Document:

EX-10(A)(XXXVI)

 

Exhibit 10(a)(xxxvi)

			
	 	 	 
	April 28, 2006
	 	CONFIDENTIAL

	 	 	 
	TO:

	 	Joe Jimenez
	 
	 	 
	FROM:

	 	Steve Clark
	 
	 	 
	SUBJECT:

	 	SEPARATION PACKAGE

This letter confirms that your employment with the Company will end effective April 28, 2006, (your
“last day worked”). We hope that the separation package option described in this letter will
provide you with the flexibility and support that you need during your career transition.

The Company is providing you with the Enhanced Separation Package more fully described below. You
will not be entitled to receive the Enhanced Separation Package if you fail to sign and return the
attached General Release before the deadline or if you subsequently revoke the General Release as
described below.

In order to elect to receive the Enhanced Separation Package, you will have a period of 21 days
from the initial April 19 issuance date of this Separation Package, or until the close of business
on May 10, 2006 to sign the attached General Release and return it to me. An envelope is enclosed
for your use. After you return your signed General Release, you will have 7 additional calendar
days in which you may revoke your election by delivering a written revocation letter to me. The
offer of the Enhanced Separation Package will terminate on May 9, 2006. You will therefore not be
entitled to receive the Enhanced Separation Package if you fail to sign and return the attached
General Release before the deadline or if you subsequently revoke the General Release as described
above.

I am available to review all of the elements of this separation package with you individually and
explain any part of it that may not be clear to you. I encourage you to ask any questions you may
have.

ENHANCED SEPARATION PACKAGE

SEPARATION ALLOWANCE (Lump Sum):

You will receive a lump sum separation allowance equal to $1,100,000, less deductions required by
law, following the receipt of your signed release and expiration of the revocation period. Since
you are a “key employee” as defined in the IRC Section 409A, your separation allowance will be paid
as follows: $947,795, less deductions, will be paid in your final paycheck, and $152,205 (amount
due to you under the existing severance pay plan), will be paid six months after your last day
worked. This separation allowance will not be eligible for Savings Plan contributions or the
Company Match and will be in lieu of any severance benefits available under any other Company
program.

SEPARATION ALLOWANCE (Monthly Payments):

In addition, you will receive monthly payments of $55,000, less deductions required by law,
following the receipt of your signed release. These monthly payments will begin in November 2006
and end in April 2008, subject to your re-employment as stated below (and the section below
entitled “IRC Section 409A”). Should you become employed between now and April

 

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2008, you will be required to promptly notify the Company and the Company’s payments and
obligations to make future payments shall automatically terminate. “Employed” shall mean
substantially full-time employment other than (a) self-employment as a consultant until such time
as you have either earned $200,000 in the aggregate as a consultant or have earned more than
$20,000 per month as a consultant for three consecutive months, or (b) start-up activities for a
business in which you will have an interest prior to the date it has any revenues. This additional
separation allowance will not be eligible for Savings Plan contributions or the Company Match.

COMPREHENSIVE HEALTH BENEFITS:

After the month of your termination, the Company will provide health coverage through COBRA or an
alternative arrangement to the extent COBRA is not available for you and your eligible dependents
for a period of 24 months, or through April 30, 2008 (on the same coverage and tax basis as for
active senior executives). Should you become covered by another employer-sponsored medical,
dental, or vision plan at any time during the period of coverage provided by the Company, you will
be required to promptly notify the Company of such coverage and the Company’s providing of such
coverage shall automatically terminate.

STOCK OPTIONS:

All stock options granted to you by the Company will continue to vest according to the vesting
schedule for an involuntary termination without cause in accordance with the terms of your option
agreement. The options will continue to be subject to all of the other terms and conditions of the
stock option award agreements between you and the Company and the terms of the plan under which the
options were granted. In no event shall any stock options granted to you be exercisable after the
expiration of the original term of each grant. A list of your stock options and the date of
expiration or termination of each grant will be provided to you upon request.

COUNTRY CLUB:

You will receive $20,000, less deductions required by law, within thirty days following the receipt
of your signed release, for your use as payment toward your 2006 country club dues. The Company
shall have no other obligation relating to your country club dues, costs or fees.

FINANCIAL PLANNING, TAX ASSISTANCE & LEGAL FEES:

You will receive $50,000, less deductions required by law, within thirty days following the receipt
of your signed release, for your use as payment toward these expenses. This is in addition to the
Company’s obligations under the expatriate program to prepare and file your tax returns and cover
certain tax payments, which obligations continue after ceasing of your employment per the program
(and shall be appropriately adjusted, to the extent (if any) necessary to comply with IRC 409A at
the same time as such program is adjusted for other executives of the Company). You shall also
continue to have your rights under the 2003 letter with regard to payment of certain foreign taxes
(which shall be deemed modified to provide that payment shall be made in the same tax year as
demanded by the applicable taxing authority and which shall be appropriately adjusted, to the
extent (if any) necessary to comply with IRC 409A (e.g., specifying the amounts, timing and/or
maximum amounts of such payments). The Company shall have no other obligation relating to your
financial planning, tax assistance and legal fees.

VACATION:

You will receive a cash payment for your unused and accrued 2006 vacation days plus bank days
promptly after your termination.

 

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STATUS OF OTHER PAY AND BENEFITS

The following briefly summarizes the status of your other Company-provided benefits upon
termination of employment, which you will receive regardless of whether you sign the General
Release:

RETIREMENT AND SAVINGS PLAN:

All contributions cease on your termination date, and you will become 100% vested in the Company
Match Account and Company Contribution Account regardless of your years of service. Your Retirement
and Savings Plan Account can be distributed when you leave the Company or, if you have at least
$1,000 in your account, you may defer payment up to age 701/2, provided that with regard to any plan
not qualified under Section 401 of the Internal Revenue Code such amounts shall be paid in
accordance with your existing election and the plan terms, but not before six months after your
termination of employment.

Contact the Heinz Benefit Center (1-800-571-5710) for assistance regarding distribution or rollover
of these accounts.

SHORT and LONG-TERM DISABILITY COVERAGE:

This coverage terminates on your last day worked.

LIFE INSURANCE:

Executive life insurance will continue through December 31, 2006. You will receive $14,000
within thirty days after receipt of your signed release for your use toward payment of this or
similar coverage through April 2008. American Benefits Consulting LLC, the Premier Life Plan
administrator, will send you a termination package outlining your options for maintaining your
coverage. For more information call ABC Systems at 1-800-331-8340.

PERSONAL EXCESS LIABILITY COVERAGE:

Personal excess liability insurance will continue through December 31, 2006. You will receive
$6000 within thirty days after receipt of your signed release for your use toward payment of this
or similar coverage through April 2008.

FY06 INCENTIVE PLAN:

Your award will be calculated based on actual goal results for fiscal year 2006. The award will be
based on your full year of service and the actual goal results for your incentive plan. If an
award is earned, the payment is generally made within 60 days of the fiscal year-end and will in
any event be made by March 15, 2007 to the extent required to comply with Code Section 409A.

RSUs:

Restricted Stock Units (“RSUs”) granted to you under your Restricted Stock Unit Award and
Agreements (the “RSU Agreements”) that remain unvested as of your termination date shall continue
to vest and be distributed in accordance with the vesting schedule for an involuntary termination
without cause described in Paragraphs 3(a) and 3(b) of the RSU Agreements, and dividends paid,
subject to and in accordance with the terms and conditions of the RSU Agreement and the plan under
which the RSUs were granted, provided that, to the extent required to comply with Code Section
409A, any RSUs or dividends which otherwise would be distributed prior to six months after your
termination shall be distributed six months after your termination. A list of your RSUs with
vesting dates will be provided to you upon reqest. To the extent the Company elects to accelerate
the distribution of RSUs in the event of involuntary

 

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termination without cause, the distribution of your RSUs shall be modified to the same extent as
other former employees (all to the extent permitted by IRC 409A).

DEFERRED COMPENSATION:

Your plan will remain unchanged, and the commencement date of your payments will be the date six
months after your date of separation.

GLOBAL STOCK PURCHASE PLAN:

If you are a member of this plan, you will receive a refund of any GSPP funds withheld in the
current offering period. If you bought stock during a previous offering period, you should deal
directly with Fidelity Investments (1-800-544-9354) when you want to sell or transfer your shares.

OUTPLACEMENT:

Outplacement services will be made available to you through April 2007. You can call Ned Sherry at
the Callos Companies at (412) 281-8235 to start this process.

IRC 409A:

It is the intent of the parties to comply in all respects with IRC 409A and this memorandum and the
implementation thereof shall be deemed modified as necessary to assure such compliance, including
but not limited to, if necessary for such compliance, paying all post-March 15, 2007 monthly
payments on March 10, 2007 (with a repayment obligation of you if any amounts would not have been
thereafter paid by the terms of this agreement because of your employment and escrowing the after
tax amount of such March 10, 2007 payment to assure repayment) and vesting and distributing on
March 10, 2007 all RSUs that would vest and be distributed thereafter.

NEXT STEPS

Our goal is to make this transition as smooth as possible. If you choose to receive the Enhanced
Separation Package, please make sure to sign the General Release and return to me by the deadline.
By law, you are advised to consult with an attorney, if you wish.

Enclosures:    General ReleaseEX-10(A)(XXXVII)

 

Exhibit 10(a)(xxxvii)

GENERAL RELEASE

          I, Joseph Jimenez, Jr., hereby acknowledge that my employment with the Company (which is
defined to include H.J. Heinz Company, Heinz Management L.L.C., H.J. Heinz Company Ltd. and each of
their related companies, subsidiaries and affiliates) will end effective on the date as provided in
the Memorandum, dated April 28, 2006, from Steve Clark of the Company to me (hereinafter, the
“Memorandum”).

          I further acknowledge that I have studied and understand the Memorandum which, together with
its attachments, describes the Enhanced Severance Package that has been offered to me in exchange
for my execution of this General Release. After giving it due consideration, and without any undue
influence, pressure, or coercion, I elect to accept the Enhanced Severance Package. I acknowledge
that the Enhanced Severance Package is in addition to those benefits to which I am otherwise
entitled under Company policies and practices, and that it would not be available to me without the
benefit of this General Release.

          Therefore, in exchange for the Enhanced Severance Package which is to be paid by the Company
to me, I have signed this General Release and agree to irrevocably and unconditionally release any
and all claims that I may have against the Releasees, as described below.

Waiver Of Claims

          The Releasees are the Company (Heinz Management L.L.C., H.J. Heinz Company, H.J. Heinz
Company, Ltd. and each of their related companies, subsidiaries, divisions and affiliates, and,
with respect to each such entity, all of its past and present employees, officers, directors,
agents, invitees, attorneys, insurers, employee benefit plans, funds, programs, or arrangements
providing pension, welfare, and fringe benefits and their respective administrators, and their
successors and/or assigns, jointly and individually, all in such capacities. I, on behalf of
myself, my heirs, executors, administrators, successors, and assigns, and intending to be legally
bound, do hereby expressly and unconditionally release and forever discharge the Releasees of and
from any and all claims, rights, demands, costs, actions, causes of action, obligations, damages,
and liabilities (hereinafter “Claims”), whether known or unknown, of whatever kind or nature, that
arose on or before the date I signed this General Release, including, but not limited to, all
Claims arising out of or in any way related to my employment with the Company or any Released
entity, the terms and conditions of my employment with the Company or any Released entity, the
termination of my employment with the Company or any Released entity, and the continuing effects
thereof. I intend that this General Release include, but not be limited to, the discharge and
release by me of the following Claims against any Releasee:

 

 

          (i) all Claims under any legal, equitable, statutory, contractual, common law, or tort theory,
such as Claims for wrongful or constructive discharge, physical or personal injury, infliction of
emotional distress, fraud, fraud in the inducement, negligent misrepresentation, defamation,
invasion of privacy, interference with contract or with prospective economic advantage, breach of
express or implied contract, breach of covenants of good faith and fair dealing, and similar or
related Claims;

          (ii) all Claims under any federal, U.K., English, European Union, state, or local law,
statute, ordinance, regulation, or executive order that prohibits employment discrimination,
harassment, or retaliation based on religion, national origin, ancestry, marital status, sex,
sexual orientation, age, race, color, handicap, disability, retaliation, or any other
characteristic proscribed by law or activity protected by law, including but not limited to the Age
Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; Executive Order
11141; Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991, 42 U.S.C. §1981;
the Equal Pay Act; the Americans with Disabilities Act; Sections 503 and 504 of the Rehabilitation
Act of 1973; the Pennsylvania Human Relations Act; the Pittsburgh City Code; Sex Discrimination or
Victimization under the Sex Discrimination Act of 1975; and any other federal, state, or local law,
and any amendments thereto, that prohibits employment discrimination, harassment or retaliation of
any kind;

          (iii) all Claims under federal employment statutes, such as the Family and Medical Leave Act
of 1993, the Employee Retirement Income Security Act of 1974, the Fair Labor Standards Act of 1938,
and any other federal laws relating to employment, such as veterans’ reemployment rights laws;

          (iv) all Claims under any other federal, U.K., English, European Union, state or local laws
that restrict an employer’s right to terminate employees or otherwise regulate employment,
including but not limited to the Pennsylvania Wage Payment and Collection Law;

          (v) any Claims for or relating to the payment of back or front pay; the recovery of
compensatory, liquidated or punitive damages; the receipt of or entitlement to medical benefits,
compensation, stock options, deferred compensation, bonuses, lost wages, unused accrued vacation,
sick pay, or short-term or long-term disability benefits; the payment of severance under any
Company plan or similar benefits or for post-employment health or group insurance benefits; the
recovery of the fees, costs, or expenses of any attorneys who are or who have represented me in
connection with this General Release; and any other matters that have or which could have been
asserted by me or on my behalf against any Releasee;

          (vi) any claims arising under U.K., English or European Union law, regulations or
requirements, including the following: unlawful deductions from wages under the Employment Rights
Act 1996; unfair dismissal under the Employment Rights Act 1996; sex discrimination or
victimization

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under the Sex Discrimination Act 1975; a claim under or relying on the Equal Pay Act
1970 or Article 141 of the Treaty of Rome; a claim for detriment suffered under part V of the
Employment Rights Act 1996; a breach of the Working Time Regulations 1998 and damages under the
Data Protection Act 1998.

          This Agreement is intended to be binding and satisfy the conditions regulating Compromise
Agreement and Compromise Contracts under the Equal Pay Act 1970, the Employment Rights Act 1996,
the Sex Discrimination Act 1975, the Working Time Regulations 1998 and the Public Interests
Disclosure Act 1998.

          I understand that I am releasing Claims that I may not know about. That is my knowing and
voluntary intent, even though I recognize that someday I might learn that some or all of the facts
I currently believe to be true are untrue and even though I might then regret having signed this
General Release. Nevertheless, I am assuming that risk and agree that this General Release shall
remain effective in all respects in any such case. I expressly waive all rights that I might have
under any law that is intended to protect me from waiving unknown claims and I understand the
significance of doing so.

          I understand that this General Release shall not include any Claims that I might have relating
to or arising out of the enforcement of this General Release or the Memorandum or to any Claim for
any benefits vested under any Heinz-sponsored employee benefit plan, any Claim for unemployment
compensation benefits, any Claim which may arise or accrue after I sign this General Release, or
any Claim that is not subject to waiver as a matter of law or any rights to indemnification or
directors and officers liability insurance.

Covenant Not To Sue/No Further Employment

          I represent that I have not filed or caused to be filed, and I agree that I will not file or
cause to be filed, any lawsuit of any kind arising out of or relating to my employment with the
Company, the terms and conditions of that employment, or the termination of that employment. I
understand, though, that this General Release does not prohibit me from filing an administrative
charge of alleged employment discrimination, harassment, or retaliation under Title VII of the
Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Americans with
Disabilities Act of 1990, or the Equal Pay Act of 1963. However, I represent that I have not to
date filed or caused to be filed any such administrative charge and, further, I agree that I hereby
waiver any right to monetary or other recovery should any federal, state, or local administrative
agency or any English, U.K. or European Union agency or court pursue any claim on my behalf arising
out of or relating to my employment with the Company,
the terms and conditions of that employment, or the termination of that employment. This
means that by signing this General Release, I have waived any right I had to obtain a recovery if
an administrative agency pursues a claim against the Company or any of the Releasees based on any
action taken by the

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Company or any of the Releasees up to the date of my signing of this General
Release and that I will have released the Company and the Releasees of any and all claims of any
nature arising up to the date of my signing of this General Release.

Confidentiality/Non-Disparagement

          I acknowledge that during my employment with the Company I learned, conceived, discovered, or
invented ideas, inventions, improvements, trade secrets, discoveries, formulas, recipes, standards,
processes, and packaging relating to products that the Company or any of its Affiliates produced,
manufactured, sold, marketed, distributed, delivered, or had developed or has in development by or
for it (“Product Information”). I also acknowledge that during my employment I learned certain
information regarding the business, organization, sales, marketing, and distribution techniques and
plans, financial data, and other information regarding the affairs of the Company and its
Affiliates (“Company Information”). All Product Information, whether of a patentable nature or
not, and all Company Information constitutes the sole and absolute property of the Company. The
Company is and shall be the sole and absolute owner of all patent and other rights in connection
with such Product Information and Company Information. I always shall keep all Product Information
and Company Information secret from everyone and shall not use it for my purposes or disclose such
matters to anyone except to Company personnel and to others as the Company authorizes. I shall not
divulge, furnish, or make accessible any other confidential information I acquire as a result of or
in connection with the access to and use of the Product Information and Company Information or
anything relating to the same to any competitor or other person, firm, or corporation except when
the Company authorizes me in writing to do so.

          I agree that I shall not, now or any time in the future, make any disparaging statements about
the other or any Releasee to any past, present or future customers, employees, clients,
contractors, or vendors of the Company, or any Releasee or to any news or communications media or
to any other person, orally or in writing or by any other medium of communication (including but
not limited to Internet communications such as e-mails, message boards, “chat rooms” and web
postings). As used herein, the term “disparaging statement” means any communication, oral or
written, which is critical of or derogatory towards or which would cause or tend to cause
humiliation or embarrassment to or cause a recipient of such communication to question the business
condition, integrity, product, service, quality, confidence or good character of any of these
persons or entities. The Company agrees not to make any disparaging statements about me if
contacted by any future employer or prospective employer. I will
direct such inquiries to the Company’s Chief People Officer. The foregoing shall not apply to
truthful testimony in any proceedings or as required by applicable law.

          The parties acknowledge and agree that any actual or threatened breach of the confidentiality
and/or non-disparagement obligations contained in this General Release would cause

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irreparable harm
to the other party, and that the other party shall be entitled to an injunction prohibiting the
violating party from committing or continuing such breach, together with all other remedies and
relief available at law or in equity or under this General Release. The parties also agree that
any such action for injunctive or other remedy or relief may be brought by the Company in the
Federal District Court or any state court in Pittsburgh, Pennsylvania, and I accept jurisdiction of
such courts relating to any such remedy or relief.

Review and Revocation

          I acknowledge that I have been given the opportunity to consider this General Release for at
least twenty-one (21) days, which is a reasonable period of time, and that I have been advised, in
writing by the Company through this General Release to consult with an attorney in relation thereto
prior to executing this General Release.

          I understand that I may revoke this General Release at any time prior to the close of business
on the seventh (7th) day following the date that I sign this General Release and deliver it to the
Company. If such seventh (7th) day is a Saturday, Sunday, or legal holiday, then any revocation
need not be delivered until the next following day which is not a Saturday, Sunday, or legal
holiday. Any revocation within this period must be submitted, in writing, to Steve Clark of the
Company, and state, “I hereby revoke my acceptance of my General Release”. I also understand that
I will not receive the Enhanced Severance Package if I revoke this General Release. If I do not
revoke this General Release, it shall, after the expiration of this 7-day period, become
irrevocable.

Disagreements or Disputes

          In the event that any disagreement or dispute should arise between myself and the Company
relating to the enforcement of this General Release, or in the event that this General Release is
ever determined to be invalid or not enforceable with respect to any Claim or Claims or in any
jurisdiction or before any court, then I and the Company acknowledge and agree that any such
dispute, disagreement or Claim will be submitted by me or the Company, as applicable (but the with
the exception of enforcement of the confidentiality and non-disparagement obligations as provided
above which, at the Company’s or my option (depending on whose rights were violated), may be
brought in court), to final and binding arbitration in Pittsburgh, Pennsylvania, pursuant to the
rules then in effect of the American
Arbitration Association, before a Panel of one arbitrator who is a member of the National Academy
of Arbitrators. Any arbitration shall be non-public and conducted confidentially. The decision of
such Panel shall be final and binding upon the Company and myself, and judgment may be entered
thereon in any court having jurisdiction. The Panel shall not have the authority to alter, delete,
or add to the provisions of this Agreement and the Panel’s decision shall be based solely upon
interpretation of the

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provisions of this Agreement. Any monetary award in such arbitration, or in
any other forum, court or jurisdiction in which I may seek recourse, shall be offset by amounts
received by me from the Company in connections with my termination of employment.

          I acknowledge and understand that the preceding paragraph does not require me to submit to
arbitration any action challenging the validity of this General Release under the ADEA. However, I
also understand and agree that in the event that it is determined that this General Release is not
valid or enforceable with respect to my release and waiver of rights under the ADEA, then any Claim
based on any alleged violation of my rights under the ADEA will be submitted to arbitration in
accordance with the preceding paragraph.

Miscellaneous Acknowledgments

          I agree that neither this General Release nor my receipt of the Enhanced Severance Package
shall constitute an admission by the Company that it treated me unlawfully or unfairly in any way.

          I acknowledge that due to, and as a continuing effect of, the termination of my employment, my
job duties may be reassigned and that the employee or employees assuming those duties may be
younger and of a different race or gender.

          I represent that, to my knowledge, I have not sustained any work-related injury during my
employment with the Company which has not been previously disclosed to the Company.

          The parties acknowledge that this General Release constitutes the entire agreement between me
and the Company with respect to the subject matter hereof, and that it shall be governed by and
interpreted in accordance with the substantive law of the Commonwealth of Pennsylvania, without
regard to its choice of law provisions. This General Release may not be modified or canceled in
any manner except by a writing signed by both me and an authorized Company official. Each party
acknowledges that the other has made no representations or promises to me (such as that my former
position will remain vacant), other than those in this General Release.

          The parties acknowledge and agree that if any term, condition or provision of this General
Release shall be determined by a court of competent jurisdiction to be void or invalid at law or
for any other reason, then only that term, condition or provision as is determined to be invalid
shall be stricken from this General Release, and this General Release shall remain in full force
and effect in all other respects.

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I acknowledge that I have carefully read the foregoing General Release,
that I understand completely its contents, that I understand the
significance and consequence of signing it, and that i intend to be legally
bound by its terms. I further acknowledge that I have had a reasonable and
sufficient period of time within which to consider this General Release and
that I have had the opportunity to review this General Release with counsel.
I swear that I have agreed to and signed this General Release voluntarily
and as my own free will, act, and deed, and for full and sufficient
consideration.

	 	 	 	 
	 

	 	/s/ Joseph Jimenez, Jr.	
	 

	 	 	
	 

	 	Joseph Jimenez, Jr.	
	 
	 	 	
	 

	 	April 28, 2006	
	 

	 	 	
	 

	 	Date	
	 
	 	 	
	 

	 	H. J. HEINZ COMPANY	
	 
	 	 	
	 

	 	By:   Steve Clark	
	 

	 	         Chief People Officer	
	 
	 	 	
	 

	 	Date: April 28, 2006	

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