1
EXHIBIT (10)(x)
Material Contracts -- Agreement
Regarding Xxx Xxxxxxx Fund,
between the Estate of Xxxxxx
Xxxxxxx, The Xxx Xxxxxxx
Fund and Xxxxxxx Gordman 1/2
Price Stores, Inc., dated as of
December 13, 1996.
2
AGREEMENT REGARDING XXX XXXXXXX FUND
THIS AGREEMENT is made by and between The Estate of Xxxxxx Xxxxxxx
("Estate"), The Xxx Xxxxxxx Fund (hereinafter "Gordman Fund") and Xxxxxxx
Gordman 1/2 Price Stores, Inc., a Delaware corporation (hereinafter "RG").
WHEREAS, The Gordman Fund is the beneficiary of and asserts it has a claim
(the "Subrogation Claim") against the proceeds of Security Life of Denver
Policy No. 9547594 (the "Policy") which insured the life of Xxx Xxxxxxx; and
WHEREAS, RG and Xxxxxx Xxxxxxx collaterally assigned the Policy proceeds
to Xxxxxx Trust & Savings Bank (hereinafter "Xxxxxx Bank"), which assignment
the Estate and the Gordman Fund do not dispute; and
WHEREAS, upon the death of Xxx Xxxxxxx (the insured) the Policy proceeds
were applied by Xxxxxx Bank to the balance due on a certain installment note
executed by RG in favor of Xxxxxx Bank (the "Note"); and
WHEREAS, RG acknowledges that the Subrogation Claim is valid and, upon
payment in full of the Note, shall become fully payable in accordance with
Paragraph 2 below; and
WHEREAS, the amount of the Subrogation Claim by the Gordman Fund can be
calculated as follows:
Insurance Payment:
Death Benefit plus Accelerator Rider: $655,606.50
Premium Reimbursement: $325,787.40 (48.95%)
Balance for Fund: $339,819.10 (51.05%)
Interest from date of death
until paid by insurer: $ 14,801.63
Company portion (48.95%): $ 7,245.40
3
Fund Portion (51.05%): $7,556.23
Total principal amount of subrogation
claim:
Death benefit: $339,819.10
Interest paid by insurer: $ 7,556.23
-----------
Total Subrogation Claim $347,375.33
NOW, THEREFORE the Estate, Gordman Fund and RG agree as follows:
1. RG agrees, upon payment in full of the Note, to pay to the
Gordman Fund the Subrogation Claim principal amount of $347,375.33, plus
interest on the unpaid balance at the rate of 7%, which shall accrue
from and after May 5, 1994, the date on which Xxxxxx Bank applied the
proceeds of the Policy to the Note.
2. Payments of the Subrogation Claim amount shall be paid by RG to
the Gordman Fund on the 20th day of each month, commencing the month
after the Note is paid in full, in the amount of $67,000 per month until
fully paid.
Dated: December 13, 1996
XXX XXXXXXX FUND
By: /s/ Xxxxxx X. Xxxxxxx
---------------------------------
Xxxxxx X. Xxxxxxx, Trustee
XXXXXXX GORDMAN 1/2 PRICE STORES, INC.
By: /s/ Xxxxxxx X. Xxxxxxx
---------------------------------
Xxxxxxx X. Xxxxxxx, President and Chief
Executive Officer
ESTATE OF XXXXXX XXXXXXX
By: /s/ Xxxxxx X. Xxxxxxx
---------------------------------
Xxxxxx X. Xxxxxxx, Co-Personal Representative
By: /s/ Xxxxxx X. Xxxxxxx
---------------------------------
Xxxxxx X. Xxxxxxx, Co-Personal Representative
