Document:

Form of Endorsement Method Split Dollar Plan

 Exhibit 10.4 
  
 LIFE INSURANCE 
  
 ENDORSEMENT METHOD SPLIT DOLLAR PLAN 
  
 AGREEMENT 
  

			
	Insurer:	  	The Northwestern Mutual Life Insurance Company
		
	Policy Number:	  	 
		
	Bank:	  	The Old Point National Bank of Phoebus
		
	Insured:	  	 
		
	Relationship of Insured to Bank:	  	Executive

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

	I.	DEFINITIONS 

  

	 	A.	Disability 

  
 Disability shall be defined in the same manner as the Bank’s long-term disability policy in effect at the time of said disability. If the Bank has
no long-term disability policy, then disability shall be defined in the same manner as applied by Social Security to determine qualification for disability benefits. 
  

	 	B.	Retirement 

  
 Retirement shall be any termination of employment by the Insured, for reasons other than a Discharge for Cause, following the date in which the
Insured’s whole number of years of service with the Bank, including service with subsidiaries or parent entities of the bank, plus the Insured’s age as of the Insured’s most recent birthday, equals or exceeds seventy (70). For
purposes of this Subparagraph, years of service shall mean any calendar year in which the Insured is credited with at least 1,000 hours of service. Accordingly, it is not necessary that the Insured be employed for the full calendar year in order to
earn a year of service. 

	 	C.	Scheduled Insurance Benefit 

  
 The Scheduled Insurance Benefit shall initially be equal to $XXX,XXX. The Scheduled Insurance Benefit shall increase by 4.0% on each January
1st until the Insured’s 65th birthday, as long as the Insured is employed by the Bank, or has and continues to qualify for Disability. Upon the earlier of Retirement or the Insured’s
65th birthday, the Scheduled Insurance Benefit shall be reduced to fifty percent (50%) of the Scheduled Insurance
Benefit in effect immediately preceding the above date. 
  

	 	D.	Discharge For Cause 

  
 Discharge for Cause means termination resulting from the following: 
  

	 	i.	willful misconduct or gross negligence of Executive in connection with the performance of his duties. This includes the willful non-performance of assigned duties and, without
limitation, misappropriation of funds or property of the Bank or any of its affiliates or securing or attempting to secure personally any profit in connection with any transaction entered into on behalf of the bank; or 

  

	 	ii.	gross violations including any gross misconduct as referred to in the Bank’s policy manuals, employee handbooks or any other human resource policies set forth by Bank
including, without limitation, policies relating to sexual harassment, race, sex or age discrimination, or any other forms of discrimination; or 

  

	 	iii.	the entry of any legal order which has the effect of precluding Executive from performing his duties for more than 30 consecutive days. 

  
 Refer to the policy contract for the definition of all other terms in this
Agreement. 
  

	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 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
Split Dollar 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. 
  

 2 

	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 

  
 The Bank shall pay an amount equal to the planned premiums and any other premium payments that might become necessary to keep the policy in force.

  

	V.	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. 
  

	VI.	DIVISION OF DEATH PROCEEDS 

  
 Subject to Paragraphs VII and IX herein, the division of the death proceeds of the policy is as follows: 
  

	 	A.	Should the Insured be employed by the Bank, or have qualified for Retirement, or be terminated from the Bank due to continued Disability, the Insured’s beneficiary(ies),
designated in accordance with Paragraph III, shall be entitled to the Scheduled Insurance Benefit, or one hundred percent (100%) of the net-at-risk insurance portion of the proceeds, whichever amount is less. The net-at-risk insurance portion is the
total proceeds less the cash value of the policy. 

  

	 	B.	The Bank shall be entitled to the remainder of such proceeds. 

  

	 	C.	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. 

  

 3 

	VII.	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. 
  

	VIII.	TERMINATION OF AGREEMENT 

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

	 	A.	The Insured shall leave the employment of the Bank voluntarily or involuntarily (Discharge for Cause) at any time for reasons other than Retirement or Disability; or

  

	 	B.	Surrender, lapse, or other termination of the Policy by the Bank. 

  
 In the event of a surrender, lapse, or other termination of the Policy by the Bank, the Insured (or assignee) 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, whereupon this Agreement shall terminate. Such cash payment referred to hereinabove shall be the greater of: 
  

	 	1.	The Bank’s share of the cash value of the policy on the date of such assignment, as defined in this Agreement; or 

  

	 	2.	The amount of the premiums that have been paid by the Bank prior to the date of such assignment. 

  
 If, within said fifteen (15) day period, the Insured fails to exercise said option, fails to procure the entire aforestated
cash payment, or dies, then the option shall terminate and the Insured (or assignee) agrees that all of the Insured’s rights, interest and claims in the policy shall terminate as of the date of the termination of this Agreement. 
  
 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. 
  
 Except as provided above, this Agreement shall terminate upon distribution of the death benefit proceeds in accordance with Paragraph VI above.

  

 4 

	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 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.	ERISA 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 Endorsement Method Split Dollar Agreement shall be the Executive Committee of the Board of
Directors of the Bank. As Named Fiduciary and Plan Administrator, the Bank shall be responsible for the management, control, and administration of this Split Dollar 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. 

  
 The funding policy for this Split Dollar Plan 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. 
  

 5 

	 	D.	Claim Procedures. 

  
 Claim forms or claim information as to the subject policy can be obtained by contacting Vero Consulting, LLC (804-288-7000). 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. 
  

	XII.	GENDER 

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

	XIII.	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. 
  

 6 

	XIV.	CHANGE OF CONTROL 

  
 “Change of Control” means (i) the merger of the Bank with any other corporations or entity as a result of which the holders of the voting
securities of the Bank outstanding immediately prior to such event would receive or retain less than fifty percent (50%) of the outstanding voting securities of the resulting or surviving entity of such merger; (ii) the acquisition of more than
twenty percent (20%) of the outstanding voting securities of the Bank (calculated on a fully diluted basis) by any person; or (iii) the sale of more than fifty percent (50%) in value of the assets of the Bank. For the purpose of this Executive Plan,
transfers on account of deaths or gifts, transfers between family members or transfers of a qualified retirement plan maintained by the Bank shall not be considered in determining whether there has been a Change of Control. 
  
 For the purposes of this Subparagraph XIV, the term “Bank” shall
also include Old Point Financial Corporation and Old Point Trust and Financial Services, N.A. For the purposes of this Subparagraph XIV, a “person” shall mean (i) an individual or a corporation, partnership (limited or general), trust,
limited liability company, business trust, association (mutual or stock, and including a mutual holding company), joint venture, pool, syndicate, unincorporated organization or any other form of entity; and (ii) any Affiliate of any individual or
entity listed in item (i). “Affiliate” shall mean any person who controls, is under common control with, or is controlled by the person to whom reference is being made; and for the purposes of this definition of Affiliate, control shall be
deemed to exist in a person who beneficially owns ten percent (10%) or more of the outstanding equity interests (or options, warrants, or other rights to acquire such equity interests) of another person. 
  
 Upon a Change of Control, if the Insured’s employment is subsequently
terminated, except for cause, then the Insured shall be deemed for purposes of the Agreement to continue to be employed until the later of the earliest date in which the Insured would have qualified for Retirement, or age 65 and, therefore, upon the
death of the Insured, the Insured’s beneficiary(ies) (designated in accordance with Paragraph III) shall receive the death benefit provided herein as if the Insured had died while employed by the Bank (see Paragraph VI). 
  

	XV.	AMENDMENT OR REVOCATION 

  
 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. 
  

 7 

	XVI.	EFFECTIVE DATE 

  
 The Effective Date of this Agreement shall be (enter date). 
  

	XVII.	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.

  

	XIII.	APPLICABLE LAW 

  
 The validity and interpretation of this Agreement shall be governed by the laws of the State of Virginia. 
  
 Executed at Hampton, Virginia this
             day of                     ,
        . 
  

	
	 THE OLD POINT NATIONAL BANK
 of PHOEBUS

Hampton,Virginia

  

									
	  

	 	 	 	 By:
	 	  

	 	 
	 Witness
	 	 	 	Title	 	 	 	 
				
	
	 	 	 	
	 	 
	 Witness
	 	 	 	Insured	 	 	 	 

  

 8 

 BENEFICIARY DESIGNATION FORM 
 FOR LIFE INSURANCE ENDORSEMENT METHOD 
 SPLIT DOLLAR PLAN AGREEMENT

  
 PRIMARY DESIGNATION: 
  

					
	 Name

	 	 Address

	 	 Relationship

  
                                       
                                        
                                        
                                        
                                        
               
  
                                       
                                        
                                        
                                        
                                        
               
  
                                       
                                        
                                        
                                        
                                        
               
  
  
 SECONDARY (CONTINGENT) DESIGNATION: 
  
                                       
                                        
                                        
                                        
                                        
               
  
                                       
                                        
                                        
                                        
                                        
               
  
                                       
                                        
                                        
                                        
                                        
               
  
 All sums payable under the Life Insurance Endorsement Method Split Dollar Plan Agreement by reason of my death shall be paid to the Primary Beneficiary, if he or she survives me, and if no Primary Beneficiary shall
survive me, then to the Secondary (Contingent) Beneficiary. 
  

					
	
	 	 	 	

	Signature of Insured	 	 	 	Date

  

 9Description of 2005 Executive Incentive Plan

 Exhibit 10.5 
  
 FY 2005 Incentive Plan Description 
  
 Purpose 
  
 The Incentive Plan is designed to motivate and reward participants for the achievement of fiscal year financial and non-financial objectives that directly contribute to the success of the Company overall. 

 
 Eligibility 
  
 Non-commission exempt employees hired no later than 12/31/04 for the upcoming year payout and employed on 12/31/05 (or through year-end).

  
 Target Incentive Award 
  
 The Target Incentive Award is the amount that the participant is eligible to receive if the
combined, weighted performance against the Plan objectives equals an overall achievement level of 50%-59%. Depending upon the participant’s officer level in the Company, Target Incentive Awards range from 3% to 18% of annualized base salary.

  
 In addition, participants are evaluated based on personal performance and
objectives. The actual award received by the participant could be higher or lower than the target amount as a result of their individual performance. 
  
 General Plan Provisions 
  
 Incentive award recommendations for all Plan participants are to be submitted to the Senior Vice President, Finance by December 1, 2005. Award payments require approval by the CEO, Executive Vice Presidents and Human
Resource Director. Documentation of individual objectives and accomplishments may be required to be submitted along with the award recommendations. 
  
 The CEO and Executive Vice Presidents reserve the right to adjust the overall incentive pool and/or individual incentive awards at their discretion for such matters and
amounts as deemed necessary to meet minimally acceptable EPS requirements; to adjust for individual performance that falls below the Plan threshold or above the Plan maximum; and/or to adjust for individual performance determined by the CEO or
Executive Vice Presidents to require either positive or negative adjustments. 
  
 Payments to participants are scheduled for the first payday in December 2005 and are subject to all applicable payroll taxes. 
  
 Nothing in this FY 2005 Incentive Plan Description or in any action taken thereunder shall affect the Company’s right to terminate at any time and for any reason the
employment of any associate who is a participant in the Plan. 

 Definitions 
  

			
	 Base Salary
	  	The annualized base salary of a participant for the Plan Year exclusive of bonuses or any special payments.
		
	 Earnings per Share (EPS)
	  	Net earnings, post incentive, but before unusual, one-time charges, gains or losses divided by average common shares outstanding.
		
	 Plan Year
	  	The period commencing January 1, 2005 and ending December 31, 2005.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]