Common use of Transfer of Policies Clause in Contracts

Transfer of Policies. (a) Upon the Participant's retirement, the Trustee shall, upon instructions from the Committee, either transfer and deliver to the Participant any policy held on his behalf (with such endorsements as the Committee may direct), convert such policy to an annuity, or surrender such policy, in which case the cash proceeds thereof shall be included as part of the account balance of such Participant and distributed accordingly. (b) The Committee shall offer to a vested Participant any policy held in his behalf at a price equal to the total cash surrender value of such policy. If the Participant elects to purchase such policy, the Trustee shall, upon instructions from the Committee, transfer ownership of the policy to such Participant, endorsed so as to vest in the transferee all right, title and interest thereto, free and clear of the Trust. If the Participant declines to purchase such policy, the Trustee shall, upon instructions from the Committee, liquidate the policy for its cash surrender value; transfer the policy to the Participant as a distribution of benefits; or if the Participant has terminated employment with the Employer other than by reason of retirement, death or disability, place the policy on a paid-up basis. The Committee may direct the Trustee to designate itself, if not so designated, as Beneficiary under such policy for the period prior to the date on which it is liquidated. (c) Subject to the Qualified Joint and Survivor Annuity Rules of Section 8.2, the contracts on a Participant's life will be converted to cash or an annuity or distributed to the Participant upon commencement of benefits.