Document:

EX-10.01

 Exhibit 10.01 

 

					
	

	 	 Diamond Foods, Inc.
 600
Montgomery Street
 13th Floor
 San
Francisco, CA 94111
	 	     

    

diamondfoods.com

NASDAQ: DMND

 June 7, 2013 
 Raymond P. Silcock 
 [address omitted] 
 Dear Ray: 
 We are pleased to offer you the position of Executive Vice President and Chief
Financial Officer with Diamond Foods, Inc. (“Diamond” or the “Company”). In this position you will report to Brian Driscoll, President & CEO. The terms and conditions of our offer are as follows: 

Start Date: 
 We
anticipate that your start date will be June 11, 2013. 
 Annual Base Salary: 

$525,000 annualized salary, payable in accordance with standard Company payroll practices. 

Bonus Incentive Program: 
 You will be eligible to participate in the annual bonus program, which is designed to reward outstanding performance. Your bonus potential will be based on financial metrics established by the Company and
individual performance goals established by you and your supervisor. Your position is eligible for a target bonus potential of 70% of base salary. Your bonus award will be based on a combination of achieving both company financial metrics and annual
individual performance objectives. For exceptional Corporate and individual performance you may be eligible for a bonus up to 140% of base salary. You will be provided a bonus at target for fiscal 2013, prorated for the portion of the fiscal year
you are employed. You must continue to be an active employee through the end of the fiscal year for eligibility in the bonus program. The bonus program is subject to design changes as may be determined by the Company in its sole discretion.

 Equity Awards: 
 Equity Awards: You will be awarded the equivalent of $1,300,000 of economic value of equity subject to approval by the Board of Directors, with half the value in the form of restricted stock and
half the value in the form of options to purchase common stock. The restricted stock award will be for a number of shares with an aggregate value equal to $650,000 divided by the closing price of the Company’s common stock on the Nasdaq Global
Select Market on the grant date (“Restricted Award”). The stock option shall be granted at an exercise price equal to the closing price of the 

  
 

 

 

 
  

 
Company’s common stock on the Nasdaq Global Select Market on the grant date and will be for a number of shares with an aggregate value of $650,000 divided by the fair value of the
Company’s stock options (using the company’s Black Scholes methodology) and utilizing the closing price of the Company’s common stock on the Nasdaq Global Select Market on the grant date. The options will vest and become exercisable
over a four-year period, with 25% of shares vesting on the first anniversary of the date of grant, and the remaining shares vesting ratably on a quarterly basis over the 36-month period following the first anniversary of the date of grant. The
restricted stock will vest over a four-year period, with 25% of the restricted stock vesting on each anniversary of your date of grant. The options and restricted stock will require your completion of applicable grant documents, which provide that
vesting is subject to you remaining in continuous service an as employee of Diamond through each vest date. 
 You will be
eligible for consideration for annual equity grants starting in calendar 2013, as administered by the Compensation Committee and Board. The annual equity grant cycle typically occurs in the fall. 

Performance Evaluation/Salary Review: 
 An evaluation of your performance against the Company’s expectations, along with financial consideration, will be conducted in accordance with the annual salary plan around October 2014. 

Health & Welfare Benefits: 
 Eligibility for Diamond Foods, Inc. Health & Welfare Benefits commences on the first day of employment. Plan description of these benefits will be provided under separate cover during
orientation. 
 Group Medical: Blue Cross 
 Group Dental Insurance: Ameritas Dental 
 Group Vision Insurance:
Vision Service Plan (VSP) 
 Group Life & AD&D Insurance: The Company provides basic
life and AD&D insurance at one and a half (1 1/2) times your annual base salary. We offer the option to purchase additional voluntary life insurance at competitive
group rates. 
 Long & Short Term Disability: The Company will provide both of these plans for you at no
cost. 
 IRS Section 125: You will be provided the opportunity to participate in three (3) optional plans –
(a) for pre-tax employee co-share premiums; (b)Tax-free Medical Flexible Spending Account (FSA) up to $2,600 per year; or (c) Tax-free Dependent Care Flexible Spending Account (FSA) up to $5,000 per year. 

  
 

 

 

 
  

 Executive Premium Health Benefit: 

You will be eligible to participate in the Company’s Exec-u-Care program, which provides for additional health and medical
reimbursements that are not otherwise covered by our Group Medical program. 
 The Retirement Program: 

Diamond has a Savings and Investment Plan which is a 401k plan with the following terms: 

 

	 	a.	You will be vested at 100% on your first day of eligibility after 6 months of employment and worked 1,000 hours. 

 

	 	b.	Company will make a contribution equal to 3% of employee’s base salary on a quarterly basis after six (6) months of employment. 

Other Benefits: 

Holidays: Ten (10) paid holidays per year. 
 Paid Time Off (PTO) Annual Accrual: 
  

			
	Date of Hire – completing 4 yrs.	  	4.615 hrs/pay period = 3 weeks/year
	5 years – completing 14 yrs.	  	6.154 hrs/pay period = 4 weeks/year
	15 or more years	  	7.692 hrs/pay period = 5 weeks/year

 Health Club Membership: Diamond will provide you with a membership in a health club. Currently, the
company provides memberships for senior executives at the Bay Club in San Francisco. 
 Company Car Allowance: Diamond
will provide you a monthly car allowance of $1,000, subject to all normal tax withholdings. 
 Relocation: You will be
provided with an Executive Homeowner relocation package. 
 Change of Control: Upon approval by the Board of Directors,
the Company will enter into its standard form of Change of Control Agreement with you. 
 Severance upon Termination without
“Cause”: In the event the Company terminates your employment during your first three years of service, without Cause as defined below, you will be entitled to receive the following termination benefits: 

 

	 	a.	Payment of 12 months of base salary, based on your base salary on the date of termination; 

 

	 	b.	Payment of your target bonus amount for the year in which the termination occurs; 

  
 

 

 

 
  

	 	c.	Provided you were employed on the first anniversary of your start date, then the vested portion of your Restricted Award will be calculated as if the Restricted Award
had been subject to quarterly vesting following the Employment Date; 

  

	 	d.	Provided you validly elect to continue coverage under COBRA, a lump-sum payment equal to twelve (12) months of your portion of premiums for you and your eligible
dependents paid for continued health benefits. 

  

	 	e.	“Cause” means a good faith determination, that any of the following has occurred: (a) your commission of a felony or an act constituting
common law fraud, which has a material adverse effect on the business or affairs of the Company or its affiliates or stockholders; (b) your intentional or willful misconduct or refusal to follow the lawful instructions of your supervisor the
Board; or (c) your intentional breach of the Company confidential information obligations, which has an adverse effect on the Company or its affiliates or stockholders or (d) your material breach of this Agreement. For purposes of this
definition, no act or failure to act shall be considered “intentional or willful” unless it is done, or omitted to be done, in bad faith without a reasonable belief that the action or omission is in the best interests of the Company.

 In the event of a termination in connection with a Change of Control for which you are eligible to receive benefits pursuant to
the Change of Control Agreement, the foregoing provisions in Severance upon Termination without “Cause” shall not apply. Compensation payable to you in this letter is subject to recoupment pursuant to the Company’s compensation
recoupment policy, if any, adopted by the Board or required by law during the term of your employment with the Company that is applicable generally to executive officers of the Company. Compensation is also subject to withholdings and all applicable
taxes. 
 Parachute Payments. In the event that the severance and other benefits provided for in this Agreement or otherwise payable to
you (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section, would be subject to the excise tax imposed by Section 4999 of the Code, then, at your discretion,
your severance and other benefits under this Agreement shall be payable either (i) in full, or (ii) as to such lesser amount which would result in no portion of such severance and other benefits being subject to the excise tax under
Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by you on an after-tax basis, of the
greatest amount of severance benefits under this Agreement, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code. Any reduction shall be made in the following manner: first a pro-rata
reduction of (i) cash payments subject to Section 409A of the Code as deferred compensation and (ii) cash payments not subject to Section 409A of the Code, and second a pro rata cancellation of (i) equity-based compensation
subject to Section 409A of the Code as deferred compensation and (ii) equity-based compensation not subject to Section 409A of the Code. Reduction in either cash payments or equity compensation benefits shall be made pro-rata between
and among benefits which are subject to Section 409A of the Code and benefits which are exempt from Section 409A of the Code. Unless the Company and you otherwise agree in writing, any determination required under this Section shall be
made in writing by the Company’s independent public accountants (the “Accountants”), whose determination shall be conclusive and binding upon you and the Company for all purposes. For purposes of making

  
 

 

 

 
  

 
the calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations
concerning the application of Sections 280G and 4999 of the Code. The Company and you shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The
Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section. 

Section 409A. To the extent (a) any payments or benefits to which you become entitled under this Agreement, or under any other agreement
or Company plan, in connection with your termination of employment with the Company constitute deferred compensation subject to Section 409A of the Code and (b) you are deemed at the time of such termination of employment to be a
“specified employee” under Section 409A of the Code, then such payments shall not be made or commence until the earliest of (i) the expiration of the six (6)-month period measured from the date of your “separation from
service” (as such term is at the time defined in Treasury Regulations under Section 409A of the Code) from the Company; or (ii) the date of your death following such separation from service; provided, however, that such
deferral shall only be effected to the extent required to avoid adverse tax treatment to you, including (without limitation) the additional twenty percent (20%) tax for which you would otherwise be liable under Section 409A(a)(1)(B) of the
Code in the absence of such deferral. Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this paragraph shall be
paid to you or your beneficiary in one lump sum (without interest). Any termination of your employment is intended to constitute a “separation from service” and will be determined consistent with the rules relating to a “separation
from service” as such term is defined in Treasury Regulation Section 1.409A-1. 
 This Agreement shall be interpreted and administered
in a manner so that any amount or benefit payable hereunder shall be paid or provided in a manner that is either exempt from or compliant with the requirements of Section 409A of the Code and applicable regulations thereunder. It is intended
that each installment of the payments provided hereunder constitute separate “payments” for purposes of Treasury Regulation Section 1.409A-2(b)(2)(i). It is further intended that payments hereunder satisfy, to the greatest extent
possible, the exemptions from the application of Section 409A of the Code (and any state law of similar effect) provided under Treasury Regulations Section 1.409A-1(b)(4) (as a “short-term deferral”) and
Section 1.409A-1(b)(9) (as a “separation pay due to involuntary separation”). To the extent any payment hereunder may be classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be
deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A of the Code under another provision of Section 409A of the Code. To the extent that any payment under this Agreement is subject to
Section 409A of the Code and ambiguous as to its compliance with Section 409A of the Code, the provision will be read in such a manner so that all payments hereunder comply with Section 409A of the Code 

Except as otherwise expressly provided herein, to the extent any expense reimbursement or the provision of any in-kind benefit under this Agreement is
determined to be subject to Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year shall not affect the expenses eligible for reimbursement in any
other taxable year (except for any lifetime or other aggregate 

  
 

 

 

 
  

 
limitation applicable to medical expenses), in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which you incurred such expenses,
and in no event shall any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit. 
 Competitors of Diamond Foods, Inc.: 
 You acknowledge that you have
acquired and will acquire knowledge regarding confidential, proprietary and/or trade secret information in the course of performing your responsibilities for Diamond Foods, Inc., and you further acknowledge that such knowledge and information is the
sole and exclusive property of Diamond Foods, Inc. You recognize that disclosure of such knowledge and information, or use of such knowledge and information, to or by a competitor could cause serious and irreparable harm to Diamond Foods, Inc. You
therefore agree that you shall not accept employment with, nor provide any form of service for any direct competitor of Diamond in sales, distribution, processing or related businesses during your employment with Diamond Foods, Inc. 

Obligations of Employee During & After Employment: 
 Records: All records, files, documents and the like, or abstracts, summaries or copies thereof, relating to the business of the Company or the business of any subsidiary or affiliated companies,
which the Company or you shall prepare or use or come into contract with, shall remain the sole property of the Company or the affiliated or subsidiary company, as the case may be, and shall not be removed from the premises without the written
consent of the Company, and shall be promptly returned upon termination of employment. 
 Non-Solicitation: During your
employment with the Company and for a period of one year after termination, for any reason, you agree that you will not, directly or indirectly (i) solicit any employee of the Company to leave the employment of the Company or (ii) induce
or attempt to induce, any customer or supplier of the Company to cease doing business with the Company. 
 Ray, we believe this outlines the
primary components related to your employment with the Company. It is our practice to make this offer contingent upon a successful post-offer drug screen, background and reference check. We are looking forward to having the opportunity of developing
a meaningful business relationship. If you have any questions, please feel free to contact the Human Resource Department or myself. Should you accept our offer of employment, please sign, date and return the original copy of this letter to the
Company, we have included a copy of this letter for your files. 
 Sincerely, 

  
 

 

 

 
  

	
	DIAMOND FOODS, INC.
	
	 /s/ Brian Driscoll

	Brian Driscoll
	President & CEO

 Diamond Foods, Inc. operates under an employment-at-will concept, which means either party may terminate the employment
relationship at any time, with or without cause and with or without notice. In addition, no statements made in this offer letter are meant to imply or state a guarantee of continued employment. It is also understood that this is a contingent offer,
contingent on a successful drug screen and background check. If any parts of the terms set forth in this letter are determined to be unenforceable, the remaining terms shall not be affected and shall remain fully enforceable. 

 

							
	Acceptance:	 	 /s/ Raymond P. Silcock
	 		 	Date: June 7, 2013
		 	Raymond P. Silcock	 		 	

  

	cc:	Personnel File 

  
 

 

			
	 

	  	Diamond Foods, Inc.

600 Montgomery Street, 13th Floor
San Francisco, CA 94111
diamondfoods.com
NASDAQ: DMND

 June 7, 2013 
 Raymond P. Silcock 
 [address omitted] 
 Dear Ray: 
 This letter outlines the agreement pertaining to your relocation from Greenwich,
Connecticut to the San Francisco Bay Area. 
 Diamond will provide you a gross relocation amount (subject to normal withholdings) of $300,000 to
be used at your discretion to cover relocation related expenses. The payment will be made in two weeks following your first day of employment. 

In addition, Diamond will cover the following expenses: 
 Movement of Household Goods 
  

	 	•	 	 A professional van line will be selected by Diamond to move your household goods from Greenwich to your destination in California.

  

	 	•	 	 The van line will pack, load, and unload goods, including normal appliance servicing. 

 

	 	•	 	 Storage up to 60 days. 

  

	 	•	 	 Shipment up to two vehicles. 

  

	 	•	 	 This move can occur in two separate occasions with one smaller move (1-2 bedrooms of household goods and one vehicle) and one larger move (an entire
household of multiple bedrooms and one vehicle). 

 Transition Assistance 

 

	 	•	 	 Up to 10 nights of lodging in San Francisco at a hotel as you search for temporary living accommodations. 

 

	 	•	 	 Reasonable expenses including rental car, meals, dry cleaning. 

 Return Trips (in the first 60 days) 
  

	 	•	 	 During your first 60 days you may expense up to 5 return trips home. 

 All other relocation expenses, other than those identified above, should be covered at your discretion and expense. 
  

 

 

 
  

 By signing this you agree that as a condition of receiving financial assistance for your relocation from
Greenwich, Connecticut to the San Francisco Bay Area, you agree to the following stipulations. 
 All expenses paid are contingent upon you
remaining employed by Diamond Foods for a minimum of 12 full months from your date of hire. In the event you voluntarily terminate your employment or are terminated for cause (as defined in your offer letter dated 6/7/13) within 12 months of your
date you hire, you promise to repay 100% of all relocation expenses paid or reimbursed on your behalf. 
 To assist you in your transition, you
will have access to Diamond’s relocation provider – Global Mobility Solutions (GMS). The phone number is: 800.617.1904 
  

					
	 /s/ Raymond P. Silcock
	 		 	 June 7, 2013

	Raymond P. Silcock	 		 	Date
	EVP, Chief Financial Officer	 		 	

  

	
	Sincerely,
	
	/s/ Linda B. Segre
	Linda B. Segre
	Senior Vice President, Corporate Strategy and HREX10.1

 EXHIBIT 10.1 

PARTIAL ASSIGNMENT OF AMENDED AND RESTATED 
 MEDIA SERVICES AGREEMENT 
 PARTIAL ASSIGNMENT OF AMENDED AND RESTATED
MEDIA SERVICES AGREEMENT, dated as of June 4, 2013 (this “Agreement”), by and among, Alloy, LLC, a Delaware limited liability company (as successor to Alloy, Inc.) (“Alloy”), Alloy Merchandise, LLC, a
Delaware limited liability company (“AMLLC”), dELiA*s, Inc., a Delaware corporation and sole member of AMLLC (“dELiA*s”) and HRSH Acquisitions LLC, a New York limited liability company (“HRSH”).
Each of Alloy, AMLLC, dELiA*s and HRSH are sometimes hereinafter referred to as a (“Party”) and collectively as the (“Parties”). 
 WHEREAS, AMLLC, dELiA*s and HRSH are parties to that certain Asset Purchase Agreement, dated as of the date hereof (the “Asset Purchase Agreement”); and 

WHEREAS, pursuant to the Asset Purchase Agreement, the Parties have agreed to a partial assignment and assumption of that certain
Amended and Restated Media Services Agreement, dated as of November 8, 2010 and amended as of May 6, 2011 (the “MSA”), by and between dELiA*s and Alloy. 

NOW, THEREFORE, in consideration of the foregoing, of the mutual representations, warranties, covenants and agreements herein
contained and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties hereby agree as follows: 

1. Assignment and Assumption; Continued Performance. 
 (a) From and after the date hereof, dELiA*s hereby irrevocably assigns, sells, transfers and sets over to HRSH all right, title and interest of dELiA*s in and to the MSA to the extent pertaining to the
business of marketing and selling branded junior apparel, dresses, accessories, swimwear, footwear and outerwear to young women via catalogs and the Internet under the Alloy name, any AMLLC domain name owned by AMLLC prior to the date hereof or
through the Alloy Licensed URL (as defined in the MSA) (the “Business”) including, without limitation, those portions of any jointly held right, title or interest between dELiA*s and AMLLC pertaining thereto. HRSH hereby assumes all
of the liabilities and obligations of dELiA*s arising after the date hereof under those portions of the MSA pertaining to the Business including, without limitation, those portions of any joint obligations between dELiA*s and AMLLC pertaining
thereto and any and all liabilities and obligations relating to any services provided to, by or on behalf of the Business pursuant to the MSA from and after the date hereof. 
 (b) Alloy agrees to provide to HRSH all of the services that were provided to the Business immediately prior to the date hereof by Alloy under the MSA (whether the provision of such service is
characterized in the MSA as such or otherwise) in accordance with the terms and conditions of the MSA and Alloy further agrees to apportion all costs and expenses relating to the services provided to dELiA*s and HRSH under the MSA following the date
hereof between such parties based upon such arrangement and invoice each of the parties directly. 

 2. dELiA*s Liabilities. Any and all liabilities and obligations of dELiA*s relating
to any services provided to, by or on behalf of the Business pursuant to the MSA from and after the date hereof are hereby terminated. For the avoidance of doubt, dELiA*s shall remain liable for any and all services provided to, by or behalf of the
Business pursuant to the MSA prior to the Closing Date. Except as specifically set forth herein, dELiA*s obligations under the MSA shall remain unaffected by this Agreement. 
 3. Acknowledgement. dELiA*s and Alloy each specifically acknowledge that HRSH is not responsible or liable under the MSA for any liabilities or obligations arising out of the MSA prior to the date
hereof. 
 4. Consent. Alloy hereby consents to such assignment and assumption according to the terms and conditions as
set forth herein and agrees, from and after the date hereof, to look solely to HRSH for the performance of each covenant, condition, agreement and obligation contained in those portions of the MSA solely pertaining to the Business arising on or
after the date hereof. 
 5. Miscellaneous. 
 (a) This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts executed in and to be performed entirely in that State, without regard
to conflicts of laws principles thereof to the extent that the general application of the laws of another jurisdiction would be required thereby. 
 (b) All notices and other communications under this Agreement shall be in writing and shall be deemed given (i) when delivered personally by hand (with written confirmation of receipt), (ii) one
business day following the day sent by nationally-recognized overnight courier (with written confirmation of receipt), or (iii) on the date sent by facsimile, with confirmation of transmission, if sent during normal business hours of the
recipient, if not, then on the next business day. Such communications, to be valid, must be addressed as follows (or to such other address or facsimile number as a Party may have specified by notice given to the other Party pursuant to this
provision): 
 if to HRSH: 
 c/o Artisan House Holdings, LLC 
 550 7th Avenue, 12th Floor 
 New York, New York 10018 
 Facsimile: (212) 714-2770

 Attn: Steve Russo 
 with a copy to: 
 Lowenstein Sandler LLP 

1251 Avenue of the Americas 
 New York, New York 10020 
 Facsimile: (973) 422-6807

 Attn: Mathew B. Hoffman 

  
 2 

 if to AMLLC: 

c/o dELiA*s, Inc. 

50 West 23rd Street 
 New York, New York 10010 
 Facsimile: (212) 590-6310

 Attn: General Counsel 
 with a copy to: 
 Troutman Sanders LLP 

The Chrysler Building 
 405 Lexington Avenue 
 New York, New York 10174 

Facsimile: (212) 704-5935 
 Attn: William D. Freedman 
 if to dELiA*s: 

dELiA*s, Inc. 

50 West 23rd Street 
 New York, New York 10010 
 Facsimile: (212) 590-6310

 Attn: General Counsel 
 with a copy to: 
 Troutman Sanders LLP 

The Chrysler Building 
 405 Lexington Avenue 
 New York, New York 10174 

Facsimile: (212) 704-5935 
 Attn: William D. Freedman 
 if to Alloy: 

Alloy, LLC 
 151 West 26th Street, 11th Floor 
 New York, NY 10001 

Attention: CEO 

  
 3 

 with a copy to: 

Alloy, LLC 
 151 West 26th Street, 11th Floor 
 New York, NY 10001 

Attention: General Counsel 
 Any notice or other communication that has been given or made as of a date that is not a Business Day shall be deemed to have been given or made on the next succeeding day that is a Business Day.

 (c) This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of
which shall constitute one and the same instrument. 
 [remainder of page intentionally left blank] 

  
 4 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly
executed as of the date first written above. 
  

					
	HRSH ACQUISITIONS LLC
		
	By:	 	/s/ Steven Russo
		 	Name:	 	Steven Russo
		 	Title:	 	Managing Member
	
	ALLOY MERCHANDISE, LLC
	
		
	By:	 	/s/ Walter Killough
		 	Name:	 	Walter Killough
		 	Title:	 	CEO
	
	dELiA*s, INC.
		
	By:	 	/s/ Walter Killough
		 	Name:	 	Walter Killough
		 	Title:	 	CEO
	
	ALLOY, LLC
		
	By:	 	/s/ Gina DiGioia
		 	Name:	 	Gina DiGioia
		 	Title:	 	Secretary

 [Signature Page to Partial Assignment of 

Amended and Restated Media Services Agreement]

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