ENDORSEMENT METHOD SPLIT DOLLAR PLAN
Bank: Heritage Bank of Commerce
Relationship of Insured to Bank: Executive
The respective rights and duties of the Bank and the Insured in the above policy(ies) the "Policy" or "Policies"
shall be as follows:
Refer to the Policy provisions for the definition of all terms in this Agreement.
Title and ownership shall reside in the Bank for its use and for the use of the Insured all in accordance
with this Agreement. The Bank alone may, to the extent of its interest, exercise the right to borrow or
withdraw the Policy cash values. Where the Bank and the Insured (or beneficiary[ies] or assignee[s], with
the consent of the Insured) mutually agree to exercise the right to increase the coverage under the subject
split dollar Policy, then, in such event, the rights, duties and benefits of the parties to such increased
coverage shall continue to be subject to the terms of this Agreement.
The Insured (or beneficiary[ies} or assignee[sj) shall have the right and power to designate a beneficiary
or beneficiaries to receive his share of the proceeds payable upon the death of the Insured, and to elect
and change a payment option for such beneficiary, subject to any right or interest the Bank may have in
such proceeds, as provided in this Agreement.
The Bank shall pay an amount equal to the planned premiums and any other premium payments that
might become necessary to maintain the Policy in force.
Annually the Insured will receive a taxable benefit equal to the assumed cost of insurance, as required by
the Internal Revenue Service. The Bank (or its administrator) will report to the Insured the amount of
imputed income each year on Form W-2 or its equivalent. In addition, Insured shall be responsible for all
additional appropriate or required taxes, if any.
Subject to Paragraph VII herein, the di