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JOINT BENEFICIARY DESIGNATION


 


AGREEMENT


 


 


                                                                                           
INSURER:                                                                                        


                                                                                           
POLICY NUMBER:                                                                                                


 


                                                                                            INSURER:                                                                                                   


                                                                                            POLICY NUMBER:                                                                        


 


                                                                                            Bank:                                                SOUTHERN FIRST BANK,
NATIONAL 


                                                                                                      ASSOCIATION, F/N/A Greenville
First Bank             


                                                                                            Insured:                                                                                            


 


                                                                                            Relationship of Insured to Bank:      Executive


 


The respective rights and duties
of the Bank and the Insured in the above-referenced policy(ies) shall be
pursuant to the terms set forth below:


 


I.          DEFINITIONS


 


Refer to the
contract(s) for the policy(ies) for the definition of any terms in this Agreement
that are not defined herein.  If the definition of a term in the policy(ies) is
inconsistent with the definition of a term in this Agreement, then the
definition of the term as set forth in this Agreement shall supersede and
replace the definition of the terms as set forth in the policy(ies).


 


II.        POLICY
TITLE AND OWNERSHIP


 


Title and
ownership shall reside in the Bank for its use and for the use of the Insured
all in accordance with this Agreement.  The Bank alone may, to the extent of
its interest, exercise the right to borrow or withdraw on the policy(ies) cash
values.  Where the Bank and the Insured (or assignee, with the consent of the
Insured) mutually agree to exercise the right to increase the coverage under
the subject Joint Beneficiary Designation policy, then, in such event, the
rights, duties and benefits of the parties to such increased coverage shall
continue to be subject to the terms of this Agreement.


 


 


 










 






 


 


III.       BENEFICIARY
DESIGNATION RIGHTS


 


 


The Insured (or
assignee) shall have the right and power to designate a beneficiary or
beneficiaries to receive the Insured’s share of the proceeds payable upon the
death of the Insured, and to elect and change a payment option for such
beneficiary, subject to any right or interest the Bank may have in such
proceeds, as provided in this Agreement.


 


IV.       PREMIUM
PAYMENT METHOD


 


Subject to the
Bank’s absolute right to surrender or terminate the policy(ies) at any time and
for any reason, the Bank shall pay an amount equal to the planned premiums and
any other premium payments that might become necessary to keep the policy(ies)
in force.


 


V.        TAXABLE
BENEFIT


 


Annually the
Insured will receive a taxable benefit equal to the imputed value of insurance
as required by the Internal Revenue Service.  The Bank (or its administrator)
will report to the Insured the amount of imputed income each year on Form W-2
or its equivalent.


 


VI.       DIVISION
OF DEATH PROCEEDS


 


Subject to
Paragraphs VII and VIII herein, the division of the death proceeds of the
policy(ies) are as follows:


 


A.        If the Insured is employed by the Bank, at the time of death,
the Insured’s beneficiary(ies), designated in accordance with Paragraph III,
shall be entitled to an amount equal to the lower of three (3) times the amount
of the Insured's then salary (without bonuses) or the net-at-risk insurance
portion of the proceeds from the policy(ies) in effect from time to time.  The
net-at-risk insurance portion shall be the total death proceeds less the cash
value of the policy(ies). The Bank shall be entitled to the remainder of the
proceeds.


 


B.        If the Insured is not employed, for whatever reason, by
the Bank at the time of death, the Bank shall be entitled to all the
death proceeds.   


 


VII.     OWNERSHIP
OF THE CASH SURRENDER VALUE OF THE POLICY


 


The Bank shall
at all times be entitled to an amount equal to the cash value of the
policy(ies), as that term is defined in the policy(ies) contract(s), less any
policy(ies) loans and unpaid interest or cash withdrawals previously incurred
by the Bank and any applicable surrender charges.  Such cash value shall be
determined as of the date of surrender or death as the case may be.

 


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VIII.    TERMINATION OF AGREEMENT


 


A.        This Agreement shall terminate upon the occurrence of any one
of the following:


 


1.         The Insured shall leave the employment of the Bank for
whatever reason; or


 


2.         Surrender, lapse, or other termination of the policy(ies) by
the Bank.


 


IX.       INSURED’S
OR ASSIGNEE’S ASSIGNMENT RIGHTS


 


The Insured may
not, without the written consent of the Bank, assign to any individual, trust
or other organization, any right, title or interest in the subject policy(ies)
nor any rights, options, privileges or duties created under this Agreement.


 


X.        AGREEMENT
BINDING UPON THE PARTIES


 


This Agreement
shall bind the Insured and the Bank, their heirs, successors, personal
representatives and assigns.


 


XI.       ADMINISTRATIVE
AND CLAIMS PROVISIONS 


 


            The
following provisions are part of this Agreement and are intended to meet the
requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”):


 


A.        Plan
Administrator.


 


The “Plan
Administrator” of this Joint Beneficiary Designation Agreement shall be
Southern First Bank, National Association, f/n/a Greenville First Bank.  As
Plan Administrator, the Bank shall be responsible for the management, control,
and administration of this Agreement as established herein.  The Plan
Administrator may delegate to others certain aspects of the management and
operation responsibilities of the Agreement, including the employment of
advisors and the delegation of any ministerial duties to qualified individuals.

 


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B.        Basis of Payment of Benefits.  


 


Direct payment
by the Insurer is the basis of payment of benefits under this Agreement, with
those benefits in turn being based on the payment of premiums as provided in
this Agreement. 


 


C.        Claim
Procedures.


 


Claim forms or
claim information as to the subject policy(ies) can be obtained by contacting
the Plan Administrator.  When the Plan Administrator has a claim which may be
covered under the provisions described in the insurance policy(ies), they
should contact the office named above, and they will either complete a claim
form and forward it to an authorized representative of the Insurer or advise
the Plan Administrator what further requirements are necessary.  The Insurer
will evaluate and make a decision as to payment.  If the claim is payable, a
benefit check will be issued in accordance with the terms of this Agreement.


 


In the event
that a claim is not eligible under the policy(ies), the Insurer will notify the
Plan Administrator of the denial pursuant to the requirements under the terms
of the policy(ies).  If the Plan Administrator is dissatisfied with the denial
of the claim and wishes to contest such claim denial, they should contact the office
named above and they will assist in making an inquiry to the Insurer.  All
objections to the Insurer’s actions should be in writing and submitted to the
office named above for transmittal to the Insurer.


 


XII.     GENDER


 


Whenever in this
Agreement words are used in the masculine or neutral gender, they shall be read
and construed as in the masculine, feminine or neutral gender, whenever they
should so apply.


 


XIII.    INSURANCE
COMPANY NOT A PARTY TO THIS AGREEMENT


 


The Insurer(s)
shall not be deemed a party to this Agreement, but will respect the rights of
the parties as herein developed upon receiving an executed copy of this
Agreement. Payment or other performance in accordance with the policy(ies)
provisions shall fully discharge the Insurer(s) from any and all liability.

 


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XIV.    AMENDMENT OR
REVOCATION, AND EXCHANGE OF POLICY


 


Subject to the
Bank’s sole and absolute right to surrender or terminate any and all life
insurance policy(ies) that are the subject matter of this Agreement, it is
agreed by and between the parties hereto that, during the lifetime of the
Insured, this Agreement may be amended or revoked at any time or times, in
whole or in part, by the mutual written consent of the Insured and the Bank. 
The Bank may, however, unilaterally and without the consent of the Insured,
exchange any life insurance policy(ies) that are the subject matter of this
Agreement, with or without replacing said policy(ies) and, in the event of a
same or similar exchange, the Insured expressly agrees to the same.


 


XV.     EFFECTIVE DATE


 


            The Effective Date of this Agreement shall be
January 1, 2009.


 


XVI.    SEVERABILITY AND INTERPRETATION


 


If a provision
of this Agreement is held to be invalid or unenforceable, the remaining
provisions shall nonetheless be enforceable according to their terms.  Further,
in the event that any provision is held to be overbroad as written such
provision shall be deemed amended to narrow its application to the extent
necessary to make the provision enforceable according to law and enforced as
amended.


 


XVII.  TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF CHANGES IN THE
LAW, RULES OR REGULATIONS


 


The Bank is
entering into this Agreement upon the assumption that certain existing tax and
accounting laws, rules and regulations will continue in effect in their current
form.  If any said assumptions should change and said change has a detrimental
effect on this Joint Beneficiary Designation Agreement, then the Bank reserves
the right to terminate or modify this Agreement accordingly.  


 


XVIII. APPLICABLE LAW


 


The laws of the State of South Carolina shall
govern the validity and interpretation of this Agreement.

 


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Executed
at ____________, _____________ this ______ day of ___________, 2009.


 


 


                                                          BANK


 


                                                                        SOUTHERN
FIRST BANK, NATIONAL


ASSOCIATION,
F/N/A GREENVILLE


FIRST BANK


                                                                        Greenville,
South Carolina


 


 


                                                                        By:                                                                  


Witness                                                                 (Bank Officer other than Insured)              Title


 


 


 


                                                                                                                                                


Witness                                                           Insured
– 


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