SunTrust Bank

Mail Code Center 636

P.O. Box 4418

Atlanta, GA 30302

Tel 404 827-6163

Fax 404 658-4294

 

LOGO [g18494img001.jpg]

 

Exhibit 10.70

 

August 10, 2004

 

Mr. James M. Wells III

2 West Wesley Rd., NW #15

Atlanta, GA 30305

 

Dear Jim:

 

This letter restates and supersedes the agreement between SunTrust Bank
(SunTrust or the Company) and you with regard to the insurance bonus arrangement
set forth in Frank Lawton’s letter to you on February 20, 2004.

 

Background

 

Prior to 2004, you were a participant in the Crestar Executive Life Insurance
Plan (ELI). Some years ago you transferred your ownership interest in the ELI
policy insuring your life (the Policy) to a trust, for which SunTrust Bank
serves as Trustee (the Trust and the Trustee, respectively). Thereafter, the
Trustee and SunTrust each paid a portion of the premiums on the Policy, and on
rollout, the cash value and death benefits of the Policy were to be split
between the Trust and the Company so that the Company would recover its premium
costs in accordance with the Policy’s collateral assignment.

 

As you are well aware, the IRS issued new guidelines in 2003 regarding the
taxation of split dollar life insurance arrangements, such as those under the
ELI Plan. It was not clear in 2003, nor is it clear now, whether existing split
dollar policies are subject to the new tax rules. In addition, it was unclear in
2003 whether split dollar premiums paid by an employer should be treated as
loans to an executive under the Sarbanes-Oxley Act.

 

In order to protect your life insurance benefits under these new restrictions,
the Company and you agreed last year to make changes to the structure of your
ELI benefit. The following paragraphs describe those changes and our mutual
commitments.

 

Policy Rollout

 

The new IRS split dollar regulations offered a “safe harbor” termination of a
split dollar arrangement prior to January 1, 2004, which allowed a participant
full access to the policy’s cash value without any current tax consequences.
Therefore, in order to protect the Policy’s equity of $138,069 on a tax-free
basis, SunTrust and the Trustee agreed to an early “roll-out” of the Policy in
December 2003. The Company received its cumulative net premium payments of
$297,975 and released its rights in the Policy, thus terminating the split
dollar arrangement. Consequently, as of the December rollout, the collateral
assignment ended, you no longer participate in the ELI Plan and the Company no
longer has an obligation to make any future premium payments under the ELI Plan
or the Policy.

--------------------------------------------------------------------------------

Mr. James M. Wells III

August 10, 2004

Page 2

 

Insurance Bonus

 

While the 2003 rollout of the Policy protected the Policy’s accumulated cash
value, it will still be necessary to pay annual premiums to maintain the
Policy’s death benefit coverage – 4 times your base pay until you reach age 65,
when it reduces by 50 percent. Currently, the Policy’s death benefits are $2.6
million. This amount is also subject to adjustment to correspond to future
changes in your base pay.

 

Because we no longer have the option of a split dollar arrangement, we agreed
that the Company will pay you an annual insurance bonus to help compensate for
the ELI benefit you have lost. The bonus will be equal to the premium amount the
Company would have paid if the Policy had continued until rollout under the ELI
Plan, taking into consideration contributions from you or the trust. Our outside
consultants (The Newport Group) have determined that the required Company
premium for 2004, calculated on a level premium basis to age 65, would be
$47,485. See the enclosed Exhibit A Inforce Policy Projection. To help account
for the taxes you will owe on this amount, the Company will increase your
insurance bonus by a “make whole” amount. For 2004, the make whole bonus is
$17,929 (see column 2). Therefore, your total insurance bonus for 2004 is
$65,414 (sum of columns 1 and 2), which is treated as taxable compensation to
you. Your net after-tax compensation received (assuming a 40.35% combined
effective federal and state tax rate) would be $39,019. The total 2004 premium
to Pacific Life is $47,485 (see column (5)) resulting in a net outlay for you of
$8,466 which is what you would have paid had your ELI participation continued
(see column (11)). For 2005 and later years, the premium and bonus amounts will
be adjusted to reflect changes caused by interest crediting rates and other
variables.

 

SunTrust’s payment of the annual insurance bonus is contingent on continuation
of the Policy in accordance with the terms of this Agreement. The Company will
pay the annual insurance bonus to you until the time your Policy would have
rolled out to you under the ELI Plan — the earliest of (1) the date that would
have been the Policy’s normal scheduled rollout date under the ELI Plan (i.e.,
generally the later of your attainment of age 65 or the 15th anniversary date of
the policy); (2) termination of your Policy; (3) written notice by the Company
to you if any portion of the annual premium due on your Policy is not timely
paid or any provision of this Agreement is breached and such failure or such is
not cured within thirty (30) days after such notice; or (4) your death.

 

As you and I have discussed, however, the Company will allow the Policy’s
premium payment period to be extended to age 70 (rather than age 65), provided
that the Policy’s death benefit is not decreased from the scheduled amount
(i.e., 4 times base pay until age 65, when it reduces by 50%). An extension will
have the effect of reducing the total annual premium but, of course, will
increase by five years the period over which the Trustee must continue paying
premiums. The Exhibit B Inforce Policy Projection (columns (5) through (10))
shows the projections based on a level annual premium of $27,700 to age 70. The
projected amounts will also fluctuate in future years depending on interest
crediting rates and other factors.

--------------------------------------------------------------------------------

Mr. James M. Wells III

August 10, 2004

Page 3

 

Note the following additional conditions to which you and the Trustee must
agree. Once SunTrust stops paying the insurance bonus, the Trustee will bear the
full risk of premium payments and Policy lapse. Under no circumstances will
SunTrust extend the period for paying the annual insurance bonus to you beyond
your age 65 or any earlier applicable date described in the preceding paragraph.
If the Policy’s death benefit is reduced from what it would have been under the
ELI Plan during the period in which the Company is paying the annual insurance
bonus, then you and the Trustee agree to notify the Company and to accept a pro
rata reduction in the Company’s annual payment to you. In addition, you and the
Trustee agree that the Trustee will pay annual premiums into the Policy by your
age 70 (see column 5 of Exhibit B) that are equal in the aggregate to the sum of
the premium bonus the Company has paid to you (see column 1). The attached
summary explains this arrangement in more detail.

 

Change in Control

 

In the event of a “Change in Control” of SunTrust Banks, Inc., the terms set
forth in this Agreement, (including the annual insurance bonus and gross up)
shall be binding on any successor to the Company. For purposes of this letter,
“Change in Control” has the same meaning as set forth in the Change in Control
Agreement entered into by you and SunTrust Banks, Inc. on March 22, 2001. The
annual insurance bonus described in this letter shall not be taken into account
for purposes of determining the “Current Compensation Package” under the Change
in Control Agreement and shall be paid independently of any other payment under
the Change in Control Agreement.

 

Miscellaneous

 

This Agreement shall not be amended, altered or modified and no term may be
waived without the written consent of the Company and you and the Trustee. The
Company has no rights or interest in the death proceeds or in the cash surrender
value of the Policy. The Company and you agree that the value of any bonuses you
receive pursuant to this Agreement shall not be considered as compensation,
salary or any other earnings (regardless of how designated) for purposes of
determining any benefit under any of the plans, policies or arrangements of the
Company or SunTrust Banks, Inc. or any affiliate, including but not limited to,
pension, retirement, bonus, severance or any other agreement, and that this
Agreement is not and shall not be construed as an employee benefit plan subject
to ERISA. This Agreement shall be governed by the laws of the state of Georgia
(excluding its choice-of-law rules). Failure of the Company or you to enforce
any of the provisions of this Agreement shall not be considered a waiver of that
provision or any other provision. This Agreement shall be binding on the Trustee
and its successors and assigns; on the beneficiaries and distributes of the
Trust; and on your estate, executors, personal representatives, heirs, devisees
and issue.

 

Conclusion

 

We know that these insurance benefits are important to you and your family, and
we wanted to take appropriate steps to protect them. If you have any questions
about this Agreement, please don’t hesitate to call me. I can be reached at ST
Net 340-6479.

--------------------------------------------------------------------------------

Mr. James M. Wells III

August 10, 2004

Page 4

 

You and the Trustee should sign below to indicate your agreement to the terms
and conditions of this Agreement. Return one copy of this signed Agreement to
me. Upon your signature and the signature of the Trustee, this Agreement is
effective as of December 17, 2003, and it supersedes any and all other
agreements, including the letter agreement dated February 20, 2004, with respect
to the bonus arrangement described herein.

 

Sincerely,

 

Jo Anne Rioli Moeller

Senior Vice President

Compensation and Executive Benefits

 

Enclosures

 

Copy to: Claire Craighill

--------------------------------------------------------------------------------

Mr. James M. Wells III

August 10, 2004

Page 5

 

Consent of James M. Wells III

 

I have seen, understand and agree to the terms of this letter:

 

/s/ James M. Wells III

--------------------------------------------------------------------------------

 

8/19/04

--------------------------------------------------------------------------------

James M. Wells III

 

Date:

/s/ witness

--------------------------------------------------------------------------------

 

8/19/04

--------------------------------------------------------------------------------

Witness

 

Date:

 

Consent of Trustee

 

On behalf of SunTrust Bank, Trustee, I have seen, understand and agree to the
terms of this letter:

 

/s/ trustee

--------------------------------------------------------------------------------

 

8/20/04

--------------------------------------------------------------------------------

By:

 

Date:

Title:

   

/s/ witness

--------------------------------------------------------------------------------

 

8/20/04

--------------------------------------------------------------------------------

Witness

 

Date:

 

 

--------------------------------------------------------------------------------

Jim Wells: Substitute ELI Payments, Insurance Bonus and Insurance Premiums

 

Part I: Premiums to Age 65

 

The following provisions in this Part I reflect the bonus arrangement originally
designed for Jim Wells in substitution of his ELI Plan participation. The
objective is to have the same after-tax annual cash flow for Mr. Wells under the
new arrangement as was anticipated under the “old” ELI arrangement.

 

The Newport Group calculated a flat annual premium bonus to age 65 plus a make
whole (gross-up) bonus to account for taxes payable on the premium amount. The
annual premium calculated is $47,485 and the make whole bonus varies by year to
create the desired cash flow. For 2004, the numbers are as follows:

 

Premium bonus amount

   $ 47,485  

Make whole bonus

   $ 17,929  

After-tax compensation received*

   $ 39,019  

Less: Pacific Life premium paid

   $ (47,485 )

Net outlay / Executive contribution

   $ 8,466  

 

--------------------------------------------------------------------------------

* Premium bonus amount + make whole bonus x (1 - Wells’ marginal federal and
state effective tax rate)

[$47,485 + $17,929 = $65,414 x (1 - 40.35%) = $65,414 x 59.65% = $39,019]

 

Results:

 

  •   SunTrust pays to Mr. Wells an annual bonus each year to age 65 an amount
equal to the projected premium plus a decreasing make whole bonus (SunTrust
outlay is approximately $416,000 in premium and make whole bonuses over the next
seven years)

 

  •   Mr. Wells pays federal and state taxes on the annual bonuses
(approximately $168,000 over the next seven years)

 

  •   Mr. Wells has after-tax cash compensation in hand and pays $47,485 annual
premium to Pacific Life to age 65 as scheduled ($332,395 total over the next
seven years)

 

  •   Net cash outlay for Mr. Wells is the same as projected under the ELI Plan

 

Part II: Premiums to Age 70

 

Mr. Wells has asked to pay his insurance premiums to age 70, rather than to age
65, in order to decrease his annual outlay and to reduce gift taxes. BCG
calculated a level annual premium amount of $27,700 to age 70 that has the same
cumulative cash flow as the shorter duration $47,485 annual premium.

 

SunTrust is willing to accommodate Mr. Wells’ request to allow him to pay
premiums to age 70, but does not want the additional administration issues
associated with continuing payments past 65. Therefore, SunTrust proposes the
following:

 

  •   SunTrust will pay the annual premium bonuses and the make-whole bonuses
based on the age 65 premium that was originally calculated and communicated.
Payments stop at age 65.

 

  •   Mr. Wells1 will pay premiums equal to the amount calculated by BCG for the
age 70 premium to Pacific Life for 12 years. Mr. Wells receives no additional
payments from SunTrust after he attains age 65.

--------------------------------------------------------------------------------

1 Premiums are actually paid by a trust established by Mr. Wells. The trust owns
the insurance policy.

 

1

--------------------------------------------------------------------------------

Results:

 

  •   No change to SunTrust outlay

 

  •   Mr. Wells has additional net income of $19,785 for the first seven years
(total $138,495) and then an additional outlay of $27,700 for five years (total
$138,500).

 

Additional Requirements:

 

  •   Mr. Wells’ annual premium payments to age 65 must be at least equal to the
projected premium amount to age 70 (see Part II - $27,700)

 

  •   If annual premium payments are less than $27,700, SunTrust may adjust the
annual premium and / or make whole bonus

 

  •   Mr. Wells’ death benefit to age 70 must at least equal the ELI death
benefit he would have received

 

  •   From age 65 to 70, Mr. Wells commits to maintaining insurance coverage in
line with the above.

 

The Pacific Life policy may be exchanged for another insurance policy on Mr.
Wells’ life, provided that the additional requirements outlined above continue
to be satisfied.

 

2

--------------------------------------------------------------------------------

SunTrust Bank   Exhibit A

 

162 Bonus Plan

INFORCE POLICY PROJECTION - Mr. James M. Wells, III   Premium Bonus plus “Make
Whole” Bonus

Bonus to Age 65- Pay Premiums to Age 65

 

Year

--------------------------------------------------------------------------------

   Age

--------------------------------------------------------------------------------

   SunTrust Bank

--------------------------------------------------------------------------------

    Executive

--------------------------------------------------------------------------------

   (11)

--------------------------------------------------------------------------------

    (12)

--------------------------------------------------------------------------------

        (1)

--------------------------------------------------------------------------------

   (2)

--------------------------------------------------------------------------------

   (3)

--------------------------------------------------------------------------------

   (4)

--------------------------------------------------------------------------------

    (5)

--------------------------------------------------------------------------------

   (6)

--------------------------------------------------------------------------------

   (7)

--------------------------------------------------------------------------------

   (8)

--------------------------------------------------------------------------------

    (9)

--------------------------------------------------------------------------------

   (10)

--------------------------------------------------------------------------------

           Premium
Bonus

--------------------------------------------------------------------------------

   “Make
Whole”
Bonus

--------------------------------------------------------------------------------

   Premium
Recovery

--------------------------------------------------------------------------------

  

After

Tax

Outlay

--------------------------------------------------------------------------------

    Annual
Policy
Premium

--------------------------------------------------------------------------------

   “Make
Whole”
Bonus

--------------------------------------------------------------------------------

   After-tax
Compensation*

--------------------------------------------------------------------------------

  

Total

Net After-
tax Outlay

--------------------------------------------------------------------------------

    EOY
Cash
Value

--------------------------------------------------------------------------------

  

EOY

Death
Benefit

--------------------------------------------------------------------------------

   Current
Employee
Outlay

--------------------------------------------------------------------------------

    Difference

--------------------------------------------------------------------------------

                                                = (7) - (5)

--------------------------------------------------------------------------------

                    = (11) - (8)

--------------------------------------------------------------------------------

 

2003

   57      0      0      297,975      (297,975 )     0      0      0      0    
138,069    2,600,000                 

2004

   58      47,485      17,929      0      39,248       47,485      17,929     
39,019      8,466     195,465    2,600,000      8,466       0  

2005

   59      47,485      16,778      0      38,558       47,485      16,778     
38,333      9,152     238,873    2,704,000      9,152       0  

2006

   60      47,485      14,669      0      37,292       47,485      14,669     
37,075      10,410     282,510    2,812,160      10,410       0  

2007

   61      47,485      12,726      0      36,127       47,485      12,726     
35,916      11,569     326,172    2,924,648      11,569       0  

2008

   62      47,485      10,440      0      34,755       47,485      10,440     
34,552      12,933     369,582    3,041,632      12,933       0  

2009

   63      47,485      7,553      0      33,023       47,485      7,553     
32,830      14,655     414,487    3,163,296      14,655       0  

2010

   64      47,485      3,887      0      30,823       47,485      3,887     
30,644      16,841     461,217    3,289,828      16,841       0  

2011

   65      0      0      0      0       0      0      0      0     477,009   
1,644,914      0       0  

2012

   66      0      0      0      0       0      0      0      0     492,768   
1,644,914      0       0  

2013

   67      0      0      0      0       0      0      0      0     508,398   
1,644,914      0       0  

2014

   68      0      0      0      0       0      0      0      0     579,454   
1,644,914      0       0  

2015

   69      0      0      0      0       0      0      0      0     600,171   
1,644,914      0       0  

2016

   70      0      0      0      0       0      0      0      0     620,991   
1,644,914      0       0  

2017

   71      0      0      0      0       0      0      0      0     641,861   
1,644,914      0       0  

2018

   72      0      0      0      0       0      0      0      0     662,722   
1,644,914      0       0  

2019

   73      0      0      0      0       0      0      0      0     683,512   
1,644,914      0       0  

2020

   74      0      0      0      0       0      0      0      0     704,177   
1,644,914      0       0  

2021

   75      0      0      0      0       0      0      0      0     724,688   
1,644,914      0       0  

2022

   76      0      0      0      0       0      0      0      0     744,853   
1,644,914      0       0  

2023

   77      0      0      0      0       0      0      0      0     764,505   
1,644,914      0       0  

2024

   78      0      0      0      0       0      0      0      0     783,467   
1,644,914      0       0  

2025

   79      0      0      0      0       0      0      0      0     801,686   
1,644,914      0       0  

2026

   80      0      0      0      0       0      0      0      0     818,673   
1,644,914      0       0  

2027

   81      0      0      0      0       0      0      0      0     834,168   
1,644,914      0       0  

2028

   82      0      0      0      0       0      0      0      0     847,907   
1,644,914      0       0  

2029

   83      0      0      0      0       0      0      0      0     859,570   
1,644,914      0       0  

2030

   84      0      0      0      0       0      0      0      0     868,620   
1,644,914      0       0  

2031

   85      0      0      0      0       0      0      0      0     874,362   
1,644,914      0       0  

2032

   86      0      0      0      0       0      0      0      0     876,290   
1,644,914      0       0  

2033

   87      0      0      0      0       0      0      0      0     873,573   
1,644,914      0       0  

2034

   88      0      0      0      0       0      0      0      0     865,135   
1,644,914      0       0  

2035

   89      0      0      0      0       0      0      0      0     849,692   
1,644,914      0       0  

2036

   90      0      0      0      0       0      0      0      0     825,678   
1,644,914      0       0  

2037

   91      0      0      0      0       0      0      0      0     791,065   
1,644,914      0       0  

2038

   92      0      0      0      0       0      0      0      0     743,195   
1,644,914      0       0  

2039

   93      0      0      0      0       0      0      0      0     678,560   
1,644,914      0       0  

2040

   94      0      0      0      0       0      0      0      0     592,491   
1,644,914      0       0        Totals:    $ 332,395    $ 83,982    $ 297,975   
$ (48,148 )   $ 332,395    $ 83,982    $ 248,369    $ 84,026               $
84,026     $ 0                                                                
PV @ 8 %               PV @ 8 %     PV @ 8 %                                   
                         $ 60,316               $ 60,316     $ 0  

 

Values provided by the insurer and based on current expenses and an interest
crediting rate of 5.25%. The current rate for Pacific Life's Versa-Flex IV
universal life product is 5.25% which is not guaranteed and is subject to
change.

 

--------------------------------------------------------------------------------

* Includes taxes payable on SunTrust bonus to employee at an assumed effective
income tax rate (Federal, State and FICA) of 40.35%. Does not include gift
taxes.

--------------------------------------------------------------------------------

SunTrust Bank   Exhibit B

 

162 Bonus Plan

 

INFORCE POLICY PROJECTION - Mr. James M. Wells, III   Premium Bonus plus ”Make
Whole” Bonus

Bonus to Age 65- Pay Premiums to Age 70

 

Year

--------------------------------------------------------------------------------

   Age

--------------------------------------------------------------------------------

   SunTrust Bank

--------------------------------------------------------------------------------

    Executive

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

   

--------------------------------------------------------------------------------

        (1)

--------------------------------------------------------------------------------

   (2)

--------------------------------------------------------------------------------

   (3)

--------------------------------------------------------------------------------

   (4)

--------------------------------------------------------------------------------

    (5)

--------------------------------------------------------------------------------

   (6)

--------------------------------------------------------------------------------

   (7)

--------------------------------------------------------------------------------

   (8)

--------------------------------------------------------------------------------

    (9)

--------------------------------------------------------------------------------

   (10)

--------------------------------------------------------------------------------

   (11)

--------------------------------------------------------------------------------

    (12)

--------------------------------------------------------------------------------

        Premium
Bonus

--------------------------------------------------------------------------------

   “Make
Whole”
Bonus

--------------------------------------------------------------------------------

   Premium
Recovery

--------------------------------------------------------------------------------

  

After

Tax

Outlay

--------------------------------------------------------------------------------

    Annual
Policy
Premium

--------------------------------------------------------------------------------

   “Make
Whole”
Bonus

--------------------------------------------------------------------------------

   After-tax
Compensation*

--------------------------------------------------------------------------------

  

Total

Net

After-tax
Outlay

--------------------------------------------------------------------------------

    EOY
Cash
Value

--------------------------------------------------------------------------------

  

EOY

Death

Benefit

--------------------------------------------------------------------------------

   Current
Employee
Outlay

--------------------------------------------------------------------------------

    Difference

--------------------------------------------------------------------------------

                                                = (7) - (5)

--------------------------------------------------------------------------------

                    = (11) - (8)

--------------------------------------------------------------------------------

 

2003

   57      0      0      297,975      (297,975 )     0      0      0      0    
138,069    2,600,000                 

2004

   58      47,485      17,929      0      39,248       27,700      17,929     
39,019      (11,319 )   176,704    2,600,000      8,466       19,785  

2005

   59      47,485      16,778      0      38,558       27,700      16,778     
38,333      (10,633 )   199,539    2,704,000      9,152       19,785  

2006

   60      47,485      14,669      0      37,292       27,700      14,669     
37,075      (9,375 )   221,222    2,812,160      10,410       19,785  

2007

   61      47,485      12,726      0      36,127       27,700      12,726     
35,916      (8,216 )   241,422    2,924,648      11,569       19,785  

2008

   62      47,485      10,440      0      34,755       27,700      10,440     
34,552      (6,852 )   259,744    3,041,632      12,933       19,785  

2009

   63      47,485      7,553      0      33,023       27,700      7,553     
32,830      (5,130 )   277,957    3,163,296      14,655       19,785  

2010

   64      47,485      3,887      0      30,823       27,700      3,887     
30,644      (2,944 )   296,212    3,289,828      16,841       19,785  

2011

   65      0      0      0      0       27,700      0      0      27,700    
327,867    1,644,914      0       (27,700 )

2012

   66      0      0      0      0       27,700      0      0      27,700    
360,441    1,644,914      0       (27,700 )

2013

   67      0      0      0      0       27,700      0      0      27,700    
393,921    1,644,914      0       (27,700 )

2014

   68      0      0      0      0       27,700      0      0      27,700    
478,778    1,644,914      0       (27,700 )

2015

   69      0      0      0      0       27,700      0      0      27,700    
519,106    1,644,914      0       (27,700 )

2016

   70      0      0      0      0       0      0      0      0     533,708   
1,644,914      0       0  

2017

   71      0      0      0      0       0      0      0      0     547,747   
1,644,914      0       0  

2018

   72      0      0      0      0       0      0      0      0     561,083   
1,644,914      0       0  

2019

   73      0      0      0      0       0      0      0      0     573,561   
1,644,914      0       0  

2020

   74      0      0      0      0       0      0      0      0     585,017   
1,644,914      0       0  

2021

   75      0      0      0      0       0      0      0      0     595,300   
1,644,914      0       0  

2022

   76      0      0      0      0       0      0      0      0     604,051   
1,644,914      0       0  

2023

   77      0      0      0      0       0      0      0      0     610,907   
1,644,914      0       0  

2024

   78      0      0      0      0       0      0      0      0     615,459   
1,644,914      0       0  

2025

   79      0      0      0      0       0      0      0      0     617,402   
1,644,914      0       0  

2026

   80      0      0      0      0       0      0      0      0     615,848   
1,644,914      0       0  

2027

   81      0      0      0      0       0      0      0      0     610,110   
1,644,914      0       0  

2028

   82      0      0      0      0       0      0      0      0     599,411   
1,644,914      0       0  

2029

   83      0      0      0      0       0      0      0      0     582,793   
1,644,914      0       0  

2030

   84      0      0      0      0       0      0      0      0     558,878   
1,644,914      0       0  

2031

   85      0      0      0      0       0      0      0      0     525,877   
1,644,914      0       0  

2032

   86      0      0      0      0       0      0      0      0     482,047   
1,644,914      0       0  

2033

   87      0      0      0      0       0      0      0      0     424,905   
1,644,914      0       0  

2034

   88      0      0      0      0       0      0      0      0     351,291   
1,644,914      0       0  

2035

   89      0      0      0      0       0      0      0      0     257,403   
1,644,914      0       0  

2036

   90      0      0      0      0       0      0      0      0     138,330   
1,644,914      0       0  

2037

   91      0      0      0      0       0      0      0      0     LAPSE   
LAPSE      0       0        Totals:    $ 332,395    $ 83,982    $ 297,975    $
(48,148 )   $ 332,400    $ 83,982    $ 248,369    $ 84,031               $
84,026     $ (5 )                                                              
PV @ 8 %               PV @ 8 %     PV @ 8%                                     
                         $ 21,841               $ 60,316     $ 35,625  

 

Values provided by the insurer and based on current expenses and an interest
crediting rate of 5.25%. The current rate for Pacific Life's Versa Flex IV
universal life product is 5.25% which is not guaranteed and is subject to
change. Policy projected to lapse at Mr. Wells' age 91 under current crediting
rate assumptions.

 

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* Includes taxes payable on SunTrust bonus to employee at an assumed effective
income tax rate (Federal, State and FICA) of 40.35%. Does not include gift
taxes.