Document:

Exhibit 10.11 Split Dollar Agreement Stubbs 1995 Irrevocable Trust

 

Exhibit
10.11

 

SPLIT
DOLLAR AGREEMENT

 

This
Split Dollar Agreement (hereinafter referred to as the "Agreement") is entered
into this 2nd day of
March, 1995, by and between Frozen Food Express Industries, Inc., a Texas
corporation
(herein referred to as the "Corporation") and Stoney Russell Stubbs, as Trustee
of The Stubbs
Irrevocable 1995 Trust, created by Stoney Milton Stubbs, Jr. and Julia B.
Stubbs, as settlors, and dated
March 1, 1995
(herein referred to as the "Trustee");

WHEREAS,
the Trustee of The Stubbs Irrevocable 1995 Trust (herein the "Trust") has
insured
the joint lives of Stoney Milton Stubbs, Jr. and Julia B. Stubbs, for the
benefit and protection of their
family, the primary beneficiaries of the Trust, under certain policies of life
insurance (hereinafter
collectively referred to as the "Policy"), which are described in Exhibit
"A" attached
hereto
and by this reference made a part hereof, and which were issued to the Trustee
by Transamerica
Occidental Life Insurance Company (hereinafter referred to as the
"Insurer");

WHEREAS,
the Corporation is willing to pay a portion of the premiums due on the Policy
on the
terms and conditions hereinafter set forth;

WHEREAS,
the Trust is the owner of the Policy and, as
such,
possess all incidents of ownership
in and to the Policy;

WHEREAS,
the Corporation wishes to have the Policy collaterally assigned to it by the
Trustee,
in order to secure the repayments of (i) the total amount which the Corporation
will pay toward
the premiums on the Policy and (ii) the total amount which the Corporation has
previously paid
toward premiums on that certain policy of insurance insuring the joint lives of
Stoney Milton

 

Stubbs,
Jr. and Julia B. Stubbs, bearing policy number 8834031, and issued by
Massachusetts Mutual

Life
Insurance Company (herein the "Massachusetts Life Insurance Policy") less any
sums previously received
by the Corporation with respect to the Massachusetts Life Insurance Policy;
and

WHEREAS,
the parties intend that by such collateral assignment the Corporation shall
receive
only the right to such repayment, with the Trustee retaining all other ownership
rights in the Policy,
as specified herein;

NOW,
THEREFORE, in consideration of the mutual covenants contained herein, it is
agreed between
the parties hereto as follows:

1.
Purchase
of Policy. The Trust
has contemporaneously purchased the Policy from the Insurer.
The parties hereto agree that they will take 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 collateral assignment filed with the
Insurer relating to the
Policy.

2.
Ownership
of Policy. The Trust
is 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 may otherwise
be provided herein. The number, face amount, and plan of insurance of the Policy
is recorded on Schedule
"A".

It is the
intention of the parties to this Agreement and the collateral assignment
executed by the Trust
to the Corporation in connection herewith that the Trust shall retain all rights
which the Policy
grants to the owner thereof; the sole right of the Corporation hereunder shall
be to be repaid

the total
amount which it has paid toward the premiums on each of the Policy and the
Massachusetts Life
Insurance Policy, less any sums previously received by the Corporation with
respect to the Massachusetts Life Insurance Policy. Specifically, but without
limitation, the Corporation shall

neither
have nor exercise any right as collateral assignee of the Policy which could in
any way defeat or impair
the Trust's right to receive the cash surrender value or the death proceeds of
the Policy in excess of the amount due the Corporation hereunder. All provisions
of this Agreement and of such
collateral assignment shall be construed so as to carry out such
intention.

3.
Payment
of Premiums. Except as
otherwise provided herein, on or before the due date of
each Policy premium, or within the grace period provided therein, the
Corporation shall pay the Trust
an amount equal to the portion of the Policy's premium which exceeds the cost of
current life
insurance protection on the joint lives of Stoney Milton Stubbs, Jr. and Julia
B. Stubbs, measured by the
lower of the PS 38 cost or the Insurer's current published premium rate for such
annually renewable term insurance for standard risks (as such items are
determined in accordance with applicable
Treasury Department rulings, regulations and tables, including without way of
limitation, Revenue
Ruling 55-747, Revenue Ruling 66-110, and Revenue Ruling 67-154). It is the
intention under
this Section 3 that the Corporation pay only that amount of the insurance
premiums that is in
excess. Upon receipt of the amount which the Corporation is required to
contribute to the Trust under
this Section 3, the Trustee shall pay the full amount of the premium to Insurer
on or before the date
of each Policy premium, or within the grace period provided
therein.

4.
Obligation
of Trust to Corporation. The Trust
shall be obligated to repay to the Corporation
the total amount of the premiums on the Policy paid by the Corporation hereunder
and the total
amount of the premiums previously paid on the Massachusetts Life Insurance
Policy by the Corporation
(less any sums previously received by the Corporation with respect to the
Massachusetts

 

Life
Insurance Policy), as hereinafter provided.

 

5. Collateral
Assignment. To secure
the repayment to the Corporation of the total amount of
the premiums on the Policy paid by the Corporation hereunder and the total
amount of

the
premiums previously paid on the Massachusetts Life Insurance Policy by the
Corporation (less any sums previously received by the Corporation with respect
to the Massachusetts Life Insurance Policy),
the Trust has, contemporaneously herewith, assigned the Policy to the
Corporation as collateral,
under a form approved by the Insurer for such assignments, which collateral
assignment specifically
provides that the sole right of the Corporation thereunder is to be repaid the
total amount it has
paid toward premiums on the Policy hereunder and the total amount that the
Corporation previously paid toward premiums on the Massachusetts Life Insurance
Policy (less any sums previously
received by the Corporation with respect to the Massachusetts Life Insurance
Policy). Such
repayment shall be made from the cash surrender value of the Policy (as defined
therein) if this Agreement
is terminated or if the Trust surrenders or cancels the Policy, or from the
death proceeds of the
Policy if Stoney Milton Stubbs, Jr. and Julia B. Stubbs should die while the
Policy and this Agreement
remain in force. In no event shall have the Corporation have any right to borrow
against or make.
withdrawals from the Policy, to surrender or cancel the Policy, or to take any
other action which would impair or defeat the rights of the Trust in and to the
Policy. The collateral assignment of the Policy to the Corporation hereunder
shall not be terminated, altered or amended by the Trust while
this Agreement is in effect without the prior consent of the Corporation. The
parties hereto agree to
take all action necessary to cause such collateral assignment to conform to the
provisions of this
Agreement.

 

6. Limitations
on Trust's Right in Policy. The Trust shall take no action with
respect

to the
Policy which would in way compromise or jeopardize the Corporation's right to be
repaid the total
amount it has paid toward premiums on the Policy and the total amount the
Corporation previously
paid toward premiums on the Massachusetts Life Insurance Policy (less any
sums

previously
received by the Corporation with respect to the Massachusetts Life Insurance
Policy) while this
Agreement is in effect.

The Trust
may pledge or assign the Policy, subject to the terms and conditions of this
Agreement,
in order to secure a loan from the Insurer or from a third party, in an amount
which will not
exceed the cash surrender value of the Policy (as defined therein) as of the
date to which premiums
have been paid, less the total amount paid toward the premiums on the Policy by
the Corporation
hereunder and the total amount that the Corporation has previously paid toward
premiums
on the Massachusetts Life Insurance Policy (less any sums previously received by
the Corporation
with respect to the Massachusetts Life Insurance Policy). Interest charges on
such loan shall be
the responsibility of and be paid by the Trust. For any Policy year in which the
Trust borrows
hereunder, the Corporation shall be correspondingly relieved of its obligation
to pay any amounts
toward premiums hereunder for such Policy year, to the extent of such
borrowing.

The Trust
shall have the sole right to surrender or cancel. the Policy, and to receive the
full cash
surrender value of the Policy directly from the Insurer. Upon the surrender or
cancellation of the
Policy, the Corporation shall have the unqualified right to receive a portion of
the cash surrender value
equal to the total amount of the premiums paid by it hereunder. Immediately upon
receipt of the cash
value of the Policy from the Insurer, the Trust shall remit to the Corporation
that portion of the
cash surrender value to which it is entitled hereunder and shall retain the
balance, if any. Upon such
receipt and payment, this Agreement shall thereupon terminate.

7.
Collection
of Death Proceeds. Upon the
death of the latter to die of Stoney Milton Stubbs,
Jr. and Julia B. Stubbs, the Corporation and the Trust shall cooperate to take
whatever action is
necessary to collect the death benefit provided under the Policy. When such
benefit has been

collected
and the Corporation is paid as provided herein, this Agreement shall thereupon
terminate and the
parties shall have no further obligation to each other hereunder.

Upon the
death of the latter to die Stoney Milton Stubbs, Jr. and Julia B. Stubbs, the
Corporation
shall have the unqualified right to receive a portion of such death benefit
equal to the total
amount of the premiums paid by it hereunder and the total amount of the premiums
previously paid by
the Corporation toward premiums on the Massachusetts Life Insurance Policy (less
any sums previously
received by the Corporation with respect to the Massachusetts Life insurance
Policy). The balance
of the death benefit provided under the Policy, if any, shall be paid directly
to the Trust. In no event
shall the total amount payable to the Corporation hereunder exceed the Policy
proceeds payable
at the death of the latter to die of Stoney Milton Stubbs, Jr. and Julia B.
Stubbs. No amount shall be
paid from such death benefit to the Trust until the full amount due the
Corporation hereunder
has been paid. The parties hereto agree that the beneficiary designation
provision of the Policy
shall conform to the provisions hereof.

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 latter to die
of Stoney Milton
Stubbs, Jr. and Julia B. Stubbs and in lieu thereof the Insurer refunds all or
any part of the

premiums
paid for the Policy, the Corporation and the Trust shall have the unqualified
right to share such
premiums based on the respective cumulative contributions by the Corporation
(including premiums
paid by the Corporation toward the Massachusetts Life Insurance Policy, less any
sums previously received by the Corporation with respect to the Massachusetts
Life Insurance Policy) and the
Trust, whereupon this Agreement shall terminate.

 

8. Termination
of the Agreement During Lifetime of Stoney Milton Stubbs, Jr. or
Julia

 

B.
Stubbs. This
Agreement shall terminate, during the lifetime of Stoney Milton Stubbs, Jr. or
Julia

B.
Stubbs, without notice, upon the total cessation of the Corporation's business
or the bankruptcy, receivership
or dissolution of the Corporation. In addition, the Trust may terminate this
Agreement, while no
premium under the Policy is overdue, by written notice to the Corporation.
Such
termination
shall be effective as of the date of such notice.

For sixty
(60) days after the date of the termination of the Agreement during the lifetime
of Stoney
Milton Stubbs, Jr. or Julia B. Stubbs, the Trust shall have the option of
obtaining the release of the
collateral assignment of the Policy given by the Trust to the Corporation
pursuant hereto. To obtain
such release, the Trust shall repay to the Corporation the total amount of the
premium payments
made by the Corporation hereunder toward the Policy and the total amount of the
premium
payments previously made by the Corporation toward the Massachusetts Life
Insurance Policy
(less any sums previously received by the Corporation with respect to the
Massachusetts Life Insurance
Policy). Upon
receipt of such amount, the Corporation shall release the collateral
assignment
of the Policy by the execution and delivery of an appropriate instrument of
release.

If the
Trust fails to exercise the option described in the foregoing paragraph within
such sixty (60) day
period, then, at the written request of the Corporation, the Trust shall execute
any document
or documents required by the Insurer to transfer the interest of the Trust in
the Policy to the Corporation. Alternatively, the Corporation may enforce its
right to be repaid the total amount of the
premiums on the Policy paid by it hereunder from the cash surrender value of the
Policy under the
collateral assignment of the Policy; provided, that in the event the cash
surrender value of the Policy
exceeds the total amount due to the Corporation, such excess shall be paid to
the Trust.

Thereafter,
neither the Trust nor its assigns, successors, or beneficiaries shall have any
further interest in and to
the Policy, either under the terms thereof or under this Agreement. Upon
the

Corporation's
receipt of the Policy or the cash surrender value as provided in this paragraph,
this Agreement
shall thereupon terminate.

9.
Additional
Policy Benefits and Riders. The Trust
may add a rider to the Policy on the joint
lives of Stoney Milton Stubbs, Jr. and Julia B. Stubbs acquired pursuant to the
terms of this Agreement
for the benefit of the Trust. Upon written request by the Corporation, the Trust
may add a
rider to the Policy for the benefit of the Corporation. Any additional premium
for any rider which is
added to the Policy shall be paid by the party which will be entitled to receive
the proceeds of the
rider.

10.
Insurer
Not a Party.
Transamerica Occidental Life Insurance Company shall be fully discharged
from any and alll liability under the terms of the Policy upon payment or other
performance
of its obligations in accordance with the terms of the Policy. No provisions of
this Agreement,
nor 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 for the Policy by the collateral assignment
executed by the Trust and filed with the Insurer in connection herewith.
Transamerica Occidental
Life Insurance Company is not a party to this Agreement and is in no way
responsible for its
terms, conditions and provisions.

11. Amendment
of Agreement. This
Agreement shall not be modified or amended except by a
writing signed by the Corporation and the Trust.

12.
Binding
Effect. This
Agreement shall be binding upon and inure to the benefit of the Corporation
and its successors and assigns, and the Trust, and its respective successors,
assigns, beneficiaries,
and trustees.

13. State
Law. This
Agreement shall be subject to, governed by, and construed in accordance
with the laws of the State of Texas.

IN
WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the date first
stated.

 

     

	 ATTEST: 	 FROZEN FOOD EXPRESS INDUSTRIES,
      INC.
	 By: /s/ Leonard W. Bartholomew  	 By: /s/ Burl G.
    Cott    
	 Leonard W. Bartholomew, Secretary 	 Burl G. Cott, Senior Vice
President

 

 

 

THE
STUBBS IRREVOCABLE 1995 TRUST

 

By: /s/
Stoney Russell Stubbs    

Stoney
ussell
Stubbs, Trustee of The
Stubbs Irrevocable 1995 Trust

Exhibit
“A”

 

The
following life insurance policies are subject to the attached Split Dollar
Agreement:

 

	
      Insurer: Transamerica
      Occidental Life Insurance Company

	
      Insured: Stoney
      Milton Stubbs, Jr. and Julia B. Stubbs

	
      Policy
      Number:  

	
      Face
      Amount: 
	
      $  
      .00

	
      Date
      of Issuance:  
	
      ,
      1   
      ___________,1995

	 
	
      Insurer: Transamerica
      Occidental Life Insurance Company

	
      Insured: Stoney
      Milton Stubbs, Jr. and Julia B. Stubbs

	
      Policy
      Number:  

	
      Face
      Amount:  
	
      $  
      .00

	
      Date
      of Issuance: 
	
      ___________ ,1995Exhibit 10.11 (a) First Amendment Split Dollar Stubbs

Exhibit
10.11 (a)

AMENDMENT
NO. 1 TO

SPLIT
DOLLAR AGREEMENT

STUBBS
TRUST

 

Reference
is made to that certain Split Dollar Agreement dated as of March 2, 1995 (the
"Agreement"), by and
between Frozen Food Express Industries, Inc., a Texas corporation (the
"Corporation"), and
Stoney Russell Stubbs, as Trustee ("Trustee") of The
Stubbs Irrevocable 1995
Trust (the "Trust").

PRELIMINARY
STATEMENTS

A.
The
Agreement may be amended in accordance with Section 11 of the
Agreement.

B.
Capitalized
terms used in this amendment (the "Amendment"), but not
otherwise defined,
have the meaning for them set forth in the Agreement.

C.
The
parties desire to amend the Agreement to terminate any obligation of the
Corporation
to make Premium (as defined below) payments under the Agreement with respect to
the Policy.

 

D.
The
parties also desire to grant the Trust the right to repay the Corporation
directly for any
Premiums due to be repaid to the Corporation by the Trust under the Agreement
without the Trust
having to wait to surrender the Policy for its cash value or receipt of death
benefits
under the
Policy.

AMENDMENT

The
parties, intending to be legally bound, hereby agree as follows:

1.
Termination
of Premium Payment Obligations. Notwithstanding
anything to the contrary
in the Agreement (including under Section 3 of the Agreement), the
parties hereby agree
that the Corporation shall no longer have any obligation to pay
Premiums under the Agreement with respect to the Policy and that as of the date
hereof the Trust shall be
solely obligated
to make any and all Premium payments under or with respect to the Policy.
For the
avoidance
of doubt, Section 3 of the Agreement is hereby deleted in its entirety from the
Agreement and shall be of no further force or effect.

2.
Repayment
of Premiums. Notwithstanding
anything to the contrary in the
Agreement
(including Sections 2 and 5 of the Agreement), the Trust shall have the right,
at its
sole and
absolute discretion, to repay Premiums owed to the Corporation under the
Agreement (including
under Section 2) at any time prior to the Trust surrendering the Policy
for its
cash value or receipt of death proceeds under the Policy. Nothing in this
Amendment, however, shall limit or
diminish the Trust's obligation to repay any unpaid Premiums in full no later
than as provided in Section 5 of the Agreement. As used
herein and in the context of the Agreement,

"Premiums" shall
mean the
total amount paid toward the premiums on the Policy by the
Corporation
under the Agreement prior to the date hereof and the total
amount that the Corporation
previously paid toward premiums on the Massachusetts Life Insurance Policy
(less
any sums
previously received by the Corporation with respect to the
Massachusetts Life Insurance
Policy), which Premium amounts currently owing total in the aggregate
$1,328,435, as
further
described on Exhibit
A.

3.
Ownership
Rights. Nothing
in this Amendment shall alter the ownership rights in the Policy, which
ownership rights shall remain with the Trust, subject only to the Corporation's
collateral assignment rights set forth in
the
Agreement, which collateral assignment rights shall terminate
on the earlier of repayment in full of the Premiums or as otherwise provided
in the
Agreement.

4. Succession.
This Amendment shall lie binding upon and inure to the benefit of the
parties to this Amendment and their respective successors and permitted
assigns.

5.
Counterparts. This
Amendment may be executed in one or more counterparts, each of
which shall be deemed an original but all of which together will constitute one
and the
same
instrument.

6.
Governing
Law. This
Amendment shall be governed by and construed in accordance
with the laws of the State of Texas without giving effect to any choice or
conflict of
law
provision or rule (whether of the State of Texas or any other
jurisdiction).

7.
Severability. Any term
or provision of this Amendment that is invalid or
unenforceable
in any situation in any jurisdiction shall not affect the validity or
enforceability of the
remaining terms and provisions hereof or the validity or enforceability of the
offending term
or
provision in any other situation or in any other jurisdiction.

8.
Ratification. This
Amendment shall not affect any terms or provisions of the Agreement
other than those amended hereby and is only intended to amend, alter or modify
the
Agreement as expressly stated herein. Except as amended hereby, the Agreement
remains in effect,
enforceable against each of the parties, and is hereby ratified and acknowledged
by each
of the
parties. In the event of a conflict between this Amendment and the Agreement,
the terms
of this Amendment shall control.

9.
Further
Assurances. While the
Corporation and the Trust are the only parties to the
Agreement, both parties agree to take such actions as may be required by the
Insurer, or which the parties may reasonably request, to modify, amend or alter
the collateral assignment
documents
previously executed by the parties in
conjunction with the execution of the Agreement, all in such manner as would be
in furtherance with the spirit of this Amendment.

[Reminder
of page intentionally left blank]

The
parties hereto have executed this Amendment on November 12, 2003.

 

FROZEN
FOOD EXPRESS INDUSTRIES, INC.

By:
/s/ F.
Dixon McElwee, Jr.    

Name: F. Dixon
McElwee, Jr.

Title:
Senior VP and CFO

 

THE
STUBBS IRREVOCABLE 1995 TRUST

 

By:
/s/
Stoney Russell Stubbs    

Name:
Stoney Russell
Stubbs

Title:
Trustee
of The Stubbs Irrevocable 1995 Trust

EXHIBIT
A

Outstanding
Premiums

as of
November 12, 2003

 

Analysis
of Split Dollar Premium Payments

 

	 
      Year
	 
      Amount

	
      1992
	
      59,
      355.00

	
      1993
	
      59,355.00

	
      1994
	
      -

	
      1995
	
      152,000.00

	
      1995
	
      (6,275.73)

	
      1996
	
      152,
      000.00

	
      1.997
	
      152,000.00

	
      1998
	
      152,000.00

	
      1999
	
      152,000.00

	
      2000
	
      152,000.00

	
      2001
	
      152,000.00

	
       2002
	
       152,000.00

	 	  1,328,434.27

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