Exhibit 10.18


 


SUMMARY OF SPLIT DOLLAR

LIFE INSURANCE PLANS


 


In 2003, CoBiz
Inc.’s wholly owned subsidiary, CoBiz Bank, N.A. (the “Bank”), began providing
split dollar life insurance for senior officers of the Bank who are designated
by the Compensation Committee of its Board of Directors.  Under those arrangements, the Bank purchases
life insurance on each participant and is the owner of the policy with all
incidents of ownership.  The Bank and the
participant enter into an agreement obligating the Bank to maintain the
insurance and providing for the allocation of death benefits.  The beneficiaries designated by the
participant are entitled to receive a portion of the death benefits equal to
the lesser of (a) the participant’s annual salary for the most recent calendar
year in which the employee was in the active and full-time employ of the Bank
or (b) the excess of the total death benefit over the cash value of the
policy.  The balance of the death
benefits are paid to the Bank.  If the
participant’s employment with the Bank terminates before normal retirement age,
except that the agreement shall not terminate if such separation from service
occurs as a result of the permanent disability of the employee or such
separation from service occurs within five years of a change of control, the
insurance is cancelled and the participant has no further rights under the
agreement.  If the participant retires at
or after normal retirement age, the insurance and the agreement (including the
Bank’s obligation to pay the insurance premiums) remain in place.


 


In 2005, the
Compensation Committee of the Bank’s Board of Directors determined to provide
supplemental split dollar insurance to executive officers of the Bank who are
designated by that Committee.  All of the
executive officers of the Bank were participants in the split dollar insurance
arrangements put in place in 2003 as described above.  Under the supplemental split dollar payments,
the Bank purchases life insurance on each participant and is the owner of the
policy with all incidents of ownership. 
The Bank and the participant enter into an agreement obligating the Bank
to maintain the insurance and providing for the allocation of death benefits.  The beneficiaries designated by the
participant are entitled to receive a portion of the death benefits equal to
the lesser of (a) ten times the participant’s annual salary at the time the
arrangement is put in place or (b) the excess of the total death benefit over
the cash value of the policy.  The
balance of the death benefits are paid to the Bank.  Upon termination of the participant’s
employment (other than as a result of death), whether before, at or after
normal retirement age, the insurance is cancelled and the participant has no
further rights under the agreement.


 


All of the
Named Executive Officers of CoBiz Inc. (i.e., the chief executive
officer and each of the four next most highly compensated executive officers
during 2004) are participants in both the basic and the supplemental split
dollar life insurance arrangements.  All
of the Named Executive Officers are also executive officers of the Bank.  They include the Chairman of the Board and
Chief Executive Officer of CoBiz Inc., the Vice Chairman of the Board of CoBiz
Inc., the President of CoBiz Inc., the Executive Vice President and CFO of
CoBiz Inc. and the Executive Vice President and Chief Credit Officer of the
Bank.


 


Financial
Designs, Ltd., a wholly-owned subsidiary of CoBiz Inc., serves as the
administrator of the split dollar life insurance arrangements.  The administrator selects the insurance
company that issues the policies and the terms and conditions of such
policies.  The


 





















 


Bank serves as the named
fiduciary of the arrangements for purposes of the Employee Retirement Income
Security Act of 1974, as amended, and is responsible for their overall
supervision and management, all questions relating to the interpretation of the
agreements and all decisions pertaining to the review of denials of benefit
claims.


 


The expenses
incident to the split dollar arrangements, including the compensation of
attorneys, advisors, actuaries, and other persons providing technical and
clerical assistance, are paid by the Bank.


 


The Bank may
discontinue the practice of providing split dollar life insurance to officers,
or may change the terms on which such insurance is offered, at any time, but
cannot terminate or amend any agreement already entered into without the consent
of the participant.


 


The Bank’s policies
of providing split dollar life insurance for selected senior officers and
supplemental split dollar life insurance for selected executive officers have not
been reduced to writing in formal plans, but may constitute compensatory plans
or arrangements for purposes of Item 601(10)(iii)(A) of Regulation S-K.


 


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