Conversion to Split Dollar Clause Samples
The "Conversion to Split Dollar" clause establishes the terms under which an existing life insurance arrangement can be converted into a split dollar agreement between the parties. Typically, this clause outlines the process for converting ownership and premium payment responsibilities, specifying how the policy's benefits and obligations will be divided, such as between an employer and employee. Its core practical function is to provide a clear mechanism for restructuring the insurance arrangement, often to achieve tax advantages or to better align the interests of the parties involved.
Conversion to Split Dollar. If the Executive voluntarily terminates employment after attaining the age of sixty-five (65) and completes ten (10) years of service, or terminates employment subsequent to a change of control (as defined herein), unless the Executive elects otherwise by written notice to the Company, the Split Dollar Insurance Agreement attached as the Addendum to this Agreement shall automatically take effect as of the Executive's termination of employment. The Company shall take all actions necessary to implement the Split Dollar Insurance Agreement.