Common use of Purchase of Insurance Clause in Contracts

Purchase of Insurance. In order to assure the availability of funds for the purchase price of the shares to be purchased under this Agreement on the death of any Shareholder, the Corporation shall have the option to apply for, purchase and maintain in full force and effect a policy or policies of life insurance on the life of any Shareholder subject to this Agreement. Each such policy shall be listed and described in Exhibit A of this Agreement. The Corporation shall reserve the right to apply for and take out additional insurance policies from time to time on the life of each, any or all of the Shareholders whenever, in the opinion of the Board of Directors of the Corporation, additional insurance may be required for the benefit of the Corporation or to enable it to carry out its obligations hereunder. Each policy shall belong solely to the Corporation and, subject to the provisions of this Agreement, the Corporation reserves all the powers and rights of ownership of it. The Corporation shall be named as the primary beneficiary of the respective policies and shall pay all premiums on them as they become due. No Shareholder shall exercise any of the powers of ownership of any of the policies by changing the name of the beneficiary, canceling the policy, electing optional methods of payment, converting the policy, borrowing against it, or in any other way changing its nature, value, or the rights of the policy. Any dividends paid on account of such policy shall at the option of the Corporation be applied to the payment of premiums. In the event of death of an insured Shareholder hereunder, the Corporation shall file the necessary proof of death and collect the proceeds of any policies of insurance outstanding on the life of the deceased Shareholder as covered by this Agreement. In such event, the consideration <PAGE> 8 for the shares shall be delivered as soon as practical to the person entitled to it, who shall cause the certificate representing the purchased shares to be properly endorsed and delivered. In the event that the purchase price is greater than the amount of insurance proceeds, if any, the Corporation shall pay the purchase price in cash up to the full amount of the insurance proceeds, and shall pay the balance of the purchase price as set forth hereinabove. In the event the insurance proceeds are greater than the purchase price herein, the excess proceeds shall be and remain the sole property of the Corporation. (b)

Purchase of Insurance. In order to assure the availability of funds for the purchase price of the shares to be purchased under this Agreement on the death of any Shareholder, the Corporation shall have the option to apply for, purchase and maintain in full force and effect a policy or policies of life insurance on the life of any Shareholder subject to this Agreement. Each such policy shall be listed and described in Exhibit A of this Agreement. The Corporation shall reserve the right to apply for and take out additional insurance policies from time to time on the life of each, any or all of the Shareholders whenever, in the opinion of the Board of Directors of the Corporation, additional insurance may be required for the benefit of the Corporation or to enable it to carry out its obligations hereunder. Each policy shall belong solely to the Corporation and, subject to the provisions of this Agreement, the Corporation reserves all the powers and rights of ownership of it. The Corporation shall be named as the primary beneficiary of the respective policies and shall pay all premiums on them as they become due. No Shareholder shall exercise any of the powers of ownership of any of the policies by changing the name of the beneficiary, canceling the policy, electing optional methods of payment, converting the policy, borrowing against it, or in any other way changing its nature, value, or the rights of the policy. Any dividends paid on account of such policy shall at the option of the Corporation be applied to the payment of premiums. In the event of death of an insured Shareholder hereunder, the Corporation shall file the necessary proof of death and collect the proceeds of any policies of insurance outstanding on the life of the deceased Shareholder as covered by this Agreement. In such event, the consideration <PAGE> 8 for the shares shall be delivered as soon as practical to the person entitled to it, who shall cause the certificate representing the purchased shares to be properly endorsed and delivered. In the event that the purchase price is greater than the amount of insurance proceeds, if any, the Corporation shall pay the purchase price in cash up to the full amount of the insurance proceeds, and shall pay the balance of the purchase price as set forth hereinabove. In the event the insurance proceeds are greater than the purchase price herein, the excess proceeds shall be and remain the sole property of the Corporation. (b).

Purchase of Insurance. In order to assure the availability of funds for If permitted under Item U(4), the purchase price of the shares to be purchased under this Agreement on the death of any Shareholder, the Corporation shall have the option to apply for, purchase and maintain in full force and effect a policy or policies of life insurance is available under this Plan for the purpose of providing incidental death benefits. If life insurance is available, an Active Member may elect to have any part of his Account which does not result from accumulated deductible employee contributions, as defined in Code Section 72(o)(5)(B), applied to purchase life insurance coverage on the life of any Shareholder subject to this Agreement. Each such policy shall be listed and described in Exhibit A of this Agreementhis life. The Corporation Trustee shall reserve the right to apply for and take out additional insurance policies from time to time on will be the life owner of each, any or all Insurance Policy purchased under the terms of the Shareholders whenever, in the opinion of the Board of Directors of the Corporation, additional insurance may this Plan. The purchase shall be required for the benefit of the Corporation or to enable it to carry out its obligations hereunder. Each policy shall belong solely to the Corporation and, subject to the provisions of this Agreementsection, the Corporation reserves all distribution of benefits provisions of Article VI or VIA, whichever applies, and the powers beneficiary provisions of Section 10.07. If Item AA(1 )(a) is selected and rights of ownership of it. The Corporation the Member has a spouse, such spouse shall be his Beneficiary under the Insurance Policy, unless (i) a qualified election has been made according to the provisions of Section 6A.03, or (ii) the Trustee has been named as Beneficiary. If Item AA(1 )(a) is not selected and the primary beneficiary Member has a spouse to whom he has been continuously married for at least one year, such spouse shall be his Beneficiary under the Insurance Policy, unless (i) a qualified election has been made according to the provisions of Section 6.03, or (ii) the Trustee has been named as Beneficiary. If the Trustee is named as Beneficiary, upon the death of the respective policies and Member, the Trustee shall be required to pay over all premiums on them as they become due. No Shareholder shall exercise any proceeds of the powers Insurance Policy to the Member’s Beneficiary or spouse, as the case may be, according to the distribution of ownership benefits provisions of Article VI or VIA, whichever applies. Under no circumstances shall the Trust Fund retain any part of the policies by changing the name of the beneficiary, canceling the policy, electing optional methods of payment, converting the policy, borrowing against it, or in any other way changing its nature, value, or the rights of the policy. Any dividends paid on account of such policy shall at the option of the Corporation be applied to the payment of premiumsproceeds. In the event of death any conflict between the terms of an insured Shareholder this Plan and the terms of any Insurance Policy purchased hereunder, the Corporation Plan provisions shall file the necessary proof of death and collect the proceeds of any policies control. The purchase of insurance outstanding shall be subject to the limitations that may be imposed by the Insurer under the applicable Insurance Policy. The Insurance Policy may provide for waiver of premium for disability. The total of all insurance premiums for insurance coverage on the life of the deceased Shareholder as covered a Member provided by this Agreement. In such event, the consideration <PAGE> 8 for the shares our Contributions shall be delivered as soon as practical limited to a percentage of all our Contributions made for that Member. All such ordinary life insurance premiums shall be limited to a percentage which is less than 50 percent. All such term life and universal life insurance premiums shall be limited to a percentage which is not more than 25 percent. If both ordinary life insurance and term life or universal life insurance are purchased, one-half of all such ordinary life insurance premiums and all such other life insurance premiums shall be limited to a percentage which is not more than 25 percent. Ordinary life insurance policies are policies with both nondecreasing death benefits and nonincreasing premiums. Any dividends declared upon an amount of insurance in force on the life of a Member may, within the terms of the Insurance Policy, be applied to reduce the earliest premium due, purchase paid-up insurance coverage, accumulate under the policy to provide additional death benefit, or be credited to the person entitled to it, who shall cause Member’s Account which is included in the certificate representing the purchased shares to be properly endorsed and deliveredPlan Fund. In the event that absence of any direction, such dividends shall be applied to reduce the purchase price is greater than earliest premium due for such amount of insurance. A Member may elect to have amounts deducted from his Account to pay insurance premiums. The total amount deducted cannot exceed the amount of insurance proceedsContributions credited to his Account which were not used to provide insurance, if any, but could have been. If a decrease in the Corporation shall pay the purchase price in cash up to the full amount of the life insurance proceedsis necessary, and shall pay the balance any cash value of the purchase price as set forth hereinabove. In the event the terminated insurance proceeds are greater than the purchase price herein, the excess proceeds shall be and remain retained in the sole property of the Corporation. (b)Member’s Account.

Purchase of Insurance. In order to assure the availability of funds for If permitted under Item U(4), the purchase price of the shares to be purchased under this Agreement on the death of any Shareholder, the Corporation shall have the option to apply for, purchase and maintain in full force and effect a policy or policies of life insurance is available under this Plan for the purpose of providing incidental death benefits. If life insurance is available, an Active Member may elect to have any part of his Account which does not result from accumulated deductible employee contributions, as defined in Code Section 72(o)(5)(B), applied to purchase life insurance coverage on the life of any Shareholder subject to this Agreement. Each such policy shall be listed and described in Exhibit A of this Agreementhis life. The Corporation Trustee shall reserve the right to apply for and take out additional insurance policies from time to time on will be the life owner of each, any or all Insurance Policy purchased under the terms of the Shareholders whenever, in the opinion of the Board of Directors of the Corporation, additional insurance may this Plan. The purchase shall be required for the benefit of the Corporation or to enable it to carry out its obligations hereunder. Each policy shall belong solely to the Corporation and, subject to the provisions of this Agreementsection, the Corporation reserves all distribution of benefits provisions of Article VI or VIA, whichever applies, and the powers beneficiary provisions of Section 10.07. If Item AA(1)(a) is selected and rights of ownership of it. The Corporation the Member has a spouse, such spouse shall be his Beneficiary under the Insurance Policy, unless (i) a qualified election has been made according to the provisions of Section 6A.03, or (ii) the Trustee has been named as Beneficiary. If Item AA(1)(a) is not selected and the primary beneficiary Member has a spouse to whom he has been continuously married for at least one year, such spouse shall be his Beneficiary under the Insurance Policy, unless (i) a qualified election has been made according to the provisions of Section 6.03, or (ii) the Trustee has been named as Beneficiary. If the Trustee is named as Beneficiary, upon the death of the respective policies and Member, the Trustee shall be required to pay over all premiums on them as they become due. No Shareholder shall exercise any proceeds of the powers Insurance Policy to the Member's Beneficiary or spouse, as the case may be, according to the distribution of ownership benefits provisions of Article VI or VIA, whichever applies. Under no circumstances shall the Trust Fund retain any part of the policies by changing the name of the beneficiary, canceling the policy, electing optional methods of payment, converting the policy, borrowing against it, or in any other way changing its nature, value, or the rights of the policy. Any dividends paid on account of such policy shall at the option of the Corporation be applied to the payment of premiumsproceeds. In the event of death any conflict between the terms of an insured Shareholder this Plan and the terms of any Insurance Policy purchased hereunder, the Corporation Plan provisions shall file the necessary proof of death and collect the proceeds of any policies control. The purchase of insurance outstanding shall be subject to the limitations that may be imposed by the Insurer under the applicable Insurance Policy. The Insurance Policy may provide for waiver of premium for disability. The total of all insurance premiums for insurance coverage on the life of the deceased Shareholder as covered a Member provided by this Agreement. In such event, the consideration <PAGE> 8 for the shares our Contributions shall be delivered as soon as practical limited to a percentage of all our Contributions made for that Member. All such ordinary life insurance premiums shall be limited to a percentage which is less than 50 percent. All such term life and universal life insurance premiums shall be limited to a percentage which is not more than 25 percent. If both ordinary life insurance and term life or universal life insurance are purchased, one-half of all such ordinary life insurance premiums and all such other life insurance premiums shall be limited to a percentage which is not more than 25 percent. Ordinary life insurance policies are policies with both nondecreasing death benefits and nonincreasing premiums. Any dividends declared upon an amount of insurance in force on the life of a Member may, within the terms of the Insurance Policy, be applied to reduce the earliest premium due, purchase paid-up insurance coverage, accumulate under the policy to provide additional death benefit, or be credited to the person entitled to it, who shall cause Member's Account which is included in the certificate representing the purchased shares to be properly endorsed and deliveredPlan Fund. In the event that absence of any direction, such dividends shall be applied to reduce the purchase price is greater than earliest premium due for such amount of insurance. A Member may elect to have amounts deducted from his Account to pay insurance premiums. The total amount deducted cannot exceed the amount of insurance proceedsContributions credited to his Account which were not used to provide insurance, if any, but could have been. If a decrease in the Corporation shall pay the purchase price in cash up to the full amount of the life insurance proceedsis necessary, and shall pay the balance any cash value of the purchase price as set forth hereinabove. In the event the terminated insurance proceeds are greater than the purchase price herein, the excess proceeds shall be and remain retained in the sole property of the Corporation. (b)Member's Account.