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

We are party to a death benefit agreement (“2005 Agreement”) with Jack E. Golsen, who retired as discussed in Note 14-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,
	2019		2018
	(In Thousands)
Total undiscounted death benefit	$	2,500	$	2,500
Total accrued death benefit	$	2,564	$	2,585

Costs associated with these death benefits were not material for 2019, 2018 and 2017.

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.

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

	December 31,
	2019			2018
	(In Thousands)
Total face value of life insurance policies	$	4,500		$	4,500

Total cash surrender values of life insurance policies	$	1,727		$	1,656
Loans on cash surrender values		(1,629	)		(1,559	)
Net cash surrender values	$	98		$	97

	2019			2018		2017
	(In Thousands)
Cost of life insurance premiums	$	215		$	54	$	14
Decreases (increases) in cash surrender values		(70	)		149		162
Net cost of life insurance premiums included in SG&A	$	145		$	203	$	176

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. Beginning in January 2019, we began matching 50% of an employee’s contribution, up to 6%, for substantially all full-time employees. Prior to 2019, we did not contribute to this plan except for certain employees. The amounts contributed to this plan were not material for 2019, 2018 and 2017.

Collective Bargaining Agreements - As of December 31, 2019, we employed 593 persons, 162 of whom are represented by unions under agreements, including agreements being negotiated, that expire in July 2021 through November 2022.