Document:

EXHIBIT 10.1

 

AMENDMENT TO CREDIT  AGREEMENT

[Crop Line]

 

THIS AMENDMENT TO CREDIT AGREEMENT

(the “Amendment”) is made and dated as of the 9th day of September 2002 by and

between BANK OF THE WEST d/b/a UNITED CALIFORNIA BANK (“Bank”) and SCHEID

VINEYARDS CALIFORNIA INC., a California corporation (the “Borrower”) and amends

that certain Credit Agreement (Crop Line of Credit) dated as of August 8, 2000

(as amended, modified or waived from time to time, the “Agreement”) between

Bank and the Borrower.

 

RECITALS

 

A.            The Borrower has asked Bank to

extend the Expiration Date (as such term and all other capitalized terms used

herein and not otherwise defined are defined in the Agreement).

 

B.            Bank has agreed to do so on the

terms and conditions contained in this Amendment.

 

NOW, THEREFORE, in consideration of

the above Recitals and for other good and valuable consideration, the receipt

and adequacy of which are hereby acknowledged, the parties hereby agree that,

upon the satisfaction of the conditions contained in Paragraph 2 below, the

Agreement shall be amended as set forth below:

 

AGREEMENT

 

1.             Extension of Expiration Date. 

The definition of “Expiration Date” is amended to read as follows:

 

“‘Expiration Date’ shall mean July

5, 2004, or the date of termination of the Bank’s commitment to lend under this

Agreement pursuant to Section 8, whichever shall occur first.”

 

2.             Conditions to Effectiveness of

Amendment.  This Amendment

shall not be effective until the date (the “Effective Date”) upon which all of

the following conditions precedent have been satisfied:

 

(i)            the

Borrower and Bank shall have duly executed and delivered this Amendment and

such other documents as Bank may require with respect to the transactions

described in this Amendment;

 

(ii)           Bank

shall have received such board resolutions, incumbency certificates, opinions

of Borrower’s counsel and such other additional documentation in form and

substance satisfactory to Bank as it may request in connection herewith;

 

(iii)          Bank shall have received consent of any participant in the

indebtedness evidenced by the Agreement to this Amendment; and

 

(iv)          all

representations and warranties hereunder and under the Agreement shall be true

and correct and no Event of Default or event, which with the passage of time,

giving of notice or both, would constitute an Event of Default, shall have

occurred.

 

 

3.             Representations and Warranties of

the Borrower.  As an inducement

to Bank to enter into this Amendment, the Borrower represents and warrants to

Bank that:

 

3(a)         No

Change.  Since the date of the

financial statements most recently delivered to Bank pursuant to the Agreement,

there has been no material adverse change in the business, operations, assets

or financial or other condition of the Borrower.  Since such date, the Borrower has not entered into, incurred or

assumed any long-term debt, mortgages, material leases or material oral or

written commitments not disclosed to Bank prior to the date of this Amendment.

 

3(b)         Corporate

Existence; Compliance with Law.  The

Borrower (1) is duly organized, validly existing and in good standing as a

corporation under the laws of the state of its incorporation and is qualified

to do business in each jurisdiction where its ownership of property or conduct

of business requires such qualification and where failure to qualify would have

a material adverse effect on it or its property and/or business or on the

ability of the Borrower to pay or perform the Obligations, (2) has the

corporate power and authority and the legal right to own and operate its

property and to conduct business in the manner in which it does and proposes so

to do, and (3) is in compliance in all material respects with applicable laws

and contractual obligations.

 

3(c)         Corporate

Power; Authorization; Enforceable Obligations.  The Borrower has the corporate power and authority and the legal

right to execute, deliver and perform this Amendment, as amended hereby, to

which it is a party and has taken all necessary corporate action to authorize

the execution, delivery and performance of this Amendment and the

Agreement.  This Amendment has been duly

executed and delivered on behalf of the Borrower and constitutes legal, valid

and binding obligations of the Borrower enforceable against the Borrower in

accordance with its terms, subject to the effect of applicable bankruptcy and

other similar laws affecting the rights of creditors generally and the effect

of equitable principles whether applied in an action at law or a suit in

equity.

 

3(d)         No

Legal Bar.  The execution, delivery

and performance of this Amendment will not violate any applicable law or any

contractual obligations of the Borrower or create or result in the creation of

any Lien on any assets of the Borrower.

 

4.             Miscellaneous Provisions.

 

4(a)         Entire

Agreement.  This Amendment and the

documents and agreements referred to herein embody the entire agreement and

understanding between the parties hereto and supersede all prior agreements and

understandings relating to the subject matter hereof and thereof.

 

4(b)         Survival.  All representations, warranties, covenants

and agreements herein contained on the part of the Borrower shall survive the

termination of this Amendment and the Agreement and shall be effective until

the Obligations are paid and performed in full or longer as expressly provided

herein.

 

4(c)         Governing

Law.  This Amendment shall be

governed by and construed in accordance with the laws of the State of

California, without giving effect to choice of law rules.

 

4(d)         Counterparts.  This Amendment may be executed in any number

of counterparts, all of which together shall constitute one agreement.

 

2

 

4(e)         Expenses.  The Borrower agrees to pay to Bank on

demand, all reasonable out-of-pocket expenses (including fees and disbursements

of counsel, including reasonable allocated cost of inside counsel) of Bank

incident to the preparation, negotiation, and closing of this Amendment and the

syndication and participation of the Agreement, as modified hereby.

 

5.             Reaffirmation of Loan Documents. 

The Borrower affirms and agrees that the execution and delivery by the

Borrower of and the performance of its obligations under this Amendment shall

not in any way amend, impair, invalidate or otherwise affect any of the

Obligations of the Borrower or the rights of the Bank under the Agreement or

any other document or instrument made or given by the Borrower in connection

therewith, and specifically reaffirms and remakes all the covenants,

representations, warranties and reaffirms the security interests granted

thereunder.  Without limiting the

generality of the foregoing, the Borrower specifically agrees and affirms that

the liens and security interests granted to Bank under the Agreement secure all

of the Borrower’s Obligations under the Agreement and all other liabilities,

guarantees, covenants and duties owed by the Borrower to the Bank whether or

not evidenced by the Agreement or any other agreement, absolute or contingent,

due or to become due, now existing or hereafter and howsoever created.

 

IN WITNESS WHEREOF, the parties

hereto have caused this Amendment to be executed as of the day and year first

above written.

 

	

   

  	

  SCHEID VINEYARDS CALIFORNIA INC.,

  
	

   

  	

  a California corporation, as the Borrower

  
	

   

  	

   

  
	

   

  	

  By  

  	

  /s/ Heidi M. Scheid,

  	

   

  
	

   

  	

   

  	

  Heidi M. Scheid, Senior Vice President

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  BANK OF THE WEST d/b/a UNITED

  
	

   

  	

  CALIFORNIA BANK, as Bank

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Keith L. Krum

  	

   

  
	

   

  	

  Title:  Senior Vice

  President

  

 

3Exhibit

10.2

 

SEPARATION AGREEMENT AND RELEASE

 

AGREEMENT made as of September 13, 2002, by

and between enherent Corp. (the “Company”) and Dan S. Woodward (“the

Employee”).

 

WHEREAS, the parties wish to amicably

resolve the terms of the Employee’s separation from the Company and establish

the terms of the Employee’s severance arrangement;

 

NOW,

THEREFORE, in consideration of the promises and conditions

set forth herein, the sufficiency of which is hereby acknowledged, the Company

and the Employee agree as follows:

 

1.                                       Resignation.    Employee

hereby resigns (i) his employment and each office he holds with Employer

(including without limitation his offices as Chief Executive Officer and

Chairman of the Board of Directors) and any positions held by Employee in

subsidiaries and affiliates of Employer and (ii) as a director of each of

Employer’s subsidiaries (Employee shall continue to serve as a director of

Employer) effective as of  the close of

business on September 13, 2002 (the “Effective Date”).

 

2.                                       Termination

Date.    The Employee’s effective date of termination

from the Company shall be September 13, 2002 (“Effective Date”).

 

3.                                       Consideration.

 

Monetary Consideration.  In

return for the execution of this Separation Agreement and Release, the Company

agrees to pay the Employee 12 month’s salary equal to $318,000 less all

applicable state and federal taxes as severance pay (“Severance Pay”). The

Severance Pay will be paid to you in cash and discounted 4% for present value

and paid out as follows: You will be paid $256,000 on September 10, 2002, less

all applicable state and federal taxes. 

You will then receive two payments of $25,000 each on August 1, 2003 and

September 1, 2003, less all applicable state and federal taxes.

 

Other Consideration:  Employee

shall have 90 days following September 13, 2002, to exercise any incentive

stock options (ISO”S) that were vested as of September

 

 

13, 2002. All other stock options (Non-Qualified Stock Options) that

were vested as of September 13, 2002 shall continue to be exercisable in

accordance with the original vesting schedule. 

Any stock options that have not vested as of September 13, 2002 shall

expire.

 

Employee shall

receive the cash equivalent of Employee’s current Welfare Benefits (e.g.,

medical, dental and vision insurance) for the remainder of the employment term

pursuant to Employee’s Employment Agreement of $10,975.92 on September 10,

2002.

 

Current medical dental and vision insurance benefits and 401(k) plan

contributions will terminate on September 13, 2002.  Employee shall be eligible to maintain medical, dental and vision

insurance benefits coverage and flexible spending accounts through Cobra.  Short and long term disability end as of the

date of termination.  Life Insurance

policies can be converted, call 1-800-548-5157 for more information.

 

4.                                       Release.     The

Employee hereby fully, forever, irrevocably and unconditionally releases,

remises and discharges the Company, its officers, directors, stockholders,

corporate affiliates, attorneys, agents and employees from any and all claims,

charges, complaints, demands, actions, causes of action, suits, rights, debts,

sums of money, costs, accounts, reckonings, covenants, contracts, agreements,

promises, doings, omissions, damages, executions, obligations, liabilities, and

expenses (including attorneys’ fees and costs), of every kind and nature which

he ever had or now has against the Company, its  officers, directors, stockholders, corporate affiliates, agents

and employees, including,  but not

limited to, all claims arising out of his employment, any claims of violation

of Title VII of the Civil Rights Act of 1964, the Employee Retirement Income

Security Act of 1974, the Fair Credit Reporting Act, or the Americans with

Disabilities Act, any state antidiscrimination statute or any and all claims

for breach of contract or wrongful discharge; any and all claims for

defamation, damage to personal or business reputation, or impairment of

economic opportunity; any and all claims for intentional or negligent infliction

of emotional distress; any and all claims for loss of consortium, damage to

family or business relationships, and any alleged breach of the covenant of

good faith and fair dealing; any and all claims for an alleged breach of

fiduciary duties or breach of corporate officer or director responsibilities;

any and all claims for personal injury; any and all claims for tortious

interference with contractual relationships or any other tortious conduct; any

and all claims for reimbursement, bonus, 

 

2

 

commission or other incentives; any and all claims for employment

discrimination including, but not limited to, any age discrimination claims

brought under the Age Discrimination in Employment Act; any and all claims for

injunctive or other equitable relief; any and all claims arising under federal,

state or local statute, common law, regulation or ordinance; and any and all

other clauses for compensatory, statutory, or punitive damages.

 

5.                                       Return

of Company property.  Employee acknowledges that, in addition to

signing this Agreement, he agrees to return to Employer any and all of

Employer’s property entrusted to him, such as (but not limited to) marketing

plans and related information, trade secret information, pricing information,

customer information, vendor information, financial information, telephone

lists, computer software and hardware, keys, credit cards, vehicle, telephone,

computer, and office equipment and that he will not retain copies of any

Confidential Information.  Employee will

be allowed to retain IBM 240 Laptop Computer serial number BA 40704.

 

6.                                       Covenant

Not To Sue.  The Employee further represents and warrants that he

has not filed any complaints, charges, or claims for relief against the Company,

its officers, directors, stockholders, corporate affiliates, attorneys, agents

or employees with any local, state or federal court or administrative agency

which currently are outstanding.  The

Company acknowledges that Employee is entitled to submit bona fide, valid and

proper claims for unemployment insurance and agrees not to object to such

unemployment insurance claims unless it has reasonable grounds to believe such

claim is improper or fraudulent.   If he

has done so, he will forthwith dismiss all such complaints, charges, or claims

for relief with prejudice.  The Employee

further agrees and covenants not to bring any complaints, charges or claims

against the Company, its officers, directors, stockholders, corporate

affiliates, attorneys, agents or employees with respect to any matters arising

out of his employment with or termination by the Company, excepting those

obligations arising under this Agreement.

 

7.                                       Nature

of Agreement.  The Employee understands and agrees that this

Agreement is a severance and settlement agreement and does not constitute an

admission of liability or wrongdoing on the part of the Company.

 

3

 

8.                                       Amendment.  This

Agreement shall be binding upon the parties and may not be abandoned,

supplemented, changed or modified in any manner, orally or otherwise, except by

an instrument in writing of concurrent or subsequent date signed by a duly

authorized representative of the parties hereto.  This Agreement is binding upon and shall inure to the benefit of

the parties and their respective agents, assigns, heirs, executors, successors

and administrators.

 

9.                                       Validity.  Should

any provision of this Agreement be declared or be determined by any court of

competent jurisdiction to be illegal or invalid, the validity of the remaining

parts, terms, or provisions shall not be affected thereby and said illegal and

invalid part, term or provision shall be deemed not to be a part of this

Agreement.

 

10.                                 Confidentiality;

Non-disparagement.  The parties understand and agree that the

terms and contents of this Agreement, and the contents of the negotiations and

discussions resulting in this Agreement, shall be maintained as confidential by

the both parties, their agents and representatives, and the dispute resolved by

this Agreement shall also remain confidential. 

None of the above shall be disclosed except to the extent required by

federal or state law or regulations or compulsory process of law, including,

but not limited to, as required in the Company’s public filings with the

Securities and Exchange Commission, and in its financial statements, or as

otherwise agreed to in writing by the authorized agent of each party.  Notwithstanding the above the Company may

disclose the terms of this Agreement to its auditors, attorneys, or if required

by Court order.  

The Employee shall not disparage, orally or in

writing, the Company, the Company’s performance, or the Company’s officers,

directors or employees. The Company shall not disparage, orally or in writing,

the Employee or his performance.

 

11.                                 Non-Compete.  As

a further material inducement to Employer to pay Employee the sum specified in

paragraph 3, Employee, for a two (2) years after the Effective Date, shall not

directly or indirectly, either as a principal, agent, employee, employer,

stockholder, partner or in any other capacity whatsoever (i) engage in whole or

in part, in any business in competition with the business of Employer or any of

its subsidiaries or (ii) become associated with, employed by, enter into a

business relationship with, or 

 

4

 

become a stockholder or other equity holder of, any client of Employer

who was a client of Employer for at least twelve (12) months prior to

Employee’s separation; provided that the restriction contained in subclause

(ii) of this Section 6A shall not apply to Employee’s ownership of or the

acquisition by Employee, solely as an investment, of securities of any issuer

that are registered under Section 12(b) or 12(g) of the Exchange Act and that

are listed or admitted for trading on any United States national securities

exchange or that are quoted on the NASDAQ Stock Market, or any similar system

or automated dissemination of quotations of securities prices in common use, so

long as Employee does not control, acquire a controlling interest in or become

a member of a group which exercises direct or indirect control of more than

fifty percent (50%) of any class of capital stock of such corporation.

 

12.                                 Non-Solicitation of employees.  It is

recognized and understood by the Parties hereto that the employees of Employer

are an integral part of Employer’s business, and that it is extremely important

for Employer to use its maximum efforts to prevent the loss of such employees.  It is therefore understood and agreed by the

Parties that, because of the nature of the business of Employer, it is

necessary to afford fair protection to Employer from the loss of any such

employees.  Consequently, as material

inducement to Employer to pay Employee the sum specified in paragraph 3,

Employee covenants and agrees that for a period commencing on the Effective

Date of this Agreement and ending one year after the Effective Date of this

Agreement, Employee shall not, directly or indirectly, hire or engage or

attempt to hire or engage any individual who shall have been an employee of

Employer or any of its affiliates or subsidiaries at any time during the

one-year period prior to such Effective Date of this Agreement or during the

one-year period immediately following the Effective Date, whether for or on

behalf of Employee or for any entity in which Employee shall have a direct or

indirect interest (or any subsidiary or affiliate of any such entity), whether

as a proprietor, partner, co-venturer, financier, investor, stockholder,

director, officer, employer, employee, servant, agent, representative or

otherwise.  Further, Employee covenants

and agrees that for a period commencing on the Effective Date of this Agreement

and ending one year after such Effective Date, Employee shall not, directly or

 

5

 

indirectly, or through

any other person, firm, or corporation, or in any capacity as described in this

paragraph above, induce, or attempt to induce or influence any employee of

Employer to terminate employment with Employer, when Employer or any of

Employer’s affiliates or subsidiaries desires to retain that employee’s

services.

 

13.                                 Entire

Agreement.  This Agreement contains and constitutes the entire

understanding and agreement between the parties hereto with respect to the

severance and settlement and cancels all previous oral and written

negotiations, agreements, commitments, and writings in connection therewith.

 

14.                                 Applicable

Law.  This Agreement shall be governed by the laws of the State

of Texas.

 

15.                                 ACKNOWLEDGMENTS.   THE EMPLOYEE ACKNOWLEDGES THAT HE HAS BEEN

GIVEN TWENTY-ONE (21) DAYS TO CONSIDER THIS AGREEMENT AND THAT THE COMPANY

ADVISED HIM TO CONSULT WITH AN ATTORNEY OF HIS OWN CHOOSING PRIOR TO SIGNING

THIS AGREEMENT.  THE EMPLOYEE MAY REVOKE

THIS AGREEMENT FOR A PERIOD OF SEVEN (7) DAYS AFTER THE EXECUTION OF THIS

AGREEMENT, AND THE AGREEMENT SHALL NOT BE EFFECTIVE OR ENFORCEABLE UNTIL THE

EXPIRATION OF THIS SEVEN (7) DAY REVOCATION PERIOD. IN THE EVENT THE EMPLOYEE

REVOKES ACCEPTANCE OF THIS AGREEMENT, EMPLOYEE UNDERSTANDS THAT HE WILL BE

OBLIGATED TO REFUND ANY SEVERANCE PAYMENTS RECEIVED OR REIMBURSE THE COMPANY

FOR THE VALUE OF ANY OTHER CONSIDERATION RECEIVED HEREUNDER.

 

16.                                 Time

to Review.  Employee understands that this Agreement includes a

release of claims arising under the Age Discrimination in Employment Act.  Employee understands and warrants that he

has been offered a period of twenty-one days to review and consider this

Agreement.

 

17.                                 Voluntary

Assent.  The Employee affirms that no other promises or

agreements of any kind have been made to or with him by any person or entity

whatsoever to cause him to sign this Agreement, and that he fully understands

the meaning and intent of this Agreement. 

The Employee states and represents that he has had an opportunity to

fully discuss and review the terms of this 

 

6

 

Agreement with an attorney.  The Employee further states and

represents that he has carefully read this Agreement, understands the contents

herein, freely and voluntarily assents to all of the terms and conditions

hereof, and signs his name of his own free act.

 

18.                                 Counterparts.  This

Agreement may be executed in two (2) signature counterparts, each of which

shall constitute an original, but all of which taken together shall constitute

but one in the same instrument.

 

IN WITNESS WHEREOF, all parties have set

their hand and seal to this Agreement as of the date written above.

 

 

	

  enherent Corp:

  	

   

  	

  Employee:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  By: George Warman

  	

   

  	

  By: Dan S. Woodward

  
	

  Title:   CFO

  	

   

  	

   

  
	

  Date:

  	

   

  	

  Date: 

  

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]