Document:

EX-10(P)

 

Exhibit 10(p)

SPLIT DOLLAR INSURANCE AGREEMENT

This Agreement is entered into at Columbus, Ohio, this 20th day of June, 1994, between
BANCINSURANCE CORPORATION, a corporation organized and existing under the laws of the State of Ohio
(hereinafter called “Employer”), and FIFTH THIRD BANK OF COLUMBUS, as Trustee of the Si and Barbara
K. Sokol Irrevocable Trust dated May 6, 1994 (hereinafter called “Trust”).

WHEREAS, Si Sokol (hereinafter called “Employee”) is a key executive of Employer and Employer
desires to retain him in its employ; and

WHEREAS, Employer as an inducement to such continued employment, desires to assist Employee with
his personal life insurance program; and

WHEREAS, Employee has executed a Trust as part of his life insurance program.

NOW, THEREFORE, in consideration of the mutual promises hereincontained, Employer and Trust agree
as follows:

1. Purchase of Life Insurance Policy. In futherance of the purposes of this Agreement, policy
number [omitted] (hereinafter called “Policy”) in the face amount of $2,700,000 on the joint lives
of Si and Barbara K. Sokol has been issued by Pan American Life Insurance Company (hereinafter
called “Insurer”).

2. Incidents of Ownership. The Trust shall be the owner of the Policy and may exercise all rights
of ownership with respect to the Policy except as otherwise hereinafter provided. These rights
include, but are not limited to, the right to elect and to receive dividends, the right to elect
any optional mode of settlement, and the sole right to surrender or cancel the policy.

3. Execution of Collateral Assignment of Policy. Concurrently with the execution of this
Agreement, the Trust shall execute a collateral assignment of the Policy to the Employer as
security for the repayment of any indebtedness of Trust to the Employer as set forth in this
Agreement. Said assignment of the Policy shall grant to the Employer the following specific
rights:

(A). The right to veto any reduction in the value of the Policy through dividend withdrawal or
otherwise.

(B). The right to collect from the Insurer its interest in the net proceeds of the Policy when it
becomes a claim by death, surrender or maturity.

The Employer as assignee shall upon the Trust’s request forward without unreasonable delay to the
Insurer the Policy for endorsement or any election of an optional mode of settlement.

 

 

4. Death Benefit. Upon the death of the Employee, and his spouse, Barbara K. Sokol, the Employer
shall be entitled to receive from the life insurance proceeds an amount equal to the sum of the
aggregate premiums paid under the Policy by the Employer, determined as of the date of death of the
Employee, and his spouse, Barbara K. Sokol. The entire balance of the proceeds, including proceeds
attributable to additions to insurance purchased with Policy dividends, shall be paid to the Trust.

5. Payment of Premium. The Employer shall contribute the entire annual premium due to the Insurer.
Each contribution by the Employer shall constitute an advancement to the Trust, secured by the
aforesaid collateral assignment, to be satisfied upon maturation of the Policy.

6. Use of Dividends. All dividends attributable to the Policy shall be applied to the purchase of
paid-up additions from the Insurer.

7. Amendment of Agreement. This Agreement may be amended only by a written agreement validly
executed by the parties, hereto, provided that any such amendment shall not be binding upon the
Insurer until a duly certified copy of same has been received by the Insurer.

8. Binding Agreement. This Agreement shall bind all parties, their successors and assigns, and any
Policy beneficiary.

9. Ohio Law Controls. This Agreement shall be construed under the laws of the State of Ohio.

10. Claims Procedure; ERISA Rights. This Agreement is an “employee welfare benefit plan” under the
Employee Retirement Income Security Act of 1974 (“ERISA”), and the Employee has certain rights
pursuant thereto, as follows:

To claim a benefit under this Agreement (hereinafter referred to as “the plan,” the Employee (or
his beneficiary) should make an appointment with the Employer (hereinafter the “Plan
Administrator”) to complete the forms necessary to process this benefit, if any.

If A Claim is Denied: 

Government regulations set forth specific procedures to take care of the rare instance when a claim
for benefits is denied in whole or in part. A claim for benefits might be denied if:

(1). The Plan Administrator does not believe a participant is entitled to a benefit; or

(2). The Plan Administrator disagrees with the amount of benefit to which the participant believes
he is entitled.

If this happens, the Plan Administrator should notify the Employee (or his beneficiary) in writing
of the reasons for the denial within 90 days of the date of the claim. (See the “NOTE” below).
The notice of denial should:

(1). Explain why the claim for benefits is being denied, and specify the plan provisions on which
the denial is based;

 

 

(2). Provide a description of any additional information needed and an explanation of why it is
necessary; and

(3). Explain the claim review procedure. If the Employee (or his beneficiary) does not receive
formal notice of denial from the Plan Administrator within 90 days, it can be assumed that the
claim has been denied.

Review of Denial: 

If the claim has been denied, the Employee (or his beneficiary) may request a review of the denial.
The Employee (or his beneficiary) has 60 days after receipt of the written notice of denial to
request a review. This request must be in writing and may be made to the Plan Administrator. If
the Employee (or his beneficiary) wishes, the Employee (or his benficiary), or the representative
thereof, may also review the plan documents, and submit issues and comments supporting the claim,
in writing, to the Plan Administrator.

A review of the denial should be made in writing by the Plan Administrator within 60 days (see the
“NOTE” below) after the request is received. The decision should:

	(1). 	 	Be written in a manner the Employee (or his beneficiary) can easily understand;
	 
	(2).	 	 Specify the plan provisions on which the decision is based; and
	 
	(3).	 	 Tell the results of the review.

If the Employee (or his beneficiary) does not receive a decision on the request for review within
60 days, it can be assumed that the request has been denied.

NOTE: The 90- and 60-day deadlines may be extended under special circumstances. The Employee (or
his beneficiary) will be told of the extension in writing before the end of the 90-day (or 60-day)
period. The extension notice will state why the extension is needed and the date at which the
Employee (or his beneficiary) may expect a decision.

The Employee (or his beneficiary) is entitled to certain rights and protections under ERISA. ERISA
provides that the Employee shall be entitled to:

(1). Examine, without charge, at the Plan Administrator’s office, all plan documents and copies of
all documents filed by the plan with the U.S. Department of Labor, such as detailed annual reports
and plan descriptions;

(2). Obtain copies of all plan documents and other plan information upon written request to the
Plan Administrator, who may make a reasonable charge for the copies; and

(3). Receive a summary of the plan’s annual financial report. The Plan Administrator is required
by law to furnish each participant with a copy of this summary annual report.

In addition to creating rights for plan participants, ERISA imposes duties upon the people who are
responsible for the operation of the plan. The people who operate employee plans are called

 

 

fiduciaries of the plan, and include the Plan Administrator. They have a duty to operate the plan
prudently and in the Employee’s interest.

No one, including the Employer, may fire the Employee or otherwise discriminate against the
Employee (or his beneficiary) in any way to prevent the obtaining of a benefit or exercising rights
under ERISA. If a claim for a benefit is denied in whole or in part, the Employee (or his
benficiary) must receive a written explanation of the reason for the denial. The Employee (or his
beneficiary) has the right to have the plan review and reconsider his claim.

Under ERISA, there are steps the Employee (or his beneficiary) can take to enforce the above
rights. For instance, if there is a request for materials from the plan and the Employee (or his
beneficiary) does not receive them within 30 days, the Employee (or his beneficiary) may file suit
in a federal court. In such case, the court may require that the Plan Administrator provide the
materials and pay Employee (or his beneficiary) up to $100 a day until Employee (or his benficiary)
receives the materials, unless the materials were not sent because of reasons beyond the control of
the Administrator.

If a claim for benefits is denied or ignored, in whole or in part, Employee (or his beneficiary)
may file a suit in a state or federal court. If it should happen that plan fiduciaries misuse the
plan’s money, or if Employee (or his beneficiary) is discriminated against for asserting rights,
Employee (or his beneficiary) may seek assistance from the U.S. Department of Labor, or may file
suit in a federal court.

The court will decide who should pay court costs and legal fees. If the Employee (or his
beneficiary) is successful, the court may order the person sued to pay these costs and fees. If
Employee (or his beneficiary) loses, the court may order Employee (or his beneficiary) to pay these
costs and fees (for example, if it finds the claim to be frivolous).

If the Employee (or his beneficiary) has any questions about the plan, Employee (or his
beneficiary) should contact the Plan Administrator. If the Employee (or his beneficiary) has any
questions about this statement or rights under ERISA, Employee (or his benficiary) should contact
the nearest Area Office of the U.S. Labor-Management Services Administration, Department of Labor.

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement in duplicate, on the day and year
above written.

EMPLOYER:

BANCINSURANCE CORPORATION

	 	 	 	 	 
	By:

	 	/s/ Sally Cress
 

Sally Cress, Secretary
	 	 

TRUST:

FIFTH THIRD BANK OF COLUMBUS, as Trustee of the Si & Barbara K. Sokol Irrevocable Trust dated May
6, 1994.

	 	 	 	 	 
	By:

	 	/s/ Susan S. Lease, Trust OfficerEX-10(Q)

 

Exhibit 10(q)

SPLIT DOLLAR INSURANCE AGREEMENT

COLLATERAL ASSIGNMENT

This agreement made this 21st day of June, 1994, by and between BANCINSURANCE CORPORATION, an Ohio
corporation, (hereinafter called “Corporation”) and FIFTH THIRD BANK OF COLUMBUS, Trustee of the Si
and Barbara K. Sokol Irrevocable Life Insurance Trust dated May 6, 1994, (hereinafter called
“Trust”).

WHEREAS, Si Sokol (hereinafter called “Employee”) is a valuable employee of the Corporation; and

WHEREAS, the Employee desires to insure his life for the benefit and protection of the family with
a policy to be issued by the Pan-American Assurance Company (hereinafter called (“Insurer”).

NOW, THEREFORE, in consideration of the services heretofore rendered and to be rendered by the
Employee and the mutual covenants considered herein, the parties agree as follows:

1. Definitions:

A. “Specified Amount” shall mean the specified amount plus accumulated value.

B. “Current Rates” shall refer collectively to the insurer’s current mortality, rate of return, and
expense charges.

C. “Cash Value” shall mean the policy’s cash value as that term is defined in the policy.

D. “Planned Periodic Payments” shall mean the premium level selected by the parties subject to the
Insurer’s minimum premium requirements.

2. Purchase of the Policy. The Trust has applied to Insurer for a life insurance policy on the
joint lives of the Employee and his spouse, Barbara K. Sokol in the specified amount of $2,700,000.
Such policy is specified on Exhibit A, attached hereto. The Employee, and his spouse, have agreed
to medical examinations as requested by the life insurance company, as required for issuance of the
policy.

3. Policy Ownership. The Trust shall be the owner of the life insurance policy on the joint lives
of the Employee and his spouse identified in Exhibit A, attached hereto and made apart hereof, and
may exercise all rights of ownership with respect to the policy, except as otherwise hereinafter
provided.

4. Payment of Premiums on the Policy. The Trust shall pay the planned periodic premium annually as
of the date of issue and upon each anniversary of the date of issue. The Corporation shall remit
to the Trust, on behalf of the Employee, for this purpose an amount equal to the planned periodic
premium on each policy anniversary.

 

 

5. Collateral Assignment for Benefit of the Corporation. The Trust hereby executes, assigns and
conveys to the Corporation the policy, outlined in Exhibit A attached hereto, acquired pursuant to
the terms of this Agreement, as security for the repayment of the amounts which the Corporation
will pay to the Trust under Article 4 of this Agreement. This collateral assignment will not be
altered or changed without the consent of the Corporation.

6. Trust’s Incident of Ownership. The Trust shall retain all rights of ownership of the life
insurance policy except for those rights, if any, specifically given to the Corporation under this
Agreement. The rights retained by the Trust include, among others, the right to cancel or
surrender the policy and the right to borrow or withdraw from the policy.

The Trust’s right to borrow from the policy is restricted to an amount equal to the maximum loan
value less the cumulative planned periodic premiums paid by the Corporation under Article 4 of this
Agreement.

The Trust’s right to withdraw from the policy cash value shall be limited to a partial surrender of
the policy surrender value less the cumulative planned periodic premiums paid by the Corporation
under the Split Dollar arrangement selected in Article 4 of this Agreement, plus any applicable
surrender charges imposed under the life insurance contract.

7. Disposition of Policy Death Proceeds. Notwithstanding any beneficiary designation made on the
policy, the Corporation shall be entitled to an amount equal to the cumulative planned periodic
premiums paid on the policy. The beneficiary designated by the Trust shall be entitled to the
balance of the policy death benefit.

8. Termination of the Agreement. This Agreement shall terminate upon the occurrence of any of the
following events:

	(A).	 	 Written notice given by the Trust to the Corporation;
	 
	(B).	 	 Bankruptcy, receivership or dissolution of the Corporation;
	 
	(C).	 	 The Trust’s failure to apply the Corporation premium to the life insurance premium.
	 
	(D). 	 	Repayment in full by the Trust to the Corporation of the contributions made by the
Corporation under Article 4 of this Agreement.

Upon termination of this Agreement the Trust shall have the option for thirty (30) days to receive
from the Corporation a release of the assignment of the policy in consideration of a cash payment
to the Corporation of the cumulative planned premium paid by the Corporation. The Corporation
agrees that the Trust may borrow or withdraw from the policy cash values in an amount in excess of
the Corporation’s share as established in the Agreement. In the event that the Trust does not
receive a release of the assignment within the thirty day period then the Trust agrees that the
policy will be surrendered and the Corporation shall be entitled to an amount equal to the
cumulative planned periodic premiums paid to the Trust. The Trust shall be entitled to any
remainder of such cash surrender value.

9. Additional Policy Benefits and Riders. The Trust may add a rider to the policy on the

 

 

Employee’s life, acquired pursuant to this Agreement. Upon written request by the Corporation, the
Trust may add a rider to the policy for the benefit of the Corporation. Any additional premium for
any rider which is added to the policy shall be paid by the party which will be entitled to receive
the proceeds of the rider.

10. Named Fiduciary and Plan Administrator. The Corporation is the named fiduciary and plan
administrator of this plan. As such, it shall be responsible for the management, control, and
administration of the Split Dollar plan as established herein.

11. Amendments and Binding of Parties. Amendments may be made to this Agreement in writing and
signed by each of the parties to this Agreement. Such amendments must be attached hereto.
Additional life insurance policies on the life of the Employee may be purchased under this
Agreement by amendment to Article 2 hereof. This Agreement and its amendments are binding upon the
successors and assigns of each party.

12. Liability of the Insurer. The Insurer is not considered a party to this Agreement except with
respect to the rights of the parties herein developed upon receiving an executed copy of this
Agreement. The Insurer is not responsible to account for the actual premium contributions of the
parties to this Agreement. Said insurer shall rely on the written declarations of the parties in
any dispute concerning distribution of cash value or death proceeds. Performance of its
contractual obligations in accordance with the policy provisions shall fully discharge the Insurer
from any and all liability.

13. State Law. This Agreement shall be subject to and shall be construed under the laws of the
State of Ohio.

IN WITNESS WHEREOF, the parties hereunto have executed this Agreement this day and year written
above.

BANCINSURANCE CORPORATION (“Corporation”)

	 	 	 	 	 
	BY:

	 	/s/ Sally Cress
 

     Sally Cress, Secretary
	 	 

FIFTH THIRD BANK OF COLUMBUS, Trustee under the Si and Barbara K. Sokol Irrevocable Life Insurance
Trust dated May 6, 1994 (“Trust”)

	 	 	 	 	 
	By:

	 	/s/ Susan S. Lease
 

	 	 
	 

	 	      Susan S. Lease	 	 
	 

	 	      Trust Administrative Officer	 	 
	 

	 	      Fifth Third Bank of Columbus	 	 

 

 

EXHIBIT A

Name of Life Insurance Company: Pan-American Assurance (Insurance) Company

Policy Number: [omitted]

Insured: Si Sokol and Barbara K. Sokol

Specified Amount: $2,700,000

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