreement shall terminate upon the occurrence of the
earliest of the following events: (i) the Employee's death and
the payment of proceeds pursuant to Section 5 of this
Agreement, or (ii) the termination of employment of the
Employee for any reason other than death.
7. This Agreement may not be amended, altered or modified except
by a written instrument signed by both of the parties hereto
and may not be otherwise terminated except as provided herein.
8. This Agreement shall be binding upon and inure to the benefit
of the Trustee and its successors, assignees, heirs,
executors, administrators and beneficiaries.
9. Except as may be preempted by ERISA, this Agreement, and the
rights of the parties hereunder, shall be governed by and
construed in accordance with the laws of the State of
Connecticut.
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IN WITNESS WHEREOF, the Trustee has caused this Agreement to be
executed by its officer thereunto duly authorized and the Employee has hereunto
set his hand all as of the day and year first above written.
TRUSTEE:
SALISBURY BANK & TRUST COMPANY
By: /s/Xxxxx X. Xxxxxxxx
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Xxxxx X. Xxxxxxxx
Title: Senior Vice President
EMPLOYEE:
/s / Xxxxxx X. Xxxxxx
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Xxxxxx X. Xxxxxx
SCHEDULE A
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Insurance Carrier Policy No. Initial Face Amount
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Security Life of Denver 1538084 $623,000
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