Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.17    
  

 
 

SEVERANCE AGREEMENT
  (TERMINATION OF EMPLOYMENT)    
  

        THIS AGREEMENT (the "Agreement") is made and entered into as of the 13th, day of November, 2001, by and between INTERNATIONAL MULTIFOODS
CORPORATION, a Delaware corporation (the "Company"), having its principal offices at 110 Cheshire Lane, Minnetonka, Minnesota 55305 and DAN C. SWANDER,
whose office address is at 110 Cheshire Lane, Minnetonka, Minnesota 55305 ("Executive"). 

        WHEREAS,
the Executive was employed by the Company and elected President and Chief Operating Officer of the Company on the date of this Agreement; and 

        WHEREAS,
the Company is willing to provide the Executive with a severance benefit if the Executive's termination of employment is initiated by the Company as hereinafter described, in
consideration of certain covenants and agreements by the Executive, all as hereinafter described in this Agreement. 

        NOW,
THERFORE, IN CONSIDERATION OF THE FOREGOING RECITALS AND THE TERMS AND CONDITIONS OF THIS AGREEMENT, HEREINAFTER SET FORTH, IT IS AGREED: 

Severance Benefit  

        1.1    Eligibility.    Executive will be eligible to receive the severance benefit, described in Section 1.2 of
this Agreement, if the Executive's termination of employment is initiated by the Company other than for "Cause" (hereinafter defined). The Executive shall not be eligible to receive the severance
benefit
described in Section 1.2 of this Agreement, if a "Change of Control" event has occurred and the Executive has received or is entitled to receive a payment under the "Severance Agreement (Change
of Control)". The Company's obligation to pay a severance benefit to Executive on the termination of the Executive's employment under this Agreement is in lieu of any obligation of the Company to pay
a severance benefit to Executive under any severance pay policy of the Company now or hereafter in effect. 

        1.2    Benefit Amount.    The severance benefit will be calculated in a single lump-sum benefit, and will
be equal to the Executive's annual base salary in effect immediately prior to the Executive's termination of employment. 

        1.3.    Form of Benefit.    The severance benefit will be paid to Executive in the form of a single
lump-sum payment, less applicable withholding taxes. 

        1.4.    Payment Date.    The severance benefit will be paid to Executive as soon as administratively practicable after
the Executive's termination of employment. 

        1.5    Survivor Benefit.    If Executive becomes eligible for a severance benefit but dies before the severance
benefit is paid, the benefit will be paid to the first of the following persons in order of priority: (i) Executive's surviving spouse, (ii) Executive's surviving children in equal
shares, and (iii) Executive's estate. 

 
Executive's Covenants  

        2.1    Executive's Covenant Not to Compete.    In part consideration of this Agreement set forth in Section 1.1
through 1.5, inclusive, of this Agreement, Executive covenants and agrees that for a period of one (1) year from and after the date of the Executive's termination of employment (the
"Non-Competition Period"), Executive will refrain from carrying on, whether as a principal, agent, investor, employee, employer, consultant, shareholder, partner or in any other individual
or representative capacity whatsoever, anywhere in the United States of America, or its territories and possessions, and Mexico and Canada, any business in competition with the manufacturing
businesses conducted by the Company, or any subsidiary of the Company, at the date of the Executive's termination of employment; provided, however that the Executive may own up to one percent (1%) of
any outstanding class of equity securities of a company engaged in any manufacturing business conducted by the Company at
the date of the Executive's termination of employment, which are publicly traded on a domestic or foreign stock exchange or on a domestic or foreign over the counter market, without violating this
covenant not to compete. 

        2.2    Executive's Covenant Not to Solicit.    In part consideration of this Agreement set forth in Section 1.1
through 1.5, inclusive, of this Agreement, Executive covenants and agrees that during the Non-Competition Period, Executive will not (i) solicit any employee of the Company, or any
subsidiary of the Company, for employment or encourage any employee of the Company, or any subsidiary of the Company, to terminate his or her employment with the Company, and (ii) solicit or
encourage any current or prospective customer or supplier of the Company, or any subsidiary of the Company, from terminating or changing its relationship with the Company or any subsidiary of the
Company. 

        2.3    Executives' Covenants of Confidentiality and Non-Disclosure.    In part consideration of this
Agreement set forth in Section 1.1 through 1.5, inclusive, of this Agreement, Executive covenants and agrees with the Company, that Executive will maintain in strict confidence and not disclose
to any corporation, partnership or other entity or person, any confidential information including, but not limited to, any non-public information obtained by Executive relating to the
Company and its subsidiaries, and its businesses, plans, organization, information systems, present and prospective customers, customer buying patterns or requirements, products, techniques, methods,
cost, pricing, price methods, margins, rebates, and promotional allowances, trade secrets or any other proprietary information of the Company or any of its subsidiaries, to which Executive had access
to or knowledge of during Executive's employment by the Company. Executive agrees that all confidential information, trade secrets and other proprietary information of the Company, are and shall
remain the property of the Company at all times after his termination of employment. Executive further agrees that none of the confidential information, trade secrets and any other proprietary
information of the Company, nor any part thereof, shall be removed from the premises of the Company, in original or duplicate form or transmitted verbally, by electronic means or otherwise before or
after the Executive's date of termination. Executive recognizes and acknowledges that all confidential information, trade secrets and other proprietary information of the Company are valuable to the
Company and the disclosure or use of the same would cause irreparable harm to the Company. 

2

 

        2.4    Executive's Covenant to Execute and Deliver Release Agreement    In part consideration for this Agreement set
forth in Section 1.1 through 1.5, inclusive, of this Agreement, Executive covenants and agrees that he will execute and deliver a Release Agreement, providing for a release of claims against
the Company and its subsidiaries and the directors, officers, employees, representatives and agents of each, in form reasonably prescribed by the Company, effective as of date of Executive's
termination of Employment. 

        2.5    Executive's Covenant Not to Disparage the Company    In part consideration for this Agreement set forth in
Section 1.1 through 1.5, inclusive, of this Agreement, Executive covenants and agrees that he will not, in any way, disparage the Company or any of its subsidiaries and affiliates, or any of
its directors, officers and employees, or any of its products or services, after the date of Executive's termination of Employment. 

Miscellaneous  

        3.1    Definitions.    The following terms are used in this Agreement: 

"Cause", as used in this Agreement shall mean: (i) the willful and continued failure of the Executive to perform substantially the Executive's
duties with the Company or one of its affiliates (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is
delivered to the Executive by the Board or the Chief Executive Officer of the Company which specifically identifies the manner in which the Board or Chief Executive Officer believes that the Executive
has not substantially performed the Executive's duties, or (ii) the willful engaging by the Executive in illegal conduct or gross misconduct which, in either such case, is materially and
demonstrably injurious to the Company. For purposes of this provision, no act or failure to act, on the part of the Executive, shall be considered "willful" unless it is done, or omitted to be done,
by the Executive in bad faith or without reasonable belief that the Executive's action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given
pursuant to a resolution duly adopted by the Board or upon the instructions of the Chief Executive Officer or a senior officer of the Company or based upon the advice of counsel for the Company shall
be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company. 

"Change of Control", as used in this Agreement shall mean: 

(a)    The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"))
(a "Person") of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (i) the then outstanding shares of common
stock of the Company (the "Outstanding Company Common Stock") or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the
election of directors (the "Outstanding Company Voting Securities"); provided, however, that 

3

 

for
purposes of this subsection (a), the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from the Company, (ii) any acquisition by the
Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company or (iv) any acquisition
by any corporation pursuant to a transaction which complies with clauses (i), (ii) and (iii) of subsection (c) hereof; or 

(b)    Individuals
who, as of the date hereof, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company's stockholders, was approved by a vote of at least a majority of the directors
then comprising the
Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board; or 

(c)    Consummation
of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a "Business Combination"), in each
case, unless, following such Business Combination, (i) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common
Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such
Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company's assets either directly or through
one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Common Stock and Outstanding Company
Voting Securities, as the case may be, (ii) no Person (excluding any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting
power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination and (iii) at least a majority of the
members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the
action of the Board, providing for such Business Combination; or 

4

 

(d)    Approval
by the stockholders of the Company of a complete liquidation or dissolution of the Company. 

"Severance Agreement (Change of Control") shall mean the Severance Agreement (Change of Control), dated as of November 13, 2001, by and between
the Company and the Executive 

        3.2    Interpretation.    The Company and Executive agree that if any clause of Sections 2.1 through 2.5 of this
Agreement shall be held by any court or other tribunal of competent jurisdiction to be illegal, invalid or unenforceable, the remainder of such provision shall not thereby be affected and shall be
given full effect. The Company and Executive further agree that if any court construes any of Sections 2.1 through 2.5 of this Agreement to be illegal, invalid or unenforceable because of the duration
of such provision, area or matter covered thereby, such court shall reduce the duration, area, or matter of either such provision, and, in its reduced form, such provision shall then be enforceable
and shall be enforced. 

        3.3.    Governing Law/Construction.    This Agreement shall be governed by and construed in accordance with the laws
of the State of Minnesota, without reference to principles or conflict of laws. The captions of this Agreement are not part of the provisions of this Agreement and shall have no force or effect. This
Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives. 

        3.4    No Effect on Employment Rights.    This Agreement is not an employment agreement and nothing in this Agreement
will confer upon the Executive the right to be retained in the employ of the Company, or limit any right of the Company to discharge the Executive or otherwise deal with the Executive without regard
to the existence of this Agreement. 

        3.5    Entire Agreement.    This Agreement contains the entire agreement and understanding by and between the parties
hereto with respect to the subject matter hereof, and supersedes all prior oral and/or written agreements by and between the parties hereto with respect to the subject matter hereof. 

        3.6.    FICA Taxes/Withholding.    To the extent that benefit accruals hereunder are taken into account as amounts
deferred under a non-qualified deferred compensation plan under Code section 3121(v), and thus are subject to tax under Code section 3101 ("FICA"), the Company may calculate
the amount deferred and withhold against other compensation paid to Executive in any manner determined by the Company to be appropriate under Code section 3121(v). 

        3.7    Other Taxes/Withholding.    The Company may withhold from any amounts payable under this Agreement such
federal, state, local or other taxes as shall be required to be withheld pursuant to any applicable law or regulation. 

        3.8    Remedies.    In the event of a breach or threatened breach of any provision of this Agreement by the Executive,
the Company shall be entitled to 

5

 

injunctions, both preliminary and final, enjoining and restraining such breach or threatened breach, without any obligation to post bond, and that such remedies shall be in addition to all other
remedies available at law or in equity 

        3.9.    Assignment.    The rights and obligations of the Executive under this Agreement shall not be assignable,
transferable or delegable in whole or in part by the Executive. This Agreement shall be binding upon the successors and assigns of the Company. 

        IN
WITNESS WHEREOF, the parties, intending to be legally bound, have executed and delivered this Agreement as of the 13th day of November, 2001. 

	 	 	INTERNATIONAL MULTIFOODS CORPORATION
	

 	
 	

/s/ Ralph P. Hargrow

	 	 	By:	Ralph P. Hargrow
	 	 	Its:	Vice President, Human Resources and Administration
	

 	
 	

EXECUTIVE
	

 	
 	

/s/ Dan C. Swander
 Dan C. Swander

6

QuickLinks

Exhibit 10.17

SEVERANCE AGREEMENT (TERMINATION OF EMPLOYMENT)QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.18    
  

[INTERNATIONAL
MULTIFOODS CORPORATION LOGO] 

Memo  

November 13, 2001 

LAW DEPARTMENT  

	TO:	 	Dan C. Swander
	

FROM:	
 	

Ralph P. Hargrow
	

SUBJECT:	
 	
Supplemental Retirement Benefit

        The
intent of this memorandum is to set forth the terms and conditions of the supplemental retirement benefit provided under Paragraph 6 of your employment offer letter dated
November 13, 2001. 

        Paragraph 6
of your employment offer letter provides that you will be recommended for participation in the Supplemental Deferred Compensation Plan of International Multifoods
Corporation ("DCP") and the Management Benefit Plan of International Multifoods Corporation ("MBP"). You also will participate in the Multifoods Pension Equity Plan ("PEP"). Paragraph 6 of your
employment offer letter further provides that you will receive additional retirement benefits equal to what you would have
received under the DCP, MBP and PEP if your service counted one and one-half times for both benefit accrual and vesting purposes. 

        The
PEP is a "qualified" defined benefit pension plan that provides a benefit based on compensation, age and years of "Credited Service." As a qualified plan, it is subject to certain
benefit limits imposed under the Code(1). 

        The
MBP is a nonqualified excess benefit plan that generally provides the additional benefits that would have been provided under the PEP if the limits imposed under Code
sections 401(a)(17) and 415 did not apply to the PEP. Code section 401(a)(17) imposes a limit on the amount of compensation that can be taken into account for benefit accrual purposes
under a qualified plan, and Code section 415 imposes a limit on the annual benefit payable from a qualified plan. 

        The
DCP is a nonqualified deferred compensation plan that generally allows the additional pre-tax deferrals that would have been allowed under the Employees' Voluntary
Investment and Savings Plan of International Multifoods Corporation ("VISA Plan") if the limits imposed under Code sections 401(a)(17) and 402(g) did not apply under the VISA Plan, and provides
a matching contribution on those deferrals. Code section 402(g) imposes a dollar limit on the amount of pre-tax deferrals allowed under a qualified plan. 

        The
benefits described in this memorandum are in addition to those provided under the PEP, MBP, DCP, and VISA Plan. 

	(1)
	"Code"
refers to the Internal Revenue Code of 1986, as amended. 

 
SUPPLEMENTAL RETIREMENT BENEFIT  

	(a)
	Definitions. The following terms are used herein:

	(1)
	"Actuarial Equivalent" means a benefit of equivalent value when computed on the basis of mortality and interest rate assumptions
recommended by an actuary and approved by the Vice President and Controller of the Company.

	(2)
	"Code" means the Internal Revenue Code of 1986, as amended.

	(3)
	"Company" means International Multifoods Corporation, and any successor thereto.

	(4)
	"DCP" means the Supplemental Deferred Compensation Plan of International Multifoods Corporation, as it may be amended from time to
time.

	(5)
	"MBP" means the Management Benefit Plan of International Multifoods Corporation, as it may be amended from time to time.

	(6)
	"PEP" means the Multifoods Pension Equity Plan, as adopted January 1, 1996 (as a continuation of a prior pension plan), as it
may be amended from time to time.

	(7)
	"Supplemental Retirement Benefit" means the benefit payable to you under the terms of this memorandum. 

	(b)
	Supplemental Retirement Benefit Attributable to the PEP/MBP.

	(1)
	Eligibility. You will be entitled to receive a Supplemental Retirement Benefit attributable to the PEP/MBP if you have 5 or more years
of vesting service at your termination of employment (if you have less than 5 years of vesting service, you will not be entitled to this benefit). 

Your
"vesting service" for this purpose will be equal to one and one-half times (11/2 x) your vesting service earned under the PEP and MBP. 

	(2)
	Amount. The Supplemental Retirement Benefit will be a monthly benefit equal to "A" minus "B" minus "C" below:

	A=
	The
monthly benefit to which you would have been entitled under the PEP if:

	(i)
	you
were fully vested under the PEP (regardless of whether you actually are vested);

	(ii)
	your
Base Points were equal to one and one-half times (11/2 x) your actual Base Points, and your Integration Points
were equal to one and one-half times (11/2 x) your actual Integration Points;

	(iii)
	your
Covered Pay under the PEP included amounts deferred at your election under the DCP;

	(iv)
	your
Credited Service for purposes of the supplemental pension benefit under Appendix D of the PEP were equal to one and one-half
times (11/2 x) your actual Credited Service;

	(v)
	your
entire benefit was paid in the form of a single life annuity; and 

2

 

	(vi)
	the
limits imposed under Code sections 401(a)(17) and 415 did not apply to the PEP. 

minus

	B=
	The
monthly benefit (if any) actually paid to you under the PEP (or, if you receive all or any portion of your benefit other than in the form of a single life annuity, the monthly
benefit that would have been paid to you if you had received your entire benefit in the form of a single life annuity under the PEP). 

minus

	C=
	The
monthly benefit (if any) actually paid to you under the MBP (or, if you receive all or any portion of your benefit other than in the form of a single life annuity, the monthly
benefit that would have been paid to you if you had received your entire benefit in the form of a single life annuity under the MBP). 

All
monthly benefits described above will be computed as of the date of your termination of employment and each will be expressed in the form of a single life annuity starting as of the first day of
the month after age 65 (or as of the first day of the month after your termination of employment, if your termination of employment occurs after age 65). 

	(3)
	Form of Benefit. The Supplemental Retirement Benefit attributable to the PEP/MBP will be paid to you in the form of a single life
annuity with monthly payments. However, at the sole discretion of the
Company, it may be paid in any other form. If it is paid in any form other than a single life annuity, the benefit will be adjusted so that it is the Actuarial Equivalent of the benefit that would
have been paid as a single life annuity.

	(4)
	Commencement of Benefit. The Supplemental Retirement Benefit attributable to the PEP/MBP will start the same day as the benefit paid to
you under the PEP. If it is paid or starts prior to age 65, the benefit will be adjusted so that it is the Actuarial Equivalent of the benefit that would have been paid starting as of the first day of
the month after you attain age 65. If you are not vested under the PEP at your termination of employment (and thus are not entitled to a benefit under the PEP), the Supplemental Retirement Benefit
will start the same day as the benefit that would have been paid to you if you were vested under the PEP.

	(5)
	Survivor Benefit (Spouse Only). If you have 5 or more years of vesting service, you die before your Supplemental Retirement Benefit
attributable to the PEP/MBP is paid or starts to be paid to you, and you are survived by a spouse, that spouse will be entitled to a single lump-sum benefit to be paid as soon as
practicable following the date of your death in an amount that is the Actuarial Equivalent of your Supplemental Retirement Benefit attributable to the PEP/MBP. 

	(c)
	Supplemental Retirement Benefit Attributable to the DCP.

	(1)
	Eligibility. You will be entitled to receive a Supplemental Pension Benefit attributable to the DCP if:

	(i)
	you
are not vested under the DCP at your termination of employment;

	(ii)
	you
would have been vested under the DCP at your termination of employment if your vesting service under the DCP were one and one-half
times (11/2 x) your actual vesting service; and

	(iii)
	you
have received matching credits under the DCP. 

3

 

	(2)
	Amount. The Supplemental Retirement Benefit attributable to the DCP will be equal to the balance of your Account under the DCP that is
attributable to matching credits under the DCP.

	(3)
	Form and Commencement of Benefit. The Supplemental Retirement Benefit attributable to the DCP will be paid to you in the same form and
at the same time as your benefit under the DCP.

	(4)
	Survivor Benefit. If you die before your Supplemental Retirement Benefit attributable to the DCP is paid to you in full, the remaining
benefit will be paid to your beneficiary under the DCP at the same time as the benefit payable to the beneficiary under the DCP. 

	(d)
	No Effect on Employment Rights. This memorandum is not an employment agreement and nothing in this memorandum will confer on you the
right to be retained in the employ of the Company, or limit any right of the Company to discharge you or otherwise deal with you without regard to the existence of this memorandum.

	(e)
	FICA Taxes/Withholding. To the extent that benefit accruals hereunder are taken into account as amounts deferred under a nonqualified
deferred compensation plan under Code section 3121(v), and thus are subject to tax under Code section 3101 ("FICA"), the Company may calculate the amount deferred and withhold against
other compensation paid to you in any manner determined by it to be appropriate under Code section 3121(v). 

        Please
indicate your receipt and acceptance of the terms of this memorandum by signing one of the enclosed copies and returning it at your earliest convenience. 

	 	 	INTERNATIONAL MULTIFOODS CORPORATION
	

 	
 	

/s/ Ralph P. Hargrow

	 	 	By:	Ralph P. Hargrow
	 	 	Its:	Vice President, Human Resources and Administration

	cc:
	Frank
W. Bonvino, Esq.

Joyce G. Traver 

ACCEPTANCE  

        I, Dan C. Swander, hereby acknowledge receipt of this memorandum and hereby agree to the manner in which Paragraph 6 of my offer letter dated
November 6, 2001, is to be implemented as set forth in this memorandum. 

Dated
as of: November 13, 2001 

	 	 	DAN C. SWANDER
	

 	
 	

/s/ Dan C. Swander

4

QuickLinks

Exhibit 10.18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]