Substantial Interest in a Business Entity Policy Term Definition

for purposes of this policy, means:

(1) a controlling interest;

(2) ownership of more than 10 percent of the voting interest;

(3) ownership of more than $5,000 of the fair market value;

(4) a direct or indirect participating interest by shares, stock, or otherwise, regardless of whether voting rights are included, in more than 10 percent of the profits, proceeds, or capital gains; or

(5) service as an officer.

NOTE: Does not include income from investment vehicles, such as mutual funds or retirement accounts, as long as the employee does not directly control the investment decisions made in those vehicles.