EXHIBIT 10.10
SURETY CAPITAL CORPORATION
0000 Xxxxxxxx Xxxx Xxxx, Xxxxx 000
Xxxxx, Xxxxx 00000
August 29, 1997
Mr. _________________
Surety Capital Corporation
0000 Xxxxxxxx Xxxx Xxxx, Xxxxx 000
Xxxxx, Xxxxx 00000
Re: Level Term Life Insurance
Dear ________:
This letter amends and restates, in its entirety, that certain letter
agreement dated _________, 199___ from Surety Capital Corporation ("Surety")
addressed to you regarding level term life insurance.
We have previously discussed Xxxxxx's providing life insurance coverage for
you during the period you are an employee of Surety, and this letter is intended
to outline the revised agreement we have reached for such coverage.
1. INSURANCE COVERAGE AND PREMIUM PAYMENTS.
(a) You have applied for and received a term life insurance policy
insuring your life in the face amount of $250,000. This policy was issued by
First Colony Life Insurance Company (Policy #_______), and Surety will be
provided with a copy of the insurance application and policy. You are the owner
of the policy and Surety has no ownership interest in the policy or the proceeds
payable under the policy, but Surety will pay the policy premiums until the
earlier of (1) your reaching age sixty-five (65), or (2) a termination of your
employment by Surety (subject to the other provisions in this letter).
(b) During the term of your employment by Xxxxxx, you will provide
Surety with a copy of the periodic premium statement, and Surety will either pay
same prior to its due date or, if you have previously paid the statement, Surety
will reimburse the premium amount to you within thirty (30) days after Xxxxxx's
receipt of the statement. The premium amount that Surety is obligated to
reimburse shall be limited to the cost of level term life insurance from the
issuing insurance company for a male who is your age and who qualifies for the
company's standard rating for a non-smoker without any restrictive health
conditions.
2. PREMIUM PAYMENTS - EMPLOYMENT TERMINATION PRIOR TO AGE SIXTY-FIVE.
The following provisions shall apply with regard to Surety's obligation to pay
the premium payments in the event of a termination of your employment prior to
your reaching age sixty-five (65).
(a) If your employment by Surety is terminated prior to your reaching
age sixty-five (65):
(1) for any reason other than for Cause (as herein defined),
(2) by you with Good Reason (as herein defined), or
Mr.__________________
August 29, 1997
Page 2
(3) as a result of your Disability,
Surety shall be obligated to continue the premium payments until
the earlier of your reaching age sixty-five (65) or your death.
(b) If your employment by Surety is terminated for Cause prior to your
reaching age sixty-five (65), Surety shall have no further obligations to pay
the premiums on the policy, and Surety's obligations under this Agreement shall
terminate on the date of your employment termination.
(c) For purposes of this letter, the following terms shall have the
following meanings:
(1) "Cause" shall mean any act that is materially adverse to the
best interests of Surety and constitutes, on your part, common law fraud, a
felony or other gross malfeasance of duty.
(2) "Disability" shall mean your inability to manage Surety's
property, business or financial affairs by reason of illness, infirmity,
insanity, mental incompetency or otherwise, determined to be (or reasonably
expected to be, based upon then available medical information) of not less than
twelve (12) calendar months' duration. The initial determination (or reasonable
expectancy) shall be determined by the opinion of your regularly attending
Physician (defined as a person licensed to practice medicine in Texas). If
Surety's Board of Directors ("Surety's Board") disagree with your Physician's
opinion, or if you have not engaged a Physician, Surety's Board may engage, at
its expense, a Physician to examine you, and you consent to such examination and
waive, if applicable, any privilege between the Physician and yourself that may
arise as a result of said examination. If you have not engaged a Physician, the
opinion of the Physician engaged by Xxxxxx's Board shall control. If you have
engaged a Physician, and if, after conferring, your Physician and Xxxxxx's
Physician cannot agree on a final opinion, they shall within thirty (30) days
thereafter choose a third consulting Physician whose opinion shall control. The
expense of the third consulting Physician shall be borne equally by you and
Surety.
(3) "Good Reason" shall mean:
(a) a material reduction of your duties, responsibilities
and status with Surety;
(b) a reduction of your base salary; or
(c) your relocation to offices of Surety more than thirty
(30) miles from the location of Surety's principal offices.
3. OTHER DOCUMENTS. Both you and Surety agree to enter into such other
documents or agreements that may be necessary to fulfill the provisions of this
letter.
Mr.__________________
August 29, 1997
Page 3
If this letter properly outlines your understanding of Surety's
obligations, please sign one copy of this letter and return it to the
undersigned.
Sincerely,
X. Xxxx Xxxx, Chairman
Agreed and Accepted:
_________________________________
_________________
Date: ________________, 1997
