EXHIBIT 10.7
AMENDMENT TO
SPLIT DOLLAR LIFE INSURANCE AGREEMENT
This Amendment, made and entered into as of this _________ day of
______________________________________, 2002, by and between XXXXXX
MANUFACTURING COMPANY, a Delaware corporation (hereinafter referred to as the
"Corporation") and _______________ (hereinafter referred to as the "Employee").
WITNESSETH:
WHEREAS the Corporation and the Employee entered into that certain
Split Dollar Life Insurance Agreement dated December 20, 1994 (the "Agreement")
and the parties, by mutual agreement, desire to modify and amend the Agreement.
NOW, THEREFORE, in consideration of these premises and of the mutual
promises contained herein, the parties hereto agree as follows:
1. Paragraph 3 of the Agreement shall be amended in its entirety
so as to read as follows:
"3. Policy Dividends. Effective as of October 1, 2002, any
dividend declared on the Policy shall be applied to pay Policy
premiums. In the event that any dividend exceeds the amount
needed to pay Policy premiums, such excess shall be applied to
purchase a paid up addition to the Policy. The parties hereto
agree that the dividend election provisions of the Policy
shall conform to the provisions hereof."
2. Paragraph 4 of the Agreement is hereby amended to add the
following as the last sentence hereof:
"Notwithstanding any provision of the Agreement, effective as
of October 1, 2002, the Corporation shall be relieved of any
further obligation to make payment of Policy premiums, except
as provided in Paragraph 3 of this Agreement. The Corporation
and the Employee acknowledge that the Corporation has paid
sufficient Policy premiums so that, together with the payments
provided for under Paragraph 3, the Policy can be maintained
in full force and effect."
3. Subparagraph a. of Paragraph 6 is hereby amended in its
entirety, effective as of October 1, 2002, to read as follows:
"Except as otherwise provided herein, the Employee may sell,
assign, transfer, borrow against, surrender or cancel the
Policy, change the beneficiary designation thereof, in any
such case, only with the express written consent of the
Corporation provided that the Corporation has met its
obligations under the terms of this Agreement."
4. The following sentence shall be added at the end of paragraph
10 of the Agreement to read as follows:
"Notwithstanding any other provisions of this Agreement, since
the parties have agreed that the Corporation is not required
to make any further Policy premium payments, the Corporation
and the Employee agree that, effective as of October 1, 2002,
the failure of the Company to make any Policy premium
payments, except as provided in Paragraph 3, shall not be an
event of default under the terms of this Agreement and the
collateral assignment of the Policy shall continue in full
force and effect."
IN WITNESS WHEREOF, the parties hereto have executed this Agreement, in
duplicate, as of the day and year first above written.
XXXXXX MANUFACTURING COMPANY
By: ________________________________
______________________________ Print Name: ________________________________
Print Name: _____________ Print Title: ___________________
"Employee" "Corporation"
