EXHIBIT 10.3
ASSET SETTLEMENT GROUP, INC [LOGO]
FORM OF
LIFE SETTLEMENT CONTRACT
BETWEEN
ASSET SETTLEMENT GROUP, INC
AND
This AGREEMENT is made and entered into this _____ day of ____________ in the
year 20___ by and between Asset Settlement Group, Inc. ("Settlement Group"),
Capital Benefits, LLC, ("Xxx Xxxx") and _____________________.
WITNESSETH
WHEREAS, Settlement Group, desires to purchase from a certain life insurance
policy on the life of issued by (Insurance
Co.) with the policy number (the "Policy") for the sum of
(the "Purchase Price"); and
WHEREAS, the parties desire for Settlement Group to hold the funds representing
the Purchase Price in trust, on the terms and conditions hereinafter set forth;
NOW, THEREFORE in consideration of the mutual covenants and agreements
hereinafter contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties do hereby
agree as follows:
1) Simultaneously with the execution of this agreement, Seller shall deliver
to Settlement Group, its nominees and/or assigns an irrevocable assignment
of the policy in favor of The Fund. Trust Agent shall hold the policy and
funds representing the Purchase Price in accordance with the terms of this
Agreement.
2) Settlement Group and the Trust Agent have entered into a trust agreement
dated July 1, 2005. The trust agreement allows for the maintenance and
payment of the funds due to you, the Viator. Such agreement is in
accordance with the terms of payment set forth herein. By executing this
agreement you hereby join in and agree to be bound by the terms of the
Trust Agreement.
3) Upon receipt of the assignment of the policy in favor of The Fund, Asset
Settlement Group shall forward such assignment to the insurance carrier
who issued the policy, and shall request from such insurance carrier an
acceptance of the assignment of the policy. Upon receipt of such
acceptance of assignment, Settlement Group shall authorize the Trust Agent
to deliver the funds, representing the Purchase Price, to Seller within
three (3) business days. Failure to transfer the funds within three (3)
business days renders the life settlement contract and the transfer,
assignment, bequest, or sale voidable.
4) The Seller has the unconditional and absolute right to cancel and rescind
the life settlement contract at any time prior to the full payment of the
proceeds. Additionally, the Seller may cancel and rescind this contract
not later than thirty (30) days from contract execution of fifteen (15)
days after full payment of proceeds to the Seller, whichever is less,
provided the full amount of the proceeds and any premiums paid by Asset
Settlement Group on said policy are returned by the Seller.
5) In the event The Fund does not receive an acceptance of Assignment from
the insurance carrier within thirty (30) days after the date of this
Agreement, Settlement Group shall give written notice of such fact to
Seller. Thereafter, Settlement Group and Seller shall contact the
insurance carrier and attempt to make arrangements to obtain an acceptance
of the assignment of the policy from the insurance carrier. In the event
such acceptance cannot be obtained within a reasonable time, Settlement
Group and Seller shall redeliver the Assignment of the Policy in favor of
the Seller.
6) I, the undersigned, understand and acknowledge that Settlement Group has
the unconditional and absolute right to cancel and rescind the Life
Settlement Contract at any time prior to the full payment of the proceeds.
Additionally, to the Seller if for any reason Settlement Group has reason
to believe that the policy was purchased, issued or sold under fraudulent
circumstances or if the insurance company advises Settlement Group that
the policy has been rescinded or cancelled the Life Settlement Contract
becomes null and void. Upon notification that the policy is being
rescinded or cancelled by the insurance company, or the Life Settlement
Contract becomes null and void the Seller must provide the full amount of
any proceeds and premiums paid by Settlement Group to Settlement Group
within thirty (30) days.
7) By entering into a life settlement contract all of the right, title,
interest and benefit in and to the seller's life insurance policy,
including all supplementary contracts and riders attached thereto, will
become the property of the Fund. The premium payments on the seller's life
insurance policy will no longer be the responsibility of the seller. If
this is not acceptable to the seller, it is the seller's responsibility to
provide a statement, in writing, with the return of this document package
stating that the rights to these riders shall be reserved by the seller.
Arrangements will be made with the insurance company to preserve the
seller's interest in said riders. If the arrangements are not satisfactory
to both the seller and the life settlement company, the ownership of the
policy shall not be transferred to the Fund and the life settlement
contract will be rendered null and void.
8) The Seller should be aware that all inquiries about the Seller's health
will be made by 21st Holdings, LLC. 21st is in the business of tracking
Seller status. Tracking services will include:
i) Quarterly calls to the Seller's physician to obtain statements about
the Seller's health.
ii) Situations where Seller does not frequently visit the physician
sometimes occur, in these instances 21st will contact the Seller's
personal references
9) In performing its duties hereunder, Trust Agent shall not incur any
liability to Asset Settlement Group or to Seller for any damages, losses
or expenses which either party may sustain or incur, unless the same is a
direct result of the negligence or intentional misconduct of Trust Agent.
Trust Agent shall be protected in any action taken or omitted in good
faith upon the advice of its legal counsel given with respect to the
duties and responsibilities of Trust Agent hereunder. Trust Agent shall be
entitled to rely on any document or instrument, including any written
notice or instruction provided for in this Agreement, which Trust Agent in
good faith believes to be genuine or to have been signed or presented by a
proper person or persons in accordance with this Agreement. Asset
Settlement Group and Seller hereby agree to indemnify and hold harmless
Trust Agent from and against all losses, claims, damages, liabilities and
expenses which it may sustain or incur hereunder, including, without
limitation reasonable attorneys fees, which may be imposed upon Trust
Agent or incurred by Trust Agent in connection with the performance of its
duties hereunder.
10) Any notice required or permitted to be given hereunder shall be in writing
and shall be deemed to have been duly given if sent by certified mail,
return receipt requested, postage prepaid, addressed as follows:
If to Seller:
If to Asset Settlement Group: Asset Settlement Group.
0000-X X Xxxxxxx Xx
Xx. Xxxxx, XX 00000
If to Trust Agent: Law Office of Xxxxxx Xxxxxx, PA
13400 Xxxxxx Xxxx Xx, Xxxxx
Xxxxx 0000
Xxxxxxxxxxxx, Xx 00000
000-000-0000
000-000-0000 Facsimile
Any notice mailed as provided herein shall be deemed received by the party to
whom it is
addressed on the date of receipt, or on the first date of attempted delivery in
the case of any notice which is undeliverable by the U.S. Post Office. The
foregoing shall not preclude any other method of giving notice.
11. This Agreement represents the entire agreement between the parties with
respect to the subject matter hereof, and may not be modified or amended
except by a written instrument signed by all of the parties hereunto. This
Agreement shall be binding upon and shall inure to the benefit of the
parties hereunto and their respective heirs, successors and assigns. This
Agreement has been made and entered into in the State of Georgia and shall
be construed and enforced in accordance with Georgia Law. Venue for any
litigation from this agreement or its enforcement shall be in Camden
county Georgia. This Agreement may be executed in any number of
counterparts, each of which shall constitute an original.
In witness whereof, the parties have executed and delivered this Agreement on
the day and in the year above written:
SELLER: By: ___________________________
SELLER: By: ___________________________
ASSET SETTLEMENT GROUP, INC. By: ___________________________
Any person who knowingly presents false information in an application for
insurance, a life settlement contract, or a life settlement purchase agreement
is guilty of a crime and may be subject to fines and confinement in prison.
