Document:

Exhibit 10.28

 

EXECUTIVE EMPLOYMENT
AGREEMENT

 

THIS EXECUTIVE EMPLOYMENT AGREEMENT (this
“Agreement”) is made this 17th day of June, 2003, between Todhunter
International, Inc., a Delaware corporation (“Employer”), and Ezra Shashoua
(“Executive”).

 

The parties hereto, in consideration of the mutual
covenants contained herein, agree upon the following terms of employment of
Executive by Employer:

 

1.             Employment and
Term.  Subject to the terms and
conditions herein, Employer hereby employs Executive and Executive hereby
accepts employment for a term commencing on a date to be confirmed in a written
notice from Employer to Employee and ending at the close of business on
June 30, 2008 (the “Employment Period”), unless sooner terminated as
hereinafter provided.  The Employment
Period shall continue automatically for additional periods of one (1) year each
under the same terms and conditions unless either party shall have given
written notice of termination at least ninety (90) days before the end of the
then current term.  All references
herein to the Employment Period shall refer to both the initial Employment
Period and any such successive Employment Periods.

 

2.             Duties.  Executive shall serve as Executive Vice
President and Chief Financial Officer of Employer.  Executive shall perform the duties generally of a Chief Financial
Officer for Employer and shall have such specific responsibilities, duties and
authorities as shall from time to time be assigned by the Chief Executive
Officer or the Board of Directors of Employer (“Board of Directors”).   Executive shall devote substantially all of
his working time and efforts to the business and affairs of Employer and its
subsidiaries.  Executive shall not be
required to relocate his office or residence outside of Palm Beach or Broward
County, Florida.

 

3.             Compensation.

 

A.            Salary.  For all duties to be performed
by Executive in any capacity hereunder, Executive shall be paid a base salary
at an annual rate, determined by the Board of Directors, of not less than
$275,000 per year (the “Base Salary”) payable monthly or in such more frequent
installments as Employer customarily pays its other executives.  The Board of Directors may authorize upward
compensation adjustments by way of salary, bonus or otherwise, as it deems appropriate
during the Employment Period or any extension thereof.  The Base Salary as amended and determined
herein from time to time shall constitute “Base Salary” for purposes of this
Agreement.

 

B.            Bonus.  In addition to the Base Salary, Employer
shall pay Executive, within sixty (60) days after the end of each fiscal year
(including any partial fiscal year) of Employer which occurs during the
Employment Period, a cash bonus (the “Base Bonus”) in an amount determined by
the Board of Directors but in no event less than $68,750 per year.  The amount of the bonus may exceed such
amount to the extent earned in accordance with performance targets,
measurements and such other criteria as shall be established for such fiscal
year by the Board of Directors.  The Base Bonus as amended and determined
herein from time to time shall constitute “Base Bonus” for purposes of this
Agreement.  If this Agreement is
terminated prior to the end of a fiscal year for any reason, except as set
forth in 4(C) or 4(E)(4), the amount of bonus shall be prorated for the number
of days elapsed in such fiscal year prior to the date of termination.

 

 

C.            Vacation.  Executive shall be entitled each year to a
reasonable period of paid vacation.

 

D.            Fringe Benefits.  Executive shall be entitled to participate
in or receive benefits under any employee benefit plan, program or arrangement
made available by Employer or its subsidiaries in the future to its executives
and key management employees, subject to and on a basis consistent with the terms,
conditions and overall administration of such plans and arrangements.  If and to the extent that any benefit is not
or cannot be paid or provided under any plan, program, or arrangement of
Employer, then Employer will itself pay or provide for the payment to Executive
and Executive’s dependents and beneficiaries, of such benefits along with, in
the case of any benefit described in this Section 3(D) which is subject to
tax because it is not or cannot be paid or provided under any such plan, program
or arrangement of Employer, an additional amount such that after payment by
Executive and Executive’s dependents or beneficiaries, as the case may be, of
all taxes so imposed, the recipient retains an amount equal to such taxes.  Notwithstanding the foregoing, and subject
to Section 4(G) and 5(B) hereof, for purposes of determining the period of
continuation coverage to which Executive or any of Executive’s dependents is
entitled to pursuant to Section 4980B of the Internal Revenue Code of
1986, as amended, under Employer’s medical, dental, and other group health
plans, or successor plans, Executive’s “qualifying event” shall be his Date of
Termination and Executive shall be considered to have remained actively
employed on a full-time basis through that date.

 

E.             Expenses.  It is understood that Executive will from
time to time incur reasonable expenses in conjunction with his employment.  Employer will promptly reimburse him for any
such expenses of which he shall present a signed itemized written account
setting forth the amount and nature of each such expenditure, and in addition,
with respect to travel or entertainment, the business purpose, the nature of
discussions and other person or persons involved and such other information as
Employer may reasonably require; provided that such expenses are incurred and
accounted for in accordance with such other policies and procedures then
established by Employer.

 

F.             D&O Coverage.  If immediately prior to Executive’s Date of
Termination Executive was covered as an insured under Employer’s D&O
Insurance, Employer will be obligated to continue Executive’s coverage under
Employer’s D&O Insurance or provide Executive with similar coverage, in
either case, on substantially the same terms and conditions until the third
anniversary of the date of Executive’s Date of Termination.

 

4.             Termination.  Unless otherwise agreed to in writing by
Employer and Executive, Executive’s employment hereunder may be terminated
under the following circumstances, in addition to terminations pursuant to
Section 5 hereof:

 

A.            Death.  Executive’s death.

 

B.            Disability.  If, as a result of Executive’s incapacity
due to physical or mental illness (such incapacity being determined by the
Board of Directors in its sole reasonable discretion), Executive shall have
been absent from his full-time duties as described hereunder for the entire
period of six (6) consecutive months, Employer may terminate Executive’s
employment hereunder.

 

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C.            Cause.

 

i.              Employer may
terminate Executive’s employment hereunder for Cause.  For purposes of this Agreement, “Cause” shall mean that (a)
Executive is convicted of a felony which, in the sole determination of the
Board of Directors, would have a material adverse effect on Executive’s ability
to perform his duties hereunder or on the business or reputation of Employer;
(b) Executive has exhibited gross misconduct resulting in material harm to
Employer, its business or reputation; (c) Executive has willfully misappropriated
Employer assets or has otherwise willfully defrauded Employer, including
without limitation by fraud, theft, embezzlement, or breach of a fiduciary duty
involving personal profit; (d) Executive has intentionally failed to perform
his duties hereunder; or (e) Executive has breached any provision of this
Agreement.  For the purposes of this
Section 4(C)(i), no act or failure to act on Executive’s part shall be
considered “willful” unless done, or omitted to be done, by him not in good
faith and without reasonable belief that his action or omission was in the best
interests of Employer.

 

ii.             Notwithstanding
the foregoing, any termination of Executive shall not be considered a
termination for Cause pursuant to this Section 4, and shall be considered
a termination Without Cause pursuant to Section 4(D) hereof, if such
termination is effected without:  (a)
reasonable notice to Executive setting forth the reasons for Employer’s
intention to terminate for Cause; (b) an opportunity for Executive, together
with his counsel, to be heard before the Board of Directors; and (c) delivery
to Executive of a Notice of Termination as provided for in Section 4(I)
hereof from the Board of Directors finding that in the good faith opinion of
the Board of Directors, Executive was guilty of conduct set forth above in the
preceding sentence, and specifying the particulars thereof in detail.

 

D.            Without Cause.  Any termination of Executive by Employer
(including any action which is deemed a termination of Executive pursuant to
Section 4(F) hereof), other than a termination pursuant to Sections 1 and
4(A)-4(C) hereof, shall be deemed a termination Without Cause.

 

E.             Termination by
Executive.  Executive may terminate this
Agreement (1) due to Executive’s retirement; provided that Executive provides
Employer with thirty (30) days written notice, pursuant to Section 4(I),
prior to the effective date of such retirement, as shall be stated in such
notice; (2) for reasons set forth in Section 4(F)(iii), (iv) and (v),
provided, however, that Executive provides Employer with ten (10) days written
notice pursuant to Section 4(I); (3) as provided in Section 1; and
(4) for any other reason, other than Executive’s retirement, provided that
Executive provides Employer with thirty (30) days written notice prior to the
effective date of such termination, as shall be stated in such notice.

 

F.             Other Events of
Termination.  The following circumstances
shall specifically be deemed a termination Without Cause of Executive’s
employment by Employer:

 

i.              a vote by the
Board of Directors to terminate Executive Without Cause, as defined in
Section 4(D) hereof;

 

ii.             any termination of
Executive’s employment which is not effected pursuant to a Notice of
Termination satisfying the requirements of Section 4(I) hereof;

 

iii.            a breach by
Employer of this Agreement, and a subsequent election by Executive to terminate
this Agreement pursuant to Section 4(E) above;

 

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iv.            the performance of
any other act by Employer which is designed to prevent and does prevent
Executive from properly performing the authorities, duties and responsibilities
of his employment hereunder; or

 

v.             Executive
voluntarily terminates his employment for “Good Reason.”  Good Reason shall mean (a) any material
diminution by Executive’s supervisor or the Board of Directors, as the case may
be, of Executive’s position, duties, or responsibilities; (b) any reduction in
Executive’s salary or Executive’s benefits described in Section 3(D),
other than a reduction affecting all executive officers; or (c) the relocation
of Employer’s headquarters outside of Palm Beach or Broward County, Florida.

 

G.            Payments if
Without Cause or for Good Reason.  If
Executive’s employment is terminated for any reason pursuant to Section 4(D)
or 4(E)(2) hereof, Employer shall continue to pay Executive his then Base
Salary and then Base Bonus in accordance with and at such times specified in
Sections 3(A) and 3(B) and provide the benefits pursuant to Section 3(D)
for the greater of: (1) one (1) year from the Date of Termination, or (2) the
balance of the Employment Period (the then Base Bonus to be pro rated for any
partial fiscal year).  In addition, the
vesting schedules, if any, under all stock options held by Executive shall
continue to run to the maximum extent permitted by applicable law.

 

H.            Payments Under
Other Terminations.  If Executive’s employment is
terminated pursuant to Sections 1, 4(A), 4(B), 4(C), 4(E)(1) or 4(E)(4) hereof,
on and after the Date of Termination Employer shall no longer be obligated to
pay Executive any amounts payable hereunder for such period, whether in the
form of Base Salary, Base Bonus or otherwise, and Executive shall have no right
to compensation or other benefits hereunder for any such period.  Notwithstanding the foregoing, Employer
shall be obligated to pay to Executive all amounts payable hereunder and
otherwise, through and including the Date of Termination, whether such amounts
were payable prior to the date of termination or thereafter, and Executive
shall be entitled to receive any extension of benefits beyond the Date of
Termination, provided that (1) such benefits were received by Executive prior
to the Date of Termination and (2) such extension is customarily offered by
Employer to its employees or is otherwise required by applicable law.

 

I.              Notice of
Termination.  Any termination of Executive’s
employment by Employer or by Executive (other than termination pursuant to
Section 4(A) hereof) shall be communicated by written Notice of Termination
to the other party hereto.  For purposes
of this Agreement, a “Notice of Termination” shall mean a notice which shall
(1) indicate the specific termination provision in this Agreement relied upon;
(2) set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of Executive’s employment under the provision
so indicated; and (3) contain any other information required by this Agreement.

 

J.             Effective Date of
Termination.  For purposes of
Section 3(F) and this Section 4, “Date of Termination” shall mean:
(1) if Executive’s employment is terminated by providing written notice of
termination pursuant to Section 1 hereof, as of June 30, 2008, or the
June 30 immediately subsequent to the provision of such written notice of
termination if such notice is provided after June 30, 2008; (2) if
Executive’s employment is terminated by his death, the date of his death; (3)
if Executive’s Employment is terminated pursuant to Section 4(B) hereof,
the termination date stated in the written notice sent by Employer after the
expiration of six (6) consecutive months of Executive’s incapacity due to
physical or mental illness, as set forth in Section 4(B) hereof (provided
that Executive shall not have returned to the performance

 

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of
his duties on a full-time basis during such six (6) month period); (4) if
Executive’s employment is terminated pursuant to Sections 4(C) or 4(D) hereof,
the effective date of termination specified in the Notice of Termination is
communicated to Executive pursuant to Section 4(I) hereof; (5) if
Executive’s employment is terminated pursuant to Section 4(E) hereof, the
effective termination date stated in the written notice received by Employer;
or (6) if deemed terminated pursuant to Section 4(F) hereof, the date of
such action which is deemed a termination of Executive by Employer.

 

5.             Termination of
Employment Upon Change of Control.

 

A.            Certain
Definitions.

 

i.              “Change of
Control” shall mean:

 

(a)           The acquisition by any person, entity or
“group” required to file a Schedule 13D or Schedule 14D-1 promulgated
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
(excluding, for this purpose, any of the following that acquires beneficial
ownership of voting securities of Employer, including shares acquired pursuant
to the exercise of options or warrants, or conversion of preferred stock
outstanding as of the date hereof: (i) CL Financial, Ltd., Angostura Ltd., or
any of their affiliates; (ii) Employer, its affiliates or subsidiaries; (iii)
V&S Vin & Spirit AB, its affiliates or subsidiaries, solely in
connection with a transaction with Employer, its affiliates or subsidiaries
approved by the Board of Directors; or (iv) any employee benefit plan of Employer,
or its affiliates or subsidiaries), of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of over 40% (in one or more
transactions, in the aggregate) of either the then outstanding shares of common
stock or the combined voting power of Employer’s then outstanding voting
securities entitled to vote generally in the election of directors; or

 

(b)           An election or appointment to the Board of
Directors by virtue of which the individuals who immediately prior thereto
constituted the Board of Directors (the “Incumbent Board”) no longer constitute
at least a majority of the Board of Directors (other than an election or
appointment of a director or directors precipitated by CL Financial, Ltd.,
Angostura Ltd., V&S Vin & Spirit AB, or any of their affiliates, or by
the Board of Directors if at that time at least a majority are individuals who
are directors on the date hereof), provided that any person who becomes a
director subsequent to the date hereof whose election, or nomination for
election by Employer’s stockholders, was approved by a vote of at least a
majority of the Incumbent Board (other than an election or nomination of an
individual whose initial assumption of office is in connection with an actual
or threatened election contest relating to the election of the Directors of
Employer, as such terms are used in Rule 14a-1 promulgated under the Exchange
Act) shall be, for purposes of this Agreement, considered as though such person
were a member of the Incumbent Board; or

 

(c)           Approval by the stockholders of Employer of:
(i) a reorganization, merger or consolidation by reason of which persons who
were the stockholders of Employer immediately prior to such reorganization,
merger or consolidation do not, immediately thereafter, own more than fifty
percent (50%) of the combined voting power entitled to vote generally in the
election of directors of the reorganized, merged or consolidated company’s then
outstanding voting securities; or (ii) a liquidation or dissolution of Employer
or the sale of all or substantially all of the assets of Employer, whether such
assets are held directly or indirectly (excluding the currently proposed joint
ventures with affiliates of CL

 

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Financial,
Ltd. and/or V&S Vin & Spirit AB, if such transactions constitute a sale
of substantially all of the assets of Employer).

 

ii.             “Date of
Termination,” for the purposes of this Section 5, means the date of
receipt by Executive of a notice of termination of employment from Employer or
any later date specified therein, or the date Executive delivers a letter of
resignation to Employer.

 

iii.            The “Effective
Date” shall be the date on which a Change of Control occurs.  Anything in this Agreement to the contrary
notwithstanding, if Executive’s employment with Employer is terminated prior to
the date on which a Change of Control occurs, and it is reasonably demonstrated
that such termination (a) was at the request of a third party who has taken
steps reasonably calculated to effect a Change of Control or (b) otherwise
arose in connection with or anticipation of a Change of Control, then for all
purposes of this Agreement the “Effective Date” shall mean the date immediately
prior to the date of such termination.

 

B.            Obligations of
Employer upon Termination.  If within
one (1) year following the Effective Date of a Change of Control, Executive’s
employment is deemed terminated Without Cause within the two-year period
immediately preceding the end of the Employment Period, then in addition to any
amount payable under Section 4(G), Employer shall pay to Executive in a
lump sum in cash within thirty (30) days after the Date of Termination to the
extent not theretofore paid, an amount equal to (i) two times Executive’s then
Base Salary, two times the then Base Bonus, and the benefits provided pursuant
to Section 3(D), less (ii) the amount payable under Section 4(G)
(except that Executive, at his option, may choose to continue to have he and
his family covered, to the extent they are then covered, by Employer’s health
plan in lieu of receiving a lump sum payment for that benefit, and Employer
shall use reasonable efforts to cooperate in such event); provided, however,
that if the amount calculated under this Section 5(B) is a negative
number, Executive shall not be deemed to owe that amount to Employer.

 

C.            Non-exclusivity of
Rights.  Nothing in this Agreement
shall prevent or limit Executive’s continuing or future participation in any
benefit, bonus, incentive or other plans, programs, policies or practices
provided by Employer or its subsidiaries and for which Executive may qualify,
nor shall anything herein limit or otherwise affect such rights as Executive
may have under any stock option or other agreements with Employer or any of its
subsidiaries.  Amounts which are vested
benefits or which Executive is otherwise entitled to receive under any plan,
policy, practice or program of Employer or any of its subsidiaries at or
subsequent to the Date of Termination shall be payable in accordance with such
plan, policy, practice or program; provided that the vesting schedules, if any,
under all stock options held by Executive shall continue to run to the maximum
extent permitted by applicable law.

 

D.            Interest.  Without limiting the rights of Executive at
law or in equity, if Employer fails to make any payment or provide any benefit
required to be made or provided hereunder on a timely basis, Employer will pay
interest on the amount or value thereof at any annualized rate of interest
equal to the so-called composite “prime rate” as quoted from time to time
during the relevant period in the Eastern Edition of The Wall Street Journal.  Such interest will be payable as it accrues
on demand.  Any change in such prime
rate will be effective on and as of the date of such change.

 

6

 

6.             Confidentiality.

 

A.            In
the course of his employment, Employer or any of its subsidiaries may disclose
or make known to Executive, and Executive may be given access to or may become
acquainted with, certain information, trade secrets or both, including but not
limited to confidential information and trade secrets regarding tapes, computer
programs, designs, skills, procedures, formulations, methods, documentation,
drawings, facilities, customers, policies, marketing, pricing, customer lists
and leads, and other information and know-how, all relating to or useful in
Employer’s business or the business of its subsidiaries and/or affiliates
(collectively, the “Information”), and which Employer considers proprietary,
desires to maintain confidential and is not in the public domain.  During the Employment Period and at all
times thereafter, Executive shall not in any manner, either directly or
indirectly, divulge, disclose or communicate to any person or firm, except to
or for Employer’s benefit as directed by Employer or except as required by
applicable law or court process (but only after giving Employer written notice
so that Employer may attempt to obtain a protective order), any of the
Information which he may have acquired in the course of or as an incident to
his employment by Employer, the parties agreeing that such information affects
the successful and effective conduct of Employer’s business and its goodwill,
and that any breach of the terms of this Section 6 is a material breach of
this Agreement.

 

B.            All
equipment, documents, memoranda, reports, records, files, materials, samples,
books, correspondence, lists, other written and graphic records, and the like
(collectively, the “Materials”) affecting or relating to the business of
Employer or of its subsidiaries and/or affiliates, which Executive shall
prepare, use, construct, observe, possess or control shall be and remain
Employer’s sole property or in Employer’s exclusive custody, and must not be
removed from the premises of Employer except as directed by Employer’s Board of
Directors in writing.  Promptly upon
termination of the Agreement or Executive’s employment hereunder for any
reason, or otherwise upon request of the Chief Executive Officer of Employer,
the Information, the Materials and all copies thereof in the custody or control
of Executive shall be delivered to Employer.

 

7.             Restrictive
Covenant.

 

A.            During the Employment Period and, if
Executive is terminated for Cause or if Executive terminates his employment
pursuant to Sections 4(B), 4(E)(1) or 4(E)(4), for a period of two (2) years
thereafter, Executive will not, directly or indirectly:

 

i.              engage in any trade or business in any
capacity in the liquor industry, anywhere in the United States or such other
country or countries in which Employer actively engages in its trade or
business as of the Date of Termination (“Territory”);

 

ii.             become associated as a manager, supervisor,
employee, consultant, advisor, control shareholder (either individually or as
part of an affiliated group), or otherwise of any person, corporation or entity
engaging in any capacity in the liquor industry anywhere in the Territory;

 

iii.            call upon any client or clients of Employer
or any of its subsidiaries for the purpose of selling or soliciting for any
person, corporation or entity, other than any of Employer or its subsidiaries,
sales of any products, processes, or services in any capacity in the liquor
industry within the Territory;

 

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iv.            divert, solicit or take away any such client
or clients of Employer or any of its subsidiaries for the purpose of selling
any products or services in any capacity in the liquor industry; and service
any contracts or accounts relating to any products or services in any capacity
in the liquor industry for any person, corporation or entity other than
Employer or any of its subsidiaries; or

 

v.             induce, influence, combine or conspire with,
or attempt to induce, influence, combine or conspire with, any of the officers
or employees of Employer or any of its subsidiaries to terminate his or her
employment with or to compete against Employer or any of its subsidiaries in
any capacity in the liquor industry.

 

B.            During the Employment Period and, if
Executive’s employment hereunder is terminated pursuant to Sections 4(D),
4(E)(2) or 4(F), for a period thereafter that is the lesser of (a) any
additional periods with respect to which Executive continues to receive Base
Salary, Base Bonus and the benefits described in Section 3(D) under this
Agreement (e.g., Sections 4(G)
and 5(B)), or (b) two (2) years after the Employment Period, Executive will
not, directly or indirectly:

 

i.              engage in any trade or business directly
competitive with that of any of Employer or any of its subsidiaries, anywhere
within the Territory;

 

ii.             become associated as a manager, supervisor,
employee, consultant, advisor, control shareholder (either individually or as
part of an affiliated group), or otherwise of any person, corporation or entity
engaging in any trade or business directly competitive with those of Employer
or any of its subsidiaries anywhere in the Territory;

 

iii.            call upon any client or clients of Employer
or any of its subsidiaries for the purpose of selling or soliciting for any
person, corporation or entity, other than any of Employer or its subsidiaries,
sales of any products, processes, or services directly competitive with any
trade or business of Employer or any of its subsidiaries within the Territory;

 

iv.            divert, solicit or take away any such client
or clients of Employer or any of its subsidiaries for the purpose of selling
any products or services directly competitive with any trade or business of
Employer or any of its subsidiaries; and service any contracts or accounts
relating to any products or services directly competitive with any trade or
business of Employer or any of its subsidiaries for any person, corporation or
entity other than Employer or any of its subsidiaries; or

 

v.             induce, influence, combine or conspire with,
or attempt to induce, influence, combine or conspire with, any of the officers
or employees of Employer or any of its subsidiaries to terminate his or her
employment with or to directly compete against any trade or business of
Employer or any of its subsidiaries.

 

C.            During the Employment Period and, if
Executive’s employment hereunder is terminated effective as of the end of the
Employment Period pursuant to Section 1, for a period of one (1) year
thereafter, Executive will not, directly or indirectly:

 

i.              engage in any trade or business directly
competitive with the production, importing or marketing of premium branded rum
by Employer or any of its subsidiaries, anywhere within the Territory;

 

8

 

ii.             become associated as a manager, supervisor,
employee, consultant, advisor, control shareholder (either individually or as
part of an affiliated group), or otherwise of any person, corporation or entity
engaging in any trade or business directly competitive with the production,
importing or marketing of premium branded rum by Employer or any of its
subsidiaries anywhere in the Territory;

 

iii.            call upon any client or clients of Employer
or any of its subsidiaries for the purpose of selling or soliciting for any
person, corporation or entity, other than any of Employer or its subsidiaries,
sales of any products, processes, or services directly competitive with the
production, importing or marketing of premium branded rum by Employer or any of
its subsidiaries within the Territory;

 

iv.            divert, solicit or take away any such client
or clients of Employer or any of its subsidiaries for the purpose of selling
any products or services directly competitive with the production, importing or
marketing of premium branded rum by Employer or any of its subsidiaries; and
service any contracts or accounts relating to any products or services directly
competitive with the production, importing or marketing of premium branded rum
by Employer or any of its subsidiaries for any person, corporation or entity
other than Employer or any of its subsidiaries; or

 

v.             induce, influence, combine or conspire with,
or attempt to induce, influence, combine or conspire with, any of the officers
or employees of Employer or any of its subsidiaries to terminate his or her
employment with or to directly compete against the production, importing or
marketing of premium branded rum by Employer or any of its subsidiaries.

 

D.            Notwithstanding
anything to the contrary in this Agreement, Executive shall not be precluded
from owning less than five percent (5%) of the outstanding capital stock of any
company whose stock is traded on an established stock exchange or quoted on
Nasdaq.  Should any of the time periods
or the geographic area set forth in this Section 7 be held to be
unreasonable by any court of competent subject matter jurisdiction, the parties
hereto agree to petition such court to reduce the time period or geographic
area to the maximum permitted by governing law.

 

8.             Assignments.  No party shall assign his or its rights or
obligations under this Agreement without the prior written consent of the other
party to this Agreement.

 

9.             Amendments.  The provisions of this Agreement may not be
amended, supplemented, waived or changed orally, but only by a writing signed
by the party as to whom enforcement of any such amendment, supplement, waiver
or modification is sought and making specific reference to this Agreement.

 

10.           Remedies.  If a party commits a material breach, or is
about to commit a material breach, of any of the provisions of this Agreement,
the other party shall have the right to have the provisions of this Agreement
specifically enforced by any court having equity jurisdiction without being
required to post bond or other security and without having to prove the
inadequacy of the available remedies at law, it being acknowledged and agreed
that any such breach or threatened breach will cause irreparable injury to the non-breaching
party and that the money damages will not provide an adequate remedy to the
non-breaching party.  In addition, the
non-breaching party may take all such other actions and remedies available to
it under law

 

9

 

or
in equity and shall be entitled to such damages as it can show it has
sustained, by reason of such breach.

 

11.           Surrender of Books
and Records.  Executive acknowledges that
all lists, books, records, literature, products and any other materials owned
by Employer or its subsidiaries or used by them in connection with the conduct
of their business, shall at all times remain the property of Employer and its
subsidiaries and that upon termination of employment hereunder, irrespective of
the time, manner or cause of said termination, Executive will surrender to
Employer and its subsidiaries all such lists, books, records, literature,
products and other materials.

 

12.           Severability.  If any provision of this Agreement or any
other agreement entered into pursuant to this Agreement is contrary to,
prohibited by or deemed invalid under applicable law or regulation, such
provision shall be inapplicable and deemed omitted to the extent so contrary,
prohibited or invalid, but the remainder of this Agreement shall not be
invalidated thereby and shall be given full force and effect so far as
possible.  If any provision of this
Agreement may be construed in two or more ways, one of which would render the
provision invalid or otherwise voidable or unenforceable and another of which
would render the provision valid and enforceable, such provision shall have the
meaning which renders it valid and enforceable.

 

13.           Notices.  All notices, requests, consents and other
communications required or permitted under this Agreement shall be in writing
(including electronic transmission) and shall be (as elected by the person
giving such notice) hand delivered by messenger or courier service,
electronically transmitted, or mailed (airmail if international) by registered or
certified mail (postage prepaid), return receipt requested, addressed to:

 

	
  If to Employer:

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
  Todhunter International, Inc.

  	
   

  	
  Gunster, Yoakley & Stewart, P.A.

  
	
  222 Lakeview Avenue, Suite 1500

  	
   

  	
  777 South Flagler Drive, Suite 500 East

  
	
  West Palm Beach, Florida  33401

  	
   

  	
  West Palm Beach, Florida 33401

  
	
  (561) 655-8977

  	
   

  	
  (561) 650-0553

  
	
  Fax: (561) 655-9718

  	
   

  	
  Fax: (561) 655-5677

  
	
  Attn: Jay S. Maltby

  	
   

  	
  Attn: Michael V. Mitrione, Esq.

  

 

	
  If to Employee:

  
	
   

  
	
  Ezra Shashoua

  
	
   

  
	
   

  
	
  Telephone:

  	
   

  
	
  Fax:

  	
   

  
			

 

or to such other address as any party may designate
by notice complying with the terms of this Section.  Each such notice shall be deemed delivered (a) on the date
delivered if by personal delivery; (b) on the date of transmission with
confirmed answer back if by electronic transmission; and (c) on the date
upon which the return receipt is signed or delivery is refused or the notice is
designated by the postal authorities as not deliverable, as the case may be, if
mailed.

 

10

 

14.           Binding Effect.  All of the terms and provisions of this
Agreement shall be binding upon, inure to the benefit of, and be enforceable by
the parties and their respective administrators, executors, legal
representatives, heirs, successors and permitted assigns, whether so expressed
or not.

 

15.           Waiver.  The failure or delay of any party at any
time to require performance by another party of any provision of this
Agreement, even if known, shall not affect the right of such party to require
performance of that provision or to exercise any right, power or remedy under
this Agreement.  Any waiver by any party
of any breach of any provision of this Agreement should not be construed as a
waiver of any continuing or succeeding breach of such provision, a waiver of
the provision itself, or a waiver of any right, power or remedy under this
Agreement.  No notice to or demand on
any party in any circumstance shall, of itself, entitle such party to any other
or further notice or demand in similar or other circumstances.

 

16.           Governing Law.  This Agreement and all transactions
contemplated by this Agreement shall be governed by, and construed and enforced
in accordance with, the laws of the State of Florida.

 

17.           Jurisdiction and
Venue.  The parties acknowledge that a
substantial portion of the negotiations, anticipated performance and execution
of this Agreement occurred or shall occur in Palm Beach County, Florida.  Any civil action or legal proceeding arising
out of or relating to this Agreement shall be brought in the courts of record
of the State of Florida in Palm Beach County or the United States District
Court, Southern District of Florida, West Palm Beach Division.  Each party consents to the jurisdiction of such
court in any such civil action or legal proceeding and waives any objection to
the laying of venue of any such civil action or legal proceeding in such
court.  Service of any court paper may
be effected on such party by mail, as provided in this Agreement, or in such
other manner as may be provided under applicable laws, rules of procedure or
local rules.

 

18.           Enforcement Costs.  If any civil action, arbitration or other
legal proceeding is brought for the enforcement of this Agreement, or because
of an alleged dispute, breach, default or misrepresentation in connection with
any provision of this Agreement, the successful or prevailing party or parties
shall be entitled to recover reasonable attorneys’ fees, sales and use taxes,
court costs and all expenses even if not taxable as court costs (including,
without limitation, all such fees, taxes, costs and expenses incident to
arbitration, appellate, bankruptcy and post-judgment proceedings), incurred in
that civil action, arbitration or legal proceeding, in addition to any other
relief to which such party or parties may be entitled.  Attorneys’ fees shall include, without
limitation, paralegal fees, investigative fees, administrative costs, sales and
use taxes and all other charges billed by the attorney to the prevailing party.

 

19.           Entire Agreement.  This Agreement represents the entire
understanding and agreement between the parties with respect to the subject
matter of this Agreement, and supersedes all other negotiations, understandings
and representations (if any) made by and between such parties (including,
without limitation, any and all prior employment agreements and all amendments
thereto between Executive and Employer).

 

20.           No Mitigation
Obligation.  Employer hereby acknowledges
that it will be difficult and may be impossible for Executive to find
reasonably comparable employment following the Date of Termination.  Accordingly, the payment of the severance
compensation by Employer to Executive in accordance with the terms of this
Agreement is hereby acknowledged by Employer to be reasonable and Executive
will not be required to mitigate the amount of any payment

 

11

 

provided
for in this Agreement by seeking other employment or otherwise, nor will any
profits, income, earnings or other benefits from any source whatsoever create
any mitigation, offset, reduction or any other obligation on the part of
Executive hereunder, or otherwise.

 

21.           Survival.  The provisions of Sections 3B and 4 through
21 shall survive any termination or expiration of this Agreement.

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement on the date and year first above written.

 

 

	
   

  	
  /s/

  	
  Ezra Shashoua

  	
   

  
	
   

  	
   

  	
  Ezra Shashoua, Executive

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TODHUNTER INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:/s/

  	
  Jay S. Maltby

  	
   

  
	
   

  	
   

  	
  Jay S. Maltby

  
	
   

  	
   

  	
  Chief Executive Officer

  
						

 

12Exhibit 10.29

 

INDEMNITY AGREEMENT

 

This Indemnification Agreement (“Agreement”)
is made as of
                         
by and between Todhunter International, Inc., a Delaware corporation (the “Company”),
and
                               .
(“Indemnitee”).

 

RECITALS

 

WHEREAS, highly competent persons
have become more reluctant to serve publicly held corporations as directors or
in other capacities unless they are provided with adequate protection through
insurance or adequate indemnification against inordinate risks of claims and
actions against them arising out of their service to and activities on behalf
of the corporation;

 

WHEREAS, the Board of Directors of
the Company (the “Board”) has determined that, in order to attract and
retain qualified individuals, the Company will attempt to maintain on an
ongoing basis, at its sole expense, liability insurance to protect persons
serving the Company and its subsidiaries from certain liabilities. Although the
furnishing of such insurance has been a customary and widespread practice among
United States-based corporations and other business enterprises, the Company
believes that, given current market conditions and trends, such insurance may
be available to it in the future only at higher premiums and with more exclusions.
At the same time, directors, officers, and other persons in service to
corporations or business enterprises are being increasingly subjected to
expensive and time-consuming litigation relating to, among other things,
matters that traditionally would have been brought only against the business
enterprise itself. The Amended and Restated Certificate of Incorporation of the
Company (the “Charter”) requires indemnification of the officers and
directors of the Company. Indemnitee may also be entitled to indemnification
pursuant to the General Corporation Law of the State of Delaware (“DGCL”).
The Charter and the DGCL expressly provide that the indemnification provisions
set forth therein are not exclusive, and thereby contemplate that contracts may
be entered into between the Company and members of the board of directors,
officers and other persons with respect to indemnification;

 

WHEREAS, the uncertainties relating
to such insurance and to indemnification have increased the difficulty of
attracting and retaining such persons;

 

WHEREAS, the Board has determined
that the increased difficulty in attracting and retaining such persons is
detrimental to the best interests of the Company’s stockholders and that the
Company should act to assure such persons that there will be increased
certainty of such protection in the future;

 

WHEREAS, it is reasonable, prudent
and necessary for the Company contractually to obligate itself to indemnify,
and to advance expenses on behalf of, such persons to the fullest extent permitted
by applicable law so that they will serve or continue to serve the Company free
from undue concern that they will not be so indemnified;

 

WHEREAS, this Agreement is a
supplement to and in furtherance of the indemnification provided in the Charter
and any resolutions adopted pursuant thereto, and shall not be deemed a
substitute therefor, nor to diminish or abrogate any rights of Indemnitee
thereunder;

 

 

WHEREAS, Indemnitee is concerned that
the protection available under the Charter and insurance may not be adequate in
the present circumstances, and in consideration of serving as a Director,
desires to be assured of adequate protection, and the Company desires
Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue
to serve and to take on additional service for or on behalf of the Company on
the condition that Indemnitee be so indemnified; and

 

NOW, THEREFORE, in consideration of
the premises and the covenants contained herein, the Company and Indemnitee do
hereby covenant and agree as follows:

 

Section 1.  Services to the Company.  Indemnitee agrees to serve as a Director of the Company. Indemnitee
may at any time and for any reason resign from such position (subject to any
other contractual obligation or any obligation imposed by operation of law), in
which event the Company shall have no obligation under this Agreement to
continue Indemnitee in such position. This Agreement shall not be deemed an
employment contract between the Company (or any of its subsidiaries or any Enterprise)
and Indemnitee. The foregoing notwithstanding, this Agreement shall continue in
force after Indemnitee has ceased to serve as a Director of the Company.

 

Section 2.  Definitions

 

As used in this Agreement:

 

(a)           “Corporate Status”  describes the status of a person who is or
was a director, officer, employee or agent of the Company or of any other
corporation, partnership or joint venture, trust, employee benefit plan or
other enterprise which such person is or was serving at the request of the Company.

 

(b)           “Enterprise”  shall mean the Company and any other
corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise of which Indemnitee is or was serving at the request of the Company
as a director, officer, employee, agent or fiduciary.

 

(c)           “Expenses”  shall include all reasonable attorneys’
fees, retainers, court costs, transcript costs, fees of experts, witness fees,
travel expenses, duplicating costs, printing and binding costs, telephone
charges, postage, delivery service fees, and all other disbursements or
expenses of the types customarily incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, being or preparing
to be a witness in, or otherwise participating in, a Proceeding. Expenses also
shall include Expenses incurred in connection with any appeal resulting from
any Proceeding, including without limitation the premium, security for, and
other costs relating to any cost bond, supersedes bond, or other appeal bond or
its equivalent. Expenses, however, shall not include amounts paid in settlement
by Indemnitee or the amount of judgments or fines against Indemnitee.

 

(d)           The term “Proceeding”
shall include any threatened, pending or completed action, suit, arbitration,
alternate dispute resolution mechanism, investigation, inquiry, administrative
hearing or any other actual, threatened or completed proceeding, whether
brought in the right of the Company or otherwise and whether of a civil,
criminal, administrative or investigative nature, in which Indemnitee was, is
or will be involved as a party or otherwise by reason of the fact that
Indemnitee is or was a Director
of the Company, by reason of any action

 

2

 

taken by him or of any
action on his part while acting as director of the Company, or by reason of the
fact that he is or was serving at the request of the Company as a director,
officer, employee or agent of another corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise, in each case whether or not
serving in such capacity at the time any liability or expense is incurred for
which indemnification, reimbursement, or advancement of expenses can be
provided under this Agreement; except one initiated by Indemnitee to enforce
his rights under this Agreement.

 

Section 3.  Indemnity in Third-Party Proceedings.  The Company shall indemnify Indemnitee in
accordance with the provisions of this Section 3 if Indemnitee is, or is
threatened to be made, a party to or a participant in any Proceeding, other
than a Proceeding by or in the right of the Company to procure a judgment in
its favor. Pursuant to this Section 3, Indemnitee shall be indemnified
against all Expenses, judgments, fines and amounts paid in settlement actually
and reasonably incurred by Indemnitee or on his behalf in connection with such
Proceeding or any claim, issue or matter therein, if Indemnitee acted in good
faith and in a manner he reasonably believed to be in or not opposed to the
best interests of the Company and, in the case of a criminal proceeding, had no
reasonable cause to believe that his conduct was unlawful. Indemnitee shall not
enter into any settlement in connection with a Proceeding without the prior
written consent of the Company, which consent shall not be unreasonably
withheld.

 

Section 4.  Indemnity in Proceedings by or in the
Right of the Company.  The Company
shall indemnify Indemnitee in accordance with the provisions of this
Section 4 if Indemnitee is, or is threatened to be made, a party to or a
participant in any Proceeding by or in the right of the Company to procure a
judgment in its favor. Pursuant to this Section 4, Indemnitee shall be
indemnified against all Expenses actually and reasonably incurred by him or on
his behalf in connection with such Proceeding or any claim, issue or matter
therein, if Indemnitee acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the Company. No
indemnification for Expenses shall be made under this Section 4 in respect
of any claim, issue or matter as to which Indemnitee shall have been finally
adjudged by a court to be liable to the Company, unless and only to the extent
that the Delaware Court of Chancery (the “Delaware Court”) or any court
in which the Proceeding was brought shall determine upon application that,
despite the adjudication of liability but in view of all the circumstances of
the case, Indemnitee is fairly and reasonably entitled to indemnification for such
expenses as the Delaware Court or such other court shall deem proper.

 

Section 5.  Indemnification for Expenses of a Party
Who is Wholly or Partly Successful. 
Notwithstanding any other provisions of this Agreement, to the extent
that Indemnitee is a party to or a participant in and is successful, on the
merits or otherwise, in any Proceeding or in defense of any claim, issue or
matter therein, in whole or in part, the Company shall indemnify Indemnitee
against all Expenses actually and reasonably incurred by him in connection
therewith. If Indemnitee is not wholly successful in such Proceeding but is
successful, on the merits or otherwise, as to one or more but less than all
claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee
against (a) all Expenses actually and reasonably incurred by him or on his
behalf in connection with each successfully resolved claim, issue or matter and
(b) any claim, issue or matter related to any such successfully resolved claim,
issue or matter. For purposes of this Section and without limitation, the
termination of any claim,

 

3

 

issue or matter in such a
Proceeding by dismissal, with or without prejudice, shall be deemed to be a
successful result as to such claim, issue or matter.

 

Section 6.  Indemnification For Expenses of a
Witness.  Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee is, by reason of his
Corporate Status, a witness in any Proceeding to which Indemnitee is not a
party, he shall be indemnified against all Expenses actually and reasonably
incurred by him or on his behalf in connection therewith.

 

Section 7.  Additional Indemnification.

 

(a)           Notwithstanding any
limitation in Sections 3, 4, or 5, the Company shall indemnify Indemnitee to
the fullest extent permitted by law if Indemnitee is a party to or threatened
to be made a party to any Proceeding (including a Proceeding by or in the right
of the Company to procure a judgment in its favor) against all Expenses,
judgments, fines and amounts paid in settlement actually and reasonably
incurred by Indemnitee in connection with the Proceeding.

 

(b)           For purposes of
Section 7(a), the meaning of the phrase “to the fullest extent permitted
by law” shall include, but not be limited to:

 

(i)            to the fullest extent
permitted by the provision of the DGCL that authorizes or contemplates
additional indemnification by agreement, or the corresponding provision of any
amendment to or replacement of the DGCL, and

 

(ii)           to the fullest extent
authorized or permitted by any amendments to or replacements of the DGCL
adopted after the date of this Agreement that increase the extent to which a
corporation may indemnify its officers and directors.

 

Section 8.  Exclusions. Notwithstanding any
provision in this Agreement to the contrary, the Company shall not be obligated
under this Agreement to make any indemnity in connection with any claim made
against Indemnitee:

 

(a)           for which payment has
actually been made to or on behalf of Indemnitee under any insurance policy or
other indemnity provision, except with respect to any excess beyond the amount
paid under any insurance policy or other indemnity provision.

 

(b)           for an accounting of
profits made from the purchase and sale (or sale and purchase) by Indemnitee of
securities of the Company within the meaning of Section 16(b) of the
Securities Exchange Act of 1934, as amended, or similar provisions of state
statutory law or common law; or

 

(c)           for which payment is
prohibited by applicable law.

 

Section 9.  Advances of Expenses.  The Company shall advance, to the extent not
prohibited by law, the Expenses incurred by Indemnitee in connection with any
Proceeding, and such advancement shall be made within 30 days after the receipt
by the Company of a statement or statements requesting such advances (which
shall include invoices received by Indemnitee in connection with such Expenses
but, in the case of invoices in connection with legal services, any

 

4

 

references to legal work
performed or to expenditures made that would cause Indemnitee to waive any
privilege accorded by applicable law shall not be included with the invoice)
from time to time, whether prior to or after final disposition of any
Proceeding. Advances shall be unsecured and interest free. Advances shall be
made without regard to Indemnitee’s ability to repay the expenses and without
regard to Indemnitee’s ultimate entitlement to indemnification under the other
provisions of this Agreement. Advances shall include any and all reasonable
Expenses incurred pursuing an action to enforce this right of advancement,
including Expenses incurred preparing and forwarding statements to the Company
to support the advances claimed. The Indemnitee shall qualify for advances upon
the execution and delivery to the Company of this Agreement which shall
constitute an undertaking providing that the Indemnitee undertakes to the
fullest extent permitted by law to repay the advance if and to the extent that
it is ultimately determined that Indemnitee is not entitled to be indemnified
by the Company. This Section 9 shall not apply to any claim made by
Indemnitee for which indemnity is excluded pursuant to Section 8.

 

Section
 10.  Procedure for Notification
and Defense of Claim.

 

(a)           To obtain
indemnification under this Agreement, Indemnitee shall submit to the Company a
written request therefor.

 

(b)           The Company will be
entitled to participate in the Proceeding at its own expense.

 

Section 11.  Procedure Upon Application for
Indemnification.  Upon written
request by Indemnitee for indemnification pursuant to Section 10(a), a
determination, if required by applicable law, with respect to Indemnitee’s
entitlement thereto shall be made in the specific case by (1) a majority vote
of the directors not party to the action, suit or proceeding (the
“disinterested directors”) or (2) a committee of the disinterested directors
designated by majority vote of all disinterested directors, whichever the Board
selects in its sole discretion.  Such
determination shall be submitted in a written opinion to the Board, a copy of
which shall be delivered to Indemnitee and, if it is so determined that
Indemnitee is entitled to indemnification, payment to Indemnitee shall be made
within ten (10) days after such determination. Indemnitee shall cooperate with
the disinterested directors or committee thereof making such determination with
respect to Indemnitee’s entitlement to indemnification, including providing
upon reasonable advance request any documentation or information which is not
privileged or otherwise protected from disclosure and which is reasonably
available to Indemnitee and reasonably necessary to such determination. Any
reasonable costs or expenses (including reasonable attorneys’ fees and
disbursements) incurred by Indemnitee in so cooperating with the disinterested
directors or committee thereof shall be borne by the Company (irrespective of
the determination as to Indemnitee’s entitlement to indemnification) and the Company
hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

 

Section 12.  Presumptions and Effect of Certain
Proceedings.

 

(a)           In making a
determination with respect to entitlement to indemnification hereunder, the
disinterested directors or committee thereof making such determination shall
presume that Indemnitee is entitled to indemnification under this Agreement if
Indemnitee has

 

5

 

submitted a request for
indemnification in accordance with Section 10(a) of this Agreement, and
the Company shall have the burden of proof to overcome that presumption in
connection with the making by the disinterested directors or committee of any
determination contrary to that presumption. Neither the failure of the Company
or of the disinterested directors or committee to have made a determination
prior to the commencement of any action pursuant to this Agreement that
indemnification is proper in the circumstances because Indemnitee has met the
applicable standard of conduct, nor an actual determination by the Company or
by the disinterested directors or committee has not met such applicable
standard of conduct, shall be a defense to the action or create a presumption
that Indemnitee has not met the applicable standard of conduct.

 

(b)           The termination of any
Proceeding or of any claim, issue or matter therein, by judgment, order,
settlement or conviction, or upon a plea of nolo  contendere or
its equivalent, shall not (except as otherwise expressly provided in this
Agreement) of itself adversely affect the right of Indemnitee to
indemnification or create a presumption that Indemnitee did not act in good
faith and in a manner which he reasonably believed to be in or not opposed to
the best interests of the Company or, with respect to any criminal Proceeding,
that Indemnitee had reasonable cause to believe that his conduct was unlawful.

 

(c)           For purposes of any
determination of good faith, Indemnitee shall be deemed to have acted in good
faith if Indemnitee’s action is based on the records or books of account of the
Enterprise, including financial statements, or on information supplied to
Indemnitee by the officers of the Enterprise in the course of their duties, or
on the advice of legal counsel for the Enterprise or the Board or counsel
selected by any committee of the Board or on information or records given or
reports made to the Enterprise by an independent certified public accountant or
by an appraiser, investment banker or other expert selected with the reasonable
care by the Company or the Board or any committee of the Board. The provisions
of this Section 12(c) shall not be deemed to be exclusive or to limit in
any way the other circumstances in which the Indemnitee may be deemed to have
met the applicable standard of conduct set forth in this Agreement.

 

(d)           The knowledge and/or
actions, or failure to act, of any director, officer, agent or employee of the
Enterprise shall not be imputed to Indemnitee for purposes of determining the
right to indemnification under this Agreement.

 

Section 13.  Remedies of Indemnitee.

 

(a)           Subject to
Section 13(e), in the event that (i) a determination is made pursuant to
Section 11 of this Agreement that Indemnitee is not entitled to
indemnification under this Agreement, (ii) advancement of Expenses is not
timely made pursuant to Section 9 of this Agreement, (iii) no
determination of entitlement to indemnification shall have been made pursuant
to Section 11 of this Agreement within 90 days after receipt by the
Company of the request for indemnification, (iv) payment of indemnification is
not made pursuant to Section 5 or 6 or the last sentence of
Section 11 of this Agreement within ten (10) days after receipt by the
Company of a written request therefor, or (v) payment of indemnification
pursuant to Section 3, 4 or 7 of this Agreement is not made within ten
(10) days after a determination has been made that Indemnitee is entitled to
indemnification, Indemnitee shall be entitled to an adjudication by a court of
his entitlement to such indemnification or advancement of Expenses.
Alternatively,

 

6

 

Indemnitee, at his
option, may seek an award in arbitration to be conducted by a single arbitrator
pursuant to the Commercial Arbitration Rules of the American Arbitration
Association. Indemnitee shall commence such proceeding seeking an adjudication
or an award in arbitration within 180 days following the date on which
Indemnitee first has the right to commence such proceeding pursuant to this Section 13(a);
provided, however, that the foregoing clause shall not apply in
respect of a proceeding brought by Indemnitee to enforce his rights under
Section 5 of this Agreement. The Company shall not oppose Indemnitee’s
right to seek any such adjudication or award in arbitration.

 

(b)           In the event that a
determination shall have been made pursuant to Section 11 of this
Agreement that Indemnitee is not entitled to indemnification, any judicial
proceeding or arbitration commenced pursuant to this Section 13 shall be
conducted in all respects as a de novo trial, or arbitration, on the merits and
Indemnitee shall not be prejudiced by reason of that adverse determination. In
any judicial proceeding or arbitration commenced pursuant to this
Section 13, the Company shall have the burden of proving Indemnitee is not
entitled to indemnification or advancement of Expenses, as the case may be.

 

(c)           If a determination
shall have been made pursuant to Section 11 of this Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such
determination in any judicial proceeding or arbitration commenced pursuant to
this Section 13, absent (i) a misstatement by Indemnitee of a material
fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for
indemnification, or (ii) a prohibition of such indemnification under applicable
law.

 

(d)           The Company shall be
precluded from asserting in any judicial proceeding or arbitration commenced
pursuant to this Section 13 that the procedures and presumptions of this
Agreement are not valid, binding and enforceable and shall stipulate in any
such court or before any such arbitrator that the Company is bound by all the
provisions of this Agreement. The Company shall indemnify Indemnitee against
any and all Expenses and, if requested by Indemnitee, shall (within ten (10)
days after receipt by the Company of a written request therefore) advance, to
the extent not prohibited by law, such Expenses to Indemnitee, which are
incurred by Indemnitee in connection with any action brought by Indemnitee for
indemnification or advance of Expenses from the Company under this Agreement or
under any directors’ and officers’ liability insurance policies maintained by
the Company, regardless of whether Indemnitee ultimately is determined to be
entitled to such indemnification, advancement of Expenses or insurance
recovery, as the case may be.

 

(e)           Notwithstanding
anything in this Agreement to the contrary, no determination as to entitlement
to indemnification under this Agreement shall be required to be made prior to
the final disposition of the Proceeding.

 

Section 14.  Non-exclusivity; Survival of Rights;
Insurance; Subrogation.

 

(a)           The rights of indemnification
and to receive advancement of Expenses as provided by this Agreement shall not
be deemed exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the Charter, the Company’s Bylaws, any
agreement, a vote of stockholders or a resolution of directors, or otherwise.
No

 

7

 

amendment, alteration or
repeal of this Agreement or of any provision hereof shall limit or restrict any
right of Indemnitee under this Agreement in respect of any action taken or
omitted by such Indemnitee in his Corporate Status prior to such amendment,
alteration or repeal. To the extent that a change in Delaware law, whether by
statute or judicial decision, permits greater indemnification or advancement of
Expenses than would be afforded currently under the Charter, Bylaws and this
Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy
by this Agreement the greater benefits so afforded by such change. No right or
remedy herein conferred is intended to be exclusive of any other right or
remedy, and every other right and remedy shall be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise. The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other right or remedy.

 

(b)           To the extent that the
Company maintains an insurance policy or policies providing liability insurance
for directors, officers, employees, or agents of the Company or of any other
Enterprise, Indemnitee shall be covered by such policy or policies in
accordance with its or their terms to the maximum extent of the coverage
available for any such director, officer, employee or agent under such policy
or policies. If, at the time of the receipt of a notice of a claim pursuant to
the terms hereof, the Company has director and officer liability insurance in
effect, the Company shall give prompt notice of the commencement of such
proceeding to the insurers in accordance with the procedures set forth in the
respective policies. The Company shall thereafter take all necessary or
desirable action to cause such insurers to pay, on behalf of the Indemnitee,
all amounts payable as a result of such proceeding in accordance with the terms
of such policies.

 

(c)           In the event of any
payment under this Agreement, the Company shall be subrogated to the extent of
such payment to all of the rights of recovery of Indemnitee, who shall execute
all papers required and take all action necessary to secure such rights,
including execution of such documents as are necessary to enable the Company to
bring suit to enforce such rights.

 

(d)           The Company shall not
be liable under this Agreement to make any payment of amounts otherwise
indemnifiable (or for which advancement is provided hereunder) hereunder if and
to the extent that Indemnitee has otherwise actually received such payment
under any insurance policy, contract, agreement or otherwise.

 

(e)           The Company’s
obligation to indemnify or advance Expenses hereunder to Indemnitee who is or
was serving at the request of the Company as a director, officer, employee or
agent of any other corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise shall be reduced by any amount Indemnitee has
actually received as indemnification or advancement of Expenses from such other
corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise.

 

Section 15.  Duration of Agreement.  This Agreement shall continue until and
terminate upon the later of: (a) 10 years after the date that Indemnitee shall
have ceased to serve as a director of the Company or (b) 1 year after the final
termination of any Proceeding then pending in respect of which Indemnitee is
granted rights of indemnification or advancement of Expenses

 

8

 

hereunder and of any
proceeding commenced by Indemnitee pursuant to Section 13 of this
Agreement relating thereto. This Agreement shall be binding upon the Company
and its successors and assigns and shall inure to the benefit of Indemnitee and
his heirs, executors and administrators.

 

Section 16.  Severability.  If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever: (a) the validity, legality and enforceability of the remaining
provisions of this Agreement (including without limitation, each portion of any
Section of this Agreement containing any such provision held to be
invalid, illegal or unenforceable, that is not itself invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby and shall
remain enforceable to the fullest extent permitted by law; (b) such provision
or provisions shall be deemed reformed to the extent necessary to conform to
applicable law and to give the maximum effect to the intent of the parties
hereto; and (c) to the fullest extent possible, the provisions of this
Agreement (including, without limitation, each portion of any Section of
this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that is not itself invalid, illegal or unenforceable) shall be
construed so as to give effect to the intent manifested thereby.

 

Section 17.  Enforcement.

 

(a)           The Company expressly
confirms and agrees that it has entered into this Agreement and assumed the
obligations imposed on it hereby in order to induce Indemnitee to serve as a director of the Company, and the
Company acknowledges that Indemnitee is relying upon this Agreement in serving
as a director  of the Company.

 

(b)           This Agreement
constitutes the entire agreement between the parties hereto with respect to the
subject matter hereof and supersedes all prior agreements and understandings,
oral, written and implied, between the parties hereto with respect to the
subject matter hereof; provided,  however, that this Agreement is
a supplement to and in furtherance of the Charter of the Company, the Bylaws of
the Company and applicable law, and shall not be deemed a substitute therefor,
nor to diminish or abrogate any rights of Indemnitee thereunder.

 

Section 18.  Modification and Waiver.  No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by the parties
thereto. No waiver of any of the provisions of this Agreement shall be deemed
or shall constitute a waiver of any other provisions of this Agreement nor
shall any waiver constitute a continuing waiver.

 

Section 19.  Notice by Indemnitee.  Indemnitee agrees promptly to notify the
Company in writing upon being served with any summons, citation, subpoena,
complaint, indictment, information or other document relating to any Proceeding
or matter which may be subject to indemnification or advancement of Expenses
covered hereunder. The failure of Indemnitee to so notify the Company shall not
relieve the Company of any obligation which it may have to the Indemnitee under
this Agreement or otherwise.

 

Section 20.  Notices.  All notices, requests, demands and other communications under
this Agreement shall be in writing and shall be deemed to have been duly given
if (a) delivered by hand and receipted for by the party to whom said notice or
other communication shall have been

 

9

 

directed, (b) mailed by
certified or registered mail with postage prepaid, on the third business day
after the date on which it is so mailed, (c) mailed by reputable overnight courier
and receipted for by the party to whom said notice or other communication shall
have been directed or (d) sent by facsimile transmission, with receipt of oral
confirmation that such transmission has been received:

 

	
  (a)

  	
   

  	
  If to
  Indemnitee, at such address as Indemnitee shall provide to the Company.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  If to the
  Company to

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Todhunter International, Inc.

  
	
   

  	
   

  	
  222 Lakeview Avenue

  
	
   

  	
   

  	
  Suite 1500

  
	
   

  	
   

  	
  West
  Palm Beach, Florida 33401

  
	
   

  	
   

  	
  (561) 655-8977

  

 

or to any other address as may have been furnished to Indemnitee by the
Company.

 

Section 21.  Contribution.  To the fullest extent permissible under
applicable law, if the indemnification provided for in this Agreement is
unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of
indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee,
whether for judgments, fines, penalties, excise taxes, amounts paid or to be
paid in settlement and/or for Expenses, in connection with any claim relating
to an indemnifiable event under this Agreement, in such proportion as is deemed
fair and reasonable in light of all of the circumstances of such Proceeding in
order to reflect (i) the relative benefits received by the Company and
Indemnitee as a result of the event(s) and/or transaction(s) giving cause to
such Proceeding; and/or (ii) the relative fault of the Company (and its
directors, officers, employees and agents) and Indemnitee in connection with
such event(s) and/or transaction(s).

 

Section 22.  Applicable Law and Consent to Jurisdiction.  This Agreement and the legal relations among
the parties shall be governed by, and construed and enforced in accordance
with, the laws of the State of Delaware, without regard to its conflict of laws
rules. Except with respect to any arbitration commenced by Indemnitee pursuant
to Section 13(a) of this Agreement, the Company and Indemnitee hereby
irrevocably and unconditionally (i) agree that any action or proceeding arising
out of or in connection with this Agreement shall be brought only in the
Delaware Court, and not in any other state or federal court in the United
States of America or any court in any other country, (ii) consent to submit to
the exclusive jurisdiction of the Delaware Court for purposes of any action or
proceeding arising out of or in connection with this Agreement, (iii) appoint,
to the extent such party is not otherwise subject to service of process in the
State of Delaware, The Corporation Trust Company, Wilmington, Delaware as such
party’s agent in the State of Delaware for acceptance of legal process in
connection with any such action or proceeding against such party with the same
legal force and validity as if served upon such party personally within the
State of Delaware, (iv) waive any objection to the laying of venue of any such
action or proceeding in the Delaware Court, and (v) waive, and agree not to
plead or to make, any claim that any such action or proceeding brought in the
Delaware Court has been brought in an improper or inconvenient forum.

 

10

 

Section 23.  Identical Counterparts.  This Agreement may be executed in one or
more counterparts, each of which shall for all purposes be deemed to be an
original but all of which together shall constitute one and the same Agreement.
Only one such counterpart signed by the party against whom enforceability is
sought needs to be produced to evidence the existence of this Agreement.

 

Section 24.  Miscellaneous.  The headings of the paragraphs of this
Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction thereof.

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed
as of the day and year first above written.

 

	
   

  	
  TODHUNTER INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Jay S. Maltby

  
	
   

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INDEMNITEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  

 

11

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