Informal Funding Clause Samples
Informal Funding. The Company in its discretion may apply for and procure as owner and for its own benefit insurance on the life of the Employee or other assets as the Company may choose. The Employee shall have no interest whatsoever in any such policy or assets, but at the request of the Company shall submit to medical examinations and supply such information and execute such documents as may be required by the insurance company or companies to whom the Company has applied for insurance. The right of the Employee, his Beneficiary or his estate to any benefits under the Agreement shall be solely those of an unsecured creditor of the Company. Any assets acquired by or held by the Company shall not be deemed to be held as security for the performance of the obligations of the Company but shall be, and remain a general, unpledged, and unrestricted asset of the Company.
Informal Funding. I. The benefits under this Agreement will be paid by the Company from its general assets. To cover part or all of its potential liabilities under this Agreement, the Company may, but need not, purchase life insurance policies on the life of the Employee, but neither the Employee nor any of his beneficiaries will have any preferred claim against, or beneficial ownership in, such policies or the proceeds therefrom.
II. When and if the Company applies for life insurance on the life of the Employee, it will so notify the Employee and request him to take whatever actions may be necessary to enable the Company to fulfill the requirements of the life insurance company fore issuance of the insurance policy. A condition of eligibility for benefits under this Agreement is the Employee’s cooperation in connection with the securing of any insurance policies, including the completion and signing of such forms as may be reasonably required, and to undergo any medical examinations or tests which may be necessary.
III. No benefit shall be payable under this Agreement to the beneficiaries or estate of the Employee if he dies by suicide within two years after the effective date of this Agreement. Nor shall any benefit be payable under this Agreement to the Employee or his beneficiaries or his estate if the Employee makes any untrue statements on insurance forms, which statements cause the Company to fail to receive insurance proceeds under any policies upon the Employee’s death, or which cause said proceeds to be reduced in any manner.
Informal Funding. If the Company, in its sole and absolute discretion, chooses to transfer monies to a separate account, create a separate fund, purchase life insurance or annuity contracts, or make other arrangements to fund its liabilities with respect to the benefits provided to the Participant or any other obligations it may have under this Agreement, then any such separate account, separate fund, life insurance or annuity contracts, or other arrangements shall remain solely the asset of the Company, subject to the claims of its unsecured general creditors; and the Participant shall have no interest, rights or priority therein, except as an unsecured general creditor of the Company.