Document:

Exhibit 10.1

 

SEVENTH AMENDMENT TO LOAN AND SECURITY
AGREEMENT

 

This Seventh Amendment
to Loan and Security Agreement (this “Seventh Amendment”) made and entered into
as of the 30th day of August, 2005, is by and among LASALLE BANK NATIONAL ASSOCIATION, a national banking
association (“LENDER”), having its principal
place of business at 135 South LaSalle Street, Chicago, Illinois 60603-4105,
and VITA FOOD PRODUCTS, INC., a Nevada
corporation, with its chief executive office located at 2222 West Lake Street,
Chicago, Illinois 60612 (“Vita Food”), VIRGINIA HONEY COMPANY,
INC., a Virginia corporation, with its chief executive office
located at 2222 West Lake Street, Chicago, Illinois 60612 (“Virginia Honey”), THE HALIFAX GROUP, INC., a Georgia corporation, with its
chief executive office located at 2222 West Lake Street, Chicago, Illinois
60612 (“Halifax”), and VITA SPECIALTY FOODS, INC.,
a Delaware corporation, with its chief executive office located at 2222 West
Lake Street, Chicago, Illinois 60612  (“Specialty
Foods”) (Vita Food, Virginia Honey, Halifax and Specialty Foods are
individually a “Borrower” and collectively the “Borrowers”).

 

W I T N E S S E T H:

 

WHEREAS, prior
hereto, Lender provided certain loans, extensions of credit and other financial
accommodations (the “Financial Accommodations”) to Borrowers pursuant to (a)
that certain Loan and Security Agreement dated as of September 5, 2003, as
amended by that certain First Amendment to Loan and Security Agreement dated as
of November 5, 2004, that certain Second Amendment to Loan and Security
Agreement dated as of December 21, 2004, that certain Third Amendment to Loan
and Security Agreement dated as of January 31, 2005, that certain Fourth
Amendment to Loan and Security Agreement dated as of April 4, 2005, that
certain Fifth Amendment to Loan and Security Agreement dated as of  June 30, 2005, and that certain Sixth
Amendment to Loan and Security Agreement dated as of August 4, 2005, each by
and among Lender and Borrowers (as further amended or restated from time to
time, the “Loan Agreement”), and (b) the other documents, agreements and
instruments referenced in the Loan Agreement or executed and delivered pursuant
thereto;

 

WHEREAS, Borrowers
have requested that Lender, (i) extend the Revolving Loan Termination Date to January
31, 2007, (ii) temporarily increase the maximum principal amount of the
Revolving Loans from $9,500,000 to $10,000,000, (iii) temporarily increase the
amount of the Overadvance, (iv) increase the principal amount of Term Loan A by
an additional $1,250,000, and (v) provide a new capital expenditure line of
credit in a maximum aggregate principal amount not to exceed $150,000.00 (collectively
the “Additional Financial Accommodations”); and

 

WHEREAS, Lender is
willing to provide the Additional Financial Accommodations, but solely on the
terms and subject to the provisions set forth in this Seventh Amendment and the
other agreements, documents and instruments referenced herein or executed and
delivered pursuant hereto.

 

NOW, THEREFORE, in
consideration of the foregoing, the mutual promises and understandings of the
parties hereto set forth herein and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Lender and Borrowers
hereby agree as set forth in this Seventh Amendment.

 

 

I.                                         Definitions.

 

A.                                   Use of Defined Terms. 
Except as expressly set forth in this Seventh Amendment, all terms which
have an initial capital letter where not required by the rules of grammar are
used herein as defined in the Loan Agreement.

 

B.                                     Amended Definitions.  Effective as of the date of this Seventh
Amendment, Section 1.1 of the Loan Agreement is hereby amended by deleting the
definitions of “Maximum Revolving Loan”, “Overadvance”, “Revolving Loan
Termination Date”, “Revolving Note”, “Tangible Net Worth Benchmark”, “Term Note
A” and “Term Note B”, and substituting therefor the following, respectively:

 

“Maximum
Revolving Loan”: shall mean (1) from August 30, 2005,
through November 14, 2005, an amount equal to Ten Million and no/100 Dollars
($10,000,000.00), and (2) from November 15, 2005, and at all times thereafter,
an amount equal to Nine Million Five Hundred Thousand and no/100 Dollars
($9,500,000.00).

 

“Overadvance”:
shall mean an amount equal to (1) One Million Seven Hundred Fifty Thousand and
no/100 Dollars ($1,750,000.00) from August 30, 2005, through August 31, 2005;
(2) One Million Two Hundred Fifty Thousand and no/100 Dollars ($1,250,000.00)
from September 1, 2005, through September 30, 2005; (3) One Million and no/100
Dollars ($1,000,000.00) from October 1, 2005, through October 31, 2005; (4) Seven
Hundred Fifty Thousand and no/100 Dollars ($750,000.00) from November 1, 2005,
through November 30, 2005; (5) Five Hundred Thousand and no/100 Dollars
($500,000.00) from December 1, 2005, through December 31, 2005; (6) Two Hundred
Fifty Thousand and no/100 Dollars ($250,000.00) from January 1, 2006, through
January 30, 2006; and (7) zero Dollars ($0) from January 31, 2006, and at all
times thereafter.

 

“Revolving Loan Termination
Date”: shall mean January 31, 2007.

 

“Revolving Note”: shall mean that certain
Revolving Note dated as of August 30, 2005, executed and delivered by Borrowers
to Lender in a maximum aggregate principal amount not to exceed $10,000,000.00,
as amended, renewed, restated or replaced from time to time.

 

“Tangible Net Worth Benchmark”: shall
mean: (i) negative Three Million and no/100 Dollars (-$3,000,000.00) as of
September 30, 2005, and (ii) negative Two Million and no/100 Dollars
(-$2,000,000.00) as of December 31, 2005, through September 30, 2006.  Thereafter, beginning December 31, 2006, Tangible
Net Worth Benchmark shall increase (but not decrease) on December 31 of each
year by an amount equal to 50% of Borrowers’ consolidated net income for such
fiscal year then ended and shall remain at such amount through September 30 of
the immediately following fiscal year.

 

“Term Note A”:
shall mean that certain Term Note A dated as of August 30, 2005,

 

2

 

executed and delivered by Borrowers to Lender
in the principal amount of $6,508,000.00, as amended, renewed, restated or
replaced from time to time.

 

“Term Note B”:
shall mean that certain Term Note B dated as of August 30, 2005, executed and
delivered by Borrowers to Lender in a maximum aggregate principal amount not to
exceed $150,000.00, as amended, renewed, restated or replaced from time to
time.

 

II.                                     Amendments to Loan Agreement.  Effective as of the date of this Seventh
Amendment, the Loan Agreement is hereby amended as follows:

 

A.                                   Term Loan A.  Section 2.1(B) of the Loan Agreement is
hereby amended by deleting Section 2.1(B) of the Loan Agreement in its entirety
and substituting therefor the following:

 

“(B)                          On
or around September 5, 2003, Lender provided a term loan to Borrowers in the
original principal amount of $6,500,000.00. 
The current outstanding principal amount of such term loan is
$5,258,000.00 (“Existing Term Loan A”).  
Provided that an Unmatured Event of Default or Event of Default does not
exist and all of the conditions precedent in Section 10 of this Loan Agreement
have been satisfied, Lender shall increase the principal amount of Existing
Term Loan A by an additional $1,250,000.00 (Existing Term Loan A, together with
such increase is hereinafter “Term Loan A”). 
Term Loan A shall be evidenced by and repaid in accordance with Term
Note A.”

 

B.                                     Term Loan B.  Section 2.1(C) of the Loan Agreement is
hereby amended by deleting Section 2.1(C) of the Loan Agreement in its entirety
and substituting therefor the following:

 

“(C)                          Term Loan B.

 

(1)                                  Provided
that an Unmatured Event of Default or Event of Default does not then exist and
all of the conditions precedent in Section 10 of this Loan Agreement have been
satisfied, from August 30, 2005, through August 30, 2006, Lender shall provide
a multi-draw line of credit to Borrower in a maximum aggregate principal amount
not to exceed One Hundred Fifty Thousand and no/100 Dollars ($150,000.00) (“Term
Loan B”).  Term Loan B shall be evidenced
by Term Note B.  Term Loan B shall be
advanced to Borrower in not more than two (2) draws.  Term Loan B will be used by Borrower to
finance up to eighty percent (80%) of the total invoice cost of new Equipment,
less any “Soft Costs” (hereinafter defined) included therein.  “Soft Costs” shall mean costs associated with
surveys, drawings, software, shipping, freight, insurance, installation and
other incidental costs of such new Equipment. 
Prior to each advance under Term Loan B, Borrower shall provide Lender
with evidence of the purchase price of such Equipment in form and substance
reasonable satisfactory to Lender.

 

(2)                                  Interest
on Term Loan B shall be paid by Borrowers to Lender on the last Business Day of
each month after the initial Term Loan B draw until Term Loan B is indefeasibly
paid in full.  The principal portion of
Term Loan B shall be repaid

 

3

 

by Borrowers to Lender in forty-six (46)
consecutive monthly principal installments each in the amount of 1/60th of the
total Term Loan B advances, beginning on the last Business Day of August, 2006,
and continuing on the last Business Day of each month thereafter through and
including May 31, 2010.   Borrowers shall
make a final payment of all outstanding Liabilities evidenced by Term Note B on
June 30, 2010.”

 

C.                                     Interest Rates.  Sections 2.2(A) and (B) of the Loan Agreement
are hereby amended by deleting Sections 2.2(A) and (B) of the Loan Agreement in
their entirety and substituting therefor the following, respectively:

 

“(A) Revolving Loan.  Borrowers hereby jointly and severally
promise to pay interest on the unpaid principal amount of the Revolving Loan as
provided in Section 3.1 below at the floating per annum rate of interest equal
to the Prime Rate plus one-half of one percent (.5%) until the date such Loan
is paid in full; provided, however, if as of January 31, 2006, no Event of
Default then exists, including, without limitation, no Event of Default under (1)
Section 9.4 of the Loan Agreement (Financial Covenants) for the period ending
December 31, 2005, and (2) Section 3.1(B) of the Loan Agreement (Revolving Loan
Mandatory Prepayments) as of January 31, 2006, then effective as of February 1,
2006, the Revolving Loan shall bear interest at the Prime Rate.  Notwithstanding the foregoing, upon the
occurrence and during the continuance of an Event of Default, the unpaid
principal amount of the Revolving Loan shall, at Lender’s option bear interest
at the Default Rate.

 

(B)                                Term Loan A and B.  Borrowers hereby jointly and severally
promise to pay interest on the unpaid principal amount of Term Loan A and Term
Loan B as provided in Section 3.1 below at the floating per annum rate of
interest equal to the Prime Rate plus one-half of one percent (.5%) until the
date such Loans are paid in full. 
Notwithstanding the foregoing, upon the occurrence and during the
continuance of an Event of Default, the unpaid principal amount of Term Loan A
and Term Loan B shall, at Lender’s option, bear interest at the Default Rate.”

 

D.                                    Elimination of LIBOR Provisions.  Schedule 2.3 is hereby deleted.  Section 2.3 of the Loan Agreement is hereby
amended by deleting Section 2.3 in its entirety and substituting therefor the
following:

 

“2.3                           Reserved.”

 

E.                                      Payments.  Section 3.1(A) of the Loan Agreement is
hereby amended by deleting Section 3.1(A) of the Loan Agreement in its entirety
and substituting therefor the following:

 

“(A)                        Scheduled Payments.  Except as otherwise provided in this Loan
Agreement or the Other Agreements, that portion of the Liabilities consisting
of: (1) the principal portion of the Revolving Loan shall be payable in
full by Borrowers to Lender on or before the Revolving Loan Termination Date;
(2) interest on the Revolving Loan shall be payable by Borrowers to Lender
in arrears on the last Business Day of each month, as debited by Lender;
(3) principal on Term Loan A and Term Loan B shall be payable by Borrowers
to Lender as set forth in Section 2 above and in Term Note A and Term Note B;
(4) interest on Term Loan A and Term Loan B shall be payable by Borrowers to
Lender in arrears on the last Business Day of each month as debited by Lender;
(5) all costs, fees and expenses

 

4

 

payable pursuant to this Loan Agreement and the Other Agreements shall
be payable by Borrowers to Lender, or to such other Persons designated by
Lender, on demand; and (6) the balance of the Liabilities, if any, shall
be payable by Borrowers to Lender on demand. 
All such payments to Lender shall be payable at Lender’s principal
office in Chicago, Illinois, or at such other place or places as Lender may
designate in writing to Borrowers.  All
such payments to Persons other than Lender shall be payable at such place or
places as Lender may designate in writing to Borrowers.  All such payments made to Lender shall be
paid by Borrowers without offset or other reduction.”

 

F.                                      Inspections and Verifications.  Section 4.3 of the Loan Agreement is hereby
amended by deleting Section 4.3 of the Loan Agreement in its entirety and
substituting therefor the following:

 

“4.3                           Inspections and Verifications.  Borrowers shall permit Lender, or any Persons
designated by Lender, to call at each Borrower’s places of business at any
reasonable times, upon not less than one (1) Business Day’s prior written or oral
notice, and, without hindrance or delay, to inspect the Collateral and to
inspect, audit, check and make extracts from each Borrower’s books, records,
journals, orders, receipts and any correspondence and other data relating to
each Borrower’s business, the Collateral or any transactions between the
parties hereto, and shall have the right to make such verification concerning
each Borrower’s business as Lender may consider reasonable under the
circumstances.  Lender, at its
discretion, will perform field audits twice per calendar year, or more
frequently as determined by Lender. 
Borrowers shall furnish to Lender such information relevant to Lender’s
rights under this Loan Agreement as Lender shall at any time and from time to
time request.  Lender, through its
officers, employees or agents shall have the right, at any time and from time
to time, in Lender’s name, to verify the validity, amount or any other matter
relating to any of each Borrower’s Accounts, by mail, telephone, telegraph or
otherwise; provided, however, if no Unmatured Event of Default or Event of
Default then exists, such verifications shall not occur more frequently than
twice during any 12 month period.  Each Borrower
authorizes Lender to discuss the affairs, finances and business of Borrowers
with any officers, employees or directors of any Borrower or with its Parent or
any Affiliate or the officers, employees or directors of its Parent or any
Affiliate, and to discuss the financial condition of Borrowers with Borrowers’
independent public accountants.  Any such
discussions shall be without liability to Lender or to Borrowers’ independent
public accountants.  Borrowers shall pay
to Lender all fees and all costs and out-of-pocket expenses incurred by Lender
in the exercise of its rights hereunder, and all of such fees, costs and
expenses shall constitute Liabilities hereunder, shall be payable on demand
and, until paid, shall bear interest at the Default Rate.”

 

G.                                     Financial Covenants.  Section 9.4 of the Loan Agreement is hereby
amended by deleting Section 9.4 of the Loan Agreement in its entirety and
substituting therefor the following, respectively:

 

“9.4                           Financial Covenants.  During the term of this Loan Agreement, and
thereafter for so long as there are any outstanding Liabilities owed to Lender,
Borrowers covenant that they shall:

 

5

 

(A)                              Tangible Net Worth.  Maintain
a minimum Tangible Net Worth of not less than the Tangible Net Worth Benchmark
tested as of the last day of each calendar quarter.

 

(B)                                Cash Flow Coverage Ratio.  Not permit Borrowers’ Cash Flow Coverage
Ratio, calculated on a trailing twelve (12) month basis, to be less than: (i)
1.00 to 1.00 as of December 31, 2005, (ii) 1.10 to 1.00 as of March 31, 2006,
or as of the last day of any calendar quarter thereafter.  The Cash Flow Coverage Ratio will not be
tested as of June 30, 2005 or September 30, 2005.

 

(C)                                Minimum
EBITDA.  Borrowers shall maintain
EBITDA of not less than: (i) Eight Hundred Twenty-Five Thousand and no/100
Dollars ($825,000.00) for the nine (9) month period ending September 30, 2005,
and (ii) Two Million Four Hundred Thousand and no/100 Dollars ($2,400,000.00)
as of December 31, 2005 and as of the last day of each calendar quarter
thereafter, calculated on a trailing twelve (12) month basis.”

 

H.                                    Financial Reporting.  Section 9.5(F) of the Loan Agreement is
hereby amended by deleting Section 9.5(F) of the Loan Agreement in its entirety
and substituting therefor the following:

 

“(F)                           (1)
As soon as available, but in no event later than seven (7) days after the last
Business Day of each week, a Borrowing Base Certificate dated as of the last
Business Day of the such week, and (2) on the first Business Day of each week, a
cash flow forecast for such week.”

 

III.                                 Conditions Precedent. Lender’s
obligation to provide the Additional Financial Accommodations to Borrowers is
subject to the full and timely performance of the following covenants prior to
or contemporaneously with the execution of this Seventh Amendment:

 

A.                                   Borrowers
executing and delivering, or causing to be executed and delivered to Lender,
the following documents, each of which shall be in form and substance
acceptable to Lender:

 

(i)                                     An
original Revolving Note of even date herewith executed by the Borrowers to
Lender;

 

(ii)                                  An
original Term Note A of even date herewith executed by the Borrowers to Lender;

 

(iii)                               An
original Term Note B of even date herewith executed by the Borrowers to Lender;

 

(iv)                              An
original Company General Certificate of even date herewith executed by the
Secretary of each Borrower to Lender;

 

(v)                                 An
original First Amendment to Mortgage Documents of even date herewith by and
between Vita Foods and Lender; and

 

6

 

(vi)                            such
other agreements, documents and instruments as Lender may reasonably request;

 

B.                                     No
Unmatured Event of Default or Event of Default exists under the Loan Agreement,
as amended by this Seventh Amendment, or the Other Agreements;

 

C.                                     No
claims, litigation, arbitration proceedings or governmental proceedings not
disclosed in writing to Lender prior to the date of hereof shall be pending or
known to be threatened against Borrowers and no known material development not
so disclosed shall have occurred in any claims, litigation, arbitration
proceedings or governmental proceedings so disclosed which in the opinion of
Lender is likely to materially or adversely affect the financial position or
business of any Borrower or the capability of any Borrower to pay its
obligations and liabilities to Lender; and

 

D.                                    There
shall have been no material or adverse change in the business, financial
condition or results of operations since the date of each Borrower’s most
recently delivered financial statements to Lender.

 

IV.                                 Conflict.  If, and to the extent, the terms and
provisions of this Seventh Amendment contradict or conflict with the terms and
provisions of the Loan Agreement, the terms and provisions of this Seventh
Amendment shall govern and control; provided, however, to the extent the terms
and provisions of this Seventh Amendment do not contradict or conflict with the
terms and provisions of the Loan Agreement, the Loan Agreement, as amended by this
Seventh Amendment, shall remain in and have its intended full force and effect,
and Lender and Borrowers hereby affirm, confirm and ratify the same.

 

V.                                     Severability.  Wherever possible, each provision of this
Seventh Amendment shall be interpreted in such manner as to be valid and
enforceable under applicable law, but if any provision of this Seventh
Amendment is held to be invalid or unenforceable by a court of competent
jurisdiction, such provision shall be severed herefrom and such invalidity or
unenforceability shall not affect any other provision of this Seventh
Amendment, the balance of which shall remain in and have its intended full
force and effect.  Provided, however, if
such provision may be modified so as to be valid and enforceable as a matter of
law, such provision shall be deemed to be modified so as to be valid and
enforceable to the maximum extent permitted by law.

 

VI.                                 Reaffirmation.  Borrowers hereby reaffirm and remake all of
the representations, warranties, covenants, duties, obligations and liabilities
contained in the Loan Agreement, as amended hereby.

 

VII.                             Fees, Costs and Expenses.

 

(A)                              Contemporaneously
herewith, Borrowers shall pay to Lender a fully-earned, non-refundable
amendment fee in the amount of $10,000.00.

 

(B)                                Borrowers
agree to pay, upon demand, all fees, costs and expenses of Lender, including,
but not limited to, reasonable attorneys’ fees, in connection with the
preparation, execution, delivery and administration of this Seventh Amendment
and the other agreements, documents and instruments executed and delivered in connection
herewith or pursuant hereto.

 

7

 

VIII.                         Choice of Law.  This Seventh Amendment has been delivered and
accepted in Chicago, Illinois, and shall be governed by and construed in
accordance with the laws of the State of Illinois, regardless of the laws that
might otherwise govern under applicable principles of conflicts of law as to
all matters, including matters of validity, construction, effect, performance
and remedies.

 

IX.                                Counterpart.  This Agreement may be executed in two or more
counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

 

X.                                    Waiver of Jury Trial.  BORROWERS AND LENDER EACH HEREBY WAIVE THEIR
RESPECTIVE RIGHT TO TRIAL BY JURY.

 

 

[signature page follows]

 

8

 

IN WITNESS WHEREOF,
Lender and Borrowers have caused this Seventh Amendment to be executed and
delivered by their duly authorized officers as of the date first set forth
above.

 

	
  LASALLE BANK NATIONAL ASSOCIATION,

  	
  VITA FOOD PRODUCTS, INC.,

  
	
  a national banking association

  	
  a Nevada corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
  /s/ Stephen Rubin

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
  Stephen Rubin

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VIRGINIA HONEY COMPANY, INC.,

  
	
   

  	
  a Virginia corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Clifford Bolen

  	
   

  
	
   

  	
  Name:

  	
  Clifford Bolen

  
	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE HALIFAX GROUP, INC.,

  
	
   

  	
  a Georgia corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Clifford Bolen

  	
   

  
	
   

  	
  Name:

  	
  Clifford Bolen

  
	
   

  	
  Title:

  	
  Treasurer & Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VITA SPECIALTY FOODS, INC.,

  
	
   

  	
  a Delaware corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Clifford Bolen

  	
   

  
	
   

  	
  Name:

  	
  Clifford Bolen

  
	
   

  	
  Title:

  	
  Assistant SecretaryPrepared and filed by St Ives Financial

Exhibit 10.2.2

THE PERKIN-ELMER CORPORATION

1996 STOCK INCENTIVE PLAN

FORM OF NON-QUALIFIED STOCK OPTION AGREEMENT

NON-QUALIFIED STOCK OPTION AGREEMENT dated as of [Grant Date] by and between The Perkin-Elmer Corporation, a New York corporation (the "Company"), and [Name], a regular salaried employee of the Company or one of its subsidiaries ("you").

1.  Grant of Option.  The Company hereby grants to you an option (the "Option") to purchase [Total Number of Shares] shares of its Common Stock, par value $1.00 per share (the "Common Stock"), under the terms of The Perkin-Elmer Corporation 1996 Stock Incentive Plan (the "Plan").

2.  Purchase Price of Option. The purchase price of the shares of Common Stock subject to the Option is $[Purchase Price] per share.

3.  Expiration Date of Option.  The Option will expire as of 12:00 p.m. midnight  (New York time) on  [10 Year Anniversary of Grant Date] (the "Expiration Date"), unless it is terminated earlier as provided in this Agreement.

4.  Exercise.  The Option may be exercised as to one-half of the total number of shares subject to the Option on or after [First Anniversary of Grant Date] and as to the remaining one-half on or after [Second Anniversary of Grant Date].  Except as provided below, the Option may not be exercised unless you are on the date of exercise, and have been at all times from the date of grant to the date of exercise, a regular employee of the Company or one of its subsidiaries.

5.  Termination of Employment.  If your employment with the Company or a subsidiary is terminated by you or the Company for any reason other than retirement, disability, or death, you may exercise the Option, to the extent that you would otherwise be entitled to do so at the date of the termination of employment, at any time within 30 days after the date of termination, but not after the Expiration Date.

6.  Retirement or Disability.  If you retire at your normal retirement date under the terms of any pension plan provided by the Company or one of its subsidiaries (or earlier with the consent of the Company or such subsidiary), or if you are totally and permanently disabled, the Option may be exercised as to the total number of shares subject to the Option (without regard to the exercise schedule set forth in paragraph 4) at any time within one year after the date of retirement or disability retirement, but not after the Expiration Date.

7.  Death.  If you die while employed by the Company or one of its subsidiaries, the Option may be exercised (to the extent that you would have been entitled to do so at the date of your death) by your executor or administrator (or other person at the time entitled by law to your rights under the Option) at any time within one year after the date of death, but not after the Expiration Date.

 

8.  Exercise of Option.  The Option may be exercised by giving written notice in the form specified by the Company to the Corporate Secretary at the principal office of the Company specifying the number of shares of Common Stock to be purchased.  However, the Option may not be exercised as to fewer than 50 shares, or the remaining shares covered by the Option if fewer than 50, at any one time, and the Option may not be exercised with respect to a fractional share.  The purchase price of the shares as to which the Option is exercised must be paid in full at the time of exercise, at your election, (a) in U.S. currency, (b) by tendering to the Company shares of Common Stock then owned by you having a Fair
Market Value (as defined in the Plan) equal to the aggregate purchase price of the shares as to which the Option is being exercised, (c) by making an election to have shares of Common Stock subject to the Option withheld by the Company (provided that the Option has been held for at least six months), with the shares withheld having a Fair Market Value equal to the aggregate purchase price of the shares as to which the Option is being exercised, (d) a combination of U.S. currency, previously owned shares of Common Stock, and/or share withholding, with any shares of Common Stock valued at Fair Market Value, or (e) by payment of such other consideration as the Management Resources Committee of the Board of Directors (the "Committee") from time to time determines.  For purposes of
this paragraph, Fair Market Value will be determined as of the business day immediately preceding the day on which the Option is exercised.

9.  Conditions to Exercise. The
    exercise of the Option within one year following the termination of your
    employment is subject to the satisfaction of the conditions that you have
    not (a) rendered services or engaged directly or indirectly in any business
    which in the opinion of the Committee competes with or is in conflict with
    the interests of the Company, or (b) violated any written agreement with
    the Company, including, without limitation, any confidentiality agreement.
    Your violation of either clause (a) or (b) of the preceding sentence will
    result in the immediate forfeiture of any Options held by you. 

10.  Tax Withholding Obligations.  As a condition to the delivery of shares of Common Stock upon the exercise of the Option, you agree to pay to the Company at the time of exercise an amount sufficient to satisfy any applicable tax withholding obligations.

11.  Rights as a Shareholder.  You will not have any rights as a shareholder with respect to the shares of Common Stock subject to the Option prior to the issuance to you of a certificate for such shares.

12.  Transferability.  The Option may not be transferred other than by will or by the laws of descent and distribution, and the Option may be exercised, during your lifetime, only by you or your guardian or legal representative.

13.  Change of Control.  Subject to the terms of the Plan, the Option will become immediately exercisable in full (a) in the event that a tender offer or exchange offer (other than an offer by the Company) for the Common Stock is made by any "person" within the meaning of Section 14(d) of the Securities Exchange Act of 1934, as amended, and not withdrawn within a specified period, or (b) in the event of a Change in Control (as defined in the Plan). 

-2-

 

14.  No Right to Continued Employment.  Neither the Option nor this Agreement confers upon you any right to continue to be an employee of the Company or any of its subsidiaries or interferes in any way with the right of the Company or any of its subsidiaries to terminate your employment at any time.  Except as provided in this Agreement, the Option will terminate upon the termination of your employment for any reason.  The Option will not be reinstated if you are subsequently reinstated as an employee of the Company or any subsidiary.

15.  Compliance with Law.   No shares of Common Stock will be issued upon the exercise of the Option unless counsel for the Company is satisfied that such issuance will be in compliance with all applicable laws.

16.  Terms of Plan Govern.  This Agreement and the terms of the Option will be governed by the terms of the Plan which is hereby incorporated by reference in this Agreement.  In the event of any ambiguity in this Agreement or any inconsistency between the terms of this Agreement and the terms of the Plan, the terms of the Plan will govern.  By your signature below, you acknowledge receipt of the Prospectus for the Plan, including a copy of the Plan, and agree to be bound by all of the terms of the Plan.

17.  Amendments.  The Option or the Plan may, subject to certain exceptions, be amended by the Committee at any time in any manner.  However, no amendment of the Option or the Plan will adversely affect in any material manner any of your rights under the Option without your consent.

18.  Governing Law.  This
    Agreement will be governed by and construed in accordance with the internal
    laws of the State of Connecticut.

IN WITNESS WHEREOF, this Agreement
    has been duly executed by the undersigned as of the day and year first written
    above. 

	

THE PERKIN-ELMER CORPORATION

  

    By: _______________________________

           Chairman, President and

           Chief Executive Officer

 

Accepted and Agreed:

  __________________________

Employee

-3-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]