Exhibit 10.35


 


TODHUNTER INTERNATIONAL, INC.


222 Lakeview Avenue, Suite 1500


West Palm Beach, FL 33401


 


SALARY CONTINUATION PLAN AGREEMENT


 


THIS SALARY CONTINUATION PLAN AGREEMENT (this “Agreement” or the “Plan”) is entered
into this 20th day of February 2004, between Todhunter
International, Inc., a Delaware corporation (hereinafter referred to as the
“Corporation”), and Chester Brandes  (the “Executive”).


 


WITNESSETH:


 


WHEREAS,
the Executive is employed by the Corporation; and


 


WHEREAS,
the Corporation recognizes the valuable services performed by the Executive and
wishes to encourage his continued employment; and


 


WHEREAS,
the Executive wishes to be assured that (i) he will be entitled to a certain
amount of additional compensation for some definite period of time from and
after his retirement from active service with the Corporation or other
termination of his employment; (ii) he will be entitled to a disability benefit
in the event of his disability; and (iii) his estate will be entitled to a
death benefit after the Executive’s death if such death occurs during the
Executive’s employment with the Corporation; and


 


WHEREAS,
the parties hereto wish to provide the terms and conditions upon which the
Corporation shall pay such retirement benefit, disability benefit or death
benefit; and


 


WHEREAS,
the parties hereto intend that this Agreement be considered an un-funded
arrangement, maintained primarily to provide deferred compensation benefits for
the Executive, a member of a select group of management or highly compensated
Executives of the Corporation, for purposes of the Employee Retirement Security
Act of 1974, as amended (“ERISA”);


 


NOW THEREFORE, in consideration of the premises and of the mutual promises herein
contained, the parties hereto agree as follows:


 


1.             Retirement Benefit.


 


A.            From
and after termination of the Executive’s employment, after the attainment of
age 65, other than by reason of his death, the Corporation shall thereafter pay
the Executive the sum of $45,000.00 per annum for a period of fifteen
(15) years, payable in equal monthly installments, commencing with the first
day of the month following such termination. Retirement prior to age 65 with
the consent of the Corporation shall result in a retirement benefit based on a
fraction, the denominator of which is anticipated years of service to age 65
from February
20, 2004 and the numerator of which is actual years of service
from such date.  The fraction so derived
shall be applied to the above stated retirement benefit resulting in the reduced
early retirement benefit.


 

















 


B.            In
the event of the Executive’s death after termination of his employment, but
prior to the expiration of said fifteen (15) year period, the Corporation shall
continue to make said payments during the remainder of said fifteen (15) year
period to the Executive’s estate.


 


2.             Death Benefit.  The
Executive and the Corporation have entered into an Endorsement Split-Dollar
Agreement dated February 20, 2004 that provides for the
payment of certain death benefits to the Executive’s estate if the Executive
dies while such Endorsement Split-Dollar Agreement is in force.  It is the intent of the Corporation and the
Executive that: (A) in all events the Endorsement Split-Dollar Agreement will
be cancelled and no death benefit will be paid to the Executive’s estate once
the executive becomes entitled to receive the retirement benefit payments set
forth in Paragraph 1.A; and (B) the Executive will be entitled to receive the
death benefits set forth in Endorsement Split-Dollar Agreement only if he dies
while such agreement is in force, that is during the Executive’s employment
with the Corporation or after a Change in Control provided the Executive has
not become entitled to receive the retirement benefit payments set forth in
Paragraph 1.A.


 


3.             Disability Benefit.  In the
event that the Executive becomes “permanently and totally disabled,” within the
meaning of § 22 (e)(3) of the Internal Revenue Code of 1986, as amended (the
“Code”), as determined by the Corporation, while in the employ of the
Corporation, the Corporation shall pay the Executive a disability benefit in
substantially equal installments over a period of sixty (60) months. The amount
of such monthly disability benefit shall be equal to 1/60 of the annual
retirement benefit which would be payable to the Executive under Paragraph 1 of
this Agreement, multiplied by the number of complete consecutive twelve month
periods beginning on February 20, 2004, provided however
that such disability income benefit is not to exceed 100% of the retirement
benefit stated in Paragraph 1 above. Such monthly payments shall commence
within thirty (30) days following the Corporation’s determination of
disability. In the event of the death of the Executive after monthly payments
under this paragraph have commenced, but before expiration of the sixty (60)
month period, the unpaid balance of payments shall continue to be paid by the
Corporation to the Executive’s estate.


 


4.             Acceleration of Benefit Payments. 
Notwithstanding the provisions set forth in Paragraphs 1 or 3 of this
Agreement, the Corporation may elect to accelerate the payment of any amounts
listed in such Paragraphs and make payment in a lump sum equal to the net
present value of such payments discounted at an interest rate equal to the thirty
(30) year U.S. Treasury Bill rate at the time of such proposed payment, without
the consent of the Executive or the Executive’s estate, in full satisfaction of
the Corporation’s obligations under Paragraph 1 or 3 of this Agreement, as the
case may be.


 


5.             Forfeiture of Rights and Benefits.  All rights and benefits under this Agreement
shall be forfeited if the Executive violates the prohibitions set forth in the
employment agreement between the Executive and the Corporation in effect as of
the date of this Agreement relating to the disclosure of confidential
information or the restriction of competition with the Corporation.  In the event there is no employment
agreement between the Executive and the Corporation on the date of this
Agreement, all rights and benefits under this Agreement shall be forfeited if
the Executive engages in any of the following proscribed activities during the
two (2) year period beginning upon the occurrence of any event described in
Paragraph 1 or 3 (the “Date of Termination”).


 


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Executive
will not, directly or indirectly: (i) engage in any trade or business in the
liquor industry, relating to the manufacturing or national marketing of any
brand of distilled spirits, anywhere in the United States or such other country
or countries in which the Corporation or any of its Subsidiaries (as defined
below) actively engages in its trade or business as of the Date of Termination
(“Territory”);  (ii) become associated as a manager, supervisor,
employee, consultant, advisor, control shareholder (either individually or as
part of an affiliated group), or otherwise of any person, corporation or entity
engaging in any capacity in such segment of the liquor industry anywhere in the
Territory;  (iii) call upon any client
or clients of the Corporation or any of its Subsidiaries for the purpose of
selling or soliciting for any person, corporation or entity, other than any of
the Corporation or its Subsidiaries, sales of any products, processes, or
services in any capacity in such segment of the liquor industry within the
Territory;  (iv) divert, solicit or take
away any such client or clients of the Corporation or any of its Subsidiaries
for the purpose of selling any products or services in any capacity in such
segment of the liquor industry; and service any contracts or accounts relating
to any products or services in any capacity in such segment of the liquor
industry for any person, corporation or entity other than the Corporation or
any of its Subsidiaries; or  (v) induce,
influence, combine or conspire with, or attempt to induce, influence, combine
or conspire with, any of the officers or employees of the Corporation or any of
its Subsidiaries to terminate his or her employment with or to compete against
the Corporation or any of its Subsidiaries in any capacity in such segment of
the liquor industry.  The Executive
shall not at any time disclose any confidential or trade secret of the
Corporation or any of its Subsidiaries or any client of the Corporation or any
of its Subsidiaries, or utilize such confidential information or trade secret
for the Executive’s own benefit, or for the benefit of third parties.  The term “confidential information or trade
secret of the Corporation or any client of the Corporation” does not include
any information which becomes generally available to the public other than by
breach of this provision.  The Executive
may disclose confidential information where such disclosure is required by
applicable law or court process (but only after giving the Corporation written
notice so that the Corporation may attempt to obtain a protective order).  For purposes of this paragraph, the term
“Subsidiaries” shall mean and include any entities in which the Corporation
owns, directly or indirectly, ten percent (10%) or more of the outstanding
equity interests as of the Date of Termination.


 


6.             No Trust Created.  Nothing
contained in this Agreement, and no action taken pursuant to its provisions by
either party hereto, shall create, nor be construed to create, a trust of any
kind or a fiduciary relationship between the Corporation and the Executive or
any other person.


 


7.             Unsecured General Creditor Status of the
Executive.


 


A.            The
payments to the Executive or his estate shall be made from assets which shall
continue, for all purposes, to be a part of the general, unrestricted assets of
the Corporation.  No person shall have
nor acquire any interest in any such assets by virtue of the provisions of this
Agreement.  The Corporation’s obligation
hereunder shall be an unfunded and unsecured promise to pay money in the
future.  To the extent that the
Executive or any person acquires a right to receive payments from the
Corporation under the provisions hereof, such right shall be no greater than
the right of any unsecured general creditor of the Corporation.  No such person shall have nor require any
legal or equitable right, interest or claim in or to any property or assets of
the Corporation.


 


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B.            In
the event that, in its discretion, the Corporation purchases an insurance
policy or policies insuring the life of the Executive (or any other property)
to allow the Corporation to recover the cost of providing the benefits, in
whole or in part, hereunder, neither the Executive, his personal
representative, legal representative, successors and permitted assigns, nor any
other person have nor acquire any rights whatsoever therein or in the proceeds
therefrom, except as set forth in the Endorsement Split-Dollar Agreement
between the Corporation and the Executive dated February 20, 2004.  The Corporation shall be the sole owner and
beneficiary of any such policy or policies and, as such, shall possess and, may
exercise all incidents of ownership therein. 
No such policy, policies, or other property shall be held in trust
either for the Executive or any other person or as collateral security for any
obligation of the Corporation hereunder.


 


8.             No Contract of Employment.  Nothing
contained herein shall be construed to be a contract of employment for any term
of years, nor as conferring upon the Executive the right to continue to be
employed by the Corporation, in any capacity.


 


9.             Termination of Agreement.  This
Agreement shall be cancelled and shall terminate upon the termination of the
Executive’s employment with the Corporation for any reason other than the
reasons described in paragraphs 1, 2, or 3 of this Agreement.


 


10.          Termination of Agreement in Connection with a
Change in Control.


 


A.            Notwithstanding
anything in this Agreement to the contrary, unless the Executive is terminated
“for cause,” as defined in Paragraph 10.C. of this Agreement, the Corporation
may not terminate this Agreement without the consent of the Executive during
the period beginning nine (9) months before a Change in Control (as defined
below).


 


B.            For
the purpose of this Agreement, a “Change of Control” shall mean any of the
following events:


 


(i)            The
acquisition by any person, entity or “group” required to file a Schedule 13D or
Schedule 14D-1 promulgated under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) (excluding, for this purpose, any of the following
that acquires beneficial ownership of voting securities of the Corporation,
including shares acquired pursuant to the exercise of options or warrants, or
conversion of preferred stock outstanding as of the date hereof: (a) CL
Financial, Ltd., Angostura Ltd., or any of their affiliates; (b) the
Corporation, its affiliates or subsidiaries; (d) V&S Vin & Spirit AB,
its affiliates or subsidiaries, solely in connection with a transaction with
the Corporation, its affiliates or subsidiaries approved by the Board of
Directors; or (d) any employee benefit plan of the Corporation, or its
affiliates or subsidiaries), of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of over 40% (in one or more
transactions, in the aggregate) of either the then outstanding shares of common
stock or the combined voting power of the Corporation’s then outstanding voting
securities entitled to vote generally in the election of directors; or


 


(ii)           An election or
appointment to the Board of Directors by virtue of which the individuals who
immediately prior thereto constituted the Board of Directors (the “Incumbent
Board”) no longer constitute at least a majority of the Board of Directors
(other than an election or appointment of a director or directors precipitated
by CL Financial, Ltd., Angostura Ltd., V&S Vin & Spirit AB, or any of
their affiliates, or by the


 


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Board of Directors if
at that time at least a majority are individuals who are directors on the date
hereof), provided that any person who becomes a director subsequent to the date
hereof whose election, or nomination for election by the Corporation’s
stockholders, was approved by a vote of at least a majority of the Incumbent
Board (other than an election or nomination of an individual whose initial
assumption of office is in connection with an actual or threatened election
contest relating to the election of the Directors of Employer, as such terms
are used in Rule 14a-1 promulgated under the Exchange Act) shall be, for
purposes of this Agreement, considered as though such person were a member of
the Incumbent Board; or


 


(iii)          Approval by the stockholders of the
Corporation of: (a) a reorganization, merger or consolidation by reason of
which persons who were the stockholders of the Corporation immediately prior to
such reorganization, merger or consolidation do not, immediately thereafter,
own more than fifty percent (50%) of the combined voting power entitled to vote
generally in the election of directors of the reorganized, merged or
consolidated company’s then outstanding voting securities; or (b) a liquidation
or dissolution of the Corporation or the sale of all or substantially all of
the assets of the Corporation, whether such assets are held directly or
indirectly (excluding the currently proposed joint ventures with affiliates of
CL Financial, Ltd. and/or V&S Vin & Spirit AB, if such transactions
constitute a sale of substantially all of the assets of Employer).


 


C.            The
definition of “for cause” termination shall be the same as set forth in the
employment agreement between the Executive and the Corporation in effect as of
the date of this Agreement.  In the
event there is no employment agreement between the Executive and the
Corporation on the date of this Agreement, “cause” for termination shall mean that (a) the
Executive is convicted of a felony which, in the sole determination of the
Board of Directors, would have a material adverse effect on Executive’s ability
to perform his duties hereunder or on the business or reputation of the
Corporation; (b) the Executive has exhibited gross misconduct resulting in
material harm to the Corporation, its business or reputation; (c) the Executive
has willfully misappropriated the Corporation’s assets or has otherwise
willfully defrauded the Corporation, including without limitation by fraud, theft,
embezzlement, or breach of a fiduciary duty involving personal profit.  For purposes of this paragraph, no act or
failure to act on the Executive’s part shall be considered “willful” unless
done, or omitted to be done, by him not in good faith and without reasonable
belief that his action or omission was in the best interests of the
Corporation.


 


11.          Named Fiduciary.  The
Corporation is hereby designated the “Named Fiduciary” as such term is defined
in ERISA.  As Named Fiduciary, the
Corporation shall be responsible for the management and administration of the
terms of this Agreement. The Corporation’s Board of Directors may delegate to
others the management and operating responsibilities of the plan including the
employment of advisors and may exercise any other powers necessary for the
discharge of its duties to the extent not in conflict with the provisions of
ERISA.


 


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12.          Claims Procedure.


 


A.            If
the Executive or his beneficiary believes that he is being denied a benefit to
which he is entitled under this Agreement (hereinafter referred to as a
“Claimant”), such Claimant may file a written request for such benefit with the
Corporation setting forth his claim.  The
request must be addressed to the President of the Corporation at its then
principal place of business.


 


B.            The
Corporation shall reply to the Claimant’s claim within ninety (90) days of
receiving the claim.  If the claim is
denied in whole or in part, the Corporation shall adopt a written opinion,
using language calculated to be understood by the Claimant, setting forth:


 


(i)            The
specific reason or reasons for such denial;


 


(ii)           The
specific reference to pertinent provisions of this Agreement on which such
denial is based;


 


(iii)          A
description of any additional material or information necessary for the
Claimant to perfect his claim and an explanation why such material or such
information is necessary;


 


(iv)          Appropriate
information as to the steps to be taken if the Claimant wishes to submit the claim
for review; and


 


(v)           The
time limits for requesting a review under subparagraph C. and for review under
subparagraph D. hereof.


 


C.            Within
sixty (60) days after the receipt by the Claimant of the written opinion
described above, the Claimant may request in writing that the Secretary of the
Corporation review the determination of the Corporation. Such request must be
addressed to the Secretary of the Corporation, at the Corporation’s then
principal place of business. The Claimant or his duly authorized representative
may, but need not, review the pertinent documents and submit issues and
comments in writing for consideration by the Corporation. If the Claimant does
not request a review of the Corporation’s determination by the Secretary of the
Corporation within such sixty (60) day period, he shall be barred and estopped
from challenging the Corporation’s determination.


 


D.            Within
sixty (60) days after the Secretary’s receipt of a request for review, he will
review the Corporation’s determination. After considering all materials
presented by the Claimant, the Secretary will render a written opinion, written
in a manner calculated to be understood by the Claimant, setting forth the
specific reasons for the decision and containing specific references to the pertinent
provisions of this Agreement on which the decision is based. If special
circumstances require that the sixty (60) day time period be extended, the
Secretary will so notify the Claimant and will render the decision as soon as
possible, but no later than one hundred twenty (120) days after receipt of the
request for review.


 


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13.          Non-Assignability of Benefits.  The
Executive may not transfer, assign, anticipate, hypothecate or otherwise
encumber any part or all of the amounts payable hereunder, which are expressly
declared to be unassignable and non-transferable. Any such attempted assignment
or transfer shall be void and shall terminate this Agreement; the Corporation
shall thereupon have no further liability hereunder. No amount payable
hereunder shall, prior to actual payment thereof, be subject to seizure by any
creditor of the Executive for the payment of any debt, judgment or other
obligation, by a proceeding at law or in equity.


 


14.          Amendment.  This
Agreement may be amended at any time and from time to time, by a written
instrument signed by the Corporation and the Executive.


 


15.          Binding Effect.  All of
the terms and provisions of this Agreement shall be binding upon, inure to the
benefit of, and be enforceable by the parties and their respective
administrators, personal representatives, legal representatives, heirs,
successors and permitted assigns, whether so expressed or not.


 


16.          Notices.  Any
notice, consent or demand required or permitted to be given under the
provisions of this Agreement shall be in writing, and shall be signed by the
party giving or making the same.  If
such notice, consent or demand is mailed to a party hereto, it shall be sent by
United States certified mail, postage prepaid, addressed to such party’s last
known address as shown on the records of the Corporation. The date of such
mailing shall be deemed the date of notice, consent or demand.


 


17.          Governing Law.  This
Agreement and all transactions contemplated by this Agreement shall be governed
by, and construed and enforced in accordance with, the internal laws of the
State of Florida without regard to principles of conflicts of laws.


 


18.          Jurisdiction and Venue.  The
parties acknowledge that a substantial portion of the negotiations, anticipated
performance and execution of this Agreement occurred or shall occur in Palm
Beach County, Florida.  Any civil action
or legal proceeding arising out of or relating to this Agreement shall be
brought in the courts of record of the State of Florida in Palm Beach County or
the United States District Court, Southern District of Florida.  Each party consents to the jurisdiction of
such Florida court in any such civil action or legal proceeding and waives any
objection to the laying of venue of any such civil action or legal proceeding
in such Florida court.  Service of any
court paper may be effected on such party by mail, as provided in this
Agreement, or in such other manner as may be provided under applicable laws,
rules of procedure or local rules.


 


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N WITNESS
WHEREOF, the parties
hereto have set their hands on the day and year first hereinabove written.


 


 


TODHUNTER
INTERNATIONAL, INC.


 


	
  By:

  	
  /s/ Jay S. Maltby

  	
  , Chairman, CEO &
  President

  



 


 


EXECUTIVE:


 


	
  By:

  	
  /s/ Chester Brandes

  	
  , Vice President –
  International Sales

  



 


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