Exhibit 10.20


 


EMPLOYMENT AGREEMENT


 


This
EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of April 11,
2005, by and between The Wornick Company, a Delaware corporation (the “Company”),
and Michael M. Thompson (“Employee”).


 


RECITAL


 


The Company
desires to employ Employee, and Employee is willing to accept employment by the
Company, in each case on the terms and subject to the conditions set forth in
this Agreement.  NOW, THEREFORE, the
parties hereto hereby agree as follows:


 


AGREEMENT


 


1.                                       Position
and Duties.


 


1.1                                 During
the term of this Agreement, Employee agrees to be employed by and to serve the
Company and/or one or more of the Company’s subsidiaries on a full-time basis
as President and Chief Executive Officer of the Company and/or such other title
or titles as may be assigned to him by the Chairman or the Board of Directors
of the Company, and to perform such duties consistent with such position or
positions as may be assigned to him from time to time by the Chairman or the
Board of Directors of the Company. 
Employee’s principal place of business with respect to his services to
the Company shall be Cincinnati, Ohio, provided that Employee agrees to
undertake such travel as may be required in the performance of his duties.  All travel expenses of Employee shall be
reimbursed in accordance with Section 3.6 (b ) below.


 


1.2                                 Employee
shall carry out his duties under the general supervision and direction of the
Chairman and the Board of Directors of the Company and/or their designees in
accordance with the Company’s policies, rules and procedures in force from
time to time.


 


1.3                                 Employee
shall devote his full time, attention, skill and efforts to his tasks and
duties hereunder and to the affairs of the Company.  Without the prior written consent of the
Company, Employee shall not provide services for compensation to any other
person or business entity while employed by the Company or be engaged in any
other business activity, whether or not such other business activity is pursued
for profit on pecuniary advantage.


 


2.                                       Term
of Employment.


 


2.1                                 Basic
Term.  The term of employment under
this Agreement (the “Term”) began effective as of November 30, 2004 and
shall continue through December 31, 2005 (the “Expiration Date”), unless
earlier terminated in accordance with Article 2 or extended pursuant to
the following sentence.  Unless written
notice is given by the Company or Employee to the other party at least ninety
(90)  days prior to the Expiration Date
(or any later date to which the Term shall have been extended in accordance
with this Section 2.1) advising such other party that the party giving
such notice does not desire to extend or further extend this Agreement, the
Term shall automatically be extended for an additional one-year period without further
action of the parties.


 





















 


2.2                                 Termination
for Cause.  Termination for Cause (as
defined in Section 2.8 below) may be effected by the Company at any time
during the Term of this Agreement and shall be effected by written notification
to Employee from the Chairman or the Board of Directors stating the reason for
termination.  Such termination shall be
effective immediately upon the giving of such notice, unless the Chairman or
the Board of Directors shall otherwise determine.  Upon Termination for Cause, Employee shall be
paid all accrued salary, any benefits under any plans of the Company in which
Employee is a participant to the full extent of Employee’s rights under such
plans, accrued vacation pay and any appropriate business expenses incurred by Employee
in connection with his duties hereunder prior to such termination, all to the
date of termination, but Employee shall not be entitled to any other
compensation or reimbursement of any kind, including without limitation
severance compensation.


 


2.3                                 Termination
at Will.  Notwithstanding anything
else in this Agreement, the Company may effect a Termination at Will (as
defined in Section 2.8 below) at any time during the Term of this
Agreement upon giving written notice to Employee of such termination.  Upon any Termination at Will, Employee shall
be paid all accrued salary, any benefits under any plans of the Company in
which Employee is a participant to the full extent of Employee’s rights under
such plans, accrued vacation pay and any appropriate business expenses incurred
by Employee in connection with his duties hereunder, all to the date of
termination, and all severance compensation required under Section 4.1,
but no other compensation or reimbursement of any kind. The Company may effect
a Termination at Will by giving sixty (60) days’ written notice to Employee of
such termination.


 


2.4                                 Termination
by Reason of Disability.  If, during
the Term of this Agreement, a physician selected by the Company certifies that
Employee has become physically or mentally incapacitated or unable to perform
his full-time duties under this Agreement, and that such incapacity has
continued or will continue for a period of five consecutive months or 180
calendar days within any period of 365 consecutive days, the Company shall have
the right to terminate Employee’s employment hereunder by written notification
to Employee, and such termination shall be effective on the seventh (7th) day
following the giving of such notice (“Termination by Reason of Disability”).  In such event, the Company will pay to
Employee all accrued salary, any benefits under any plans of the Company in
which Employee is a participant to the full extent of Employee’s rights under
such plans, accrued vacation pay and any appropriate business expenses incurred
by Employee in connection with his duties hereunder, all to the date of
termination, and all severance compensation required under Section 4.1,
but Employee shall not be paid any other compensation or reimbursement of any
kind.  In the event of a Termination by
Reason of Disability, upon the termination of the disability, the Company will
use its best efforts to reemploy Employee, provided that such reemployment need
not be in the same capacity or at the same salary or benefits level as in
effect prior to the Termination by Reason of Disability.


 


2.5                                 Termination
by Death.  In the event of Employee’s
death during the Term of this Agreement, Employee’s employment shall be deemed
to have terminated as of the last day of the month during which his death
occurs and the Company shall pay to his estate or such beneficiaries, as
Employee may from time to time designate all accrued salary, any benefits under
any plans of the Company in which Employee is a participant to the full extent
of Employee’s rights under such plans, accrued vacation pay and any appropriate
business expenses


 


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incurred by Employee in connection with his
duties hereunder, all to the date of termination, but Employee’s estate shall
not be paid any other compensation or reimbursement of any kind, including
without limitation, severance compensation.


 


2.6                                 Voluntary
Termination.  In the event of a
Voluntary Termination (as defined in Section 2.8 below), the Company shall
pay to Employee all accrued salary, bonus compensation to the extent earned,
any benefits under any plans of the Company in which Employee is a participant
to the full extent of Employee’s rights under such plans, accrued vacation pay
and any appropriate business expenses incurred by Employee in connection with
his duties hereunder, all to the date of termination, but no other compensation
or reimbursement of any kind, including without limitation, severance
compensation. Employee may effect a Voluntary Termination by giving sixty (60)
days’ written notice of such termination to the Company.


 


2.7                                 Employee’s
Obligation Upon Termination. Upon the Termination of Employee’s employment
for any reason, Employee shall within ten (10) days of such termination
return to the Company all personal property and proprietary information in
Employee’s possession belonging to the Company. 
Unless and until all such property and information is returned to the
Company (which shall be determined by the Company’s standard termination and
check-out procedures), the Company shall have no obligation to make any payment
of any kind to Employee hereunder.


 


2.8                                 Definitions.  For purposes of this Agreement the following
terms shall have the following meanings:


 


(a)  “Termination for Cause”
shall mean termination by the Company of Employee’s employment by the Company
by reason of:


 


(i)                                     Employee’s
willful dishonesty towards, fraud upon, or deliberate injury or attempted
injury to, or breach of fiduciary duty to, the Company;


 


(ii)                                  Employee’s
material breach of this Agreement, including any Exhibit hereto, or any
other agreement to which Employee and the Company are parties;


 


(iii)                               Drug
or alcohol abuse;


 


(iv)                              Conduct
by Employee, whether or not in connection with the performance of the duties
contemplated hereunder, that would result in serious prejudice to the interests
of the Company if Employee were to continue to be employed, including, without
limitation, the conviction of a felony or a good faith determination by the
Board of Directors that Employee has committed acts involving moral turpitude;
or


 


(v)                                 Any
material violation of any rule, regulation or policy of the Company by Employee
or Employee’s failure to follow reasonable instructions or directions of the
Chairman or the Board of Directors of the


 


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Company or any
policy, rule or procedure of the Company in force from time to time.


 


(b)  “Termination at Will” shall
mean termination by the Company of Employee’s employment by the Company other
than (i) Termination for Cause, (ii) Termination by Reason or
Disability (iii) termination by reason of Employee’s death as  described in Section 2.5, and (iv) Voluntary
Termination.


 


(c)  “Voluntary Termination”
shall mean termination by Employee of Employee’s employment other than (i) Termination
by Reason of Disability and (ii) termination by reason of Employee’s death
as described in Section 2.5.


 


3.                                       Salary,
Benefits and Bonus Compensation.


 


3.1                                 Base
Salary.  As payment for the services
to be rendered by Employee as provided in Section 1 and subject to the
terms and conditions of Section 2, the Company agrees to pay to Employee a
“Base Salary” at the rate of $325,000 per annum payable in accordance with the
Company’s regular payroll practices. 
Such rate and Employee’s performance shall be reviewed by the Company’s
Board of Directors on an annual basis, commencing January 1, 2006, for a
determination of whether an adjustment in Employee’s Base Salary should be
made, which adjustment shall be in sole discretion of the Company’s Board of
Directors.


 


3.2                                 Annual
Bonus. Employee shall be entitled to an annual bonus of 60% of Employee’s
Base Salary based upon the Company achieving certain performance goals mutually
agreed upon in writing by the Company and Employee; provided, however,
that for the twelve-month period ending December 31, 2005, one-half of the
annual bonus is guaranteed.


 


3.3                                 Equity
Award.  Employee shall be entitled to
an award of up to 2.5% of the Class B Membership Interests of TWC Holding
LLC, a Delaware limited liability company and the owner of all of the
outstanding common stock of the Company, at nominal or no cost, which equity
award shall vest over a five-year period, subject to acceleration upon a change
of control of the Company, all pursuant to the terms and conditions of the
Limited Liability Company Operating Agreement of TWC Holding LLC, a copy of
which has been furnished to Employee.


 


3.4                                 Additional
Benefits.  During the Term of this
Agreement, Employee shall be entitled to the following fringe benefits:


 


(a)  Employee Benefits. 
Employee shall be included in all group insurance plans and other
benefit plans and programs made available to management employees of the
Company.


 


(b)  Vacation.  Employee
shall be entitled to four weeks vacation during each twelve-month period.


 


(c)  Reimbursement for Expenses. 
The Company shall reimburse Employee for reasonable and properly
documented out-of-pocket business and/or entertainment expenses incurred by
Employee in connection with his duties under this


 


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Agreement in
accordance with the Company’s reimbursement policy in effect from time to time.


 


4.                                       Severance
Compensation.


 


4.1                                 Severance
Compensation in the Event of a Termination at Will or Termination by Reason of
Disability.  In the event Employee’s
employment is terminated in a Termination At Will or a Termination by Reason of
Disability prior to the end of the then current Term, Employee shall be
entitled to receive his most recent Base Salary and insurance coverage (less
any state unemployment or any other compensation earned from alternative
employment and less any disability insurance proceeds) from the date of
termination to twelve months from the date of termination and bonus
compensation to the extent earned.  Such
severance compensation is the only compensation to which Employee shall be
entitled following a Termination at Will or a Termination by Reason of
Disability.


 


4.2                                 Acceleration
of Payments.  The Company may, in the
Company’s sole discretion, if Employee so requests within thirty (30) days
following a Termination at Will or a Termination by Reason of Disability, elect
to pay to Employee a lump sum severance payment by bank cashier’s check equal
to the present value of the flow of cash payments that would otherwise be paid
to Employee pursuant to Section 4.1 above. 
Such present value shall be determined as of the date of payment and
shall be based on a discount rate equal to the interest rate on 90-day
U.S. Treasury bills, as reported in the Wall Street Journal (or similar
publication), on the date of payment.  If
the Company elects to make a lump sum severance payment, the Company shall make
such payment to Employee within ten (10) days following the date on which
the Company notifies Employee of its agreement to make a lump sum payment.


 


4.3                                 No
Severance Compensation Under Other Termination.  In the event of a Voluntary Termination,
Termination for Cause, or termination by reason of Employee’s death, neither
Employee nor his estate shall be paid any severance compensation.


 


5.                                       Other
Agreements.  Employee agrees that to
induce the Company to enter into this Agreement, he has concurrently executed
and delivered to the Company (a) an Employee Non-Disclosure Agreement and
Proprietary Rights Assignment dated as of even date herewith, in the form of Exhibit A
hereto, and (b) a Non-Solicitation and Non-Competition Agreement dated as
of even date herewith, in the form of Exhibit B hereto.    Employee hereby covenants and agrees to
fully abide by each and every term of such agreements, and agrees and
understands that a breach or violation by Employee of any provision of any
provision of either of such agreements shall constitute grounds for Termination
for Cause under Section 2.8(a)(ii) of this Agreement, and that no
such termination shall limit or affect any other rights and remedies of the
Company arising out of or in connection with any such breach or violation.  The covenants on the part of Employee
contained in such agreements shall survive termination of this Agreement,
regardless of the reason for such termination. 
Employee hereby represents and acknowledges that the Company is relying
on the covenants contained in such agreements in entering into this Agreement,
and that the terms and conditions of the covenants contained in such agreements
are fair and reasonable.


 


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6.                                       Miscellaneous.


 


6.1                                 Waiver.  The waiver of the breach of any provision of
this Agreement shall not operate or be construed as a waiver of any subsequent
breach of the same or other provision hereof.


 


6.2                                 Entire
Agreement; Modifications.  This
Agreement represents the entire understanding among the parties with respect to
the subject matter hereof, and this Agreement supersedes any and all prior
understandings, agreements, plans and negotiations, whether written or oral
with respect to the subject matter hereof including without limitation, any
understandings, agreements or obligations respecting any past or future
compensation, bonuses, reimbursements or other payments to Employee from the
Company.  All modifications to this
Agreement must be in writing and signed by both parties hereto.


 


6.3                                 Notices.  All notices and other communications under
this Agreement shall be in writing and shall be given by first class mail,
certified or registered with return receipt requested, and shall be deemed to
have been duly given three (3) days after mailing to the respective
persons named below:


 


If to the Company:


 


The Wornick Company.


c/o Veritas Capital Management II, LLC


660 Madison Avenue


New York, New York  10021


Attn:  Mr. Robert
B. McKeon


 


If to Employee:


 


Michael M. Thompson


4866 West Jensen Lane


Dayton, ID 
83232


 


Any party may change such party’s address for notices by notice duly
given pursuant to this Section 6.3.


 


6.4                                 Headings.  The Section headings herein are intended
for reference and shall not by themselves determine the construction or
interpretation of this Agreement.


 


6.5                                 Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of New York.


 


6.6                                 Severability.  Should a court or other body of competent
jurisdiction determine that any provision of this Agreement is invalid or
unenforceable, such provision shall be adjusted 
rather than voided, if possible, and all other provisions of this
Agreement shall be deemed valid and enforceable to the extent possible.


 


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6.7                                 Benefits
of Agreement.  The provisions of this
Agreement shall be binding upon and inure to the benefit of the executors,
administrators, heirs, successors and assigns of the parties; provided,
however, that except as herein expressly provided, this Agreement shall not be
assignable either by the Company (except to an affiliate of the Company) or by
Employee.


 


6.8                                 Counterparts.  This Agreement may be executed in one or more
counterparts, all of which taken together shall constitute one and the same
Agreement.


 


6.9                                 Withholdings.  All compensation and benefits to Employee
hereunder shall be reduced by all federal, state, local and other withholdings
and similar taxes and payments required by applicable law.


 


6.10                           Remedies.  All rights and remedies of the Company
hereunder shall be cumulative and the exercise of any right or remedy shall not
preclude the exercise of another.


 


6.11                           Interpretation
Review.  Both parties to this
Agreement have been represented by counsel in the negotiation and execution of
this Agreement, and no inference shall be drawn against the drafting
party.  Employee acknowledges that he has
in fact reviewed and discussed this Agreement with his counsel and that he
understands and assents to the terms hereof.


 


6.12                           Arbitration.  Any controversy or claim arising out of or
relating to this agreement, or breach thereof (other than any action by the
Company seeking an injunction or equitable relief under the employee
Non-Disclosure Agreement and Proprietary Rights Assignment or the
Non-Solicitation and Non-Competition Agreement executed by the Employee, as
amended from time to time) shall be settled by binding arbitration to be held
in New York, New York, in accordance with the Rules of the American
Arbitration Association, and judgment upon any proper award rendered by the
arbitrators may be entered in any court having jurisdiction thereof. There
shall be three (3) arbitrators, one (1) to be chosen directly by each
party at will, and the third arbitrator to be selected by the two (2) arbitrators
so chosen. To the extent permitted by the rules of the American
Arbitration Association, the selected arbitrators may grant equitable relief.
Each party shall pay the fees of the arbitrator selected by him and his own
attorneys, and the expenses of his witnesses and all other expenses connected
with the presentation of his case. The cost of the arbitration including the
cost of the record of transcripts thereof, in any, administrative fees, and all
other fees and cost shall be borne equally by the parties.


 


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


 


	
   

  	
  THE WORNICK COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  B. McKeon

  	
   

  
	
   

  	
   

  	
  Robert B. McKeon, Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Michael
  M. Thompson

  	
   

  
	
   

  	
  Michael M. Thompson

  
					



 





















 


Exhibit A


 


EMPLOYEE NON-DISCLOSURE AGREEMENT AND
PROPRIETARY RIGHTS ASSIGNMENT


 


In return for
new or continued employment by The Wornick Company (the “Company”), the
undersigned, Michael M. Thompson, agrees as follows:


 


1.                                       I
agree to promptly disclose and describe to the Company all ideas, inventions,
improvements, discoveries, enhancements, modifications, technical developments,
and works of authorship (including all writings, computer programs, software
and firmware), whether or not patentable or copyrightable, and whether in oral,
written, or in machine readable form, which relate to or are useful to the
Company’s business as presently conducted or as it may be conducted in the
future, which are conceived, reduced to practice, or authored by me, solely or
jointly with others, at any future time within the scope of my employment or
with the use of the Company’s time, material, facilities or funds (the “Work
Product”).


 


2.                                       I
hereby assign to the Company my entire right to all of the Work Product and
agree that the Work Product is and will be the sole and exclusive property of
the Company.  I will not, however, be
required to assign to the Company any invention that I developed entirely on my
own time without using the Company’s funds, equipment, materials or facilities,
unless such invention either:  (i) relates
to the Company’s business or actual or demonstrably anticipated research or
development of the Company, or (ii) results from or is related to or
suggested by any Company research, development or other activities, including
without limitation any work performed by me for the Company.  I agree to take any acts and to execute any
documents that the Company reasonably requests in order to evidence any
assignment that I am required to make under this paragraph.  Except for any written agreement between me
and the Company, I will not be entitled to any royalty, commission, or other
payment or license or right with respect to the Work Product.


 


3.                                       No
Work Product will be made available by me to others during or following the
term of my employment unless the Company consents in writing.


 


4.                                       I
hereby grant and agree to grant to the Company the right to obtain, for its
benefit and in its name, patents and patent applications (including without
limitation original, continuation, reissue, utility and design patents, patents
of addition, confirmation patents, registration patents, utility models, etc.,
and all other types of patents and the like, and all renewals and extensions of
any of them) for the Work Product in all countries.


 


5.                                       Both
during and after the term of my employment, I will maintain in confidence, and
will not disclosure or use or retain for my benefit or the benefit of anyone
other than the Company any secret, proprietary or confidential information or
trade secrets or know-how belonging to or in the possession of the Company (the
“Proprietary Information”), except to the extent required to perform my
assigned duties on behalf of the Company in my capacity as an employee of the
Company.  The Proprietary Information
which I agree to maintain in confidence includes, but is not limited to,
technical and business information relating to the Company’s inventions or
products, research and development, finances, customers, marketing, future


 





















 


business
plans, machines, equipment, services, systems, supply sources, cost of
operations, business dealings, pricing methods, regulatory matters, software,
contracts, contract performance, formulae, processes, business methods, and any
information belonging to customers and suppliers of the Company which may have
been disclosed to me as the result my being as an employee of the Company.  My promise to maintain the confidentiality of
the Proprietary Information will apply whether or not the Proprietary
Information is in written or permanent form, whether or not is was developed by
me or by others employed by the Company or was obtained by the Company from
third parties, and whether or not the Proprietary Information has been
identified by the Company as secret or confidential.


 


6.                                       All
records, reports, notes, compilations or other recorded matter, and any copies
or reproductions thereof, that relate to the Company’s operations, activities,
or business, which were made or received by me during the term of my employment
(the “Company Materials”) are and shall continue forever to be the Company’s
exclusive property, and I will keep the same at all times in the Company’s
custody and subject to its control.  Upon
termination of my employment or at the request of the Company before termination,
I will deliver to the Company all written and tangible material in my
possession incorporating the Work Product, the Proprietary Information and the
Company Materials.


 


7.                                       I
agree to cooperate with the Company or its designees, both during and after the
term of my employment, in procuring, maintaining and protecting the Company’s
rights in the Work Product and the Proprietary Information, including without
limitation patents and copyrights.  I
will sign all papers which the Company deems necessary or desirable for the
procurement, maintenance and protection of such rights.  I will keep and maintain adequate and current
written records of all Work Product in the form of notes, sketches, drawings,
or reports related to the Work product in the manner and form requested by the
Company, and such records shall be and remain the property of the Company and
be available to the Company at all times.


 


8.                                       To
the best of my knowledge there is no other contract or duty on my part now in
existence to assign Work Product or that is inconsistent with this
Agreement.  I will not disclose or induce
the Company to use or bring onto the Company’s premises any confidential
information or material that I am now aware of or become aware of which belongs
to anyone other than the Company.  During
my employment by the Company, I will not accept or engage in any employment,
consulting, or other activity (a) detrimental or incompatible with my
obligations to the Company, including without limitation my obligations under
this Agreement, or (b) in any business competitive with the Company’s
business as it is presently conducted or as it may be conducted at any future
time during my employment.


 


9.                                       I
acknowledge that my obligations and promises under this Agreement are of a
unique and intellectual character which give them particular value.  A breach of any of the promises or agreements
contained herein will result in irreparable and continuing damage to the
Company for which there will be no adequate remedy at law, and I agree that in
addition to any other rights and remedies of the Company for such breach
(including monetary damages, if appropriate), the Company is entitled to
injunctive relieve and/or a decree for specific performance without the
necessity of proving actual damages to the Company if I breach this
Agreement.  All rights and remedies of
the Company for a breach by me of this Agreement shall


 


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be cumulative
and the exercise of any right or remedy by the Company will not preclude the
exercise of another.


 


10.                                 Unless
there is a written employment agreement for a specified term in effect between
me and the Company, my employment may be terminated at any time, with or
without cause, by me or the Company; however, such termination will not affect
the Company’s rights or my obligations under this Agreement.  This Agreement represents the entire
understanding between me and the Company as to the subject matter hereof.  This Agreement may not be modified or amended
except in a written document signed by me and the Company.  This Agreement shall inure to the benefit of
the Company’s successors and assigns and shall be binding on my heirs,
administrators and legal representatives.


 


11.                                 If
the Company waives a breach by me of any provision of this Agreement, such
waiver shall not operate or be construed as a waiver of any other or subsequent
breach by me.  If any provision of this
Agreement is held to be invalid, void, or unenforceable, the remaining
provisions shall nevertheless continue in full force and effect without being
impaired or invalidated in any way.


 


12.                                 I
agree that my promises contained in this Agreement are a material inducement to
the Company’s giving me employment, that the matters I have agreed to are fair
and reasonable under the circumstances, that any Proprietary Information I
receive during the course of my employment may affect the effective and
successful conduct of the Company’s business and goodwill, and that the
proprietary Information is provided to me in confidence due to my employment
and my need to know such information in order to completely and competently
perform my duties and obligations on behalf of the Company.


 


13.                                 This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York.


 


Dated as April 11, 2005


 


 


	
   

  	
  /s/ Michael M. Thompson

  	
   

  
	
   

  	
  Michael M. Thompson

  



 


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Exhibit B


 


NON-SOLICITATION AND NON-COMPETITION
AGREEMENT


 


This
Non-Solicitation and Non-Competition Agreement (“Agreement”) is made and
entered into as of the date set forth below, by Michael M. Thompson (“Employee”)
in favor and for the benefit of The Wornick Company, a Delaware corporation
(the “Company”).


 


RECITAL


 


In order to
induce the Company to enter into and perform that certain Employment Agreement
dated as of even date herewith between the Company and Employee (the “Employment
Agreement”, capitalized terms used but not defined herein being used herein as
therein defined), and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Employee hereby agrees as
follows:


 


1.                                       Non-Solicitation;
Non-Competition.  During the Term of
employment (as it may be extended from time to time under the Employment
Agreement) and for a period of one (1) year thereafter (the Term of
employment and said one year being the “Non-Competition Period”), Employee
shall not, without the Company’s prior written consent, directly or indirectly,
(a) call on any person or entity who, at the time of such call, is a
customer of the Company or any parent or subsidiary of the Company, with
respect to the purchase of any goods or services which are, at the time, being
offered by the Company or any parent or subsidiary of the Company or which are
under development by the Company or any parent or subsidiary of the Company at
the time of Employee’s employment, (b) solicit or induce or attempt to
solicit or induce any customer of the Company or any parent or subsidiary of
the Company to reduce, or take any action which would reduce, its business with
the Company or any parent or subsidiary of the Company, (c) solicit or
attempt to solicit any employees of the Company or any parent or subsidiary of
the Company to leave the employ of the Company or any parent or subsidiary of
the Company, or (d) hire any employees or former employees of the Company
or any parent or subsidiary of the Company or cause any entity with which
Employee is affiliated or in which Employee owns an equity interest to hire any
such employees or former employees.  As
used herein, the term “former employee” means a person who has been an employee
of the Company or any parent or subsidiary of the Company within the
twelve-month period prior to the date of determination.


 


2.                                       Notice
of Subsequent Employment.  Employee
agrees that during the Non-Competition Period Employee will keep the Company
informed of the names and addresses of all persons, firms or corporations by or
for whom he is employed from time to time, or for whom he acts as agent or
consultant or in whom he may own any one percent (1%) or more equity interest;
and Employee also agrees that if, during such time, he conducts any business on
his own account or as a partner or co-venturer, he shall keep the Company
informed of that fact and of the nature, names and addresses of such business
as conducted from time to time.


 


3.                                       Breach.  Employee agrees that a remedy at law for
breach of the covenants contained herein would be inadequate, that the Company
would suffer irreparable harm as a result of such breach and that in addition
to any other rights and remedies of the Company for


 





















 


such breach, the Company shall be entitled to
apply to a court of competent jurisdiction for temporary and permanent
injunction or an order for specific performance of such covenants without the
necessity of proving actual damage to the Company, and, if the Company
prevails, to recover from Employee all costs of any such action brought by the
Company, including without limitation reasonable attorneys’ fees and expenses.


 


4.                                       Enforcement.  It is the desire and intent of Employee that
the covenants of Employee contained herein shall be enforced to the fullest
extent permissible under the laws and public policies of each jurisdiction in
which enforcement is sought.  If any
particular provision(s) of this Agreement shall be adjudicated to be invalid or
unenforceable, such provision(s) shall be deemed amended to provide
restrictions to the fullest extent permissible, consistent with applicable law
and policies, and such amendment shall apply only with respect to the
particular jurisdiction in which such adjudication is made.  If such deemed amendment is not allowed by
the adjudicating body, the offending provision shall be deleted and the
remainder of this Agreement shall not be affected.  This Agreement shall be in addition to and
not in lieu of any other noncompetition or similar covenants of Employee
entered into prior to or after the date hereof (unless otherwise provided in a
written agreement signed by the Company).


 


5.                                       Miscellaneous.


 


5.1                                 Waiver.  The waiver of the breach of any provision of
this Agreement shall not operate or be construed as a waiver of any subsequent
breach of the same or other provision hereof.


 


5.2                                 Modification;
Amendment.  Any modification or
amendment to this Agreement must be in writing and signed by the Company and
Employee.


 


5.3                                 Notices.  All notices and other communications under
this Agreement shall be in writing and shall be given as specified in Section 6.3
of the Employment Agreement.


 


5.4                                 Headings.  The Section headings herein are intended
for reference and shall not by themselves determine the construction or
interpretation of this Agreement.


 


5.5                                 Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of New York.


 


5.6                                 Severability.  Should a court or other body of competent
jurisdiction determine that any provision of this Agreement is excessive in
scope or otherwise invalid or unenforceable, such provision shall be adjusted rather
than voided, if possible, and all other provisions of this Agreement shall be
deemed valid and enforceable to the extent possible.


 


5.7                                 Benefits
of Agreement.  The provisions of this
Agreement shall be binding upon the executors, administrators, heirs,
successors and assigns of Employee, and shall inure to the benefit of the
Company and its successors and assigns.


 


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5.8                                 Remedies.  All rights and remedies of the Company
hereunder shall be cumulative and the exercise of any right or remedy shall not
preclude the exercise of another.


 


5.9                                 Interpretation;
Review.  Employee acknowledges that
he has in fact reviewed and discussed this Agreement with his counsel and that
he understands and voluntarily agrees to all of the terms hereof.


 


IN WITNESS
WHEREOF, the undersigned Employee has executed this Agreement as of April 11,
2005.


 


 


	
   

  	
  /s/ Michael M. Thompson

  	
   

  
	
   

  	
  Michael M. Thompson

  



 


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