Email Address:
  
  Password:
  
  

Exhibit 10.7

 

Life Insurance Premium Reimbursement Agreement

 

This Life Insurance Premium Reimbursement Agreement (this “Agreement”) is made and entered into as of January 1, 2009 (the “Effective Date”), by and between Farmington Bank, with its principal administrative office at 32 Main St., Farmington, CT (together with its successors and assigns, the “Bank”) and Greg A. White (“Executive”).

 

In consideration of the mutual covenants herein contained and implied, the sufficiency of which is acknowledged by each party, the Bank and the Executive agree as follows:

 

 

1.

The Bank shall reimburse Executive, through an annual tax-adjusted bonus as described herein, for the cost of an individual supplemental life insurance policy to be purchased and owned by Executive during the period of his employment with the Bank, beginning on the effective date of this Agreement.  The individual supplemental life insurance policy shall provide:  (a) pre-retirement, one million dollars ($1,000,000) of term coverage and (b) post-retirement, two hundred fifty thousand dollars ($250,000) cash value.  Notwithstanding the foregoing, the Bank may, in its discretion, provide the levels of insurance required under this Section through the Bank’s group insurance policy, in which case the Bank shall not be obligated to reimburse executive for individual coverage under this Agreement

 

 

2.

In order to receive payment, the Executive shall submit to the Bank, no later than 30 days after the last day of the calendar year in which the expenses were incurred by the Executive, documentation of his payment of any premiums described in paragraph 1.

 

 

3.

The tax-adjusted bonus payable to the Executive hereunder shall be equal to the total amount of premiums that have been paid and timely documented by the Executive under paragraphs 1 and 2 above, increased by forty percent (40%).  The tax-adjusted bonus shall be paid no later than March 15 of the calendar year following the calendar year in which the expenses were incurred by the Executive.

 

 

4.

Any insurance policy acquired or maintained by the Executive with respect to which premiums may be reimbursed under this Agreement shall be owned by the Executive (or his designee) free and clear of any interest of the Bank.

 

 

5.

The Executive recognizes that the compensation to be paid under this Agreement is subject compensation from employment and the Bank shall withhold required income taxes, FICA and FUTA taxes and the like from each such payment.

 

 

6.


This is only a partial view of this document. We have millions of legal documents and clauses drafted by top law firms. learn more search for free browse for free learn more