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:
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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
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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.
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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.
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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.
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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.
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