Common use of Endowment Life Insurance Clause in Contracts

Endowment Life Insurance. 4.1. The Company undertakes to take out endowment life insurance in favor of the SB Member under the conditions approved by the General Meeting, with a policy period of 4 years. The endowment life insurance amounts to CZK 2,550,000 (that is: two million five hundred and fifty thousand Czech korunas) for a member of the Supervisory Board, CZK 3,050,000 (that is: three million fifty thousand Czech korunas) for the vice-chairman of the Supervisory Board, and CZK 4,050,000 (that is: four million fifty thousand Czech korunas) for the chairman of the Supervisory Board. Upon termination of service or the Company’s withdrawal from the endowment life insurance contract as the policyholder, the policy shall be transferred to the member of the Supervisory Board free of charge. 4.2. The SB Member acknowledges that endowment life insurance premium paid by the Company is deemed the Supervisory Board member’s employment income and is subject to income tax and mandatory insurance withholdings pursuant to applicable law. The SB Member agrees that tax on this income shall be withheld in the month in which the Company pays the premium to the insurance company. If the income tax cannot be withheld, the Supervisory Board member undertakes to reimburse the Company for the withholding tax on the income from the paid endowment insurance. The conditions and date for paying the withholding income tax shall be specified in a separate agreement. The SB Member undertakes to enter into such agreement with the Company no later than within 30 calendar days of the payment of the premium.

Appears in 2 contracts

Samples: Service Contract on the Supervisory Board, Service Contract on the Supervisory Board

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