EX-10.2






SECOND AMENDED AND RESTATED NEVADA SECURITY BANK




SPLIT DOLLAR AGREEMENT




	 	 	 
	Insurer:

	 	New York Life Insurance Company

Policy Number 56609568
	
 
	 	Sun Life Assurance Company

Policy Number S02700007
	Bank:

	 	Nevada Security Bank
	Insured:

	 	Harold G. Giomi
	Relationship of Insured to Bank:

	 	Executive
	Effective Date:

	 	September 20, 2007






The Bank and Insured as of the Effective Date aforementioned hereby enters into this Second
Amended and Restated Nevada Security Bank Split Dollar Agreement (hereinafter “Agreement”) which
amends, supersedes and replaces in the entirety the prior “First Amended and Restated Nevada
Security Bank Split Dollar Agreement,” entered into by and between these same parties dated January
24, 2006. The respective rights and duties of Nevada Security Bank (hereinafter the “Bank”) and
the Insured/Executive in the above-referenced policies (referred to as “Policy”) shall be pursuant
to the terms set forth below:



1. DEFINITIONS.



Unless otherwise defined herein, the meaning of any defined term in this Agreement shall have
meaning as set forth in the Policy. If the definition of a term in the Policy 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. For
the purposes of this Agreement, the terms “Insured” and “Executive,” and the terms “Bank” and
“Employer” shall have the same meaning.




1.1 Termination for Cause. The term “Termination for Cause” shall mean
termination of Employment of the Executive by reason of any of the following:

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	 	(A)	 	Dishonest or fraudulent conduct by Executive with respect to
the performance of Executive’s duties with Bank or its parent corporation (The
Bank Holdings);






	 	(B)	 	Conduct by Executive that materially discredits Bank or its
parent corporation or any of its subsidiaries or is materially detrimental to
the reputation of the Bank or its parent corporation or any of its
subsidiaries, including but not limited to conviction or a plea of nolo
contendere of Executive of a felony or crime involving moral turpitude;






	 	(C)	 	Executive’s willful misconduct or gross negligence in
performance of Executive’s duties under this Agreement, including but not
limited to Executive’s refusal to comply in any material respect with the legal
directives of the Executive’s immediate supervisor or the Board of Directors
(hereinafter the “Board”), if such misconduct or negligence has not been
remedied or is not being remedied to the Board’s reasonable satisfaction within
thirty (30) days after written notice, including a detailed description of the
misconduct or negligence, has been delivered by the Board to Executive;






	 	(D)	 	An order or directive from a state or federal banking
regulatory agency requesting or requiring removal of Executive or a finding by
any such agency that Executive’s performance threatens the safety or soundness
of Bank, its parent corporation or any of its subsidiaries;



 



	 	(E)	 	Material breach of Executive’s fiduciary duties to Bank if such
breach has not been remedied or is not being remedied to the Board’s reasonable
satisfaction within thirty (30) days after written notice, including a detailed
description of the breach, has been delivered by the Board to Executive;






	 	(F)	 	The Executive is convicted of a felony or misdemeanor
involving moral turpitude;






	 	(G)	 	State and/or Federal banking regulators request or order
termination of this Agreement; or






	 	(H)	 	The Executive commits any act which could cause termination
of Coverage under the Bank’s Blanket Bond as to the Executive, as
distinguished from termination of such coverage as to the Bank as a whole.






1.2 Voluntary Termination. The term “Voluntary Termination” shall mean
termination elected by the Executive.




1.3 Change in Control. A “Change in Control” shall mean the earliest
occurrence of one of the following events:




A. A Change In Ownership of The Bank Holdings or the Employer.




A change in ownership of The Bank Holdings (TBH) or the Employer occurs
on the date that any person (or group of persons) acquires ownership of stock
of TBH or the Employer that, together with stock held by such person or
group, constitutes more than fifty percent (50%) of the total fair market
value or total voting power of the stock of TBH or the Employer,
respectively.




B. A Change in Effective Control of TBH or the Employer.




A change in effective control of TBH or the Employer occurs on the date
that:




	 	1.	 	Any person (or group of persons) acquires (or
has acquired during the twelve (12) month period ending on the date of
the most recent acquisition by such person or persons) ownership of
stock of TBH or the Employer possessing thirty-five percent (35%) or
more of the total voting power of the stock of TBH or the Employer,
respectively; or






	 	2.	 	A majority of members of TBH’s or the
Employer’s Board is replaced during any twelve (12) month period by
directors whose appointment or election is not endorsed by a majority
of the members of TBH’s or the Employer’s Board, respectively prior to
the date of the appointment or election.






	 	C.	 	A Change in Ownership of a Substantial Portion of TBH’s or
the Employer’s Assets.






A change in the ownership of a substantial portion of TBH’s or the
Employer’s assets occurs on the date that any person (or group of persons)
acquires (or has acquired during the twelve (12) month period ending on the
date of the most recent acquisition by such person or persons) assets from
TBH or the Employer, respectively that have a total gross fair market value
equal to, or more than, forty percent (40%) of the total gross fair market
value of all of the assets of TBH or the Employer, respectively immediately
prior to such acquisition or acquisitions.



For the purpose of this Agreement, transfers of the outstanding voting securities of TBH or
the Employer made on account of deaths or gifts, transfers between family members, former spouses
or transfers to a qualified retirement plan maintained by TBH or the Employer shall not be
considered in determining whether there has been a Change in Control.




1.4 Disability/Disabled. For the purpose of this Agreement, an Executive will
be considered disabled if:




	 	(A)	 	He is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period
of not less than twelve (12) months, or






	 	(B)	 	He is, by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected
to last for a continuous period of not less than twelve (12) months, receiving
income replacement benefits for a period of not less than three (3) months
under an accident and health plan covering employees of Participant’s employer.






	2.	 	POLICY TITLE AND OWNERSHIP.





The parties agree that title and ownership in the Policy 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 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 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.




	3.	 	BENEFICIARY DESIGNATION RIGHTS.





The Bank and Insured agree that 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.




	4.	 	PREMIUM PAYMENT METHOD.





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




	5.	 	TAXABLE BENEFIT.





Annually the Insured will receive a taxable benefit equal to the assumed cost 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. The Executive shall
be responsible for the payment of the income taxes on such imputed income.



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	6.	 	DIVISION OF DEATH PROCEEDS.





Subject to Paragraphs 7 and 9 herein, the parties agree to the division of the death proceeds
of the Policy as follows:




	 	A.	 	Upon the death of the Insured, provided that the Insured is either employed by
the Bank at the time of Insured’s death or that the Insured is no longer employed by
the Bank because he has elected Early or Normal Retirement from the Bank prior to the
Insured’s death (as defined in the Insured’s Executive Supplemental Compensation
Agreement, as amended), then the Insured’s beneficiary(ies) depending on the age of the
Insured at time of death shall be entitled to the following:






	 	i.	 	If the Insured is Sixty-Nine (69) years old or younger at the
time of death, then the Insured’s beneficiary(ies), designated in accordance
with Paragraph 3, shall be entitled to receive a total amount equal to the
lesser of One Million, Three Hundred and Thirteen Thousand, Nine Hundred and
Ninety ($1,313,990) Dollars or one hundred percent (100%) of the Net-at-Risk
portion of the proceeds from the Policy. For the purposes of this Agreement,
the Net-at-Risk insurance portion is the total proceeds of the Policy less the
cash value of the Policy. The Executive may elect to reduce their death benefit
in the future at any time provided that they have written authorization from
their spouse or primary beneficiary.






	 	ii.	 	If the Insured dies after attaining the age of Seventy (70),
but before attaining the age of Eighty (80) years old, then the Insured’s
beneficiary(ies), designated in accordance with Paragraph 3, shall be entitled
to receive a total amount equal to the lesser of Nine Hundred and Nineteen
Thousand, Seven Hundred and Ninety-Three ($919,793) Dollars or one hundred
percent (100%) of the Net-at-Risk portion of the proceeds from the Policy.






	 	iii.	 	If the Insured dies after attaining Eighty (80) years of age,
then the Insured’s beneficiaries, designated in accordance with Paragraph 3,
shall be entitled to receive a total amount equal to the lesser of Five Hundred
and Twenty-Five Thousand, Five Hundred and Ninety-Six ($525,596) Dollars or one
hundred percent (100%) of the Net-at-Risk portion of the proceeds from the
Policy.






	 	B.	 	In the event the Insured is forced to terminate his employment with the Bank as
a result of Disability, then the Insured’s beneficiaries depending on the age of the
Insured at time of death shall be entitled to the same benefit amounts set forth under
Paragraph 6A.






	 	C.	 	Should the Executive be involuntarily terminated before the Early Retirement
Age specified in his Executive Supplemental Compensation Agreement, as amended then
this Agreement shall terminate in accordance with Paragraph 9 and no benefits provided
by this Agreement shall be paid to Insured or Insured’s beneficiary(ies).






	 	D.	 	Should the Executive be Terminated for Cause or should he Voluntarily resign
his positions as an Executive before the Early Retirement Age specified in Insured’s
Executive Supplemental Compensation Agreement, as amended, the beneficiary(ies) will
receive a total of the lesser of Twenty-Five Thousand Dollars ($25,000) in death
benefits or One Hundred Percent (100%) of the Net-at-Risk portion of the proceeds under
the Policy at the time of Insured’s death.






	 	E.	 	The Bank and the Insured (or assignees) shall share in any interest due on the
death proceeds on a pro rata basis as the proceeds due each respectively bears to the
total proceeds, excluding any such interest.






	 	F.	 	In the event that the Policy is terminated by the Bank, other than as a result
of any intentional act of the Insured which results in the termination of the policy,
then the Bank upon the death of the Insured shall pay the benefit specified in
Subparagraphs 6 (A),(B),(C), or (D) to the Insured’s beneficiary(ies), as named on the
last written beneficiary designation in force under the Policy. The amount paid by the
Bank shall be equivalent to the after tax value of the benefits which would have been
paid at the time of the death of the Insured if the Policy had not been terminated.






	7.	 	DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY.





The Bank shall at all times be entitled to an amount equal to the Policy’s cash value, as that
term is defined in the Policy contract, less any Policy 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.




	8.	 	RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS.





In the event the Policy involves an endowment or annuity element, the Bank’s right and
interest in any endowment proceeds or annuity benefits, on expiration of the deferment period,
shall be determined under the provisions of this Agreement by regarding such endowment proceeds or
the commuted value of such annuity benefits as the Policy’s cash value. Such endowment proceeds or
annuity benefits shall be considered to be like death proceeds for the purposes of division under
this Agreement.




	9.	 	CONTINGENT OPTION AND TERMINATION OF AGREEMENT.





9.1 Contingent Option. Upon the Executive being involuntarily terminated before the
Early Retirement Age as specified in his Executive Supplemental Compensation Agreement, as amended,
the Insured (or assignee) to the extent that the Policy has not been previously terminated or paid
out shall have a fifteen (15) day option to receive from the Bank an absolute assignment of the
Policy in consideration of a cash payment to the Bank equal to the cash value of the Policy at the
time of such assignment.



If within said fifteen (15) day period, the Insured fails to exercise said option, fails to
make the entire aforementioned cash payment, or dies, then the option shall terminate and the
Insured (or assignee) agrees that (i) all of the Insured’s rights, interest and claims in the
Policy shall terminate, (ii) all of the Executive’s right, interest and claims in the Agreement
shall terminate, and (iii) the Agreement shall terminate.



The Insured expressly agrees that this Agreement shall constitute sufficient written notice to
the Insured of the Insured’s option to receive an absolute assignment of the Policy as set forth
herein.



9.2 Termination of Agreement. Except as provided in Paragraph 9.1 and 9.3, this
Agreement shall terminate upon distribution of the death benefit proceeds in accordance with
Paragraph 6 above.



9.3 Change of Control. Notwithstanding anything to the contrary, in the event of a
Change in Control whereupon the Executive qualifies for or receives change of control benefits
under Insured’s Executive Supplemental Compensation Agreement, this Agreement shall terminate and
no benefits provided by this Agreement shall be paid to Insured or Insured’s beneficiaries.




	10.	 	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 nor any rights, options,
privileges or duties created under this Agreement.




	11.	 	AGREEMENT BINDING UPON THE PARTIES.





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




	12.	 	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. Named Fiduciary and Plan Administrator.




The “Named Fiduciary and Plan Administrator” of this Joint Beneficiary Designation
Agreement shall be Nevada Security Bank until its resignation or removal by the
Board of Directors. As Named Fiduciary and Plan Administrator, the Bank shall be
responsible for the management, control, and administration of this Joint
Beneficiary Plan as established herein. The Named Fiduciary may delegate to others
certain aspects of the management and operation responsibilities of the Plan,
including the employment of advisors and the delegation of any ministerial duties to
qualified individuals.



B. Funding Policy.




Subject to the Bank’s absolute right to surrender or terminate the Policy at any
time and for any reason, the funding policy for the Agreement shall be to maintain
the subject Policy in force by paying, when due, all premiums required.




C. 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.




D. Claim Procedures.




Claim forms or claim information as to the subject Policy can be obtained by
contacting Benmark, Inc. (800-544-6079). When the Named Fiduciary has a claim which
may be covered under the provisions described in the insurance Policy, 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 Named
Fiduciary 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, the Insurer will notify
the Named Fiduciary of the denial pursuant to the requirements under the terms of
the Policy. If the Named Fiduciary 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.



13. GENDER.



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




	14.	 	INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT.





The Insurer 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 provisions shall fully discharge the Insurer from any and
all liability.



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15. AMENDMENT OR REVOCATION, AND EXCHANGE OF POLICY.



Subject to the Bank’s absolute right to surrender or terminate the Policy at any time and for
any reason, 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 and Insured agree that the Bank may,
however, unilaterally and without the consent of the Insured, exchange any life insurance Policy
that are the subject matter of this Agreement, with or without replacing said Policy, provided the
replacement policy is at the time of exchange of equivalent or better value than the Policy.



16. 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.



17. APPLICABLE LAW.



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



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	18.	 	EFFECT OF THE LIFE INSURANCE POLICY’S CONTESTABILITY CLAUSES





The parties herein understand and agree that the payment of the benefits provided herein are
subject to the Life Insurance Policy’s suicide and contestability clauses and other such clauses,
and if such clauses preclude the Insurer from paying the full death proceeds, then, in such event,
no death benefits of whatever nature shall be payable to Insured’s (or Insured’s Assignee’s)
beneficiary(ies) under this Agreement.




	 	 	Executed at Reno, Nevada this      day of October, 2007.





NEVADA SECURITY BANK


Reno, Nevada



	 	 	 
	By:

	 	By:     
	 

	 	

	Ed Allison, Chairman

	 	Insured: Harold G. Giomi
	 

	 	 






     




	 	 	Witness Witness




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BENEFICIARY DESIGNATION FORM FOR THE

SECOND AMENDED AND RESTATED NEVADA SECURITY BANK

SPLIT DOLLAR AGREEMENT




I hereby revoke all previous beneficiary designations under the First Amended and Restated
Nevada Security Bank Split Dollar Agreement and the original Nevada Security Bank Split Dollar
Agreement, and make the new primary and secondary designations as set forth below.



I. PRIMARY DESIGNATION



(You may refer to the beneficiary designation information prior to completion of this form.)




A. Person(s) as a Primary Designation:



(Please indicate the percentage for each beneficiary.)



Name     Relationship     /      %



Address:     



(Street) (City) (State) (Zip)



Name     Relationship     /      %



Address:     



(Street) (City) (State) (Zip)



Name     Relationship     /      %



Address:     



(Street) (City) (State) (Zip)



Name     Relationship     /      %



Address:     



(Street) (City) (State) (Zip)



B. Estate as a Primary Designation:



My Primary Beneficiary is The Estate of      as set forth



in the last will and testament dated the      day of      ,      and any codicils
thereto.



C. Trust as a Primary Designation:



Name of the Trust:      



Execution Date of the Trust:      /      /      



Name of the Trustee:      



Beneficiary(ies) of the Trust (please indicate the percentage for each beneficiary):


     


     


Is this an Irrevocable Life Insurance Trust?      Yes      No



(If yes and this designation is for a Split Dollar agreement, an Assignment of Rights form should
be completed.)



II. SECONDARY (CONTINGENT) DESIGNATION



A. Person(s) as a Secondary (Contingent) Designation:



(Please indicate the percentage for each beneficiary.)



Name     Relationship     /      %


Address:     



(Street) (City) (State) (Zip)



Name     Relationship     /      %


Address:     



(Street) (City) (State) (Zip)



Name     Relationship     /      %


Address:     



(Street) (City) (State) (Zip)



Name     Relationship     /      %


Address:     



(Street) (City) (State) (Zip)



B. Estate as a Secondary (Contingent) Designation:



My Secondary Beneficiary is The Estate of      as set forth



in my last will and testament dated the      day of      ,      and any codicils thereto.



C. Trust as a Secondary (Contingent) Designation:



Name of the Trust:      



Execution Date of the Trust:      /      /      



Name of the Trustee:      



Beneficiary(ies) of the Trust (please indicate the percentage for each beneficiary):


     


     



All sums payable under the Second Amended and Restated Split Dollar Agreement by reason of my death
shall be paid to the Primary Beneficiary(ies), if he or she survives me, and if no Primary
Beneficiary(ies) shall survive me, then to the Secondary (Contingent) Beneficiary(ies). This
beneficiary designation is valid until the participant notifies the bank in writing.



	 	 	 	 	 	 	 
	
 
	 	 	 	 	 	Date:
	 

	 	 
	 	

	 	

	Insured:

	 	Harold G. Giomi
	 	

	 	

	 

	 	 
	 	 
	 	








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