April 26, 2005

 

 

Mr. Bob Dimond

17595 Belfast Cove

Eden Prarie, MN 55347

 

 

Dear Bob:

 

This letter confirms our offer of employment made to you for theposition of Chief Financial Officer reporting to Perry Odak, CEO. Your base pay will be$290,000, payable bi-weekly at the rate of $11,153.85. You will also have the opportunityto receive a targeted bonus of 50% of your annual salary under the terms of the Wild OatsMarkets, Inc. Home Office Incentive Plan. The bonus program is based on achieving companyperformance and individual performance objectives. In addition, subject to your continuingto be employed with the Company, you will receive a guaranteed bonus of $36,250, payablewithin 30 days after year-end earnings release, for the first year only of youremployment. If you receive an additional bonus under the Home Office Incentive Plan, theamount of your guaranteed bonus will be deducted from the additional bonus received. 

 

We are extremely excited to have you join the Wild Oats Markets team.The education and work experience background you will bring to the position will help usto obtain goals we have set as a growing organization. 

 

As an inducement to have you accept our offer of employment, theCompany will establish an incentive stock option plan in your name and will make you agrant of 100,000 incentive and nonqualified (based upon applicable tax laws) stock optionsfor shares of Wild Oats Markets common stock. The strike price will be equal to the marketvalue of Wild Oats Markets common stock on your start date.

 

You will be eligible for 20 days accrued vacation for each year ofemployment. You have specifically requested time off from July 8th to JuIy 23rd,which will be honored as part of your vacation time.

 

Wild Oats Markets, Inc. will reimburse you for approved relocation expenses up to$75,000, plus gross-up for taxes, in addition to four months temporary living whichincludes the movement of household goods. For relocation policy guidance, please contactDanielle Boyd at 720-562-4694. Wild Oats Markets, Inc. has contracted with Relo Direct,Inc. as our third party administrator for all relocations. The following terms andconditions apply to reimbursement for relocation expenses:- You must provide paid receipts or a direct invoice (moving company) showing the expenses    incurred to obtain reimbursement. 
- You understand that if you are terminated for cause or voluntarily terminate your    employment with Wild Oats Markets, Inc. within one year from the date you commenced    working (as opposed to your Hire date), then you will reimburse Wild Oats Markets, Inc. in    full for the moving expenses provided to you. 

Upon the start of your employment, you will be scheduled to meet with your supervisorto complete the new hire forms. Since the law now requires us to verify your authority towork in the United States, be 

Bob Dimond

April 26, 2005

Page 2

 

sure to bring documentation that will permit Wild Oats Markets to verify youreligibility. Most common documents provided are Drivers License, State Birth Certificatesor Passport and Social Security Card. 

 

Later in the month, you will attend Wild Oats Markets' orientation,which offers a more in-depth exploration of the origination of Wild Oats Markets,logistics, and a tour of the facilities.

 

The terms of this letter do not imply employment for a specific period.Your employment is at will; which means that either you or the Company can terminate youremployment at any time, with or without cause. 

 

In addition, you and the Company will enter into a Severance Agreement,in form and substance substantially similar to that attached to this letter as Attachment1, that will provide for the lump sum payment of two times your annual compensation,continuation of benefits and payment of your average bonus in the event that youremployment is terminated in conjunction with a Change in Control, as defined in theattachment, in the Company.

 

If your employment is terminated by the Company without Cause (which isdefined on Attachment 2 to this letter) during the first 18 months thereof (which shallnot be extended by any renewal of this Agreement), you shall be entitled to receive yourthen effective Base Salary for a 12-month period. After 18 months of employment, theseverance payment is reduced as follows:
- 19 months of employment = 11months severance 
- 20 months of employment = 10 months severance 
- 21 months of employment = 9 months severance 
- 22 months of employment = 8 months severance 
- 23 months of employment = 7 months severance 
- 24 months of employment = 6 months severance 

 

After 24 months of employment the severance stays at 6 months ofseverance. This severance is not in addition to and will not be payable in the event ofany payment of severance under the terms of the Severance Agreement.

All severance amounts shall be payable in equal biweekly installments,subject to all applicable deductions, in accordance with the Company's normal payrollschedule. Notwithstanding anything to the contrary herein, no renewal of the term ofExecutive's employment shall increase the number of months of severance to which theExecutive may be entitled.

Except as expressly set forth in this letter or in any other agreements, such as theSeverance Agreement, entered into between you and the Company, all compensation and otherbenefits shall cease to accrue upon termination of your employment. Upon termination ofyour employment for any reason, you shall be deemed to have resigned from all offices anddirectorships, if any, then held with the Company or any of its subsidiaries or otheraffiliates.

 

Bob Dimond

April 26, 2005

Page 3

 

 

Formally your official start date will be April 28, 2005.

 

Congratulations and welcome to Wild Oats Markets.

 

Sincerely,

 

 

* 
/s/ Peter Williams

 

Peter Williams

Vice President of Human Resources 

 

 

I have read the letter completely & understand and agree to theterms. I understand I am an "at will" employee.

 

 

/s/ Robert B. Dimond     4/26/05

NAME                          DATE

 

** 
 

**Please make a copy for your records and return the original to theattention of the Compensation Department.

 

 

Attachments (2)

 

 

 

 

 

 

 

 

 

 

 

 

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