Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers
Split Dollar Life Insurance Agreements. On August 11, 2022, the Bank entered
into a Split Dollar Life Insurance Agreement with Stephen Scott (the
"Agreement"). The Plan provides the Executive with a death benefit through
bank-owned life insurance policies. In the event the Executive dies while
employed by the Bank, the split-dollar life insurance agreement entitles the
Executive to an amount equal to three (3) times the Executive's Annual Base
Salary, less $50,000, capped at $400,000. In the event the Executive dies
following his termination of employment on or after age 65, the death benefit
provided under the Plan is an amount equal to a multiple of final base salary,
less $50,000, capped at $400,000. The Bank is the sole beneficiary of any death
proceeds remaining after the aforementioned death proceeds have been paid to Mr.
Scott's designated beneficiary.
The Agreement will terminate upon the occurrence of any of the following prior
to the death of the Mr. Scott: (1) total cessation of the business of the Bank;
(2) bankruptcy, receivership or dissolution of the Bank; (3) termination of Mr.
Scott's employment prior to age 65 (whether voluntary or involuntary); or (4) by
written notice thereof by the Bank or by Mr. Scott.
The foregoing description of the Agreement does not purport to be complete and
is qualified in its entirety by reference to the Agreement attached hereto as
Exhibit 10.1.
Item 9.01. Financial Statement and Exhibits
(a) Not Applicable.
(b) Not Applicable.
(c) Not Applicable.
(d) Exhibits.
Exhibit
Number Description
10.1 Salisbury Bank and Trust Company Split Dollar Life Insurance Agreement with
Stephen Scott Effective as of August 11, 2022.
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