Exhibit 10d
Exhibit (10)(d)* to Report
on Form 10-K for Fiscal
Year Ended June 30, 1999
by Parker-Hannifin Corporation
Exchange Agreement entered into as of May 11, 1999 between the
Registrant and Duane E. Collins including an Executive Estate
Protection Plan comprised of the Executive Estate Protection
Agreement entered into by the Registrant, Duane E. Collins and
The Duane E. Collins Irrevocable Trust dated 5/10/99 (the
"Trust"), the Collateral Assignment between the Registrant and
the Trust and the "as sold" illustration of an Executive
Estate Protection Plan Insurance Policy.
*Numbered in accordance with Item 601 of Regulation S-K.
EXCHANGE AGREEMENT
THIS AGREEMENT (this "Agreement") is entered into as of May 11, 1999 between
Parker- Hannifin Corporation ("Parker"), and Duane E. Collins (the
"Participant").
RECITALS
--------
A. The Participant, as a participant in the Parker-Hannifin Corporation
Long Term Incentive Plan ("LTIP") received 38,633 shares of restricted
Parker stock (the "Restricted Shares") which are scheduled to vest on
August 21, 1999 pursuant to the terms of the LTIP.
B. However, pursuant to the terms of the LTIP, the vesting of the
Restricted Shares will be delayed due to the application of Section
162(m) of the Internal Revenue Code (the "Code"), which limits the
deductibility by Parker of Participant's compensation to $1,000,000 per
year.
C. The Participant and Parker mutually desire to resolve the issues
resulting from such delayed vesting. Parker has offered the Participant
certain benefits under an Executive Estate Protection Agreement in
exchange for the surrender by the Participant of the Restricted Shares
to Parker.
D. The Participant desires to surrender all of the Restricted Shares in
order to induce Parker to enter into the Executive Estate Protection
Agreement.
E. The Restricted Shares will become treasury shares of Parker and will be
utilized by Parker to meet its obligations under various stock-based
compensation plans. Parker will also recognize significant net income
as a result of the surrender of the Restricted Shares.
AGREEMENT
---------
NOW THEREFORE, it is mutually agreed that:
1. RESTRICTED SHARE SURRENDER. The Participant hereby agrees to surrender,
transfer and convey all of his right, title and interest in and to the
Restricted Shares to Parker effective immediately. The Participant
acknowledges that he shall have no further rights or claims of any sort
whatsoever to the Restricted Shares.
2. EXECUTIVE ESTATE PROTECTION. Parker has provided the Participant with
an Executive Estate Protection Plan, comprised of that certain
Executive Estate Protection Agreement dated May 11, 1999 by and between
Parker, the Participant and The Duane E. Collins Irrevocable Trust
dated 5/10/99, and the "as sold" illustration of an Executive Estate
Protection Plan Insurance Policy to be issued by John Hancock Life
Insurance Company (together, the "Executive Estate Protection Plan
Document"). By his signature below, the Participant acknowledges that
he has received a copy of the Executive Estate Protection Plan
Document. A further copy of the Executive Estate Protection Plan
Document is attached hereto and is hereby incorporated into and made a
part of this Agreement as though set forth in full in this
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1
Agreement. The parties to this Agreement agree to enter into the
Executive Estate Protection Agreement and shall be bound by, and have
the benefit of, each and every provision of the Executive Estate
Protection Plan Document as set forth in the Executive Estate
Protection Agreement. This Agreement and the Executive Estate
Protection Plan Document, collectively, shall be considered one
complete contract between the parties.
3. ACKNOWLEDGMENT. The Participant hereby acknowledges that he has read
and understands this Agreement and the Executive Estate Protection Plan
Document.
4. SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit of,
and be binding upon, Parker and its successors and assigns, and the
Participant and his assignees, devisees and heirs.
5. GOVERNING LAW. This Agreement shall be governed by and construed under
the laws of the State of Ohio, as in effect at the time of the
execution of this Agreement.
IN WITNESS WHEREOF, Parker and the Participant have signed this
Agreement as of the date first written above.
/s/ Duane E. Collins
Duane E. Collins
PARKER-HANNIFIN CORPORATION
/s/ Michael J. Hiemstra
Michael J. Hiemstra
Vice President - Finance and
Administration and Chief Financial
Officer
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EXECUTIVE ESTATE PROTECTION AGREEMENT
This Executive Estate Protection Agreement ("Agreement") is made as of
May 11, 1999, among Parker-Hannifin Corporation, an Ohio corporation, (the
"Corporation"), Duane E. Collins (the "Participant") and The Duane E. Collins
Irrevocable Trust dated 5/10/99 ( the "Owner").
RECITALS
--------
A. The Participant desires to insure his life and his wife's life for the
benefit and protection of the Participant's family or other beneficiary
under the Policy (as defined below);
B. The Corporation desires to help the Participant provide life insurance
for the benefit and protection of his family or beneficiary by
providing funds from time to time to pay the premiums due on the Policy
in accordance with this Agreement; and
C. The Owner desires to assign certain rights and interests in the Policy
to the Corporation, to the extent provided herein, as security for
repayment of certain funds provided by the Corporation for the
acquisition and/or maintenance of the Policy.
AGREEMENT
---------
NOW, THEREFORE, in consideration of the foregoing, and the mutual agreements and
covenants set forth below, the parties to this Agreement agree as follows:
1. DEFINITIONS. For purposes of this Agreement, unless otherwise clearly
apparent from the context, the following phrases or terms shall have
the following indicated meanings:
(a) "Aggregate Premiums Paid" shall mean, at any time, an amount
equal to the cumulative premiums paid by the Corporation on
the Policy.
(b) "Cash Surrender Value" shall mean an amount that equals, at
any specified time, the cash surrender value as determined
under the terms of the Policy.
(c) "Code" shall mean the Internal Revenue Code of 1986, as
amended.
(d) "Collateral Assignment" shall mean an assignment made by the
Owner in favor of the Corporation in a form attached to this
Agreement as Exhibit 1.
(e) "Collateral Interest" shall mean the Corporation's interest in
the Policy, which shall equal, at any time, the lesser of
Aggregate Premiums Paid or Cash Surrender Value, and which
shall be repaid to the Corporation in accordance with Section
6 below.
(f) "Corporation's Death Benefit" shall mean the portion of the
Policy's death benefit, if any, that exceeds the sum of the
Collateral Interest and the Owner's Death Benefit.
(g) "Decedent" shall mean the second to die of the Participant and
his wife.
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(h) "Designated Beneficiary" shall mean the beneficiary designated
under the Policy.
(i) "Economic Income" shall mean an amount equal to the value of
the "economic benefit" derived by the Participant from the
Policy's life insurance protection, as determined for Federal
income tax purposes under the Code. Economic Income shall
include any increase in economic benefit attributable to the
death of the first to die under the Policy.
(j) "Insurer(s)" shall mean John Hancock Life Insurance Company.
(k) "Owner" shall mean The Duane E. Collins Irrevocable Trust
dated 5/10/99.
(l) "Owner's Death Benefit" shall mean the lesser of $11,400,000
or the Policy's death benefit at the time of the Decedent's
death. As used herein, the phrase "Owner's Death Benefit"
shall be used solely to calculate the Corporation's Death
Benefit and shall not be interpreted as a guarantee by the
Corporation of a certain amount of death benefit under the
Policy. The ultimate amount of death benefit payable under the
Policy is dependent upon the financial performance of the
Policy.
(m) "Participant" shall mean Duane E. Collins.
(n) "Policy" shall mean the following joint life policy on the
life of the Participant and his wife that is issued by the
Insurer:
INSURER POLICY NUMBER TYPE OF POLICY
--------------------------------------- ----------------------------- -------------------------
John Hancock Life Insurance 8018924-4 Estate Protection Life
Company Insurance
--------------------------------------- ----------------------------- -------------------------
(o) "Split Dollar Maturity Date" shall mean the date on which the
first of either of the following events occurs:
(i) the fifteenth (15th) anniversary of the issuance of
the Policy; or
(ii) the death of the Decedent.
2. ACQUISITION OF POLICY; OWNERSHIP OF INSURANCE. The parties to this
Agreement shall cooperate in applying for and obtaining the Policy. The
Policy shall be issued to the Owner as the sole and exclusive owner of
the Policy, subject to the rights and interests granted to the
Corporation as provided in this Agreement and the Collateral
Assignment. Concurrent with the signing of this Agreement, the Owner
will collaterally assign the Policy to the Corporation, in the form of
the Collateral Assignment, as security for the payment of the
Collateral Interest, which assignment shall not be altered or changed
without the mutual consent of the Corporation and the Owner.
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2
3. PREMIUM PAYMENTS ON POLICY.
(a) PAYMENTS AND REIMBURSEMENTS. Prior to the occurrence of the
Split Dollar Maturity Date, the Corporation shall pay to the
Insurer, on or before each applicable premium due date, all
applicable premiums for the Policy, less the amount payable by
the Owner as described in subsection (b) below. The
Corporation shall promptly notify Owner in writing of the
amount and date of such premium payments. In the event that
the Corporation fails to make any such payment, the Owner or
the Participant may make (but is not required to make) any
such payment, and the Corporation shall immediately reimburse
the Owner or the Participant, as the case may be, for any
amount so paid.
(b) PREMIUM PAYMENT BY OWNER. Prior to the occurrence of the Split
Dollar Maturity Date, Owner shall pay to the Insurer, on or
before each applicable premium due date, a premium payment
equal to the Economic Income for such calendar year, as
mutually determined by the Corporation and the Participant.
(c) PREMIUM REIMBURSEMENT. At least sixty (60) days prior to each
applicable premium due date, the Corporation shall make a
payment to the Participant equal to the premium payable by the
Owner pursuant to subsection (b) above.
(d) TAX REIMBURSEMENT. On or before March 15 following each
calendar year until the Split Dollar Maturity Date, the
Corporation shall reimburse the Participant for the
Participant's state, local and federal income tax liability
attributable to (i) the Participant's Economic Income for such
calendar year, if any; (ii) the payment by the Corporation to
the Participant pursuant to subsection (c) above; and (iii)
payments made pursuant to this subsection (d). The tax rates
used by the Corporation in calculating the reimbursement under
this Section 3(c) shall be the appropriate federal, state and
local income tax rates in effect at the time of payment, as
mutually determined by the Corporation and the Participant.
4. CORPORATION'S RIGHTS. The Corporation's rights and interests in and to
the Policy shall be specifically limited to (i) the right to be paid
its Collateral Interest and the Corporation's Death Benefit, if any, in
accordance with Section 6 below, (ii) the rights specified in the
Collateral Assignment, and (iii) the right to obtain one (1) or more
loans or advances on the Policy, provided, however, that any such loans
shall not, in the aggregate, exceed the Aggregate Premiums Paid by the
Corporation at any specified date without the written consent of the
Participant.
5. OWNER'S RIGHTS. Subject to the terms of this Agreement and the
Collateral Assignment, the Owner of the Policy shall be entitled to
exercise all rights in the Policy; provided, however, that while the
Collateral Assignment is in effect, the following rights may be
exercised only with the consent of the Corporation, which consent may
be withheld at the sole discretion of the Corporation:
(a) To borrow against or pledge the Policy;
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3
(b) To surrender or cancel the Policy; or
(c) To take a distribution or withdrawal from the Policy.
In particular, subject to the terms and conditions of the Policy, and
the provisions of Section 6 below, the Owner may assign its rights
under this Agreement and the Collateral Agreement, including but not
limited to an assignment to an insurance trust of which the Participant
is a settlor. In the event of an assignment of its rights, the Owner
shall promptly notify the Corporation of the name and address of the
new Owner or assignee, including the name and address of any trustee.
6. COLLATERAL INTEREST. On the Split Dollar Maturity Date, the Collateral
Interest (and, if applicable under Section 6(a) below, the
Corporation's Death Benefit) shall be paid or repaid to the Corporation
in the following manner:
(a) Notwithstanding any provision of this Agreement or the Policy
that may be construed to the contrary, if the Split Dollar
Maturity Date occurs due to the death of the Decedent, (i) the
Corporation shall be entitled to that portion of the Policy's
death proceeds that equals the sum of the Collateral Interest
and the Corporation's Death Benefit, if any, and (ii) the
Owner or the Designated Beneficiary, as the case may be, shall
be entitled to the Owner's Death Benefit; provided, however,
if the Split Dollar Maturity Date occurs due to the suicide of
the Decedent, and the proceeds from the Policy are limited by
either a suicide or contestability provision under the Policy,
the Corporation shall be entitled to that portion of the
higher of the Policy's Cash Surrender Value or death proceeds
that does not exceed the Aggregate Premiums Paid. In either
event, promptly following the Decedent's death, the
Corporation and the Owner or the Designated Beneficiary shall
take all steps necessary to collect the death proceeds of the
Policy by submitting the proper claims forms to the Insurer.
The Corporation shall notify the Insurer of the amount of the
Owner's Death Benefit (except when the Policy's proceeds are
limited because of the Decedent's death by suicide) and the
Corporation's Collateral Interest in the Policy at the time of
such death. Such amounts shall be paid, respectively, by the
Insurer to the Owner or to the Designated Beneficiary, as the
case may be, and the Corporation.
(b) If the Split Dollar Maturity Date is other than the date of
the Decedent's death, the Corporation's Collateral Interest in
the Policy shall be paid to the Corporation in one of the
following ways, as elected by the Owner in writing within
thirty (30) days after the date the Corporation first notifies
the Participant and Owner in writing of the occurrence of the
Split Dollar Maturity Date:
(i) By the Owner authorizing the Insurer to make a loan
against the Policy in an amount equal to the
Corporation's Collateral Interest and to pay the
proceeds to the Corporation, in which case the Owner
shall be considered the borrower for all purposes
under the loan;
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4
(ii) By the Owner authorizing the Insurer to withdraw from
the Cash Surrender Value of the Policy an amount
equal to the Corporation's Collateral Interest and to
pay the proceeds to the Corporation; or
(iii) By the Owner paying to the Corporation, from the
Owner's separate funds, an amount equal to the
Corporation's Collateral Interest.
(c) If the Owner fails to timely exercise any of the options under
Section 6(b) above, the Corporation shall be entitled to
instruct the Insurer to pay to the Corporation from the Cash
Surrender Value of the Policy an amount equal to the
Corporation's Collateral Interest.
(d) The Corporation agrees to keep records of its premium payments
and to furnish the Owner and the Insurer with a statement of
its Collateral Interest whenever either party requires such
statement.
(e) Upon and after the Corporation's Collateral Interest in the
Policy has been repaid pursuant to Section 6(b) above, the
Corporation shall execute and file with the Insurer an
appropriate release of the Corporation's interest in the
Policy and shall have no further interest in the Policy.
Further, the Participant and/or Owner hereby acknowledge,
understand and agree that, upon the release of the
Corporation's Collateral Interest, the Corporation shall
continue not to have any responsibility for the future
performance of the Policy and shall have no obligation to make
any additional premium payments.
(f) Upon payment to the Corporation of its Collateral Interest in
accordance with this Section 6, this Agreement shall terminate
and no party shall have any further rights or obligations
under the Agreement with respect to any other party provided
that the Corporation has complied with all provisions of this
Agreement.
7. INSURER.
(a) The Insurer is not a party to this Agreement, shall in no way
be bound by or charged with notice of its terms, and is
expressly authorized to act only in accordance with the terms
of the Policy. The Insurer shall be fully discharged from any
and all liability under the Policy upon payment or other
performance of its obligations in accordance with the terms of
the Policy.
(b) The signature(s) required for the Insurer to recognize the
exercise of a right under the Policy shall be specified in the
Collateral Assignment.
8. CLAIMS PROCEDURE.
The following claims procedure shall be followed in handling any
benefit claim under this Agreement:
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5
(a) The Owner, Participant, or the Designated Beneficiary, as the
case may be, (the "Claimant"), shall file a claim for benefits
by notifying the Corporation in writing. If the claim is
wholly or partially denied, the Corporation shall provide a
written notice within ninety (90) days (unless special
circumstances require an extension of time for processing the
claim, in which case an extension not to exceed ninety (90)
days shall be allowed) specifying the reasons for the denial,
the provisions of this Agreement on which the denial is based,
and additional material or information, if any, that is
necessary for the Claimant to receive benefits. Such written
notice shall also indicate the steps to be taken by the
Claimant if a review of the denial is desired.
(b) If a claim is denied, and a review is desired, the Claimant
shall notify the Corporation in writing within sixty (60) days
after receipt of written notice of a denial of a claim. In
requesting a review, the Claimant may submit any written
issues and comments the Claimant feels are appropriate. The
Corporation shall then review the claim and provide a written
decision within sixty (60) days of receipt of a request for a
review (unless special circumstances require an extension of
time for processing the claim, in which case an extension not
to exceed ninety (60) days shall be allowed). This decision
shall state the specific reasons for the decision and shall
include references to specific provisions of this Agreement,
if any, upon which the decision is based.
(c) If no event shall the Corporation's liability under this
Agreement exceed the amount of proceeds from the Policy.
9. AMENDMENT OF AGREEMENT. This Agreement shall not be modified or amended
except by a writing signed by all the parties hereto.
10. BINDING AGREEMENT. This Agreement shall be binding upon the heirs,
administrators, executors, successors and assigns of each party to this
Agreement.
11. STATE LAW. This Agreement shall be subject to and construed under the
internal laws of the State of Ohio, without regard to its conflicts of
laws principles.
12. VALIDITY. In case any provision of this Agreement shall be illegal or
invalid for any reason, said illegality or invalidity shall not affect
the remaining parts of this Agreement, but this Agreement shall be
construed and enforced as if such illegal or invalid provision had
never been inserted in this Agreement.
13. NOT A CONTRACT OF EMPLOYMENT. The terms and conditions of this
Agreement shall not be deemed to constitute a contract of employment
between the Corporation and the Participant. Nothing in this Agreement
shall be deemed to give the Participant the right to be retained in the
service of the Corporation or to interfere with the right of the
Corporation to discipline or discharge the Participant at any time.
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6
14. NOTICE. Any notice or filing required or permitted to be given under
this Agreement to the Owner, Participant or the Corporation shall be
sufficient if in writing and hand-delivered, or sent by registered or
certified mail, to the address below:
To the Owner: The Duane E. Collins Irrevocable
Trust dated 5/10/99
c/o Sharon Anne Collins, Trustee
7205 Whitetail Trail
Centerville, OH 45459
To the Participant: Duane E. Collins
8695 Sanctuary Drive
Kirtland Hills, OH 44060
To the Corporation: Parker Hannifin Corporation
6035 Parkland Boulevard
Cleveland, OH 44124
Attn: General Counsel
or to such other address as may be furnished to the Owner, Participant
or the Corporation in writing in accordance with this notice provision.
Such notice shall be deemed given as of the date of delivery or, if
delivery is made by mail, as of the date shown on the postmark on the
receipt for registration or certification. Any notice or filing
required or permitted to be given to the Owner and/or the Participant
or the Designated Beneficiary under this Agreement shall be sufficient
if in writing and hand-delivered, or sent by mail, to the last known
address of the Owner and/or the Participant, as the case may be.
15. CREDITWORTHINESS OF INSURER; TAX CONSEQUENCES. The Participant and
Owner assume all risk of the creditworthiness of the Insurer and
acknowledge that the Corporation makes no representation or guarantee
of the creditworthiness of any Insurer. The Participant and Owner
acknowledge responsibility for all federal, state and local tax
consequences imposed on the Participant and Owner as a result of this
Agreement and further acknowledge that the Corporation has not made any
representations or guarantees of present or future tax consequences.
16. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the parties hereto with regard to the subject matter of this
Agreement and supersedes all previous negotiations, agreements and
commitments in respect thereto. No oral explanation or oral information
by the parties to this Agreement shall alter the meaning or
interpretation of this Agreement.
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7
IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of
the date first written above.
PARKER-HANNIFIN CORORATION
/s/ Michael J. Hiemstra
Michael J. Hiemstra
Vice President - Finance and Administration and
Chief Financial Officer
/s/ Duane E. Collins
Duane E. Collins
THE DUANE E. COLLINS IRREVOCABLE TRUST DATED 5/10/99
/s/ Sharon Ann Collins, Trustee
Sharon Ann Collins, Trustee
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8
EXHIBIT 1
---------
COLLATERAL ASSIGNMENT
---------------------
This Collateral Assignment (this "Assignment") is made and entered into
as of May 11, 1999, by and between The Duane E. Collins Irrevocable Trust dated
5/10/99 (the "Owner"), as the owner of a life insurance policy, No. 8018924-4
(the "Policy"), issued by John Hancock Life Insurance Company (the "Insurer"),
on the lives of Duane E. Collins (the "Participant") and Barbara J. Collins,
Participant's wife (the "Wife"), and Parker-Hannifin Corporation, an Ohio
corporation (the "Corporation").
RECITALS
--------
A. The Corporation desires to help the Owner provide life insurance for
the benefit and protection of the Participant's family or beneficiary
by providing funds from time to time to pay the premiums due on the
Policy as more specifically provided in the Executive Estate Protection
Agreement entered into between the Participant, the Owner and the
Corporation as of the date hereof (the "Agreement"); and
B. In consideration of the Corporation agreeing to provide such funds in
accordance with the terms and conditions of the Agreement, the Owner
agrees to grant to the Corporation, as a security interest in the
Policy, a collateral security interest for the payment of the
Corporation's Collateral Interest (as defined in the Agreement).
AGREEMENT
---------
NOW, THEREFORE, in consideration of the foregoing, and the mutual agreements and
covenants set forth below, the parties to this Assignment agree as follows:
1. ASSIGNMENT. The Owner hereby assigns, transfers and sets over to the
Corporation, and its successors and assigns, those certain rights and
interests described in the Agreement that are to be assigned to the
Corporation in accordance with the Agreement. Furthermore, this
Assignment is made, and the Policy is to be held as collateral security
for, any and all liabilities of the Owner to the Corporation, either
now existing, or that may hereafter arise, pursuant to the terms of the
Agreement.
2. SIGNATURES.
(a) To facilitate the operation of this Assignment, the parties
agree that the Insurer is hereby notified that the following
rights under the Policy may be exercised while the Assignment
is in effect without the signature or consent of any other
party:
(i) The Owner may sign a request to change the
beneficiary under the Policy without the signature or
consent of the Corporation.
(ii) The Corporation may sign a request to take a loan
without the Owner's or Participant's signature or
consent.
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1
(iii) The Corporation may sign an instruction to the
Insurer to pay an amount equal to the Corporation's
Collateral Interest from the Policy's Cash Surrender
Value to the Corporation without the Participant's or
the Owner's signature or consent; provided that the
Corporation simultaneously delivers to the Insurer a
notarized statement that the Corporation is
exercising its rights in accordance with Section 6(c)
of the Agreement.
(b) The exercise of any other right under the Policy not
specifically set forth above shall be exercised with the
signature of both the Corporation and the Owner.
3. POLICY PROCEEDS. Any amount payable from the Policy during the
Participant's or the Wife's lives or at the Decedent's (as defined in
the Agreement) death shall first be paid to the Corporation to the
extent of its Collateral Interest and the Corporation's Death Benefit
(as defined in the Agreement). Any balance will be paid to the Owner
during the Participant's lifetime or to the Designated Beneficiary (as
defined in the Agreement) upon or after the Decedent's death. A
settlement option may be elected by the recipient of the proceeds. For
purposes of this Section, the amount of the Collateral Interest shall
be determined for purposes of the Insurer by a written statement
delivered to the Insurer and signed by the Corporation.
4. ENDORSEMENT. The Corporation shall hold the Policy while this
Assignment is operative and, upon request, forward the Policy to the
Insurer, without unreasonable delay, for endorsement of any designation
or change of beneficiary, any election of optional mode of settlement,
or the exercise of any other right reserved by the Owner in this
Assignment.
5. INSURER. The Insurer is hereby authorized to recognize the
Corporation's claims to rights hereunder without investigating the
reason for any action taken by the Corporation, the validity or amount
of any of the liabilities of the Owner to the Corporation under the
Agreement, the existence of any default therein, the giving of any
notice required herein, or the application to be made by the
Corporation of any amounts to be paid to the Corporation. The Insurer
shall not be responsible for the sufficiency or validity of this
Assignment and is not a party to the Agreement (or any other similar
executive life insurance agreement) between the Corporation and the
Owner or the Participant.
6. RELEASE OF ASSIGNMENT. Upon the full payment of the Corporation's
Collateral Interest in accordance with the terms and conditions of this
Assignment and the Agreement, the Corporation shall release to the
Owner, if the Owner retains the Policy in accordance with the
Agreement, the Policy and all specific rights included in this
Assignment.
7. AMENDMENT OF ASSIGNMENT. This Assignment shall not be modified, amended
or terminated, except by a writing signed by all the parties hereto.
8. NO RESTRICTION ON ASSIGNMENT . This Assignment does not limit the
rights of the Owner to assign the rights it has retained under the
Policy which rights may be assigned in accordance with Section 5 of the
Agreement.
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2
9. BINDING AGREEMENT. This Assignment shall be binding upon the heirs,
administrators, executors and permitted successors and assigns of each
party to this Assignment.
10. STATE LAW. This Assignment shall be subject to and be construed under
the internal laws of the State of Ohio, without regard to its conflicts
of law principles.
11. VALIDITY. In case any provision of this Assignment shall be illegal or
invalid for any reason, said illegality or invalidity shall not affect
the remaining parts of this Assignment, but this Assignment shall be
construed and enforced as if such illegal or invalid provision had
never been inserted in this Assignment.
IN WITNESS WHEREOF, the Owner and the Corporation have signed this
Assignment as of the date first written above.
THE DUANE E. COLLINS IRREVOCABLE PARKER-HANNIFIN CORPORATION
TRUST DATED 5/10/99
/s/ Sharon Ann Collins, Trustee /s/ Michael J. Hiemstra
Sharon Ann Collins, Trustee Michael J. Hiemstra
Vice President-Finance and
Administration and Chief Financial
Officer
FILED WITH THE INSURER:
- --------------------------------------- Date: 6/1/99
Insurer
The John Hancock Mutual Life Insurance
Company without assuming any
responsibility for the validity or the
sufficiency of this instrument, has on
this date, filed a duplicate thereof at
it's Home Office.
Date 6/1/99
JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY
By Secretary
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3
JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY & AFFILIATED COMPANIES
BOSTON, MA 02117
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Life 1: Duane Collins Life 2: Joyce Collins A LIFE INSURANCE POLICY
Male Age 63 Female Age 62 ILLUSTRATION
Non Tobacco Use Non Tobacco Use ESTATE PROTECTION III
(Form 91-95)
Initial Billing Mode: Annual
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ESTATE PROTECTION III
A Survivorship Whole Life Insurance Policy
Survivorship The Estate Protection Survivorship Whole Life insurance policy
Whole Life which you are considering provides permanent life insurance
Insurance protection with guaranteed premiums, cash values and death
benefits. Estate Protection insures two people - typically a
married couple - in one policy and pays a death benefit at the
second death. It is designed specifically to provide a
cost-efficient way to fund future estate taxes due at the
death of the surviving insured. The base policy death benefit
is guaranteed to be paid at the surviving insured's death,
provided that the required base policy contract premium is
paid each year when due.
Death Benefit The life insurance provided in this illustration reflects a
Total Initial Death Benefit of $11,402,460. This initial death
benefit includes Additional Insurance Protection Rider (AIP)
death benefit coverage.
Base Policy Estate Protection's modified premium structure provides a
Contract lower initial contract premium for the first 10 years,
Premium increasing in year 11 to the ultimate contract premium shown
on the Basic Illustration Policy Summary Page. The initial
annual base policy contract premium is $92,807.63.
Non-Guaranteed Many aspects of your life insurance contract are guaranteed,
Benefits including your premiums, cash values and death benefits.
However, certain aspects of the policy are based on
non-guaranteed dividends which can't be predicted with
absolute certainty, just as future interest rates or stock
dividends can't be predicted.
Dividends Dividends paid are based on the Company's experience which
depends on items such as the general interest rate
environment, the amount and timing of benefit claims that the
Company pays, and the Company's operating expenses. Dividends
actually paid may be higher or lower than illustrated.
Dividends are not guaranteed and are subject to change by the
Company.
Dividend The non-guaranteed benefits and values shown in this
Option illustration provide snapshots of your policy assuming the
dividends are applied under the AIP Rider dividend option to
purchase amounts of Paid-Up Insurance and One Year Term
Insurance.
Alternate The Alternate Premium Payment Option assumes that required
Premium premiums are paid by non-guaranteed policy values as reflected
Payment in the Net Premium Outlay column of the illustration. This
Option payment option is possible only if future dividends and/or cash
values are large enough to pay the required premium which is
due each year. Lower dividends, higher term charges (if
applicable), policy loans or partial surrenders taken from the
policy could cause additional premium outlay to be required.
Additional The Additional Insurance Protection (AIP) Rider provides a
Insurance combination of joint term and paid up insurance funded by
Protection additional premium and dividends. The rider death benefit is
Rider payable at the death of the surviving insured. The rider
premium is payable for the life of the contract but may be
paid by non-guaranteed policy values if sufficient values
exist to pay premiums and to fund coverage to maturity.
If the funds available are insufficient to purchase the entire
AIP Rider death benefit, we will apply all such funds to
purchase one year term insurance and you may pay us an amount
that will purchase the balance of coverage.
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY & AFFILIATED COMPANIES
BOSTON, MA 02117
- --------------------------------------------------------------------------------
Life 1: Duane Collins Life 2: Joyce Collins A LIFE INSURANCE POLICY
Male Age 63 Female Age 62 ILLUSTRATION
Non Tobacco Use Non Tobacco Use ESTATE PROTECTION III
(Form 91-95)
Initial Billing Mode: Annual
- --------------------------------------------------------------------------------
ESTATE PROTECTION III
A Survivorship Whole Life Insurance Policy
One Year One year joint term insurance rates are based on current
Joint Term experience and are guaranteed for the first 5 years. The death
Insurance benefit is payable on the death of the surviving insured. Any
one year term is not convertible to permanent insurance.
Premium The Premium Cost Recovery Benefit provides an additional AIP
Cost Recovery rider death benefit of $695,204 in the first year. In
Benefit subsequent years the additional death benefit is the prior
year's additional death benefit increase at a rate of 0% plus
$695,204, becoming level after 12 years.
AIP Provided that an AIP Rider Level Premium of $207,336.23 is
Level Premium paid in each year, beginning in year 1, the initial AIP Rider
Based on Death Benefit of 8,106,803 would remain in force, based on
Guaranteed guaranteed assumptions.
Assumptions
Taxation We suggest that you seek professional counsel regarding the
of Life interpretation of current tax laws and accounting practices as
Insurance they relate to your actual situation. The Technical and
Miscellaneous Revenue Act (TAMRA) of 1999 classifies some
policies as Modified Endowment Contracts. Distributions from
these policies (excluding death benefits but including policy
loans, certain partial surrenders, and some dividends) are
taxed differently and may be subject to an IRS 10% penalty
tax. TAMRA testing has been performed on the current scale
only. The initial annual 7-pay premium for this policy is
$695,209.00. Based on our interpretation of TAMRA, this policy
as illustrated would not be considered a Modified Endowment
Contract.
Other THIS IS AN ILLUSTRATION ONLY. AN ILLUSTRATION IS NOT INTENDED
Considerations TO PREDICT ACTUAL PERFORMANCE. INTEREST RATES, DIVIDENDS, AND
VALUES SET FORTH IN THE ILLUSTRATION ARE NOT GUARANTEED.
THIS ILLUSTRATION ASSUMES THAT THE CURRENTLY ILLUSTRATED
NON-GUARANTEED ELEMENTS WILL CONTINUE UNCHANGED FOR ALL YEARS
SHOWN. THIS IS NOT LIKELY TO OCCUR, AND ACTUAL RESULTS MAY BE
MORE OR LESS FAVORABLE.
While not reflected in your Basic Illustration, this policy
allows you to access cash values through policy loans and
partial surrenders. If requested, the effect of these
transactions on your policy benefits and values will be
reflected in your Supplemental Illustration.
John Hancock is proud of its commitment to financial integrity
and quality service. In support of this commitment, we
encourage you to review the assumptions used in this
illustration to help you make an informed purchase decision.
This illustration is not a contract and is not intended to
predict actual performance. Your policy contract will contain
the specific terms of coverage.
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY & AFFILIATED COMPANIES
BOSTON, MA 02117
- --------------------------------------------------------------------------------
Life 1: Duane Collins Life 2: Joyce Collins A LIFE INSURANCE POLICY
Male Age 63 Female Age 62 ILLUSTRATION
Non Tobacco Use Non Tobacco Use ESTATE PROTECTION III
(Form 91-95)
Initial Billing Mode: Annual
- --------------------------------------------------------------------------------
ESTATE PROTECTION III
A Survivorship Whole Life Insurance Policy
GLOSSARY OF TERMS
AIP Rider The cash value of the paid up insurance portion of the AIP Rider
Cash Value death benefit is available upon policy surrender.
AIP PUA The is the portion of the AIP Rider death benefit which is paid
Death Benefit up insurance coverage.
AIP Rider The AIP Rider supplements the base policy death benefit with
Coverage lower cost insurance coverage. It is a combination of term
insurance and paid up additional insurance, which is permanent
insurance coverage. The AIP Rider is paid for by using
non-guaranteed base policy dividends in addition to AIP Rider
premium payments. Dividends and/or AIP Rider term charges can
increase or decrease. In that event, you may need to pay more to
keep the AIP Rider coverage in force. The lower the AIP payment,
the more you rely on non-guaranteed base policy dividends to
maintain the AIP Rider coverage.
AIP Rider The AIP Rider is paid for by using base policy dividends in
Premium addition to AIP Rider premium payments, including any AIP Rider
lump sum payment amounts.
AIP The AIP Rider term cost is based on one year term insurance rates
Term Cost which are guaranteed for the first 5 policy years. Thereafter,
the term rates are subject to change, but cannot exceed the
guaranteed maximum rate shown in the contract.
AIP Term This is the portion of the AIP Rider death benefit which is one
Death year term insurance coverage.
Benefit
Annual The annual dividend, a non-guaranteed policy value, includes the
Dividend base policy dividend plus any dividends earned on paid up
insurance. Dividends are based on current investment, claim, and
expense experience and are neither guarantees nor estimates.
Dividends actually paid may be higher or lower than those shown.
Variations in dividends paid would affect:
- Death benefit provided by dividends
- Policy cash values provided by dividends
- Total "Net Premium Outlay"
Non-Guaranteed dividends can increase the value of your life
insurance policy in one of two ways:
- By reducing the out-of pocket cost of your policy
- By increasing your policy's cash value and/or death
benefit.
Base The death benefit on the base policy is guaranteed assuming the
Guaranteed base policy contract premium is paid when due and no policy loans
Death are taken against it. This is the value that is payable upon the
Benefit death of the surviving insured. The actual amount payable may be
decreased by loans or increased by additional insurance benefits.
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY & AFFILIATED COMPANIES
BOSTON, MA 02117
- --------------------------------------------------------------------------------
Life 1: Duane Collins Life 2: Joyce Collins A LIFE INSURANCE POLICY
Male Age 63 Female Age 62 ILLUSTRATION
Non Tobacco Use Non Tobacco Use ESTATE PROTECTION III
(Form 91-95)
Initial Billing Mode: Annual
- --------------------------------------------------------------------------------
ESTATE PROTECTION III
A Survivorship Whole Life Insurance Policy
GLOSSARY OF TERMS
Base The Base Contract Premium column includes the base policy
Contract contract premium and the premium for any riders, with the
Premium exception of term and paid up insurance riders.
Base The cash value on the base policy is guaranteed assuming the base
Guaranteed policy contract premium is paid when due and no policy loans are
Cash Value taken against it. This value is available as cash upon surrender
of the policy.
Contract This illustration reflects annual premiums payable until the
Premiums death of the surviving insured. Payments may be made at more
frequent intervals; however, total payments will be higher. Refer
to the Basic Illustration Summary page for information on modal
payment options. Contract premiums are paid at the beginning of
each modal premium payment period. Actual premiums required for
this insurance coverage will ultimately depend on the outcome of
the underwriting process, and may vary from what is shown on this
illustration. If so, you will receive a REVISED BASIC
ILLUSTRATION prior to or upon delivery of your insurance
contract.
Life The estimated joint life expectancy is 23 years assuming 1980 CSO
Expectancy mortality with Nonsmoker/Nonsmoker and select factors. This
illustration assumes the death of Life 1 in year 17.
Net Premium Net Premium Outlay reflects required premium less any
Outlay non-guaranteed values assumed applied to pay all or a portion of
the premium due.
Risk Classifications represent groups of people with similar risk
Class characteristics and help to determine the cost of insurance. Risk
classes vary by the plan or product illustrated. Final Risk
Classification for a proposed insured is determined upon
completion of the underwriting process.
Surrender The Surrender To Pay Premium column reflects the amount of
To Pay non-guaranteed dividend and/or cash value assumed to be applied
Premium to pay required premium.
Total The Total Cash Value is equal to the Base Guaranteed Cash Value
Cash Value plus any dividends and interest unapplied or unpaid, and the
cash value of any paid up insurance earned by dividends or under
a paid up insurance rider, if any. This value is available as
cash upon surrender of the policy. Cash Values are illustrated as
of the end of the year (EOY) unless otherwise indicated.
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY & AFFILIATED COMPANIES
BOSTON, MA 02117
- --------------------------------------------------------------------------------
Life 1: Duane Collins Life 2: Joyce Collins A LIFE INSURANCE POLICY
Male Age 63 Female Age 62 ILLUSTRATION
Non Tobacco Use Non Tobacco Use ESTATE PROTECTION III
(Form 91-95)
Initial Billing Mode: Annual
- --------------------------------------------------------------------------------
ESTATE PROTECTION III
A Survivorship Whole Life Insurance Policy
GLOSSARY OF TERMS
Total Total Death Benefit is equal to the Base Guaranteed Death Benefit
Death plus any dividends and interest unapplied or unpaid, plus the
Benefit death benefit of any paid up insurance earned by dividends or
under a paid up insurance rider or AIP rider, if any, plus the
death benefit under any term insurance riders. This is the
benefit payable upon the death of the surviving insured. Death
Benefits are illustrated as of the end of the year (EOY) unless
otherwise indicated.
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY & AFFILIATED COMPANIES
BOSTON, MA 02117
- --------------------------------------------------------------------------------
Life 1: Duane Collins Life 2: Joyce Collins A LIFE INSURANCE POLICY
Male Age 63 Female Age 62 ILLUSTRATION
Non Tobacco Use Non Tobacco Use ESTATE PROTECTION III
(Form 91-95)
Initial Billing Mode: Annual
- --------------------------------------------------------------------------------
BASIC ILLUSTRATION SUMMARY
Current Dividend Scale
Alternate Premium Payment Option
Dividends Applied Under AIP Rider Dividend Option
RISK CLASS
Life 1: Non Tobacco Use
Life 2: Non Tobacco Use
SUMMARY OF INITIAL COVERAGE
Initial First Year
Coverage Description Amount Annual Premium
Estate Protection Base Policy $3,990,862 $92,807.63
Premium $139,181.45 starting in yr 11
Additional Insurance Protection Rider $7,411,599
with Premium Cost Recovery Benefit
at 0.00% per year for 12 years $695,204
Level Annual Premium $602,396.00
-----------
TOTAL excluding any rider lump sum payment $695,203.63
Initial MODAL Premium: Annual $695,203.63
Semi-annual $355,945.03
Quarterly $181,449.28
Premiumatic $60,136.11
Initial Annual 7-Pay Premium $695,209.00
Additional Insurance Protection Rider Target Premium $86,122.78
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY & AFFILIATED COMPANIES
BOSTON, MA 02117
- --------------------------------------------------------------------------------
Life 1: Duane Collins Life 2: Joyce Collins A LIFE INSURANCE POLICY
Male Age 63 Female Age 62 ILLUSTRATION
Non Tobacco Use Non Tobacco Use ESTATE PROTECTION III
(Form 91-95)
Initial Billing Mode: Annual
- --------------------------------------------------------------------------------
GUARANTEED ASSUMPTIONS
These policy benefits and values are guaranteed provided the premium is paid
when due and assume guaranteed term rates.
NON-GUARANTEED ASSUMPTIONS
These policy benefits and values are not guaranteed. Non-guaranteed elements are
subject to change by the company. Actual results may be more or less favorable.
Current Scale:
Policy benefits and values are based on the current dividend scale and current
term rates.
Midpoint Scale:
Policy benefits and values are based on 50% of the current dividend scale and
term rates that are halfway between current and guaranteed.
Premiums are assumed paid at the beginning of each year. Policy values,
including cash values and death benefits, are illustrated as of the end of the
year (EOY) unless otherwise indicated.
These policy benefits and values do not reflect the impact of any loans or cash
surrenders that may be taken.
Representative's Address:
John Hancock
197 Clarendon
Boston MA 02117
License Number:
$11,402,460 Initial Death Benefit: $3,990,862 Base with $7,411,599 AIP Rider
First Year Annual Contract Premium of $695,203.63
Alternate Premium Payment Option
Dividends Applied Under AIP Rider Dividend Option
SUMMARY YEARS GUARANTEED NON-GUARANTEED ASSUMPTIONS
ASSUMPTIONS Midpoint Scale Current Scale
---------------------------------------------------
Years Premium Paid in Cash 19* 10** 7**
- -------------------------------------------------------------------------------------
Summary Year 5
Total Cash Value 3,496,207 3,670,563 3,852,332
Total Death Benefit 14,878,480 14,939,091 15,003,592
Cumulative Net Premium Outlay 3,476,018 3,476,018 3,476,018
- --------------------------------------------------------------------------------------
Summary Year 10
Total Cash Value 7,764,329 8,628,658 7,323,150
Total Death Benefit 18,354,500 18,510,784 18,616,370
Cumulative Net Premium Outlay 6,952,036 6,952,036 4,866,425
- --------------------------------------------------------------------------------------
Summary Year 20
Total Cash Value 16,695,806 13,528,274 14,499,032
Total Death Benefit 22,996,328 20,068,060 20,419,348
Cumulative Net Premium Outlay 13,208,870 6,952,036 4,866,425
- --------------------------------------------------------------------------------------
Summary Year 30
Total Cash Value 18,577,508 18,777,024 26,103,956
Total Death Benefit 21,299,504 21,469,172 29,625,488
Cumulative Net Premium Outlay 13,208,870 6,952,036 4,866,425
- --------------------------------------------------------------------------------------
*This illustration assumes policy values are used to pay contract premium.
**This illustration assumes non-guaranteed values are used to pay contract
premium.
I have received a copy of this illustration and understand that any
non-guaranteed elements illustrated are subject to change and could be either
higher or lower. The representative has told me they are not guaranteed.
Applicant 1: _______________________________ Date: _________________
Applicant 2: _______________________________ Date: _________________
I certify that this illustration has been presented to the applicant and that I
have explained that any non-guaranteed elements illustrated are subject to
change. I have made no statements that are inconsistent with the illustration.
Representative: ____________________________ Date: _________________
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY & AFFILIATED COMPANIES
BOSTON, MA 02117
- --------------------------------------------------------------------------------
Life 1: Duane Collins Life 2: Joyce Collins A LIFE INSURANCE POLICY
Male Age 63 Female Age 62 ILLUSTRATION
Non Tobacco Use Non Tobacco Use ESTATE PROTECTION III
(Form 91-95)
Initial Billing Mode: Annual
- --------------------------------------------------------------------------------
ILLUSTRATION BASED ON GUARANTEED ASSUMPTIONS
$3,990,862 Policy with $7,411,599 Additional Insurance Protection Rider
Initial Annual Contract Premium of $695,203.63
Alternate Premium Payment Option
BASE AIP Total AIP AIP Total
Base AIP Surrender *Net GUAR Rider Cash AIP Term PUA Base Death
Contract Rider To Pay Premium CASH Cash Value Term Death Death Death Benefit
Year Premium Premium Premium Outlay VALUE Value (EOY) Cost Benefit Benefit Benefit (EOY)
- ---- ------- ------- ------- ------ ----- ----- ----- ---- ------- ------- ------- -----
1 92808 602396 0 695204 40 571060 571100 1657 6628151 1478651 3990862 12097663
2 92808 602396 0 695204 90632 1167553 1258185 1595 5908077 2893929 3990862 12792867
3 92808 602396 0 695204 184458 1790136 1974593 1575 5248448 4248762 3990862 13488071
4 92808 602396 0 695204 281116 2439282 2720398 1580 4646334 5546080 3990862 14183276
5 92808 602396 0 695204 380728 3115479 3496207 1681 4098988 6788631 3990862 14878480
------ ------- ------- ------- -----
464038 3011980 0 3476018 8087
6 92808 602396 0 695204 482814 3812348 4295163 8030 3617204 7965618 3990862 15573683
7 92808 602396 0 695204 586816 4534342 5121158 9561 3187003 9091023 3990862 16268888
8 92808 602396 0 695204 692814 5282317 5975130 10714 2804626 10168605 3990862 16964092
9 92808 602396 0 695204 800367 6055847 6856214 11968 2467606 11200829 3990862 17659296
10 92808 602396 0 695204 909278 6855051 7764329 13126 2173178 12190460 3990862 18354500
------ ------- ------- ------- -----
928076 6023960 0 6952036 61486
11 139181 602396 46374 695204* 1057379 7615970 8673349 19655 2003540 13055302 3990862 19049704
12 139181 602396 46374 695204* 1204921 8389263 9594184 23623 1871887 13882159 3990862 19744908
13 139181 602396 46374 695204* 1351106 9183207 10534313 17004 1062752 14691294 3990862 19744908
14 139181 602396 46374 695204* 1495057 10000710 11495766 5236 261661 15492384 3990862 19744908
15 139181 602396 46374 695204* 1636213 10832970 12469183 0 0 16276212 3990862 20267074
------ ------- ------- ------- -----
1623984 9035940 231869 10428054 127004
16 139181 602396 46374 695204* 1774177 11672766 13446943 0 0 17036432 3990862 21027294
17 139181 602396 46374 695204* 1908670 12518363 14427032 0 0 17774912 3990862 21765774
18 139181 602396 46374 695204* 2039450 13367835 15407285 0 0 18493356 3990862 22484218
19 139181 602396 46374 695204* 2166000 14218801 16384801 0 0 19193340 3990862 23184202
20 139181 602396 741577 0* 2287722 14408085 16695806 0 0 19005466 3990862 22996328
------ ------- ------- ------- -----
2319891 12047920 1158942 13208870 127004
THESE POLICY BENEFITS AND VALUES ARE GUARANTEED PROVIDED THE PREMIUM IS PAID
WHEN DUE.
THESE ILLUSTRATED VALUES DO NOT REFLECT ANY LOANS OR CASH SURRENDERS.
*POLICY VALUES ARE ASSUMED TO PAY A PORTION OF PREMIUM STARTING IN YEAR 11 AND
FULL PREMIUM STARTING IN YEAR 20.
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY & AFFILIATED COMPANIES
BOSTON, MA 02117
- --------------------------------------------------------------------------------
Life 1: Duane Collins Life 2: Joyce Collins A LIFE INSURANCE POLICY
Male Age 63 Female Age 62 ILLUSTRATION
Non Tobacco Use Non Tobacco Use ESTATE PROTECTION III
(Form 91-95)
Initial Billing Mode: Annual
- --------------------------------------------------------------------------------
ILLUSTRATION BASED ON GUARANTEED ASSUMPTIONS
$3,990,862 Policy with $7,411,599 Additional Insurance Protection Rider
Initial Annual Contract Premium of $695,203.63
Alternate Premium Payment Option
BASE AIP Total AIP AIP Total
Base AIP Surrender *Net GUAR Rider Cash AIP Term PUA Base Death
Contract Rider To Pay Premium CASH Cash Value Term Death Death Death Benefit
Year Premium Premium Premium Outlay VALUE Value (EOY) Cost Benefit Benefit Benefit (EOY)
---- ------- ------- ------- ------ ----- ----- ----- ---- ------- ------- ------- --------
21 139181 602396 741577 0* 2403736 14579112 16982848 0 0 18821874 3990862 22812736
22 139181 602396 741577 0* 2513445 14730409 17243854 0 0 18642190 3990862 22633052
23 139181 602396 741577 0* 2616609 14861809 17478418 0 0 18466048 3990862 22456910
24 139181 602396 741577 0* 2713347 14973911 17687258 0 0 18293114 3990862 22283976
25 139181 602396 741577 0* 2804139 15068401 17872540 0 0 18123082 3990862 22113944
------- -------- ------- -------- ------
3015799 15059900 4866829 13208870 127004
26 139181 602396 741577 0* 2889743 15147538 18037280 0 0 17955686 3990862 21946548
27 139181 602396 741577 0* 2971237 15214281 18185518 0 0 17790702 3990862 21781564
28 139181 602396 741577 0* 3049737 15271626 18321362 0 0 17627952 3990862 21618814
29 139181 602396 741577 0* 3126681 15323368 18450048 0 0 17467296 3990862 21458158
30 139181 602396 741577 0* 3203784 15373723 18577508 0 0 17308642 3990862 21299504
------- -------- ------- -------- ------
3711706 18071880 8574716 13208870 127004
31 139181 602396 741577 0* 3283043 15427653 18710696 0 0 17151944 3990862 21142806
32 139181 602396 741577 0* 3366491 15489927 18856418 0 0 16997208 3990862 20988070
33 139181 602396 741577 0* 3455767 15564242 19020008 0 0 16844484 3990862 20835346
34 139181 602396 741577 0* 3551228 15651418 19202646 0 0 16693855 3990862 20684716
35 139181 602396 741577 0* 3650960 15746575 19397536 0 0 16545404 3990862 20536266
------- -------- ------- -------- ------
4407614 21083860 12282601 13208870 127004
36 139181 602396 741577 0* 3749694 15837373 19587066 0 0 16399163 3990862 20390024
37 139181 602396 741577 0* 3838131 15902373 19740504 0 0 16255045 3990862 20245906
38 139181 602396 741577 0* 3990862 16112777 20103638 0 0 16112777 3990862 20103638
------- -------- ------- -------- ------
4825158 22891048 14507332 13208870 127004
THESE POLICY BENEFITS AND VALUES ARE GUARANTEED PROVIDED THE PREMIUM IS PAID
WHEN DUE.
THESE ILLUSTRATED VALUES DO NOT REFLECT ANY LOANS OR CASH SURRENDERS.
*POLICY VALUES ARE ASSUMED TO PAY A PORTION OF PREMIUM STARTING IN YEAR 11 AND
FULL PREMIUM STARTING IN YEAR 20.
JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY & AFFILIATED COMPANIES
BOSTON, MA 02117
- --------------------------------------------------------------------------------
Life 1: Duane Collins Life 2: Joyce Collins A LIFE INSURANCE POLICY
Male Age 63 Female Age 62 ILLUSTRATION
Non Tobacco Use Non Tobacco Use ESTATE PROTECTION III
(Form 91-95)
Initial Billing Mode: Annual
- --------------------------------------------------------------------------------
ILLUSTRATION BASED ON NON-GUARANTEED ASSUMPTIONS
Current Dividend Scale
$3,990,862 Policy with $7,411,599 Additional Insurance Protection Rider
Initial Annual Contract Premium of $695,203.63
Alternate Premium Payment Option
Dividends Applied Under AIP Rider Dividend Option
BASE AIP Total AIP AIP Total
Base AIP Annual Surrender *Net GUAR Rider Cash AIP Term PUA Base Death
Contract Rider Dividend To Pay Premium CASH Cash Value Term Death Death Death Benefit
Year Premium Premium (EOY) Premium Outlay VALUE Value (EOY) Cost Benefit Benefit Benefit (EOY)
- ---- ------- ------- -------- ------- ------- ------ ------- ------- ---- ------- ------- ------- --------
1 92808 602396 18365 0 695204 40 571060 589465 1657 6628151 1478651 3990862 12116028
2 92808 602396 38540 0 695204 90632 1186751 1315923 1582 5860492 2941514 3990862 12831407
3 92808 602396 63582 0 695204 184458 1850478 2098518 1532 5105230 4391980 3990862 13551654
4 92808 602396 91722 0 695204 281116 2568749 2941587 1480 4351971 5840444 3990862 14274998
5 92808 602396 125112 0 695204 380728 3346492 3852332 1474 3595610 7292008 3990862 15003592
------ ------- ------ ------ ------- ----
464038 3011980 337321 0 3476018 7725
6 92808 602396 159849 O 695204 482814 4190641 4833305 1413 2826789 8756033 3990862 15733532
7 92808 602396 199120 0 695204 586816 5103807 5889743 1268 2045268 10232758 3990862 16468007
8 92808 602396 218130 695204 0* 692814 5424338 6335281 1949 2531231 10441999 3990862 17182222
9 92808 602396 239165 695204 0* 800367 5772899 6812432 2991 2990944 10677491 3990862 17898462
10 92808 602396 261870 695204 0* 909278 6152001 7323150 4314 3423423 10940215 3990862 18616370
------ ------- ------- ------- ------- -----
928076 6023960 1415456 2085611 4866425 19660
11 139181 602396 311833 741577 0* 1057379 6502486 7871698 6651 3912274 11146567 3990862 19361538
12 139181 602396 344573 741577 0* 1204921 6904451 8453945 10130 4328884 11425162 3990862 20089480
13 139181 602396 379995 741577 0* 1351106 7340834 9071935 12792 4010180 11743866 3990862 20124904
14 139181 602396 417799 741577 0* 1495057 7813394 9726249 15732 3650095 12103951 3990862 20162706
15 139181 602396 457687 741577 0* 1636213 8324053 10417953 18673 3247407 12506639 3990862 20202594
------- ------- ------- ------- ------- -----
1623984 9035940 3327343 5793498 4866425 83637
16 139181 602396 498871 741577 0* 1774177 8875109 11148157 21258 2800802 12953245 3990862 20243780
17 139181 602396 541067 741577 0* 1908670 9468846 11918583 22838 2309165 13444881 3990862 20285974
18 139181 602396 584302 741577 0* 2039450 10107884 12731636 22575 1770578 13983468 3990862 20329210
19 139181 602396 628345 741577 0* 2166000 10795716 13590061 19221 1181379 14572667 3990862 20373254
20 139181 602396 674440 741577 0* 2287722 11536870 14499032 11019 535952 15218094 3990862 20419348
------- -------- ------- ------- ------- ------
2319891 12047920 6254368 9501385 4866425 180548
REFER TO "ILLUSTRATION BASED ON GUARANTEED ASSUMPTIONS" PAGE FOR GUARANTEED
VALUES AND BENEFITS AND OTHER IMPORTANT INFORMATION.
THESE ILLUSTRATED VALUES DO NOT REFLECT ANY LOANS OR CASH SURRENDERS.
*NON-GUARANTEED POLICY VALUES ARE ASSUMED TO PAY FULL PREMIUM STARTING IN
YEAR 8.
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY & AFFILIATED COMPANIES
BOSTON, MA 02117
- --------------------------------------------------------------------------------
Life 1: Duane Collins Life 2: Joyce Collins A LIFE INSURANCE POLICY
Male Age 63 Female Age 62 ILLUSTRATION
Non Tobacco Use Non Tobacco Use ESTATE PROTECTION III
(Form 91-95)
Initial Billing Mode: Annual
- --------------------------------------------------------------------------------
ILLUSTRATION BASED ON NON-GUARANTEED ASSUMPTIONS
Current Dividend Scale
$3,990,862 Policy with $7,411,599 Additional Insurance Protection Rider
Initial Annual Contract Premium of $695,203.63
Alternate Premium Payment Option
Dividends Applied Under AIP Rider Dividend Option
BASE AIP Total AIP AIP Total
Base AIP Annual Surrender *Net GUAR Rider Cash AIP Term PUA Base Death
Contract Rider Dividend To Pay Premium CASH Cash Value Term Death Death Death Benefit
Year Premium Premium (EOY) Premium Outlay VALUE Value (EOY) Cost Benefit Benefit Benefit (EOY)
- ---- ------- ------- -------- ------- ------- ------ ------- ------- ---- ------- ------- ------- --------
21 139181 602396 722140 741577 0* 2403736 12334579 15460455 0 0 15924145 3990862 20637146
22 139181 602396 774405 741577 0* 2513445 13177391 16465241 0 0 16676755 3990862 21442022
23 139181 602396 828132 741577 0* 2616609 14068757 17513498 0 0 17480668 3990862 22299662
24 139181 602396 882481 741577 0* 2713347 15009590 18605418 0 0 18336702 3990862 23210046
25 139181 602396 934811 741577 0* 2804139 16001023 19739974 0 0 19244766 3990862 24170440
------- -------- -------- ------- ------- ------
3015799 15059900 10396337 13209270 4866425 180548
26 139181 602396 985521 741577 0* 2889743 17042280 20917546 0 0 20201686 3990862 25178070
27 139181 602396 1033968 741577 0* 2971237 18134064 22139268 0 0 21204928 3990862 26229758
28 139181 602396 1080243 741577 0* 3049737 19276918 23406896 0 0 22251238 3990862 27322342
29 139181 602396 1124631 741577 0* 3126681 20473064 24724374 0 0 23337498 3990862 28452990
30 139181 602396 1173804 741577 0* 3203784 21726368 26103956 0 0 24460822 3990862 29625488
------- -------- -------- -------- -------- ------
3711706 18071880 15794504 16917156 4866425 180548
31 139181 602396 1222700 741577 0* 3283043 23049504 27555246 0 0 25625662 3990862 30839224
32 139181 602396 1273865 741577 0* 3366491 24451020 29091376 0 0 26830280 3990862 32095006
33 139181 602396 1330411 741577 0* 3455767 25941544 30727720 0 0 28075376 3990862 33396648
34 139181 602396 1398951 741577 0* 3551228 27530936 32481116 0 0 29364588 3990862 34754400
35 139181 602396 1480715 741577 0* 3650960 29225636 34357312 0 0 30708264 3990862 36179840
------- -------- -------- -------- -------- ------
4407614 21083860 22501144 20625046 4866425 180548
36 139181 602396 1572264 741577 0* 3749694 31017584 36339540 0 0 32117854 3990862 37680980
37 139181 602396 1651951 741577 0* 3838131 32872742 38362824 0 0 33601772 3990862 39244584
38 139181 602396 1284542 741577 0* 3990862 35148092 40423492 0 0 35148092 3990862 40423492
------- -------- -------- -------- -------- ------
4825158 22891048 27009900 22849780 4866425 180548
REFER TO "ILLUSTRATION BASED ON GUARANTEED ASSUMPTIONS" PAGE FOR
GUARANTEED VALUES AND BENEFITS AND OTHER IMPORTANT INFORMATION.
THESE ILLUSTRATED VALUES DO NOT REFLECT ANY LOANS OR CASH
SURRENDERS.
"NON-GUARANTEED POLICY VALUES ARE ASSUMED TO PAY FULL PREMIUM
STARTING IN YEAR 8.
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY & AFFILIATED COMPANIES
BOSTON, MA 02117
ESTATE PROTECTION III - A SURVIVORSHIP WHOLE LIFE INSURANCE POLICY
SUPPLEMENTAL EXPLANATION
The Supplemental Illustration pages which follow are designed to show additional
concepts not included in your Basic Illustration.
Non- Values and benefits illustrated on Supplemental pages are
Guaranteed based on non-guaranteed elements which are subject
Values to change by the insurer. Actual results may be more or less
favorable than shown.
Guaranteed Please refer to your Basic Illustration for guaranteed
Values elements and benefits, and other important information.
Payments Premiums are assumed paid at the beginning of each year.
and Values Policy values, including cash values and death benefits, are
illustrated as of the end of the year (EOY) unless otherwise
indicated.
Accessing While not reflected in your Basic Illustration, this policy
Policy allows you to access cash values through policy loans and
Values partial surrenders. If requested, the effect of these
transactions on your policy benefits and values will be
reflected in your Supplemental Illustration.
Policy Policy loans may be taken against cash value after the first
Loans policy year. Policy loans, if illustrated, are assumed taken
at the beginning of the year. Loan interest is payable in
arrears. This illustration assumes a policy loan interest rate
of 7.25%. The loan interest rate is variable and subject to
change annually on the policy anniversary. Policy loans do not
affect dividends.
Surrenders Partial surrenders may be made of the cash value of paid-up
insurance. Surrenders may impact your policy's cash value,
death benefit and/or planned premium payment schedule.
Surrender These columns on your Supplemental Illustration pages will
Amount and reflect any illustrated surrenders, policy loans and/or loan
Net Outlay interest due.
Net Cash Net Cash Value is the cash value available upon policy
Value surrender. This value will reflect any illustrated surrenders,
policy loans and/or interest due. Cash values are illustrated
as of the end of the year (EOY) unless otherwise indicated.
Net Death Net Death Benefit is the benefit payable upon the death of the
Benefit surviving insured. This value will reflect any illustrated
surrenders, policy loans and/or interest due. Death Benefits
are illustrated as of the end of the year (EOY) unless
otherwise indicated.
Tax We suggest that you seek professional counsel regarding the
Considerations interpretation of current tax laws and accounting practices as
they relate to your actual situation.
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE CO & AFFILIATED COMPANIES
BOSTON, MA 02117
ESTATE PROTECTION III - A SURVIVORSHIP WHOLE LIFE INSURANCE POLICY
Life 1: Duane Collins Life 2: Joyce Collins
Male Age 63 Non Tobacco Use Female Age 62 Non Tobacco Use
SUMMARY OF POLICY VALUES
Current Dividend Scale
$3,990,862 Policy with $7,411,599 Additional Insurance Protection Rider
Alternate Premium Payment Option
Dividends Applied Under AIP Rider Dividend Option
Age Age Net Net Cash Net Death
Year #1 #2 Outlay Value Benefit
---- --- --- ------ -------- ---------
1 64 63 695204 589465 12116029
2 65 64 695204 1315923 12831409
3 66 65 695204 2098518 13551654
4 67 66 695204 2941587 14274998
5 68 67 695204 3852332 15003590
--------
3476018
6 69 68 695204 4833305 15733532
7 70 69 695204 5889743 16468008
8 71 70 0 6335282 17182220
9 72 71 0 6812432 17898460
10 73 72 0 7323150 18616372
--------
4866425
11 74 73 0 7871698 19361536
12 75 74 0 8453945 20089480
13 76 75 0 9071935 20124904
14 77 76 0 9726248 20162708
15 78 77 0 10417953 20202596
--------
4866425
16 79 78 -4845976 5943711 12747037
17 80 79 0 6330139 12769425
18 81 80 0 6730635 12791823
19 82 81 0 7143771 12813667
20 83 82 0 7569047 12835850
--------
20449
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE CO & AFFILIATED COMPANIES
BOSTON, MA 02117
ESTATE PROTECTION III - A SURVIVORSHIP WHOLE LIFE INSURANCE POLICY
Life 1: Duane Collins Life 2: Joyce Collins
Male Age 63 Non Tobacco Use Female Age 62 Non Tobacco Use
SUMMARY OF POLICY VALUES
Current Dividend Scale
$3,990,862 Policy with $7,411,599 Additional Insurance Protection Rider
Alternate Premium Payment Option
Dividends Applied Under AIP Rider Dividend Option
Age Age Net Net Cash Net Death
Year #1 #2 Outlay Value Benefit
---- --- --- ------ -------- ---------
21 84 83 0 8005257 12857649
22 85 84 0 8455673 12881585
23 86 85 0 8923316 12906068
24 87 86 0 9413060 12930758
25 88 87 0 9931388 12954582
-----
20449
26 89 88 0 10489487 12978330
27 90 89 0 11070959 13371308
28 91 90 0 11671933 13857338
29 92 91 0 12294386 14360420
30 93 92 0 12944961 14882542
-----
20449
31 94 93 0 13628695 15423297
32 95 94 0 14352396 15983014
33 96 95 0 15124049 16563754
34 97 96 0 15952207 17170986
35 98 97 0 16839490 17810834
-----
20449
36 99 98 0 17776530 18487410
37 100 99 0 18728770 19193498
38 101 100 0 19694324 19694324
-----
20449
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE CO & AFFILIATED COMPANIES
BOSTON, MA 02117
ESTATE PROTECTION III - A SURVIVORSHIP WHOLE LIFE INSURANCE POLICY
Life 1: Duane Collins Life 2: Joyce Collins
Male Age 63 Non Tobacco Use Female Age 62 Non Tobacco Use
SUMMARY OF POLICY VALUES
Current Dividend Scale
$3,990,862 Policy with $7,411,599 Additional Insurance Protection Rider
Alternate Premium Payment Option
Dividends Applied Under AIP Rider Dividend Option
AIP AIP AIP
GUAR Rider Net AIP Term PUA Net
Annual Annual Surrender Net CASH Cash Cash Term Death Death Death
Yr Premium Dividend Amount Outlay VALUE Value Value Cost Benefit Benefit Benefit
- -- ------- -------- --------- ------- ------ ------- ------- ----- ------- ------- -------
1 695204 18365 0 695204 40 571060 589465 1657 6628151 1478651 12116029
2 695204 38540 0 695204 90632 1186751 1315923 1582 5860492 2941514 12831409
3 695204 63582 0 695204 184458 1850478 2098518 1532 5105230 4391980 13551654
4 695204 91722 0 695204 281116 2568749 2941587 1480 4351971 5840444 14274998
5 695204 125112 0 695204 380728 3346492 3852332 1474 3595610 7292008 15003590
------- ------ ------- ------- ----
3476018 337321 0 3476018 7725
6 695204 159849 0 695204 482814 4190641 4833305 1413 2826789 8756033 15733532
7 695204 199120 0 695204 586816 5103807 5889743 1268 2045268 10232758 16468008
8 695204 218130 695204 0 692814 5424338 6335282 1949 2531231 10441999 17182220
9 695204 239165 695204 0 800367 5772899 6812432 2991 2990944 10677491 17898460
10 695204 261870 695204 0 909278 6152001 7323150 4314 3423423 10940215 18616372
------- ------- ------- -------- -----
6952036 1415456 2085611 4866425 19660
11 741577 311833 741577 0 1057379 6502486 7871698 6651 3912274 11146567 19361536
12 741577 344573 741577 0 1204921 6904451 8453945 10130 4328884 11425162 20089480
13 741577 379995 741577 0 1351106 7340834 9071935 12792 4010180 11743866 20124904
14 741577 417799 741577 0 1495057 7813394 9726248 15732 3650095 12103951 20162708
15 741577 457687 741577 0 1636213 8324053 10417953 18673 3247407 12506639 20202596
-------- ------- ------- -------- -----
10659921 3327343 5793498 4866425 83637
16 741577 283064 5587554 -4845976 1774177 3886469 5943711 21258 2800802 5672311 12747037
17 741577 305451 741577 0 1908670 4116019 6330139 25998 2628749 5844364 12769425
18 741577 327848 741577 0 2039450 4363337 6730635 31069 2436777 6036336 12791823
19 741577 349693 741577 0 2166000 4628078 7143771 36215 2225873 6247241 12813667
20 741577 371875 741577 0 2287722 4909451 7569047 41061 1997138 6475975 12835850
-------- ------- -------- -------- ------
14367806 4965274 14347360 20449 239239
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE CO & AFFILIATED COMPANIES
BOSTON, MA 02117
ESTATE PROTECTION III - A SURVIVORSHIP WHOLE LIFE INSURANCE POLICY
Life 1: Duane Collins Life 2: Joyce Collins
Male Age 63 Non Tobacco Use Female Age 62 Non Tobacco Use
SUMMARY OF POLICY VALUES
Current Dividend Scale
$3,990,862 Policy with $7,411,599 Additional Insurance Protection Rider
Alternate Premium Payment Option
Dividends Applied Under AIP Rider Dividend Option
AIP AIP AIP
GUAR Rider Net AIP Term PUA Net
Annual Annual Surrender Net CASH Cash Cash Term Death Death Death
Yr Premium Dividend Amount Outlay VALUE Value Value Cost Benefit Benefit Benefit
- -- ------- -------- --------- ------ ------- ------- ------- ----- ------- ------- -------
21 741577 393674 741577 0 2403736 5207848 8005257 45107 1749696 6723417 12857649
22 741577 417609 741577 0 2513445 5524620 8455673 46664 1481386 6991728 12881585
23 741577 442094 741577 0 2616609 5864614 8923316 45207 1186232 7286882 12906068
24 741577 466784 741577 0 2713347 6232930 9413060 39193 858556 7614558 12930758
25 741577 490609 741577 0 2804139 6636641 9931388 26808 491086 7982027 12954582
-------- ------- -------- ----- ------
18075692 7176043 18055246 20449 442218
26 741577 514355 741577 0 2889743 7085389 10489487 4799 74189 8398924 12978330
27 741577 536797 741577 0 2971237 7562926 11070959 0 0 8843649 13371308
28 741577 557878 741577 0 3049737 8064319 11671933 0 0 9308598 13857338
29 741577 577660 741577 0 3126681 8590045 12294386 0 0 9791898 14360420
30 741577 599955 741577 0 3203784 9141221 12944961 0 0 10291724 14882542
-------- ------- -------- ----- ------
21783582 9962687 21763136 20449 447017
31 741577 621945 741577 0 3283043 9723708 13628695 0 0 10810491 15423297
32 741577 644942 741577 0 3366491 10340961 14352396 0 0 11347211 15983014
33 741577 670706 741577 0 3455767 10997576 15124049 0 0 11902186 16563754
34 741577 702693 741577 0 3551228 11698286 15952207 0 0 12477431 17170986
35 741577 741498 741577 0 3650960 12447032 16839490 0 0 13078475 17810834
-------- -------- -------- ----- ------
25491472 13344471 25471026 20449 447017
36 741577 785202 741577 0 3749694 13241634 17776530 0 0 13711347 18487410
37 741577 822351 741577 0 3838131 14068287 18728770 0 0 14380284 19193498
38 741577 624858 741577 0 3990862 15078605 19694324 0 0 15078605 19694324
-------- -------- -------- ----- ------
27716206 15576882 27695760 20449 447017
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE CO & AFFILIATED COMPANIES BOSTON, MA 02117
ESTATE PROTECTION III - A SURVIVORSHIP WHOLE LIFE INSURANCE POLICY
Parker Hannifin Tax Bracket: ER 36% EE 50%
Life 1: Duane Collins Life 2: Joyce Collins
Male Age 63 Non Tobacco Use Female Age 62 Non Tobacco Use
SPLIT DOLLAR PROPOSAL SUMMARY OF COSTS AND BENEFITS
Current Dividend Scale
$3,990,862 Policy with $7,411,599 Additional Insurance Protection Rider
Alternate Premium Payment Option
Dividends Applied Under AIP Rider Dividend Option
-------------EMPLOYER------------- ------------EMPLOYEE------------
Net Net
Age Age After Tax Net Cash Net Death After Tax Net Cash Net Death
Year #1 #2 Outlay Value Benefit Outlay Value Benefit
---- --- --- --------- -------- ---------- --------- -------- ---------
1 64 63 697344 589465 687561 0 0 11428468
2 65 64 697741 1315923 1373701 0 0 11457707
3 66 65 698216 2058147 2058147 0 40371 11493508
4 67 66 698779 2740580 2740580 0 201007 11534418
5 68 67 699455 3420599 3420599 0 431733 11582992
--------- ---------
3491536 0
6 69 68 700261 4097741 4097741 0 735564 11635792
7 70 69 701222 4771450 4771450 0 1118294 11696558
8 71 70 17283 4771450 4771450 0 1563832 12410770
9 72 71 21641 4771450 4771450 0 2040982 13127010
10 73 72 27018 4771450 4771450 0 2551700 13844922
--------- ---------
4958960 0
11 74 73 33699 4771450 4771450 0 3100249 14590086
12 75 74 41873 4771450 4771450 0 3682496 15318030
13 76 75 49660 4771450 4771450 0 4300486 15353454
14 77 76 58877 4771450 4771450 0 4954799 15391258
15 78 77 69782 4771450 4771450 0 5646504 15431146
--------- ---------
5212851 0
16 79 78 -4845976 0 0 0 5943711 12747038
17 80 79 0 0 0 0 6330139 12769425
18 81 80 0 0 0 0 6730635 12791823
19 82 81 0 0 0 0 7143771 12813667
20 83 82 0 0 0 0 7569047 12835850
--------- ---------
366875 0
This illustration may not fully reflect your actual tax or accounting
situation. Surrender of any available policy values may be regarded as a
taxable event. We recommend consulting tax counsel.
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE CO & AFFILIATED COMPANIES BOSTON, MA 02117
ESTATE PROTECTION III - A SURVIVORSHIP WHOLE LIFE INSURANCE POLICY
Parker Hannifin Tax Bracket: ER 36% EE 50%
Life 1: Duane Collins Life 2: Joyce Collins
Male Age 63 Non Tobacco Use Female Age 62 Non Tobacco Use
SPLIT DOLLAR PROPOSAL SUMMARY OF COSTS AND BENEFITS
Current Dividend Scale
$3,990,862 Policy with $7,411,599 Additional Insurance Protection Rider
Alternate Premium Payment Option
Dividends Applied Under AIP Rider Dividend Option
-------------EMPLOYER------------- ------------EMPLOYEE------------
Net Net
Age Age After Tax Net Cash Net Death After Tax Net Cash Net Death
Year #1 #2 Outlay Value Benefit Outlay Value Benefit
---- --- --- --------- -------- ---------- --------- -------- ---------
21 84 83 0 0 0 0 8005257 12857648
22 85 84 0 0 0 0 8455673 12881585
23 86 85 0 0 0 0 8923316 12906068
24 87 86 0 0 0 0 9413060 12930758
25 88 87 0 0 0 0 9931388 12954582
-------- ---------
366875 0
26 89 88 0 0 0 0 10489487 12978330
27 90 89 0 0 0 0 11070959 13371307
28 91 90 0 0 0 0 11671934 13857338
29 92 91 0 0 0 0 12294386 14360420
30 93 92 0 0 0 0 12944961 14882542
-------- ---------
366875 0
31 94 93 0 0 0 0 13628695 15423297
32 95 94 0 0 0 0 14352395 15983015
33 96 95 0 0 0 0 15124049 16563754
34 97 96 0 0 0 0 15952207 17170986
35 98 97 0 0 0 0 16839490 17810834
-------- ---------
366875 0
36 99 98 0 0 0 0 17776530 18487410
37 100 99 0 0 0 0 18728770 19193498
38 101 100 0 0 0 0 19694324 19694324
-------- ---------
366875 0
This illustration may not fully reflect your actual tax or accounting
situation. Surrender of any available policy values may be regarded as a
taxable event. We recommend consulting tax counsel.
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE CO & AFFILIATED COMPANIES BOSTON, MA 02117
ESTATE PROTECTION III - A SURVIVORSHIP WHOLE LIFE INSURANCE POLICY
Parker Hannifin Tax Bracket: ER 36% EE 50%
Life 1: Duane Collins Life 2: Joyce Collins
Male Age 63 Non Tobacco Use Female Age 62 Non Tobacco Use
SPLIT DOLLAR PROPOSAL
Current Dividend Scale
$3,990,862 Policy with $7,411,599 Additional Insurance Protection Rider
Alternate Premium Payment Option
Dividends Applied Under AIP Rider Dividend Option
------------------------------------EMPLOYER SUMMARY-------------------------------------
Net Payback
Tax After Tax at Net Cash Net Death
Year Outlay Bonus Credit Outlay Rollout Value Benefit
---- ------ ------ ------ --------- ------- -------- ---------
1 687561 15286 5503 697344 0 589465 687561
2 686140 18127 6526 697741 0 1315923 1373701
3 684446 21516 7746 698216 0 2058147 2058147
4 682433 25541 9195 698779 0 2740580 2740580
5 680019 30370 10933 699455 0 3420599 3420599
------- ------ ------ -------- -------
3420599 110839 39902 3491536 0
6 677142 36124 13005 700261 0 4097741 4097741
7 673709 42989 15476 701222 0 4771450 4771450
8 0 27004 9722 17283 0 4771450 4771450
9 0 33814 12173 21641 0 4771450 4771450
10 0 42215 15197 27018 0 4771450 4771450
------- ------ ------ -------- -------
4771450 292985 105475 4958960 0
11 0 52655 18956 33699 0 4771450 4771450
12 0 65427 23554 41873 0 4771450 4771450
13 0 77594 27934 49660 0 4771450 4771450
14 0 91995 33118 58877 0 4771450 4771450
15 0 109035 39253 69782 0 4771450 4771450
------- ------ ------ -------- -------
4771450 689690 248289 5212851 0
16 0 0 0 -4845976 4845976 0 0
17 0 0 0 0 0 0 0
18 0 0 0 0 0 0 0
19 0 0 0 0 0 0 0
20 0 0 0 0 0 0 0
------- ------ ------ -------- -------
4771450 689690 248289 366875 4845976
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE CO & AFFILIATED COMPANIES BOSTON, MA 02117
ESTATE PROTECTION III - A SURVIVORSHIP WHOLE LIFE INSURANCE POLICY
Parker Hannifin Tax Bracket: ER 36% EE 50%
Life 1: Duane Collins Life 2: Joyce Collins
Male Age 63 Non Tobacco Use Female Age 62 Non Tobacco Use
SPLIT DOLLAR PROPOSAL
Current Dividend Scale
$3,990,862 Policy with $7,411,599 Additional Insurance Protection Rider
Alternate Premium Payment Option
Dividends Applied Under AIP Rider Dividend Option
----------------------------EMPLOYER SUMMARY----------------------------
Net Payback
Tax After Tax at Net Cash Net Death
Year Outlay Bonus Credit Outlay Rollout Value Benefit
---- ------- ------ ------ --------- ------- -------- ---------
21 0 0 0 0 0 0 0
22 0 0 0 0 0 0 0
23 0 0 0 0 0 0 0
24 0 0 0 0 0 0 0
25 0 0 0 0 0 0 0
------- ------ ------ --------- -------
4771450 689690 248289 366875 4845976
26 0 0 0 0 0 0 0
27 0 0 0 0 0 0 0
28 0 0 0 0 0 0 0
29 0 0 0 0 0 0 0
30 0 0 0 0 0 0 0
------- ------ ------ --------- -------
4771450 689690 248289 366875 4845976
31 0 0 0 0 0 0 0
32 0 0 0 0 0 0 0
33 0 0 0 0 0 0 0
34 0 0 0 0 0 0 0
35 0 0 0 0 0 0 0
------- ------ ------ --------- -------
4771450 689690 248289 366875 4845976
36 0 0 0 0 0 0 0
37 0 0 0 0 0 0 0
38 0 0 0 0 0 0 0
------- ------ ------ --------- -------
4771450 689690 248289 366875 4845976
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE CO & AFFILIATED COMPANIES BOSTON, MA 02117
ESTATE PROTECTION III - A SURVIVORSHIP WHOLE LIFE INSURANCE POLICY
Parker Hannifin Tax Bracket: ER 36% EE 50%
Life 1: Duane Collins Life 2: Joyce Collins
Male Age 63 Non Tobacco Use Female Age 62 Non Tobacco Use
SPLIT DOLLAR PROPOSAL
Current Dividend Scale
$3,990,862 Policy with $7,411,599 Additional Insurance Protection Rider
Alternate Premium Payment Option
Dividends Applied Under AIP Rider Dividend Option
--------------------------------------EMPLOYEE SUMMARY-------------------------------------------
Add'l Amt Payback Net
Economic Surren- at Tax On After Tax Net Cash Net Death
Year Outlay Benefit Bonus dered Rollout Benefit Outlay Value Benefit
---- ------ -------- ------ --------- ------- ------- --------- -------- ---------
1 7643 7643 15286 0 0 7643 0 0 11428468
2 9063 9063 18127 0 0 9063 0 0 11457707
3 10758 10758 21516 0 0 10758 0 40371 11493508
4 12771 12771 25541 0 0 12771 0 201007 11534418
5 15185 15185 30370 0 0 15185 0 431733 11582992
------ ------ --------- ------- ------- ---------
55419 110839 0 0 55419 0
6 18062 18062 36124 0 0 18062 0 735564 11635792
7 21495 21495 42989 0 0 21495 0 1118294 11696558
8 0 27004 27004 0 0 27004 0 1563832 12410770
9 0 33814 33814 0 0 33814 0 2040982 13127010
10 0 42215 42215 0 0 42215 0 2551700 13844922
------ ------ --------- ------- ------- ---------
94976 292985 0 0 198009 0
11 0 52655 52655 0 0 52655 0 3100249 14590086
12 0 65427 65427 0 0 65427 0 3682496 15318030
13 0 77594 77594 0 0 77594 0 4300486 15353454
14 0 91995 91995 0 0 91995 0 4954799 15391258
15 0 109035 109035 0 0 109035 0 5646504 15431146
------ ------ --------- ------- ------- ---------
94976 689690 0 0 594715 0
16 0 0 0 4845976 4845976 0 0 5943711 12747038
17 0 0 0 0 0 0 0 6330139 12769425
18 0 0 0 0 0 0 0 6730635 12791823
19 0 0 0 0 0 0 0 7143771 12813667
20 0 0 0 0 0 0 0 7569047 12835850
------ ------ --------- ------- ------- ---------
94976 689690 4845976 4845976 594715 0
While both insureds are alive, economic benefit has been
calculated using IRS Table 38 rates. After the first death,
economic benefit has been calculated using the lesser each year
of John Hancock's 3-year term rate and the IRS PS 58 rate.
- --------------------------------------------------------------------------------
JOHN HANCOCK MUTUAL LIFE INSURANCE CO & AFFILIATED COMPANIES BOSTON, MA 02117
ESTATE PROTECTION III - A SURVIVORSHIP WHOLE LIFE INSURANCE POLICY
Parker Hannifin Tax Bracket: ER 36% EE 50%
Life 1: Duane Collins Life 2: Joyce Collins
Male Age 63 Non Tobacco Use Female Age 62 Non Tobacco Use
SPLIT DOLLAR PROPOSAL
Current Dividend Scale
$3,990,862 Policy with $7,411,599 Additional Insurance Protection Rider
Alternate Premium Payment Option
Dividends Applied Under AIP Rider Dividend Option
-------------------------------------------EMPLOYEE SUMMARY-----------------------------------------
Add'l Amt Payback Net
Economic Surren- at Tax On After Tax Net Cash Net Death
Year Outlay Benefit Bonus dered Rollout Benefit Outlay Value Benefit
---- ------ -------- ------ -------- ------- ------ --------- -------- ---------
21 0 0 0 0 0 0 0 8005257 12857648
22 0 0 0 0 0 0 0 8455673 12881585
23 0 0 0 0 0 0 0 8923316 12906068
24 0 0 0 0 0 0 0 9413060 12930758
25 0 0 0 0 0 0 0 9931388 12954582
------ ------ -------- ------- ------ ---------
94976 689690 4845976 4845976 594715 0
26 0 0 0 0 0 0 0 10489487 12978330
27 0 0 0 0 0 0 0 11070959 13371307
28 0 0 0 0 0 0 0 11671934 13857338
29 0 0 0 0 0 0 0 12294386 14360420
30 0 0 0 0 0 0 0 12944961 14882542
------ ------ -------- ------- ------ ---------
94976 689690 4845976 4845976 594715 0
31 0 0 0 0 0 0 0 13628695 15423297
32 0 0 0 0 0 0 0 14352395 15983015
33 0 0 0 0 0 0 0 15124049 16563754
34 0 0 0 0 0 0 0 15952207 17170986
35 0 0 0 0 0 0 0 16839490 17810834
------ ------ -------- ------- ------ ---------
94976 689690 4845976 4845976 594715 0
36 0 0 0 0 0 0 0 17776530 18487410
37 0 0 0 0 0 0 0 18728770 19193498
38 0 0 0 0 0 0 0 19694324 19694324
------ ------ -------- ------- ------ ---------
94976 689690 4845976 4845976 594715 0
While both insureds are alive, economic benefit has been
calculated using IRS Table 38 rates. After the first death,
economic benefit has been calculated using the lesser each year
of John Hancock's 3-year term rate and the IRS PS 58 rate.
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JOHN HANCOCK MUTUAL LIFE INSURANCE CO & AFFILIATED COMPANIES BOSTON, MA 02117
ESTATE PROTECTION III - A SURVIVORSHIP WHOLE LIFE INSURANCE POLICY
Life 1: Duane Collins Life 2: Joyce Collins
Male Age 63 Non Tobacco Use Female Age 62 Non Tobacco Use
Owner: Parker Hannifin
Tax Bracket: 50%
PLAN SUMMARY
Current Dividend Scale
$11,402,460 Initial Death Benefit: $3,990,862 Base with $7,411,599 AIP Rider
Alternate Premium Payment Option
Dividends Applied Under AIP Rider Dividend Option
In 10 Years In 20 Years In 23 Years
Cumulative Net A/T Outlay 4,866,425 20,449 20,449
GUARANTEED CASH VALUE 909,278 2,287,722 2,616,609
Net Cash Value 7,323,150 7,569,047 8,923,316
Net Death Benefit 18,616,372 12,835,850 12,906,068
INTEREST ADJUSTED INDEXES (5%)
Base Policy with AIP Rider
10 Year 20 Year
Interest Adjusted Payment 46.40 35.72
Interest Adjusted Cost -1.96 -7.17
Equivalent Level Dividend 0.00 0.00
NON- Dividends are based on the Company's experience and are not
GUARANTEED guaranteed.
ELEMENTS
INTEREST These indexes provide a means for evaluating the comparative cost
ADJUSTED of the policy under stated assumptions. They can be useful in
INDEXES comparing similar plans of insurance, a lower index being better
than a higher one. These indexes reflect the time value of money.
Indexes are approximate because they involve assumptions,
including the rate of interest used, the dividends being paid in
cash and the continuation of current dividend scales. An
explanation of the intended use of these indexes and the
Equivalent Level Annual Dividend is included in the Life Insurance
Buyer's Guide.
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