Document:

exv10w18

 

Exhibit 10.18

E M P L O Y M E N T A G R E E M E N T

     THIS AGREEMENT is made and entered into this 6th day of May, 2002 effective for the term
provided herein, by and between Reliv’ International, Inc. (hereinafter referred to as the
“Company”) and Steven G. Hastings (hereinafter referred to as the “Employee”).

     WHEREAS, the Employee is presently, and for some time has been, employed as Vice-President of
U.S. and International Marketing for the Company and has contributed to the success of the Company;

     WHEREAS, the Company desires to be assured of the continued association and services of
Employee and Employee desires to continue in the employment of the Company on the terms provided
herein.

     NOW, THEREFORE, in consideration of (a) Employee’s participation in the Company incentive
compensation program, (b) the continued employment or retention of Employee by the Company, (c)
Employee’s entitlement of severance upon termination of employment under Section 4.2 and (d) the
premises and of the terms, covenants and conditions hereinafter contained, the parties hereto agree
as follows:

       1. Employment, Duties and Authority.

     1.1 The Company hereby employs Employee and Employee hereby accepts employment by the
Company on the terms, covenants and conditions herein contained.

     1.2 The Employee is hereby employed by the Company as Vice-President of U.S. and
International Marketing. The Employee shall have such duties, responsibilities and
authority as the Company shall from time to time provide.

     1.3 During the term of Employee’s employment hereunder, and subject to the other
provisions hereof, Employee shall devote his full energies, interest, abilities and
productive time to the performance of his duties and responsibilities hereunder and will
perform such duties and responsibilities faithfully and with reasonable care for the welfare
of the Company.

       2. Compensation and Benefits.

     2.1 The Company shall pay to Employee during the term of employment hereunder a basic
salary at the annual rate provided in Schedule A hereto. Such annual rate of salary may
be changed from time to time as the parties agree and such changes shall be reflected
on Schedule A when made. Such basic salary shall be paid by the

 

 

Company to Employee each
month, less amounts which the Company may be required to withhold from such payments by
applicable federal, state or local laws or regulations.

     2.2 Benefits; Expense Reimbursement.

     2.2.1 The Employee shall be entitled to, and shall receive, all benefits of
employment as listed on Schedule A.

     2.2.2 During the term hereof, the Company shall reimburse Employee for all
reasonable and necessary expenses incurred by Employee in the performance of his
duties hereunder, including without limitation, travel, meals, lodging, office
supplies or equipment subject to such reasonable limitations, restrictions and
reporting standards as the Employee’s supervisor or the Company may from time to
time establish. Employee shall provide to the Company promptly after incurring any
such expenses a detailed report thereof and such information relating thereto as the
Company shall from time to time require. Such information shall be sufficient to
support the deductibility of all such expenses by the Company for federal income tax
purposes.

     3. Term.

     The employment of Employee hereunder shall be for a one year term commencing on the date of
this Agreement. Upon the expiration of the initial one year term or any one year renewal term of
Employee’s employment hereunder, the term of such employment shall be automatically renewed for an
additional term of one year, unless Employee or the Company shall give notice of the termination of
Employee’s employment and this Agreement by written notice to the other more than 30 days prior to
the date of expiration of the initial or any renewal term. In the event that such notice of
termination shall be given timely, this Agreement shall terminate on the date of expiration of such
initial or renewal term.

     4. Termination.

     4.1 The Company shall be entitled to terminate the Employee’s employment by written
notice to Employee prior to the expiration of its term or any renewal term:

     4.1.1 in the event of an Event of Default with respect to Employee as provided
herein, or

     4.1.2 upon the permanent mental or physical disability of Employee as provided
herein occurring during the term or any renewal term of Employee’s employment
hereunder.

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     4.2 The Company shall be entitled to terminate the Employee’s employment at any time upon five
(5) days written notice to Employee, subject to the obligations of paragraph 4.8.

     4.3 For purposes of this Agreement, an Event of Default with respect to Employee shall
include:

     4.3.1 Any failure by Employee to perform his duties, responsibilities or
obligations hereunder in a faithful and diligent manner or with reasonable care and
(if such failure can be cured) the failure by Employee to cure such failure within a
reasonable amount of time after written notice thereof shall have been given to
Employee by the Company; or

     4.3.2 Commission by Employee of any material act of dishonesty as an employee
of the Company or of disloyalty to the Company, or any wrongful or unauthorized
appropriation, taking or misuse of funds, property or business opportunities of the
Company.

     4.4 Permanent mental or physical disability of Employee shall be deemed to have
occurred hereunder when Employee shall have failed or been unable to perform his duties
hereunder on a full-time basis for an aggregate of 60 days in any one period of 90
consecutive days. In calculating the 60 day time period, unpaid leave which qualifies
under, and which was provided by the Company pursuant to, the Family and Medical Leave Act
of 1993, as amended, shall not be counted.

     4.5 Employee shall be entitled to terminate his employment with the Company under this
Agreement prior to the expiration of its term or any renewal term upon thirty (30) days
written notice or immediately upon the occurrence of an Event of Default with respect to the
Company.

     4.6 For purposes of this Agreement an Event of Default with respect to the Company
shall include:

     4.6.1 Any failure by the Company to perform its obligations to Employee under
this Agreement and (if such failure can be cured) the failure by the Company to cure
such failure within a reasonable amount of time after written notice thereof shall
have been given to the Company by Employee;

     4.6.2 The Company shall:

     (a) admit in writing its inability to pay its debts generally as they
become due,

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     (b) file a petition for relief under any chapter of Title 11 of the
United States Code or a petition to take advantage of any insolvency under
the laws of the United States of America or any state thereof,

     (c) make an assignment for the benefit of its creditors,

     (d) consent to the appointment of a receiver of itself or of the whole
or any substantial part of its property,

     (e) suffer the entry of an order for relief under any chapter of
Title 11 of the United Sates Code, or

     (f) file a petition or answer seeking reorganization under the Federal
Bankruptcy Laws or any other applicable law or statute of the United States
of America or any state thereof.

     4.7 In the event of termination of this Agreement and Employee’s employment hereunder
by the Company pursuant to paragraph 4.1 or 4.2 hereof, all rights and obligations of the
Company and Employee hereunder shall terminate on the date of such termination, except for
Employee’s right to receive (subject to any rights of set off or counterclaim by the
Company) all salary, additional compensation and benefits which shall have accrued prior to
the date of such termination as well as all other rights of the Company or Employee which
shall have accrued hereunder prior to the date of such termination. The obligation of the
Company for any further payment of salary, additional compensation or benefits shall
terminate as at the date of such termination, subject to paragraph 4.8.

     4.8 In the event of termination of this Agreement and Employee’s employment hereunder
by the Company pursuant to paragraph 4.2 hereof, the Company shall be obligated to pay
Employee an amount of severance equal to six (6) months salary, payable by the Company over
a twelve (12) month period to commence on the date of termination.

     4.9 In the event of termination of this Agreement by Employee in accordance with
paragraph 4.5 hereof, all rights and obligations of the Company and Employee hereunder shall
terminate on the date of such termination, except for Employee’s right to receive (subject
to any rights of set off or counterclaim by the Company) all salary, additional compensation
and
benefits which shall have accrued prior to the date of such termination as well as all
other rights of the Company or Employee which shall have accrued hereunder prior to the date
of such termination. The Company’s obligation for

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the continued payment of salary,
additional compensation and benefits shall terminate as of the date of such termination.

       5. Confidential Information.

     5.1 “Confidential Information” for purposes of this Agreement means any and all
information disclosed by the Company to Employee, whether provided or received orally or in
writing, relating to or concerning the business, projects, products, processes, formulas,
know-how, techniques, designs or methods of the Company, whether relating to research,
development, manufacture, purchasing, accounting, engineering, marketing, merchandising,
selling or otherwise. Without limitation, Confidential Information shall include all
know-how, technical information, inventions, ideas, concepts, processes and designs relating
to products of the Company, whether now existing or hereafter developed, and all prices,
customer or distributor names, customer or distributor lists, marketing and other
relationships, whether contractual or not, between the Company, its suppliers, customers,
distributors, employees, agents, consultants and independent contractors.

     5.2 Employee agrees that he will not disclose any Confidential Information to any
person and will not use any Confidential Information for any purpose other than in the
performance of his duties for the Company or in the course of business dealings with the
Company. Confidential Information shall not include information, which, at the time,
Employee can show (i) is generally known to the public other than as a result of disclosure
by the Employee or by other wrongful disclosure or (ii) became known to the Employee from a
source other than the Company or any of its employees, agents or representatives in a
communication not involving a wrongful disclosure.

     5.3 Employee agrees that, during the term hereof or while Employee shall receive
compensation hereunder and after termination of his employment with the Company for so long
as the Confidential Information shall not be generally known or generally disclosed (except
by Employee or by means of wrongful use or disclosure), Employee shall not use any
Confidential Information, except on behalf of the Company, or disclose any Confidential
Information to any person, firm, partnership, company, corporation or other entity, except
as authorized by the Company.

     5.4 Without limiting the foregoing, Employee acknowledges and agrees that the Company
has developed, and is developing, at great expense, (i) relationships with its distributors
and customers; (ii) information and records pertaining to distributors and customers
including, but not limited to, genealogies, sales volumes, compensation, rank,
addresses and phone numbers; and (iii) technical information concerning products and
methods of marketing and sale which is all kept and protected as Confidential Information
and trade secrets and are of great value to the Company.

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     5.5 Employee acknowledges and agrees that the obligations under this Paragraph 5 shall survive
termination of this Agreement and Employee shall continue to be bound by this provision as provided
herein.

       6. Inventions.

     6.1 “Inventions” shall mean discoveries, concepts, ideas, designs, methods, formulas,
know-how, techniques or any improvements thereon, whether patentable or not, made, conceived
or developed, in whole or in part, by Employee.

     6.2 Employee covenants and agrees to communicate and fully disclose to the
Company any and all Inventions made or conceived by him during the performance of his duties
for the Company and further agrees that any and all such Inventions which he may conceive or
make, during the term hereof or while receiving any compensation or payments from the
Company, shall be at all times and for all purposes regarded as acquired and held by him in
a fiduciary capacity and solely for the benefit of the Company. The provisions of this
subparagraph shall not apply to an invention for which no equipment, supplies, facilities,
Confidential Information or trade secret information of the Company was used and which was
developed entirely on the Employee’s own time, unless (a) the invention relates (i) to the
business of the Company, or (ii) to the Company’s actual or demonstrably anticipated
research or development, or (b) the invention relates from any work performed by Employee
for the Company.

     6.4 Employee acknowledges and agrees that the obligations under this Paragraph 6 shall survive
termination of this Agreement and Employee shall continue to be bound by this provision as provided
herein.

       7. Writings and Working Papers.

     7.1 Employee covenants and agrees that any and all letters, pamphlets, drafts,
memoranda or other writings of any kind written by him for or on behalf of the Company or in
the performance of Employee’s duties hereunder, Confidential Information referred to in
paragraph 5.1 hereof and all notes, records and drawings made or kept by him of work
performed in connection with his employment by the Company shall be and are the sole and
exclusive property of the Company and the Company shall be entitled to any and all rights
relating thereto. Employee also agrees that upon request he will place all such notes,
records
and drawings in the Company’s possession and will not take with him without the written
consent of a duly authorized officer of the Company any notes, records, drawings, blueprints
or other reproductions relating or pertaining to or connected with his employment of the
business, books, textbooks, pamphlets, documents work or investigations of the Company.

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     7.2 Employee acknowledges and agrees that the obligations under this Paragraph 7 shall survive
termination of this Agreement and Employee shall continue to be bound by this provision as provided
herein.

       8. Covenant Not to Solicit.

     8.1 Employee acknowledges and agrees as follows:

     8.1.1 That the Company has developed, and is developing and establishing, a
valuable and extensive trade in its services and products, including without
limitation, nutritional, food and dietary products, and skin care products and that
it has developed, and is developing, operations and distributors to sell such
products and services throughout the United States and in foreign countries.

     8.1.2 That the Company has developed, and is developing, at great
expense, relationships with its distributors and customers and have gathered, and
are gathering, information and records pertaining to such distributors and customers
including, but not limited to, genealogies, sales volumes, compensation, rank,
addresses and phone numbers, all of which are kept and protected as Confidential
Information and trade secrets and are of great value to the Company.

     8.1.3 That, during the course of his employment with the Company and during the
term of this Agreement, Employee has acquired and will acquire, possession of
Confidential Information.

     8.1.4 That the conduct covered by the restrictive covenant in this paragraph
includes only a percentage of the total number of individuals who are distributors
or potential distributors of products with respect to which Employee has knowledge
or expertise, that Employee would be able to utilize his knowledge, experience and
expertise for an employer while fully complying with the terms of this paragraph and
that the terms and conditions of this paragraph are reasonable and necessary for the
protection of the Company’s business and assets.

     8.2 Employee agrees that, during the term of this Agreement, for so long as Employee
shall be receiving compensation hereunder, and for a period of 24 months from and
after the date of termination of this Agreement, he will not, directly or indirectly,
whether as an employee, independent distributor, agent, officer, consultant, partner, owner,
shareholder or otherwise, solicit, recommend, suggest, or induce any person who is, or at
any time during the term of this Agreement has been, a distributor for the Company, to
become a distributor for, or otherwise become associated with, any person

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or organization
(other than the Company) engaged in the business of marketing or selling any product or
service by means of any direct sales, network marketing or multilevel marketing method or
organization.

     8.3 Employee acknowledges and agrees that the obligations under this Paragraph 8 shall survive
termination of this Agreement and Employee shall continue to be bound by this provision as provided
herein.

     9. Survival

     All provisions of this Agreement provided herein to survive termination of employment of
Employee hereunder, shall survive such termination and the Company and Employee shall continue to
be bound by such provisions in accordance with the terms thereof. Without limiting the foregoing,
the obligations of Employee pursuant to paragraphs 5, 6, 7 and 8 provided herein shall survive such
termination and the Employee shall continue to be bound by such provisions in accordance with their
terms.

     10. Assignment.

     The rights and duties of a party hereunder shall not be assignable by that party,
except that the Company may assign this Agreement and all rights and obligations hereunder to, and
may require the assumption thereof by, any corporation or any other business entity which succeeds
to all or substantially all the business of the Company through merger, consolidation or corporate
reorganization or by acquisition of all or substantially all of the assets of the Company.

     11. Binding Effect.

     This Agreement shall be binding upon the parties hereto and their respective successors in
interest, heirs and personal representatives and, to the extent permitted herein, the assigns of
the Company. The parties acknowledge and agree that all rights and obligations by and between the
parties under this Agreement pertain to subsidiaries and Affiliates of the Company, if appropriate.
“Affiliate” shall mean any corporation of which the Company, or any Affiliate, shall own a
majority of the capital stock.

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     12. Severability.

     If any provision of this Agreement or any part hereof or application hereof to any person or
circumstance shall be finally determined by a court of competent jurisdiction to be invalid or
unenforceable to any extent, the remainder of this Agreement, or the remainder of such provision or
the application of such provision to persons or circumstances other than those as to which it has
been held invalid or unenforceable, shall not be affected thereby and each provision of this
Agreement shall remain in full force and effect to the fullest extent permitted by law. The
parties also agree that, if any portion of this Agreement, or any part hereof or application
hereof, to any person or circumstance shall be finally determined by a court of competent
jurisdiction to be invalid or unenforceable to any extent, any court may so modify the
objectionable provision so as to make it valid, reasonable and enforceable.

     13. Notices.

     All notices, or other communications required or permitted to be given hereunder shall be in
writing and shall be delivered personally or mailed, certified mail, return receipt requested,
postage prepaid, to the parties as follows:

	 	 	 
	     If to the Company:

	 	Robert L. Montgomery
	 

	 	Chief Executive Officer
	 

	 	Reliv International, Inc.
	 

	 	P.O. Box 405
	 

	 	Chesterfield, MO 63005
	 
	 	 
	     If to Employee:

	 	Steven G. Hastings
	 

	 	P.O. Box 405
	 

	 	Chesterfield, MO 63005

Any notice mailed in accordance with the terms hereof shall be deemed received on the third
day following the date of mailing. Either party may change the address to which notices to such
party may be given hereunder by serving a proper notice of such change of address to the other
party.

     14. Entire Agreement.

     This Agreement constitutes the entire agreement between the parties hereto with respect to the
subject matter hereof and supersedes all prior written or oral negotiations, representations,
agreements, commitments, contracts or understandings with respect thereto and no modification,
alteration or amendment to this Agreement may be made unless the same shall be in writing and
signed by both of the parties hereto.

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     15. Waivers.

     No failure by either party to exercise any of such party’s rights hereunder or to insist upon
strict compliance with respect to any obligation hereunder, and no custom or practice of the
parties at variance with the terms hereof, shall constitute a waiver by either party to demand
exact compliance with the terms hereof. Waiver by either party of any particular default by the
other party shall not affect or impair such party’s rights in respect to any subsequent default of
the same or a different nature, nor shall any delay or omission of either party to exercise any
rights arising from any default by the other party affect or impair such party’s rights as to such
default or any subsequent default.

     16. Governing Law; Jurisdiction.

     16.1 For purposes of construction, interpretation and enforcement, this Agreement shall
be deemed to have been entered into under the laws of the State of Missouri and its
validity, effect, performance, interpretation, construction and enforcement shall be
governed by and subject to the laws of the State of Missouri.

     16.2 This Agreement is governed by and construed in accordance with the laws of the
State of Missouri. Any and all disputes arising out of or relating to this Agreement will
be resolved and determined by arbitration in accordance with existing rules and regulations
of the American Arbitration Association. The exclusive location for such arbitration shall
be St. Louis, Missouri. The decision of the arbitrator(s) will be final and binding on all
parties and the judgment may be entered in a court of competent jurisdiction. Demands for
arbitration must be filed within the applicable time period provided by Missouri statute.
Failure to make a demand for arbitration within this period will result in the waiver and
loss of all claims by Employee with respect to the dispute.

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES.

	 	 	 
	EMPLOYEE:
	 	 
	 
	 	 
	/s/ Steven G. Hastings
 

Steven G. Hastings

	 	 
	 
	 	 
	RELIV INTERNATIONAL, INC.
	 	 

	 	 	 	 	 
	By:

	 	/s/ David G. Kreher
 

Authorized Officer
	 	 

	 	 	 
	Attest:
	 	 
	 
	 	 
	/s/ Stephen M. Merrick
 

Secretary

	 	 

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SCHEDULE A

BASIC SALARY

	 	 	 	 	 	 	 	 	 
	Employee	 	Effective Date of Employment	 	Base Salary
	 
	Steven G. Hastings
	 	May 6, 2002	 	$	103,500	 

BENEFITS

Health/Dental Insurance

Life Insurance/Split Dollar Policy

Short/Long Term Disability

Incentive Compensation Plan

401(k) Plan

12exv10w19

 

Exhibit 10.19

SPLIT-DOLLAR AGREEMENT

     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
136 Chesterfield Industrial Boulevard, Chesterfield, Missouri 63005 (hereinafter referred to as the
“Company”) and Robert L. Montgomery, an individual residing
in Chesterfield, Missouri (hereinafter
referred to as the “Executive”)

     WHEREAS, Executive is employed by the Company;

     WHEREAS, Executive wishes to provide life insurance protection for his family in the event of
his death, under a policy of life insurance insuring his life (hereinafter referred to as the
“Policy”), which is described in Exhibit A attached hereto, and which is being issued by The
Equitable Life Assurance Society of the United States (hereinafter referred to as the “Insurer”);

     WHEREAS, the Company is willing to pay premiums due on the Policy as an additional employment
benefit for Executive, on the terms and conditions set forth;

     WHEREAS, the Company is the owner of the Policy and, as such, possesses all of the incidents
of ownership of the policy; and,

     WHEREAS, the Company wishes to retain such ownership rights in order to secure the repayment
of the amounts which it will pay toward the premiums on the Policy.

     NOW, THEREFORE, in consideration of the premises and of the terms, covenants and conditions
hereinafter contained, the parties hereto agree as follows:

     1. Purchase of Policy. The Company has purchased the Policy from the Issuer in the total face
amount of $3,124,000. The parties hereto have taken all necessary action to cause the Insurer to
issue the Policy, and shall take any further action which may be necessary to cause the Policy to
conform to the provisions of this Agreement. The parties hereto agree that the Policy shall be
subject to the terms and conditions of this Agreement and of the endorsement to the Policy filed
with the Insurer.

     2. Ownership
of the Policy. The Company shall be the sole and absolute owner of the Policy,
and may exercise all ownership rights granted to the owner thereof by the terms of the Policy,
except as my otherwise be provided herein.

     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.

     4. Payment of Premiums. On or before the due date of each Policy premium, or within the grace
period provided therein, the Company shall pay the full amount of the premium to the Insurer, and
shall, upon request, promptly furnish to the Executive evidence of timely payment of such premium.
The Company annually shall furnish to the Executive a statement of the amount of income reportable
by the Executive for federal and state income tax purposes as a result of the insurance protection
provided.

     5. Designation of Policy Beneficiary/Endorsement. Contemporaneously with the execution of
this Agreement, the Company has executed a beneficiary designation for and/or an endorsement to the
Policy, under the form used by the Insurer for such designations, in order to secure the
Corporation’s recovery of the amount of the premiums on the Policy paid by the Corporation
hereunder. Such beneficiary designation or endorsement shall not be terminated, altered or amended
by the Company without the express written consent of the Executive. The parties hereto agree to
take all actions necessary to cause such beneficiary designation or endorsement to conform to the
provisions of this Agreement.

     6. Limitations on Company’s Rights in Policy. Except as otherwise provided herein, the
Company shall not sell, assign, transfer, surrender or cancel the Policy, change the beneficiary
designation provision thereof, or terminate the dividend election thereof without, in any such
case, the express written consent of the Executive.

     7. Policy Loans. The Company may pledge or assign the Policy, subject to the terms and
conditions of this Agreement, for the sole purpose of securing a loan from the Insurer or from a
third party. The amount of such loan, including accumulated interest thereon shall not exceed the
lesser of (i) the amount of the premiums on the Policy paid by the Company hereunder or (ii) the
cash surrender value of the Policy (as defined herein) as of the date to which premiums have been
paid. Interest charges on such loan shall be paid by the Company. If the Company so encumbers the
Policy, other than by a policy loan from the Insurer, then, upon death of the Executive or upon
election of the Executive hereunder to purchase the Policy from the Company, the Company shall take
all action necessary to secure the release or discharge of such encumbrance.

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     8. Collection of Death Proceeds.

          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. Termination of Agreement During Executive’s Lifetime.

          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. Disposition of Policy on Termination of Agreement During Executive’s Lifetime.

     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.

     11. Insurer Not a Party. The Insurer shall be fully discharged from its obligations under the
Policy by payment of the death benefit to the beneficiary or beneficiaries named in the Policy,
subject to the terms and conditions of the Policy. In no event shall the Insurer be considered a
party to this Agreement, or any modification or amendment hereof. No provision of this Agreement,
nor of any modification or amendment hereof, shall in any way be construed as enlarging, changing,
varying or in any other way affecting the obligations of the Insurer as expressly provided in the
Policy, except insofar as the provisions hereof are made a part of the Policy by the beneficiary
designation executed by the Company and filed with the Insurer in connection herewith.

     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. Named Fiduciary, Determination of Benefits, Claims Procedure and Administration.

          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.

          (2) Claim Decision.

          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.

          (3) Request for Review.

          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.

          (4) Review of Decision.

          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.

     14. Amendment. This Agreement may not be amended, altered or modified, except by a written
instrument signed by the parties hereto, or their respective successors or assigns, and may not be
otherwise terminated except as provided herein.

     15. Notices.

          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.
	 

	 	 	 	 	 	136 Chesterfield Industrial Boulevard
	 

	 	 	 	 	 	Chesterfield, MO 63005
	 
	 	 	 	 	 	 
	 

	 	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.

     16. Binding Effect. This Agreement shall be binding upon, and shall inure to the benefit of,
the parties hereto and their respective successors in interest and, to the extent permitted herein,
their assigns.

     17. Severability. Whenever possible, each provision of this Agreement shall be interpreted in
such manner as to be effective and valid under applicable law. If any paragraph of this Agreement
shall be unenforceable or invalid under applicable law, such provision shall be ineffective only to
the extent and duration of such unenforceability or invalidity and the remaining substance of such
provision and the remaining paragraphs of this Agreement shall in such event continue to be binding
and in full force and effect.

     18. Waivers. Nor failure by a party to exercise any of such party’s rights hereunder or to
insist upon strict compliance with respect to any obligation hereunder, and no custom or practice
of the parties at variance with the terms hereof, shall constitute a waiver by any party to demand
exact compliance with the terms hereof. Waiver by any party of any particular default by any other
party shall not affect or impair such party’s rights in respect to any subsequent default of the
same or of a different nature, nor shall any delay or omission of any party to exercise any right
arising from any default by any other party affect or impair such party’s rights as to such default
or any subsequent default.

     19. Entire Agreement. This Agreement constitutes the entire agreement among the parties
hereto with respect to the subject matter hereof and supersedes all prior written or oral
negotiations, representations, inducements, understandings, commitments, contracts or agreements.

     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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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and
year first above written.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	RELIV INTERNATIONAL, INC.
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ David G. Kreher
 
      Authorized
Officer	 	 

	 	 	 	 	 
	 	 	 
	 	                                          /s/ Robert L. Montgomery
 	 
	 	Robert L. Montgomery 	 
	 	 	 

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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

	 	Robert L. Montgomery

	 
	 	 	 	 
	Policy Number

	 	 	47201527	 
	 
	 	 	 	 
	Face Amount

	 	$	3,124,000	 
	 
	 	 	 	 
	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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ACCEPTANCE OF ASSIGNMENT

     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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