Document:

ecoexh10_2.htm

 Exhibit 10.2

 

 

AMENDMENT #2

TO THE HOME DEPOT

SUPPLIER BUYING AGREEMENT

 

This Amendment #2 ("Amendment") is attached to and made a part of the most recent Supplier Buying Agreement (the "SBA") dated as of 2-10-,2014, between HOME DEPOT U.S.A., INC., a Delaware corporation with offices at 2455 Paces Ferry Road, N.W., Atlanta, Georgia 30339, for itself and its Affiliates (collectively, "Home Depot") and ECO BUILDING PRODUCTS, INC., a Colorado corporation with offices at 909 West Vista Way, Vista, California 92083 ("Supplier").

 

RECITALS

 

WHEREAS, Home Depot and Supplier have entered into the SBA for the sale and purchase of merchandise; and,

 

WHEREAS, pursuant to that certain Amendment #1 to the Home Depot Supplier Buying Agreement dated November 21, 2012, Home Depot and Supplier entered into an arrangement whereby Supplier will exclusively sell to Home Depot, within defined retail channels, certain types of merchandise as described herein; and,

 

WHEREAS, Home Depot and Supplier desire to further supplement the SBA with the additional terms set forth in this Agreement; and,

 

WHEREAS, Home Depot and Supplier wish to clarify and modify certain provisions of the SBA to facilitate operating thereunder;

 

NOW THEREFORE, for and in consideration of the mutual agreements contained in this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

The SBA shall be modified to include the following provisions:

 

1.     Pilot Program. Supplier and Home Depot have agreed to expand the pilot test (the "Pilot") to sell Supplier's products in one hundred four (104) Home Depot retail stores located in the Northeast United States. The agreed-upon stores are set forth on Exhibit A, attached hereto and incorporated herein (the "Pilot Stores"). The objective of the Pilot is to evaluate the sales performance of the products in order to determine whether Home Depot and Supplier should enter into an agreement to expand the Pilot to additional stores.

 

2.     Exclusivity. In consideration of Home Depot's marketing efforts during the term of the Pilot, Home Depot will have the exclusive right, in the United States and its territories and possessions, to sell Supplier's products in all retail channels of distribution ("Channels of Distribution"). This means that for so long as Home Depot issues purchase orders for Supplier's products, Supplier will not sell, distribute, market or rebrand such products, or allow any third party to sell, distribute, market or rebrand such products in or to entities within the Channels of Distribution without prior consent of Home Depot. Both parties agree that exclusivity described herein extends to sales via the internet.

 

 

  

  

  

 

 

3.     Termination. The term of this Amendment will commence on the Effective Date hereof and shall continue until terminated by either party, Notwithstanding the foregoing, Home Depot may terminate this Amendment at any time during the term by the giving of not less than ten (10) days' prior notice to Supplier.

 

All capitalized terms not otherwise defined herein shall have the meanings set forth in the SBA.

 

Except as specifically provided in this Amendment, the SBA is not changed in any way and remains in full force and effect in accordance with its terms and conditions. In the event of any conflict, inconsistency or incongruity between any provisions of this Amendment and the provisions of the SBA (even if signed subsequent to this Amendment), this Amendment shall govern and control in all respects.

 

IN WITNESS WHEREOF, the parties have caused this Amendment to be signed by their duly authorized representatives, as of the day and year first above written.

 

	HOME DEPOT U.S.A. INC. 	 	ECO BUILDING PRODCUTS, INC.	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	
/s/ Martin Gallagher

	 	By:	
/s/ Stephen Conboy

	 
	Print Name: 	
Martin Gallagher

	 	Print Name: 	
Stephen Conboy

	 
	Title:	
VP Merchandising

	 	Title:	
Pres/CEO

	 

 

 

 

 

 

 

 

  

  

  

 

 

EXHIBIT A

 

Pilot Stores

 

 

All stores in the following markets:

 

Market 15 New Jersey 

Market 20 — Long Island 

Market 116 — Metro NYFebruary 4, 2014

 

Mr. Keith R. Marchiando

3996 Lincoln Drive

Bloomfield Hills, MI 48301

 

Dear Keith,

 

I am pleased to offer you the position
of Vice President and Chief Financial Officer of Perceptron, Inc. (the “Company”), in Plymouth, Michigan. In this
role you will report directly to me and shall serve at the pleasure of the Company as an at will employee. You will be expected
to devote your full business time and attention to the performance of your duties to the Company.

 

Information regarding your compensation
and benefits follows:

 

		·	Your
                                         base salary shall be $220,000 per annum, which will be reviewed annually and is subject
                                         to change from time to time at the sole discretion of the Board’s Management Development,
                                         Compensation and Stock Option Committee (the “Compensation Committee”) based
                                         on your performance and contributions.

 

		·	Perceptron
                                         has an Annual Incentive Compensation Plan that rewards Director-level-and-above team
                                         members when Company and individual performance warrants. You are not eligible to participate
                                         in the 2014 Annual Incentive Compensation Plan since your first day of work will begin
                                         after December 31, 2013. However, you will be eligible to participate in future Annual
                                         Incentive Compensation Plans as they are adopted by the Company’s Board of Directors.
                                         Your potential award under future Annual Incentive Compensation Plans will be at 40%
                                         of your annual salary rate. Provisions of the plan change from year-to-year based upon
                                         business forecasts and objectives. Performance targets will be set in consultation with
                                         you within 90 days of the beginning of the fiscal year and it is intended that they will
                                         be set at levels believed by the Board or Compensation Committee to be achievable.

 

		·	You
                                         will be eligible for a monthly car allowance of $600.00, in accordance with the Company
                                         car policy.

 

		·	Stock
                                         Options: You will be granted a non-qualified stock option to purchase 25,000 shares of
                                         the Company’s Common Stock, under the 2004 Stock Incentive Plan, as amended, at
                                         an exercise price equal to the final reported sales price of the Company’s common
                                         stock on the grant date which will be the first trading day of the month following your
                                         first day of work. The option will vest one-fourth annually on the anniversary of the
                                         grant date, if you continue to be employed by the Company as Vice President and Chief
                                         Financial Officer at those dates.

 

Your start date with Perceptron is planned
for February 17, 2014; however, this date may change if all parties agree.

 

Benefits: Perceptron offers excellent benefits. The following
is a summary:

 

 

 

    	 

    	 

    

 

 

 

Mr. Keith R. Marchiando

February 4, 2014

Page 2  of 3

 

You may choose to participate
in a 401(k) investment plan in which the Company from time to time has provided a partial match of your investment. Your eligibility
begins on the first day of the calendar quarter following six months from your date of hire.

 

Executive life insurance in
the amount of $500,000 with the beneficiary of your choice, subject to your insurability, with the Company paying the normal,
non-smoking, healthy individual rates for such policy, up to a maximum of $1,800 per year, and you paying any excess.

 

Group life insurance will be
provided for you in the amount of $50,000. You also have the option of purchasing additional and/or dependent life insurance.

 

Employer-sponsored group health,
dental, and vision care insurance plan is available to you. Insurance costs are shared between Perceptron and the Team Member.
The plan currently allows in-network and out-of-network services and includes office visits for preventive care with no co-payments
or deductibles. Coverage eligibility begins the 1st of the month following 30 days of employment.

 

Short and Long Term Disability
income protection is provided at no cost to you.

 

An Employee Assistance Plan.

 

An Employee Stock Purchase Program.
Your eligibility begins on the first January or July enrolment date following six months of service.

 

An Employee Wellness program.

 

Vacation and paid holidays.
You will be entitled to four weeks of vacation per calendar year, in accordance with the Company’s vacation policy.

 

The employee benefits available to the
Company’s executive officers, and so to you, may be changed from time to time to provide greater or lesser coverage at the
sole discretion of the Board of Directors or the Compensation Committee. However, you will at all times be offered benefits that
are comparable to those offered to other executive officers of the Company.

 

Your employment will be subject to the
terms set forth in a Severance Agreement between the Company and you, the form of which has been provided to you. The terms and
conditions of your employment will be governed by the laws of the State of Michigan.

 

Keith, we are confident that you will
make a significant contribution to Perceptron and will find this position to be both fulfilling and enjoyable.

 

This offer expires on February 11, 2014
and is contingent upon your signing of Perceptron’s standard agreements covering stock options, non-compete, proprietary
information, inventions, business conduct and ethics, the forms of which have been provided to you.

 

 

 

    	 

    	 

    

 

 

 

Mr. Keith R. Marchiando

February 4, 2014

Page 3 of 3

 

Please indicate your acceptance by signing
in the space provided below.

 

Yours truly,

 

/s/ Jeffrey M. Armstrong

 

Jeffrey M. Armstrong

President and Chief Executive Officer

 

 

 

I accept this employment offer. I understand that Perceptron,
Inc. is an at-will employer and that no terms of this offer express or imply that employment is for any specified period of time.
I further understand that Perceptron, Inc., in its sole discretion, reserves the right to make changes to employee compensation,
benefits, practices and/or policies subject to the obligations under the Severance Agreement.

 

	/s/
    Keith R. Marchaindo	 	2/10/2014	 	
	Keith R. Marchiando	 	Date

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