Exhibit 10.3
[FORM OF]
SPLIT DOLLAR INSURANCE
AGREEMENT
THIS AGREEMENT, is made and entered
into this _____ day of August, 2008, by and between The OBA Bank, a
Maryland banking association, located in Germantown, Maryland (the
“Bank”), and _____________, an employee of OBA Bank,
residing at ____________________________________ (hereinafter
referred to as the “Employee”).
INTRODUCTION
WHEREAS , Employee is an officer or other highly paid
employee of the Bank.
The Bank is the owner of insurance
policy(ies) or policies shown on Schedule “1” attached
hereto and incorporate herein by reference (hereinafter referred to
as the “Insurance Policy(ies)(ies)”), with the life
insurance company or companies shown on Schedule “1”
(herein after referred to as the “Insurance Company” or
“Insurer”), on the life of the Employee.
The Bank desires to induce Employee
to continue to utilize his/her best efforts on behalf of the Bank
by its payment of premiums due on the Insurance Policy(ies), and
share with the employee the financial benefit the policy(ies) can
achieve.
WHEREAS , the Bank is the owner of the Insurance
Policy(ies) and wishes to endorse a portion of the death benefit of
the policy(ies) to Employee.
NOW, THEREFORE
, in consideration of the mutual
covenants contained herein, it is agreed between the parties hereto
as follows:
SECTION 1:
OWNERSHIP OF INSURANCE
:
The Bank is and shall continue to be
owner of the Insurance Policy(ies), the Bank may exercise all the
rights and ownership with respect to the Insurance Policy(ies), and
the Bank possesses all incidence of ownership with respect to the
Insurance Policy(ies), except as provided in Section 4 of this
Agreement. The Insurance Policy(ies) is listed on Schedule
“1” and OBA Bank may to the extent allowed by law
substitute and/or change the Insurer so long as OBA Bank fully
complies with the provisions of this Agreement to provide an
Insurance Policy(ies) in the amount and on the terms of Schedule
“1”.
SECTION 2:
PAYMENT OF PREMIUMS
:
The Bank shall pay each premium on
the Insurance Policy(ies) to the Insurer on or before the due date
of