Document:

EX-10.1

 

EXHIBIT 10.1

CONSULTING AGREEMENT

     The J. M. SMUCKER COMPANY, an Ohio corporation with its principal place of business at
Strawberry Lane, Orrville, Ohio 44667 (“JMS”), and Robert E. Ellis, 2210 Wadsworth Road, Orrville,
Ohio 44667, (“Consultant”), hereby agree as follows:

     1. Recitals. Consultant has substantial experience and knowledge relating to JMS’s
business, and specifically, its human resource function and corporate training programs, as well as
business integration matters generally. Due to the Consultant’s experience, JMS desires to engage
him on a consulting basis to provide advice in these areas. Consultant is agreeable to providing
those services, and it is the purpose of this Agreement to set forth the terms and conditions upon
which those services will be rendered.

     2. Retention and Description of Services. JMS retains Consultant to furnish JMS with
Consultant’s unique expertise, advice, consulting and personal services in connection with special
projects relating to the Consultant’s area of expertise or general business integration matters, in
each case, consistent with the terms of this Agreement (“Consulting Services”). The Consultant
will provide Consulting Services to JMS on an as needed basis during the Term. The actual
Consulting Services to be provided by Consultant will be as designated by: (i) the Chairman or
President of JMS or (ii) any other person designated by the Board of Directors. Consultant shall
perform all Consulting Services on behalf of JMS in a timely, diligent and professional manner in
accordance with the highest commercial industry standards.

      3. Term of Agreement. This Agreement commences as of January 1, 2008 and
will terminate on December 31, 2008 (the “Term”).

     4. Place of Performance . It is understood and agreed by JMS and Consultant that the
nature of the services to be rendered under this Agreement by Consultant may necessitate a
reasonable amount of travel by him and attendance by him at meetings with JMS personnel and others
that may be located at various locations in the United States.

     5. Compensation. On or before January 1, 2008, JMS will pay Consultant a lump sum fee
of One Hundred Thousand and no/100 Dollars ($100,000) for his services under this Agreement.

     6. Reimbursement of Expenses. JMS will reimburse Consultant for all reasonable and
necessary out-of-pocket expenses incurred by Consultant in connection with the rendition of
services under this Agreement with regard to specific, preapproved activities, including, but not
limited to, expenses of travel (other than the cost of travel between Consultant’s home and office,
if any). Reimbursement of expenses hereunder shall be on a basis consistent with JMS’s standard
corporate expense and travel policies, including, but not limited to, the required use of JMS’s
designated travel agency for all travel. Consultant understands that expenses to be

 

 

reimbursed by JMS under this Agreement will not include costs and expenses that would be considered
normally incident to the conduct by Consultant of his business. Any and all reimbursement of
expenses hereunder will be made solely on the basis of itemized statements submitted by Consultant
to JMS’s Corporate Controller, including actual bills, receipts, or other evidence of expenditures,
in accordance with JMS’s corporate policies.

     7. Consultant an Independent Contractor. Consultant will furnish services hereunder
as an independent contractor and not as an employee or agent of JMS or of any company affiliated
with JMS. Consultant shall have no power or authority to act on behalf of, represent, or bind JMS
or any company affiliated with JMS in any manner. Consultant is not entitled to any medical
coverage, life insurance, participation in any benefit plan, or any other benefits generally
accorded to employees of JMS or its affiliates.

     8. No Conflicting Activities. Consultant covenants that during the term of this
Agreement, he will not, either directly or indirectly, himself or through any affiliate, carry on,
or be engaged in, concerned with, or interested in, in any manner whatsoever, the development or
marketing of fruit spreads, peanut butter, baking mixes, toppings, beverages, or other products
produced or distributed by JMS anywhere in the United States or Canada (except for an equity share
investment in a public company whose shares are listed on a stock exchange or in an
over-the-counter market where such share investment does not in the aggregate exceed five percent
of the issued equity shares of such company), or represent, manufacture for, or distribute such
products for any person who does so manufacture or market. Consultant agrees that any breach of
this covenant will result in JMS’s suffering a loss which cannot adequately be compensated for in
damages and that JMS will be entitled to injunctive or other equitable relief.

     9. Confidentiality and Nondisclosure. Consultant hereby specifically agrees to be
bound by the nondisclosure provisions set forth in EXHIBIT “A” attached hereto and
incorporated herein by reference.

     10. Restrictions on Use of Inside Information. In the course of the performance of
his duties under this Agreement, it is expected that Consultant may receive information that is
considered material inside information within the meaning and intent of the securities laws of the
United States. Consultant will not disclose this information to others except as authorized by JMS
and will not use such information directly or indirectly for his own benefit or as a basis for
advice to any other party concerning any decision to buy, sell, or otherwise deal in the stock of
JMS.

     11. Survival of Obligations. The obligations of Consultant under paragraphs 9 and 10
above shall survive termination of this Agreement.

     12. Default; Termination. If either party fails to fulfill any of its obligations
under this Agreement, that shall constitute default. In the event of a default by any party that
is not cured within 30 days of notice thereof to the defaulting party, the party not in default may
terminate this Agreement effective immediately upon notice to the defaulting party.

 

 

     13. Notices. Notices under this Agreement shall be given by certified or registered
mail, postage prepaid, return receipt requested, or by hand delivery, addressed in either case to
the address for the party set forth above or to such other address as may be provided for in a
notice given as provided in this paragraph 13. Notices under this paragraph 13 shall be deemed
given upon receipt.

     14. Entire Agreement. This Agreement, together with EXHIBIT “A” attached,
constitutes the entire agreement and understanding between the parties and supersedes all prior
agreements and understandings between them with respect to its subject matter. It may not be
modified or assigned without the express permission of both parties in a writing referring to this
Agreement.

     15. Severability. The invalidity or unenforceability of any portion of this Agreement
shall not affect the validity, force, or effect of the remaining portions hereof. If it is ever
held that any restriction hereunder is too broad to permit enforcement of such restriction to its
fullest extent, each party agrees that a court of competent jurisdiction may enforce such
restriction to the maximum extent permitted by law, and each party hereby consents and agrees that
such scope may be judicially modified accordingly in any proceeding brought to enforce such
restriction.

     16. Governing Law. This Agreement shall be governed by and interpreted in accordance
with the laws of the State of Ohio, without reference to choice of law principles.

Dated: December 21, 2007

	 	 	 	 	 	 	 
	The J. M. SMUCKER COMPANY

	 	 	 	CONSULTANT

	By

	 	/s/ Timothy P. Smucker

 

Timothy P. Smucker

Chairman and Co-Chief
Executive Officer
	 	 	 	/s/ Robert E. Ellis

 

Robert E. Ellis

 

 

EXHIBIT “A”

NONDISCLOSURE PROVISIONS

     1. Nondisclosure Obligation. Consultant shall hold in confidence and not
disclose to third parties, or make commercial or other use of, any trade secrets or other
information that he may have received during his employment with JMS and/or its subsidiaries or
that he may receive or acquire from JMS during the term of the Consulting Agreement concerning
JMS’s products, equipment, processes, designs, packaging, methods of distribution, capabilities,
systems, technology, specifications, data, operating instructions, customers, marketing and sales,
business plans, or any other private matters, whether or not related to the project in which it is
involved (all such information shall be referred to below as the “Confidential Information” without
JMS’s prior written permission.

     2. Ownership of Materials. Any and all tangible representations of the Confidential
Information, including but not limited to any and all lists, notes, memoranda, schedules, data
sheets, written formulae, drawings, diagrams, blueprints, still or moving photographic or video
pictures, models, machinery, equipment, and packaging, provided to or obtained by Consultant
directly or indirectly by or from JMS, or developed by the Consultant during the term of the
Consulting Agreement, and all copies thereof are and shall be the exclusive property of JMS and
must be returned to JMS upon the first to occur of a specific request therefor by JMS or the
termination of the Consulting Agreement.

     3. Limits on Nondisclosure Agreement. Nothing herein contained shall deprive
Consultant of the right:

     A. to use any information which is now generally known to the trade or the public or
to use any other information from and after the time it becomes so known as long as it
becomes so known through no fault of Consultant; and

     B. to use any information received by Consultant lawfully and in good faith from a
third party who is under no obligation with regard thereto to JMS, either directly or
indirectly.

     4. No Other Rights. The Confidential Information shall remain the exclusive property
of JMS, and no license of or other right to utilize the Confidential Information or any patent,
trademark, invention, copyright or other intellectual property of JMS, either express or implied,
is conveyed or shall be deemed to have been conveyed hereby. Insofar as Consultant’s participation
in projects under the Consulting Agreement results in improvements or modifications to JMS’s
processes or products, such improvements or modifications shall be the property solely of JMS.
Consultant hereby waives any and all claims to and transfers, assigns, and conveys any and all
right, title, and interest in and to any Confidential Information. Without limiting the foregoing,
Consultant transfers, assigns, and conveys to JMS any and all patent rights, including patent
applications, which may result from projects on which it is involved under the Consulting
Agreement. Consultant will cooperate with JMS as it may require to assist it in obtaining,
defending, or enforcing any patent rights relating to or resulting from such projects worldwide and
will execute any papers necessary to effect such patent rights.

 

 

     5. Damages. Consultant recognizes the competitive value and confidential nature of
the Confidential Information and that any breach or threatened breach of these nondisclosure
provisions by Consultant may cause JMS irreparable injury for which monetary damages may be an
inadequate remedy. Therefore, Consultant agrees that, in addition to any monetary damages to which
it may be entitled, JMS shall be entitled to temporary and permanent injunctions restraining such
breach or threatened breach.

     6. Survival of Provisions. These nondisclosure provisions generally will expire two
years after the expiration of the Consulting Agreement; provided, however, that Consultant’s
obligations hereunder will continue in effect with respect to individual items of Confidential
Information for as long as those items remain confidential.exv10w23

 

EXHIBIT 10.23

EXECUTIVE OFFICER AND DIRECTOR COMPENSATION

     Executive Officers:

     The following table sets forth the current annual base salaries and certain other compensation
information of the executive officers of American Pacific Corporation (the “Company”) as of
September 30, 2007:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Base
Salary as of	 	 
	 	 	 	 	October 	 	September 	 	Potential Bonus (1)
	Name	 	Current Position	 	 1, 2006	 	 30, 2007	 	Potential Bonus (1)
	 
	John R. Gibson

	 	Chief Executive
Officer and
Chairman of the
Board
	 	$436,550 	 	$458,375 	 	For the fiscal year
ended September 30,
2007 (“fiscal
2007”), up to 100%
of Base Salary as
of October 1, 2006
	 
	Dr. Joseph Carleone

	 	President and Chief
Operating Officer
	 	$290,000 	 	$298,700 	 	For fiscal 2007, up
to 100% of Base
Salary as of
October 15, 2006
	 
	Linda G. Ferguson

	 	Vice
President-Administration and Secretary
	 	$186,000 	 	$191,580 	 	For fiscal 2007, up
to 50% of Base
Salary as of
October 1, 2006
	 
	Dana M. Kelley

	 	Vice President,
Chief Financial
Officer and
Treasurer
	 	$185,000 	 	$190,550 	 	For fiscal 2007, up
to 50% of Base
Salary as of
October 1, 2006
	 
	Dr. Aslam Malik

	 	President of Ampac
Fine Chemicals, LLC
	 	$232,872 	 	$239,856 	 	For fiscal 2007, up
to 114% of Base
Salary as of
October 1, 2006 (2)
	 
	Robert Huebner

	 	Vice President -

Ampac-ISP Operations
	 	$155,952 	 	$160,631 	 	For fiscal 2007, up
to 21% of Base
Salary as of
October 1, 2006 (3)
	 

In addition to base salary and potential bonus, the executive officers may receive equity and/or
certain other compensation, bonus and benefits under the Company’s equity incentive and other
benefit plans and programs, as applicable.

 

			
	(1)	 	Except for Dr. Malik and Mr. Huebner, each of the executive officers of the Company is a
participant in a discretionary executive incentive compensation program established by the
Company’s Corporate Governance Committee and Board of Directors pursuant to which participants may
earn up to a specified percentage of their respective base salaries, subject to the Company
achieving certain targets for the fiscal year. Payment of any bonus amount remains entirely at the
discretion of the Company’s Corporate Governance Committee and Board of Directors, notwithstanding
the achievement of such financial targets and any other bonus requirements.
	 
	(2)	 	Dr. Malik participates in the AMPAC Fine Chemicals incentive compensation plan pursuant to
which he may earn up to a specified percentage of his base salary, subject to the Company achieving
certain targets for the fiscal year. Payment of any bonus amount remains entirely at the
discretion of the Company’s Corporate Governance Committee and Board of Directors, notwithstanding
the achievement of such financial targets and any other bonus requirements.
	 
	(3)	 	Mr. Huebner participates in the incentive compensation plan for the Company’s Aerospace
Equipment segment pursuant to which he may earn up to a specified percentage of his base salary,

 

 

			
	 	 	subject to the Company achieving certain targets for the fiscal year. Payment of any bonus amount
remains entirely at the discretion of the Company’s Corporate Governance Committee and Board of
Directors, notwithstanding the achievement of such financial targets and any other bonus
requirements.

Directors:

Directors of the Company (other than directors who are also employees of the Company) are
compensated at the rate of $5,000 per quarter, plus $1,100 per meeting of the Company’s Board of
Directors meeting attended, and $800 per committee meeting attended, and are reimbursed for
expenses incurred in attending such meetings. Committee chairmen receive an additional $300 per
committee meeting attended.

Directors of the Company (who are neither full-time or part-time employees of the Company) may be
granted from time to time stock options under the 2002 Directors Stock Option Plan, to the extent
shares remain authorized and available under such plan.

In addition, one director, Mr. C. Keith Rooker, bills the Company at his customary rates for legal
services rendered to the Company and expenses incurred in connection therewith.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]