Document:

Exhibit 10.9

 

CONSULTING SERVICES AGREEMENT

 

This Consulting Services
Agreement (this “Agreement”) is entered into as of this 2nd day of December, 2015, by and between Walgreens
Boots Alliance, Inc., a Delaware corporation, on behalf of itself and its subsidiaries and affiliates (the “Company”),
and Timothy J. Theriault (“Consultant”).

 

WHEREAS, Consultant was
previously employed by the Company as its Global Chief Information Officer through May 31, 2015 (the “Employment Termination
Date”); and most recently served as a consultant to the Company for a five-month term ending October 31, 2015, pursuant to
a prior Consulting Services Agreement (the “Prior Agreement”);

 

WHEREAS, the parties desire
that Consultant shall continue to perform consulting services; and

 

WHEREAS, both parties
wish to enter into this Agreement to govern the terms and conditions of this arrangement.

 

NOW, THEREFORE, in consideration
of the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties agree as follows:

 

1.                 
Consulting Services Effective Date. The “Consulting Services Effective Date” of this Agreement
shall be November 1, 2015.

 

2.                 
Services. During the Term (as defined in Section 4 below), Consultant agrees to make Consultant’s
personal services (the “Services”) available to the Company to provide advice and counsel to the Chief Executive Officer
of the Company, the highest ranking IT officer of the Company, and/or one designee of each of them on such matters as they deem
appropriate, including providing input for global involvement of architectural/technology choices, including software approach
and advising on transformational programs; advising and supporting the cyber-security program; advising on merger and acquisition
integration and Global Platform Strategy matters. Consultant agrees to devote sufficient time and attention to the performance
of the Services; it being understood that Consultant shall not devote more than an average of two days per week towards the Services,
which in any case is expected to be 20% or less of the average level of services performed by Consultant for the Company over the
36-month period ending on the Employment Termination Date. The Company agrees to provide Consultant with access to all information
necessary for him to render such Services.

 

3.                 
Consideration.

 

(a)               
Fees. As consideration for the Services, the Company shall pay Consultant at the rate of $40,000 per month,
with a pro-rated amount to be paid for any partial month during the Term. The monthly fee for each month of the Term shall be processed
during the last week of the month and paid on or before the fifth business day of the following month.

 

    	 

    	 

    

(b)              
Expenses. Consultant shall be reimbursed all pre-approved, reasonable expenses incurred by Consultant in the
performance of the Services, in accordance with the Company’s business expense policies and guidelines.

 

(c)               
Taxes. Consultant shall be responsible for all income and other taxes due to any taxing authority with respect
to the fees provided hereunder. The Company is not required to pay nor will Consultant invoice the Company for sales tax on Services.
Each party shall be responsible for the payment of other taxes, if any, imposed upon it in connection with, or as a result of,
this Agreement, except as provided in Section 5 of Consultant’s May 26, 2015 Separation Agreement.

 

4.                 
Term Of Agreement. This Agreement will commence on the Consulting Services Effective Date and shall continue
through October 31, 2016 (the “Term”); provided that either party may terminate the Term prior to October 31, 2016
upon written notice delivered to the other party at least two months prior to the date of such termination. Following the completion
of the Term, this Agreement shall automatically continue in two-month increments (such additional period of time, the “Extended
Term”), subject to either party’s continuing right to terminate this Agreement at any time during the Extended Term
upon two months’ written notice delivered to the other party. All references in the remainder of this paragraph and the remainder
of this Agreement to the Term shall include any Extended Term. The Term shall expire immediately upon Consultant’s death.
Fees shall be paid until the Term ends or expires for any reason.

 

5.                 
Termination. Upon termination of this Agreement, the Company shall pay Consultant for fees and expenses
incurred up to and including the end or expiration of the Term. Pursuant to its terms, Section 6 below will survive any expiration
or termination of this Agreement.

 

6.                 
Restrictive Covenants; Confidential Information. During the Term, Consultant shall remain subject to all
continuing restrictive covenants and other continuing obligations as a former employee of the Company, including but not limited
to all obligations included or referenced in the Non-Competition, Non-Solicitation and Confidentiality Agreements that Consultant
agreed to in connection with restricted stock unit awards granted to him (the “Non-Compete Agreements”). It is understood
and agreed that the duration of each of Consultant’s post-employment obligations under the Non-Compete Agreements shall continue
until the later of (i) the end of the restricted period(s) under the Non-Compete Agreements as measured from Consultant’s
May 31, 2015 Employment Termination Date or (ii) the end or expiration of the Term of this Agreement. Consultant shall also be
independently subject under this Agreement to the obligation to maintain the confidentiality of all Confidential Information (as
defined in Section 7 below) during the Term and at all times thereafter.

 

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7.                 
Company Property. On or before the last day of the Term, Consultant shall, to the extent not previously
returned or delivered: (a) return all equipment, records, files, documents, data, programs or other materials and property in Consultant’s
possession, custody or control which relates or belongs to the Company or any one or more of its affiliates, including, without
limitation, all, Confidential Information (defined below), computer equipment, access codes, messaging devices, credit cards, cell
phones, keys and access cards; and (b) deliver all original and copies of confidential information, electronic data, notes, materials,
records, plans, data or other documents, files or programs (whether stored in paper form, computer form, digital form, electronically
or otherwise, on Company equipment or Consultant’s personal equipment) that relate or refer in any to (1) the Company or
any one or more of its affiliates, its business or its employees, or (2) the Company’s Confidential Information or similar
information. By signing this Agreement, Consultant represents and warrants that Consultant has not retained and has or shall timely
return and deliver all the items described or referenced in subsections (a) or (b) above; and, that should Consultant later discover
additional items described or referenced in subsections (a) or (b) above, Consultant shall promptly notify the Company and return/deliver
such items to the Company. “Confidential Information” means information (1) disclosed to or known by Consultant as
a consequence of or through his employment with the Company or one of its affiliates; and (2) which relates to any aspect of the
Company’s or an affiliate’s business, research, or development, and shall include, but is not limited to, the Company’s
or an affiliate’s trade secrets, proprietary information, business plans, marketing plans, financial information, employee
performance, compensation and benefit information, cost and pricing information, identity and information pertaining to customers,
suppliers and vendors, and their purchasing history with the Company, any business or technical information, design, process, procedure,
formula, improvement, or any portion or phase thereof, that is owned by or has, at the time of termination, been used by the Company,
any information related to the development of products and production processes, any information concerning proposed new products
and production processes, any information concerning marketing processes, market feasibility studies, cost data, profit plans,
capital plans and proposed or existing marketing techniques or plans, financial information, including, without limitation, information
set forth in internal records, files and ledgers, or incorporated in profit and loss statements, fiscal reports, business plans
or other financial or business reports, and information provided to the Company or an affiliate by a third party under restrictions
against disclosure or use by the Company or others. Nothing in this Section shall be construed, however, to require Consultant
to return to the Company any publicly available information or other information Consultant obtained by reason of his ownership
of Company stock or debt.

 

8.                 
Warranties. Consultant warrants that the Services (a) will be performed in a diligent and professional
manner; (b) will conform to the provisions of this Agreement; and (c) will be performed in accordance with applicable laws.

 

9.                 
General Provisions.

 

(a)               
Independent Contractor. Consultant understands and agrees that Consultant is serving as an independent contractor
of the Company during the Term, and that Consultant is not an employee of the Company. Consultant further understands and agrees
that the Company will not withhold any income or other taxes from the fees paid hereunder and that Consultant is responsible for
paying Consultant’s own income, social security, Medicare and other applicable taxes. Consultant further understands and
agrees that Consultant will not have any right to the benefits under, or rights and privileges to participate in, the Company’s
employee benefit plans (all of which are made available only to the Company’s employees), except as provided to him (i) as
a former employee of the Company pursuant to the applicable plans or (ii) pursuant to the accompanying Separation Agreement. Consultant
further agrees that any future reclassification of Consultant from independent contractor to employee status by a taxing authority
will not confer upon Consultant eligibility for any retroactive or prospective Company benefits.

 

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(b)              
Intellectual Property. Consultant agrees that all patentable or copyrightable ideas, writings, drawings, inventions,
designs, parts, machines or processes developed solely as a result of, or in the course of, the Services shall be the property
of the Company. Consultant herewith assigns all rights in such intellectual property to the Company, and shall supply all assistance
reasonably requested in securing for the Company’s benefit any patent, copyright, trademark, service mark, license, right
or other evidence of ownership of any such intellectual property, and will provide full information regarding any such item and
execute all appropriate documentation prepared by the Company in applying or otherwise registering, in the Company’s name,
all rights to any such item. The Company has the right to grant licenses to make, use, buy or sell any product or service derived
from the Services performed under this Agreement to its affiliates and subsidiaries.

 

(c)               
Conduct. Consultant will comply with all applicable Company policies during the Term, including, but limited
to: (i) no smoking; (ii) drug-free environment; (iii) dress code; (iv) non-harassment; (v) travel/expense guidelines; (vi) all
safety and security policies (including a prohibition against weapons), and (vii) computer security and use policies.

 

(d)              
Non-Assignment. Consultant may not assign or delegate this Agreement or any of Consultant’s rights or
obligations under this Agreement without the prior written consent of the Company. Any attempted assignment or delegation without
the necessary consent shall be void. Subject to the provisions of this Section, this Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and assigns.

 

(e)               
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be considered
an original instrument, but all of which shall be considered one and the same agreement. The parties shall execute two (2) originals
of this Agreement (one for each party), whether or not executed in counterparts.

 

(f)               
Entire Agreement. Except as otherwise specified herein, this Agreement supersedes all prior understandings
and agreements between the parties with respect to the subject matter hereof and may not be changed or terminated orally, and no
change, termination or attempted waiver of any of the provisions hereof shall be binding unless in writing and signed by the party
against whom the same is sought to be enforced.

 

(g)              
Governing Law. This Agreement shall be interpreted according to the laws of the State of Illinois.

 

[Signature Page to Follow]

 

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IN WITNESS WHEREOF, this
Agreement has been duly executed by the parties hereto.

 

 

	WALGREENS BOOTS ALLIANCE, INC.	 
	 	 	 
	By:	/s/ Kathleen Wilson-Thompson	 
	Name:	Kathleen Wilson-Thompson	 
	Title:	EVP and Global Chief Human Resources
Officer	 
	Dated:	12-2-2015	 
	 	 	 
	CONSULTANT	 
	 	 	 
	/s/ Timothy J. Theriault
	 
	Timothy J. Theriault	 
	Dated: 12-2-2015	 

 

    	5ex10_1.htm

Exhibit 10.1

 

 

PROMISSORY NOTE

 

$500,000.00

Cranford, New Jersey

January 6, 2016 (the “Effective Date”)

 

Tofutti Brands Inc., a Delaware corporation (the “Maker”), for value received, hereby promises to pay to the order of David Mintz (the “Holder”), the principal amount of $500,000, on December 31, 2017 (the “Maturity Date”), subject to prepayment under Section 2 below, together with interest as set out in Section 1 below.  Principal and interest are payable at the Holder’s office at c/o Tofutti Brands Inc., 50 Jackson Drive, Cranford, NJ 07016, or at such other location as the Holder may designate.

 

1. Interest.  The outstanding principal amount of this Note shall bear interest at a rate of 5% per annum (the “Interest Rate”), without compounding, accruing from the Effective Date and continuing until the entire principal amount is paid or otherwise satisfied.  Accrued interest shall be paid quarterly, commencing March 31, 2016, subject to prepayment under Section 2 below.

 

2. Prepayment.  The Maker may, at its option, prepay this Note in whole or in part at any time without premium or penalty, with any such payment being applied first against any accrued but unpaid interest and then against the outstanding principal amount of this Note.

 

3. Expenses.  If the Holder is required to sue the Maker for payment of any principal or interest under this Note, the Maker shall pay the Holder, in addition to the principal and interest amounts due under this Note, all costs and expenses incurred by the Maker in seeking to collect the amounts due under this Note, including attorney’s fees, both in any initial action and on appeal and in seeking to enforce any judgment against the Maker.

 

4. Event of Default.  Upon an Event of Default, without any action on the part of the Holder, the Interest Rate shall increase to 12% per annum (the “Default Interest”) and the entire principal and interest balance under this Note, and all other obligations of the Maker under this Note, shall be immediately due and payable, and the Holder shall be entitled to seek and institute any and all remedies available to him.  Each of the following events shall be an “Event of Default”: (a) the Maker fails to pay in full any amount of principal or interest due under this Note within the time prescribed in this Note or the Maker fails to satisfy any other obligation or requirement of the Maker under this Note; (b) a final judgment for the payment of money in excess of $25,000 is rendered against the Maker, and that judgment remains undischarged for a period of 30 days from the date of entry of that judgment, unless within that 30 day period that judgment is stayed or an appeal is taken from that judgment and the execution of that judgment stayed during that appeal; or (c) any proceedings under any bankruptcy laws of the United States of America or under any insolvency, reorganization, receivership, readjustment of debt, dissolution, liquidation or any similar law of any jurisdiction in effect now or in the future (whether in law or at equity) are filed by or against the Maker or for all or any part of its assets or the Maker makes a general assignment for the benefit of creditors.

 

5. Conversion of Note. At any time after the Effective Date, including prior to or upon the Maturity Date, the Conversion Amount (as defined in Section 5(a)(ii)) of this Note) shall be convertible into shares of the Maker's common stock (the "Common Stock") according to the terms and conditions set forth in this Section 5.

 

  

  

  

 

a. Certain Defined Terms. For purposes of this Note, the following terms shall have the following meanings:

 

i. “Business Day" shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the State of New Jersey are authorized or required by law or executive order to remain closed.

 

ii. "Conversion Amount" means the sum of (a) the principal amount of this Note to be converted with respect to which this determination is being made, (b) Interest; and (c) Default Interest, if any, if so included at the Holder's sole discretion. The Conversion Amount shall be determined as of the date a fully executed notice of conversion in the form attached hereto as Exhibit 1 is delivered to the Maker (the “Conversion Notice”).

 

iii. "Conversion Price" means the closing price of the Common Stock of the Maker on the NYSE MKT on the date this Note is entered into ($4.01 per share).

 

iv. "Person" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof.

 

b. Holder's Conversion Rights. At any time after the Effective Date, including prior to, or upon, the Maturity Date, the Holder shall be entitled to convert all the Conversion Amount into fully paid and non-assessable shares of Common Stock in accordance with the stated Conversion Price.

 

c. Fractional Shares. The Maker shall not issue any fraction of a share of Common Stock upon any conversion; if such issuance would result in the issuance of a fraction of a share of Common Stock, the Maker shall round such fraction of a share of Common Stock up to the nearest whole share.

 

d. Mechanics of Conversion. The conversion of this Note shall be conducted in the following manner:

 

i. Holder's Conversion Requirements. To convert this Note into shares of Common Stock on any date set forth in the Conversion Notice by the Holder (the "Conversion Date"), the Holder shall transmit by email, facsimile or otherwise deliver, for receipt on or prior to 6:00 p.m., Eastern Time, on such date or on the next business day, a copy the Conversion Notice to the Maker.

 

ii. Maker's Response. Upon receipt by the Maker of a copy of a Conversion Notice, the Maker shall as soon as practicable, but in no event later than two (2) Business Day after receipt of such Conversion Notice, send, via email, facsimile or overnight courier, a confirmation of receipt of such Conversion Notice to such Holder indicating that the Maker will process such Conversion Notice in accordance with the terms herein. Within two (2) Business Days after the date the Conversion Notice is delivered, the Maker shall have issued and electronically transferred the shares to the Broker indicated in the Conversion Notice; should the Maker be unable to transfer the shares electronically, it shall, within two (2) Business Days after the date the Conversion Notice was delivered, have surrendered to an overnight courier for delivery the next day to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder, for the number of shares of Common Stock to which the Holder shall be entitled.

 

 

  

  

  

 

iii. Record Holder. The person or persons entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

 

iv. Rescindment of Conversion Notice. If: (i) the Maker fails to respond to Holder within two business days from the date of delivery of a Conversion Notice confirming the details of the Conversion, (ii) the Maker fails to provide the shares requested in the Conversion Notice within three business days from the date of the delivery of the Conversion Notice, (iii) the Holder is unable to deposit the Shares requested in the Conversion Notice for any reason related to the Maker's standing with the SEC or FINRA, or any action or inaction by the Maker, or (iv) if the Holder is informed that the Maker does not have the authorized and issuable shares of Common Stock available to satisfy the Conversion, the Holder maintains the option and sole discretion to rescind the Conversion Notice by delivering a notice of rescindment to the Maker in the same manner that a Conversion Notice is required to be delivered to the Maker pursuant to the terms of this Note.

 

v. Transfer Agent Fees and Legal Fees. The issuance of the certificates shall be without charge or expense to the Holder. The Maker shall pay any and all transfer agent fees, legal fees, and advisory fees required for execution of this Note and processing of any Notice of Conversion.

 

6. Miscellaneous Provisions.

 

a. Benefits.  This Note shall be binding upon the Maker and its successors and assigns and shall inure to the benefit of the Holder and his successors, assigns, heirs, executors and personal representatives.

 

b. Governing Law.  This Note and the rights and obligations of the Maker and the Holder under this Note shall be governed by, and construed in accordance with, the laws of the State of New Jersey, without giving effect to any choice or conflict of law provision or rule, whether of the State of New Jersey or any other jurisdiction, that would cause the laws of any jurisdiction other than the State of New Jersey to apply.

 

c. Waiver and Consent.  To the fullest extent permitted by law, the Maker hereby waives demand, presentment, protest, notice of dishonor, suit against or joinder of any other person, and all other requirements necessary to charge or hold the Maker liable under this Note.

 

d. Amendment and Waiver.  This Note may be amended, and any provision of this Note may be waived, solely by a writing that sets out the amendment or waiver and is signed by each party to be bound thereby.  The waiver by the Holder of a breach of any provision of this Note shall not operate or be construed as a waiver of any other breach.  No remedy conferred under this Note upon the Holder is intended to be exclusive of any other remedy available to the Holder, under the terms of this Note or otherwise.  No single or partial exercise by the Holder of any right, power or remedy under this Note shall preclude any other or further exercise of that right, power or remedy.  The failure of the Holder to exercise any right or remedy under this Note or otherwise, or delay in exercising that right or remedy, shall not operate as a waiver of that right or remedy.

 

 

  

  

  

 

e. Severability.  The Maker and the Holder want this Note be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.  Accordingly, if any particular provision of this Note is determined by a court of competent jurisdiction to be invalid, prohibited or unenforceable for any reason, that provision, as to that jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Note or affecting the validity or enforceability of this Note or affecting the validity or enforceability of that provision in any other jurisdiction.  Notwithstanding the immediately preceding sentence, if that provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in that jurisdiction, it shall, as to that jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Note or affecting the validity or enforceability of that provision in any other jurisdiction.

 

f. Facsimile or Electronic Signature.  A facsimile or electronic signature on this Note shall be acceptable and binding.

 

g. Section Headings.  The descriptive section headings herein have been inserted for convenience only and shall not be deemed to limit or otherwise affect the construction of any provisions of this Note.

 

IN WITNESS WHEREOF, the Maker has executed this Note as of the date first written above.

 

TOFUTTI BRANDS, INC.

By:/s/Steven Kass

Name: Steven Kass

Title: Chief Financial Officer

  

  

  

Exhibit 1

 

Conversion Notice

 

Reference is made to the Promissory Note issued by Tofutti Brands Inc., (the "Note"), dated January 6, 2016 in the principal amount of $500,000 with 5% interest. This Note currently holds a principal balance of $______. The features of conversion stipulate a Conversion Price, pursuant to the provisions of Section 5(a)(iii) in the Note.

 

In accordance with and pursuant to the Note, the undersigned hereby elects to convert $______ of the principal/interest balance of the Note, indicated below into shares of Common Stock (the "Common Stock"), of the Maker, by tendering the Note specified as of the date specified below.

 

Date of Conversion: __________

 

Please confirm the following information:

 

Conversion Amount: $ ____________________

 

Conversion Price: $ ____________________

 

Number of shares of Common Stock to be issued:

Holder Authorization:

 

_________________

David Mintz

 

[DATE]

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