Document:

Form 10-k

	

EXHIBIT 10.22 

DISTRIBUTION AGREEMENT
AND FIRST AMENDMENT TO DISTRIBUTION AGREEMENT

DISTRIBUTION AGREEMENT

     This
Distribution Agreement (the “Agreement” or the “2000
Agreement”) is entered into as of this 10th day of October, 2000
by and between Dreyer’s Grand Ice Cream, Inc., a Delaware corporation
headquartered at 5929 College Avenue, Oakland, California 94618
(“Distributor”) and Ben & Jerry’s Homemade, Inc., a Vermont
corporation headquartered at 30 Community Drive, South Burlington, Vermont
05403-6828 (“Manufacturer”). 

     WHEREAS,
the parties wish to confirm that a certain New Distribution Agreement between
the parties dated as of January 11, 1999, as amended (“the 1999
Agreement”) will expire upon the effective date of commencement of
distribution by Distributor under this Agreement as provided in Section 8.1
below, at which time distribution shall commence under this Agreement. 

     NOW
THEREFORE, in consideration of these premises, the mutual promises of the
parties and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties agree as follows: 

1    PURPOSES OF AGREEMENT 

     Manufacturer
is engaged in the manufacture, sale and distribution of ice cream and frozen
dessert products manufactured and sold under the trade name “Ben &
Jerry’s” and such other trade names as are set forth on Schedule 1A.
Distributor is engaged in the manufacture, sale and distribution of ice cream
products and frozen desserts sold under several brand names including
“Dreyer’s” and “Edy’s” and including ice
cream products manufactured by or for others. The use of the term
“Distributor” in this Agreement means Dreyer’s Grand Ice Cream,
Inc. and its affililates and subsidiaries engaged in the manufacture, sale
and/or distribution of frozen dessert products in the United States. The term
“Manufacturer” shall mean Ben & Jerry’s Homemade, Inc. and
its subsidiaries engaged in ice cream production operations in the United
States. 

     Distributor
and Manufacturer desire to enter into this Agreement setting forth the mutual
rights and responsibilities of the parties with respect to the distribution,
resale and promotion of Products (as defined) of the Manufacturer through the
distribution system of the Distributor, being the Distributor’s owned and
operated distribution system and its authorized subdistributors. 

     It
is understood that such distribution will commence and that all of the
provisions of this Agreement shall be effective, as provided in Section 8.1
below. 

     1.1 
Representations. Distributor hereby represents that as of the date hereof
it is not in default in any respect under, and will not be in default in any
respect but for the running of any applicable grace period under, any loan
agreement or other agreement for the borrowing of money or capitalized leases. 

     Distributor
hereby represents that as of the date hereof Distributor has all legal right and
ability to enter into this Agreement and to carry out the obligations set forth
herein, and by doing so is not in breach of any other agreement of any kind. 

     Manufacturer
hereby represents that as of the date hereof Manufacturer has all legal right
and ability to enter into this Agreement, which provides for commencement of
distribution effective as provided in Section 8.1 below, and to carry out the
obligations set forth herein, and by doing so is not in breach of any other
agreement of any kind. 

	

2     DISTRIBUTION 

     2.1 
Appointment of Distributor. Subject to all of the terms hereof,
Manufacturer hereby confirms the appointment of Distributor, commencing as
provided in Section 8.1 below, as a non-exclusive distributor for the Products
(as defined below) for the channels of trade and in the distributor territory
within the United States as set out in Schedule 2A (referred to herein as the
“Retail Grocery Trade Territory” and consisting of grocery stores,
club stores, mass merchandise stores and drug stores with three (3) or more cash
registers per location, as well as sales to domestic United States military
facilities). The Retail Grocery Trade Territory may be changed by mutual written
consent of the parties. Manufacturer agrees that it will not appoint any other
distributor in any territory described in Schedule 2A, as it may be amended from
time to time by mutual agreement, or otherwise arrange for the sale or
distribution of the Products within the Retail Grocery Trade Territory, so long
as Distributor is in compliance with the terms of this Agreement. Manufacturer
may appoint other distributors in the Retail Grocery Trade Territory in the
event Distributor is not in compliance, as provided herein; providing however,
that prior to appointing another distributor, Manufacturer shall provide
Distributor with written notice of any non-compliance, whereupon Distributor in
turn shall have sixty (60) days from receipt of such written notice to cure or
remedy such non-compliance by Distributor. If Distributor is successful in
curing or remedying such non-compliance within such sixty (60) day notice
period, Manufacturer shall not appoint another distributor, or otherwise arrange
for the sale or distribution of the Products, within the affected territory. 

     Subject
to all of the terms hereof, Manufacturer hereby appoints Distributor, commencing
as provided in Section 8.1 below, as a non-exclusive distributor for the
Products (as defined below, but excluding bulk Products except as permitted by
Manufacturer for the Impulse Trade) for channels of trade and in the distributor
territory within the United States as set out in Schedule 2B (referred to herein
as the “Impulse Trade Territory”) and consisting of convenience
stores, bodegas, ‘Mom & Pop’ stores and other locations with less
than three (3) cash registers per location (as well as food service accounts to
the extent permitted by Manufacturer). Manufacturer shall determine, in its
discretion following consultation with Distributor, the geographic territories
in which Distributor is appointed to distribute the Products to the Impulse
Trade, as set forth on Schedule 2B. Manufacturer may also, in its discretion
following consultation with Distributor, appoint additional distributors to
distribute the Products to the Impulse Trade within the distributor territory
which is set out in Schedule 2B. As used herein, “Distributor
Territory” shall mean and include both the Retail Grocery Trade Territory
and the Impulse Trade Territory. Before Manufacturer grants any other person the
right to distribute the Products in the Impulse Trade Territory, Manufacturer
shall first give Distributor at least 30 days’ prior written notice and
shall consult with Distributor. 

     The
Products distributed by Distributor hereunder include (i) brand items of
Manufacturer identified on Schedule 1B which are pints, quarts, half gallons,
single serve and including bulk sizes of ice cream, frozen yogurt, sorbet,
novelties and other frozen desserts manufactured by the Manufacturer and (ii)
subject to the effect of existing distribution agreements between Distributor
and third parties, such other brand ice cream, frozen yogurt, sorbet, novelties,
smoothies and other frozen desserts of other persons as are involved in a
significant relationship with Manufacturer as may be designated by Manufacturer
from time to time, with reasonable notice to Distributor, all as set forth on
Schedule 1B as supplemented or revised by Manufacturer from time to time in
accordance with this Agreement, and with reasonable notice to Distributor
(collectively, the “Products”); providing however that Manufacturer
may not remove Products from Schedule 1B absent a nationwide discontinuance of
such products from the marketplace for all purposes. Manufacturer may also
request that Distributor distribute additional food products in addition to the
Products, pursuant to terms and conditions (including but not limited to sales
terms, performance goals and requirements) as may be mutually agreed upon by
Manufacturer and Distributor. 

     Subject
to all of the terms hereof, Distributor accepts such appointment and agrees to
distribute, resell, and deliver the Products in such flavors and sizes as are
authorized by stores and all other types of accounts in the Distributor
Territory, and to promote the Products in accordance with the terms of this
Agreement throughout the Distributor Territory. 

	 	     2.1.1  Performance
Requirements. In accordance with the foregoing, Distributor will operate so that it
meets the distribution performance requirements set out in Schedules 2C-1 (pertaining to
the Retail Grocery Trade, attached to the Agreement) and 2C-2 (pertaining to the Impulse
Trade, to be determined upon mutual agreement within thirty (30) days of the date of
execution of this Agreement), and with such updates and revisions as shall be agreed at
least annually with respect to each area of dominant influence (“ADI”) or other market
area listed on Schedules 2A and 2B (the “Performance Requirements”). It is understood
that the Distributor is responsible for meeting the Performance Requirements annually on
a market-by-market basis within the Distributor Territory for the Distributor Territory
served directly (and if expressly applicable under Section 2 of this Agreement,
geographic areas within the Distributor Territory served indirectly, by using authorized
subdistributors). These Performance Requirements may be reasonably revised and updated by
Manufacturer to reflect industry improvements in distribution.

	

	 	     2.1.2  
Performance Goals. The parties shall annually set performance goals for the distribution
of Manufacturer’s products on a market-by-market basis for both the Retail Grocery Trade
Territory and the Impulse Trade Territory (the “Performance Goals”), as provided in
Section 2.1.3. The Performance Goals shall take into account (a) the Performance Goals
for the immediately preceding year, (b) actual performance of the Distributor during the
immediately preceding year, (c) any events or situations out of the ordinary that
occurred in the immediately preceding year or are reasonably expected to occur in the
marketplace in the immediately following year, which affected or would reasonably be
expected to affect Distributor’s performance, (d) any reasonably reliable market
performance data for the various markets in which the Distributor and other distributors
distribute substantially the same products of the Manufacturer, (e) changes in the Retail
Grocery Trade Territory and/or the Impulse Trade Territory, including but not limited to
the addition or reduction of additional distributors in any such territory; and (f)
Manufacturer’s own expenditures and programs to promote the sale of Manufacturer’s
Products.

	 	     2.1.3  
Determination of Performance Goals. The Performance Goals for each calendar year for each
market in the Distributor Territory commencing with Performance Goals for the calendar
year 2001 shall be agreed upon on or before December 1 of the prior year. In the event no
agreement has been reached by December 1 of any year (the “Present Year”), then the CEOs
and/or the Vice Presidents of Sales of Manufacturer and Distributor shall attempt to
agree on such Performance Goals on or before January 1 of the succeeding year (the “Next
Year”). If they are unable to agree, the matter will be submitted to binding mediation.
The parties shall have until February 1 of the Next Year to mutually agree upon a
qualified mediator, who shall be a person familiar with the economics and practices of
the food distribution industry and have experience serving as a mediator in commercial
disputes. If the parties are unable to agree upon a single mediator, each party shall
designate its own similarly qualified mediator by March 1 of the Next Year, and the
mediators so designated shall choose a third mediator by April 1. The mediation process
shall be concluded by May 1, and shall be final and binding upon the parties as to
Performance Goals for that current year. The cost of any mediation shall be borne equally
by the parties. Such mediation shall take place in Chicago, Illinois or such other place
as the parties mutually agree.

	

     If
the Performance Goals in any market are not met in any year, then the
Performance Goals for that market for the subsequent year will include nine
months’ goals (January 1 to September 30) as well as annual goals, to
accommodate the cure provisions of Section 8.2.2 below; providing however that
if the Performance Goals are not met in any market in any year as a result of
Manufacturer appointing an additional distributor in any such market during the
relevant period, the Performance Goals for the subsequent year will be adjusted
to reflect the sales of such additional distributor(s). 

	 	     2.1.4 
Distribution Policies. Distributor confirms that it will, except as otherwise specified
in this Agreement, follow Manufacturer’s general distribution policies (the “Distribution
Policies”) as now in effect and as reasonably amended for application to Manufacturer’s
distributors generally upon reasonable written notice to Distributor (see Schedule 2D for
the Distribution Policies as in effect on the date hereof).

	

     2.2 
Accounts. It is agreed that Distributor Territory will include those
channels of trade and geographic areas specified on Schedules 2A and 2B
(including those served on a consignment basis as provided below). Except for
mutually agreed authorized distributors or subdistributors (whether or not
Distributor owns a minority interest therein), Distributor will establish the
distribution coverage needed to carry out Distributor’s obligations to
distribute the Products. Distributor will sell the Products to accounts whether
or not the account wishes to purchase any other products distributed by
Distributor. 

     Distributor
agrees that it will not knowingly, directly or indirectly, through independent
distributors or otherwise, sell, market or distribute the Products to any person
outside the Distributor Territory or for sale outside the Distributor Territory. 

     Distributor
agrees to distribute only to the authorized accounts in the Distributor
Territory in accordance with this Agreement, including Sections 2.2 - 2.4.
In order to carry out the provisions of this Agreement, Distributor will abide
by and, where applicable, impose these contractual restrictions on all the
persons distributing Products under this Agreement who are not presently bound
by an agreement with Distributor, except when otherwise authorized in writing by
the Manufacturer. Notwithstanding the foregoing, nothing in this paragraph shall
permit enlargement of the Distributor Territory. Nonetheless, in the event that
the Products are made available to a non-permitted account, Distributor agrees
to use its best efforts to remedy the situation. Distributor, consistent with
applicable law, will use its best efforts to terminate any distributor or other
person who continues to sell unauthorized accounts. It is understood that the
best efforts obligations of Distributor with respect to the customer/territorial
limitations are to use best efforts, consistent with law, in enforcing such
customer/territorial restrictions under this Agreement and that Distributor
shall not be liable to the Manufacturer for any unauthorized sales or resales by
the other distributors as long as Distributor has not authorized any sales by
other distributors in derogation of the rights retained by the Manufacturer. 

	

     2.3 
Food Service Accounts. Manufacturer reserves the right to sell Products
directly to Food Service accounts (which consist of sales to concessionaires,
non-grocery captive and institutional accounts, restaurants and scooping venues
other than franchises). With respect to distribution of Food Service portion of
the Impulse Trade as provided in Section 2.1 (and which shall include novelties
that are also distributed as provided in Section 2.1 above, and bulk to the
extent permitted) as may be established from time to time by the Manufacturer,
the Distributor shall sell to such Food Service accounts as the Manufacturer may
reasonably designate from time to time. It is understood that there may be
changes in the Manufacturer’s designation of Food Service accounts which
are to be handled by the Distributor, and the parties agree to reach reasonable
accommodations in order to realize the potential for sales of the Products to
Food Service accounts. 

     2.4 
Distribution to Franchisees and Manufacturer-owned scoop shops and retail
locations. To the extent Manufacturer supplies the Products to Distributor,
Distributor agrees to supply the Products, including bulk, to
Manufacturer’s franchised, licensed and Manufacturer-owned scoop shops and
other Manufacturer-owned retail operations in the Distributor Territory on a
drayage basis. Distributor confirms that it will meet Manufacturers’ retail
operations Distribution Requirements and Policies as set forth in Schedule 2.4.
Distributor understands that Manufacturer’s franchise agreements require it
to serve franchise customers first in the event of product shortage. 

     Distributor
will receive a drayage/handling fee per item delivered as established by
Manufacturer, and adjusted on an annual basis in accordance with changes to the
Consumer Price Index; that fee currently being (*) per 2-l/2 gallon bulk tub and
(*) per sleeve of pints and miscellaneous boxed goods, with (*) of the freight
to the Distributor to be the responsibility of Distributor. Manufacturer and
Distributor may mutually agree to adjust the drayage/handling fee on an annual
basis. It is also agreed that Distributor will cooperate with Manufacturer in
the future potential evaluation and implementation of alternate fee systems to
the then current drayage system. 

     2.5 
Distributor’s Directly Owned and Operated Distribution System. It is
agreed that the required form of market delivery by Distributor under this
Agreement is direct store delivery (“DSD”), with a small percentage
distributed by authorized subdistributors of Distributor. DSD is the process by
which consumer demand is fulfilled and delivered at the store level. As part of
this process, Distributor’s personnel are directly responsible for
developing store specific orders, schematics, and replenishment schedules.
Product delivery to the store (not involving a retailer’s warehouse) and
merchandising will be performed by Distributor or a contracted third party. 

     Distributor
agrees that its maximum resale prices on Products resold to subdistributors will
not exceed (*) above the prices paid by Distributor for such Products to the
Manufacturer, including freight, under Section 9. 

     Manufacturer
and Distributor further agree to negotiate in good faith reasonable alternative
pricing and terms for any special accounts (e.g., sales to club stores) where
Manufacturer and Distributor agree with such accounts that Distributor may drop
ship the Products to such account in lieu of providing the additional services
contemplated by this Agreement. If the parties fail to agree, Manufacturer may
make alternative arrangements with such special accounts; providing however that
if Manufacturer makes such alternative arrangements, the Performance Goals will
be adjusted accordingly. 

* This confidential portion
has been omitted and filed separately with the Commission. 

	

     Distributor
agrees that all subdistributors shall be subject to the approval of the
Manufacturer, which may not be unreasonably withheld. In the event that
Distributor acquires or enters into a joint venture or similar arrangement with
any new or existing subdistributors operating in an area not then within
Schedule 2A or Schedule 2B as the case may be, during the term of this
Agreement, and in the event that Manufacturer consents to the geographic
expansion of the Distributor Territory (whether expansion of the Retail Grocery
Trade Territory in Schedule 2A, the Impulse Trade Territory in Schedule 2B, or
the Distributor Territory as a whole), then the provisions of this Agreement
shall apply to the additional distribution business for Manufacturer’s
Products in such additional geographic areas that have been consented to by
Manufacturer. To the extent that Manufacturer does not so consent in writing,
then the applicable territory shall not be enlarged as a result of such
acquisition or joint venture or similar event by Distributor. 

     All
current subdistributors are hereby approved by Manufacturer and are listed on a
Schedule 2.5 attached hereto. Manufacturer shall have the right to suggest
subdistributors subject to the approval of Distributor, which may not be
unreasonably denied. Without limiting any other provision of this Agreement, the
Manufacturer shall also have the right to appoint an additional subdistributor
or, if Distributor does not accept a designated subdistributor, a co-distributor
in an area if Distributor is unable to sell any Products into a particular class
of trade (such as Mom & Pops) or a particular account of significance (an
account with at least six stores) and, provided that this right shall be limited
to sales to such account(s) or class of trade. 

     2.6 
Supply of Products for Distribution. Manufacturer agrees to use its best
efforts to make the Products available to Distributor hereunder F.O.B.
Waterbury, VT, in such quantities and flavor assortments as
Distributor may reasonably require, subject only to Manufacturer’s right,
if reasonably required by force majeure or other unforeseen circumstances
affecting production delays (subject to any priority contractually required by
the franchise agreements referred to above) to allocate Products between all
distributors and franchisees, including Distributor and Manufacturer’s
other distributors (independent or company-owned) in this country or those
buying for distribution in foreign countries. Distributor shall purchase on full
pallet basis (or on a split pallet basis with a picking charge), one flavor per
pallet and on half trailer load minimum basis. 

     2.7 
No Discrimination. In order to ensure that competition for the Products
and products of the Distributor is vigorous, Distributor agrees that all
incentive, commission or other compensation programs or benefits for its route
salesmen or other sales and sales-type employees and other employees directly
involved in the distribution function shall have
incentive/commission/compensation/benefit terms relating to distribution of the
Products of the Manufacturer that are at least equal to those relating to
distribution of products manufactured by Distributor or other products
distributed by Distributor and that the instructions to and conduct of the
Distributor’s personnel in the Distributor Territory shall be implemented
so as not to discriminate, directly or indirectly, against distribution of the
Products of the Manufacturer. 

     2.8 
Co-distribution, etc. As to all markets within the Distributor Territory
where Distributor distributes products directly (or through independent
distributors and subdistributors, if and where so permitted by the express terms
of this Agreement) and where Manufacturer may be selling to other distributors,
Distributor will be a co-distributor with Manufacturer’s other
distributors, and as between Manufacturer and Distributor, Distributor will not
commit any material unfair trade practices as to such other distributors or
attempt to unlawfully interfere with their customers, and Manufacturer, when
acting as a distributor, will not commit any material unfair trade practices as
to Distributor or attempt to unlawfully interfere with Distributor’s
customers, it being understood that neither Distributor nor Manufacturer shall
be responsible for actions taken or not taken by any of the other distributors
or subdistributors used by them. 

3    MARKETING AND SALES 

     Manufacturer
shall be responsible for marketing of the Products in accordance with the
provisions of this Agreement, subject to the following: 

			3.1 		Manufacturer
and Distributor shall regularly exchange by electronic means any information necessary to
the performance of their respective responsibilities and roles hereunder. Manufacturer
will receive from Distributor data provided through the standard UCS 867 product
transfer/resale set. The data, provided weekly, will be of the same quality and coverage
as is currently supplied by Distributor. Each party will cooperate with the other to be
able to receive and transmit data through the standard UCS 867 protocol as soon as
practicable.

	

			3.2 		Manufacturer
will be responsible for the generation and (*) of the cost of the following: all print,
radio, tv or other media advertising placed by the Manufacturer and all consumer
promotions, i.e., scoop trucks, marketing events and community events.

			3.3 		Each
party shall promptly pay, subject to the following provisions, (*) of the cost of all
trade promotions on the Manufacturer’s Products in the Distributor Territory, which shall
not include the foregoing items in Subsection 3.2, but shall include off-invoice,
retailer ads, retailer display specials, bunker programs, etc., other trade promotional
techniques which may be used in lieu of such conventional trade promotions. Distributor
shall pay its (*) share of such trade promotions for all markets in the Distributor
Territory up to the per party amount of (*) per Equivalent Unit (as such term is defined
in Schedule 3.3). In the event Manufacturer’s (*) portion of such trade promotions
exceeds (*) per Equivalent Unit per party, Distributor may in its discretion contribute
its (*) share of the incremental amount of such trade promotions over and above (*) per
Equivalent Unit per party; otherwise, Manufacturer may require that such trade promotion
be carried out by Distributor, but with (*) of the incremental cost of such trade
promotion paid by Manufacturer. Distributor’s contribution shall not in any event exceed
the amount of Manufacturer’s contribution pursuant to this subsection, and shall be
proportionately reduced in the event such trade promotions are less than (*) per
Equivalent Unit as defined herein.

			3.4 		Each
party shall promptly pay, subject to the following provisions, its (*) share of the cost
of slotting expenses for the Products sold by Distributor in the Distributor Territory as
mutually agreed upon by Manufacturer and Distributor, up to a maximum contribution by
Distributor of (*) for each twelve (12) month period commencing with the February 28,
2001 commencement date under this Agreement. Distributor may in its discretion contribute
its (*) share of the incremental amount of such slotting expenses over and above such
contribution of (*); otherwise, Manufacturer may require that Distributor pays such
incremental slotting expenses, but Manufacturer shall be solely responsible for the
incremental amount beyond the Distributor’s (*) contribution per each 12-month period.
Manufacturer and Distributor shall mutually agree, on an annual basis, as to which
Products require such slotting expenditures. Distributor’s contribution shall not in any
event exceed the amount of Manufacturer’s contribution pursuant to this subsection, and
shall be proportionately reduced in the event the total expenditures from both
Manufacturer and Distributor for slotting expenses for Products sold by Distributor in
the Distributor Territory is in any year less than (*).

			3.5 		All
credits and adjustments contemplated by this Section shall be made on a monthly basis,
and any adjustments necessary to “true up” these amounts shall be made on an quarterly
basis, with the final adjustment made promptly after the end of each calendar year or
applicable twelve month period.

			3.6 		It
is understood that, unless otherwise agreed, Manufacturer’s sales representatives shall
make presentations and sales calls to the Retail Trade, as well as to convenience store
chains, national accounts, restaurants and any other accounts designated by Manufacturer,
following reasonable notice to Distributor as to presentations and sales calls in the
Distributor Territory, provided that Distributor personnel in the distribution system may
accompany Manufacturer’s personnel, unless inappropriate in Manufacturer’s judgment, to
assist in the effective promotion of the Products through the distribution system. With
respect to the sale of Products by Distributor to the Impulse Trade Territory (other than
to convenience store chains), Manufacturer has determined that it would be most efficient
for sales calls to be made by Distributor personnel at the direction of the Manufacturer.
In addition, all promotions on the Products must be only those authorized by the
Manufacturer, prior to offering these to accounts.

	

* This confidential portion
has been omitted and filed separately with the Commission. 

	

4     SOCIAL MISSION ACTIVITIES 

     Distributor
recognizes the benefit of the image and reputation of the Products and of the
Manufacturer that has been previously created in the Distributor Territory,
including that part of the image and reputation related to the
Manufacturer’s approach to marketing activities, community oriented events,
promotions or benefits and the Manufacturer’s Social Mission, as set forth
in Schedule 4.1. Distributor acknowledges its responsibility to maintain and
sustain that image and reputation in Distributor activities as a distributor of
the Manufacturer in the Distributor Territory, including the obligations set
forth in Section 4.1 hereof. 

     4.1 
Distributor shall use its best efforts to integrate into its business of
distributing the Products of Manufacturer hereunder a reasonable number (given
the size of Distributor’s operation) of socially responsible activities
which are consistent with those activities and programs which Manufacturer
conducts to implement its social mission, as described in Schedule 4.1 and as
reasonably updated from year to year by Manufacturer upon reasonable notice to
Distributor. The Manufacturer acknowledges that the activities of the
Distributor set forth in Schedule 4.2 are examples of such socially responsible
activities and that activities of the Distributor in the “socially
responsible” arena have been acceptable overall through the date of
execution of this Agreement. However, Distributor as is its custom, will strive
to make improvements to the same as may be reasonable in the circumstances. It
is also understood that, in completing the Questionnaire furnished under
Schedule 4.1 on an annual basis, Distributor shall be entitled not to respond to
the extent that the response would include confidential business information of
Distributor. Material failure by Distributor to identify and implement such
socially responsible activity from time to time, after notice of such failure,
in reasonable detail, from Manufacturer and a 90 days cure period, shall, unless
reasonably cured by Distributor in said cure period, constitute grounds for
termination under Section 8.2.6 without any additional cure period. 

5    DELIVERY; OTHER SERVICES 

     5.1 
Distributor shall be responsible for delivery and resets of the Products and
shall provide the same delivery and reset service and care it provides for its
own products, including service (such intervals in the week as is necessary,
given the retail outlet, to exploit the market potential) for all types of
accounts, products rotation, correct flavor assortment, proper display and
pricing of product, removal of damaged product (provided that in the event that
Product is required to be removed pursuant to a decision of the Manufacturer,
such as discontinuance of a slow moving item, the Distributor shall be solely
entitled to credit for the purchase price previously paid, including freight,
for such Product), assurance of adequate back stock where allowed and display of
merchandising materials in and around the freezer case. Distributor also agrees
to comply with Manufacturer’s general service standards for distributors as
set forth in the Distribution Policies referred to above and including those in
Section 5.2 below. 

     These
services will be provided by Distributor where Distributor delivers its own
products, or as provided elsewhere in this Agreement. To the extent that the
Products are expressly permitted by this Agreement to be delivered by
independent distributors (or subdistributors) used by Distributor, Distributor
will exercise best efforts to cause such independent distributors (or
subdistributors) to provide delivery and reset service and care of the Products
as aforesaid but shall in no event be liable to Manufacturer for any act or
omission in respect thereof by any such distributor. However, in the event that
such independent distributors (or subdistributors) do not provide such delivery
and reset service and care of the Products, Distributor will take action to
correct the deficiency or appoint other distributors (or subdistributors) to
provide the required delivery and care of the Products. 

     5.2 
Temperature/Handling. Distributor shall meet the temperature, handling
and cold chain requirements as specified in Schedules 2D and 2.4. In the event
Manufacturer determines that Products are being handled at improper
temperatures, Manufacturer reserves the right to insist that Product be
destroyed if quality of such Product is adversely affected at any time and
Distributor will remain responsible for payment for the destroyed Products. 

6    OTHER DISTRIBUTION BY THE
DISTRIBUTOR 

     Notwithstanding
any other provision of this Agreement, the parties acknowledge that Distributor
intends to continue its existing business which may be deemed to compete with
Manufacturer’s Products, and may manufacture, sell and/or distribute
additional ice cream products and other products which may compete directly with
Manufacturer’s Products, in all parts of the United States and abroad, to
all classes of trade. Manufacturer agrees that nothing in this Agreement is
intended to, or shall limit or affect in any way such activities by Distributor.
Nothing herein shall be deemed to waive compliance with the commitments of
Distributor in Section 2 hereof. 

	

7    RELATIONSHIP OF DISTRIBUTOR AND
MANUFACTURER 

     The
relationship of Distributor and Manufacturer with respect to sale and purchase
of Products is that of distributor (purchaser) and manufacturer (seller), and
nothing in this Agreement shall be construed to create any agency or partnership
or any other relationship, except as set forth herein. 

     Neither
Distributor nor Manufacturer shall have, nor shall either represent itself as
having, any right, power or authority to create any contract or obligations,
either express or implied, on behalf of, in the name of, or binding upon the
other party, or to pledge the other’s credit or to extend credit in the
other’s name unless the other party shall consent thereto in advance in
writing. Without limitation of the foregoing, Manufacturer shall not make any
representation concerning Distributor or use of Distributor name in
Manufacturer’s marketing and sales effort without Distributor’s
advance written approval. Manufacturer does have the right without prior
approval of Distributor to inform the trade that the Products are being
distributed through the Distributor’s system, and as is necessary to carry
out the purposes of this Agreement. Without limitation to the foregoing,
Distributor shall not make any representation concerning Manufacturer or use of
Manufacturer’s name in Distributor’s marketing and sales effort
without Manufacturer’s advance written approval. Distributor does have the
right without prior approval of Manufacturer to inform the trade that the
Products are being distributed through the Distributor’s system, and as is
necessary to carry out the purposes of this Agreement. 

8    TERM; TERMINATION 

     8.1 
Term. This Agreement shall be binding and fully enforceable upon its
execution and delivery, but the term of this Agreement and any distribution by
Distributor hereunder shall commence February 28, 2001, at which date the 1999
Agreement shall cease to be effective in its entirety (except for the
survivability provisions of Section 16 and the related sections listed therein,
which shall survive except as modified by the terms of this Agreement) as
provided therein. The initial term of this Agreement shall be five (5) years
from February 28, 2001, whereupon the Agreement shall automatically renew for
two (2) successive five (5) year periods, for a total term of fifteen (15)
years. Either party may terminate this Agreement at the end of any five (5) year
period, by providing written notice of its intent to do so three hundred and
sixty five (365) days prior to the date of expiration of each such (5) year
period. This Agreement may also be terminated as provided in Sections 8.2 and
8.3. References in this Agreement to “February 28, 2001” shall mean
immediately after the close of business on February 28, 2001, Eastern Standard
Time. 

     8.2 
Termination for Cause. This Agreement may be terminated for cause as provided in this
Section. 

	 	     8.2.1 
Manufacturer may terminate this Agreement with respect to any market described in
Schedules 2A and 2B if Distributor fails to satisfy the Performance Requirements with
respect to such market, or, if Distributor fails to satisfy the Performance Requirements
in 5 of the 13 largest markets set forth in Schedules 2A and 2B based each year on sales
of the preceding calendar year (under this Agreement or the 1999 Agreement, to the extent
applicable), then the Agreement may be terminated in its entirety, unless in either case,
such default shall have been cured to the reasonable satisfaction of Manufacturer within
sixty (60) days after receipt by Distributor of written notice specifying the default in
reasonable detail.

	 	     8.2.2 
Manufacturer may terminate this Agreement as to any market described in Schedules 2A and
2B if Distributor fails in any year to meet the Performance Goals as to that market, and
does not cure that failure before the expiration of the first nine (9) months of the
following twelve (12) month period, providing such failure is determined to be
predominantly attributable to the actions or inaction of Distributor. Manufacturer may
terminate this Agreement in its entirety if Distributor fails to meet in any calendar
year the Performance Goals as to 5 of the 13 largest markets (“Major Markets
Shortfall”) set forth in Schedules 2A and 2B and does not cure that failure as to
those markets before the expiration of the first nine (9) months of the following twelve
(12) month period (the “Nine Month Period”), providing such failure is
determined to be predominantly attributable to the actions or inaction’s of
Distributor. In order to cure such a failure as to a given market, Distributor must meet
the Performance Goals established for that market for the Nine Month Period. In order to
cure a Major Market Shortfall, Distributor must meet the Performance Goals established
for the Nine Month Period so that there is no longer a Major Market Shortfall as to the
affected markets.

	

     During
the first thirty (30) days of the aforementioned Nine Month Period, the Vice
Presidents of Sales of Manufacturer and Distributor shall attempt to resolve any
dispute as to whether such failure was predominantly attributable to the actions
or inaction of Distributor. In the event the parties are unable to resolve such
dispute through such direct communications within this initial thirty (30) day
period, the parties shall submit such dispute to binding mediation immediately.
After submitting the matter to binding mediation, the parties shall have thirty
(30) days to mutually agree upon a qualified mediator, who shall be a person
familiar with the economics and practices of the food distribution industry and
have experience serving in commercial disputes. If the parties are unable to
agree upon a single mediator, each party shall designate its own similarly
qualified mediator within thirty (30) days (i.e., within sixty (60) days after
the matter is submitted to mediation), and the mediators so designated shall
choose a third mediator within thirty (30) days. The mediation shall be
concluded within six months after first being submitted to mediation and in no
event later than the end of the Nine Month Period. The cost of such mediation
shall be borne equally by the parties and shall take place in Chicago, Illinois
or such other place as the parties may mutually agree. 

	 	     8.2.3 
In the event of a termination pursuant to section 8.2.1 or 8.2.2 above, Distributor shall
have the obligations set forth in section 8.3.1 below, for the nine (9) month period
following such termination notice, with respect to each market described in Schedules 2A
and 2B as to which there has been a termination notice.

	 	     8.2.4 
The failure of Distributor to continue DSD as the method of distribution hereunder shall
entitle Manufacturer to terminate this Agreement in the Distributor Territory as a whole
(if such failure to continue DSD as the method of distribution affects the Distributor
Territory as a whole) or with respect to any market described in Schedules 2A and 2B (if
the failure to continue to DSD as the method of distribution affects such market), unless
such default shall have been cured to the reasonable satisfaction of the Manufacturer
within sixty (60) days after receipt of written notice specifying the failure. The
parties agree that an exit from DSD at the demand or request of a specific customer or
customers, or in a specified geographic portion of the Distributor’s Territory, upon the
approval of Manufacturer and which does not involve a substantial reduction in the use of
DSD, shall not require such notice and may require an adjustment to the Performance Goals
pursuant to mutual agreement.

	 	     8.2.5 
In addition, following a Change in Control as defined herein, Distributor shall give
Manufacturer at least three (3) years’ written notice before implementing any system wide
exit or other reduction of its DSD system which results in a material reduction of such
use of DSD in 5 or more of the 13 largest markets set forth on either or both of
Schedules 2A and 2B. If, during the three (3) year period following a Change of Control,
Distributor provides notice to Manufacturer that Distributor intends to discontinue DSD
as its distribution system as a whole, or in a manner which results in a reduction of
such use as to more than (*) of the sales volume of the Products from the preceding
calendar year (a “substantial reduction”), Manufacturer shall, during the notice period,
have the option to [1] terminate this Agreement, whereupon Distributor shall pay
Manufacturer (in addition to any other remedies available to Manufacturer under this
Agreement) the sum of (*), or [2] Manufacturer may by written notice to Distributor elect
to terminate this Agreement, whereupon for the three (3) year period following such
election by Manufacturer, Distributor must purchase annually from Manufacturer at a
minimum a dollar volume of Products equal in each year to the extrapolated sales (i.e.,
the trend) of Products over the three (3) years immediately preceding such election. The
obligation of Distributor to make such purchases would be secured by a letter of credit
or similar device.

	 	     In
the event Distributor fails to provide Manufacturer with at least three (3) years’
written notice before implementing any system wide exit or other reduction of its DSD
system as specified in this subsection 8.2.5, [1] if Manufacturer elects to terminate
this Agreement as specified above, Distributor shall pay Manufacturer the sum of (*), and
[2] provided that for the three (3) years following the commencement of any such system
wide exit or other reduction of its DSD system, Distributor must purchase annually from
Manufacturer at a minimum a dollar volume of Products equal in each year to the
extrapolated sales (i.e., the trend) of Products over the three (3) years immediately
preceding the commencement of any such system wide exit or other reduction of its DSD
system. The obligation of Distributor to make such purchases will be secured by a letter
of credit or similar device.

	 	     8.2.6 
The nondefaulting party shall be entitled to terminate this Agreement upon the failure of
the other party to comply with any of the other terms set forth herein in any material
respect, which failure shall also have a material adverse effect on Distributor’s
distribution performance in either the Distributor Territory as a whole (in which case
this Agreement may be terminated in its entirety) or with respect to any market described
in Schedules 2A and 2B (in which case this Agreement may be terminated as to such market)
unless such default shall have been cured to the reasonable satisfaction of the
nondefaulting party within sixty (60) days after receipt of written notice specifying the
failure in reasonable detail.

	

* This confidential portion
has been omitted and filed separately with the Commission. 

	

	 	     8.2.7 
The nondefaulting party shall be entitled to terminate this Agreement if (a) the other
party files a voluntary petition of bankruptcy or voluntary petition of seeking
reorganization or the effectuation of a plan or other arrangement with creditors of such
party pursuant to any federal law relating to bankruptcy or any amendment thereof
(“Bankruptcy Code”) or insolvency law; or (b) the other party has filed against it a
petition commencing an involuntary case under the Bankruptcy Code or insolvency law which
shall not have been cured by the withdrawal or dismissal of such petition within sixty
(60) days of the filing of such petition.

	 	     8.2.8 
Without limiting any of the foregoing provisions of this Agreement, if Manufacturer
notifies Distributor with reasonable specificity that a particular account or group of
accounts in a specific market in the Distributor Territory is not, in the reasonable
judgment of Manufacturer, receiving appropriate distribution (i.e. in accordance with the
Performance Requirements or the Performance Goals, as in effect for the applicable
period); Distributor shall endeavor to correct the problem. If following sixty (60) days
from such notice, Manufacturer is not, in its reasonable judgment, satisfied that the
problem has been corrected, Manufacturer may propose a solution. If within a reasonable
period (generally thirty (30) days), Distributor agrees to implement such solution and if
Distributor in fact implements such solution, such notice shall be of no further effect.
If Distributor does not so agree to implement such solution or does not in fact implement
such solution, Manufacturer shall have the right to terminate Distributor’s distribution
rights to such account or group of accounts.

	

     8.3 
Termination Upon Change in Control. Upon a Change in Control (as defined
below) of the Distributor, the Manufacturer may terminate this Agreement upon
nine months notice, and upon a Change in Control (as defined) of Manufacturer,
Distributor may terminate this Agreement upon nine months notice, in each case
given at any time within the nine-month period following the Change in Control
of the other party, provided that if notice of termination for Change of Control
is given more than six months (but not more than nine months) after the Change
of Control, the period of the six month purchase or sale obligation set forth
below shall be shortened by the number of days equal to the number of days by
which the date of the giving of such notice of termination is later than six
months after the date of the Change of Control and the purchase or sale
obligation shall be correspondingly adjusted. 

     A
“Change in Control” of a party means a change in control of that party
of a nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A (or in response to any similar item on any
similar schedule or form) promulgated under the Securities Exchange Act of 1934
(the “Act”), whether or not that party is then subject to such
reporting requirements; provided, however, that, without limitation, such a
Change in Control of that party shall be deemed to have occurred if (a) any
“person” (as such term is used in Section 13(d) and 14(d) of the Act)
is or becomes the “beneficial owner” (as defined in Rule 13d-3 under
the Act), directly or indirectly, of securities of that party representing 50%
or more of the combined voting power of that party’s then outstanding
securities eligible to vote in the election of directors; provided, however,
that in the event, with respect to a Change in Control of Distributor, that
person (or any entity controlled by or controlling that person) is a
manufacturer or distributor of frozen desserts which is a significant
competitive factor in the United States or, with respect to a Change in Control
of Manufacturer, that person (or any entity controlled by or controlling that
person) is a manufacturer or distributor of frozen desserts which is a
significant competitive factor in the United States, the “50%” figure
shall be “35%” in each case (calculated on a “fully-diluted
basis, i.e.,” assuming issuance of all shares issuable upon exercise or
conversion of any outstanding options, warrants or other securities or rights
irrespective of the exercise, conversion or exchange price thereof or any term
limiting the current exercisability); (b) that party is a party to a merger,
consolidation, sale of assets or other reorganization, an issuance of securities
or other transaction, or a proxy contest, as a consequence of which members of
the Board of Directors of that party in office immediately prior to such
transaction or event constitute less than a majority of the Board of Directors
thereafter; or (c) during any period of twelve consecutive months, individuals
who at the beginning of such period constituted the Board of Directors
(including for this purpose any new director whose election or nomination for
election by that party’s stockholders was approved by a vote of at least
two-thirds of the directors then still in office who were directors at the
beginning of such period) cease for any reason to constitute at least a majority
of the Board of Directors of that party. For purposes of clauses (b) and (c) of
this paragraph, with respect to Manufacturer, the term “Board of
Directors” shall mean representatives of the Manufacturer’s
shareholder as long as Manufacturer remains a “close corporation”
under Vermont law. 

	

     Notwithstanding
the foregoing provisions of the definition, a “Change of Control” of
Distributor will not be deemed to have occurred solely because of (i) the
acquisition of securities of Distributor (or any reporting requirement under the
Act relating thereto) by an employee benefit plan maintained by Distributor for
the benefit of employees or by William F. Cronk or T. Gary Rogers or their
“affiliates” or “associates” (as such terms are defined in
Rule 12b-2 under the Act) or members of their family (or trusts for their
benefit) or (ii) any merger, consolidation or reorganization involving
Distributor in which the holders of voting stock having power to cast 80% of the
votes in elections of directors of Distributor immediately prior to such merger,
consolidation or reorganization hold immediately after such transaction voting
stock having power to cast 80% of the votes in elections of directors of the
surviving entity in such transaction, or (iii) the acquisition of securities of
Distributor by persons who are management level employees of Distributor, or any
restructure of Distributor the result of which in an increase in the percentage
ownership of Distributor by persons who are management level employees of
Distributor, and notwithstanding the foregoing provisions of the definition, a
“Change in Control” of Manufacturer will not be deemed to have
occurred solely because of (i) the acquisition of securities of Manufacturer (or
any reporting requirement under the Act relating thereto) by an employee benefit
plan maintained by Manufacturer for the benefit of employees or by or other
members of the executive management or Board of Directors or their
“affiliates” or “associates” (as such terms are defined in
Rule 12b-2 under the Act) or members of their family (or trusts for their
benefit) or (ii) any merger, consolidation or reorganization involving
Manufacturer in which the holders of voting stock having power to cast 80% of
the votes in elections of directors of the Manufacturer immediately prior to
such merger, consolidation or reorganization hold immediately after such
transaction voting stock having power to cast 80% of the votes in elections of
directors of the surviving entity in such transaction, or (iii) the acquisition
of securities of Manufacturer by persons who are management level employees of
Manufacturer, or any restructure of Manufacturer the result of which in an
increase in the percentage ownership of Manufacturer by persons who are
management level employees of Manufacturer. 

	 	     8.3.1 
In the event of termination by Manufacturer for Change in Control of Distributor
hereunder (other than a termination pursuant to 8.2.5 above), Distributor shall be
obligated, during the nine (9) month period following the date of giving of such notice,
to purchase from Manufacturer, in each case in each market area in the Distributor
Territory, where Distributor was a distributor hereunder immediately prior to the
termination notice, on a quarterly basis not less than the same amount of the Products as
were purchased hereunder for resale and resold in such market area during the comparable
calendar quarter of the prior year (under this Agreement or the 1999 Agreement, to the
extent applicable), provided that the amount required to be purchased and resold by
Distributor, during such period shall be reduced by the amount of any increased purchases
and resales during the period by such other person (or the Manufacturer) previously
distributing in such market area and by the amount of any sales of such other person (or
the Manufacturer) making distribution for the first time in such market area of such
termination notice period. A “market” or “market area” shall be any of the areas listed
on Schedules 2A and 2B. It is understood that the amount required to be purchased and
resold by Distributor pursuant to this paragraph shall be reduced for adverse changes in
market conditions beyond the reasonable control of Distributor, including, for example,
failure of the Manufacturer to deliver Product or novelties of the Manufacturer or loss
of a chain due to the Manufacturer’s action or inaction (and not by Distributor action or
inaction), or change in Manufacturer’s pricing or promotional practices, or decline in
consumer preference for super premium ice cream or novelties on a market-wide basis, so
long as Distributor is fulfilling its applicable obligations during the applicable period
under this paragraph of Section 8.3.1 of this Agreement and that the amount required to
be sold by Manufacturer pursuant to this paragraph shall be reduced for adverse changes
in market conditions beyond the reasonable control of Manufacturer. In addition, if
Manufacturer exercises its right to appoint another distributor in a market during this
time, the obligation of Distributor to purchase Products will be adjusted to reflect the
fact that such other distributor is operating in the relevant territory.

	

     In
the event that Distributor fails to comply in a material respect in a market (as
defined above) with the purchase obligations set forth above during the
termination notice period, this failure shall constitute grounds for termination
by the Manufacturer under Section 8.2 of this Agreement, effective immediately
upon written notice to Distributor (notwithstanding any contrary provision in
Section 8.2, including any cure period in which to cure such default that would
otherwise be applicable under Section 8.2), or, alternatively, Manufacturer
shall have the right, by written notice to the Distributor, to shorten the
termination notice period to a shorter period (but not less than 30 additional
days following the date of the Manufacturer’s notice to shorten under this
paragraph). 

	

     The
provisions of this Section 8.3 shall be in addition to the provisions of Section
8.2. 

     8.4 
Certain Obligations. In addition to the applicable provisions above with
respect to certain termination notice periods, Distributor agrees to continue to
use its best efforts hereunder during all applicable termination notice periods
under this Agreement to distribute the Products of the Manufacturer and to
preserve Manufacturer’s shelf position for the replacement distributor(s)
selected by the Manufacturer upon any termination of this Agreement in each
market in the Distributor Territory listed in Schedules 2A and 2B where
Distributor was a distributor hereunder immediately prior to the applicable
termination notice. 

     Upon
any termination of this Agreement, all materials and other data submitted to Distributor
by Manufacturer and still in Distributor possession shall be returned to Manufacturer and
Distributor shall not use the contents thereof. 

     8.6 
Post Termination Obligations. Upon the termination of this Agreement by
Manufacturer or by Distributor, Distributor shall return, and Manufacturer
agrees to repurchase all Products (other than unsaleable Products) at
Distributor’s original purchase price or in the event of Products close to
out-of-code (i.e. less than 60 days before the out of code date) at the
appropriate discount from such original purchase price, all in accordance with
the industry standards, or, at Manufacturer’s option (exercisable by
written notice to Distributor), Distributor shall have the right to sell or
liquidate in the Distributor Territory in a manner approved by Manufacturer its
then-current inventory of Products, but not including unsaleables in accordance
with the provisions of this Agreement. In the event of any return of Products
hereunder, the terminating party (other than under Section 8.1) shall pay (*) of
the applicable reasonable return shipping charges; provided; however, that if
either party terminates for cause, including a termination on account of a
party’s assignment in violation of Section 16 below, then in such incident,
the breaching party shall pay (*) of the applicable reasonable return shipping
charges. For the purposes of this provision, “unsaleables” means
damaged or out-of-code Products which shall be destroyed. All amounts due for
Products sold to Distributor and all other amounts due under Sections 3.2 –
3.5, 8 and 9 and any other provisions of this Agreement shall be immediately due
and payable. Nothing in this Section should affect either party’s
obligations to the other upon termination, including any claims for damages. 

     In
the event this Agreement terminates in accord with the provisions of Section
8.1, each party shall pay (*) of the reasonable return shipping charges. 

9    PRICES FOR PRODUCTS; PAYMENT
TERMS; RESALE PRICES; RELATED MATTERS 

     9.1 
Prices Payable by Distributor. Manufacturer agrees to sell the Products
at the prices determined by Manufacturer from time to time (Manufacturer’s
regular Distributor Prices), which shall initially be as set forth on Schedule
9.1 attached, F.O.B. Waterbury, VT, with freight arranged by
Manufacturer (or as requested by Distributor) using its reasonable efforts to
obtain the best possible freight charge available and reimbursed by Distributor.
Freight shall be split (*) between the parties, payable within 28 days after
receipt of invoice for freight services by the party obligated by this Section
to make such (*) reimbursement to the other party. Manufacturer and Distributor
shall use their freight data and exercise their collective best efforts to
secure the lowest freight cost for such transportation which assure compliance
with the Performance Requirements and Distribution Policies set forth in this
Agreement. Manufacturer may change prices to the Distributor when it changes
price to its other distributors (absent unusual geographic market conditions),
upon not less than reasonable notice to Distributor, which shall normally be not
less than 30 days. 

	 	     9.1.1. 
Rebate. Distributor shall pay to Manufacturer a rebate in an amount equal to (*) on
Distributor’s monthly sales of all Products sold under this Agreement (or the 1999
Agreement, to the extent applicable) by Distributor or to Distributor’s subdistributors
(but excluding sales to or by Non-affiliated subdistributors making purchases in smaller
quantities [i.e., 10 pallets or less on an occasional basis] up to an aggregate of (*) of
Distributor’s monthly sales), for the first twenty-four (24) months of this Agreement
commencing February 28, 2001, payable monthly in arrears twenty-eight (28) days after the
end of the month via Electronic Funds Transfer (EFT)[EDI transaction type 820]. The term
“Non-affiliated subdistributors” shall mean subdistributors in which Distributor does not
own more than twenty percent (20%) of the equity interests.

	

* This confidential portion
has been omitted and filed separately with the Commission. 

	

	 	     9.1.2. 
Contract Initiation Payment. Upon the February 28, 2001 commencement date specified in
Section 8.1 of this Agreement, Distributor shall pay to Manufacturer a contract
initiation payment of (*), via EFT [EDI transaction type 820].

	 	     9.1.3. 
Marketing Incentive Payments. Providing that the Agreement remains in effect through the
respective anniversary dates set forth in this subsection, Distributor shall pay to
Manufacturer marketing incentive payments via EFT [EDI transaction type 820] pursuant to
the following formula and schedule: (a) February 28, 2002 – (*), (b) February 28,
2003 – (*), (c) February 28, 2004 – (*), and (d) February 28, 2005 – (*), provided
however that, as an incentive to Distributor, such marketing incentive payments by
Distributor may be reduced each year to the extent Distributor achieves certain incentive
volume targets established for each such year period by mutual agreement of Manufacturer
and Distributor. Manufacturer and Distributor shall negotiate such annual incentive
volume targets in good faith on an annual basis. 

	

     9.2 
Payment Terms. Payment terms shall be twenty-one (21) days with a 7-day
grace period from the date of Manufacturer’s invoice (which shall be the
post-marked date of the invoice or any earlier date of facsimile transmission or
other delivery to Distributor). Distributor agrees to maintain its internal bill
receipt and payment procedures so that it will be able to meet the payment terms
in the Agreement (and any amounts due under the 1999 Agreement), and the parties
agree that all payments shall be EFT. It is agreed that these are material terms
of this Agreement and that failure of Distributor to make timely payments shall
constitute grounds for termination under Section 8.2.6 (unless cured as provided
therein). Manufacturer also agrees to notify Distributor of any substantial
increase in freight charges before shipment is authorized. 

     9.3 
National Pricing. Notwithstanding the foregoing provisions of Section 2
or this Section 9, it is understood that Manufacturer may, as is common in the
food industry, negotiate “national” or “regional” pricing
agreements with certain accounts (such as airlines or Wal-Mart, to take two
examples) where the Manufacturer’s distributors, including the Distributor
hereunder, continue to sell to such accounts, but this Agreement is modified to
the extent necessary to accommodate such national pricing agreements, subject to
reaching mutual agreement between the parties in each case. The parties agree to
make such necessary amendments to implement agreements reached under this
Section 9.3. In the event that the Distributor does not agree to any such
national pricing arrangement within 14 days after a reasonably specific
presentation of the arrangement to the Distributor, then the Manufacturer shall
have the right to arrange for other distribution for such national pricing
arrangement. 

	 	     9.3.1 
Consignment Sales. Notwithstanding the provisions of Section 2 and this Section 9, it is
understood that Manufacturer may, as is common in the food industry, negotiate certain
consignment arrangements for sales to club stores or Food Service accounts and
Distributor will use its best efforts to distribute the Products to such outlets on a
consignment basis, provided that consignment sales shall require the mutual agreement of
the parties. In the event that the Distributor does not agree to any such consignment
arrangement within 14 days after a reasonably specific presentation of the arrangement to
the Distributor, then the Manufacturer shall have the right to arrange for other
distribution for such consignment arrangement.

	

     9.4 
Resale Prices. Distributor shall resell at such prices as it may determine, and
Manufacturer retains no control over such resale prices. 

     9.5 
Trade Shows. The parties confirm that the arrangements and practices with
respect to trade shows attended by Manufacturer that are currently in effect
under the Prior Agreement shall continue under this Agreement, namely that
Distributor agrees to provide delivery of Products to Trade Shows in the areas
in which Distributor is distributing hereunder at no charge, provided that
Manufacturer provides the Products and necessary freezers for such shows. 

     9.6 
Credit Line. Distributor shall have a line of credit under this Agreement
which shall be reasonably established by Manufacturer consistent with the
payment terms defined herein, and Manufacturer shall have the right, from time
to time at its election, to require C.O.D. payment for any Products at any time
when outstanding receivables owed by Distributor for purchase of the Products of
the Manufacturer (whether or not due) exceed the amount of such credit line or
at any time when the circumstances of Distributor’s financial condition are
such that Manufacturer would be entitled under its regular credit policies to
reduce this amount of the credit line. Said credit line shall be available
unless Distributor is in breach of a material provision of this Agreement or
unless Manufacturer determines, pursuant to the exercise of its regular credit
policies, that Distributor’s financial condition warrants a change in said
credit line. Distributor agrees to pay interest on overdue accounts at an annual
rate equal to the base rate charged to best commercial customers at Fleet Boston
(or its successor) from time to time plus (*) points. Interest shall be payable
to Manufacturer on the last day of each month. 

* This confidential portion
has been omitted and filed separately with the Commission. 

	

10    COMPLIANCE WITH LAWS: QUALITY
CONTROL 

     Each
party covenants and agrees during the term hereof, that it will fully comply
with all applicable laws, ordinances, regulations, licenses and permits of or
issued by any federal, state or local government entity, agency or
instrumentality applicable to its responsibilities hereunder. 

     Manufacturer
shall be responsible for the quality, including proof of quality and quality
control, labeling requirements and truth of labeling, and fitness for human
consumption of the Products delivered hereunder. Manufacturer warrants and
represents that the Products delivered hereunder (1) are not adulterated or
misbranded under the Federal Food Drug and Cosmetic Act, as amended (the
“Act”); and (2) are not articles which may not be shipped pursuant to
Sections 404 or 505 of the Act. Title shall pass upon delivery, F.O.B.
Manufacturer’s plants. Notwithstanding any other provision hereof, the
parties understand that loss or damage to the Products during shipment, after
delivery F.O.B. Manufacturer’s plants, shall be the responsibility of
Distributor. 

     10.1 
Recall Possibility. In the event the Manufacturer determines to recall or
withdraw any of its Products (the “Recalled Products”), Distributor
will use its personnel (or a third party retrieval service if Distributor
reasonably believes the recall or withdrawal will be achieved faster, at less
expense or more efficient) to remove any Recalled Products from accounts to
which it had delivered the Recalled Products (and, where it uses any other
distributors or subdistributors, will use its best efforts to cause such other
persons to do likewise) and shall return (or cause to be returned) to
Manufacturer or dispose of Recalled Products as directed by Manufacturer.
Distributor shall be reimbursed by Manufacturer for all Recalled Products in the
amount of the net purchase price previously paid by Distributor for such
Recalled Products including freight costs and for its reasonable out-of-pocket
expenses for using its personnel or third party service to accomplish such
recall or withdrawal, including disposal costs, with payments by Manufacturer
for Recalled Products being in cash or replacement Products, at
Manufacturer’s option. In the event that any recall or withdrawal of either
party’s products significantly disrupts Distributor’s ability to
distribute the Manufacturer’s Products or Manufacturer’s ability to
have such distribution occur, then Manufacturer and Distributor agree to discuss
in good faith compensation for losses incurred by either party by such
disruption. 

11    HOLD HARMLESS AND INDEMNIFICATION 

     11.1 
It is expressly understood and agreed that Distributor shall not be liable for
and Manufacturer shall hold Distributor harmless from any obligations, claims,
demands, losses, costs, damages, suits, judgments, penalties, expenses and
liabilities of any kind or nature to a person not a party to this Agreement
(“Third Party”) arising directly or indirectly out of or in connection
with this Agreement caused by Manufacturer’s negligence, willful misconduct
or contractual breach or breach of warranty hereunder, including specifically,
but without limitation, any claims against Distributor arising from
Manufacturer’s termination of its relationship with Pillsbury and/or Ice
Cream Partners USA, and further including, but not limited to any costs,
expenses, court costs and reasonable attorneys’ fees incurred by
Distributor by reason of any defense to any claims or lawsuits to which
Distributor has been named a party, excluding any such obligations, claims,
demands, losses, costs, damages, suits, judgments, penalties, expenses and
liabilities caused by the actions or inaction of Distributor or person other
than Manufacturer. 

     11.2 
It is expressly understood and agreed that Manufacturer shall not be liable for
and Distributor shall hold Manufacturer harmless from any obligations, claims,
demands, losses, costs, damages, suits, judgments, penalties, expenses and
liabilities of any kind or nature to a Third Party arising out of or in
connection with this Agreement caused by Distributor’s negligence, willful
misconduct or contractual breach or breach of warranty hereunder, or caused by
Distributor’s interference with the existing contract or agreements between
Manufacturer and Pillsbury and/or Ice Cream Partners USA (provided that the
operative terms of such contract or agreements have been publicly disclosed or
are within the public domain), or caused by the actions or inaction of
Distributor as a result of Distributor commencing distribution of the Products
prior to February 28, 2001 (except as consented to by Manufacturer or as
currently authorized) to accounts in geographic areas added by this Agreement
effective February 28, 2001) including but not limited to any costs, expenses,
court costs and reasonable attorneys’ fees incurred by the Manufacturer by
reason of any defense to any claims or lawsuits to which Manufacturer has been
named a party. 

	

     11.3 
Third Person Claims. Promptly after a party has received notice of or has
knowledge of any claim against it covered by Section 11 by a Third Party or the
commencement of any action or proceeding by a Third Person with respect to any
such claim, such party (sometimes referred to as the “Indemnitee”)
shall give the other party (sometimes referred to as the “Indemnitor”)
written notice of such claim or commencement of such action or proceeding;
provided, however, that the failure to give such notice will not affect the
right to indemnification hereunder with respect to such claim, action or
proceeding, except to the extent that the other party has been actually
prejudiced as a result of such failure. If the Indemnitor has notified the
Indemnitee within thirty (30) days from the receipt of the foregoing notice that
it wishes to defend against the claim by the Third Person, then the Indemnitor
shall have the right to assume and control the defense of the claim by
appropriate proceedings with counsel reasonably acceptable to Indemnitee,
provided that the assumption of such defense by the Indemnitor shall constitute
an acknowledgment of the obligation to indemnify the Indemnitee hereunder. The
Indemnitee may participate in the defense, at its sole expense, of any such
claim for which the Indemnitor shall have assumed the defense pursuant to the
preceding sentence, provided, however, that counsel for the Indemnitor shall act
as lead counsel in all matters pertaining to the defense or settlement of such
claims, suit or proceeding other than claims that in Indemnitee’s
reasonable judgment could have a material and adverse effect on
Indemnitee’s business apart from the payment of money damages. The
Indemnitee shall be entitled to indemnification for the reasonable fees and
expenses of its counsel for any period during which the Indemnitor has not
assumed the defense of any claim. 

12    TRADEMARKS 

     Distributor
understands and agrees that it has received no right or license, express or
implied, to use in any manner the name “Ben & Jerry’s” or any
other trade name or trademark used or owned by Manufacturer now or in the future
with the express written consent of Manufacturer except as set forth herein.
Subject to the terms and conditions of this Agreement and to the continuing
performance by Distributor of its obligations hereunder, Manufacturer hereby
grants Distributor a non-exclusive, non-transferable and personal license to use
Manufacturer’s trademarks and logos (“Marks”) solely in
connection with the distribution, display and sale of the Products pursuant to
this Agreement. Distributor agrees that such Marks shall be used only in the
forms and manners specified and approved in writing in advance by Manufacturer.
All rights granted to Distributor under this Agreement with respect to the Marks
shall immediately cease and terminate upon the termination of this Agreement.
The provisions of this Section shall survive termination. 

13    CONFIDENTIAL INFORMATION 

     Confidential
Information about a party learned under this Agreement shall not be used during
or after the term of this Agreement except for the purpose of this Agreement
and, without limiting the foregoing, such information as to the Manufacturer may
not be used by the Distributor in connection with the production, marketing,
distribution or sale of Distributor’s products. Confidential Information
shall, for purposes of this Agreement, include all information relating to a
party, its business and prospect, disclosed by such party from time to time to
the other party in any manner, whether orally, visually or in tangible form
(including, without limitation, documents, devices and computer readable media)
and all copies thereof, created by either party. The term “Confidential
Information” shall be deemed to include all notes, analyses, compilations,
studies, interpretations or other documents prepared by a party which contain,
reflect or are based upon the information furnished to such party by the other
party pursuant hereto. Confidential Information shall not include any
information that: 

	 	     (a)
was in a party’s possession prior to disclosure by the other party hereunder, provided
such information is not known by such party to be subject to another confidentiality
agreement with or secrecy obligation to the other party;

	 	     (b)
was generally known in the ice cream industry at the time of disclosure to a party
hereunder, or becomes so generally known after such disclosure, through no act of such
party;

	

	 	     (c)
has come into the possession of a party from a third party who is not known by such party
to be under any obligation to the other party to maintain the confidentiality of such
information; or

	 	     (d)
was independently developed by a party without the use of any Confidential Information of
the other party, to the extent that such independent development is reasonably
established by such first party to the other party.

	

14    ENTIRE AGREEMENT; SURVIVAL;
SEVERABILITY 

     This
Agreement (and any documents referred to herein) represents the entire agreement
and understanding of the parties with respect to the distribution, at the start
of the term of this Agreement commencing February 28, 2001, as provided in
Section 8.1 below, of Products of the Manufacturer by the Distributor, and there
are no representations, warranties or conditions or agreements (other than
implementing invoices, purchase orders and the like necessary to implement this
Agreement) not contained herein (or in any documents not referred to herein)
that constitute any part hereof or that are being relied upon by any party
hereunder. Notwithstanding any termination of this Agreement, all claims arising
prior to such termination for any breach of or for any amount due under this
Agreement (excluding any such claims that have been satisfied, waived or
released prior to such termination) under this Agreement shall survive such
termination, and in addition, the following sections of this Agreement shall
survive any termination of the Agreement: 3.2 – 3.5 (as to
Distributor’s obligations to pay sums owing for the period through
termination), 8, 9 (as to Distributor’s obligations to pay sums owing for
the period through termination), 11, 12, 13, 14, 16 and 17. If any provision of
this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the other provisions shall nevertheless be in full force and
effect without being impaired or invalidated in any way. 

15    NEGOTIATION OF AGREEMENT 

     Each
party and its counsel have cooperated in the drafting and preparation of this
Agreement and the documents referred to herein, and any and all drafts relating
thereto shall be deemed the work product of the parties and may not be construed
against any party by reason of its preparation. Accordingly, any rule of law or
any legal decision that would require interpretation of any ambiguities in this
Agreement against the party that drafted it is of no application and is hereby
expressly waived. 

16    AMENDMENT AND NON-ASSIGNABILITY
OF AGREEMENT 

     This
Agreement may not be amended or modified except by an instrument in writing
signed by an authorized officer of each party. It is agreed that neither party
shall transfer or assign this Agreement or any part hereof or any right arising
hereunder, by operation of law or otherwise, without the prior written consent
of the other. Any purported assignment without consent shall be void and of no
force or effect or, at the other party’s option, shall immediately
terminate this Agreement. Subject to the foregoing, this Agreement shall be
binding on the respective parties and their successors and assigns. 

     No
waiver by either party of any default or breach of any covenant hereunder shall
be implied from any omission by either party to take action on account of such
default if such default persists or is repeated. No express waiver shall affect
any default other than the default specified in the waiver, and then said waiver
shall be operative only for the time and to the extent therein stated. Waivers
by either party of any covenant, term or condition contained herein shall not be
construed as a waiver of any subsequent breach of the same covenant term or
condition. The consent or approval by either party to or of any act by either
party requiring further consent or approval shall not be deemed to waive or
render unnecessary consent or approval to or of any subsequent similar acts. If
any provision of this Amendment is held by a court of competent jurisdiction to
be invalid, void, or unenforceable, the remaining provisions shall nevertheless
continue in full force without being impaired or invalidated in any way. 

     No
provision of any other instrument, including the Schedules incorporated herein,
purchase orders, invoices, bills of sale or like instrument which is
inconsistent or conflicts with this Agreement shall control or override any
provision of this Agreement. 

	

17    WAIVER OF JURY RIGHTS; GOVERNING
LAW; JURISDICTION 

     Each
of the parties hereto irrevocably waives all rights to a trial by jury with
respect to any dispute relating to this Agreement, the subject matter hereof or
the entering into or termination of this Agreement (a “Dispute”). This
Agreement and all actions related hereto shall be governed by, and any dispute
shall be resolved in accordance with, the laws of the State of Delaware,
excluding its internal choice of law principles. 

     Except
as expressly provided in Section 2.1.2, 2.1.3 and 8.2 above, in the event of any
Dispute, such Dispute, if not resolved in the ordinary course between
representatives of the parties, shall be submitted for settlement negotiation
between the Chief Executive Officer of Manufacturer and Chief Executive Officer
of Distributor, and if such procedure does not resolve such Dispute within 30
days after a request for such settlement negotiation to the other party, then
and only then shall all such Disputes be resolved exclusively by the process of
litigation in accordance with this Section. If such litigation is brought by
Manufacturer or by Distributor, it shall be brought in the State of Delaware. 

     With
respect to any litigation relative to any Dispute that has been commenced in
accordance with the foregoing provisions as to where and when such litigation
may be brought, the parties each hereby: (i) agree that each party has
sufficient contacts with Delaware to subject it to the personal jurisdiction of
the state and federal courts located in Delaware for purposes of any such Proper
Action (a “Proper Action”); (ii) agree that venue of any Proper Action
properly lies in Delaware; (iii) waives and agrees not to assert in any Proper
Action any claim that it is not subject personally to the jurisdiction of the
above-named courts, such action should be dismissed on grounds of lack of venue
or forum non conveniens; should be transferred to any court other than the
above-named courts or should be stayed by reason of the pendency of some other
proceeding in any court other than the above-named courts; (iv) consents and
agrees that service of process in any Proper Action may be made in any manner
permitted by law or by registered or certified mail, return receipt requested,
at its principal place of business, and that service made in accordance with the
foregoing is reasonably calculated to give actual notice of any such action; and
(v) waives and agrees not to assert in any Proper Action any claim that service
of process made in accordance with the foregoing does not constitute good and
sufficient service of process, including upon written notice. Notwithstanding
the foregoing, any proceeding for temporary restraining order or preliminary
injunction may be brought without resort to the settlement mechanics described
but shall only be brought in accordance with the foregoing provisions as to
where litigation with respect to any Dispute may be brought. 

18    PUBLICITY 

     Distributor
shall provide to Manufacturer for prior review and timely approval
Distributor’s initial press release on the entering into of this Agreement
(or the commencement of distribution hereunder), providing however that such
approval by Manufacturer shall not be unreasonably withheld or delayed. The
parties shall not otherwise make any public release prior to October 17, 2000,
except as may be required by federal or state securities laws (after
consultation with securities law counsel for the other party). 

19    NOTICES 

     Any
notices to be given by either party to the other shall be in writing by personal
delivery or by mail, registered or certified, postage prepaid with return
receipt requested, or by facsimile (only with receipt confirmed). Notices shall
be addressed to the parties at the addresses set forth on page one or to said
other address as shall have been so notified to the other party in accordance
with this Section 21. Notices to Distributor shall be addressed to William C.
Collett, Treasurer, Dreyer’s Grand Ice Cream, Inc., 5929 College Avenue,
Oakland, California 94618, with a copy to Mark LeHocky, General Counsel,
Dreyer’s Grand Ice Cream, Inc., 5929 College Avenue, Oakland, California,
94618, Notices to Manufacturer shall be addressed to Chief Executive Officer,
Ben & Jerry’s Homemade, Inc., 30 Community Drive, South Burlington,
Vermont, 05403-6828, with a copy to Ropes & Gray, One International Place,
Boston, MA 02110, Attention: Howard K. Fuguet, Esq., and a copy to General
Counsel, Unilever USA, 390 Park Avenue, New York, NY 10022-4698. 

	

     IN
WITNESS WHEREOF, Ben & Jerry’s Homemade, Inc. and Dreyer’s Grand Ice Cream, Inc., have
each executed and delivered this Agreement as of the day and year first above written. 

	WITNESSED:

/s/ Mark LeHocky 		DREYER’S GRAND ICE CREAM, INC.

By: /s/ Tom Delaplane
       ——————————————

       Thomas Delaplane
Title:
Vice President, Sales 

	WITNESSED:

/s/  Drake Wallis 		BEN & JERRY’S HOMEMADE, INC.

By: /s/ Perry Odak
       ——————————————

       Perry Odak
Title:  Chief Executive Officer 

	

LIST OF
EXHIBITS AND SCHEDULES

	Schedule 1A		
Manufacturer’s Trademarks 

	Schedule 1B		
Manufacturer’s Products 

	Schedule 2A	 	
Distributor Territory – Retail Grocery Trade 

	Schedule 2B 		
Distributor Territory – Impulse Trade 

	Schedule 2C-1		
Performance Requirements – Retail Grocery Trade 

	Schedule 2C-2		
Performance Requirements – Impulse Trade 

	Schedule 2D		
Distribution Policies 

	Schedule 2.4		
Performance Requirements and Distribution Policies – Franchisees and Manufacturer-owned
Retail Outlets 

	Schedule 3.2		
Equivalent Unit (EU) Conversion Chart 

	Schedule 4.1		
Manufacturer’s Social Mission 

	Schedule 4.2		
Distributor’s Social Activities Questionnaire 

	Schedule 9.1		
Distributor Prices 

	

SCHEDULE 1A 

Principal Trade Names 

“Ben & Jerry’s” 

SCHEDULE 1B 

Manufacturer’s
Products

     All
presently available “Ben & Jerry’s” branded frozen desserts,
including pints, quarts, half gallons, bulk, single serve and novelties
(including in each case ice cream, yogurt and sorbet). 

	

SCHEDULE 2A – DISTRIBUTOR TERRITORY
– Retail Grocery Trade 

Delaware
Washington
Illinois

Wisconsin
Colorado
Oregon
Alaska
Arizona
Ohio
Missouri
Indiana
Iowa
Virginia
Utah
Idaho

Nebraska
Kansas
California
Minnesota
Texas [excluding West Texas]
Florida
Georgia
Maryland

Washington, D.C.
New Jersey
New York [excluding Upstate New York]
Philadelphia, Pennsylvania
North Dakota

South Dakota
Wyoming
West Virginia
Hawaii
Nevada [excluding Las Vegas] 

	

SCHEDULE 2B
– DISTRIBUTOR TERRITORY – Impulse Trade

Washington
Wisconsin
Colorado
Alaska

Ohio
Missouri
Iowa
Virginia [excluding Eastern Virginia]
West Virginia
Utah
Michigan [excluding
Eastern Michigan]
Idaho
Nebraska
Kansas
Southern California
Minnesota
Texas

Maryland
Washington, D.C. [account specific]
New York [excluding Upstate New York]

Kentucky
Wyoming
Nevada [excluding Las Vegas]
Louisiana [excluding Eastern Louisiana] 

	

FIRST
AMENDMENT TO 2000 DISTRIBUTION AGREEMENT

     Amendment
(the “Amendment”) dated as of January 19, 2001 to the Distribution
Agreement (the “Agreement”), dated as of October 10, 2000, by and
between Dreyer’s Grand Ice Cream, Inc. and Ben & Jerry’s Homemade,
Inc. 

     WHEREAS,
the parties wish to amend the Agreement to change the effective date of
commencement of distribution by the Distributor under the Agreement as provided
in Section 8.1 of the Agreement. 

     NOW
THERFORE, in consideration of these promises, the mutual promises of the parties
and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties agree as follows: 

			1. 		Definitions.
All capitalized terms used not defined herein shall have the meanings given to them in
the Agreement.

			2.		Date
of Commencement of Distribution. The parties agree that the term of the Agreement (and
the distribution of the Products thereunder by the Distributor) shall commence on March
5, 2001 rather than on February 28, 2001 as is currently provided in the Agreement.
Accordingly, the following sections of the Agreement are hereby amended:

					2.1		Section
3.4 is hereby amended to delete “February 28, 2001” from the fixth/sixth line and
replacing the same with “March 5, 2001”. 

					2.2  		Section
8.1 is hereby amended to delete “February 28, 2001” from the third line, sixth line and
twelfth line of such section and replacing the same in each case with “March 5, 2001”. 

					2.3  		Section
9.1.1 is hereby amended to delete “February 28, 2001” fom the sixth/seventh line and
replacing the same with “March 5, 2001”. 

					2.4  		Section
9.1.2 is hereby amended to delete “February 28, 2001” from the first line and replacing
the same with “March 5, 2001”. 

					2.5  		Section
9.1.3 is hereby amended to: (i) delete “February 28, 2002” from the fourth line and
replacing the same with “March 5, 2002”; (ii) delete “February 28, 2003” from the fifth
line and replacing the same with “March 5, 2003”; (iii) delete “February 28, 2004” from
the sixth line and replacing the same with “March 5, 2004”; and (iv) delete “February 28,
2005” from the seventh line and replacing the same with “March 5, 2005”. 

					2.6  		Section
11.2 is hereby amended to delete “February 28, 2001” from the tenth line and
eleventh/twelfth line of such section and replacing the same with “March 5, 2001”. 

	

					2.7  		Section
14 is hereby amended to delete “February 28, 2001” from the third line and replacing the
same with “March 5, 2001”. 

			3. 		Counterparts.
This Amendment may be executed in counterparts, each of which shall be deemed to
constitute an original, but all of which together shall constitute one and the same
instrument.

			4. 		No
Other Changes. Except as modified by this Agreement, the Agreement shall remain in full
force and effect.

	

[The Remainder of This
Page is Intentionally Left Blank.] 

	

     IN
WITNESS WHEREOF, the parties have entered into this Amendment as of the date first
written above. 

	DREYER’S GRAND ICE CREAM, INC.		BEN & JERRY’S HOMEMADE, INC.
	 
	By:  /s/ Tom Delaplane
——————————————		By:  /s/ Chuck Green
——————————————
	Name: Thomas Delaplane 		Name: Chuck Green 
	Title:  Vice President, Sales		Title:  Sr. Director of Sales & DistributionForm 10-K

	

EXHIBIT 10.23 

DREYER’S GRAND
ICE CREAM, INC.

STOCK OPTION
PLAN (1993)
(as amended)*

1. Purpose 

     The
purpose of the Plan is to provide a vehicle under which a variety of stock
option awards may be granted to employees and directors of the Company and its
Subsidiaries to further the profits and prosperity of the Company and its
Subsidiaries. 

2. Definitions 

			A. 		“Award”
means any form of stock option granted under the Plan.

			B. 		“Award
Notice” means any written notice from the Company to a Participant or agreement between
the Company and a Participant that establishes the terms applicable to an Award.

			C. 		“Board
of Directors” means the Board of Directors of the Company.

			D. 		“Code”
means the Internal Revenue Code of 1986, as amended.

			E. 		“Committee”
means the Compensation Committee of the Board of Directors, or such other committee
designated by the Board of Directors, which is authorized to administer the Plan under
Section 3 hereof. The Committee, and any separate committee to which it delegates any of
its authority and duties under the Plan, shall each have membership composition which
enable the Plan to qualify under Rule 16b-3 with regard to Awards to persons who are
subject to Section 16 of the Exchange Act.

			F. 		“Common
Stock” means common stock of the Company.

			G. 		“Company”
means Dreyer’s Grand Ice Cream, Inc., a Delaware corporation.

			H. 		“Director”
means a member of the Board of Directors.

			I. 		“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

			J. 		“Fair
Market Value” means, as of a specified date, the mean of the high and the low sales price
of one share of Common Stock on the over-the-counter market or the closing price on the
principal stock exchange where the Company’s stock prices are officially quoted, or if
not traded on that date, then on the date last traded. If for any reason the Company’s
stock ceases to be traded on the over-the-counter market or listed on a stock exchange,
the Committee shall establish the method for determining the Fair Market Value of the
Common Stock. 

* Also reflects adjustments
for October 30, 1997 2-for-1 Stock Split. 

1 

	

			K. 		“Key
Employee” means any employee of the Company or a Subsidiary responsible for the
management of the business of the Company (or a Subsidiary) who is in a position to make
substantial contributions to the sound performance of the Company (or a Subsidiary). The
term “Key Employee” shall include officers as well as other employees devoting full time
to the Company (or a Subsidiary) and shall include Directors who are also active officers
or employees of the Company (or a Subsidiary).

			L. 		“Non-Employee
Director” means a Director who is not an employee of the Company or a Subsidiary.

			M. 		“Participant”
means any individual to whom an Award is granted under the Plan.

			N. 		“Plan”
means this Plan, which shall be known as the Dreyer’s Grand Ice Cream, Inc. Stock Option
Plan (1993).

			O. 		“Rule
16b-3” means Rule 16b-3 issued under the Exchange Act or any successor rule.

			P. 		“Subsidiary”
means a corporation or other business entity (i) of which the Company directly or
indirectly has an ownership interest of 50% or more, or (ii) of which it has a right to
elect or appoint 50% or more of the board of directors or other governing body.

3. Administration. 

			A. 		The
Plan shall be administered by the Committee. Subject to the terms and conditions of this
Plan, the Committee shall have the authority to:

					(i)  		interpret
and determine all questions of policy and expediency pertaining to the Plan; 

					(ii)  		adopt
such rules, regulations, agreements and instruments as it deems necessary for the Plan’s
proper administration; 

					(iii)  		select
Key Employees to receive Awards; 

					(iv)  		determine
the form and terms of Awards; 

					(v)  		determine
the number of shares subject to Awards; 

	

2 

	

					(vi)  		determine
whether Awards will be granted singly, in combination, in tandem, in replacement of, or
as alternatives to other grants under the Plan or any other incentive or compensation
plan of the Company, a Subsidiary or an acquired business unit; 

					(vii)  		grant
waivers of Plan or Award conditions; 

					(viii)  		accelerate
the vesting of Awards; 

					(ix)  		correct
any defect, supply any omission, or reconcile any inconsistency in the Plan, any Award or
any Award Notice; and 

					(x)  		take
any and all other actions it deems necessary or advisable for the proper administration
of the Plan. 

			B. 		The
interpretation and construction of any provision of the Plan by the Committee shall be
final, conclusive and binding on all parties, including the Company, its Subsidiaries and
stockholders, and the Participants, their estates, executors, administrators, heirs and
assigns. No member of the Committee shall be liable for any action or determination made
by him in good faith.

			C. 		The
Committee may adopt such Plan amendments, procedures, regulations, subplans and the like
as it deems are necessary to enable Key Employees and Directors who are foreign nationals
or employed outside the United States to receive Awards.

			D. 		The
Committee may delegate its authority to grant and administer Awards to a separate
committee; however, only the Committee may grant and administer Awards with respect to
persons who are subject to Section 16 of the Exchange Act.

4. Eligibility 

			A. 		Any
Key Employee is eligible to become a Participant in the Plan.

			B. 		Non-Employee
Directors shall receive Awards in accordance with Section 7.

5. Stock Subject to the Plan. 

			A. 		The
aggregate number of shares of Common Stock which may be delivered on exercise of options
under this Plan shall not exceed six million four hundred thousand (6,400,000) shares,
subject to adjustment as provided hereinafter; provided, however, that the aggregate
amount of shares of Common Stock which may be delivered upon exercise of options under
this Plan shall increase, effective on the date of each annual meeting of stockholders,
beginning 2001 and ending with the annual meeting in 2005, by 848,425 shares. If, at any
time during the term of this Plan, an option granted under this Plan shall have expired
or terminated for any reason without having been exercised in full, the unpurchased
shares shall become available for option to other employees. ** 

	

** Section 5.A was amended
by the Board of Directors on November 3, 2000, subject to approval by the
stockholders at the May 9, 2001 Annual Meeting of Stockholders. 

3 

	

			B. 		In
the event that (i) the number of outstanding shares of Common Stock shall be changed by
reason of split-ups, combinations or reclassifications of shares or otherwise, (ii) any
share dividends are distributed to the holders of Common Stock or (iii) the Common Stock
is converted into or exchanged for other shares as a result of any merger, consolidation
or recapitalization then, in any such case, the number of shares for which options may
thereafter be granted under this Plan, both in the aggregate and as to any individual,
and the number of shares then subject to options theretofore granted under this Plan and
the price per share payable upon exercise of such options shall be appropriately adjusted
by the Committee so as to reflect such change.

			C. 		The
shares of Common Stock available under the Plan may be authorized and unissued shares or
treasury shares.

	

6. Term 

     This
Plan shall be effective and operative, subject to approval of the stockholders
of the Company within twelve months after its adoption by the Board of
Directors, from the date that the Plan is approved by the Board of Directors and
shall remain in effect until terminated by the Board of Directors. 

7. Awards to Non-Employee Directors 

     Non-Employee
Directors shall receive awards in accordance with the following terms: 

			A. 		On
the day of adoption of this Plan by the Company’s stockholders (the “Approval Date”),
each Non-Employee Director shall receive a non-qualified option for 10,000 shares of
Common Stock.

			B. 		After
the Approval Date, any person who is appointed or elected a Non-Employee Director shall
receive a non-qualified stock option for 10,000 shares of Common Stock on the date such
person is so appointed or elected.

			C. 		On
each anniversary of the Approval Date each Non-Employee Director shall receive a
non-qualified stock option for 3,000 shares of Common Stock.

			D. 		Options
to Non-Employee Directors shall be subject to the following terms: (i) the exercise price
shall be equal to 100% of the Fair Market Value of the Common Stock on the date of the
grant, payable in accordance with all the alternatives stated in Section 8.B (ii); (ii)
the term of the options shall be 10 years; (iii) the options shall be exercisable
beginning 6 months after the date of the grant; and (iv) the options shall be subject to
Section 10.

	

4 

	

8.  Stock Options 

			A. 		Awards
shall be granted in the form of stock options. Stock options may be incentive stock
options within the meaning of Section 422 of the Code or non-qualified stock options
(i.e., stock options which are not incentive stock options).

			B. 		Subject
to Section 8.C relating to incentive stock options, options shall be in such form and
contain such terms as the Committee deems appropriate. While the terms of options need
not be identical, each option shall be subject to the following terms:

					(i)  		The
exercise price shall be the price set by the Committee but may not be less than 100% of
the Fair Market Value of the Common Stock on the date of the grant. 

					(ii)  		The
exercise price shall be paid in cash (including check, bank draft, or money order), or
all or part of the purchase price may be paid by delivery of the optionee’s delivery of
Common Stock, already owned by the Participant for at least six (6) months and valued at
its Fair Market Value, or any combination of the foregoing methods of payment. 

					(iii)  		An
option shall be treated as exercised on the later of (i) the date that proper notice of
exercise accompanied by the aggregate exercise price is received by the Company, or (ii)
such exercise date as may be specified in such proper notice when accompanied by such
aggregate exercise price. 

					(iv)  		The
term of an option may not be greater than 10 years from the date of the grant. 

					(v)  		Neither
a person to whom an option is granted nor his legal representative, heir, legatee or
distributee shall be deemed to be the holder of, or to have any of the rights of a holder
with respect to, any shares subject to such option unless and until he has exercised his
option. 

			C. 		The
following special terms shall apply to grants of incentive stock options:

					(i)  		No
incentive stock option shall be granted after the tenth (10th) anniversary of the date
the Plan is adopted by the Board of Directors. 

					(ii)  		Subject
to Section 8.C. (iii), the exercise price under each incentive stock option shall not be
less than 100% of the Fair Market Value of the Common Stock on the date of the grant. 

	

5 

	

					(iii)  		No
incentive stock option shall be granted to any employee who directly or indirectly owns
stock possessing more than 10% of the total combined voting power of all classes of stock
of the Company, unless the exercise price is at least 110% of the Fair Market Value of
the Common Stock on the date of the grant and such option is not exercisable after the
expiration of 5 years from the date of the grant. 

					(iv)  		No
incentive stock option shall be granted to a person in his capacity as a Key Employee of
a Subsidiary if the Company has less than a 50% ownership interest in such Subsidiary. 

					(v)  		Incentive
stock options shall contain such other terms as may be necessary to qualify the options
granted therein as incentive stock options pursuant to Section 422 of the Code, or any
successor statute. 

9. Reload Options 

			A. 		Concurrently
with the award of options to any Participant, the Committee may authorize reload options
(“Reload Options”) to purchase for cash or shares a number of shares of the Common Stock.
The number of Reload Options shall equal:

					(i)  		the
number of shares of Common Stock used to exercise the underlying options; and 

					(ii)  		the
number of shares of Common Stock used to satisfy any tax withholding requirement incident
to the exercise of the underlying option, including shares withheld from those that would
otherwise be issuable to the optionee pursuant to exercise of the subject option. The
grant of a Reload Option will become effective upon the exercise of the underlying
options or Reload Options through the use of shares of Common Stock held by the optionee
for at least six (6) months. 

			B. 		Notwithstanding
the fact that the underlying option may be an Incentive Stock Option, a Reload Option is
not intended to qualify as an “incentive stock option” within the meaning of Section 422
of the Code.

			C. 		Each
Award Notice shall state whether the Committee has authorized Reload Options with respect
to the underlying options. Upon the exercise of an underlying option or other Reload
Option, the Reload Option will be evidenced by an amendment to the underlying Award
Notice.

			D. 		The
option price per share of Common Stock deliverable upon the exercise of a Reload Option
shall be the Fair Market Value of a share of Common Stock on the date the grant of the
Reload Option becomes effective.

			E. 		Each
Reload Option is fully exercisable six (6) months from the effective date of grant. The
term of each Reload Option shall be equal to the remaining option term of the underlying
option.

	

6 

	

			F. 		No
additional Reload Options shall be granted when options or Reload Options are exercised
pursuant to the terms of this Plan following cessation of the optionee’s employment with
the Company for any reason.

10. Exercise of Stock Option Upon
Termination of Employment or Services 

			A. 		Options
granted under Section 7 shall be exercisable upon the Participant’s termination of
service within the following periods only. Subject to Section 17, stock options to other
Participants may permit the exercise of options upon the Participant’s termination of
employment within the following periods, or such shorter periods as determined by the
Committee at the time of grant:

					(i)  		if
on account of death, within 24 months of such event by the person or persons to whom the
Participant’s rights pass by will or the laws of descent or distribution. 

					(ii)  		if
on account of disability (as defined in Section 22(e)(3) of the Code or any successor
statute), non-qualified stock options may be exercised within 24 months of such
termination and incentive stock options within 12 months. 

					(iii)  		if
on account of retirement (as defined from time to time by Company policy), non-qualified
stock options may be exercised within 24 months of such termination and incentive stock
options with 3 months. 

					(iv)  		if
for any reason other than death, disability or retirement (as defined from time to time
by Company policy), options may be exercised within 3 months of such termination. 

			B. 		An
unexercised option shall be exercisable only to the extent that such option was
exercisable on the date the Participant’s employment or service terminated. However,
terms relating to the exercisability of options may be amended by the Committee before or
after such termination, except in respect to options granted under Section 7.

			C. 		In
no case may an unexercised option be exercised to any extent by anyone after expiration
of its term.

11. Acceleration of Vesting of
Options. 

			A. 		In
the event of a Change in Control (as defined below), death of an optionee or retirement
of an optionee (as defined from time to time by Company policy), all options which have
not yet vested shall vest, mature and become exercisable in whole or in part immediately
prior to the event constituting the Change of Control, or immediately upon the death or
retirement of such optionee.

	

7 

	

			B. 		A
Change of Control for these purposes shall be defined as, (i) the acquisition by any
person of beneficial ownership of forty percent (40%) or more of the combined voting
power of the Company’s outstanding securities immediately after such acquisition (which
forty percent (40%) shall be calculated after including the dilutive effect of the
conversion or exchange of any outstanding securities of the Company convertible into or
exchangeable for voting securities), or (ii) a change in the composition of majority
membership of the Board of Directors over any two-year period beginning with the date of
adoption of this Plan by the Board of Directors, or (iii) a change in ownership of the
Company such that the Company becomes subject to the delisting of its Common Stock from
the NASDAQ National Market System, or (iv) the approval by the Board of Directors of the
sale of all or substantially all of the assets of the Company, or (v) the approval by the
Board of Directors of any merger, consolidation, issuance of securities or purchase of
assets, the result of which would be the occurrence of any event described in clause (i),
(ii) or (iii) above. Notwithstanding anything to the contrary in this Section 11.B,
acquisitions by any person (or any group of which such a person is a member) who is as of
the date of adoption of this Plan by the Board of Directors, a member of the Board of
Directors, of beneficial ownership of forty percent (40%) or more of the combined voting
power of the Company’s outstanding securities immediately after such acquisition
(calculation of such forty percent (40%) being made as described above), shall not be
deemed a Change of Control for purposes of this Plan.

	

12. Nonassignability 

     The
rights of a Participant under the Plan shall not be assignable by such
Participant, by operation of law or otherwise, except by will or the laws of
descent and distribution. During the lifetime of the person to whom a stock
option is granted, he or she alone may exercise it. 

13. Payment of Withholding Taxes 

			A. 		As
a condition to receiving or exercising an Award, as the case may be, the Participant
shall pay to the Company the amount of all applicable federal, state, local and foreign
taxes required by law to be paid or withheld relating to receipt or exercise of the Award.

			B. 		An
optionee may satisfy such withholding requirements in whole or in part by directing the
Company to withhold shares from those that would otherwise be issuable to the Participant
or by otherwise tendering other shares of Common Stock owned by the Participant. The
withheld shares and other tendered shares will be valued at the Fair Market Value as of
the date that the tax withholding obligation arises.

	

8 

	

14. Amendments 

     The
Board of Directors may amend the Plan at any time and from time to time,
provided however that the Board shall not amend the terms of the Plan more
frequently than permitted under Rule 16b-3 in regard to provisions that affect
persons receiving Awards under Section 7. Rights and obligations under any Award
granted before amendment of the Plan shall not be materially altered or impaired
adversely by such amendment, except with consent of the person to whom the Award
was granted. 

15. Regulatory Approvals and Listings 

     Notwithstanding
any other provision in the Plan, the Company shall have no obligation to issue
or deliver certificates of Common Stock under the Plan prior to (A) obtaining
approval from any governmental agency which the Company determines is necessary
or advisable, (B) admission of such shares to listing on the stock exchange on
which the Common Stock may be listed and (C) completion of any registration or
other qualification of such shares under any state or federal law or ruling of
any governmental body which the Company determines to be necessary or advisable. 

16. No Right to Continued Employment
or Grants 

     Participation
in the Plan shall not give any Key Employee any right to remain in the employ of
the Company or any Subsidiary. Further, the adoption of this Plan shall not be
deemed to give any Key Employee or other individual the right to be selected as
a Participant or to be granted an Award. 

17.  Special Provision Pertaining to
Persons Subject to Section 16 

     Notwithstanding
any other term of this Plan, the following shall apply to persons subject to
Section 16 of the Exchange Act, except in the case of death or disability: 

			A. 		No
stock option granted pursuant to the Plan may be exercisable for at least 6 months after
the date of grant.

	

18.  Limitations on Awards Under the
Plan 

     No
one Participant shall receive in the aggregate Awards granting him more than
fifty percent (50%) of the aggregate number of shares which may be delivered on
exercise of options under the Plan. 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}]]