Document:

Exhibit 10.12 Split Dollar Agreement Robertson 1995 Irrevocable Trust

Exhibit
10.12

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 Weldon Alvis Robertson, as
Trustee
of The Robertson Irrevocable
1995 Trust, created by Charles Garland Robertson and Eleanor Elaine Robertson,
as settlors,
and dated March 1, 1995 (herein referred to as the
"Trustee");

WHEREAS,
the Trustee of The Robertson Irrevocable 1995 Trust (herein. the "Trust") has
insured the joint lives of Charles Garland Robertson and Eleanor Elaine
Robertson, 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
Charles Garland Robertson
and Eleanor Elaine Robertson, bearing policy number 8842951, 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 Charles Garland Robertson and
Eleanor. Elaine
Robertson,
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.
 Oblination
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 Charles Garland Robertson and Eleanor Elaine Robertson 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 Charles Garland Robertson
and Eleanor Elaine Robertson, 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 Charles Garland Robertson and Eleanor Elaine
Robertson,
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 Charles Garland
Robertson and
Eleanor Elaine Robertson. 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 Charles
Garland Robertson and Eleanor Elaine Robertson 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 Charles Garland Robertson or Eleanor
Elaine Robertson. This
Agreement shall terminate, during the lifetime of Charles Garland Robertson
or Eleanor Elaine Robertson, 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 Charles
Garland Robertson or Eleanor Elaine Robertson, 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 Charles Garland Robertson and Eleanor Elaine Robertson 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 all 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
ROBERTSON IRREVOCABLE 1995 TRUST

 

                       By: /s/
Weldon Alvis Robertson  

Weldon
Alvis Robertson, Trustee of 

The
Robertson 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: Charles
Garland Robertson and Eleanor Elaine Robertson Policy
Number: 92505150

Face
Amount: $5,709,710.00

Date of
Issuance: March 2,
1995Exhibit 10.12 (a) First Amendment Split Dollar Robertson

Exhibit
10.12 (a)

AMENDMENT
No. 1 TO

SPLIT
DOLLAR AGREEMENT

ROBERTSON
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
Weldon Avis Robertson as Trustee ("Trustee") of The
Robertson 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 $497,806,
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 be 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.

 

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 Vice President & CFO

THE
ROBERTSON IRREVOCABLE 1995 TRUST

 

By:
/s/
Weldon Avis Robertson    

Name:
Weldon Avis Robertson 

Title:
Trustee
of The Robertson Irrevocable 1995 Trust

EXHIBIT
A

Outstanding
Premiums 

as of
November 12, 2003

 

Analysis
of Split Dollar Premium Payments

 

	
      Year
	
      Amount

	
      1992
	
      37,680.00

	
      1993
	
      36,
      655.00

	
      1994
	
      -0-

	
      1995
	
      53,000.00

	
      1995
	
      (529.73)

	
      1996
	
      53,000.00

	
      1997
	
      53,000.00

	
      1998
	
      53,000.00

	
      1999
	
      53,
      000.00

	
      2000
	
      53,000.00

	
      2001
	
      53,000.00

	
      2002
	
      53,
      000.00

	
       
	497,805.27

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