Document:

EXHIBIT 10.4

 Exhibit 10.4 
 COOPERATIVE BANK FOR SAVINGS 
 SPLIT DOLLAR AGREEMENT 
 THIS AGREEMENT is adopted this _______ day of _________________, 2001, by and between COOPERATIVE BANK FOR SAVINGS, a State/Stock Savings Bank located in
Wilmington, North Carolina (the “Company”), and ____________________ (the “Executive”). This Agreement shall append the Split Dollar Endorsement entered into on even date herewith or as subsequently amended, by and between the
aforementioned parties. 
 INTRODUCTION 
 To encourage the Executive to remain an employee of the Company, the Company is willing to divide the death proceeds of a life insurance policy on the Executive’s life. The Company will pay life insurance
premiums from its general assets. 
 AGREEMENT 
 The Company and the Executive agree as follows: 
 Article 1 
 General Definitions 
 The following terms shall have
the meanings specified: 
 1.1 “Insurer” means Jefferson-Pilot Life Insurance Company. 
 1.2 “Policy” means insurance policy no. ____________ issued by the Insurer. 
 1.3 “Insured” means the Executive. 
 1.4 “Net Death Proceeds” means the total death proceeds of the Policy minus the cash surrender value. 
 1.5
“Normal Retirement Age” means the Executive’s 65th birthday. 
 1.6 “Voluntary Early Termination” means that the Executive, prior to Normal Retirement Age, has terminated employment with the Company
for reasons other than Termination for Cause, Disability, Change of Control or Involuntary Termination (Termination for Cause, Disability, Change of Control and Involuntary Termination are defined in the COOPERATIVE BANK FOR SAVINGS EXECUTIVE
INDEXED RETIREMENT AGREEMENT of even date herewith). 

 Article 2 
 Policy Ownership/Interests 
 2.1 Company Ownership. The Company is the sole owner of the
Policy and shall have the right to exercise all incidents of ownership except otherwise said herein. The Company shall be the beneficiary of the death proceeds remaining after the Executive’s interest has been paid according to Section 2.2
below. 
 2.2 Executive’s Interest. The Executive shall have the right to designate the beneficiary of an amount equal to 100
percent of the Net Death Proceeds of the Policy. The Executive shall also have the right to elect and change settlement options that may be permitted. However, the Executive, the Executive’s transferee or the Executive’s beneficiary shall
have no rights or interests in the Policy with respect to that portion of the death proceeds designated in this section 2.2 upon the Executive’s Voluntary Early Termination. 
 2.3 Option to Purchase. The Company shall not sell, surrender or transfer ownership of the Policy while this Agreement is in effect without first
giving the Executive or the Executive’s transferee the option to purchase the Policy for a period of 60 days from written notice of such intention. The purchase price shall be an amount equal to the cash surrender value of the Policy. This
provision shall not impair the right of the Company to terminate this Agreement. 
 2.4 Comparable Coverage. Upon adoption and subject
to the terms of this Agreement, the Company shall maintain the Policy in full force and effect and in no event shall the Company amend, terminate or otherwise abrogate the Executive’s interest in the Policy, unless the Company replaces the
Policy with a comparable insurance policy to cover the benefit provided under this Agreement, amends the Split Dollar Agreement and executes a new Endorsement for said comparable insurance policy. The Executive agrees to provide the required medical
information to the Insurer for the implementation of this Agreement and agrees to participate with the Company if the Company desires to obtain a comparable insurance policy with another carrier, whether prior to or after Normal Retirement Age. The
Policy or any comparable policy shall be subject to the claims of the Company’s creditors. 
 Article 3 
 Premiums 
 3.1 Premium Payment.
The Company shall pay any premiums due on the Policy. 
 3.2 Imputed Income. The Company shall impute income to the Executive in an
amount equal to the current term rate for the Executive’s age multiplied by the aggregate death benefit payable to the Executive’s beneficiary. The “current term rate” is the minimum amount required to be imputed under Revenue
Rulings 64-328 and 66-110, or any subsequent applicable authority. 

 Article 4 
 Assignment 
 The Executive may assign without consideration all of the Executive’s interests in
the Policy and in this Agreement to any person, entity or trust. In the event the Executive transfers all of the Executive’s interest in the Policy, then all of the Executive’s interest in the Policy and in the Agreement shall be vested in
the Executive’s transferee, who shall be substituted as a party hereunder and the Executive shall have no further interest in the Policy or in this Agreement. 
 Article 5 
 Insurer 
 The Insurer shall be bound only by the terms of the Policy. Any payments the Insurer makes or actions it takes in accordance with the Policy shall fully
discharge it from all claims, suits and demands of all entities or persons. The Insurer shall not be bound by or be deemed to have notice of the provisions of this Agreement. 
 Article 6 
 Claims Procedure 
 6.1 Claims Procedure. The Company shall notify any person or entity that makes a claim under this Agreement (the “Claimant”) in writing,
within 90 days of Claimant’s written application for benefits, of his or her eligibility or ineligibility for benefits under this Agreement. If the Company determines that the Claimant is not eligible for benefits or full benefits, the notice
shall set forth (1) the specific reasons for such denial, (2) a specific reference to the provisions of this Agreement on which the denial is based, (3) a description of any additional information or material necessary for the
Claimant to perfect his or her claim, and a description of why it is needed, (4) an explanation of this Agreement’s claims review procedure and other appropriate information as to the steps to be taken if the Claimant wishes to have the
claim reviewed, and (5) a time within which a review must be requested. If the Company determines that there are special circumstances requiring additional time to make a decision, the Company shall notify the Claimant of the special
circumstances and the date by which a decision is expected to be made, and may extend the time for up to an additional 90 days. 
 6.2
Review Procedure. If the Claimant is determined by the Company not to be eligible for benefits, or if the Claimant believes that he or she is entitled to greater or different benefits, the Claimant shall have the opportunity to have such
claim reviewed by the Company by filing a petition for review with the Company within 60 days after receipt of the notice issued by the Company. Said petition shall state the specific reasons, which the Claimant believes entitle him or her to
benefits or to greater or different benefits. Within 60 days after receipt by the Company of the petition, the Company shall afford the Claimant (and counsel, if any) an opportunity to present his or her position to the Company in writing, and the
Claimant (or counsel) shall have the right to review the pertinent documents. The Company shall notify the Claimant of its decision in writing within the sixty-day period, stating specifically the basis of its decision, written in a manner to be
understood by the Claimant and the specific provisions of this Agreement on which the decision is based. If, because of the need for a hearing, the 60-day period is not sufficient, the decision may be 

 
deferred for up to another 60-day period at the election of the Company, but notice of this deferral shall be given to the Claimant. 
 Article 7 
 Amendments and
Termination 
 This Agreement may be amended or terminated only by a written agreement signed by the Company and the Executive. However,
this Agreement will automatically terminate upon the Executive’s Voluntary Early Termination. 
 Article 8 
 Miscellaneous 
 8.1 Binding
Effect. This Agreement shall bind the Executive and the Company and their beneficiaries, survivors, executors, administrators and transferees, and any Policy beneficiary. 
 8.2 No Guarantee of Employment. This Agreement is not an employment policy or contract. It does not give the Executive the right to remain an
employee of the Company, nor does it interfere with the Company’s right to discharge the Executive. It also does not require the Executive to remain an employee nor interfere with the Executive’s right to terminate employment at any time.

 8.3 Applicable Law. The Agreement and all rights hereunder shall be governed by and construed according to the laws of the State of
North Carolina, except to the extent preempted by the laws of the United States of America. 
 8.4 Reorganization. The Company shall
not merge or consolidate into or with another company, or reorganize, or sell substantially all of its assets to another company, firm or person unless such succeeding or continuing company, firm or person agrees to assume and discharge the
obligations of the Company. 
 8.5 Notice. Any notice, consent or demand required or permitted to be given under the provisions of
this Split Dollar Agreement by one party to another shall be in writing, shall be signed by the party giving or making the same, and may be given either by delivering the same to such other party personally, or by mailing the same, by United States
certified mail, postage prepaid, to such party, addressed to his or her last known address as shown on the records of the Company. The date of such mailing shall be deemed the date of such mailed notice, consent or demand. 
 8.6 Entire Agreement. This Agreement constitutes the entire agreement between the Company and the Executive as to the subject matter hereof. No
rights are granted to the Executive by virtue of this Agreement other than those specifically set forth herein. 
 8.7 Administration.
The Company shall have powers which are necessary to administer this Agreement, including but not limited to: 
 (a)
Interpreting the provisions of the Agreement; 

 (b) Establishing and revising the method of accounting for the Agreement; 
 (c) Maintaining a record of benefit payments; and 
 (d) Establishing rules and prescribing any forms necessary or desirable to administer the Agreement. 
 8.8 Named Fiduciary. The Company shall be the named fiduciary and plan administrator under this Agreement. 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 ministerial duties to qualified individuals. 
 IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written. 
  

									
	EXECUTIVE:	 		 	COMPANY:
			
		 		 	COOPERATIVE BANK FOR SAVINGS
				
	  	 		 	By	 	  
					
		 		 		 	Title	 	  

 SPLIT DOLLAR POLICY ENDORSEMENT TO 
 COOPERATIVE BANK FOR SAVINGS SPLIT DOLLAR AGREEMENT 
  

			
	 Policy No. _______________
	 	Insured: _________________

 Supplementing and amending the application for insurance to Jefferson-Pilot Life Insurance Company
(“Insurer”) on _____________________, 2001, the applicant requests and directs that: 
 BENEFICIARIES 
 1. COOPERATIVE BANK FOR SAVINGS, a State/Stock Savings Bank located in Wilmington, North Carolina (the “Company”), shall be the beneficiary of
the death proceeds remaining after the Insured’s interest has been paid according to paragraph (2) below. 
 2. The Insured or the
Insured’s transferee shall designate the beneficiary of an amount equal to 100 percent of the Net Death Proceeds of the Policy (defined as the total death proceeds of the Policy minus the cash surrender value), subject to the provisions of
paragraph (5) below. 
 OWNERSHIP 
 3. The Owner of the policy shall be the Company. The Owner shall have all ownership rights in the Policy except as may be specifically granted to the Insured or the Insured’s transferee in paragraph (4) of
this endorsement. 
 4. The Insured or the Insured’s transferee shall have the right to assign his or her rights and interests in the
Policy with respect to that portion of the death proceeds designated in paragraph (2) of this endorsement, and to exercise all settlement options with respect to such death proceeds. 
 5. Notwithstanding the provisions of paragraph (4) above, the Insured or the Insured’s transferee shall have no rights or interests in the
Policy with respect to that portion of the death proceeds designated in paragraph (2) of this endorsement upon the Insured’s Voluntary Early Termination (as defined in the COOPERATIVE BANK FOR SAVINGS SPLIT DOLLAR AGREEMENT of even date
herewith). 
 MODIFICATION OF ASSIGNMENT PROVISIONS OF THE POLICY 
 Upon the death of the Insured, the interest of any collateral assignee of the Owner of the Policy designated in (3) above shall be limited to the portion of the proceeds described in paragraph (1) above.

 OWNERS AUTHORITY 
 The Insurer
is hereby authorized to recognize the Owner’s claim to rights hereunder without investigating the reason for any action taken by the Owner, including its statement of the amount of 

 
premiums it has paid on the Policy. The signature of the Owner shall be sufficient for the exercise of any rights under this Endorsement and the receipt of
the Owner for any sums received by it shall be a full discharge and release therefore to the Insurer. The Insurer may rely on a sworn statement in form satisfactory to it furnished by the Owner, its successors or assigns, as to their interest, and
any payments made pursuant to such statement shall discharge the Insurer accordingly. The owner accepts and agrees to this split dollar endorsement. 
 Any
transferee’s rights shall be subject to this Endorsement. 
 The undersigned is signing in a representative capacity and warrants that he or she has the
authority to bind the entity on whose behalf this document is being executed. 
 Signed at _____________________, North Carolina, this ______ day of
______________, 2001. 
  

			
	COOPERATIVE BANK FOR SAVINGS
		
	By	 	  
	 Title
	 	  

 ACCEPTANCE AND BENEFICIARY DESIGNATION 
 The Insured accepts and agrees to the foregoing and, subject to the rights of the Owner as stated above, designates the following as beneficiary(s) of the portion of the
proceeds described in paragraph (2) above: 
 Primary Beneficiary: ______________________________________________________________ 
 Relationship: ________________________________________________________________ 
 Contingent Beneficiary (if the Primary is deceased): ____________________________________ 
 Relationship:
________________________________________________________________ 
 Signed at _____________________, North Carolina, this _______ day of _____________, 2001.

  

	
	THE INSURED:EXHIBIT 10.5

 Exhibit 10.5 
 COOPERATIVE BANK 
 SUPPLEMENTAL LIFE INSURANCE AGREEMENT 
 EFFECTIVE __________________, 20___ 

 COOPERATIVE BANK 
 SUPPLEMENTAL LIFE INSURANCE AGREEMENT 
 THIS SUPPLEMENTAL LIFE INSURANCE AGREEMENT is adopted this
______ day of _____________________, 200_, by and between COOPERATIVE BANK, a North Carolina Corporation located in Wilmington, North Carolina (the “Company”), and ________________ (the “Executive”). 
 The purpose of this Agreement is to retain and reward the Executive, by dividing the death proceeds of certain life insurance policies which are owned by
the Company on the life of the Executive with the designated beneficiary of the Executive. The Company will pay the life insurance premiums from its general assets. 
 ARTICLE 1 
 DEFINITIONS 
 Whenever used in this Agreement, the following terms shall have the meanings specified: 
  

	1.1	“Beneficiary” means each designated person, or the estate of the deceased Executive, entitled to benefits, if any, upon the death of the Executive.

  

	1.2	“Beneficiary Designation Form” means the form established from time to time by the Plan Administrator that the Executive completes, signs and returns to the Plan
Administrator to designate one or more Beneficiaries. 

  

	1.3	“Board” means the Board of Directors of the Company as from time to time constituted. 

  

	1.4	“Change of Control” means the transfer of shares of the Company’s voting common stock such that one entity or one person acquires (or is deemed to acquire when
applying Section 318 of the Code) more than 50 percent of the Company’s outstanding voting common stock. 

  

	1.5	“Company’s Interest” means the benefit set forth in Section 3.2. 

  

	1.6	“Disability” means the Executive’s suffering a sickness, accident or injury which has been determined by the insurance carrier of any individual or group
disability insurance policy covering the Executive, or by the Social Security Administration, to be a disability rendering the Executive totally and permanently disabled. Upon the request of the Plan Administrator, the Executive must submit proof to
the Plan Administrator of the insurance carrier’s or Social Security Administration’s determination. 

  

	1.7	“Executive’s Interest” means the benefit set forth in Section 3.1. 

  

	1.8	“Insured” means the Executive. 

  

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	1.9	“Insurer” means the insurance company issuing the life insurance policy on the life of the Insured. 

  

	1.10	“Normal Retirement Age” means the Executive attaining age sixty-five (65). 

  

	1.11	“Normal Retirement Date” means the later of the Normal Retirement Age or the date of Termination of Employment for any reason other than Termination for Cause.

  

	1.12	“Policy” means the individual insurance policy or policies adopted by the Company for purposes of insuring the Executive’s life under this Agreement.

  

	1.13	“Termination of Employment” means the termination of Executive’s service for any reason, voluntarily or involuntarily, other than a leave of absence approved
by the Company. 

  

	1.14	“Termination for Cause” means that the Executive’s employment with the Company has been or is terminated by the Board for any of the following reasons:

  

	 	(a)	Gross negligence or gross neglect of duties; or 

  

	 	(b)	Commission of a felony or of a gross misdemeanor involving moral turpitude; or 

  

	 	(c)	Fraud, disloyalty, dishonesty or willful violation of any law or significant Company policy committed in connection with the Executive’s employment and resulting in an adverse
effect on the Company; or 

  

	 	(d)	Issuance by the Company’s banking regulators of an order for removal of the Executive. 

 ARTICLE 2 
 PARTICIPATION 
  

	2.1	Termination of Participation. The Executive’s rights under this Agreement shall automatically cease and his or her participation in this Agreement shall automatically
terminate, if either of the following events occur: (i) if there is a Termination for Cause; or (ii) if the Executive’s employment with the Company is terminated prior to Normal Retirement Age for reasons other than
(1) Disability (except as set forth in Section 2.2(b)); (2) Change of Control; or (3) a leave of absence approved by the Company. In the event that the Company decides to maintain the Policy after the Executive’s termination
of participation in the Agreement, the Company shall be the direct beneficiary of the entire death proceeds of the Policy. 

  

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	2.2	Disability. 

  

	 	(a)	Except as otherwise provided in paragraph (b) of this Section 2.2, if the Executive’s employment with the Company is terminated because of the Executive’s
(1) Disability; (2) attaining Normal Retirement Age; or (3) following a Change of Control, the Company shall maintain the Policy in full force and effect and, in no event, shall the Company amend, terminate or otherwise abrogate the
Executive’s Interest in the Policy. However, the Company may replace the Policy with a policy that provides comparable death benefits provided under this Agreement. 

  

	 	(b)	Notwithstanding the provisions of paragraph (a) of this Section 2.2, upon the disabled Executive’s gainful employment with an entity other than the Company, the
Company shall have no further obligation to the disabled Executive, and the disabled Executive’s rights pursuant to the Agreement shall cease. In the event the disabled Executive’s rights are terminated hereunder and the Company decides to
maintain the Policy, the Company shall be the direct beneficiary of the entire death proceeds of the Policy. 

  

	2.3	Retirement. If the Executive remains in the continuous employ of the Company, upon the Executive’s Normal Retirement Date, the Company shall maintain the Policy in full
force and effect and in no event shall the Company amend, terminate or otherwise abrogate the Executive’s Interest in the Policy. However, the Company may replace the Policy with a policy that provides comparable death benefits to cover the
benefit under this Agreement. 

 ARTICLE 3 
 POLICY OWNERSHIP/INTERESTS 
  

	3.1	Executive’s Interest. The Executive, or the Executive’s assignee, shall have the right to designate the Beneficiary of an amount of death proceeds equal to $400,000
(Four Hundred Thousand Dollars), subject to: 

  

	 	(a)	Forfeiture of Executive’s rights upon termination of Participation as set forth in Section 2.1; 

  

	 	(b)	Forfeiture of Executive’s rights upon gainful employment following Disability. 

  

	 	(c)	Termination of the Agreement and the corresponding forfeiture of rights for all Executives or any one Executive in accordance with Section 9.1 hereof; and

  

	 	(d)	Forfeiture of the Executive’s rights and interest hereunder that the Company may reasonably consider necessary to conform with applicable law (including the Sarbanes-Oxley Act
of 2002). 

  

	3.2	 Company’s Interest. The Company shall own the Policy and shall have the right to exercise all incidents of ownership except that the Company shall not
sell, surrender or transfer ownership of a Policy so long as the Executive has an interest in the Policy as described in Section 3.1. However, the Company may replace the Policy with a policy that provides comparable death benefits to cover the
benefit provided under this Agreement. This provision shall not impair the right of the Company, subject to Article 9, 

  

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to terminate this Agreement. The Company shall be the beneficiary of the remaining death proceeds of the Policy after the Executive’s Interest is
determined according to Section 3.1. 

 ARTICLE 4 
 PREMIUMS 
  

	4.1	Premium Payment. The Company shall pay all premiums due on all Policies. 

  

	4.2	Economic Benefit. The Company shall determine the economic benefit attributable to the Executive based on the amount of the current term rate for the Executive’s age
multiplied by the aggregate death benefit payable to the Executive’s Beneficiary. The “current term rate” is the minimum amount required to be imputed under Internal Revenue Notice 2002-8, or any subsequent applicable authority.

  

	4.3	Imputed Income. The Company shall impute the economic benefit to the Executive on an annual basis, by adding the economic benefit to the Executive’s W-2, or if
applicable, Form 1099. 

 ARTICLE 5 
 BENEFICIARIES 
  

	5.1	Beneficiary. The Executive shall have the right, at any time, to designate a Beneficiary(ies) to receive any benefits payable under the Agreement to a beneficiary upon
the death of the Executive. The Beneficiary designated under this Agreement may be the same as or different from the Beneficiary designation under any other Agreement of the Company in which the Executive participates. 

  

	5.2	Beneficiary Designation; Change. The Executive shall designate a Beneficiary by completing and signing the Beneficiary Designation Form, and delivering it to the Company or
its designated agent. The Executive’s beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Executive or if the Executive names a spouse as Beneficiary and the marriage is subsequently dissolved. The
Executive shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Company’s rules and procedures, as in effect from time to time. Upon the acceptance
by the Company of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be cancelled. The Company shall be entitled to rely on the last Beneficiary Designation Form filed by the Executive and accepted by the Company
prior to the Executive’s death. 

  

	5.3	Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Company or its
designated agent. 

  

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	5.4	No Beneficiary Designation. If the Executive dies without a valid designation of beneficiary, or if all designated Beneficiaries predecease the Executive, then the
Executive’s surviving spouse shall be the designated Beneficiary. If the Executive has no surviving spouse, the benefits shall be made payable to the personal representative of the Executive’s estate. 

  

	5.5	Facility of Payment. If the Company determines in its discretion that a benefit is to be paid to a minor, to a person declared incompetent, or to a person incapable of
handling the disposition of that person’s property, the Company may direct payment of such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person. The Company may
require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any payment of a benefit shall be a payment for the account of the Executive and the Executive’s Beneficiary, as the case
may be, and shall be a complete discharge of any liability under the Agreement for such payment amount. 

 ARTICLE 6

 ASSIGNMENT 
 The
Executive may irrevocably assign without consideration all or part of the Executive’s Interest in this Agreement to any person, entity or trust. In the event the Executive shall transfer all or part of the Executive’s Interest, then all or
part of the Executive’s Interest in this Agreement shall be vested in the Executive’s transferee, who shall be substituted as a party hereunder, and the Executive shall have no further interest in this Agreement. 
 ARTICLE 7 
 INSURER 

The Insurer shall be bound only by the terms of its given Policy. The Insurer shall not be bound by or deemed to have notice of the provisions of this
Agreement. The Insurer shall have the right to rely on the Company’s representations with regard to any definitions, interpretations or Policy interests as specified under this Agreement. 
 ARTICLE 8 
 CLAIMS AND REVIEW PROCEDURE 
  

	8.1	Claims Procedure. The Executive or Beneficiary (“claimant”) who has not received benefits under the Agreement that he or she believes should be paid shall make a
claim for such benefits as follows: 

  

	 	8.1.1 	Initiation – Written Claim. The claimant initiates a claim by submitting to the Company a written claim for the benefits. 

  

	 	8.1.2 	 Timing of Company Response. The Company shall respond to such claimant within 90 days after receiving the claim. If the Company determines that special
circumstances require additional time for processing the claim, the Company can 

  

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extend the response period by an additional 90 days by notifying the claimant in writing, prior to the end of the initial 90-day period, that an additional
period is required. The notice of extension must set forth the special circumstances and the date by which the Company expects to render its decision. 

  

	 	8.1.3 	Notice of Decision. If the Company denies part or all of the claim, the Company shall notify the claimant in writing of such denial. The Company shall write the notification
in a manner calculated to be understood by the claimant. The notification shall set forth: 

  

	 	(a)	The specific reasons for the denial; 

  

	 	(b)	A reference to the specific provisions of the Agreement on which the denial is based; 

  

	 	(c)	A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed; 

  

	 	(d)	An explanation of the Agreement’s review procedures and the time limits applicable to such procedures; and 

  

	 	(e)	A statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review. 

  

	8.2	Review Procedure. If the Company denies part or all of the claim, the claimant shall have the opportunity for a full and fair review by the Company of the denial, as follows:

  

	 	8.2.1 	Initiation – Written Request. To initiate the review, the claimant, within 60 days after receiving the Company’s notice of denial, must file with the Company a
written request for review. 

  

	 	8.2.2 	Additional Submissions – Information Access. The claimant shall then have the opportunity to submit written comments, documents, records and other information relating
to the claim. The Company shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the
claimant’s claim for benefits. 

  

	 	8.2.3 	Considerations on Review. In considering the review, the Company shall take into account all materials and information the claimant submits relating to the claim, without
regard to whether such information was submitted or considered in the initial benefit determination. 

  

	 	8.2.4 	Timing of Company’s Response. The Company shall respond in writing to such claimant within 60 days after receiving the request for review. If the Company determines that
special circumstances require additional time for processing the claim, the Company can extend the response period by an additional 60 days by notifying the claimant in writing, prior to the end of the initial 60-day period, that an additional
period is required. The notice of extension must set forth the special circumstances and the date by which the Company expects to render its decision. 

  

 6 

	 	8.2.5 	Notice of Decision. The Company shall notify the claimant in writing of its decision on review. The Company shall write the notification in a manner calculated to be
understood by the claimant. The notification shall set forth: 

  

	 	(a)	The specific reasons for the denial; 

  

	 	(b)	A reference to the specific provisions of the Agreement on which the denial is based; 

  

	 	(c)	A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as
defined in applicable ERISA regulations) to the claimant’s claim for benefits; and 

  

	 	(d)	A statement of the claimant’s right to bring a civil action under ERISA Section 502(a). 

 ARTICLE 9 
 AMENDMENTS AND TERMINATION 
  

	9.1	Amendment or Termination of Agreement. Except as otherwise provided in Sections 2.2 and 2.3, the Company may amend or terminate this Agreement at any time prior to the
Executive’s death. Such amendment or termination shall be by written notice to the Executive. In the event that the Company decides to maintain the Policy after the termination of the Agreement, the Company shall be the direct beneficiary of
the entire death proceeds of the Policy. 

  

	9.2	Option to Purchase Upon Termination. If the Company exercises the right to terminate the Agreement, the Company shall not sell, surrender or transfer ownership of a Policy
without first giving the Executive or the Executive’s transferee the option to purchase the Policy for a period of sixty (60) days from written notice of such intention. The purchase price shall be an amount equal to the cash surrender
value of the Policy. 

 ARTICLE 10 
 ADMINISTRATION 
  

	10.1	Company Duties. This Agreement shall be administered by the Company which shall consist of the Board, or such committee or persons as the Board may choose. The Company shall
also have the discretion and authority to (i) make, amend, interpret and enforce all appropriate rules and regulations for the administration of this Agreement and (ii) decide or resolve any and all questions including interpretations of
this Agreement, as may arise in connection with this Agreement. 

  

	10.2	Agents. In the administration of this Agreement, the Company may employ agents and delegate to them such administrative duties as it sees fit, (including acting through a
duly appointed representative), and may from time to time consult with counsel who may be counsel to the Company. 

  

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	10.3	Binding Effect of Decisions. The decision or action of the Company with respect to any question arising out of or in connection with the administration, interpretation and
application of this Agreement and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in this Agreement. 

  

	10.4	Indemnity of Company. The Company shall indemnify and hold harmless the members of the Company against any and all claims, losses, damages, expenses or liabilities arising
from any action or failure to act with respect to this Agreement, except in the case of willful misconduct by the Company or any of its members. 

 ARTICLE 11 
 MISCELLANEOUS 
  

	11.1	Binding Effect. This Agreement shall bind the Executive and the Company, their beneficiaries, survivors, executors, administrators and transferees and any Beneficiary.

  

	11.2	No Guarantee of Employment. This Agreement is not an employment policy or contract. It does not give the Executive the right to remain an Executive of the Company, nor does
it interfere with the Company’s right to discharge the Executive. It also does not require the Executive to remain an Executive nor interfere with the Executive’s right to terminate employment at any time. 

  

	11.3	Applicable Law. The Agreement and all rights hereunder shall be governed by and construed according to the laws of the State of North Carolina, except to the extent preempted
by the laws of the United States of America. 

  

	11.4	Reorganization. The Company shall not merge or consolidate into or with another company, or reorganize, or sell substantially all of its assets to another company, firm or
person unless such succeeding or continuing company, firm or person agrees to assume and discharge the obligations of the Company under this Agreement. Upon the occurrence of such event, the term “Company” as used in this Agreement shall
be deemed to refer to the successor or survivor company. 

  

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	11.5	Notice. Any notice or filing required or permitted to be given to the Company under this Agreement shall be sufficient if in writing and hand-delivered, or sent by registered
or certified mail, to the address below: 

 _____________________________________ 
 _____________________________________ 
 _____________________________________ 
 _____________________________________ 
 Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark or the receipt for
registration or certification. 
 Any notice or filing required or permitted to be given to the Executive under this Agreement shall be
sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the Executive. 
  

	11.6	Entire Agreement. This Agreement, along with the Executive’s Beneficiary Designation Form constitute the entire agreement between the Company and the Executive as to the
subject matter hereof. No rights are granted to the Executive under this Agreement other than those specifically set forth herein. 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated above. 
  

									
	 EXECUTIVE:
	 		 	 COOPERATIVE BANK

				
	  	 		 	 By 
	 	  
					
		 		 		 	 Title 
	 	  

  

 9 

 I, _________________, designate the following as beneficiary of benefits under the Agreement payable following my death:

  

			
	 Primary:
	  	
		
	  	  	_____%
		
	  	  	_____%
		
	  	  	_____%
		
	 Contingent:
	  	
		
	  	  	_____%
		
	  	  	_____%
		
	  	  	_____%

 Notes: 
  

	 	•	 	Please PRINT CLEARLY or TYPE the names of the beneficiaries. 

  

	 	•	 	To name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement. 

  

	 	•	 	To name your estate as beneficiary, please write “Estate of   [your name]  ”. 

  

	 	•	 	Be aware that none of the contingent beneficiaries will receive anything unless ALL of the primary beneficiaries predecease you. 

 I understand that I may change these beneficiary designations by delivering a new written designation to the Company, which shall be effective only upon receipt and
acknowledgment by the Company prior to my death. I further understand that the designations will be automatically revoked if the beneficiary predeceases me, or, if I have named my spouse as beneficiary and our marriage is subsequently dissolved.

  

											
	 Name: 
	  	  	  		  		  		  	
						
	 Signature: 
	  	  	  		  	 Date: 
	  	  	  	

 Received by the Company this ________ day of ___________________, 2____.

  

			
		
	 By: 
	 	  
		
	 Title: 
	 	  

 POLICY ENDORSEMENT 
 Contract Owner: COOPERATIVE BANK 
 The undersigned Owner requests that the policy(ies) shown in the attached Schedule Page
issued by the WEST COAST LIFE INSURANCE COMPANY (the “Insurer”) provide for the following beneficiary designation: 
 1. Upon the
death of the Insured, proceeds shall be paid in one sum to the Owner, its successors or assigns, as Beneficiary, to the extent claimed by said Owner. 
 2. Any proceeds at the death of the Insured in excess of the amount paid under the provisions of paragraph 1 of this Policy Endorsement shall be paid in one sum in accordance with the written direction of the Owner.
Such direction will be provided to the Insurer at the time of claim. The Insurer will be protected in relying solely on the Owner to provide the name(s) of the party(ies) to pay any excess not paid under paragraph 1. If the Owner fails to provide
the name(s) of the party(ies) at the time of claim, then any proceeds payable under this paragraph shall be paid in one sum to the Beneficiary. 
 3. It is hereby provided that (i) any payment made to the Beneficiary or other party under paragraph 2 of this Policy Endorsement shall be a full discharge of the Insurer to the extent thereof; (ii) such discharge shall be binding
on all parties claiming any interest under the Policy; and (iii) the Insurer shall have no responsibility with respect to the amounts so claimed. 
 4. It is agreed by the undersigned that this designation shall be subject in all respects to the contractual terms of the Policy. 
 The undersigned is signing in a representative capacity for the Owner and warrants that he or she has the authority to bind the entity on whose behalf this document is being executed. 
 Signed at _______________________, ____________, this _____ day of _____________, 20__. 
  

									
	OWNER:	 		 	
			
	COOPERATIVE BANK	 		 	
					
	By: 	 	  	 		 	By: 	 	  
		 	 (Signature: Bank Officer #1)
	 		 		 	 (Signature Bank Officer #2)

		 	  	 		 		 	  
		 	 (Printed)
	 		 		 	 (Printed)

	Title: 	 	  	 		 	Title: 	 	  

  

 1 of 2 

 Schedule Page 
 Policy(ies) Subject to Policy Endorsement 
  

			
	 Policy Number
	  	 Insured

		  	
		  	

  

 2 of 2

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