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EXHIBIT 10.3 - FORM OF SPLIT DOLLAR AGREEMENT - FULLY VESTED EMPLOYEE
SPLIT DOLLAR POLICY ENDORSEMENT
BANK OF MURFREESBORO SPLIT DOLLAR AGREEMENT
Policy No. Insured:
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Supplementing and amending the application of December 15, 1998, to
_____________________ ("Insurer"), the applicant requests and directs that:
BENEFICIARIES
1. BANK OF MURFREESBORO, located in Murfreesboro, Tennessee (the "Bank"),
shall be the beneficiary of the death proceeds of the Policy remaining
after the interest of the Insured or the Insured's transferee is
determined according to paragraph (2) below.
2. The Insured shall designate the beneficiary of an amount of the net
death benefit of the Policy (defined herein as the death benefit minus
the greater of: i) the cash surrender value of the policy, or ii) the
aggregate premiums paid on the Policy by the Bank less any outstanding
indebtedness to the Insurer), as follows, subject to the provisions of
paragraph (5) below:
(a) If the Insured dies after Normal Retirement Age of 62 years,
the beneficiary of the Insured or the Insured's transferee
shall be entitled to 75 percent of the net death benefit of
the Policy.
(b) If the Insured dies prior to Normal Retirement Age of 62
years, the beneficiary of the Insured or the Insured's
transferee shall be entitled to 50 percent of the net death
benefit of the Policy. However, if the Insured has not
attained Normal Retirement Age of 62 years and the Insured's
death occurs after a Change of Control or a Disability as
defined in the Insured's Split Dollar Agreement of even date
herewith, the beneficiary of the Insured or the Insured's
transferee shall be entitled to 75 percent of the net death
benefit of the Policy even if the Insured dies prior to Normal
Retirement Age of 62 years.
OWNERSHIP
3. The Owner of the policy shall be the Bank. The Owner shall have all
ownership rights in the Policy except as may be specifically granted to the
Insured or the Insured's transferee in paragraph (4) of this endorsement.
4. The Insured or the Insured's transferee shall have the right to
assign his or her rights
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and interests in the Policy with respect to that portion of the death proceeds
designated in paragraph (2) of this endorsement, and to exercise all settlement
options with respect to such death proceeds.
5. Notwithstanding the provisions of paragraph (4) above, the Insured
or the Insured's transferee shall have no rights or interests in the Policy with
respect to that portion of the death proceeds designated in paragraph (2) of
this endorsement if the Insured, without the prior written consent of the Bank,
comes to own, manage, control, participate in, consult with, render services for
or be employed by, directly or indirectly, any organization chartered as a
commercial bank, savings bank, savings and loan or credit union having offices
in the County of Xxxxxxxxxx in the State of Tennessee for a period of
twenty-four (24) months after the date of termination of the Executive's
employment or his retirement. However, nothing herein shall prohibit the
Executive from being a passive owner of not more than 1 percent of the
outstanding stock of any class of a corporation which is publicly traded so long
as the Executive has no active participation in the business of such
corporation. This section shall not apply following a Change of Control.
MODIFICATION OF ASSIGNMENT PROVISIONS OF THE POLICY
Upon the death of the Insured, the interest of any collateral assignee of the
Owner of the Policy designated in (3) above shall be limited to the portion of
the proceeds described in paragraph (1) above.
OWNERS AUTHORITY
The Insurer is hereby authorized to recognize the Owner's claim to rights
hereunder without investigating the reason for any action taken by the Owner,
including its statement of the amount of premiums it has paid on the Policy. The
signature of the Owner shall be sufficient for the exercise of any rights under
this Endorsement and the receipt of the Owner for any sums received by it shall
be a full discharge and release therefore to the Insurer.
Any transferee's rights shall be subject to this Endorsement.
Signed at ____________________, Tennessee, this _______ day of January, 1999.
BANK OF MURFREESBORO
By
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Its
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The Insured accepts and agrees to the foregoing and, subject to the rights of
the Owner as stated above, designates _______________________________________ as
primary beneficiary and _______________________________________________________
as secondary beneficiary of the portion of the proceeds described in (2) above.
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Signed at ____________________, Tennessee, this ________ day of January, 1999.
THE INSURED:
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Signed at ____________________, Tennessee, this ________ day of January, 1999.
CORPORATION:
MURFREESBORO BANCORP, INC.
BY
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ITS
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