Document:

EX-10.1

SETTLEMENT AGREEMENT AND MUTUAL RELEASE

This Settlement Agreement and Mutual Release (this “Settlement”) is made as of this 14th day
of September 2009, by and between Roundy’s Supermarkets, Inc., formerly known as Roundy’s, Inc.
(“Roundy’s”), a Wisconsin corporation, and Nash Finch Company (“Nash Finch”), a Delaware
corporation.

WHEREAS, on or about February 24, 2005, Roundy’s and Nash Finch executed an Asset Purchase
Agreement (“APA”), effectuating the sale from Roundy’s to Nash Finch of the assets and associated
business of two wholesale distribution centers located in Lima, Ohio, and Westville, Indiana, as
well as various other assets as described in the APA. The parties subsequently executed an
amendment to the APA, dated as of February 2, 2006.

WHEREAS, following the closing of the APA, Roundy’s asserted that a post-closing purchase
price adjustment pursuant to Section 2.07 of the APA, as amended, resulted in an additional amount
owing from Nash Finch to Roundy’s.

WHEREAS, following the closing of the APA, Nash Finch notified Roundy’s of certain claims it
asserted against Roundy’s arising out of or relating to the APA and the negotiations leading to the
APA, including, without limitation, certain indemnification claims under the APA.

WHEREAS, on or about February 11, 2008, Roundy’s filed an action against Nash Finch in the
United States District Court for the Eastern District of Wisconsin, Case Number 08-C-0142, alleging
a claim of breach of contract against Nash Finch, as set forth more specifically therein, relating
to the post-closing purchase price adjustment under Section 2.07 of the APA as amended (the
“Litigation”). As part of the Litigation, Nash Finch asserted certain counterclaims and amended
counterclaims against Roundy’s arising out of or relating to the APA and the negotiations leading
to the APA, including, without limitation, certain indemnification claims under the APA.

WHEREAS, the parties now desire to fully and finally settle and compromise their dispute and
the Litigation.

NOW THEREFORE, in consideration of the mutual covenants, conditions, and agreements contained
herein, and for other good and valuable consideration, the adequacy and sufficiency of which are
hereby acknowledged, the parties agree as follows:

1. Immediately upon the execution of this Settlement, Roundy’s shall cause to be
dismissed, with prejudice, its claims against Nash Finch in the Litigation. Additionally, and also
immediately upon the execution of this Settlement, Nash Finch shall cause to be dismissed, with
prejudice, its counterclaims against Roundy’s in the Litigation. The dismissals contemplated by
this paragraph shall be by joint stipulation, each side to bear its own costs.

2. This Settlement is not and shall not in any way be construed as an express or
implied admission by any party of any act of liability, fault, or wrongdoing whatsoever or an
admission of a violation of any agreement, law, statute, rule or regulation, but is, instead, a
compromise settlement of disputed claims made in order to avoid the expense, burden, and
inconvenience of protracted litigation.

3. For purposes of this Settlement, the terms “Nash Finch Released Parties” or “Nash
Finch Releasing Parties” shall mean Nash Finch, and each of its current and former affiliates,
subsidiaries, parent corporations (in each case, whether direct or indirect), successors or
assigns, divisions, predecessors, transferors, transferees, partners, trustees, members, officers,
directors, employees, shareholders, representatives, insurers, agents, consultants, and attorneys,
and all persons acting by, for, through, under or in concert with any of them. The terms “Roundy’s
Released Parties” or “Roundy’s Releasing Parties” shall mean Roundy’s, and each of its current and
former affiliates, subsidiaries, parent corporations (in each case, whether direct or indirect),
successors or assigns, divisions, predecessors, transferors, transferees, partners, trustees,
members, officers, directors, employees, shareholders, representatives, insurers, agents,
consultants, and attorneys, and all persons acting by, for, through, under or in concert with any
of them.

4. Nash Finch represents and warrants that it is the sole owner of any and all
Released Claims that were or could have been made against the Roundy’s Released Parties, and that
it has not heretofore assigned or transferred to any person or entity any right, claim, or interest
in any of the claims released pursuant to paragraph 6 hereof.

5. Roundy’s represents and warrants that it is the sole owner of any and all
Released Claims that were or could have been made against the Nash Finch Released Parties, and that
it has not heretofore assigned or transferred to any person or entity any right, claim, or interest
in any of the claims released pursuant to paragraph 7 hereof.

6. Nash Finch hereby unconditionally releases, acquits and forever discharges the
Roundy’s Released Parties from any and all charges, complaints, claims, liabilities, obligations,
controversies, damages, rights, suits, demands, actions, and causes of action (i) asserted, or that
could have been asserted, in the Litigation, (ii) arising out of, relating in any way to, in
connection with, or based upon any representations or warranties made in the APA or in the
negotiations leading to the APA and/or (iii) all claims for attorneys’ fees and/or expenses, and
all other common law or statutory causes of action related thereto (the “Nash Finch Released
Claims”).

7. Nash Finch hereby covenants and agrees that it shall not now or hereafter
institute, participate in, maintain or assert (either directly or indirectly, on its own behalf,
derivatively or on behalf of any other person) any of the Nash Finch Released Claims, as set forth
in paragraph 6, above, in any forum or in any manner against any of the Roundy’s Released Parties.
Nash Finch hereby covenants and agrees that it shall indemnify and hold the Roundy’s Released
Parties harmless from and against any claim, loss, damage, cost or expense, including, without
limitation, attorneys’ fees, by reason of a breach by Nash Finch of any of the representations,
warranties, and covenants made under this Settlement.

8. Roundy’s hereby unconditionally releases, acquits and forever discharges the Nash
Finch Released Parties from any and all charges complaints, claims, liabilities, obligations,
controversies, damages, rights, suits, demands, actions, and causes of action (i) asserted, or that
could have been asserted, in the Litigation, (ii) arising out of, relating in any way to, in
connection with, or based upon any representations or warranties made in the APA or in the
negotiations leading to the APA and/or (iii) all claims for attorneys’ fees and/or expenses, and
all other common law or statutory causes of action related thereto (the “Roundy’s Released
Claims”).

9. Roundy’s hereby covenants and agrees that it shall not now or hereafter
institute, participate in, maintain or assert (either directly or indirectly, on its own behalf,
derivatively or on behalf of any other person) any of the Roundy’s Released Claims, as set forth in
paragraph 8, above, in any forum or in any manner against any of the Nash Finch Released Parties.
Roundy’s hereby covenants and agrees that it shall indemnify and hold the Nash Finch Released
Parties harmless from and against any claim, loss, damage, cost or expense, including, without
limitation, attorneys’ fees, by reason of a breach by Roundy’s of any of the representations,
warranties, and covenants made under this Settlement.

10. Nothing in this Settlement shall preclude any action to enforce any of the terms
of this Settlement. This Settlement shall be deemed to have been mutually prepared by the parties
and shall not be construed against any of them by reason of authorship.

11. The parties expressly acknowledge that: they have read and voluntarily executed
this Settlement; that none of the parties has been induced to sign this Settlement through any
opinion or representation of fact made by the other party, except representations made under this
Settlement; and that they are not relying on any such opinion or representation, except
representations made expressly in this Settlement.

12. This Settlement is binding upon and shall inure to the benefit of, and with full
right of enforcement by, the parties hereto, and their respective heirs, executors, administrators,
personal representatives, predecessors, successors, assigns, subsidiaries, divisions, affiliates,
ventures, parent companies, attorneys, agents, employees, officers, directors, trustees,
associates, owners, partners, shareholders, members, and legal representatives.

13. This Settlement sets forth the sole and entire agreement between the parties
hereto with respect to the subject matter hereof. This Settlement fully supersedes any and all
prior agreements or understandings between the parties hereto pertaining to the subject matter
hereof.

14. This Settlement may be waived or modified only by a written agreement signed by
each of the parties hereto.

15. THE PARTIES TO THIS SETTLEMENT HEREBY IRREVOCABLY WAIVE THE RIGHT TO A TRIAL BY
JURY IN ANY ACTION TO ENFORCE THIS SETTLEMENT, AND HEREBY GIVE THEIR CONSENT THAT ANY SUCH ACTION
WILL BE TRIED TO THE COURT WITHOUT A JURY.

16. This Settlement may be executed by facsimile and in identical counterparts, each
of which shall constitute one and the same instrument.

17. Each party represents and warrants that it is duly authorized and has full power
to execute this Settlement. Each signatory hereto represents and warrants that it is duly
authorized and has full power to execute this Settlement on behalf of the party for which it is
executing this Settlement.

18. Neither party hereto shall make, or cause to be made, any press release or
public announcement concerning this Settlement Agreement that: (i) disparages the other party; (ii)
contains any statement concerning the strengths or weaknesses of the parties’ respective claims and
defenses in the Litigation; (iii) claims victory or defeat; and/or (iv) suggests that the existence
or terms of the Settlement Agreement should be construed as an express or implied admission by any
party of any act of liability, fault, or wrongdoing whatsoever or an admission of a violation of
any agreement, law, statute, rule or regulation.  In addition, the parties agree that if they issue
any written press release or other public statement announcing this Settlement Agreement, they will
provide a copy of any such written press release or public announcement to the other side at least
24 hours prior to the release of the announcement.

IN WITNESS WHEREOF, the parties have executed this Settlement Agreement and Mutual Release on
the day and year first above written.

	 	 	 
	ROUNDY’S SUPERMARKETS, INC. f/k/a ROUNDY’S,

INC.

By: /s/ Edward G. Kitz

	 	NASH FINCH COMPANY

By: /s/ Robert B. Dimond
	 

	 	 
	Name: Edward G. Kitz

Title: Group Vice President – Legal, Risk

& Treasury

	 	Name: Robert B. Dimond

Title: Executive VP, CFO & Treasurerexhibit10-1.htm

EXHIBIT 10.01

 

THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR UNDER THE PROVISIONS OF ANY APPLICABLE STATE SECURITIES LAWS, BUT HAVE BEEN ACQUIRED BY THE REGISTERED HOLDER HEREOF FOR PURPOSES OF INVESTMENT AND IN RELIANCE ON STATUTORY EXEMPTIONS
UNDER THE 1933 ACT, AND UNDER ANY APPLICABLE STATE SECURITIES LAWS.  THESE SECURITIES MAY NOT BE SOLD, PLEDGED, TRANSFERRED OR ASSIGNED EXCEPT IN A TRANSACTION WHICH IS EXEMPT UNDER THE PROVISIONS OF THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT.

 

PROMISSORY NOTE

                                                                                                Riverbank,
California

                                                                           Date
of Issuance: September 8, 2009

           FOR VALUE RECEIVED, ECO2 PLASTICS, INC., a Delaware corporation (the
“Promisor”) hereby promises to pay to the order of __________________________, (the “Promisee” or the “Holder”), in lawful money of the United States at the address of the Holder set forth herein, the principal amount of ________________________ dollars and _______ cents ($____________)
(the “Note Amount”), together with Interest, as defined below.  This Promissory Note (“Note”) has been executed by the Promisor on the date set forth above (the “Effective Date”).

1.            Interest.  Interest shall accrue at eight percent (8%) per annum on the outstanding principal
amount of this Note (the “Interest”).  Upon the occurrence of an Event of Default and for so long as such Event of Default continues, Interest shall accrue on the outstanding Note Amount at the rate of eight percent (8%) per annum (the “Default Interest Rate”).

2.            Maturity Date.  The Note Amount, any accrued Interest thereon and all other sums due hereunder,
shall be due and payable October 31, 2009 (the “Maturity Date”).

3. Application of Payments.

3.1.            Except as otherwise expressly provided herein, payments under this Note shall be applied, (i) first to the repayment of any sums incurred by the Holder for the payment
of any expenses in enforcing the terms of this Note, (ii) then to the payment of any accrued but unpaid Interest under this Note, and (iii) then to the reduction of the Note Amount.

3.2.            The Promisor may prepay all or any part of the principal without penalty.

3.3.            Upon payment in full of the Note Amount, any applicable accrued and unpaid Interest thereon, and any other sums due hereunder, this Note shall be marked “Paid
in Full” and returned to the Promisor.

 

4.            Waiver of Notice.  The Promisor hereby waives presentment for payment, demand, notice of nonpayment,
notice of protest and protest of this Note, and all other notices in connection with the delivery, acceptance, performance, default or enforcement of the payment of this Note, and agrees that the liability of the Promisor shall be unconditional without regard to the liability of any other party and shall not be in any manner affected by any indulgence, extension of time, renewal, waiver or modification granted or consented to by the Promisee.

5.            Events of Default.  The occurrence of any of the following events (each an “Event
of Default”) shall constitute an Event of Default of the Promisor:

5.1. the failure of the Promisor to make any payment due hereunder within three (3) days after the due date thereof; and

 

5.2.            (i) the application for the appointment of a receiver or custodian for the Promisor or the property of the Promisor, (ii) the entry of an order for relief or the filing
of a petition by or against the Promisor under the provisions of any bankruptcy or insolvency law, (iii) any assignment for the benefit of creditors by or against the Promisor, or (iv) the Promisor’s insolvency (which term is defined for purposes of this paragraph as the failure or inability of the Promisor to meet its obligations as the same fall due). 

           Upon the occurrence of any Event of Default that is not cured within any applicable cure period, if any, the Holder may elect to take at any time any or all of the following actions: (i) declare this Note to be forthwith due and payable, whereupon the entire unpaid Note Amount,
together with all accrued and unpaid Interest thereon (including the Default Interest Rate), and all other cash obligations hereunder, shall become forthwith due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Promisor, anything contained herein to the contrary notwithstanding, (ii) set-off any amounts owed by the Promisee or any Affiliate of the Promisee (each of which is an intended third party beneficiary hereunder), to the
Promisor whatsoever against any amounts owed by the Promisor to the Promisee hereunder; and (iii) exercise any and all other remedies provided hereunder or available at law or in equity.  For purposes of this Note, “Affiliate” means any other party that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under control with, such party.

If an Event of Default occurs by the Promisor, the Promisor agrees to pay, in addition to the Note Amount, reasonable attorneys' fees and any other reasonable costs incurred by the Holder in connection with its pursuit of its remedies under this Note.

6.           Conversion.

6.1           At any time upon written notice by the Promisee to the Promisor, the principal amount and all Interest due under this Note shall be converted into shares of Series C Convertible Preferred Stock of the Promisor (“Securities”)
at a price per share equal to $0.015 (subject to appropriate adjustment for all stock splits, subdivisions, combinations, recapitalizations and the like).  No fractional shares of Securities will be issued upon such conversion of this Note.  In lieu thereof, the number of Securities to be issued to the Holder shall be rounded to the nearest whole share.  Upon conversion of this Note pursuant to this Section 6, the Holder shall surrender this Note, duly endorsed, at the principal
offices of the Promisor or any transfer agent of the Promisor.  At its expense, the Promisor will, as soon as practicable thereafter, issue and deliver to such Holder, at such principal office, a certificate or certificates for the number of shares to which such Holder is entitled upon such conversion, together with any other securities and property to which the Holder is entitled upon such conversion under the terms of this Note, including a check payable to the Holder for any cash amounts payable
as described herein.  Upon conversion of this Note, the Promisor will be forever released from all of its obligations and liabilities under this Note with regard to that portion of the principal amount and accrued interest being converted including without limitation the obligation to pay such portion of the principal amount and accrued interest.

7.           Miscellaneous.

7.1           Successors and Assigns.  The terms and conditions of this Note shall inure to the benefit of and be binding upon the respective executors, administrators,
heirs, successors and permitted assigns of the parties.  This Note (or a portion hereof) may be assigned by the Holder without the consent of the Promisor.  This Note may not be assigned by the Promisor without the prior written consent of the Promisee.

7.2           Loss or Mutilation of Note.  Upon receipt by the Promisor of evidence reasonably satisfactory to the Promisor of the loss, theft, destruction or mutilation of this Note, together with indemnity
reasonably satisfactory to the Promisor, in the case of loss, theft or destruction, or the surrender and cancellation of this Note, in the case of mutilation, the Promisor shall execute and deliver to the Holder a new promissory note of like tenor and denomination as this Note.

7.3           Notices.  Any notice or other communication required or permitted to be given pursuant to the terms of this Note shall be in writing and shall be deemed effectively given the earlier of, (i) when
received, (ii) when delivered personally, (iii) one business day after being delivered by facsimile (with receipt of appropriate confirmation), or (iv) one (1) business day after being deposited with an overnight courier service, and addressed to the recipient at the addresses set forth below unless another address is provided to the other party in writing:

If to Promisee, to:

_____________________

_____________________

_____________________

Attn:           _____________________

Fax:           _____________________

If to the Promisor, to:

ECO2 Plastics, Inc.

P. O. Box 760

5300 Claus Road

Riverbank, CA  95367

Attn:  Chief Accounting Officer

Fax:           (209) 863-6200 

with a copy to:

                                The Otto Law Group, PLLC

601 Union Street, Suite 4500

Seattle, WA 98101

Attn:           David M. Otto

Fax:           (206) 262-9513

7.4           Governing Law.  This Note shall be governed in all respects by the laws of the State of California as applied to agreements entered into and performed entirely within the State of California by
residents thereof, without regard to any provisions thereof relating to conflicts of laws among different jurisdictions.

7.5           Waiver and Amendment.  No waiver of any term of this Note shall be effective against the Holder unless in writing.  Any term of this Note may be amended, waived or modified only with
the written consent of the Promisor and the Holder.

7.6           Remedies.  No delay or omission by the Holder in exercising any of its rights, remedies, powers or privileges hereunder or at law or in equity and no course of dealing between the Holder and the
undersigned or any other person shall be deemed a waiver by the Holder of any such rights, remedies, powers or privileges, even if such delay or omission is continuous or repeated, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise thereof by the Holder or the exercise of any other right, remedy, power or privilege by the Holder.  The rights and remedies of the Holder described herein shall be cumulative and not restrictive of any
other rights or remedies available under any other instrument, at law or in equity provided that such rights or remedies are not inconsistent with the express provisions hereof.

7.7           Usury Savings Clause.  In the event any interest is paid on this Note which is deemed to be in excess of the then legal maximum rate, then that
portion of the interest payment representing an amount in excess of the then legal maximum rate shall be deemed a payment of principal and applied against the principal of this Note.

 

7.8           Severability.  If any provision hereof is found by a court of competent jurisdiction to be prohibited or unenforceable, it shall be ineffective
only to the extent of such prohibition or unenforceability, and such prohibition or unenforceability shall not invalidate the balance of such provision to the extent it is not prohibited or unenforceable, nor invalidate the other provisions hereof, all of which shall be liberally construed in favor of the Promisee in order to effect the provisions of this Note.

 

7.9           Setoff.  Notwithstanding the absence of an Event of Default, the Promisee shall have the right to set-off any amounts owed by the Promisee or any Affiliate of the Promisee (each of which is an intended
third party beneficiary hereunder) to the Promisor whatsoever against any amounts owed by the Promisor to the Promisee hereunder.

 

 

           IN WITNESS WHEREOF, the Promisor has caused this Note to be signed on the Effective Date.

                      ECO2
PLASTICS, INC.

 

 

                      _______________________

                      Raymond
M. Salomon

                      Chief
Financila Officer

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

State of California

County of __________________________

On ______________________ before me, ___________________________________________

(Date)                                                                (Insert
Name and Title of Officer)

Personally appeared _____________________________________________________________

Name(s) of Signer(s)

______________________________________________________________________________

Who approved me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ities), and by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which
the person(s) acted, executed the instrument.

I certify that under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Place Notary Seal Above

Signature _______________________________________

(Signature of Notary Public)

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