Document:

Net 1 UEPS Technologies, Inc.: Exhibit 10.53 - Filed by newsfilecorp.com

Exhibit 10.53 

[INCLUDE ON RMB LETTERHEAD]

	Blue Label Telecoms Limited 
	75 Grayston Drive 
	Morningside 
	Sandton 
	Attention: The Chief Executive Officer 

28 February, 2017 

Dear Sirs, 

BANK GUARANTEE 

	1. 	
      We, FirstRand Bank Limited (acting through its Rand
      Merchant Bank division), with registration number 1929/001225/06 having
      our head office at 1st Floor, 4 Merchant Place, Cnr Fredman Drive and
      Rivonia Road, Sandton, 2196 (the Guarantor), provide this bank
      guarantee (this Bank Guarantee) in accordance with clause 5.1.1
      (Conditions Precedent) of an amended and restated subscription agreement
      (the Subscription Agreement) concluded on or about 15 November 2016
      and further amended on or about 28 February, 2017, February, 2017 between
      Blue Label Telecoms Limited, registration number 2006/022679/06, (the
      Company) and Net1 Applied Technologies South Africa Proprietary
      Limited, registration number 2002/031446/07, (the Subscriber) in
      connection with the proposed subscription by the Subscriber of 117,924,528
      ordinary shares (the Shares) in the Company (Proposed
      Subscription). This Bank Guarantee replaces in its entirety the bank
      guarantee issued by the Guarantor to the Company dated 15 November 2016,
      which guarantee is automatically terminated on the issue of this Bank
      Guarantee.

	 	 
	2. 	
      We understand that:

	2.1 	
      the Proposed Subscription will be subject to the terms
      and conditions set out in the Subscription Agreement;

	 	 
	2.2 	
      the implementation of the Proposed Subscription will be
      subject to the fulfilment of the condition precedent set out in clause
      5.1.2 of the Subscription Agreement (the Subscription Condition
      Precedent) by not later than 16 November 2016; and

	 	 
	2.3 	
      should the Proposed Subscription be implemented in
      accordance with the terms and conditions of the Subscription Agreement,
      the aggregate subscription price for the Shares that will be payable by
      the Subscriber to the Company in accordance with the terms and conditions
      of the Subscription Agreement will be an amount of R2,000,000,000 (the
      Aggregate Subscription Price).

	3. 	
      The Guarantor, subject to the terms of this Bank
      Guarantee, hereby irrevocably guarantees the payment by the Subscriber to
      the Company of the Aggregate Subscription Price (the

	 	 
		
      Guaranteed Amount).

	 	 
	4. 	
      Subject to compliance with the terms of this Bank
      Guarantee (including but not limited to the provisions of paragraphs 8.4
      and 8.5, and provided the Company has given the Guarantor at least 5
      business days' prior written (at its address set out in paragraph 5 below)
      of the Subscription Date as designated in accordance with the Subscription
      Agreement, the Company shall be entitled to demand payment from the
      Guarantor either on (and not before) 10 March, 2017 or before 12h00 on 31
      May, 2017 (the Expiry Date and Time), of the Aggregate Subscription
      Price.

	 	 
	5. 	
      The demand against the Guarantor under this Bank
      Guarantee shall be furnished in writing to the Guarantor at its address:
      14th Floor, 1 Merchant Place, 1 Fredman Drive, Sandton, 2196 and marked
      for the attention of Head of Transaction Management, Investment Banking
      Division, with a copy to Chris Welthagen and Ziyaad Manie, and shall state
      that the Company is demanding payment in discharge of the Subscriber's
      obligation to settle the Aggregate Subscription Price in terms of the
      Subscription Agreement.

	 	 
	6. 	
      This Bank Guarantee shall be irrevocable and shall remain
      in full force and effect until the Expiry Date and Time, by which time and
      date the demand by the Company should have been received at our address. Any demand received at the
      Guarantor's address after the Expiry Date and Time shall not be
  considered.

	7. 	
      This Bank Guarantee shall be governed by, and construed
      in all respects in accordance with, the laws of the Republic of South
      Africa.

	 	 
	8. 	
      Notwithstanding anything contained herein
  above:

	8.1 	
      the Guarantor’s maximum liability under this Bank
      Guarantee shall not exceed the Guaranteed Amount;

	 	 
	8.2 	
      this Bank Guarantee shall be valid only until the earlier
      of the following times:

	8.2.1 	
      the time of day on the date on which the Aggregate
      Subscription Price is received by the Company (in the Designated Account
      under (and as defined in) the Subscription Agreement) (the Designated
      Account) from the Guarantor on behalf of the Subscriber;

	 	 
	8.2.2 	
      the delivery to the Company of two or more guarantees
      given by any of the Guarantor, Investec Bank Limited, Nedbank Limited or
      The Standard Bank of South Africa Limited, or (with the Company's prior
      written consent) any of their affiliates, on terms equivalent to those of
      this Bank Guarantee (save for such amendments necessary to take account of
      (i) the change in identity of the guarantor, (ii) the fact that the
      guarantor will only be guaranteeing a portion of the Aggregate
      Subscription Price, (iii) the change in address and contact details for
      any demand made by the Company under the guarantee, and (iv) the change in
      delivery address of a MAC Notice) and in an aggregate amount equal to the
      Guaranteed Amount;

	 	 
	8.2.3 	
      the delivery of any notice in terms of paragraph
    8.5;

	 	 
	8.2.4 	
      the date on which the shareholders of the Company, in
      general meeting, vote against placing the Shares under control of
      directors of the Company for purposes of issuing the Shares to the
      Subscriber; and

	 	 
	8.2.5 	
      the Expiry Date and Time,

		
      at which time it shall automatically expire and be of no
      further force or effect. Any demand received at the Guarantor's address
      after such expiry shall not be considered;

	 	 
	8.3 	
      the Guarantor is liable to immediately (i.e. within 1
      business day) pay the Guaranteed Amount into the Designated Account but
      only if you serve upon it a demand as stated above before the Expiry Date
      and Time, where after it ceases to be in effect and all the Company’s
      rights under this Bank Guarantee shall be forfeited and the Guarantor
      shall be discharged from all liability under this Bank Guarantee, whether
      or not the original guarantee is returned to the Guarantor;

	 	 
	8.4 	
      any demand for payment under this Bank Guarantee shall be
      accompanied by written confirmation from the Company to the Subscriber and
      the Guarantor confirming that, as at the day immediately prior to the date
      on which such demand is delivered to the Guarantor (the Confirmation
      Date), (i) no event contemplated in the Annex to this Bank Guarantee
      (other than clause 9.1.7 of such Annex) has occurred on or before the
      Confirmation Date; and (ii) in respect of clause 9.1.7 of the attached
      Annex, a positive statement that the relevant warranties in clause 8.1 of
      the Subscription Agreement are true and correct in all respects as at the
      Confirmation Date;

	 	 
	8.5 	
      the delivery by the Subscriber of a written notice in
      terms of the provisions of clause 8.2 of the Subscription Agreement
      (Conditions to Subscription and Subscriber's Right to Terminate) (the
      MAC Notice) at any time prior to 17h00 on the Confirmation Date
      (the MAC Cut Off Date and Time) in terms of which it summarily
      terminates the Subscription Agreement, to the Company (and with a copy
      to the Guarantor), shall cause this Bank Guarantee to immediately and
      automatically expire and cease to be of any further force or effect and
      any payment demand made by the Company under this Bank Guarantee after
      delivery of the MAC Notice shall therefore be a nullity and shall not be
      considered, provided that no MAC Notice delivered after the MAC Cut Off
      Date and Time shall be considered a nullity under this Bank Guarantee and
      shall not be considered. The MAC Notice shall be furnished in writing to
      the Guarantor at its address: 14th Floor, 1 Merchant Place, 1 Fredman
      Drive, Sandton, 2196 and marked for the attention of Head of Transaction
      Management, Investment Banking Division, with a copy to Chris Welthagen
  and Ziyaad Manie prior to the MAC Cut Off Date and Time;

	8.6 	
      only the Company shall be entitled to demand payment of
      any sum from the Guarantor under this Bank Guarantee; and

	 	 
	8.7 	
      no payment of all or any part of the Guaranteed Amount
      shall be made if doing so would be illegal or contrary to applicable
      law.

	9. 	
      This Bank Guarantee is neither negotiable nor
      transferable.

	 	 
	10. 	
      Promptly on receipt by the Company of the Aggregate
      Subscription Price as contemplated in paragraph 8.2.1 and, in any event,
      by no later than 3 Business Days thereafter, the Company shall deliver to
      the Guarantor the original of the Bank Guarantee at the address set out in
      paragraph 5.

	/s/ Niel
      van Zyl 	 	/s/ Ziyaad Manie 
  
	 For and on behalf of: 	 	For and on behalf of: 
	 FirstRand Bank Limited (acting
      through 	 	FirstRand Bank Limited (acting
      through 
	 its Rand Merchant Bank division) 	 	its Rand Merchant Bank
      division) 
  
	 Name: 	Niel
      van Zyl 	 	 Name: 	 Ziyaad Manie 
	 	 	 	 	 
	 Office: 	Authorised 	 	 Office: 	 Authorised 
	  	  	 	  	 
	  	  	 	  	 
	/s/
      Herman G. Kotzé 	 	/s/ Brett M. Levy 
  
	 For and on behalf of: 	 	For and on behalf of: 
	 NET1 APPLIED TECHNOLOGIES SOUTH 	 	BLUE LABEL TELECOMS LIMITED
  
	 AFRICA PROPRIETARY LIMITED
      
  	 	 
	 Name: 	Herman
      G. Kotzé 	 	 Name: 	 B.M Levy 
	 	 	 	 	 
	 Office: 	Director 	 	 Office: 	 CEO 

EXTRACT FROM CLAUSE 9.1 OF THE SUBSCRIPTION AGREEMENT

	9 	
      CONDITIONS TO SUBSCRIPTION AND SUBSCRIBER'S RIGHT
      TO TERMINATE

	 	 
	9.1 	
      Notwithstanding anything to the contrary contained in
      this Agreement (including the fulfilment or waiver, as the case may be, of
      the Condition Precedent), the Subscriber will only be obliged to subscribe
      for the Subscription Shares if, as at 23h50 on the day immediately
      preceding the Subscription Date -

	9.1.1 	
      neither the Group nor any Group Company has disposed
      of any of its material assets outside of the ordinary or usual course of
      business;

	 	 
	9.1.2 	
      no Group Company has been liquidated or placed under
      judicial management, whether provisionally or finally (and no application
      has been launched in this regard);

	 	 
	9.1.3 	
      no Group Company has commenced business rescue
      proceedings under the Companies Act;

	 	 
	9.1.4 	
      no Group Company has, in respect of the 18 (eighteen)
      month period prior to the Signature Date, committed an act which, if it
      were a natural person would constitute an act of insolvency as defined in
      the Insolvency Act, No 24 of 1936, or any other applicable
  Act;

	 	 
	9.1.5 	
      no Group Company has, in respect of the 18 (eighteen)
      month period prior to the Signature Date, compromised with its creditors
      generally, or attempted to do so;

	 	 
	9.1.6 	
      in respect of the 18 (eighteen) month period prior to
      the Signature Date, no material creditor of any Group Company has given
      notice of its intention to take any action to enforce its rights and/or
      remedies in terms of any material debt owed to it;

	 	 
	9.1.7 	
      each of the warranties contained in clause 8.1 is true
      and correct in all respects; and

	 	 
	9.1.8 	
      no interdict, judgment or other order or action of any
      court or governmental authority restraining, prohibiting or rendering
      illegal the implementation of the transactions contemplated hereby shall
      be in effect, and no legal proceeding shall have been instituted by any
      person (including any governmental authority) seeking to prohibit,
      restrict or delay or declare illegal the implementation of the
      transactions contemplated in this
Agreement.Exhibit 10.1

 

FOUR OAKS BANK & TRUST COMPANY DEATH BENEFIT ONLY PLAN

 

TABLE OF CONTENTS

	 	PAGE
	 	 
	
ARTICLE I—PURPOSE

	
1

	
ARTICLE II—DEFINITIONS

	
1

 

	
2.1

	
Beneficiary

	
1

	
2.2

	
Board

	
1

	
2.3

	
Committee

	
1

	
2.4

	
Effective Date

	
1

	
2.5

	
Eligible Executive

	
1

	
2.6

	
ERISA

	
1

	
2.7

	
Participant

	
1

	
2.8

	
Participation Agreement

	
1

	
2.9

	
Plan

	
2

 

	
ARTICLE III—PARTICIPATION

	
2

 

	
3.1

	
Commencement of Participation

	
2

	
3.2

	
Termination of Participation

	
2

 

	
ARTICLE IV—BENEFITS

 

	
2

	
4.1

	
Death Benefit

	
2

	
4.2

	
Insurance Policy and Proceeds

	
3

 

	
ARTICLE V—BENEFICIARIES

 

	
3

	
5.1

	
Designation

	
3

	
5.2

	
Changing a Beneficiary Designation

	
3

	
5.3

	
Absence of Valid Designation

	
3

	
5.4

	
Incompetency; Minor

	
3

 

	
ARTICLE VI—ADMINISTRATION

 

	
4

	
6.1

	
Administration

	
4

	
6.2

	
Named Fiduciary

	
4

	
6.3

	
Indemnity of Committee

	
4

 

	
 ARTICLE VII—CLAIMS PROCEDURES

 

	
4

	
7.1

	
Claims Procedure

	
4

 

 

	
 ARTICLE VIII—MISCELLANEOUS

 

	
5

	
8.1

	
Amendment, Suspension or Termination of Plan

	
5

	
8.2

	
Unfunded Agreement

	
5

	
8.3

	
Unsecured General Creditor

	
5

	
8.4

	
Nonassignability

	
5

	
8.5

	
Not a Contract of Employment

	
5

	
8.6

	
Successors

	
6

	
8.7

	
Governing Law

	
6

	
8.8

	
Validity

	
6

	
8.9

	
Captions

	
6

	
8.10

	
Notice

	
6

	
8.11

	
Entire Agreement

	
6

SCHEDULE A

Participation Agreement

SCHEDULE B

Beneficiary Designation

FOUR OAKS BANK & TRUST COMPANY

DEATH BENEFIT ONLY PLAN

ARTICLE I—PURPOSE

The purpose of this Death Benefit Only Plan (the "Plan") is to provide death benefits to the beneficiaries of certain select employees of Four Oaks Bank & Trust Company ("Employer").

ARTICLE II—DEFINITIONS

2.1      Beneficiary

"Beneficiary" means the person, persons or entity entitled to receive Plan benefits upon a Participant's death pursuant to Article IV of the Plan.

2.2      Board

"Board" means the Board of Directors of Employer.

2.3      Committee 

"Committee" means the Compensation Committee of the Board or a subcommittee thereof, or any other committee designated by the Board to administer this Plan.  The members of the Committee shall be appointed from time to time by and shall serve at the discretion of the Board.   If the Committee does not exist or cannot function for any reason, the Board may take any action under the Plan that would otherwise be the responsibility of the Committee, in which case references to the "Committee" shall be deemed to be references to the Board.

2.4      Effective Date

            "Effective Date" means January 1, 2017.

2.5      Eligible Executive

"Eligible Executive" means an executive of Employer selected by the Committee to participate in the Plan.

2.6      ERISA

"ERISA" means the Employee Retirement Income Security Act of 1974, as amended.

2.7      Participant

"Participant" means an Eligible Executive who meets the requirements of Article III.

2.8      Participation Agreement

"Participation Agreement" means the agreement filed with the Committee by the Eligible Executive on a form prescribed by the Committee that acknowledges assent to the terms of the Plan.

PAGE 1- DEATH BENEFIT ONLY PLAN

2.9      Plan

"Plan" means this Four Oaks Bank & Trust Company Death Benefit Only Plan, as amended from time to time.

ARTICLE III—PARTICIPATION

3.1      Commencement of Participation

The Committee shall select the executives who are eligible to participate in the Plan. In no event shall an Eligible Executive become a Participant in the Plan before completing a Participation Agreement and such other forms as are deemed necessary by the Committee as a condition to the purchase of life insurance on the life of the Eligible Executive by Employer.

Notwithstanding any other provision of this Plan, an Eligible Executive shall become a Participant only if life insurance on the life of such Eligible Executive can be purchased at a rate that is acceptable to the Committee. If an Eligible Executive cannot be insured at an acceptable rate, the Committee may determine in its sole discretion that the Eligible Executive shall not participate in the Plan. In the event of the Eligible Executive's suicide during the first two (2) years in the Plan, or if the Eligible Executive makes any material misstatement of information or non-disclosure of medical history, then no benefits shall be payable to the Eligible Executive under the Plan, except that benefits may be payable in a reduced amount in the sole discretion of the Administrator.

Participation for an Eligible Executive shall commence upon the date the life insurance policy purchased on the life of the Eligible Employee becomes effective.

3.2      Termination of Participation

A Participant's participation in the Plan will be terminated and benefits will not be paid under this Plan if any of the following occurs prior to the Participant's death: 

(a)      The Participant's service with Employer is terminated prior to the date of his or her death;

(b)      The Plan is terminated by Employer prior to the date of Participant's death;

(c)      The life insurance policy on the Participant's life is not in force on the date of his or her death; 

(d)      Employer becomes insolvent or declares bankruptcy prior to Participant's death; or

(e)      The Committee, at any time, in the Committee's discretion, removes a Participant or class of Participants from eligibility to participate in the Plan.

ARTICLE IV—BENEFITS

4.1      Death Benefit

In the event of a Participant's death prior to termination of participation described in Section 3.2 of the Plan, and provided Employer receives a death benefit from a life insurance policy on Participant's life, Employer shall pay to the deceased Participant's Beneficiary an amount noted in the Participation Agreement in a lump sum within sixty (60) days of the latest of Employer's (i) receiving reasonable documentation of the Participant's death, (ii) receiving the death benefit under the life insurance policy on Participant's life, and (iii) establishing the identification of the Beneficiary.  Employer shall be responsible for withholding any payroll taxes and income taxes due; however, the Beneficiary shall be responsible for the payment of any taxes due as a result of the payment.

PAGE 2- DEATH BENEFIT ONLY PLAN

4.2      Insurance Policy and Proceeds

Neither the Participant nor the Beneficiary shall have any interest in any life insurance policy purchased by Employer, and all proceeds payable from any policy purchased on the Participant's life shall belong to Employer. Upon a participant's termination of participation described in Section 3.2 of the Plan, Employer shall have complete discretion to maintain, exchange, or terminate any policy on the life of the terminated Participant.

ARTICLE V—BENEFICIARIES

5.1      Designation

Each Participant shall have the right, at any time, to designate on a form provided by Employer, any person, persons or trust to receive the benefits provided under the Plan in the event of the Participant's death. Such Beneficiary designation shall become effective only when filed with Employer during the Participant's lifetime.

5.2      Changing a Beneficiary Designation

A Participant may revoke a Beneficiary designation by filing with Employer a new designation during the Participant's lifetime.

5.3      Absence of Valid Designation

If, upon the death of a Participant, there is no valid Beneficiary designation on file with Employer, the benefits shall be paid first to the Participant's spouse (as defined under state law), if living. If the Participant has no living spouse, the benefit shall be paid to the Participant's estate.

5.4      Incompetency; Minor

Every person receiving or claiming benefits under the Plan shall be conclusively presumed to be mentally competent and of age until the date on which Employer receives a written notice, in a form and manner acceptable to the Committee, that such person is incompetent or a minor, for whom a guardian or other person legally vested with the care of his or her person or estate has been appointed; provided, however, that if Employer shall find that any person to whom a benefit is payable under the Plan is unable to care for his or her affairs because of incompetency, or is a minor, any payment due (unless a prior claim therefore shall have been made by a duly appointed legal representative) may be paid to the spouse, a child, a parent or a brother or sister, or to any person or institution deemed by Employer to have incurred expense for such person otherwise entitled to payment. To the extent permitted by law, any such payment so made shall be a complete discharge of liability under the Plan.

PAGE 3- DEATH BENEFIT ONLY PLAN

ARTICLE VI—ADMINISTRATION

6.1      Administration

The Plan shall be administered by the Committee, which shall have full and exclusive discretionary power to make, interpret and enforce all appropriate rules and regulations for the administration of the Plan and to decide or resolve any and all questions arising under this Plan.

6.2      Named Fiduciary

Employer shall be the named fiduciary under this Plan. As named fiduciary, Employer shall be responsible for and have the authority to manage the operation and administration of the Plan and shall be responsible for establishing and carrying out a funding policy and method consistent with the objectives of this Plan. 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.

6.3      Indemnity of Committee

Employer shall, and hereby does, indemnify and hold harmless the Committee against any and all claims, loss, damage, expense or liability arising from any action or failure to act with respect to this Plan, except in the case of gross negligence or willful misconduct.

ARTICLE VII—CLAIMS PROCEDURES

7.1      Claims Procedure

(a)      Any person claiming a benefit, requesting an interpretation or ruling under this Plan, or requesting information under this Plan shall present the request in writing to Employer, which shall respond in writing within a reasonable period of time, but not later than ninety (90) days after receipt of the request.

(b)      Denial of Claim.  If the claim or request is denied, the written notice of denial shall state:

(i)      The reason for denial, with specific reference to the provisions in the Plan on which the denial is based;

(ii)      A description of any additional material or information required and an explanation of why it is necessary; and

(iii)      An explanation of the Plan's claims review procedure.

(c)      Review of Claim.  Any person whose claim or request is denied may request a review by notice given to Employer within sixty (60) days following receipt of notification of the adverse determination. The claim or request shall be reviewed by Employer which may, but shall not be required to, grant the claimant a hearing. On review, the claimant may have representation, examine pertinent documents, and submit issues and comments in writing.

(d)      Final Decision.  The decision on review shall normally be made within sixty (60) days. If an extension of time is required for a hearing or other special circumstances, the claimant shall be notified within such sixty (60) day period of an extension which shall not be for more than an additional sixty (60) days.  Employer's decision shall be delivered in writing to the claimant and shall state the reason and the relevant provisions in the Plan for the decision. All decisions on review shall be final and bind all parties concerned.

PAGE 4- DEATH BENEFIT ONLY PLAN

ARTICLE VIII—MISCELLANEOUS

8.1      Amendment, Suspension or Termination of Plan

The Board may, in its sole discretion, amend, terminate or suspend this Plan at any time in whole or in part. Any amendment may provide different benefits or amounts of benefits which may be greater than or lesser than those described in this Plan; provided, however that no termination, suspension or amendment shall adversely affect the benefits of any Beneficiary of a Participant who died prior to the adoption of such termination, suspension or amendment. Upon any amendment, termination, or suspension of the Plan, Employer shall have complete discretion to maintain, exchange, or terminate any policy on the life of any and all Participants or former Participants.

8.2      Unfunded Agreement

This Plan is an unfunded welfare benefit plan maintained primarily to provide death benefits for a select group of "management or highly compensated employees" within the meaning of Sections 201, 301, and 401 of ERISA, and therefore is exempt from the provisions of Parts 2, 3 and 4 of Title I of ERISA.  The Board may terminate the Plan and make no further benefit payments or remove certain employees as Participants if it is determined by the United States Department of Labor, a court of competent jurisdiction, or an opinion of counsel that the Plan constitutes an employee welfare benefit plan within the meaning of Section 3(1) of ERISA (as currently in effect or hereafter amended) which is not so exempt.

8.3      Unsecured General Creditor

Participants, Beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interest or claims in any property or assets of Employer, nor shall they be beneficiaries of, or have any rights, claims or interests in any life insurance policies, annuity contracts or the proceeds therefrom owned or which may be acquired by Employer. Such policies or other assets of Employer shall not be held under any trust for the benefit of or held in any way as collateral security for the fulfilling of the obligations of Employer under this Plan. Any and all of Employer's assets and policies shall be, and remain, the general unpledged, unrestricted assets of Employer. Employer's obligation under this Plan shall be that of an unfunded and unsecured promise of Employer to pay money in the future.

8.4      Nonassignability

Neither the Participant nor any other person shall have any right to commute, sell, assign, transfer, hypothecate or convey in advance of actual receipt the amounts, if any, payable under this Plan, which are, and all rights to which are, expressly declared to be unassignable and non-transferable. No part of the amounts payable shall, prior to actual payment, be subject to seizure or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, nor be transferable by operation of law in the event of a Participant's or any other person's bankruptcy or insolvency.

8.5      Not a Contract of Employment

The terms and conditions of this Plan shall not be deemed to constitute a contract of employment between Employer and the Participant.

PAGE 5- DEATH BENEFIT ONLY PLAN

8.6      Successors

The rights and obligations of Employer under this Plan shall inure to the benefit of, and shall be binding upon, the successors and assigns of Employer.

8.7      Governing Law

The provisions of the Plan shall be construed and interpreted according to the laws of the state of North Carolina except as preempted by ERISA.

8.8      Validity

If any provision of this Plan is held illegal, 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.

8.9      Captions

The captions of the articles, sections and paragraphs of this Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions.

8.10      Notice

Any notice or filing required or permitted to be given to Employer under the Plan shall be sufficient if in writing and hand delivered, or sent by registered or certified mail to the Committee or the Secretary of Employer. 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 on the receipt for registration or certification.

8.11      Entire Agreement

This Plan sets forth the entire understanding with respect to the subject matter hereof and supersedes all prior oral or written representations, statements, understandings or agreements. No consent or waiver by Employer relating to one event shall apply to any subsequent event, or obligate Employer to grant any subsequent consent or waiver.

IN WITNESS WHEREOF, Employer has caused this Plan to be executed pursuant to resolution of the Board, by its duly authorized officer effective as of January 1, 2017.

	 	FOUR OAKS BANK & TRUST COMPANY	 
	 	 	 	 
	
 

	
By: 

	/s/ Deanna W. Hart 	 
	 	 	Deanna W. Hart	 
	 	 	Executive Vice President	 
	 	 	Chief Financial Officer	 
	 	 	February 27, 2017	 

PAGE 6- DEATH BENEFIT ONLY PLAN

SCHEDULE A

Four Oaks Bank & Trust Company

Death Benefit Only Plan

Participation Agreement

(Please Print or Type Information)

I, «Full_Name», hereby elect to participate, as of January 1, 2017 in the Four Oaks Bank & Trust Company Death Benefit Only Plan (the "Plan").

By electing to participate, I acknowledge that:

1.  Provided (i) I am employed by Four Oaks Bank & Trust Company ("Employer") on the date of my death; (ii) Employer is the beneficiary of a life insurance policy on my life on the date of my death; and (iii) Employer receives the death benefit from such life insurance policy, my Beneficiary will be entitled to receive a lump sum payment from Employer of ________s ($xxx,xxx).

2.  My Beneficiary will not be entitled to receive directly from an insurance company any of the proceeds of life insurance policies owned by Employer on my life.

3.  This Participation Agreement will not become effective unless and until a life insurance policy is issued to Employer on my life.

4.  Employer has the right, at any time, to surrender the Policy for its cash value, and neither I nor my Beneficiary have any interest whatsoever in the cash value. If the policy is surrendered, my participation in the Plan will terminate and no benefit will be payable to my Beneficiary.

5.  I may change my designated Beneficiary at any time and it will become effective when the change is filed with Employer.

Claim Procedure:  If you or your Beneficiary does not receive a benefit when due, you may file a claim in writing to Manager, Human Resources, Four Oaks Bank & Trust Company. For a copy of the Claim Procedure, please contact the Human Resources Manager at Four Oaks Bank & Trust Company.

	 	 	 
	
Signature

	 	
Date

Accepted by Four Oaks Bank & Trust Company

	
By:

	 	 	 
	 	
Signature

	 	
Date

 

 

 

SCHEDULE A

SCHEDULE B

Four Oaks Bank & Trust Company

Death Benefit Only Plan

Beneficiary Designation

(Please Print or Type Information)

I, «Full_Name», hereby designate the following to receive amounts payable by reason of my death:

	 
	
 

 

	
 

 

	
 

 

	
 

 

Information Concerning Primary Beneficiary

	 	 	 
	
Street Address

	 	
Date of Birth*

	 	 	 
	
City, State, Zip Code

	 	 

*Will not be applicable for corporate trustee or in certain other cases.

	 	 	 
	
Signature of Executive

	 	
Date

	 	 	 
	
Print Name (Executive)

	 	 

SCHEDULE B1

SAMPLE BENEFICIARY DESIGNATIONS

	
Estate

	
My estate.

 

	
One primary beneficiary

	
MARGARET H. ROE, my wife.

 

	
One primary; unnamed children as contingent

	
My wife, MARGARET H. ROE, if living at my death; if not then living, in equal shares to my children who are living at my death.

 

	
One primary; unnamed children and their children as contingent (Per Stirpes)

	
My wife, MARGARET H. ROE, if living at my death; if not then living, in equal shares to my children who are living and to the living children of any deceased child of mine.

 

	
One primary; estate as contingent 

	
My wife, MARGARET H. ROE, if living at my death; if not then living, to my estate.

 

	
One primary; one contingent

	
My wife, MARGARET H. ROE, if living at my death; if not then living, to my son, JOHN ROE.

 

	
One primary; two contingent

	
My wife, MARGARET H. ROE, if living at my death; if not then living, in equal shares to my parents, NANCY ROE and JAMES ROE, as shall then be living.

 

	
Three or more primary; one contingent

	
In equal shares to my children, JOHN ROE, HAROLD ROE, and KATHERINE ROE, who are living at my death; should none then be living, to my wife, MARGARET H. ROE.

 

	
Unequal shares:  show the amount to be paid to each beneficiary as a percentage or fraction and not as a specific dollar amount

	
40% to my wife, MARGARET H. ROE, 20% to JOHN ROE, my son, and 40% to NANCY ROE, my mother. If any of the primary beneficiaries are not living at the time of my death, his or her share shall be paid to XYZ CHARITY.

	
Bank as Trustee

	
The First National Bank, Middletown, Ohio, as Trustee under Trust Agreement dated May 1, 2000.*

 

	
One individual as Trustee

	
John Doe as Trustee under Trust Agreement dated May 1, 2000.*

*Title of trust may be changed to Deed of Trust, Declaration of Trust, Indenture of Trust, Trust Indenture, or similar title, as appropriate.

These sample designations are intended for informational purposes only and should not be construed as legal or tax advice and are not intended to replace the advice of a qualified attorney, or a tax and estate plan advisor. Please consult with your attorney or tax and estate plan advisor as your circumstances require.

 

 

SCHEDULE B2

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