SPLIT-DOLLAR AGREEMENT
Exhibit 10.22
THIS AGREEMENT is made and entered into this 1st day of March, 1997 by and among Reliv
International, Inc., an Illinois corporation, with its principal offices and place of business at
000 Xxxxxxxxxxxx Xxxxxxxxxx Xxxxxxxxx, Xxxxxxxxxxxx, Xxxxxxxx 00000 (hereinafter referred to as the
“Company”) and Xxxx X. Xxxxxxxx, an individual residing in Glenco, Missouri (hereinafter referred
to as the “Executive”).
3. Election of Settlement Option and Beneficiary. The Executive may select the
settlement option for payment of the death benefit provided under the Policy and the beneficiary or
beneficiaries to receive the portion of the Policy proceeds to which the Executive is entitled
hereunder, by specifying the same in a written notice to the Company. Upon receipt of such notice,
the Company shall execute and deliver to the Insurer the forms necessary to elect the
requested settlement option and to designate the requested persons, persons or entity as the
beneficiary or beneficiaries to receive the death proceeds of the Policy in excess of the amount to
which the Company is entitled hereunder. The parties do agree to take all action necessary to
cause the beneficiary designation and settlement election provisions of the Policy to conform to
the provisions hereof. The Company shall not terminate, alter or amend such designation or
election without the express written consent of the Executive.
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8.1 Upon the death of the Executive, the Company shall cooperate with the
beneficiary or beneficiaries designated by the Executive to take whatever action is
necessary to collect the death benefit provided under the Policy; when such benefit has been
collected and paid as provided herein, this Agreement shall thereupon terminate.
8.2 Upon the death of the Executive, the Company shall have the unqualified right to
receive a portion of such death benefit equal to the greater of (i) one-third thereof or
(ii) the greater of the total amount of premiums paid by it hereunder or the then cash
surrender value of the policy, such amount reduced by the amount, if any, of indebtedness
against the Policy existing at the date of the death of the Executive (including any
interest due on such indebtedness). The balance of the death benefit provided under the
Policy, if any, shall be paid directly to the beneficiary or beneficiaries designated by the
Company at the direction of the Executive, in the manner and in the amount or amounts
provided in the beneficiary designation provisions of the Policy. In no event shall the
amount payable to the Company hereunder exceed the Policy proceeds payable at the death of
the Executive. No amount shall be paid from such death benefit to the beneficiary or
beneficiaries designated by the Company at the direction of the Executive until the full
amount due the Company hereunder has been paid. The parties hereto agree that the
beneficiary designation provision of the Policy shall conform to the provisions hereof.
8.3 Notwithstanding any provision hereof to the contrary, in the event that, for any
reason whatsoever, no death benefit is payable under the Policy upon the death of the
Executive and in lieu thereof the Insurer refunds all or any part of the premiums paid for
the Policy, the Company and the Executive’s beneficiary or beneficiaries shall have the
unqualified right to share such premiums based on their respective cumulative contributions
thereto.
9.1 This Agreement shall terminate during the Executive’s lifetime, without notice,
upon the occurrence of any of the following events: (a) a total cessation of the Company’s
business, (b) bankruptcy, receivership or dissolution of the Company or (c) termination of
the Executive’s full-time employment by the Company (other than by reason of his death).
9.2 In addition, the Executive may terminate this Agreement at any time by written
notice to the Company, such termination to be effective as of the date such notice is given.
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10.1 For sixty (60) days after the date of the termination of this Agreement
during Executive’s lifetime, the Executive shall have the assignable option to purchase the
Policy from the Company. The purchase price for the Policy shall be the greater of the
total amount of the premium payments made by the Company hereunder or the then cash
surrender value of the Policy, less any indebtedness secured by the Policy which remains
outstanding as of the date of such termination, including interest on such indebtedness.
Upon receipt of such amount, the Company shall transfer all of its right, title and interest
in and to the Policy to the Executive, or his assignee, by the execution and delivery of an
appropriate instrument of transfer.
10.2 If the Executive or his assignee fails to exercise such option with such sixty
(60) day period, then the Company may enforce its right to be repaid for the premiums which
it paid hereunder by surrendering or canceling the Policy for its cash surrender value, or
it may change the beneficiary designation provisions of the Policy, naming itself or any
other person or entity as revocable beneficiary thereof, or exercise any other ownership
rights in and to the Policy, without regard to the provisions hereof. Thereafter, neither
the Executive, his assignee nor their heirs, assigns or beneficiaries shall have any further
interest in or to the Policy, either under the terms thereof or under this Agreement.
12. Assignment by Executive. Notwithstanding any provision hereof to the contrary, the
Executive shall have the right absolutely and irrevocably to assign by gift all of his right, title
an interest in and to this Agreement and to the Policy to an assignee. This right shall be
exercisable by the execution and delivery to the Company of a written assignment, in substantially
the form attached hereto as Exhibit B, which by this reference is made a part hereof. Upon receipt
of such written assignment executed by the Executive and duly accepted by the assignee thereof, the
Company shall consent thereto in writing, and shall thereafter treat the Executive’s assignee as
the sole owner of all of the Executive’s right, title and interest in and to this Agreement and in
and to the Policy. Thereafter, the Executive shall have no right, title or
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interest in or to this Agreement or the Policy, all such rights being vested in and exercisable only by
such assignee.
13.1 The Company is hereby designated as the named fiduciary under this
Agreement. The named fiduciary shall have the authority to control and manage the operation
and administration of this Agreement, and it shall be responsible for establishing and
carrying out a funding policy and method consistent with the objectives of this Agreement.
13.2 (1) Claim.
A person who believes that he or she is being denied a benefit to which he or she is
entitled under this Agreement (hereinafter referred to as “Claimant”) may file a written
request for such benefit with the Company, setting forth his or her claim. The request must
be addressed to the President of the Company at its then principal place of business.
Upon receipt of a claim, the Company shall advise the Claimant that a reply will be
forthcoming within ninety (90) days and shall, in fact, deliver such reply within such
period. The Company may, however, extend the reply period for an additional ninety (90)
days for reasonable cause.
If the claim is denied in whole or in part, the Company shall adopt a written opinion,
using language calculated to be understood by the Claimant, setting forth: (a) the specific
reason or reasons for such denial; (b) the specific reference to pertinent provisions of
this Agreement on which such denial is based; (c) a description of any additional material
or information necessary for the Claimant to perfect his or her claim and an explanation why
such material or such information is necessary; (d) appropriate information as to the steps
to be taken if the Claimant wishes to submit the claim for review; and (e) the time limits
for requesting a review under subsection (3) and for review under subsection (4) hereof.
Within sixty (60) days after the receipt by the Claimant of the written opinion
described above, the Claimant may request in writing that the Secretary of the Company
review the determination of the Company. Such request must be addressed to the Secretary of
the Corporation, at its then principal place of business. The Claimant or his
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or her duly authorized representative may, but need not, review the pertinent documents
and submit issues and comments in writing for consideration by the Company. If the Claimant
does not request a review of the Company’s determination by the Secretary of the Company
within such sixty (60) day period, he or she shall be barred and estopped from challenging
the Company’s determination.
Within sixty (60) days after the Secretary’s receipt of a request for review, he or she
will review the Company’s determination. After considering all materials presented by the
Claimant, the Secretary will render a written opinion, written in a manner calculated to be
understood by the Claimant, setting forth the specific reasons for the decision and
containing specific references to the pertinent provisions of this Agreement on which the
decision is based. If special circumstances require that the sixty (60) day time period be
extended, the Secretary will so notify the Claimant and will render the decision as soon as
possible, but no later than one hundred twenty (120) days after receipt of the request for
review.
15.1 Any notice, demand, consent, service or other communication required or permitted
to be given under this Agreement shall be in writing and addressed to the party at its
address stated below:
If to the Company | President | |||||
Reliv International, Inc. | ||||||
000 Xxxxxxxxxxxx Xxxxxxxxxx Xxxxxxxxx | ||||||
Xxxxxxxxxxxx, XX 00000 |
If to Executive | At his address as shown on the books of the Company |
Any party may change the address to which notices to it shall be sent hereunder by giving a
proper notice of such change of address to the other party hereunder.
15.2 Notices may be delivered by hand, registered mail, or fax and shall be deemed to
have been received as follows:
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15.2.1 If delivered by hand, at the time of delivery to a responsible person at
the address for the party;
15.2.2 If sent by fax, at the time of confirmation of transmission provided a
confirmation copy is sent by airmail or registered mail within twenty-four hours
after the transmission; or,
15.2.3 If sent by registered mail, at the time of delivery or at the
time of attempted delivery in the case delivery cannot be completed due to no fault
of the sender.
If the time of such deemed receipt as provided above is not during the customary business
hours of the party, the notice shall be deemed to have been received at 10:00 a.m. at the
place of delivery on the first customary day of business thereafter.
20. Governing Law. This Agreement shall be governed by, and shall be construed and enforced
in all respects in accordance with, the laws of the State of Missouri.
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RELIV INTERNATIONAL, INC. | ||||||
By | /s/ Xxxxxx X. Xxxxxxxxxx
|
|||||
/s/ Xxxx X. Xxxxxxxx
|
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EXHIBIT A
The following life insurance policy is subject to the attached Split-Dollar Agreement
Insurer | The Equitable Life Insurance Assurance Society of the United States | |||||
Insured | Xxxx X. Xxxxxxxx | |||||
Policy Number
|
47201529 | |||||
Face Amount
|
$1,770,000 | |||||
Date of Issue |
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EXHIBIT B
IRREVOCABLE ASSIGNMENT OF SPLIT-DOLLAR AGREEMENT
THIS AGREEMENT, dated this
day of , 19 ,
WITNESSETH THAT:
WHEREAS, the undersigned (the “Assignor”) is the Employee party to that certain Split-Dollar
Agreement (the “Agreement”), dated as of
, by and between
the undersigned and Reliv International, Inc. (the “Corporation”), which Agreement confers upon the
undersigned certain rights and benefits with regard to one or more policies of insurance insuring
the Assignor’s life; and
WHEREAS, pursuant to the provisions of said Agreement, the Assignor retained the right, exercisable
by the execution and delivery to the Corporation of a written form of assignment, to absolutely and
irrevocably assign all of the Assignor’s right, title and interest in and to said Agreement to an
assignee; and
WHEREAS, the Assignor desires to exercise said right;
NOW, THEREFORE, the Assignor, without consideration, and intending to make a gift, hereby
absolutely and irrevocably assigns, gives, grants and transfers to , (the “Assignee”) all of the Assignor’s right, title and interest in and to the
Agreement and said policies of insurance, intending that, from and after this date, the Agreement
be solely between the Corporation and the Assignee and that hereafter the Assignor shall neither
have nor retain any right, title or interest therein.
Assignor |
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The undersigned Assignee hereby accepts the above assignment of all right, title and interest
of the Assignor therein and to the Agreement, by and between such Assignor and the Corporation, and
the undersigned hereby agrees to be bound by all of the terms and conditions of said Agreement, as
if the original employee party thereto.
Assignee |
Dated:
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