14. Executive Benefit Agreement, Employee Savings Plans and Collective Bargaining Agreements

We are party to death benefit agreement (“2005 Agreement”) with Jack E. Golsen, who retired as discussed in Note 15-Related Party Transactions.

The 2005 Agreement provides that, upon Mr. Golsen’s death, we will pay to the designated beneficiary, a lump-sum payment of $2,500,000 to be funded from the net proceeds received by us under certain life insurance policies on his life that are owned by us. We are obligated to keep in existence life insurance policies with a total face amount of no less than $2,500,000 of the stated death benefit.

	December 31,
	2018		2017
	(In Thousands)
Total undiscounted death benefit	$	2,500	$	2,424
Total accrued death benefit	$	2,585	$	2,533

	December 31,
	2018		2017		2016
	(In Thousands)
Costs (recovery of costs) associated with executive benefit included in SG&A, net (1)	$	17	$	9	$	(341	)

(1)

During 2016, the employment of certain executives were terminated, resulting in the forfeiture of the respective benefits. As a result of this event, the accrual for this estimated benefit was derecognized resulting in a net recovery of costs associated with certain executive benefits.

The accrued executive benefit under the 2005 Agreement is included in noncurrent accrued and other liabilities. We accrue for such liabilities when they become probable and discount the liabilities to their present value.

To assist us in funding the 2005 Agreement and for other business reasons, we purchased life insurance policies on various individuals in which we are the beneficiary. Some of these life insurance policies have cash surrender values that we have borrowed against. The net cash surrender values of these policies are included in other assets.

14. Executive Benefit Agreement, Employee Savings Plans and Collective Bargaining Agreements (continued)

The following table summarizes certain information about these life insurance policies.

	December 31,
	2018			2017
	(In Thousands)
Total face value of life insurance policies	$	4,500		$	4,500

Total cash surrender values of life insurance policies	$	1,656		$	1,804
Loans on cash surrender values		(1,559	)		(1,482	)
Net cash surrender values	$	97		$	322

	2018		2017		2016
	(In Thousands)
Cost of life insurance premiums	$	54	$	14	$	481
Decreases (increases) in cash surrender values		149		162		(51	)
Net cost of life insurance premiums included in SG&A	$	203	$	176	$	430

Employee Savings Plans - We sponsor a savings plan under Section 401(k) of the Internal Revenue Code under which participation is available to substantially all full-time employees. We do not presently contribute to this plan except for certain employees, which amounts were not material for each of the three years ended December 31, 2018. Beginning in January 2019, we will begin matching 50% of an employee’s contribution, up to 6%, for substantially all full-time employees.

Collective Bargaining Agreements - As of December 31, 2018, we employed 576 persons, 193 of whom are represented by unions under agreements, which will expire in July of 2019 through July of 2021.