Document:

October 19, 2012 Exhibit 10.1

    EXHIBIT 10.1

EMPLOYMENT AGREEMENT

This Agreement is made and is effective as of the 15th day of October, 2012, by and between
S&W Seed Company, a Nevada corporation (the "Company") and Dan Gardner ("Executive"). Together,
Executive and the Company are sometimes referred to as the "Parties."

WHEREAS, the Company desires to retain Executive in the capacity of Vice President - Director of Plant
Breeding, and Executive wishes to be so retained; and

WHEREAS, the Company and Executive both desire to memorialize the arrangement in writing.

NOW THEREFORE, in consideration of the material advantages accruing to the Parties and the mutual
covenants contained herein, and intending to be legally and ethically bound hereby, the Company and Executive agree as follows:

1.Duties and Scope of Employment

(a)Positions and Duties.  Executive will serve, at the pleasure of the Board, as Vice
President and Director of Plant Breeding of the Company and shall report to the Company's Chief Executive Officer and Board. As of
the date of this Agreement (the "Effective Date"), Executive will be considered a full-time employee of the Company. In the
capacities of Vice President and Director of Plant Breeding, Executive will render such business and professional services in the
performance of his duties, consistent with Executive's position within the Company. Executive will report directly to the Chief Executive
Officer and Board. The period Executive is employed by the Company under this Agreement is referred to herein as the
"Employment Term."

(b)Obligations.  During the Employment Term, Executive will devote his full business efforts and
time to the Company and will use good faith efforts to discharge his obligations under this Agreement to the best of his ability. For the
duration of the Employment Term, Executive agrees not to actively engage in any other employment, occupation, or consulting activity
for any direct or indirect remuneration without the prior approval of the Chief Executive Officer; provided, however, that Executive may,
without the approval of the Chief Executive Officer, serve in any capacity with any civic, educational, or charitable organization and
serve on the board(s) set forth on Schedule A attached hereto, provided such services do not materially interfere with
Executive's obligations to the Company. Executive represents that he is not subject to any non-competition, confidentiality, trade
secrets or other agreement(s) that would preclude, or restrict in any way, Executive from fully performing his services hereunder during
his employment with the Company.

2.At-Will Employment.  Executive and the Company agree that
Executive's employment with the Company constitutes "at-will" employment. Executive and the Company acknowledge that
this employment relationship may be terminated at any time, upon written notice to the other party, with or without good cause or for
any or no cause, at the option either of the Company or Executive. 

3.Term of Agreement.  This Agreement will have a term of three years commencing on
the Effective Date. No later than 90 days before the end of the term of this Agreement, the Company and Executive will discuss
whether and under what circumstances the Agreement will be renewed.

4.Compensation.

(a)Base Salary.  As of the Effective Date, the Company will pay Executive an annual salary of
$175,000 as compensation for his services (such annual salary, as is then effective, to be referred to herein as "Base
Salary"). The Base Salary will be paid periodically in accordance with the Company's normal payroll practices and be subject to
the usual, required withholdings. Executive's annual salary will be subject to review by the Compensation Committee of the Board, or
any successor thereto (the "Compensation Committee") not less than annually, and increases will be made in the discretion
of the Committee. Executive shall disclose to the Compensation Committee all boards and associations he is currently serving on and
shall seek the Committee's approval before accepting or seeking any further positions. Executive shall also do the same with any
outside paid employment/consulting positions.

(b)Bonus Compensation.  In the sole discretion of the Chief Executive Officer and
Compensation Committee, Executive may receive periodic bonuses up to 100% of Base Salary in acknowledgment of his and the
Company's achievements and efforts from time to time. Such bonuses may be payable in the future in alignment with stated
performance goals or otherwise in the Chief Executive Officer's and Compensation Committee's discretion.  

(c)Equity Incentive Compensation.  Executive shall be eligible to participate in the
Company's equity incentive plans, as in effect from time to time, and shall be considered for grants and awards at such times and in
such amounts as shall be deemed appropriate by the Compensation Committee, as the administrator of such plans. The foregoing
notwithstanding, the Company's Chairman of the Board and Chief Executive Officer shall recommend to the Compensation Committee
in connection with the first grant of new options to executive officers following the date of this Agreement, that Executive should be
considered for a grant of 50,000 options. 

(d)Stock Ownership Guidelines.  Executive shall be subject to, and shall comply with, the
Company's stock ownership guidelines, including compliance with its Insider Trading Policy, a copy of which is attached hereto as
Exhibit A and Section 16 of the Securities Exchange Act of 1934, as amended.

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5.Executive Benefits

(a)Generally.  Executive will be eligible to participate in accordance with the terms of all
Company employee benefit plans, policies, and arrangements that are applicable to other executive officers of the Company, as such
plans, policies, and arrangements may exist from time to time.  The Company shall cover or reimburse Executive for health insurance
premiums for Executive and his immediate family.

(b)Vacation.  Executive will be entitled to receive paid annual vacation in accordance
with Company policy. 

(c) Automobile. Until revised by recommendation of the Compensation Committee, Executive will
receive a gross payment of $750 per month to cover a car allowance and automobile insurance on the vehicle used by Executive for
Company-related business. In addition, Executive shall be reimbursed for gasoline.

(d)Office. Although the Company is headquarter in Five Points, CA, and Executive will be
engaged in field supervision of plant trials on location, the Company shall provide supplemental office space to be co-occupied by Fred
Fabre in the Sacramento, California area..

6.Expenses.  The Company will reimburse Executive for reasonable travel, business
entertainment and other expenses incurred by Executive in the furtherance of the performance of Executive's duties hereunder, in
accordance with the Company's expense reimbursement policy as in effect from time to time.

7.Termination of Employment.  In the event Executive's employment with the Company
terminates for any reason, Executive will be entitled to any (a) unpaid Base Salary accrued up to the Date of Termination, (b)
pay for accrued but unused vacation, (c) benefits or compensation as provided under the terms of any employee benefit and
compensation agreements or plans applicable to Executive and under which he has a vested right (including any right that vests in
connection the termination of his employment), (d) unreimbursed business expenses to which Executive is entitled to
reimbursement under the Company's expense reimbursement policy, and (e) rights to indemnification Executive may have
under the Company's Certificate of Incorporation, By-laws, the Employment Agreement, or separate indemnification agreement, as
applicable, including any rights Executive may have under directors and officers insurance policies. 

8.Severance.

(a)Termination Without Cause.  If Executive's employment is terminated by the Company
without Cause (as defined below), then, subject to compliance with Section 9, Executive will be eligible to receive a cash severance of
twelve months of the Base Salary as in effect immediately before the Date of Termination. Cash severance is payable on the Date of
Termination.  

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(b) Change In Control.  If during Executive's employment with the Company (i) there is a Change
of Control (as defined below) and (ii) Executive is not offered a Comparable Position (as defined below) by the surviving corporation,
Executive will be eligible to receive a cash severance of twelve months of the Base Salary as in effect immediately before the Change
of Control and/or Date of Termination. In addition to the benefits provided for in this Section 8(b), all stock options or other
equity grants awarded to Executive pursuant to a Company equity incentive plan, whether in effect on the day hereof or adopted
hereafter, will vest in full and be non-forfeitable immediately before the Change of Control and or Date of Termination. A
"Comparable Position" is a position with similar or greater responsibilities at the Executive's then-current base salary and
does not require the Executive's relocation. "Change of Control" shall mean the sale or substantially all of the assets of the
Company or the acquisition of the Company by another entity by means of consolidation or merger after which the then current
stockholders of the Company hold less than 50% of the voting power of the surviving corporation provided that a reincorporation of the
Company shall not be a Change of Control. 

(c)Termination without Cause: Treatment of Equity Incentive Awards.  If Executive's employment
is terminated by the Company without Cause prior to the second anniversary of the Effective Date, then in addition to the benefits
provided for in Section 8(a) above, all stock options or other equity grants awarded to Executive pursuant to a
Company equity incentive plan, whether in effect on the day hereof or adopted hereafter, will vest in full and be non-forfeitable as of the
Date of Termination.

(d)Termination for Cause.  If Executive's employment is
terminated for Cause by the Company, then, (i) all further vesting of Executive's outstanding equity awards will terminate
immediately; and (ii) all payments of compensation by the Company to Executive hereunder will terminate immediately. 

(e)Other Termination Including due to Accidental Death or Disability.  If Executive's employment
terminates for any other reason, including but not limited to, death or Disability, then, (i) Executive's outstanding equity awards
will be treated in accordance with the terms and conditions of the applicable award agreement(s); (ii) all payments of
compensation by the Company to Executive hereunder will terminate immediately, and (iii) Executive will be entitled to receive
benefits only in accordance with the Company's then established plans, programs and practices.

9.Covenants; Conditions to Receipt of Severance; Mitigation.

(a)Non-disparagement.  During the Employment Term and for the 12 months
thereafter, Executive will not, and will cause his relatives, agents and representatives to not, knowingly disparage, criticize or otherwise
make any derogatory statements regarding the Company, its directors, or its officers, and the Company will not knowingly disparage,
criticize or otherwise make any derogatory statements regarding Executive. The Company's obligations under the preceding sentence
shall be limited to communications by its senior corporate executives having the rank of Vice President or above and members of the
Board. The foregoing restrictions will not apply to any statements that are made truthfully in response to a subpoena or other
compulsory legal process. Payments of severance to Executive, in accordance with

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Section 8 above, shall immediately cease, and no further payments shall be made, in the event that Executive breaches the provisions of this Section 9(a).

(b)Other Requirements.  Any general release of claims required to be executed by Executive as a
condition to the receipt of severance will be consistent in substance with the releases of claims used at the time by the Company in
connection with separations of senior corporate executives generally.

(c)Mitigation.  Payments of severance to Executive, in accordance with Section 8 above,
shall immediately cease, and no further payments shall be made, in the event that Executive materially breaches the Confidential
Information Agreement (provided, however, that Executive's right to future payments will be restored, and any omitted payments will be
made to Executive promptly, if the Board in its reasonable good faith judgment determines that such breach is curable, and Executive
cures the breach to the reasonable satisfaction of the Board within 30 days of having been notified thereof). Executive agrees to
cooperate with the Company and to provide timely notice as to his activities following a termination without Cause so that the Company
may monitor its obligation under Section 8.

10.Definitions.

(a)Cause.  For purposes of the Employment Agreement, termination for "cause"
generally means termination as a result of Executive's willful gross misconduct that is materially adverse to the Company, Executive's
willful violation of a federal or state law, rule or regulation applicable to the business of the Company that is materially adverse to the
Company, Executive's conviction for, or entry of a guilty or no contest plea to, a felony. Executive's
termination of employment will not be considered to be for Cause unless it is approved by a majority vote of the members of the Board
of Directors or an independent committee thereof. It is understood that good faith decisions of the Executive relating to the conduct of
the Company's business or the Company's business strategy will not constitute "Cause."

(b)Disability.  For purposes of this Agreement, Disability will mean Executive's absence from his
responsibilities with the Company on a full-time basis for 180 calendar days in any consecutive 12 months period as a result of
Executive's mental or physical illness or injury.

11.Indemnification.  Subject to applicable law, Executive will be provided indemnification
to the maximum extent permitted by the Company's by-laws and Certificate of Incorporation, including coverage, if applicable, under
any directors and officers insurance policies, with such indemnification determined by the Board or any of its committees in good faith
based on principles consistently applied (subject to such limited exceptions as the Board may approve in cases of hardship) and on
terms no less favorable than provided to any other Company executive officer or director.

12.Confidential Information, etc..  

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(a)Non-Disclosure of Information.  It is understood that the business of the Company is of a
confidential nature. During the period of Executive's employment with the Company, Executive may receive and/or may secure
confidential information concerning the Company or any of the Company's affiliates which, if known to competitors thereof, would
damage the Company or its said affiliates. Executive agrees that during and after the term of this Agreement he will not, directly or
indirectly, divulge, disclose or appropriate to his own use, or to the use of any third party, any secret, proprietary or confidential
information or knowledge obtained by him during the term hereof concerning such confidential matters of the Company or its affiliates,
including, but not limited to, information pertaining to contact information, financial information, research, product plans, products,
services, customers, markets, developments, processes, designs, drawings, business plans, business strategies or arrangements, or
intellectual property or trade secrets. Upon termination of this Agreement, Executive shall promptly deliver to the Company all materials
of a secret or confidential nature relating to the business of the Company or any of its affiliates that are, directly or indirectly, in the
possession or under the control of Executive.

(b)Trade Secrets.  Executive acknowledges and agrees that during the term of this Agreement
and in the course of the discharge of his duties hereunder, Executive shall have access to and become acquainted with information
concerning the operation and processes of the Company, including without limitation, proprietary, technical, financial, personnel, sales
and other information that is owned by the Company and regularly used in the operation of the Company's business, and that such
information constitutes the Company's trade secrets. Executive specifically agrees that he shall not misuse, misappropriate, or disclose
any such trade secrets, directly or indirectly, to any other person or use them in any way, either during the term of this Agreement or at
any other time thereafter, except as is required in the course of his employment hereunder. Executive acknowledges and agrees that
the sale or unauthorized use or disclosure of any of the Company's trade secrets obtained by Executive during the course of his
employment under this Agreement, including information concerning the Company's current or any future and proposed work, services,
or products, the fact that any such work, services, or products are planned, under consideration, or in production, as well as any
descriptions thereof, constitute unfair competition. Executive promises and agrees not to engage in any unfair competition with the
Company, either during the term of this Agreement or at any other time thereafter. Executive further agrees that all files, records,
documents, specifications, and similar items relating to the Company's business, whether prepared by Executive or others, are and
shall remain exclusively the property of the Company and that they shall be removed from the premises of the Company only with the
express prior written consent of the Company's Chief Executive Officer or his designee.

(c)Cooperation.  Executive agrees to cooperate with and provide assistance to the Company and
its legal counsel in connection with any litigation (including arbitration or administrative hearings) or investigation affecting the
Company, in which, in the reasonable judgment of the Company's counsel, Executive's assistance or cooperation is needed. Executive
shall, when requested by the Company, provide testimony or other assistance and shall travel at the Company's reasonable request
and expense in order to fulfill this obligation.

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(d)Proprietary Inventions and Assignment Agreement.  Concurrently with the execution and
delivery of this Agreement, Executive shall execute and deliver the Company's Proprietary Inventions and Assignment Agreement, a
copy of which is attached hereto as Exhibit B and incorporated herein by this reference. Executive agrees to abide by the provisions
thereof.

13.Assignment.  This Agreement will be binding upon and inure to the benefit of
(a) the heirs, executors, and legal representatives of Executive upon Executive's death, and (b) any successor of the
Company. Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all
purposes. For this purpose, "successor" means any person, firm, corporation, or other business entity, which at any time,
whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the
Company. None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or
transferred except by will or the laws of descent and distribution. Any other attempted assignment, transfer, conveyance, or other
disposition of Executive's right to compensation or other benefits will be null and void.

14.Notices.  All notices, requests, demands, and other communications called for
hereunder will be in writing and will be deemed given (a) on the date of delivery if delivered personally, (b) one
(1) day after being sent overnight by a well established commercial overnight service, or (c) four (4) days
after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors at
the following addresses, or at such other addresses as the parties may later designate in writing:

If to the Company:

Attn: Chairman of the Compensation Committee

                   c/o Corporate Secretary

                   S&W Seed Company

                   25552 South Butte Avenue

                   Five Points, CA 93624

If to Executive:

at the last residential address known by the Company.

15.Severability.  If any provision hereof becomes or is declared by a court of competent
jurisdiction to be illegal, unenforceable, or void, this Agreement will continue in full force and effect without said provision.

16.Governing Law: Arbitration.  

(a)This Agreement will be deemed to be made in and in all respects will be interpreted, construed and
governed by and in accordance with the law of the State of California without regard to any applicable principles of conflicts of law. This
Agreement shall not be interpreted or construed with any presumption against the party causing this Agreement to be drafted.

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(b)Any dispute, controversy or claim, whether based on contract, tort, statute, fraud,
misrepresentation or any other legal theory (a "Dispute") between Executive and the Company arising out of or relating to
this Agreement, any obligations hereunder or the relationship of the parties under this Agreement shall be settled by binding arbitration
conducted in San Diego, California in accordance with the then current arbitration rules of JAMS as modified by the following provisions
of this Agreement:

(i)Within five business days following the delivery of notice of a Dispute by a party in accordance with this
Agreement (a "Notification"), the parties shall meet and confer on a date and at a time and place agreed upon between the
parties. If the Dispute(s) are resolved by the parties in such meeting, the parties agree to reduce to writing the settlement or resolution
thereof, which shall thereupon become part of this Agreement. In the event that the meeting for any reason does not occur prior to the
tenth day following a Notification or does not result in a mutually agreed settlement, then the parties shall proceed with the
arbitration.

(ii)Selection of one neutral arbitrator by the parties shall be from JAMS panel list and shall be chosen by
the parties together; provided, that if the parties are unable to reach agreement with respect to the arbitrator, the arbitrator shall be
chosen in accordance with appointment rules of JAMS.  The arbitrator shall be experienced in complex business matters.

(iii)The arbitration process shall be conducted on an expedited basis by the regional office of JAMS located
in San Diego, California.  Proceedings in arbitration shall begin no later than 45 days after the filing of the Dispute with JAMS and shall
be scheduled to conclude no later than 180 days after the filing of the Dispute (including delivery of the written judgment under clause
(vi) below).  All hearings, unless otherwise agreed to by the parties, shall be held in San Diego, California.  Notwithstanding the
foregoing, the timetable for the arbitration process will be further expedited in the event that a party is seeking mandatory or prohibitive
injunctive relief and an expedited schedule is reasonably required to preserve the business interests of the party or parties seeking
such relief.

(iv)Each party may obtain and take discovery, including requests for production, interrogatories, requests
for admissions and depositions, as provided by the Federal Rules of Civil Procedure; provided that the arbitrator may, in his or her
discretion, set parameters on (including the extension of) the timing and/or completion of this discovery and may order additional
pre-hearing exchange of information, including, without limitation, exchange of summaries of testimony or exchange of statements of
positions.  All rights of discovery shall commence upon delivery of a Notification, regardless of the timing or occurrence of the meeting
contemplated by clause (i) above.

(v)The arbitration proceedings and all testimony, filings, documents and information relating to or presented
during the arbitration proceedings shall be disclosed exclusively for the purpose of facilitating the arbitration process and for no other
purpose.

(vi)The award of the arbitrator shall be made in a written opinion containing a concise reasoned analysis of
the basis upon which the award was made.  The award of the arbitrator may provide for mandatory or prohibitive injunctive relief.

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(vii)A judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction
thereof.

(viii)The parties to any arbitration initially shall share equally the fees and costs of JAMS and the arbitrator.
At  the discretion of the arbitrator, the prevailing party or parties may recover from the adverse parties his or its actual reasonable
attorneys' fees and costs incurred in connection with the arbitration and the enforcement thereof (including reimbursement of any fees
and costs of JAMS and the arbitrator(s) paid by such party).

(ix)Any party may apply to a court having jurisdiction to:  (A) enforce this agreement to arbitrate; (B) seek
provisional injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved; (C) avoid the expiration of
any applicable limitations period; or (D) preserve a superior position with respect to other creditors.

(x)The arbitrator is only authorized to, and only has the consent of the parties to, interpret and apply the
terms and conditions of this Agreement in accordance with the governing law.  The arbitrator is not authorized to, and shall not, order
any remedy not permitted by this Agreement and shall not change any term or condition of this Agreement, deprive either party of any
remedy expressly provided hereunder or provide any right or remedy that has not been expressly provided hereunder.

  

(xi)The Federal Arbitration Act, 9 U.S.C. Sections 1 through 14 (as amended and including any successor
provision), except as modified hereby, shall govern the interpretation and enforcement of this Section 14(b).

Notwithstanding the foregoing, the parties shall continue performing their respective obligations under
this Agreement while the Dispute is being resolved unless and until such obligations are terminated or expire in accordance with the
provisions hereof.

17.Integration.  This Agreement, together with the Proprietary Inventions and Assignment
Agreement and the standard forms of equity award grants that describe Executive's outstanding equity awards, represents the entire
agreement and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous
agreements whether written or oral. No waiver, alteration, or modification of any of the provisions of this Agreement will be binding
unless in a writing and is signed by duly authorized representatives of the parties hereto. In entering into this Agreement, no party has
relied on or made any representation, warranty, inducement, promise or understanding that is not in this Agreement.

18.Waiver of Breach.  The waiver of a breach of any term or provision of this
Agreement, which must be in writing, will not operate as or be construed to be a waiver of any other previous or subsequent breach of
this Agreement.

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19.Survival.  The Proprietary Inventions and Assignment Agreement and the Company's
and Executive's responsibilities under Sections 7, 8, 9, 10, 11, 13, 14, 15 and 16 will survive the termination of this Agreement.

20.Headings.  All captions and section headings used in this Agreement are for
convenient reference only and do not form a part of this Agreement.

21.Tax Withholding.  All payments made pursuant to this Agreement will be subject to
withholding of applicable taxes.

22.Acknowledgment.  Executive acknowledges that he has had the opportunity to
discuss this matter with and obtain advice from his private attorney, has had sufficient time to, and has carefully read and fully
understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement.

23.Internal Revenue Code Section 409A.  Notwithstanding any provision of this
Agreement, this Agreement shall be construed and interpreted to comply with Section 409A of the Internal Revenue Code of
1986, as amended, and if necessary, any provision shall be held null and void to the extent such provision (or part thereof) fails to
comply with Section 409A of the Code or regulations thereunder. For purposes of the limitations on nonqualified deferred
compensation under Section 409A of the Code, each payment of compensation under the Agreement shall be treated as a
separate payment of compensation for purposes of applying the Section 409A of the Code deferral election rules and the
exclusion from Section 409A of the Code for certain short-term deferral amounts. Any amounts payable solely on account of
an involuntary separation from service within the meaning of Section 409A of the Code shall be excludible from the
requirements of Section 409A of the Code, either as involuntary separation pay or as short-term deferral amounts (e.g.,
amounts payable under the schedule prior to March 15 of the calendar year following the calendar year of involuntary
separation) to the maximum possible extent. If, as of the Date of Termination, Executive is a "specified employee" as
determined by the Company, then to the extent that any amount or benefit that would be paid or provided to Executive under this
Agreement within six (6) months of his "separation from service" (as determined under Section 409A) constitutes
an amount of deferred compensation for purposes of Section 409A and is considered for purposes of Section 409A to
be owed to Executive by virtue of his separation from service, then such amount or benefit will not be paid or provided during the
six-month period following the date of Executive's separation from service and instead shall be paid or provided on the first business day
that is at least seven (7) months following the date of Executive's separation from service, except to the extent that, in the Company's
reasonable judgment, payment during such six-month period would not cause Executive to incur additional tax, interest or penalties
under Section 409A. Further, any reimbursements or in-kind benefits provided under the Agreement shall be made or provided
in accordance with the requirements of Section 409A of the Code, including, where applicable, the requirement that
(i) any reimbursement is for expenses incurred during the period of time specified in the Agreement, (ii) the amount of
expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for
reimbursement, or in-kind benefits to be provided, in any other calendar year, (iii) the reimbursement of an eligible expense will
be made no later than the last day of the calendar year following the year in

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which the expense is incurred, and (iv) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

24.Counterparts.  This Agreement may be executed in counterparts, and each
counterpart will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of
the undersigned.

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IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by a
duly authorized officer, on the day and year written below.

Company

                   S&W SEED COMPANY

 

By:/s/ Matthew K. Szot

                       Matthew Szot

                   Senior Vice President and Chief Financial Officer

Entered into this 15th day of October, 2012.

Executive

 

/s/ Danielson G. Gardner

                   Dan Gardner

                                                     12ex10_1.htm

Exhibit 10.1

 

AMENDED AND RESTATED

EXECUTIVE EMPLOYMENT CONTRACT

 

THIS AMENDED AND RESTATED EXECUTIVE EMPLOYMENT CONTRACT (the “Amended Agreement”), made and entered into on the 18th day of October, 2012, amends and restates the Executive Employment Contract dated as of December 1, 2005, as most recently amended and restated as of August 15, 2011 (the “Prior Agreement”), by and between Sensient Technologies Corporation, a Wisconsin corporation (hereinafter referred to as the “Company”), and Kenneth P. Manning (hereinafter referred to as “Executive”);

W I T N E S S E T H :

WHEREAS, the Executive is presently employed by the Company as its President, Chief Executive Officer and Chairman of the Board of Directors of the Company (the “Board”);

WHEREAS, the Board recognizes that the Executive’s contribution to the growth and success of the Company has been substantial;

WHEREAS, the Board desires to make certain changes to the Prior Agreement relating to the term of this Agreement and Executive’s position and duties hereunder;

WHEREAS, the Executive and the Company intend that this Amended Agreement shall supersede and replace the Prior Agreement;

WHEREAS, the Executive and the Company intend that in the event of a Change of Control (as defined in the Amended and Restated Change of Control Severance and Employment Agreement, made and entered into as of October 23, 2008, by and between the Executive and the Company (the “Change of Control Agreement”)), this Amended Agreement shall be superseded and replaced by the Change of Control Agreement; and

WHEREAS, the Executive is willing to commit himself to continue to serve the Company, on the terms and conditions herein provided;

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements hereinafter set forth, the parties hereto mutually covenant and agree as follows:

 

1. Employment. The Company hereby agrees to continue to employ the Executive, and the Executive hereby agrees to continue to serve the Company, on the terms and conditions set forth herein.

 

2. Term. The employment of the Executive by the Company as provided in Section 1 of this Agreement will continue until February 1, 2014, unless further extended by mutual agreement or sooner terminated as hereinafter provided (the “Employment Period”).  The Company and the Executive also intend that the Executive will continue to serve as Sensient's non-employee Chairman of the Board following the Employment Period through December 31, 2015.

 

3. Position and Duties.

(a) Unless otherwise mutually agreed, Executive shall continue to serve as the Company's President until November 1, 2012, and thereafter shall continue to serve as Chief Executive Officer of the Company and the Chairman of the Board for the remainder of the Employment Period and shall have such responsibilities and authority as may from time to time be assigned to the Executive by the Company’s Board of Directors consistent with his position.

(b) During the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive shall devote substantially all his working time and efforts during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to the Executive under this Agreement, use the Executive’s reasonable best efforts to carry out such responsibilities faithfully and efficiently. It shall not be considered a violation of the foregoing for the Executive to (A) serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements or teach at educational institutions and (C) manage personal investments, so long as such activities do not significantly interfere with the performance of the Executive’s responsibilities as an employee of the Company in accordance with this Amended Agreement or otherwise violate the provisions of Section 14.

 

  

  

  

 

4. Place of Performance. In connection with the Executive’s employment by the Company, the Executive shall be based in Milwaukee, Wisconsin (at the principal executive offices of the Company) except for required travel on the Company’s business to an extent substantially consistent with his present business travel obligations.

5. Compensation and Related Matters.

(a) Base Salary. Except as provided below, during the Employment Period, the Company shall pay to the Executive a salary at a rate of $1,035,400 per annum pursuant to the Company’s normal payroll practices (the “Base Salary”). The Base Salary shall be reviewed on or before January 1 of each year following the date of this Amended Agreement, while this Amended Agreement remains in force, to ascertain whether in the judgment of the Board or such Committee to whom the Board may have delegated authority, such Base Salary should be adjusted. Any adjustment shall occur only by mutual agreement of the Company (acting with the approval of the Compensation Committee) and the Executive. If so adjusted, the term Base Salary as utilized in this Amended Agreement shall refer to the Base Salary as so adjusted. Compensation of the Executive by salary payments shall not be deemed exclusive and shall not prevent the Executive from participating in any other compensation or benefit plan of the Company. The Base Salary payments (including any adjusted salary payments) hereunder shall not in any way limit or reduce any other obligation of the Company hereunder, and no other compensation, benefit or payment hereunder shall in any way limit or reduce the obligation of the Company to pay the Executive’s Base Salary hereunder.

(b) Annual Bonus. In addition to the annual Base Salary, the Executive shall be eligible to be awarded, for each fiscal year or portion of a fiscal year ending during the Employment Period, an annual bonus (the “Annual Bonus”) pursuant to the terms of the Company’s Incentive Compensation Plan for Elected Corporate Officers, or any successor or replacement plan.

(c) Expenses. During the Employment Period, the Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by the Executive in performing services hereunder, including all expenses of travel and living expenses while away from home on business or at the request of and in the service of the Company, provided that such expenses are incurred and accounted for in accordance with the policies and procedures established by the Company.

(d) Other Benefits. During the Employment Period: (i) the Executive shall be entitled to participate in incentive, savings and retirement plans, practices, policies and programs of the Company to an extent no less favorable than the participation provided generally to other senior executives of the Company; and (ii) the Executive and/or the Executive’s family, as the case may be, shall be eligible for participation in, and shall receive benefits under, welfare benefit plans, practices, policies and programs provided by the Company (including, without limitation, medical, prescription, dental, disability, employee life insurance, group life insurance, accidental death and travel accident insurance plans and programs) to an extent no less favorable than the participation and benefits provided to other senior executives of the Company (and/or their families).

(e) Vacation. During the Employment Period, the Executive shall be entitled to paid vacation that is no less favorable than the paid vacation provided generally to other senior executives of the Company and to all paid holidays given by the Company to its other senior executives.

(f) Office and Support Staff. During the entire term of this Amended Agreement, the Company shall furnish the Executive with office space, secretarial assistance and such other facilities and services as shall be suitable to the Executive’s position and adequate for the performance of his duties as set forth in Section 3.

(g) Fringe Benefits. During the Employment Period, the Executive shall be entitled to fringe benefits and perquisites, which shall be no less favorable than the fringe benefits and perquisites provided generally to other senior executives of the Company.

 

  

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6. Offices. During the Employment Period, the Executive agrees to serve without additional compensation, if elected or appointed thereto, as a director of the Company and any of its subsidiaries and in one or more executive offices of any of the Company’s subsidiaries, provided that the Executive is indemnified for serving in any such capacities on a basis no less favorable than is currently provided by the Company’s By-laws.

 

7. Death. If the Executive shall die during the Employment Period but prior to the delivery of a Notice of Termination (as hereinafter defined) by the Company or by the Executive for Good Reason (as hereinafter defined), the Company shall pay the Executive’s estate or legal representative, within thirty days following the Executive’s Date of Termination (as hereinafter defined), a lump sum payment equal to the sum of: (1) the accrued but unpaid portion of the Executive’s annual Base Salary through the Date of Termination (i.e., the portion of the Base Salary for the period before Executive’s death that remains unpaid), (2) the value of the Executive’s accrued, but unused, vacation days (based on the Executive’s annual Base Salary) and (3) the product of (x) the average annual bonus earned by the Executive for the three years immediately prior to the year in which the Date of Termination occurs and (y) a fraction, the numerator of which is the number of full and partial months in the fiscal year in which the Date of Termination occurs through the Date of Termination, and the denominator of which is twelve, in each case to the extent not theretofore paid (the “Bonus Amount”), and the Company shall have no further obligations to pay other benefits under this Amended Agreement. The amounts described in clauses (1), (2) and (3) shall be hereinafter referred to as the “Accrued Obligations.”

8. Disability.

(a) If during the Employment Period, the Executive is determined by the Company to have a Disability, the Company shall pay the Executive (1) within thirty days following the Executive’s Disability determination, a lump sum payment of the Accrued Obligations and (2) commencing on the Executive’s Disability determination until February 1, 2014, or the termination of his Disability, whichever is first to occur, such amounts which an individual in his earnings category would be normally entitled to receive as full Long Term Disability (“LTD”) coverage under the Company LTD plan then in effect, but not less than 60% of his Base Salary as determined under Section 5(a) at the time of the Executive’s Disability determination. During the term of his Disability, the Executive also shall receive the employee benefits (or service credits therefor, as the case may be) he would have been entitled to receive, as provided in Section 5(d) (other than under incentive plans). The obligation to provide the foregoing disability benefits shall survive the termination of this Amended Agreement provided the Disability was incurred before termination, and the Company shall have no further obligations to pay compensation or benefits under this Amended Agreement.

(b) For purposes of this Amended Agreement, “Disability” means that (i) the Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (ii) the Executive is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering the Executive.   The Company’s determination that the Executive has a Disability shall be communicated to the Executive by written notice, and shall be effective on the 30th day after receipt of such notice by the Executive (the “Disability Effective Date”), unless the Executive returns to full-time performance of the Executive’s duties before the Disability Effective Date.  The determination of Disability shall be made by a physician selected by the Company or its insurers and acceptable to the Executive or the Executive’s legal representative.

9. Termination by the Company.

(a) Termination for Cause. The Executive’s employment may be terminated by the Board at any time for Cause which shall be defined to mean (I) conviction of the Executive of any act of fraud, theft or embezzlement or (II) the commission of any of the following acts by the Executive which is substantially injurious to the Company: dishonesty, gross misconduct, willful disclosure of trade secrets, gross dereliction of duty or other grave misconduct on the part of the Executive.

 

  

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The Executive shall not be deemed to have been terminated for Cause without (i) reasonable notice to the Executive setting forth the reasons for the Company’s intention to terminate for Cause, (ii) an opportunity for the Executive, together with his counsel, to be heard before the Board and (iii) delivery to the Executive of a Notice of Termination from the Board finding that in the good faith opinion of the Board the Executive was guilty of conduct set forth above in this Section 9(a), and specifying the particulars thereof in detail. In the event the Executive’s employment is terminated for Cause, the Executive shall be entitled to his accrued and unpaid Base Salary through the Date of Termination and shall forfeit his right to any and all compensation and benefits he would otherwise have been entitled to receive under this Amended Agreement.

 

(b) Termination without Cause. The Company has the right to terminate the employment of the Executive without Cause, upon at least thirty days’ prior written notice, if such termination is approved by a majority vote of the Board taken at a meeting duly called to consider such matter. In the event of termination of the Executive’s employment pursuant to this Section 9(b), the Company shall provide the Executive with the following “Termination Benefits,” and the Company shall have no further obligations to pay compensation or benefits under this Amended Agreement:

(i) a lump sum cash payment, within thirty days following the Date of Termination, equal to the sum of: (A) the Accrued Obligations, and (B) the product of (1) three and (2) the sum of the Base Salary, plus the higher of Executive’s most recent annual bonus or Executive’s target bonus for the year in which the Date of Termination occurs (if no target bonus has been set for such year, the Executive’s target bonus for the prior year shall be used);

(ii) the Executive shall be credited with three additional years of service for purposes of calculating his retirement benefit under any supplemental or excess retirement plan of the Company in which he was a participant as of the Date of Termination;

(iii) from the Date of Termination until 36 months following the end of the month in which the Date of Termination occurs, the Company shall continue benefits to the Executive (and/or the Executive’s family) at least equal to those which would have been provided to them in accordance with the plans, programs, practices and policies described in Section 5(d)(ii) if the Executive’s employment had not been terminated or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other senior executives of the Company (and their families) (in addition, if the Executive is eligible for “COBRA” continuation health coverage under Section 4980B of the Internal Revenue Code of 1986, as amended (or any successor provision), such coverage shall commence upon the end of the coverage for the severance period); provided, however, that if any of the welfare benefits provided during the period the Executive is considered a “specified employee” or “key employee” under Section 24 of this Agreement are not subject to an exemption under Section 409A of the Code, such benefits will be provided at the Executive’s cost subject to reimbursement during any such period; and provided further, however, if the Executive becomes reemployed with another employer and is eligible to receive medical or other welfare benefits under another employer-provided plan, the medical and other welfare benefits described herein shall be secondary to those provided under such other plan during such applicable period of eligibility; and

(iv) the Executive shall be credited with three additional years of service and age for purposes of eligibility for retiree health benefits under any retiree health plan maintained by the Company.

10. Termination by the Executive.

 

(a) Without Good Reason. The Executive has the right to terminate his employment at any time without Good Reason upon no less than thirty days’ prior written notice delivered to the Company. If the Executive terminates his employment during the Employment Period for any reason other than Disability or Good Reason, the Company shall pay a lump sum payment to the Executive of the Accrued Obligations (other than the Bonus Amount), and the Company shall have no further obligations to pay compensation or benefits under this Amended Agreement.

(b) For Good Reason. The Executive has the right to terminate his employment for Good Reason upon thirty days’ prior written notice delivered to the Company within 120 days of the occurrence of one of the events set forth below. For purposes of this Amended Agreement, “Good Reason” shall mean, without the Executive’s written consent:

(i) any reduction in the Executive’s Base Salary;

(ii) the assignment to the Executive of any duties inconsistent with, or the reduction of powers or functions associated with, his positions, duties, responsibilities and status with the Company set forth in Section 3;

 

  

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(iii) the Company’s mandatory transfer of the Executive to another geographic location other than a location within 35 miles of Milwaukee, Wisconsin or to a location other than the Company’s principal executive offices, except for required travel on the Company’s business to an extent substantially consistent with the Executive’s business travel obligations as of the date hereof; or

(iv) any other material breach of this Amended Agreement by the Company.

 

An isolated, insubstantial and inadvertent action not taken in bad faith, and which is remedied by the Company within ten days after notice from the Executive, shall not be treated as Good Reason under this Amended Agreement. In the event of a termination of employment by the Executive for Good Reason during the Employment Period, the Executive shall be provided with the Termination Benefits set forth in Section 9(b) hereof.

In the event that the Executive shall in good faith give a Notice of Termination (as hereinafter defined) for Good Reason and it shall thereafter be determined that Good Reason did not exist, the employment of the Executive hereunder shall, at the Executive’s option, continue after such determination; provided, that the Executive continued his employment during the dispute concerning his alleged Good Reason pursuant to his option to do so as provided in Section 11 and provided further, that in no event shall such employment extend beyond the Employment Period. If the Executive does not choose to continue his employment hereunder after such determination, the employment of the Executive shall be deemed to have terminated at the date of giving such purported Notice of Termination by mutual consent of the Company and the Executive; provided, however, that if the Executive exercises his option to continue his employment during the period of dispute concerning his alleged Good Reason as provided in Section 11, the Executive shall be entitled to compensation and benefits during such continued employment in accordance with Section 5 of this Amended Agreement.

11. Notice of Termination; Date of Termination.

(a) Notice of Termination. Any termination of the Executive’s employment by the Company under Section 9 or by the Executive under Section 10 shall be communicated by written Notice of Termination to the other party hereto. For purposes of this Amended Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Amended Agreement relied upon and the date of the Executive’s termination and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated. In the event that one party notifies the other that a dispute exists concerning the termination of the Executive’s employment, the Executive’s employment under this Amended Agreement shall, at the Executive’s option, not be terminated until such dispute is finally resolved either by mutual written agreement of the parties or in accordance with Section 15, as the case may be; provided, however, that in no event shall such employment extend beyond the Employment Period.

(b) Date of Termination. The Executive’s “Date of Termination” shall mean: (i) in the event of his death, the date of death; (ii) in the event of his Disability, the Disability Effective Date; and (iii) in the event of any other termination of employment, the date specified in the Notice of Termination.

12. Non-exclusivity of Rights. Nothing in this Amended Agreement shall prevent or limit the Executive’s continuing or future participation in any plan, program, policy or practice provided by the Company for which the Executive may qualify, nor, subject to Section 24, shall anything in this Amended Agreement limit or otherwise affect such rights as the Executive may have under any contract or agreement with the Company. Accrued benefits and other amounts that the Executive is otherwise entitled to receive under any plan, policy, practice or program of, or any contract or agreement with, the Company on or after the Date of Termination shall be payable in accordance with such plan, policy, practice, program, contract or agreement, as the case may be, except as explicitly modified by this Amended Agreement.

13. Interest and Costs. In the event that any payments due to the Executive hereunder shall fail to be paid when due, such unpaid amounts shall bear interest at the rate of 8% per annum and if such unpaid amounts are collected by law or through an attorney-at-law, the Executive shall also be entitled to collect reasonable attorneys’ fees and all costs of collection. Within ten (10) days after the Executive’s written request therefor, the Company shall pay to the Executive, or such other person or entity as the Executive may designate in writing to the Company, such reasonable attorneys’ fees and costs of collection in advance of the final disposition or conclusion of any dispute, legal or arbitration proceeding with respect to such collection.

 

  

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14. Noncompetition; Nonsolicitation and Confidential Information.

(a) During the Employment Period, Executive shall not provide any assistance to any competitor of the Company. In addition, for a period of one year after the later of the Executive’s Date of Termination or the date Executive ceases to serve as Chairman of the Board (the “Noncompetition Period”), the Executive shall not, except as permitted by the Company’s prior written consent, engage in, be employed by, or in any way advise or act for, any business which is a competitor of the Company in any capacity that involves assisting the competitor with respect to competing against the Company in any market in which, at the beginning of the Noncompetition Period, the Company either is selling or marketing any of its products or is actively planning to begin selling or marketing any of its products. Notwithstanding the foregoing, this Section 14(a) shall not apply during the Noncompetition Period if the Executive’s employment is terminated without Cause or the Executive terminates his employment for Good Reason.

(b) During the Noncompetition Period, other than on behalf of the Company, the Executive shall not induce or solicit any employee of the Company to terminate his or her employment.

(c) The Executive shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to the Company and its respective businesses that the Executive obtains during the Executive’s employment by the Company and that is not public knowledge (other than as a result of the Executive’s violation of this Section 14(c) (“Confidential Information”)). For so long as any piece of Confidential Information is sensitive and/or of economic value to the Company, the Executive shall not communicate, divulge or disseminate any such piece of Confidential Information outside the Company, except with the prior written consent of the Company or as otherwise required by law or legal process.

(d) All computer software, business cards, telephone lists, customer lists, price lists, contract forms, catalogs, the Company books, records, files and know-how acquired while the Executive is an employee of the Company are acknowledged to be the property of the Company and shall not be duplicated, removed from the Company’s possession or premises or made use of other than in pursuit of the Company’s business or as may otherwise be required by law or any legal process, or as is necessary in connection with any adversarial proceeding against the Company and, upon termination of employment for any reason, the Executive shall deliver to the Company, without further demands, the originals and all copies thereof which are then in his possession or under his control.

(e) The provisions of Sections 14(a), (b), (c) and (d) shall remain in full force and effect until the expiration of the period specified herein notwithstanding the earlier termination of the Executive’s employment hereunder. In the event of a breach of the Executive’s covenants under this Section 14, it is understood and agreed that the Company shall be entitled to injunctive relief, as well as any other legal remedies. For purposes of this Section 14, the “Company” shall include all entities controlling, controlled by or under common control with the Company.

15. Resolution of Disputes. Any dispute arising out of this Amended Agreement shall, at the Executive’s option, be determined by arbitration under the rules of the American Arbitration Association then in effect, other than any requests for injunctive relief under Section 14(e), or by litigation. Whether the dispute is to be settled by arbitration or litigation, the venue for the arbitration or litigation shall be Milwaukee, Wisconsin or, if the Executive is no longer residing or working in Milwaukee, Wisconsin, such venue shall, at the Executive’s election, be the city in which the Executive resides. More specifically, if litigation is the method for settling any such dispute, venue for the litigation shall be in the Circuit Court of Milwaukee County or, if the Executive is no longer residing or working in Milwaukee, Wisconsin, such venue shall, at the Executive’s election, be the county court for the county in which the Executive resides. The parties consent to jurisdiction in the selected venue notwithstanding their residence or situs.

16. Payment Obligations Absolute. The Company’s obligation during and after the term of the Executive’s employment hereunder to pay the Executive the compensation and to make the arrangements provided herein shall be absolute and unconditional and shall not be affected by any circumstances, including, without limitation, any setoff, counterclaim, recoupment, defense or other right which the Company may have against him or anyone else, except as provided in Section 9(b)(iii). All amounts payable by the Company hereunder shall be paid without notice (except as provided in Section 11) or demand. The Company will not seek to recover all or any part of any such payment from the Executive or from whomsoever may be entitled thereto, for any reason whatsoever, except as provided in Section 9(b)(iii).

 

  

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17. Strict Compliance. The Executive’s or the Company’s failure to insist upon strict compliance with any provision of, or to assert any right under, this Amended Agreement (including, without limitation, the right of the Executive to terminate employment for Good Reason pursuant to Section 10(b)) shall not be deemed to be a waiver of such provision or right or of any other provision of or right under this Amended Agreement.

18. Successors; Binding Agreement.

(a) The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, by agreement in form and substance satisfactory to the Executive, to expressly assume and agree to perform this Amended Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain such agreement prior to the effectiveness of any such succession shall be a breach of this Amended Agreement. As used in this Amended Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which executes and delivers the agreement provided for in this Section 18 or which otherwise becomes bound by all the terms and provisions of this Amended Agreement by operation of law.

(b) This Amended Agreement and all rights of the Executive hereunder shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. Except as otherwise expressly provided in Sections 7 and 8 of this Amended Agreement, if the Executive should die while any amounts would still be payable to him hereunder if he had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Amended Agreement to the Executive’s devisee, legatee, or other designee or, if there be no such designee, to the Executive’s estate.

19. Notice. All notices, requests, demands and other communications required or permitted to be given by either party to the other party by this Amended Agreement (including, without limitation, any Notice of Termination of employment) shall be in writing and shall be deemed to have been duly given when delivered personally or received by certified or registered mail, return receipt requested, postage prepaid, at the address of the other party, as follows:

 

If to the Company, to:

Sensient Technologies Corporation

777 East Wisconsin Avenue

Milwaukee, Wisconsin 53202

Attention: Secretary

If to Executive, to the last address for the Executive in the Company’s records.

Either party hereto may change its address for purposes of this Section 19 by giving fifteen (15) days prior notice to the other party hereto.

20. Severability. If any term or provision of this Amended Agreement or the application hereof to any person or circumstance shall to any extent be invalid or unenforceable, the remainder of this Amended Agreement or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this Amended Agreement shall be valid and enforceable to the fullest extent permitted by law.

21. Headings. The headings in this Amended Agreement are inserted for convenience of reference only and shall not be a part of or control or affect the meaning of this Amended Agreement.

22. Governing Law. This Amended Agreement has been executed and delivered in the State of Wisconsin and shall in all respects be governed by, and construed and enforced in accordance with, the laws of the State of Wisconsin.

 

23. Withholding Matters. All payments to be made or benefits to be provided hereunder by the Company will be subject to required withholding of federal, state and local income and employment taxes and related reporting requirements.

 

  

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24.  Section 409A of the Code.  It is the intention of the parties that all payments and benefits under this Agreement be exempt from, or if not so exempt, comply with Section 409A of the Internal Revenue Code of 1986, as amended, and any guidance issued thereunder (the “Code”), and the Agreement shall be interpreted, operated and administered accordingly.  Notwithstanding anything in this Agreement to the contrary, if Executive is considered a “specified employee” or “key employee” of the Company and has experienced a “separation from service,” each within the meaning of Section 409A of the Code, no payments or benefits under this Agreement that are considered deferred compensation shall be made to Executive prior to the date that is six (6) months after the date of Executive’s “separation from service” (or, if earlier, the Executive’s date of death).

 

The Company shall indemnify the Executive if the Executive incurs additional tax under Section 409A of the Code as a result of a violation of Section 409A of the Code (each an “Indemnified Section 409A Violation”) that occurs as a result of (1) the Company’s clerical error (other than an error cause by erroneous information provided to the Company by the Executive), (2) the Company’s failure to administer this Agreement or any benefit plan or program in accordance with its written terms (such written terms, the “Plan Document”), or (3) the Company’s failure to maintain the Plan Documents in compliance with Section 409A of the Code; provided, that the indemnification set forth in clause (3) shall not be available to the Executive if (x) the Company has made a reasonable, good faith attempt to maintain the applicable Plan Document in compliance with Code Section 409A but has failed to do so or (y) the Company has maintained the applicable Plan Document in compliance with Section 409A of the Code but subsequent issuance by the Internal Revenue Service or the Department of the Treasury of interpretive authority results in the applicable Plan Document not (or no longer) complying with Section 409A of the Code (except that, if the Company is permitted by such authority or other authority to amend the Plan Document to bring the Plan Document into compliance with Section 409A of the Code and fails to do so, then such indemnification shall be provided).

 

(i)           In the event of an Indemnified Section 409A Violation, the Company shall reimburse the Executive for (1) the 20% additional income tax described in Section 409A(a)(1)(B)(i)(II) of the Code (to the extent that the Executive incurs the 20% additional income tax as a result of the Indemnified Section 409A Violation), and (2) any interest or penalty that is assessed with respect to the Executive’s failure to make a timely payment of the 20% additional income tax described in clause (1), provided that the Executive pays the 20% additional income tax promptly upon being notified that the tax is due (the amounts described in clause (1) and clause (2) are referred to collectively as the “Section 409A Tax”).

 

(ii)           In addition, in the event of an Indemnified Section 409A Violation, the Company shall make a payment (the “Section 409A Gross-Up Payment”) to the Executive such that the net amount the Executive retains, after paying any federal, state, or local income tax or FICA tax on the Section 409A Gross-Up Payment, shall be equal to the Section 409A Tax.  The Executive shall reasonably cooperate with measures identified by the Company that are intended to mitigate the Section 409A Tax to the extent that such measures do not materially reduce or delay the payments and benefits to the Executive hereunder.

 

25. Entire Agreement. This Amended Agreement supersedes any and all other oral or written agreements heretofore made relating to the subject matter hereof (including, without limitation, the Prior Agreement) other than the Change of Control Agreement, and constitutes the entire agreement of the parties relating to the subject matter hereof.

 

  

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IN WITNESS WHEREOF, the parties have executed this Amended Agreement as of the date first written above.

 

	  	
SENSIENT TECHNOLOGIES CORPORATION (“Company”)

	  	  	  
	  	
By

	
/s/ Stephen J. Rolfs

	  	
 

	
Stephen J. Rolfs

	  	
 

	
Vice President, Administration

	  	
 

	  
	  	
 

	
Attest:

	/s/ John L. Hammond

	
 

	
EXECUTIVE

	
 

	
 

	
 

	
/s/ Kenneth P. Manning

	
 

	
Kenneth P. Manning

 

 

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