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SPLIT OWNER SPLIT DOLLAR LIFE INSURANCE AGREEMENT AND ASSIGNMENT

Life Insurance Split Dollar Agreement

SPLIT OWNER SPLIT DOLLAR LIFE INSURANCE AGREEMENT AND ASSIGNMENT | Document Parties: Espey, Huston  Associates, Inc | Lincoln National Life Insurance Company | SPLIT OWNER SPLIT DOLLAR LIFE INSURANCE You are currently viewing:
This Life Insurance Split Dollar Agreement involves

Espey, Huston Associates, Inc | Lincoln National Life Insurance Company | SPLIT OWNER SPLIT DOLLAR LIFE INSURANCE

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Title: SPLIT OWNER SPLIT DOLLAR LIFE INSURANCE AGREEMENT AND ASSIGNMENT
Governing Law: Texas     Date: 2/17/2009

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Exhibit 10.18

SPLIT OWNER SPLIT DOLLAR LIFE INSURANCE

AGREEMENT AND ASSIGNMENT

This Agreement and Assignment is entered into as of the 15th day of December, 1994, by and between Espey, Huston & Associates, Inc., a Texas corporation (hereinafter referred to as “Espey Huston” or “Assignee-Owner”) and Wayne J. Overman, an employee of Espey Huston and the owner of Lincoln National Life Insurance Company Policy Number 23-7925341 and any supplementary contracts issued in connection therewith (hereinafter referred to as “Employee-Owner”) . In this Agreement and Assignment, Lincoln National Life Insurance Company Policy Number 23-7925341 and any supplementary contracts issued in connection therewith will be referred to as the “Policy.”

WHEREAS, Employee-Owner is a valued employee of Assignee-Owner;

WHEREAS, Assignee-Owner desires to assist Employee-Owner with his personal life insurance program by paying all or a portion of the monthly premiums due on the Policy;

WHEREAS, upon Assignee-Owner making such premium payments on the Policy, Assignee-Owner will have certain specific and limited Policy ownership rights and interests in the Policy to the extent of such payments, as provided herein; and

WHEREAS, this Agreement and Assignment is intended to qualify as a life insurance employee benefit as described in Revenue Ruling 64-328;


NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned Employee-Owner and Assignee-Owner hereby agree as follows and the undersigned Employee-Owner, in consideration of the Policy premiums paid by Assignee-Owner under paragraphs 1 and 3 as of the effective date of this Agreement and Assignment and upon each subsequent monthly Policy premium due date, hereby assigns, transfers, and sets over certain specific and limited Policy ownership rights and interests in the Policy, as provided herein (such rights and interests being the “Limited Policy Ownership Rights” as set forth in paragraph 4 and the “Policy Interest” as set forth in paragraph 5) to Assignee-Owner, its successors and assigns, subject to the following terms and conditions.

1. Payment of Policy Premiums by Assignee-Owner . Assignee-Owner agrees to pay all or a portion of the monthly premium due under the Policy for its own benefit prior to the date on which Assignee-Owner releases and reassigns its Limited Policy Ownership Rights and Policy Interest to Employee-Owner under the provisions of paragraph 9 (if such a release and reassignment occurs) and for the benefit of Employee-Owner after any such release and reassignment occurs. The portion of the monthly Policy premium to be paid by Assignee-Owner will be determined each month in the sole and absolute discretion of Assignee-Owner. Assignee-Owner will notify Employee-Owner of the dollar amount of the monthly Policy premium that it will pay at least 20 days prior to the date on which such premium is due.

 

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2. Payments by Employee-Owner . Employee-Owner may, at his option, pay any portion of the monthly Policy premium that is not paid by Assignee-Owner and may, at his option, pay additional amounts that are permitted to be paid under the terms of the Policy. Employee-Owner will notify Assignee-Owner of the dollar amount that he will pay under the terms of the Policy at least 10 days prior to the date on which the monthly Policy premium is due.

3. Remission of Payments to Lincoln National Life Insurance Company (hereinafter referred to as the “Insurance Company”) . Not later than five business days prior to the monthly premium due date for the Policy, Assignee-Owner will remit to the Insurance Company the portion of the premium that it is to pay under paragraph 1 and any amount that Employee-Owner has elected to pay under paragraph 2 and that Assignee-Owner has actually received from Employee-Owner not later than the fifth business day preceding the monthly premium due date for the Policy.

4. Assignee-Owner’s Limited Policy Ownership Rights . Except in those circumstances in which Assignee-Owner agrees or elects to release and reassign its Limited Policy Ownership Rights and Policy Interest to Employee-Owner or his personal beneficiary named under the Policy under the provisions of paragraph 9, Assignee-Owner, alone, will, to the extent of its Policy Interest (as determined in paragraph 5), receive from Employee-Owner an amount equal to such Policy Interest upon the surrender or cancellation of the

 

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Policy by Employee-Owner, upon the termination of Employee-Owner’s employment with Assignee-Owner, or upon the termination of this Agreement and Assignment by mutual written consent of Employee-Owner and Assignee-Owner in accordance with paragraph 8. Assignee-Owner’ s rights that are set forth in the preceding sentence of this paragraph 4 are referred to in this Agreement and Assignment as “Limited Policy Ownership Rights.” Assignee-Owner will not have the right to borrow against the Policy’s loan value, or to withdraw (under the “Withdrawal” or “Partial Surrender” provisions of the Policy) from the Policy’s cash values. Unless and until Assignee-Owner releases and reassigns its Limited Policy Ownership Rights and Policy Interest to Employee-Owner under either of the first two sentences of paragraph 9, Employee-Owner will not have the right to borrow against the Policy’s loan value, or to withdraw (under the “Withdrawal” or “Partial Surrender” provisions of the Policy) from the Policy’s cash values.

5. Assignee-Owner’s Policy Interest . In the event Employee-Owner surrenders or cancels the Policy, Employee-Owner’s employment with Assignee-Owner terminates, or Employee-Owner and Assignee-Owner terminate this Agreement and Assignment by mutual written consent in accordance with paragraph 8, Assignee-Owner’s Policy Interest will be an amount equal to the lesser of “Assignee-Owner’s Cumulative Premium Payments” or “Assignee-Owner’s Share of the Policy’s Cash Surrender Value.” For this purpose, “Assignee-Owner’s Cumulative Premium Payments” shall refer to the sum of all premium payments on the Policy made by

 

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Assignee-Owner under paragraphs 1 and 3. For this purpose and for purposes of paragraph 9, “Assignee-Owner’s Share of the Policy’s Cash Surrender Value” shall be determined by multiplying the Policy’s total cash surrender value by a fraction, the numerator of which is the Assignee-Owner’ s Cumulative Premium Payments and the denominator of which is the sum of the Assignee-Owner’s Cumulative Premium Payments plus Employee-Owner’s total premium payments, if any, and other contributions, if any, with respect to the Policy under paragraphs 2 and 3. This Agreement will cover and this Assignment will include any interest that Assignee-Owner may have in the Policy prior to the effective date of this Agreement and Assignment or prior to the date that this Agreement and Assignment is executed. Assignee-Owner’s Policy Interest that is set forth in this paragraph 5 is referred to in this Agreement and Assignment as Assignee-Owner’s “Policy Interest,” and the specific circumstances in which Assignee-Owner will be entitled to the benefit of its Policy Interest are set forth in paragraph 4.

6. Employee-Owner’s Retained Incidents of Ownership . Except as to the Limited Policy Ownership Rights and the Policy Interest specifically granted to Assignee-Owner herein, and except as otherwise provided herein, Employee-Owner retains all incidents of ownership under the Policy (including the right to designate beneficiaries).

 

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7. Employee-Owner’s Right to Transfer . Employee-Owner will have the right to transfer all or any part of his interest in the Policy and this Agreement and Assignment to any person, entity or trust by execution of a written Assignment delivered to Assignee-Owner and to the Insurance Company. Assignee-Owner’s rights and interests in the Policy shall not be affected by any such transfer.

8. Termination of Agreement and Assignment . This Agreement (other than the portion of the Agreement that relates to Employee-Owner’s assignment of the Limited Policy Ownership Rights and the Policy Interest to Assignee-Owner) will terminate on the first to occur of the following: (a) the surrender or cancellation of the Policy by Employee-Owner, who will have the sole and exclusive right of surrender or cancellation without Assignee-Owner’s consent, (b) the termination of Employee-Owner’s employment with Assi


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