Document:

EXHIBIT 10.1

 

AGREEMENT OF
SETTLEMENT OF CLASS ACTIONS

 

This Agreement of
Settlement of Class Actions (“Agreement”) is entered into between plaintiffs
Deanna O’Neill, Victoria Sordelet, and Frederick Trunik (“plaintiffs”),
individually and as class representatives on behalf of all members of the
classes in Deanna O’Neill, et al. v. Vicorp Restaurants, Inc., Los
Angeles County Superior Court Case No. BC 304 354 (the “O’Neill Action”) and Victoria
Sordelet, et al. v. Vicorp Restaurants Inc., Los Angeles County Superior
Court Case No. 315 905 (the “Sordelet Action”) (collectively, the “Class”), on
the one hand, and defendant Vicorp Restaurants, Inc. (“Vicorp”), on the other
hand.

 

I.

 

SETTLEMENT FUND

 

A.            Vicorp shall pay a maximum of Six Million Five Hundred Fifty
Thousand Dollars ($6,550,000) (the “Settlement Fund”) in settlement of the O’Neill
Action and the Sordelet Action.

 

B.            Within five (5) business days after the “Effective Date,”
as defined below, and as checks are presented for payment, Vicorp shall wire
transfer amounts payable from the Settlement Fund, less any advances made by
Vicorp pursuant to Section IX(A)(1), to Rust Consulting, Inc. (“Claims
Administrator”) as trustee for the interested parties.

 

C.            Payments to the Class shall be disbursed on a claims-made
basis and shall be allocated according to (1) workers’ compensation deductions
made on the bonus claim and/or (2) the number of weeks worked by each employee
over the entire number of weeks in the applicable class period.

 

 

II.

 

CERTIFICATION OF “THE
CLASS” FOR SETTLEMENT PURPOSES

ONLY, CLAIMS
SETTLED AND CLAIMS PERIODS COVERED

 

A.            This Agreement is contingent upon the approval and
certification by the Los Angeles County Superior Court (the “Court”), for
settlement purposes only, of the Class consisting of the following subclasses:

 

1.                                       All
persons who, at any time during the period October 16, 1999, to January 31,
2005, worked for Vicorp as hourly, non-exempt in-restaurant employees,
including of servers, hosts or hostesses, cashiers, cooks, bussers, supervisors
and/or dishwashers at any California Bakers Square restaurant and who were
allegedly deprived of meal periods (the “Hourly Meal Period Subclass”);

 

2.                                       All
persons who, at any time during the period May 10, 2001, to January 31, 2005,
worked for Vicorp Restaurants, Inc. as hourly, non-exempt in-restaurant
employees, including servers, hosts or hostesses, cashiers, cooks, bussers,
supervisors and/or dishwashers at any California Bakers Square restaurant and
who were allegedly deprived of rest periods (the “Hourly Rest Period Subclass”);

 

3.                                       All
restaurant managers and associate managers employed by Vicorp in California at
any time during the period October 16, 1999, to January 31, 2005, whose bonuses
were allegedly reduced due to store losses or operational expenses beyond their
control, including without limitation workers’ compensation expenses, workers’
compensation claims, cash

 

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shortages, merchandise shortages, tort claims by
non-employees, store remodeling, and other losses or expenses (“the Bonus
Subclass”); and

 

4.                                       All
restaurant general managers, associate managers, and assistant managers
employed by Vicorp in California at any time during the period May 10, 2001, to
January 31, 2005, who claim that their job status was misclassified as exempt
when, in fact, they were entitled to overtime and rest and meal periods that
otherwise should have been available to hourly non-exempt employees (the “Misclassification
Subclass”).

 

B.            Vicorp expressly reserves its right to continue to assert
that this case is not appropriate for certification as a class action if, for
any reason, this Agreement is not consummated.

 

III.

 

APPOINTMENT OF
CLASS COUNSEL

 

The Court shall appoint
Thomas A. Kearney, Esq., Paul Alvarez, Esq. and Kearney Alvarez LLP as Class
Counsel.

 

IV.

 

CLASS NOTICE AND
CLAIM FORM

 

A.            Class members may be members of one or all Subclasses,
and will be entitled to their share of the amount allocated to each applicable
Subclass if they submit a timely and valid claim form.

 

B.            Within ten (10) days of entry of the Order for
Preliminary Approval, Vicorp shall provide the Claims Administrator and Class
Counsel, in electronic form, a database that contains the last known name,
address, social security number, job code, and employment dates for all

 

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Class members, for notification and to distribute the Settlement
Fund.  Vicorp shall cooperate and provide
any additional information the Claims Administrator may reasonably request to
give notice and administer the Settlement Fund.

 

C.            Within twenty-five (25) days after entry of the Order for
Preliminary Approval, the Claims Administrator shall mail notice to the Class,
using the applicable notice(s) attached hereto as Exhibit “A” (“Notice”).

 

V.

 

SETTLEMENT
APPROVAL PROCEDURES

 

The Court, pursuant to
California Rule of Court 1859(c), must preliminarily approve the settlement
(the “Order for Preliminary Approval”), in substantially the form and content
of Exhibit “B” hereto, on or before March 14, 2005.

 

VI.

 

THE EFFECTIVE DATE

 

This Agreement will
become final and effective (the “Effective Date”) on the occurrence of all of
the following events:

 

A.            Entry of the Order for Preliminary Approval.

 

B.            Class Counsel filing, at or before the hearing for final
approval of the settlement, a declaration from the Claims Administrator
testifying that (1) Notice to the Class has been sent in accordance with the
Order for Preliminary Approval; (2) reporting on the number of returned initial
Notices; (3) reporting on additional efforts to trace undeliverable Notices;
and (4) providing the result of the follow-up.

 

C.            Entry of the Final Judgment and Order of Dismissal (“Judgment”)
attached hereto as Exhibit “C.”

 

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D.            The Judgment becomes final, which shall mean: (1) if a
timely notice of appeal is not filed, the expiration of the time for appeal
after service of notice of entry of judgment on the Class representative and
all Class members who filed objections and who did not opt-out; or (2) if a
timely notice of appeal is filed, the day after the Judgment is affirmed, or
the appeal or review is dismissed or denied, and the Judgment is no longer
subject to judicial review or other challenge.

 

VII.

 

EFFECT OF
NON-APPROVAL OR FAILURE OF THE EFFECTIVE DATE TO OCCUR

 

If the events specified
in Sections V and VI do not occur, this Agreement shall be void.  In that event, nothing in this Agreement
shall be construed as a determination, admission, or concession of any issue in
the litigation; the Settling Parties expressly reserve their rights with
respect to the prosecution and defense of the litigation as if this Agreement
never existed.

 

VIII.

 

ATTORNEYS’ FEES
AND REIMBURSEMENT OF COSTS AND EXPENSES

 

A.            Vicorp agrees that counsel for the Class are entitled to
an award of attorneys’ fees, costs, and expenses.  Vicorp acknowledges that plaintiffs and the
Class have a claim for attorneys’ fees, costs and expenses pursuant to California
Labor Code Sections 218.5 and 1194 and California Code of Civil Procedure
Sections 1021.5 and 1032.  However, the
claim for attorneys’ fees, costs, and expenses has been settled in this
Agreement.

 

B.            Vicorp agrees not to dispute that the Settlement Fund is
a “Common Fund” as defined in The Boeing
Company v. Van Gemert (1980) 444 U.S. 472, inasmuch as each member
of the Class will have an undisputed and mathematically ascertainable part of a
lump-sum judgment recovered on his or her behalf.  Vicorp understands that Class Counsel will
apply to

 

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the Court for an award of attorneys’ fees, costs, and expenses to be
scheduled for determination at the hearing for final approval of this
settlement.  Vicorp will not oppose Class
Counsel’s application for attorneys’ fees of up to and including thirty-three
and one-third percent (33.33%) of the Settlement Fund, or Two Million, One
Hundred Sixty-Six Thousand, Four Hundred and Fifty Dollars ($2,166,450) and for
reimbursement of costs up to Thirty-Six Thousand Dollars ($36,000).

 

C.            Class Counsel’s application for attorneys’ fees, costs,
and expenses is not part of this Agreement and is to be considered separately
from the Court’s consideration of the fairness, reasonableness, adequacy, and
good faith of the settlement.  Any
proceedings related to Class Counsel’s application for attorneys’ fees, costs,
and/or expenses shall not terminate or cancel the Agreement, or affect the
finality of the Judgment approving the Agreement and the settlement of the O’Neill
Action and the Sordelet Action.  Any
reduction by the Court of the attorneys’ fees, costs, and expenses sought by
Class Counsel will not serve to enlarge the Settlement Fund, but will simply
revert back to Vicorp.

 

D.            Within five (5) business days after the “Effective Date,”
Vicorp shall wire transfer to a bank account directed by Class Counsel all
attorneys’ fees, costs and expenses approved by the Court pursuant to this
Agreement.

 

IX.

 

PLAN OF ALLOCATION
AND DISTRIBUTION OF THE SETTLEMENT FUND

 

A.            The Settlement Fund shall be allocated as follows:

 

1.                                       The
costs and expenses of claims administration. 
Vicorp shall advance any costs of notice and administration reasonably
requested by the Claims Administrator. 
All such advances shall be deemed a deposit to the

 

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Settlement Fund. 
If the settlement is not consummated, Vicorp shall not be entitled to
reimbursement of advances from plaintiffs, the Class, or Class Counsel.

 

2.                                       Ten
Thousand Dollars ($10,000) each to Class representatives Deanna O’Neill,
Victoria Sordelet, and Frederick Trunik, as reasonable compensation in
recognition of their time and effort in initiating and prosecuting the case
against Vicorp, as may be approved by the Court.  The payment to each Class representative is
in addition to any amount each may receive as a member of the Class.

 

3.                                       Attorneys’
fees of one-third (33.33%) and costs and expenses of Class Counsel, as may be
approved by the Court.

 

4.                                       The
Net Distributable Amount, as explained in Section IX (B) below.

 

5.                                       Any
part of the Settlement Fund that remains unclaimed or returned twelve (12)
months after the date Notice is first mailed to the Class, shall be paid to
Vicorp.  Neither plaintiffs, the Class,
nor any government or public entity shall have any right to such unclaimed or
returned amounts under the unclaimed property laws of California or Colorado or
any other legal or equitable theory.

 

B.            Allocation of the Net Distributable Amount.

 

The Net Distributable
Amount shall be defined as the Settlement Fund, less the costs and expenses of
administration and any advances to the Claims Administrator, the separate
compensation of Class representatives, attorneys’ fees (33.33%), costs, and
expenses of Class Counsel, all as set forth in Section IX(A)(1)-(3), and all
employers payroll taxes attributable to

 

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the amounts claimed.  The Net
Distributable Amount shall be allocated and disbursed on a claims-made basis,
for all Allowed Class Member Claims (as defined in Section XI(B) below), to the
Class as follows:

 

1.                                       The
Hourly Meal Period Subclass.

 

a.                                       23%
of the Net Distributable Amount (the “Hourly Meal Period Subclass Payout”) will
be allocated to the Hourly Meal Period Subclass.

 

b.                                      Each
member of the Hourly Meal Period Subclass shall be eligible for that portion of
the Hourly Meal Period Subclass Payout calculated by the total number of weeks
worked by that member from October 16, 1999, to January 31, 2005, divided by
the total number of weeks worked by all members of the Hourly Meal Period
Subclass from October 16, 1999, to January 31, 2005 (before any opt-outs).  The resulting fraction shall then be
multiplied by the Hourly Meal Period Subclass Payout to determine the amount to
be paid to that person.

 

2.                                       The
Hourly Rest Period Subclass.

 

a.                                       7%
of the Net Distributable Amount (the “Hourly Rest Period Subclass Payout”) will
be allocated to the Hourly Rest Period Subclass.

 

b.                                      Each
member of the Hourly Rest Period Subclass shall be eligible for that portion of
the Hourly Rest Period Subclass Payout calculated by the total number of weeks
worked by that member

 

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from May 10, 2001, to January 31, 2005, divided by the
total number of weeks worked by all members of the Hourly Rest Period Subclass
from May 10, 2001, to January 31, 2005 (before any opt-outs).  The resulting fraction shall then be
multiplied by the Hourly Rest Period Subclass Payout to determine the amount to
be paid to that person.

 

3.                                       The
Bonus Subclass.

 

a.                                       13%
of the Net Distributable Amount (the “Bonus Subclass Payout”) will be allocated
to the Bonus Subclass.

 

b.                                      Each
member of the Bonus Subclass shall be eligible for that portion of the Bonus
Subclass Payout that is based on Vicorp’s recalculation of the bonus to which
the member would have been entitled, had workers’ compensation expenses
previously deducted in determining the member’s bonus from October 16, 1999, to
January 31, 2005, not been deducted. 
Vicorp’s recalculation will identify an outstanding bonus amount for
each member.  The member’s outstanding
bonus amount shall be divided by $553,000. 
The resulting percentage shall then be multiplied by the Bonus Subclass
Payout to determine the amount to be paid to that person.

 

4.                                       The
Misclassification Subclass:

 

a.                                       57%
of the Net Distributable Amount (the “Misclassification Subclass Payout”) will
be allocated to the Misclassification Subclass as follows: 1) 40% to the
restaurant general managers; 2)

 

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47% to the associate
managers; and 3) 13% to the assistant managers.

 

b.                                      Each
restaurant manager member of the Misclassification Subclass shall be eligible
for that portion of the Misclassification Subclass payout allocated to
restaurant managers calculated by the total number of weeks worked by that
member from May 10, 2001, to January 31, 2005, divided by the total number of
weeks worked by all restaurant managers from May 2001, to January 31, 2005
(before any opt-outs).  The resulting
fraction shall then be multiplied by the Misclassification Subclass Payout
allocated to the restaurant managers to determine the amount to be paid to that
person.

 

c.                                       Each
associate manager member of the Misclassification Subclass shall be eligible
for that portion of the Misclassification Subclass payout allocated to
associate managers calculated by the total number of weeks worked by that
member from May 10, 2001, to January 31, 2005, divided by the total number of
weeks worked by all associate managers from May 10, 2001, to January 31, 2005
(before any opt-outs).  The resulting
fraction shall then be multiplied by the Misclassification Subclass Payout
allocated to the associate managers to determine the amount to be paid to that
person.

 

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d.                                      Each
assistant manager member of the Misclassification Subclass shall be eligible
for that portion of the Misclassification Subclass payout allocated to
assistant managers calculated by the total number of weeks worked by that
member from May 10, 2001, to January 31, 2005, divided by the total number of
weeks worked by all assistant managers from May 10, 2001, to January 31, 2005
(before any opt-outs).  The resulting
fraction shall then be multiplied by the Misclassification Subclass Payout
allocated to the assistant managers to determine the amount to be paid to that
person.

 

C.            Time for Payment by Claims Administrator.

 

1.                                       The
Claims Administrator shall make the settlement payments described in Paragraphs
IX(A)(l)-(4) as soon as practicable after the Effective Date and as checks are
presented for payment or other demand for payment properly is made, but no
later than five (5) business days after presentment or proper demand.

 

2.                                       The
Claims Administrator shall remit all payroll taxes deducted from each Allowed
and paid Class Member Claim, along with appropriate documentation, to the
applicable taxing agencies in accordance with applicable laws and regulations.

 

3.                                       The
Claims Administrator shall make the payment provided for in Section IX(A)(5) as
soon as reasonably practicable following the passage of twelve (12) months from
the date Notice is first mailed to the Class.

 

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X.

 

REQUEST FOR
EXCLUSION

 

A.            No person who has timely elected to be excluded from the
Class, as provided for in the Notice, shall share in the distribution of the
Settlement Fund.

 

B.            No later than fourteen (14) days prior to the hearing for
final approval as set forth in the Notice, the Claims Administrator shall
provide Class Counsel and Vicorp’s counsel with a declaration identifying those
persons who have timely elected to be excluded from the Class.

 

XI.

 

PROCESSING AND
PAYMENT OF ALLOWED CLASS MEMBER CLAIMS

 

A.            The Notice sent to each Class member shall be accompanied
by a separate Claim Form and Request for Information (“Claim Form”) attached
hereto as Exhibit “D”.

 

B.            Each Class Member who has timely submitted a Claim Form
and who has not timely requested to be excluded from the Class, shall have an
allowed Class member claim, in such amount as the Claims Administrator shall
calculate (the “Allowed Class Member Claim”).

 

C.            The check in payment of each Allowed Class Member Claim
shall contain the following endorsement which will document the release by
every Class member of all Released Claims against Vicorp.

 

“Negotiation of this
check shall confirm that the payee has released Vicorp according to the Release
contained in the Agreement of Settlement of Class Actions made as of March 3,
2005.”

 

D.            Counsel shall work with the Claims Administrator to
resolve any questions concerning the weeks worked by any Class member and the
amount of his or her Allowed Class Member Claim.

 

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XII.

 

ACCOUNTING AND
FINAL REPORT TO THE COURT

 

A.            Three (3) months after the Effective Date, the Claims
Administrator shall provide Class Settlement counsel and Vicorp’s counsel with
an accounting in an Interim Report.

 

B.            Fifteen (15) months after Notice is first mailed to the
Class, the Claims Administrator shall make a Final Accounting and Report to
Class Counsel and Vicorp’s counsel.

 

XIII.

 

GENERAL RELEASE OF
VICORP

 

A.            Hourly Meal Period Subclass.

 

In exchange for the
consideration recited in this Agreement, all members of the Hourly Meal Period
Subclass (excluding any who may have opted out), on behalf of themselves and on
behalf of all who claim by or through them or in their stead, do hereby and
forever release, acquit, discharge and covenant not to sue Vicorp (which is
defined to include its past, present and future attorneys, divisions,
affiliates, predecessors, successors, owners, shareholders, officers,
directors, employees, agents, trustees, representatives, administrators, fiduciaries,
assigns, subrogees, executors, partners, parents, subsidiaries, and privies)
for any and all actions, causes of action, suits, claims, liens, demands,
damages, controversies and liabilities of any kind whatsoever (based upon any
legal or equitable theory, whether contractual, common law, statutory, federal,
state or otherwise) whether known or unknown, suspected, anticipated or
unanticipated, which the Hourly Meal Period Subclass has, ever had, or
hereafter may claim to have, against Vicorp which were alleged, or which arise
out of or relate to the claims, actions or causes of action, or facts, which
were alleged, or might have been alleged, by the Hourly Meal Period Subclass in
the O’Neill Action due to alleged failure to provide meal periods between

 

13

 

October 16, 1999, and January 31, 2005. 
Such released claims include without limitation, for the specified time
period, all claims for violation of any state or federal statute, regulation,
rule or California Industrial Welfare Commission Wage Order concerning failure
to provide meal periods and all claims for unpaid wages, damages, penalties,
and payments of any other amounts due to such failure (including but not
limited to California Labor Code Sections 201, 202, 204, 226, 512, 1174, and
1194, California Industrial Welfare Commission Wage Order 5-1989, 5-1998,
5-2000, and 5-2001, as amended, and the Fair Labor Standards Act; unfair
business practices under California Business and Professions Code Section
17200, et seq.; claims for overtime relating to failure to provide meal
periods; penalties under California Labor Code Sections 226.7 and 2699, and
California Industrial Welfare Commission Wage Order 5-1989, 5-1998, 5-2000, and
5-2001, as amended; waiting time penalties under California Labor Code Section
203; attorneys’ fees, costs, and expenses, and interest under California Labor
Code Sections 218.5, 218.6, 1194, California Code of Civil Procedure Sections
1021.5 and 1032, and California Civil Code Sections 3287 and 3289; claims for
punitive or exemplary damages; and all other claims for damages, penalties,
restitution, attorneys’ fees, costs, expenses and interest relating in any way
to meal period violations).  This release
does not cover claims after January 31, 2005.

 

B.            Hourly Rest Period Subclass.

 

In exchange for the
consideration recited in this Agreement, all members of the Hourly Rest Period
Subclass (excluding any who may have opted out), on behalf of themselves and on
behalf of all who claim by or through them or in their stead, do hereby and
forever release, acquit, discharge and covenant not to sue Vicorp (which is
defined to include its past, present and future attorneys, divisions,
affiliates, predecessors, successors, owners, shareholders,

 

14

 

officers, directors, employees, agents, trustees, representatives,
administrators, fiduciaries, assigns, subrogees, executors, partners, parents,
subsidiaries, and privies) for any and all actions, causes of action, suits,
claims, liens, demands, damages, controversies and liabilities of any kind
whatsoever (based upon any legal or equitable theory, whether contractual,
common law, statutory, federal, state or otherwise) whether known or unknown,
suspected, anticipated or unanticipated, which the Hourly Rest Period Subclass
has, ever had, or hereafter may claim to have, against Vicorp which were
alleged, or which arise out of or relate to the claims, actions or causes of
action, or facts, which were alleged, or might have been alleged, by the Hourly
Rest Period Subclass in the O’Neill Action due to alleged failure to provide
rest periods between May 10, 2001, and January 31, 2005.  Such released claims include without
limitation, for the specified time period, all claims for violation of any
state or federal statute, regulation, rule or California Industrial Welfare
Commission Wage Order concerning failure to provide rest periods and all claims
for unpaid wages, damages, penalties, and payments of any other amounts due to
such failure (including but not limited to California Labor Code Sections 201,
202, 204, 226, 512, 1174, and 1194, California Industrial Welfare Commission
Wage Order 5-1989, 5-1998, 5-2000, and 5-2001, as amended, and the Fair Labor
Standards Act; unfair business practices under California Business and
Professions Code Section 17200, et seq.; claims for overtime relating to
failure to provide rest periods; penalties under California Labor Code Sections
226.7 and 2699, and California Industrial Welfare Commission Wage Order 5-1989,
5-1998, 5-2000, and 5-2001, as amended; waiting time penalties under California
Labor Code Section 203; attorneys’ fees, costs and interest under California
Labor Code Sections 218.5, 218.6, 1194, California Code of Civil Procedure
Sections 1021.5 and 1032, and California Civil Code Sections 3287 and 3289;
claims for punitive or exemplary damages; and all other claims for damages,
penalties,

 

15

 

restitution, attorneys’ fees, costs, expenses and interest relating in
any way to rest period violations).  This
release does not cover claims after January 31, 2005.

 

C.            Bonus Subclass.

 

In exchange for the
consideration recited in this Agreement, all members of the Bonus Subclass
(excluding any who may have opted out), on behalf of themselves and on behalf
of all who claim by or through them or in their stead, do hereby and forever
release, acquit, discharge and covenant not to sue Vicorp (which is defined to
include its past, present and future attorneys, divisions, affiliates,
predecessors, successors, owners, shareholders, officers, directors, employees,
agents, trustees, representatives, administrators, fiduciaries, assigns,
subrogees, executors, partners, parents, subsidiaries, and privies) for any and
all actions, causes of action, suits, claims, liens, demands, damages,
controversies and liabilities of any kind whatsoever (based upon any legal or
equitable theory, whether contractual, common law, statutory, federal, state or
otherwise) whether known or unknown, suspected, anticipated or unanticipated,
which the Bonus Subclass has, ever had, or hereafter may claim to have, against
Vicorp which were alleged, or which arise out of or relate to the claims,
actions or causes of action, or facts, which were alleged, or might have been
alleged, by the Bonus Subclass in the O’Neill Action due to alleged reductions
in or deductions from bonuses due to store losses or operational expenses
beyond their control between October 16, 1999, and January 31, 2005, including
without limitation workers’ compensation expenses, workers’ compensation
claims, cash shortages, merchandise shortages, tort claims by non-employees,
store remodeling, and losses caused by negligence.  Such released claims include without
limitation, for the specified time period, all claims for violation of any
state or federal statute, regulation, rule or California Industrial Welfare
Commission Wage Order concerning reductions in or deductions from bonuses for

 

16

 

workers’ compensation expenses and all other losses and expenses beyond
the claimant’s control, and all claims for unpaid wages, damages, penalties,
and payments of any other amounts due to such reductions or deductions
(including but not limited to California Labor Code Sections 201, 202, 204,
226, 1174, 1194, and 3751, California Industrial Welfare Commission Wage Order
5-1989, 5-1998, 5-2000, and 5-2001, as amended, and the Fair Labor Standards
Act; unfair business practices under California Business and Professions Code
Section 17200, et seq.; penalties under California Labor Code Sections 2699 and
California Industrial Welfare Commission Wage Order 5-1989, 5-1998, 5-2000, and
5-2001, as amended; waiting time penalties under California Labor Code Section
203; attorneys’ fees, costs, expenses, and interest under California Labor Code
Sections 218.5, 218.6, 1194, California Code of Civil Procedure Sections 1021.5
and 1032, and California Civil Code Sections 3287 and 3289; claims for punitive
or exemplary damages; and all other claims for damages, penalties, restitution,
attorneys’ fees, costs, expenses and interest relating in any way to reductions
in or deductions from bonuses for workers’ compensation expenses and all other
losses and expenses beyond the claimant’s control).  This release does not cover claims after
January 31, 2005.

 

D.            Misclassification Subclass.

 

In exchange for the
consideration recited in this Agreement, all members of the Misclassification
Subclass (excluding any who may have opted out), on behalf of themselves and on
behalf of all who claim by or through them or in their stead, do hereby and
forever release, acquit, discharge and covenant not to sue Vicorp (which is
defined to include its past, present and future attorneys, divisions,
affiliates, predecessors, successors, owners, shareholders, officers,
directors, employees, agents, trustees, representatives, administrators,
fiduciaries, assigns, subrogees, executors, partners, parents, subsidiaries,
and privies) for any and all actions,

 

17

 

causes of action, suits, claims, liens, demands, damages, controversies
and liabilities of any kind whatsoever (based upon any legal or equitable theory,
whether contractual, common law, statutory, federal, state or otherwise)
whether known or unknown, suspected, anticipated or unanticipated, which the
Misclassification Subclass has, ever had, or hereafter may claim to have,
against Vicorp which were alleged, or which arise out of or relate to the
claims, actions or causes of action, or facts, which were alleged, or might
have been alleged, by the Misclassification Subclass in the Sordelet Action due
to alleged misclassification of their job status as exempt when, in fact, they
were entitled to overtime, and meal periods and rest periods, that otherwise
should have been available to hourly non-exempt employees, between May 10,
2001, and January 31, 2005.  Such released
claims include without limitation, for the specified time period, all claims
for violation of any state or federal statute, regulation, rule or California
Industrial Welfare Commission Wage Order concerning failure to pay overtime,
and failure to provide meal periods and rest periods, and all claims for unpaid
wages, damages, penalties, and payments of any other amounts due to such
failures (including but not limited to California Labor Code Sections 201, 202,
204, 226, 512, 1174, and 1194, California Industrial Welfare Commission Wage Order
5-1989, 5-1998, 5-2000, and 5-2001, as amended, and the Fair Labor Standards
Act; unfair business practices under California Business and Professions Code
Section 17200, et seq.; penalties under California Labor Code Sections 226.7
and 2699, and California Industrial Welfare Commission Wage Order 5-1989,
5-1998, 5-2000, and 5-2001, as amended; waiting time penalties under California
Labor Code Section 203; attorneys’ fees, costs, expenses and interest under
California Labor Code Sections 218.5, 218.6, 1194, California Code of Civil
Procedure Sections 1021.5 and 1032, and California Civil Code Sections 3287 and
3289; claims for punitive or exemplary damages; and all other claims for
damages, penalties, restitution,

 

18

 

attorneys’ fees, costs, expenses and interest relating in any way to
overtime, meal period, and rest period violations).  This release does not cover claims after
January 31, 2005.

 

E.             Waiver of California Civil Code Section 1542.

 

All members of the Class
(excluding any who may have opted out) expressly waive any rights or benefits
available to them under the provisions of section 1542 of the California Civil
Code, which provides as follows:

 

“A general release does
not extend to claims which the creditor does not know or suspect to exist in
his favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor.”

 

All members of the Class
understand fully the statutory language of Civil Code Section 1542, and with
this understanding, nevertheless elect to, and do, assume all risks for claims
that have arisen or that may arise in the future, whether known or unknown,
from the subject of this release, and specifically waive all rights they may
have under California Civil Code Section 1542. 
Plaintiffs and the Class fully understand that if the facts relating in
any manner to this release and dismissal are found hereafter to be other than
or different from the facts now believed to be true, they expressly accept and
assume the risk and agree that this Agreement and the release of claims
contained herein shall remain effective.

 

XIV.

 

ADDITIONAL TERMS
AND CONDITIONS

 

A.            Settlement the Result of Arms-Length Bargaining.

 

The terms of settlement have
resulted from arms-length negotiations over more than six weeks, including a
Mediation before the Honorable Edward Infante (Magistrate Judge, Retired)

 

19

 

on October 6, 2004, culminating in an agreement in principle on the
major points of the settlement on November 19, 2004.

 

B.            Notices.

 

All notices, requests,
demands and other communications required or permitted to be given pursuant to
this Agreement shall be in writing and shall be provided by appropriate method
such as personal delivery, telecopy, overnight delivery, or First Class U.S.
Mail, depending on the urgency, to:

 

	
  TO THE CLASS:

  	
   

  	
  TO VICORP RESTAURANTS,
  INC.:

  
	
   

  	
   

  	
   

  
	
  Thomas A. Kearney, Esq.

  	
   

  	
  Mark Riera, Esq.

  
	
  Paul Alvarez, Esq.

  	
   

  	
  Sheppard, Mullin, Richter
  & Hampton LLP

  
	
  633 W. 5th Street, 28th
  floor

  	
   

  	
  333 So. Hope St., 48th
  Floor

  
	
  Los Angeles, CA  90071-3125

  	
   

  	
  Los Angeles, CA  90071-1448

  
	
  Telephone:  (213) 473-1900

  	
   

  	
  Telephone:  (213)617-4214

  
	
  Facsimile:  (213) 473-1919

  	
   

  	
  Facsimile:  (213)620-1398

  

 

C.            No Admission of Liability.

 

The parties agree that
the lawsuit was filed, prosecuted and resolved in good faith following
substantial formal and informal discovery, motion practice, and arms-length
bargaining, and is in the best interest of Plaintiffs and the Class
members.  Nothing herein shall constitute
any admission of wrongdoing or liability by Vicorp.  Vicorp agrees that the Settlement Fund and
the other terms of the Agreement reflect a good faith settlement of the claims
asserted in this lawsuit, and were reached voluntarily after consultation with
experienced legal counsel.  The Agreement
and the settlement and all acts performed or documents executed pursuant to or
in furtherance of the Agreement or the settlement: (1) are not and shall not be
deemed to be and may not be used as an admission of, or evidence of any
wrongdoing or liability on the part of Vicorp; and (ii) are not and shall not
be deemed to be and may not be used as an admission of, or evidence of any
fault or omission of Vicorp in any civil, criminal or administrative proceeding
in

 

20

 

any court, administrative agency or other tribunal.  However, the Agreement may be used in such
proceedings as may be necessary to conclude the settlement or to enforce the
Agreement or the Judgment, and Vicorp may file the Agreement and/or the
Judgment in any action that may be brought against it to support a defense or
counterclaim based on principles of res judicata, collateral estoppel, release,
good faith settlement, judgment bar or reduction or any other theory of claim
preclusion or issue preclusion or similar defense or counterclaim.  Vicorp has denied and continues to deny each
and all of the alleged claims.  The
settlement is a compromise and shall not be construed as an admission of
liability at any time or for any purpose, under any circumstances, by the
parties to this Agreement.  This
Agreement and the settlement shall not be used to suggest an admission of liability
in any dispute between the parties that may now exist or that may arise in the
future with respect to any person or entity. 
Neither this Agreement nor anything included herein, nor any part of the
negotiations in connection herewith, shall constitute evidence with respect to
any issue or dispute.

 

D.            Modification by Writing Only.

 

This Agreement, and its
terms, and Exhibits, may be modified or amended only in a writing signed by all
counsel of record for the parties that will not become effective unless and
until approved by the Court, or otherwise ordered by the Court.

 

E.             Representations of Counsel.

 

1.                                  Plaintiffs
and their counsel represent that, to the best of their knowledge, there is no
other litigation pending in any other court or in any other jurisdiction
raising any of the claims asserted by plaintiffs in the within captioned
matter.

 

21

 

2.                                  Plaintiffs
have expressly authorized their counsel to take all appropriate action required
or permitted to be taken pursuant to the Agreement to effectuate its terms.

 

3.                                  Each
attorney executing the Agreement or any of its Exhibits on behalf of any party
hereto hereby warrants that they have full authority to do so.

 

F.             Further Cooperation.

 

The parties and their
respective counsel of record shall proceed diligently to prepare and execute
all documents, to seek the necessary Court approvals, and to do all other
things reasonably necessary or convenient to conclude the settlement as
expeditiously as possible.

 

G.            Construction and Interpretation.

 

This Agreement and the
Exhibits “A” through “D” (the Notice, [Proposed] Order for Preliminary
Approval, [Proposed] Final Judgment and Order of Dismissal and Claim Form and
Request for Information attached hereto, constitute the entire agreement among
the parties hereto and no representations, warranties or inducements have been
made to any party concerning the Agreement or its Exhibits other than the
representations, warranties and covenants contained and memorialized in such
documents.  The parties explicitly
recognize California Civil Code Section 1625 and California Code of Civil
Procedure Section 1856(a), which provide that a written agreement is to be
construed according to its terms and may not be varied or contradicted by
extrinsic evidence.  This Agreement and
all other documents shall be construed each as a whole, and with reference to
one another according to their fair meaning and intent, and not strictly for or
against any party, regardless of who drafted or who was principally responsible
for drafting any document or part thereof.

 

22

 

H.            Governing Law.

 

This Agreement and the
Exhibits hereto shall be deemed to have been negotiated, executed and
delivered, and to be wholly performed, in the State of California, and the
rights and obligations of the parties to the Agreement and to the Exhibits
shall be construed and enforced in accordance with, and governed by, the
internal, substantive and procedural laws of the State of California without
giving effect to that State’s choice of law principles.

 

I.              Counterparts.

 

The Agreement may be
executed in one or more telecopied counterparts which may be filed with the
Court.  All executed counterparts and
each of them shall be deemed to be one and the same instrument.  A complete set of original executed
counterparts shall be filed with the Court, when available.

 

J.             Binding Effect.

 

This Agreement is binding
upon and shall inure to the benefit of the parties to the settlement, and their
respective attorneys, and past, present and future subsidiaries, divisions,
predecessors, successors, shareholders, officers, directors, employees, agents,
trustee, representatives, administrators, fiduciaries, assigns, subrogees,
executors, partners, parents, and privies. 
Without limiting the foregoing, this Agreement shall be binding upon the
spouse or domestic partner, children, heirs, assigns, successors and offspring
of all members of the Class.

 

K.            Attorneys’ Fees and Costs and Expenses.

 

Except as otherwise
specifically provided for herein, each party shall bear its own attorneys’
fees, costs and expenses, taxable or otherwise, incurred by them or arising out
of this litigation and shall not seek reimbursement thereof from any other
party to this Agreement.

 

23

 

L.             No Retaliation.

 

Vicorp shall not take any
adverse action against any Class member because of the existence, and
participation in the lawsuit, including because any Class member chooses to
take the benefit of the settlement, requests to be excluded from the Class, or
objects to the settlement.

 

M.           Continuing Jurisdiction.

 

The Court shall have
continuing jurisdiction to construe, interpret and enforce this Agreement and
the settlement, to supervise notices sent, the administration and distribution
of the settlement and the Settlement Fund, and to hear and adjudicate any
dispute or litigation arising from the settlement,

 

24

 

	
  APPROVED AS TO FORM:

  	
   

  	
  Sheppard, Mullin,
  Richter & Hampton LLP

  
	
   

  	
   

  	
   

  	
   

  
	
  Kearney Alvarez LLP

  	
   

  	
  By:

  	
  /s/
  Mark Riera

  
	
  Thomas A. Kearney, Esq.

  	
   

  	
   

  	
  Mark
  Riera

  
	
  Paul Alvarez, Esq.

  	
   

  	
   

  	
  Attorneys
  for Vicorp Restaurants, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Thomas A. Kearney

  	
   

  	
   

  	
   

  
	
  Class Counsel

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AGREED AS OF February
  28, 2005

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Vicorp Restaurants,
  Inc.

  
	
  AGREED AS OF February
  28, 2005

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Deanna O’Neill

  	
   

  	
  By:

  	
  /s/
  Debra Koenig

  
	
  Individually and on
  behalf of the Class 

  	
   

  	
   

  	
  Its
  Chief Executive Officer

  
	
  Deanna O’Neill

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Victoria E. Sordelet

  	
   

  	
   

  	
   

  
	
  Individually and on
  behalf of the Class

  	
   

  	
   

  	
   

  
	
  Victoria E. Sordelet

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Frederick Trunik

  	
   

  	
   

  	
   

  
	
  Individually and on
  behalf of the Class

  Frederick Trunik

  	
   

  	
   

  	
   

  

 

25Exhibit 10.1

 

SIXTH AMENDMENT TO
FIFTH AMENDED

AND RESTATED LOAN
AGREEMENT

 

This Sixth Amendment to Fifth Amended and Restated
Loan Agreement, dated as of June 17, 2005, by and among The J. Jill Group,
Inc., a Delaware corporation (“BORROWER”) on the one hand, and Citizens Bank of
Massachusetts, HSBC Bank USA, National Association, and TD Banknorth, N.A.,
formerly known as Banknorth, N.A. (collectively, “LENDERS”) and Citizens Bank
of Massachusetts as agent (“AGENT”) for the LENDERS, on the other hand.

 

WITNESSETH:

 

WHEREAS, BORROWER, LENDERS and AGENT are parties to
that certain Fifth Amended and Restated Loan Agreement dated as of June 29,
2001, as amended by First Amendment thereto dated as of August 28, 2001; by
Second Amendment thereto dated as of July 25, 2002; by Third Amendment thereto
dated as of June 26, 2003; by Fourth Amendment thereto dated as of September
30, 2004; and by Fifth Amendment thereto dated December 27, 2004 (collectively,
the “LOAN AGREEMENT”); and

 

WHEREAS, BORROWER, LENDERS and AGENT wish to amend the
LOAN AGREEMENT as more particularly hereafter set forth.  Capitalized terms used herein without
definition shall have the meanings ascribed to them in the LOAN AGREEMENT.

 

NOW, THEREFORE, in consideration of the covenants and
agreements herein contained, the parties hereby agree that the LOAN AGREEMENT
is hereby amended as follows:

 

Section 9.13 of the LOAN AGREEMENT is hereby deleted
in its entirety and the following is substituted therefor:

 

“Section 9.13  The
BORROWER and its SPECIAL SUBSIDIARIES on a consolidated basis will not permit
DEBT SERVICE COVERAGE to be less than the following ratios for the following
periods: (i) as of June 25, 2005 for the twelve (12) month period ending on or
about June 25, 2005: 1.35 to 1; as of September 24, 2005 for the twelve (12)
month period ending on or about September 24, 2005: 1.35 to 1; as of December
31, 2005 for the twelve (12) month period ending on or about December 31, 2005,
and as of each fiscal quarter thereafter for the twelve (12) month period
ending on each such fiscal quarter thereafter: 1.50 to 1.”

 

Except as hereby amended,
the LOAN AGREEMENT is hereby ratified, confirmed and republished.

 

 

IN WITNESS WHEREOF, the parties hereto have set their
hands and seals as of the date first above written.

 

	
  CITIZENS BANK OF
  MASSACHUSETTS

  	
   

  	
  THE J. JILL GROUP, INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Lori B. Leeth

  	
   

  	
  By:

  	
    /s/ Linda L.
  Trudel

  
	
   

  	
  Lori B. Leeth, Senior
  Vice President

  	
   

  	
  Name:

  	
    Linda L.
  Trudel

  
	
   

  	
   

  	
  Title:

  	
  VP / Corporate Controller

  
	
   

  	
   

  	
   

  	
   

  
	
  HSBC BANK USA, NATIONAL
  ASSOCIATION

  	
   

  	
  TD BANKNORTH, N.A.,
  formerly known as

  
	
   

  	
   

  	
  BANKNORTH, N.A.

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ KerryAnne O’Callaghan

  	
   

  	
  By:

  	
  /s/ Linda A. Moulton

  
	
   

  	
  KerryAnne O’Callaghan,
  Asst. Vice President

  	
   

  	
   

  	
  Linda A. Moulton,
  Senior Vice President

  
	
   

  	
   

  	
   

  	
   

  
									

 

2

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