WHEREAS, the Donor wishes to make arrangements to establish a permanent endowment fund; and
WHEREAS, the Donor wishes to have the Foundation administer said fund, and the Foundation has agreed to serve in such capacity;
NOW, THEREFORE, in consideration of the mutual covenants and conditions stated in this agreement, the Donor and the Foundation agree as follows:
1. The Foundation shall apply for an insurance policy on the Donor's life described in Schedule A to this Agreement (the "Policy").
2. Upon receipt of each notice from the Policy's carrier that a premium will be due on the Policy, the Foundation shall bill the Donor for the amount of such premium, or such portion thereof as is specified on Schedule B to this Agreement, if any, and the Donor agrees to pay such amount to the Foundation. The Foundation agrees to use such payment from the Donor to pay such premiums.
3. [Initial A or B as follows:]
A. ___________ ____________ The Policy will not be maintained
pursuant
(Donor)
(Foundation)
to the Premium Partnership Program of the Foundation.
B. ___________ ____________ The Policy will be maintained
pursuant to the
(Donor)
(Foundation)
Premium Partnership Program of the Foundation, in the manner
provided on Schedule B to this Agreement.
4. The Foundation shall be the owner and beneficiary of the Policy and shall have reserved to it all rights under the Policy as owner and beneficiary, subject to the terms and conditions of this Agreement. The Foundation shall have no obligation to maintain the Policy except insofar as it receives gifts from the Donor in amounts sufficient to pay the premiums due under the Policy, or such portion thereof as Donor agrees to pay under Schedule B to this Agreement, if any.
5. Except in the case of an emergency, as determined in
the sole discretion of the Foundation, the Foundation agrees
not to surrender the Policy, withdraw Policy dividends,
borrow against the cash value of the Policy, or pledge such
cash value as collateral for any indebtedness of the Foundation
during the Donor's lifetime. Subject to the preceding sentence,
so long as the Foundation receives from the Donor funds
sufficient to pay Policy premiums in a timely manner, the
Foundation agrees to keep the Policy in full force and effect.
6. Upon the death of the Donor, the Foundation shall collect
the proceeds of the Policy and shall hold such proceeds
as a permanent endowment fund (the "Fund"). The
assets of the Fund shall be invested as the Foundation may
from time to time determine. Distribution shall normally
be made from the Fund in accordance with the payout policy
established by the Foundation, except that in the event
of an emergency, as determined by a two-thirds vote of a
quorum of the Board of Trustees of the Foundation, any or
all assets of the Fund may be used in the manner determined
by the Trustees. Subject to the preceding sentence and to
Schedule B hereto, if any, distributions from the Fund shall
be made at least annually as follows:
A. Applied with, or in a manner similar to, distributions
from the Foundation's Unrestricted Endowment Fund, ________%
B. Applied with, or in a manner similar to, distributions
from the Foundation's ____________ Fund (a designated or
field of interest fund), ________%
C. Applied with, or in a manner similar to, distributions
from the Foundation's Annual Campaign Endowment (ACE), ________%
D. The following charitable organizations (Specify Names
and Percentages):
________% _______________________________
________% _______________________________
________% _______________________________
________% _______________________________
________% _______________________________
7. The Donor may, from time to time, submit to the Foundation
recommendations to amend Section 6 by changing the allocation
of distributions from the Fund specified in such section,
such as by the substitution as recipients of other charitable
organizations described in Sections 170(b)(1)(A) and 501(c)(3)
of the Internal Revenue Code, or any successor provision.
Any such recommendations shall be solely advisory, and the
Foundation is not bound by those recommendations.
8. If any beneficiary designated in paragraph 6D ceases
to exist, the income payable to such organization shall
be paid to its successor organization: or if there is no
successor, then to any charitable organization(s) described
in Sections 170(b)(1)(A) and 501(c)(3) of the Internal Revenue
Code, or any successor provision, as determined by the Foundation
(which may include the Foundation itself or United Way of
South Hampton Roads).
9. This Agreement is hereby declared to be irrevocable.
IN WITNESS WHEREOF, the Donor and the Foundation have each executed this Agreement as of the date set forth opposite their respective signatures.
________________ Donor:
___________________________________
Date Executed
The United Way of South Hampton Roads Foundation
________________ By:
_____________________________________
Date Executed Michael
Hughes, Executive Director
SCHEDULE A
Policy Number: _____________________________________
Issuing Company: ___________________________________
Insured: ________________________________________________
Beneficiary: The United Way of South Hampton Roads Foundation
Owner: The United Way of South Hampton Roads Foundation
SCHEDULE B
a. The insurance carrier identified on Schedule A above
is rated "A" or better by A.M. Best and at least
"AA" or better by at least two of the three other
major rating services.
b. The Policy identified on Schedule A above shows a limited
premium payment period, using projections at the issuing
carrier's current interest rate and at one percentage point
below that current interest rate.
c. The payment schedule for the coverage shows that, at
all times, the matching contributions made by the Foundation
are available as cash surrender value, and the Policy's
initial cash surrender value when the Policy is acquired
by the Foundation shall be sufficient to cover the Foundation's
initial matching contributions.
d. Of the total premium of $__________ per year provided
for under the Policy, the Donor agrees to pay to the Foundation
$__________, as provided in paragraph 2 of the Agreement,
and the Foundation agrees to pay the remaining $________,
subject to paragraphs 4 and 5 of the Agreement.
e. Distribution: At least 25% of distributions made from
the fund established with the policy's death proceeds are
to applied with, or in a similar manner to, distributions
from the Foundation's Unrestricted Endowment Fund or distributions
from the Foundation's Annual Campaign Endowment (ACE). The
balance of the distributions shall be made as indicated
in Paragraph 6 of the Agreement.