At the employer’s request, sample agreements have been prepared and will be made available as a guide to assist attorneys. The client’s attorney is ultimately responsible for the creation of any and all agreements.
Agreements for review by client’s counsel include: (1) Sample Board Resolution authorizing implementation of a Bonus plan; and, (2) a Sample Bonus Agreement outlining the terms under which an employer will provide an employee with a compensation bonus to be used to purchase an Indexed Universal Life Insurance policy.
A third document, titled Supplement to NG Employee Benefits Savings and Insurance is provided for when an employer has the additional objective of recovering some or all of the costs of the Agreement if the employee fails to satisfy an agreed service requirement. The language provided therein is for those situations in which the employer wishes to require repayment of such amounts.
A separate Request and Agreement to Restrict Policy Owner’s Rights has also been prepared if the employer wishes to restrict, for a specific period (i.e. 5 – 10 years), the employee’s access to the policy’s cash value without the employer’s consent. The Request and Agreement to Restrict Policy Owner’s Rights does not provide the employer a security interest in the policy.