KIWANIS INTERNATIONAL GROUP MOVE RELOCATION POLICY

(

(

\

KIWANIS INTERNATIONAL

(

(

(

1.6 Family Eligibility

The Group Move Relocation Benefits Policy will apply to all persons who permanently reside--a within the same household when the formal request to transfer is received_ by the employee. ,.

1.7 Duration of Eligibility for Employee and Family

1.8

a. Relocation Benefits related to our move to Indianapolis shall continue for an employe~ and family until Decem- ber 31, 1982, or 90 days after the official relocation·

date, whichever occurs last. The benefits as described shall not be applied to any other relocation than the Group Move to Indianapolis to be concluded in December, 1982. Benefits described of longer duration shall continue in accordance with the stated provision.

b. All references in these policies to December 31, 1982 shall be construed to mean December 31, 1982 or 90 days after the official relocation date, whichever occurs last.

Record Keeping of Expenses

The tax ramifications involved with relocation require very careful record keeping by both the employee and Kiwanis International. Various Homesale and Transportation of Household Goods expenses will be paid through MLRM. (For other expenses employees must submit expense reports within a~ reasonable time of occurrence, with original receipts, to the Personnel Department on the appropriate forms as indi- cated.) Separate reports should be submitted for the fol- · lowing expenses:

Miscellaneous Moving Expense Form o House Hunting Expenses o Travel Expenses

o Miscellaneous Moving Expenses o Temporary Living Expenses o Various Auto Expenses

o Other Miscellaneous Expenses Real Estate Cost Reimbursement Form

o Closing Costs Associated with Homepurchase o Double House Payments

0

"For Sal~ By Owner" sale or non-MLRM assisted broker sale

-2-

C

(

(

1. 9

Resettlement Allowance Form

0

One Month's Salary for Miscellaneous Expenses Mortgage Interest Differential Form

o To Receive Mortgage Differential Bridge Loan Application Form

o To Apply for Bridge Loan Expenses not Reimbursable

Kiwanis International shall reimburse only for those expen- ses specified within the Group Move Relocation Policy. Any other expenses which arise as a result of special circum- stances will require management approval in advance of expenditure.

1.10 Third Party Company

Merrill Lynch Relocation Management has been retained to assist with the Group Move to Indianapolis. MLRM will be providing comprehensive HomesaleJ Homefinding and Transpor-- ta tion of Household Goods Services in order t.o make your relocation as easy as possible~ An eligible employee wish- ing to initiate MLRM services should contact the Personnel Department in Chicago to begin the process.

2. 0 Sale o:fiHome

2. 1 Homes ale Eligibility -

Homesale benefits provided to Kiwanis International employ- ees shall pertain only to a usual primary residence to include a single family home· on a normal size lot, condo- minium, or an owner occupied duplex.

Any

unusual type of residence would require approval by the management on a case-by-case basis. ·

2.2 MLRM Homesale Initiation

MLRH Hornesale Services should be initiated at least 90 days prior to, the date of the employee's transfer date. If by December 31, 1982, an employee has failed to sell the home independently and failed to initiate the MLRM Homesale Ser- vices or refused the MLRM purchase offer, their no reimburse- ment will be made for any subsequent costs·.

---~ The Appraisal Process

/.,....--- c,c--.:.v( ,ro

~

Employee! will be able to choose two appraisers from a list ( C~f"Jy~ ~-i.~ft~,1f-L~ <?f independent appraisers provided by Merrill Lynch Reloca-

\ ~ v U {)

ljtion Management. To the extent that the appraisals are

~---../within a 5% spread of the higher, they will be averaged to determine the fair market value offer. If the appraisals are not within a 5% spread the employee will be asked to choose a third appraiser and then the two highest will be averaged to determine the fair market value offer.

-3-

(

f

'

(

2.4 Acceptance of Offer

2.5

2.6

2.7

Under the Homesale Services administered by Merrill$' Lynch Relocation Management, employees will be given 60 days from the date of offer to accept or decline the offer price.

Once the offer is accepted, MLRM will either continue the listi~ng with the employee's broker or li~t with another broker at MLRM' s option in an attempt to market the home.

Brokerage Fee

Kiwanis shall pay a brokerage fee based upon a percentage that is customary in the local real estate market.

Legal Fees

Kiwanis shall reimburse the employee for all legal fees normally borne by the seller, according to local custom, in completing the sale of a home. ·

Taxes (Documentary Tax Stamps)/Excise Tax

Kiwanis shall reimburse the employee for Documentary Tax Stamps/Excise Tax, normally borne by the seller, according to local custom in completing the sate of the home.

2.8 Mortgage Discount

Kiwanis shall reimburse for mortgage discoun~ points only when the seller is required to pay, by law, as in the case of an FHA or

VA

loan. The prevailing number of points will

,~~

reimbursed up to 5 points. Higher amounts shall require approval of management. Mortgage discount. will not be grossed-up since it is a tax deductible item.

2.9 Inspection of Premises

Kiwanis shall reimburse the employee for inspection of premises when expense is normally borne by seller according to local custom when completing the sale of a home. Any repairs, remodeling or termite work will be done at the expense of the employee.

2.10 Title Insurance

Kiwanis shall reimburse for owners Title Policy when a normal cost borne by the seller to accomplish homesale.

2.11 Pre-Payment Penalty

Kiwanis shall reimburse a mortgage pre-payment penalty on an existing primary or secondary loan upon proper verification of the amount from the lending institution. Reimbursement for Pre-Payment Penalty will not be grossed-up since it is a tax deductible item.

2.12 ·Self-Sale

Employees who choose to sell '

¹

for sale by owner" or who do not accept the MLRM offer will be eligible for reimbursement of normal homesale costs provided the transaction is com- pleted prior to December of 1982. Employees who choose the self-sale option, however, will not be grossed-up for reim- bursements related to homesale.

-4-