{"id":39886,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/executive-life-insurance-agreement.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"executive-life-insurance-agreement","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/executive-life-insurance-agreement.html","title":{"rendered":"Executive Life Insurance Agreement"},"content":{"rendered":"<pre>\n                      GE EXECUTIVE LIFE INSURANCE AGREEMENT\n                                (Rev. Sept. 2000)\n\n\n\n\n   THIS AGREEMENT made and entered into effective the __________________________\n\nday of ________________ , 20__, by and between General Electric Company\n(\"Employer\"), and  _______________________________ (\"Owner\");\n\n   WHEREAS, _______________________________ (\"Employee\") is a valued employee of\nEmployer and Employer wishes to retain him in its employ; and\n\n   WHEREAS, as an inducement to Employee's continued employment, Employer wishes\nto assist Employee with his personal life insurance program by entering into\nthis Life Insurance Agreement with the Owner.\n\n   NOW, THEREFORE, the Employer and Owner agree as follows:\n\n1. IDENTIFICATION OF POLICY. This Agreement relates to the life\ninsurance policy (\"Policy\") issued by Metropolitan Life Insurance Company\n(\"Insurer\") which is described on Exhibit A of this Agreement. Exhibit A shall\nbe updated annually as determined by the Employer effective each ____________\n1st during the term of this Agreement.\n\n2. OWNERSHIP OF POLICY. Owner or Owner's transferee (hereinafter\ncollectively \"Owner\") shall be the owner of the Policy, and may exercise all\nownership rights granted to the Owner by the terms of the Policy.\nNotwithstanding any other provisions of this Agreement or any form of policy\nassignment executed by Owner in connection with this Agreement, it is the\nexpress intention of the parties to reserve to the Owner all rights in and to\nthe Policy granted to the Owner by its terms, including, but not limited to, the\nright to assign the Owner's interest in the Policy, the right to change the\nbeneficiary of the Policy, the right to exercise settlement options, the right\nto borrow against the cash value of the Policy, and the right to surrender or\ncancel the Policy, in whole or in part. Employer shall neither have nor exercise\nany right in or to the Policy which could, in any way, endanger, defeat or\nimpair any of the rights of the Owner in the Policy, including the right to\ncollect the proceeds of the Policy in excess of the amount due the Employer, as\nprovided in this Agreement. The only rights in and to the Policy granted to the\nEmployer shall be limited to its security interest in the \"surrender value\" of\nthe Policy, which for all purposes of this Agreement shall be as defined in the\nPolicy, and a portion of the death benefit of the Policy, as hereinafter\nprovided. The Employer shall not assign any of its rights in the Policy to\nanyone other than the Owner.\n\n3.  PREMIUM. The Owner shall contribute to the Employer an amount equal\nto the annual economic benefit derived by the Owner (as determined by the\nEmployer in accordance with Revenue Rulings 64-328 and 66-110 and set forth in\nitem 7 of Exhibit A), or, if less, the premium for the year as set forth in item\n6 of Exhibit A. If the Owner is also the Employee, such contribution shall be\nmade by periodic payroll deductions. If the Owner is other than the Employee,\nthe Owner shall pay the Owner's portion of the premium to the Employer in a lump\nsum at the beginning of each Policy year. The Employer shall pay the remainder\nof each total premium on the Policy. The total annual premium due on such\nPolicy, effective ___________ 1st of each year during the term of this\nAgreement, shall be set forth in item 6 of Exhibit A of this Agreement, as\ndetermined by the Employer.\n\n4.  COLLATERAL ASSIGNMENT. Contemporaneously with this Agreement, the\nOwner has made a collateral assignment of the Policy to the Employer under the\nform of Assignment attached as Exhibit B, as it may be amended from time to time\nto reflect any modifications to Exhibit A with respect to the Insurer or policy\nnumber, which Assignment gives the Employer the right to recover the premiums it\nhas paid on the Policy less amounts received under this Agreement from the Owner\n(\"net premium outlay\") from the surrender value of the Policy and to recover a\nportion of the death benefit of the Policy. The interest of the Employer in and\nto the Policy shall be specifically limited to the following rights:\n\na. The right to recover the lesser of its net premium outlay or the surrender\n   value of the Policy in the event the Policy is totally surrendered or\n   cancelled by the Owner, or the right to receive the surrender proceeds to the\n   extent of its net premium outlay in the event the Policy is partially\n   surrendered by the Owner as provided in paragraph 5;\n\nb. The right to recover the death benefit proceeds remaining after the Owner's\n   death benefit set forth in item 5 of Exhibit A has been paid to the Owner's\n   designated beneficiary upon the death of Employee, as provided in paragraph 7\n   below;\n\nc. The right to recover the lesser of its net premium outlay or the surrender\n   value of the Policy, or to receive ownership of the Policy, in the event of\n   termination of this Agreement, as provided in paragraphs 6(b), 6(c) and 6(d)\n   below; and\n\nd. The right to recover its net premium outlay to the extent a Policy loan made\n   by the Owner in any year exceeds the lesser of the Owner's portion of the\n   premium for that year as specified in item 7 of Exhibit A or the increase for\n   that year in the surrender value of the Policy, as provided in paragraph 8.\n\n5.  SURRENDER OR CANCELLATION. The Owner shall have the sole right to\nsurrender or cancel the Policy, in whole or in part, and to receive the\nsurrender value, subject to the provisions of this paragraph 5. In the event of\nany partial or complete surrender or cancellation, the Employer shall be\nprovided with written notice of such surrender or cancellation at least fifteen\n(15) days prior to a distribution from the Insurer. Subject to paragraph 6, in\nthe event of any partial surrender, the Employer shall be entitled to recover\nthe lesser of its net premium outlay or the surrender proceeds. In the event of\na complete surrender or cancellation, the Employer shall be entitled to recover\nthe lesser of its net premium outlay or the surrender value of the Policy.\n\n6.  TERMINATION OF AGREEMENT.\n\n\n     a.   This Agreement shall terminate upon the earlier to occur of:\n\n          (1)  The date on which either party to the Agreement provides notice\n               in writing to the other party of the desire to terminate; or\n\n          (2)  The Employee's termination of employment (other than retirement,\n               disability or other Company approved separation) with the\n               Employer; or\n\n          (3)  The latter of:\n\n               (a)  The tenth anniversary of the effective date of this\n                    Agreement; or\n\n               (b)  The date on which the Employee attains age 60.\n\n     b.   Within thirty (30) days following the termination of this Agreement,\n          the Owner shall pay to the Employer the Employer's net premium outlay.\n          Upon receipt by the Employer of such amount, the Employer shall\n          execute an appropriate instrument of release of the Assignment of the\n          Policy.\n\n     c.   If the Owner fails to pay such amount within such thirty (30) day\n          period, the Owner shall execute any and all instruments that may be\n          required to vest ownership of the Policy in the Employer. Thereafter,\n          the Owner shall have no further interest in the Policy.\n\n     d.   If the Owner fails to surrender the policy and execute the instruments\n          required by paragraph 6(b) within such thirty (30) day period, the\n          Employer may notify the Insurer that the Employer intends to exercise\n          its rights under the Assignment. In such event, the Insurer shall pay\n          to the Employer the net premium outlay specified in paragraph 6(b).\n\n7. DEATH. Upon the death of Employee, the Employer shall receive its net premium\noutlay. The balance of the death benefit provided under the Policy, if any,\nshall be paid directly to the beneficiary.\n\n8. LOANS. The Owner shall have the sole right to borrow against the Policy, and\nthe Employer shall have no right to obtain loans against the Policy, directly or\nindirectly, from the Insurer or from any other person, or to pledge or assign\nthe Policy as security for any loan. If the Owner in any Policy year borrows\nfrom the Policy an amount in excess of the Owner's portion of the annual premium\nspecified in item 7 of Exhibit A for that year or the increase in the surrender\nvalue of the Policy for the year, whichever is less, the Employer shall be\nentitled to receive such excess amount, to the extent of its net premium outlay\nunder this Agreement. The Owner shall pay any interest due on any Policy loan it\nobtains.\n\n9. TRANSFEREE. In the event Owner shall transfer all of its interest in the\nPolicy, then all of Owner's interest in the Policy and in this Agreement shall\nbe vested in its transferee, who shall be substituted as a party under this\nAgreement, and the transferring Owner shall have no further interest in the\nPolicy or in this Agreement.\n\n10. SUCCESSORS AND ASSIGNS. This Agreement shall bind Employer, its successors\nand assigns, and Owner and their heirs, executors, administrators and\ntransferees, and any Policy beneficiary. The Employer agrees that it will not\nmerge or consolidate with another employer, corporation, or organization, or\npermit its business and activities to be taken over by any other organization\nunless or until the succeeding or continuing employer, corporation or other\norganization shall expressly assume the rights and obligations of the Employer\nset forth in this Agreement.\n\n11. EFFECT ON EMPLOYMENT. This Agreement shall not be deemed to constitute a\ncontract of employment between the parties, nor shall any provision restrict the\nright of Employee to terminate his employment, at any time not in contravention\nof any applicable employment agreement.\n\n12. INSURER. The Insurer shall be bound only by the provisions of and\nendorsements on the Policy, and any payments made or action taken by it in\naccordance with the Policy shall fully discharge it from all claims, suits and\ndemands of all persons whatsoever. Except as specifically provided by\nendorsement on the Policy and as provided in the Assignment, the Insurer shall\nin no way be bound by the provisions of this Agreement.\n\n13. PAYMENT. It is agreed that benefits may be paid under the Policy by the\nInsurer either by separate checks to the parties entitled thereto, or by joint\ncheck. In the latter instance, the Owner and the Employer agree that benefits\nshall be divided as provided herein.\n\n14. AMENDMENT. Except as provided in paragraph 6 and in paragraphs 1 and 3\npertaining to Exhibit A, this Agreement may not be cancelled, amended, altered\nor modified, except by a written instrument signed by all of the parties.\n\n15. NOTICES. Any notice, consent or demand required or permitted to be given\nunder the provisions of this Agreement by one party to another shall be in\nwriting, shall be signed by the party giving or making the same, and may be\ngiven either by delivering the same to such other party personally, or by\nmailing the same, by United States certified mail, postage prepaid, to such\nparty, addressed to his, her or its last known address as shown on the records\nof the Employer. The date of such mailing shall be deemed the date of such\nmailed notice, consent or demand.\n\n16. GENDER AND NUMBER. Whenever any words are used herein in the masculine\ngender, they shall be construed as though they were also used in the feminine or\nneuter gender in all cases where they would so apply, and whenever any words are\nused herein in the singular or plural form, they shall be construed as though\nthey were also used in the other form in all cases where they would so apply.\n\n17. CONTROLLING LAW. This Agreement, and the rights of the parties hereunder,\nshall be governed by and construed pursuant to the laws of the State of New York\nexcept to the extent preempted by federal law.\n\nIN WITNESS WHEREOF, the parties have executed this Agreement effective the day\nand year first above written.\n\n\n\nOwner's Signature:                               General Electric Company\n\n\n\n\n\n----------------------------                   By\n                                                   ---------------------------\n----------------------------                       Senior Vice President -\n        Print Name                                 Corporate Human Resources\n\n\n\n--------------------------------------------------------------------------------\n\n\n\n                                                                       EXHIBIT A\n\n                               LIFE INSURANCE PLAN\n\n                            INSURANCE POLICY SCHEDULE\n\n\n\n1.  Insured's Name:\n                                            ------------------------------------\n\n2.  Effective Date:\n                                            ------------------------------------\n\n3.  Insurer:                                 Metropolitan Life Insurance Company\n                                            ------------------------------------\n\n4.  Policy Number:\n                                            ------------------------------------\n\n5.  Owner's Portion of Death Benefit:\n    (End of Year 1)\n                                            ------------------------------------\n\n6.  Total Annual Premium:\n                                            ------------------------------------\n\n7.  Owner's Portion of Annual Premium:\n                                            ------------------------------------\n\n8.  Owner's Portion of Cash Value:\n    (End of Year 1)\n                                            ------------------------------------\n\n9.  Policyowner:\n                                            ------------------------------------\n\n10. Beneficiary:\n                                            ------------------------------------\n\n--------------------------------------------------------------------------------\n\n\n\n                                                                       EXHIBIT B\n\n                              COLLATERAL ASSIGNMENT\n\n\n\nTHIS ASSIGNMENT, made and entered into effective the ____________________ day of\n_________________ , 20___, by the undersigned ________________________ as owner\n(\"Owner\") of that certain Life Insurance Policy No. issued by Metropolitan Life\nInsurance Company (\"Insurer\") and any supplementary contracts issued in\nconnection with such policy (said policy and contracts herein called \"Policy\"),\nupon the life of ____________________________ (\"Insured\"), to General Electric\nCompany, a New York corporation, (\"Assignee\").\n\n                                   WITNESSETH:\n\n     WHEREAS, the Insured is a valued employee of the Assignee, and the Assignee\nwishes to retain him in its employ;\n\n     WHEREAS, as an inducement to the Insured's continued employment, the\nAssignee desires to assist the Insured with his personal life insurance program\nby contributing a portion of the annual premium due on the Policy, as more\nspecifically provided for in that certain Life Insurance Agreement entered into\nbetween the Insured and the Assignee (\"Agreement\"); and\n\n     WHEREAS, in consideration of the Assignee's agreeing to pay a portion of\nthe premiums pursuant to the Agreement, the Owner agrees to assign to the\nAssignee certain rights in the Policy as set forth in this Assignment.\n\n     NOW, THEREFORE, for value received, the undersigned Owner hereby assigns,\ntransfers and sets over to the Assignee, its successors and assigns, the\nfollowing specific rights in the Policy subject to the following terms and\nconditions:\n\n1. ASSIGNED RIGHTS. The Assignee's interest in the Policy shall be limited to:\n\n\n     a.   The right to recover the lesser of the total premiums it has paid on\n          the Policy less amounts received under the Agreement from the Owner\n          (\"net premium outlay\") or the \"surrender value\" of the Policy (as\n          defined in the Policy for all purposes hereinafter) in the event the\n          Policy is totally surrendered or cancelled by the Owner, or the right\n          to receive the surrender proceeds to the extent of its net premium\n          outlay in the event the Policy is partially surrendered or cancelled\n          by the Owner, as provided in paragraph 5 of the Agreement.\n\n     b.   The right to recover the death benefit proceeds as provided in\n          paragraph 7 of the Agreement.\n\n     c.   The right to recover the lesser of its net premium outlay or the\n          surrender value of the Policy or to receive ownership of the Policy,\n          in the event of termination of the Agreement, as provided in\n          paragraphs 6(a), 6(b) and 6(c) of the Agreement.\n\n     d.   The right to recover its net premium outlay to the extent a Policy\n          loan made by the Owner in any year exceeds the lesser of the Owner's\n          portion of the premium for that year or the increase for that year in\n          the surrender value of the Policy, as provided in paragraph 8 of the\n          Agreement.\n\n2. INCIDENTS OF OWNERSHIP. The Owner shall retain all incidents of ownership in\nthe Policy, including, but not limited to, the sole and exclusive rights to:\nborrow against the Policy; assign the Owner's interest in the Policy; change the\nbeneficiary of the Policy; exercise settlement options; and, subject to\nparagraphs 5 and 6 of the Agreement, surrender or cancel the Policy (in whole or\nin part)o\n\n3. ENDORSEMENT OF POLICY. If the Assignee shall have possession of the Policy at\nany time while this Assignment is in force, then upon request and without\nunreasonable delay, the Assignee shall forward the Policy to the Insurer for\nendorsement of any designation or change of beneficiary, any election of\noptional mode of settlement, or the exercise of any other right reserved by the\nOwner hereunder.\n\n4. INSURER.\n\n\n     a.   The Insurer is hereby authorized to recognize the Assignee's claims to\n          rights under this Agreement without investigating the reason for any\n          action taken by the Assignee, the amount of its net premium outlay,\n          the existence of any default, the giving of any required notice or the\n          application to be made by the Assignee of any amounts to be paid to\n          the Assignee. The signature of the Assignee shall be sufficient for\n          the exercise of any of its rights under the Assignment for the\n          Assignee's receipt for any sums received by it shall be a full\n          discharge and release of such sums to the Insurer.\n\n     b.   The Insurer shall be fully protected in recognizing a request made by\n          the Owner for surrender or cancellation of the Policy, in whole or in\n          part, or in recognizing a request made by the Owner for any loans\n          against the Policy permitted by the terms of the Policy, with or\n          without the consent of the Assignee. In the event of any such request,\n          the Insurer may pay the proceeds of such surrender, cancellation, or\n          loans to the sole order of the Owner, or as the Owner shall direct,\n          provided that the Insurer has provided the requisite fifteen (15)\n          days' notice to the Assignee required by paragraph 5 of the Agreement.\n\n5. RELEASE. Upon the full payment of the liabilities of the Owner to the\nAssignee pursuant to the Agreement, the Assignee shall execute an appropriate\ninstrument of release of this Collateral Assignment.\n\nIN WITNESS WHEREOF, the undersigned Owner has executed this Assignment effective\nthe day and year first above written.\n\nOwner's Signature:\n\n----------------------------------                          -------------------\n                                                                  Witness\n\n\n<\/pre>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[7615],"corporate_contracts_industries":[9452],"corporate_contracts_types":[9540,9539],"class_list":["post-39886","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-general-electric-co","corporate_contracts_industries-manufacturing__conglomerates","corporate_contracts_types-compensation__benefits","corporate_contracts_types-compensation"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/39886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=39886"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=39886"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=39886"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=39886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}