Document:

exv10w1

 

	 	 	 	 	 

Exhibit 10.1

IN THE UNITED STATES COURT OF FEDERAL CLAIMS

	 	 	 	 	 	 	 	 	 	 	 
	ENVIRONMENTAL TECTONICS CORPORATION,	 	 	)	 	 	 
	 

	 	 	 	 	 	 	)	 	 	 
	 

	 	 	 	Plaintiff,
	 	 	)	 	 	 
	 

	 	v.
	 	 	 	 	)	 	 	 
	 

	 	 	 	 	 	 	)	 	 	 
	THE UNITED STATES,	 	 	)	 	 	No.05-746C
	 

	 	 	 	 	 	 	)	 	 	(Judge Susan G. Braden)
	 

	 	 	 	Defendant.
	 	 	)	 	 	 

SETTLEMENT AGREEMENT

     For the purpose of disposing of all claims and counterclaims which were, or could have been,
brought pursuant to the underlying contract, without the necessity of a trial upon the merits or
further adjudication of any issue of fact or law, and without constituting an admission of
liability upon the part of either party, and for no other purposes, the plaintiff and counter-claim
defendant, Environmental Tectonics Corporation (ETC), and the defendant and counter-claim
plaintiff, United States, mutually agree as follows:

     1. On November 19, 1997, the United States Navy (Navy) issued a solicitation requesting
proposals for the design, fabrication, assembly, testing, and delivery of a pair of submarine
decompression chambers (SDCs).

     2. The SDCs are part of a Submarine Decompression System, which is part of the Submarine
Rescue Diving and Recompression System (SRDRS). The SRDRS is designed to rescue submariners from
disabled submarines, and to provide decompression treatment if needed. Because the system must be
able to quickly respond to a disabled submarine anywhere in the world, its components must be
transportable by air, land, and sea.

     3. On September 25,1998, the Navy awarded Contract N47408-98-C-2103 (contract) to ETC. The
contract was funded in phases: Contract line item numbers (CLINs) 0001-0007, relating to the
preliminary design, were awarded for a total of $839,536.58; Contract modification P00004 exercised
CLINs 0008-0032, relating to the final design and manufacturing, for an additional amount of
$2,401,807.00.

     4. The contract required final delivery within two years after contract award. Contract
modifications increased the contract by $189,960.58 to $3,431,304.16, and extended the completion
date to August 31, 2003.

     5. On May 6, 2003, ETC submitted a certified claim in the amount of $5,166,401. ETC submitted
claim amendments on August 6, 2003, January 6, 2004, and April 28, 2004, increasing the total of
the claim to $6,028,093. All of ETC’s claim amounts included an estimate of the cost to complete
the project.

     6. According to ETC’s certified claim, ETC experienced direct and indirect costs as the result
of uncompensated changes made to the contract by the Navy. These changes were

 

 

allegedly the result of defective and deficient contract drawings and specifications and
deficient contract administration.

     7. On July 22, 2004, the contracting officer issued a final decision denying ETC’s certified
claim in full.

     8. On July 11, 2005, ETC filed a complaint in the United States Court of Federal Claims, in
which it sought $9,109,617.50. The technical issues raised in ETC’s complaint included the
following categories: (1) issues relating to the Navy’s reduction of the maximum weight of the SDCs
by approximately seven percent shortly after the award of the contract; (2) issues related to the
fact that, instead of having to design and test one SDC and then fabricate two, ETC was required to
design and test two SDCs; (3) issues related to the space constraints imposed by the SDCs; (4)
out-of scope work; and (6) defective specifications, ETC also sought damages for delay in
association with all counts dealing with technical issues. On May 16, 2006, following the filing
of the Government’s motion to dismiss elements of ETC’s complaint, ETC filed an amended complaint
which dropped its claims for liquidated damages and attorney fees. ETC sought $7,995,398,00 in its
amended complaint.

     9. On June 4, 2007, the Government filed a motion to amend its answer to ETC’s amended
complaint to assert counterclaims against ETC, pursuant to the Special Plea in Fraud, 28 U.S.C. §
2514, the anti-fraud provision of the Contract Disputes Act, 41 U.S.C., § 604, and the False Claims
Act, 31 U.S.C., § 3729, based upon the Government’s allegations that ETC submitted false and
fraudulent claims under its contract with the Navy.

     10. On June 14, 2007, the Court granted the Government’s motion to amend its answer. On June
14, 2007, the Government filed its answer to the amended complaint, in which the Government
asserted counterclaims in fraud against ETC.

     11. On June 26, 2007, ETC and the Government filed a joint motion to dismiss with prejudice
ETC’s amended complaint By order dated June 28, 2007, the Court granted the motion to dismiss.

     12. ETC and the United States entered into negotiations in an attempt to resolve all
counterclaims which were brought pursuant to the underlying contract.

     13. In exchange for the Government agreement to dismiss the counterclaims raised in this case,
and its agreement to waive potential claims for re-procurement costs, ETC has offered to pay to the
Government a sum of three million, five hundred and fifty thousand dollars ($3,550,000) (Settlement
Amount).

     14. The offer referenced in paragraph 13 has been accepted upon behalf of the Attorney
General.

     15. Pursuant to this Settlement Agreement, ETC shall pay to the United States the Settlement
Amount of $3,550,000 in three separate installment payments. The first installment in the amount of
$1,275,000 shall be paid within ten days of receipt by ETC of a fully executed copy of this
Settlement Agreement by electronic funds transfer to the Department of Justice in accordance with
the “Instructions and Codes for Electronic Funds Transfer to The United States Government,” a copy
of which has been previously furnished by the United States to counsel for ETC, and receipt of
which is hereby acknowledged. The second installment, in the amount of $1,275,000, shall be paid
within two-months after the payment of the first installment. The third

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installment, in the amount of $1,000,000, shall be paid within one month after the payment of
the second installment.

     16. Upon receipt of the first installment payment of $1,275,000, the United States agrees to
stipulate to the dismissal with prejudice of the counterclaims in this action.

     17. If ETC fails to make payment in full of any installment payment when due in accordance
with this Settlement Agreement, upon written notice to ETC, the United States may proceed to have
ETC’s obligation to pay the remaining balance of the Settlement Amount, plus interest from the due
date, reduced to judgment by the United States Court of Federal Claims or any appropriate United
States District Court. In such instance, ETC authorizes any Department of Justice attorney
authorized to practice before the United States Court of Federal Claims or the appropriate United
States District Court to confess judgment against ETC in favor of the United States for the full
amount of the remaining balance of the Settlement Amount, plus interest and attorney fees.

     18. ETC agrees that the United States is entitled to recover from ETC the attorney fees and
costs incurred by the United States in the event of any default, enforcement action, or other
efforts reasonably deemed necessary by the United States to collect any of the amounts due under
this Settlement Agreement. The procedure described in paragraph 17 shall constitute the United
States’ sole remedy in the event that ETC fails to make payment as specified in this Settlement
Agreement.

     19. ETC warrants and represents that no other suit or action with respect to the claims of ETC
against the United States or its agents in this case are pending or will be filed in or submitted
to any court, administrative agency, or legislative body, including, but not limited to, the
Government Accountability Office. ETC further warrants and represents that it is the sole owner of
the claims involved in this case and that it has made no assignment or transfer of all or any part
of its rights arising out of the present suit.

     20. This agreement does not release ETC from (a) any administrative action for suspension or
debarment; (b) any criminal liability; or (c) any claim for express or implied warranty under the
contract, unless expressly released herein. In the event that ETC asserts any other claim under the
contract that is not resolved by this settlement agreement, the United States expressly reserves
its right to assert as a defense to such claim the Special Plea in Fraud, 28 U.S.C. § 2514, and any
other applicable defenses.

     21. Claims arising from the breach of this Settlement Agreement are specifically excluded and
reserved from the scope and terms of this Settlement Agreement.

     22. ETC releases, waives, and abandons all claims against the United States arising out of, or
related to, the contract, irrespective of whether those claims were asserted in the Court of
Federal Claims, including any claims for interest, costs, attorney fees, and expenses. The United
States releases, waives, and abandons, for the conduct alleged in the counterclaims, any civil or
administrative monetary claims it may have against ETC under the False Claims Act, 31 U.S.C. §§
3729-3733, the Contract Disputes Act, 41 U.S.C. § 604, the Program Fraud Civil Remedies Act, 31
U.S.C. §§ 3801-3812, common law theories of payment by mistake, unjust enrichment, breach of
contract and fraud, and the Special Plea in Fraud statute, 28 U.S.C. § 2514.

6

 

     23. ETC agrees that all costs incurred by or upon behalf of ETC, and its present and former
officers, directors, employees, shareholders, and agents in connection with: (1) ETC’s preparation,
submission, negotiation and appeal of its claim to the Navy; (2) ETC’s preparation, filing, and
litigation of this lawsuit; (3) the Government’s audit and investigation of the matters covered by
this settlement agreement; (4) ETC’s investigation and defense related to the Government’s
counterclaims; (5) the negotiation of this settlement agreement; and (6) all other matters covered
by this settlement agreement, including costs and attorneys fees, constitute unallowable costs as
defined in the Federal Acquisition Regulation, 48 C.F.R. § 31.205-47, for Government contracting
purposes. ETC shall separately account for these costs.

     24. The parties agree that this Settlement Agreement may not be altered, amended, modified, or
otherwise changed except by a writing duly executed by the authorized representatives of the United
States and ETC.

     25. Except as necessary to effectuate its terms, this Settlement Agreement shall not bind the
parties and shall not be cited or otherwise referred to in any proceedings, whether judicial or
administrative in nature, in which the parties or counsel for the parties have or may acquire an
interest.

     26. William Mitchell, Sr. represents that he has been and is authorized to enter into this
agreement upon behalf of ETC.

     27. This document constitutes a complete integration of the agreement between the patties and
supercedes any and all prior oral or written representations, understandings or agreement among or
between them.

     28. The date of this Settlement Agreement is the latest date in time with respect to the
signature lines below.

	 	 	 
	 

	 	/s/Jeffrey S. Bucholtz
	 

	 	JEFFREY S. BUCHOLTZ
	 

	 	Acting Assistant Attorney General
	 
	 	 
	 

	 	/s/ Jeanne E. Davidson
	 

	 	JEANNE E. DAVIDSON
	 

	 	Director
	 
	 	 
	ENVIRONMENTAL TECTONICS

	 	/s/ Franklin E. White, Jr.
	CORPORATION

	 	FRANKLIN E. WHITE, JR.
	By: /s/ William Mitchell, Sr.

	 	Assistant Director
	       William Mitchell, Sr.
	 	 
	 
	 	 
	 

	 	/s/ Leslie Cayer Ohta

LESLIE CAYER OHTA
	 

	 	Trial Attorney
	 

	 	Commercial Litigation Branch, Civil Division
	 

	 	Department of Justice

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	 	100 L Street, N.W.
	 

	 	Washington, DC 20530
	 
	 	 
	 

	 	Attorneys for Defendant
	 
	 	 
	Dated: February 22, 2008

	 	Dated: February 21, 2008

8exv10wxccy

 

Exhibit 10(CC)

AGREEMENT AND RELEASE

This
Agreement is made and entered into this
4th day of January 2008 between VF Corporation (the
“Company”) and George N. Derhofer (“Employee”);

WHEREAS, Employee has been employed by the Company in the position of Senior Vice President-Global
Operations in an at-will employment relationship; and

WHEREAS, the Parties agree that Employee will separate from his employment with the Company
effective as of December 31, 2007.

NOW, THEREFORE, in consideration of the mutual agreements and promises set forth within this
Agreement, the Company and Employee voluntarily agree to the following terms, each of which is
material.

	 	1.	 	Cash Consideration. As valuable and sufficient consideration for each and
all of the Employee’s obligations and promises set forth below, the Company will provide
the following:

	 	1.1	 	The Company shall pay Employee $297,700.00 on July 1,
2008 and $49,616.67 (salary/car allowance) per month (on the regular Company
payroll dates) for the period beginning July 1, 2008 and running through the
Final Payment Date (hereinafter defined), subject to applicable federal,
state and local taxes. In the event of the death of Employee before the
Final Payment Date, the balance of such payments shall be paid to Employee’s
estate. Except as otherwise provided in Section 3.1 of this Agreement, if
Employee remains in compliance with his obligations pursuant to this
Agreement, payments made pursuant to this section will not be rescinded,
regardless of future earnings. “Final Payment Date” means the last Company payroll

 

 

Agreement and Release for George N. Derhofer

date in 2008, or, if
earlier, the date payments cease pursuant to Section 3 hereof.

	 	1.2	 	Employee shall be eligible to receive a 2007 bonus under
the Company’s Executive Incentive Compensation Plan at the time 2007 bonuses
are awarded to other executives of the Company in 2008. Employee will not be
eligible to receive a 2008 bonus. Employee will not receive any equity
awards in 2008 or thereafter.

In accordance with and subject to the provisions of the Company’s 1996 Stock Compensation Plan (the
“Stock Compensation Plan”), Employee will be eligible to exercise outstanding stock options, which
are otherwise exercisable in accordance with the Stock Compensation Plan, up to and including the
Final Payment Date. If employee elects to retire under the VF Pension Plan prior to the Final
Payment Date, stock options may be exercised through December 31, 2010.

	 	1.3	 	In accordance with and subject to the terms of the 2004
Mid-Term Plan established under the Company’s 1996 Stock Compensation Plan,
Employee is eligible to receive payout with respect to the 2005-2007 cycle
under the Mid-Term Plan at the time the payout is made to other eligible
executives.
	 
	 	1.4	 	In accordance with and subject to the terms of the 2004
Mid-Term Plan established under the Company’s 1996 Stock Compensation Plan,
Employee is eligible to receive a pro rata payout for the 2006-2008 cycle
and a pro rata payout for the 2007-2009 cycle, payable at the time the
payout is delivered to other eligible executives. Such pro rata payout
shall be determined from the beginning of the cycle to the earlier of the
end of the cycle or the Final Payment Date.

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Agreement and Release for George N. Derhofer

	 	1.5	 	The Parties agree that the Company has no prior legal
obligation to make the payments or provide the benefits agreed to in Section
1.1 through 1.4.

	 	2.	 	Other Employee Benefits. As valuable and sufficient consideration for each
and all of the Employee’s obligations and promises set forth below, the Company will also
provide the following:

	 	2.1	 	Employee shall be eligible for Company sponsored
financial counseling through the Final Payment Date.
	 
	 	2.2	 	Employee will not be eligible to make contributions to
the VF Executive Deferred Savings Plan II after December 31, 2007.
	 
	 	2.3	 	The Parties agree that the Company has no prior legal
obligation to make the payments or provide the benefits agreed to in Section
2.1.

	 	3.	 	Employee’s Representations. Employee hereby represents and warrants to and
agrees with the Company as follows, with full knowledge that the Company intends to rely
thereon:

	 	3.1	 	Covenant not to Compete.

	 	a)	 	From the date of this Agreement through December
31, 2008, Employee agrees not to serve as an employee, director,
consultant or advisor to any of the following companies or their
subsidiaries or affiliates: Hanesbrands Inc., Levi Strauss & Co., NIKE
Inc, Columbia Sportswear Company, Aramark, Cintas, G III, G & K,
Unifirst,

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Agreement and Release for George N. Derhofer

Berkshire Hathaway, Polo Ralph Lauren, Liz Claiborne, Phillips Van
Heusen, Kellwood, Under Armour, Tommy Hilfiger, Adidas, Wal*Mart, Target,
Kohls, and J.C. Penney. Employee acknowledges and agrees that this
covenant serves the legitimate business interests of the Company to
protect its confidential information, trade secrets, good will and
customer contacts. Employee further acknowledges and agrees that in the
event that he breaches this covenant not to compete the damage to the
Company would be irreparable and that money damages will not adequately
compensate the Company for its injuries. Accordingly, Employee agrees
that in the event he breaches this covenant not to compete the Company
will be entitled to an immediate order from a court of competent
jurisdiction commanding Employee to cease his violation and enjoining
Employee from further violation of the covenant not to compete. Employee
further agrees that the Company would be entitled to recovery of its cost
and attorney fees incurred as a result of the violation.

In the event of a breach of this Section 3.1 (a), the Company shall
have no further obligation under Sections 1 and 2 above. In the event
that injunctive relief is requested by and granted the Company, the
Company shall be obligated under Sections 1 and 2 for the period of time
during which the injunction is in effect up to and including December 31,
2008.

	 	b)	 	Employee agrees to advise the Chief Executive
Officer of the Company in writing if he seeks to be hired prior to
December 31, 2008 as an employee, director, consultant or advisor of any
company significantly engaged in the apparel business not listed in
Section 3.1(a). In the event of such hire without the prior written
consent of the Company, the Final Payment Date shall be the date of such
hiring.

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Agreement and Release for George N. Derhofer

	 	3.2	 	Confidential Information. Employee acknowledges
that as an employee of the Company he has had access to and may be in
possession of non-public information about the Company and its business
plans and strategies. Therefore, Employee and each other person
controlling, controlled by or under common control with Employee, shall not
disclose directly or indirectly to any person or entity outside the employ
of the Company, without the express written authorization of the Company,
unless required by subpoena of a court of law, any business plans, customer
list, pricing strategies, customer files and records, any proprietary data
or trade secrets, or any other confidential information of the Company, or
any financial information about the Company or its business not in the
public domain. For purposes of this Section, the term “Company” shall
include the Company and its subsidiaries, related corporations and
affiliates.
	 
	 	3.3	 	Non-disparagement. Employee agrees never to
disparage or make false statements about the Company, its predecessors,
successors, or affiliates, or any employees or agents of the Company.
	 
	 	3.4	 	No Contact. From January 1, 2008 through
December 31, 2008, the Employee agrees not to initiate or maintain contact
with any officer, director, or employee of the Company or its affiliates
regarding the Company’s or any affiliate’s business, prospects, operations,
or finances, except with the express written permission of the Company,
other than as initiated by the Company.
	 
	 	3.5	 	No Solicitation. From January 1, 2008 through
December 31, 2008, Employee will not, directly or indirectly, for himself
or on behalf of any third party solicit for employment or otherwise cause
any employee or officer of the Company or any of its subsidiaries to

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Agreement and Release for George N. Derhofer

terminate his or her employment relationship with the Company or any of its
subsidiaries.

	 	3.6	 	Return of Company Property. Employee shall
promptly return any and all items in his possession which are owned by or
otherwise the property of the Company or its affiliates, including the
Company credit card, cell phone, laptop computer, and Blackberry.
	 
	 	3.7	 	Board Resignation. Employee hereby resigns,
effective January 1, 2008, from all positions as an officer or director of
the Company, its subsidiaries and affiliates, to which he has been elected
or appointed.
	 
	 	3.8	 	Remedies for Breach by Employee. Employee
understands and agrees that the Company’s obligation to perform under this
Agreement is conditioned upon Employee’s covenants and promises to the
Company as set forth herein. In the event Employee breaches any such
covenants and promises, or causes any such covenants or promises to be
breached, Employee acknowledges and agrees that the Company’s obligations to
perform under this Agreement shall automatically terminate and the Company
shall have no further liability or obligation to Employee, or alternatively,
that the Company may seek injunctive relief to enforce the provisions of
this Agreement. Employee acknowledges and agrees that in the event that he
materially breaches any provision of this Agreement, the damage to the
Company would be irreparable and that money damages will not adequately
compensate the Company for its injuries.
	 
	 	 	 	Accordingly, Employee agrees that in the event of a material breach, the
Company will be entitled to an immediate order from a court of competent
jurisdiction commanding Employee to cease his violation

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Agreement and Release for George N. Derhofer

and enjoining Employee from further violation. Employee further
agrees that the Company would be entitled to recovery of its cost and
attorney fees incurred as a result of the violation.

The remedies available to the Company as set out is this section are not
intended to be exclusive of any other remedies to which the Company may
be entitled at law or equity, (including but not limited to monetary
damages, specific performance, and other injunctive relief), due to
breach or threatened breach of any provision of this Agreement.

	 	4.	 	Release.

	 	4.1	 	In partial consideration of the performance by the
Company of its obligations under this Agreement and other good and valuable
consideration, Employee does hereby for himself, his heirs, executors,
administrators and assigns, forever release, remise and discharge the
Company, its officers, directors, parents, subsidiaries, affiliates and
their officers and directors and their successors and assigns, from and
against any claims and causes of action which he has, had or may have ever
had, including, but not limited to, any claims which Employee has, had, or
may have had arising out of his employment with the Company or otherwise
relating to or arising out of any relationship or status he may have had in
the past with the Company, or any of its affiliates or subsidiaries. The
parties specifically contemplate that this release covers any potential
claim by Employee of age discrimination or employment discrimination against
the Company under the Age Discrimination in Employment Act, the Civil Rights
Act of 1964, and any other federal, state or local laws or ordinances, and
any

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Agreement and Release for George N. Derhofer

common law claims under tort, contract or any other theories now or
hereafter recognized.

	 	4.2	 	Employee agrees that no other person (including but not
limited to attorneys, heirs, executors, administrators, successors, and
assigns) may assert any claim that he has or might have against the Company
and further agrees that he will fully cooperate with the Company in seeking
dismissal of any such claim that might be raised on his behalf.
	 
	 	4.3	 	The Parties agree that this Agreement may be treated as a
complete defense to any legal, equitable, or administrative action that may
be brought, instituted, or taken by Employee, or on his behalf, against the
Company and shall forever be a complete bar to the commencement or
prosecution of any claim, demand, lawsuit, charge, or other legal proceeding
of any kind against the Company, any related companies and subsidiaries, and
the directors, officers, employees, and agents of them, including any
successors and assigns, relating to employment with the Company and/or the
termination of employment with the Company.
	 
	 	4.4	 	The release contained in Section 4.1 hereof is not
intended to relieve the Company of its obligations under this Agreement to
make the payments and provide the benefits under Sections 1 and 2 hereof,
but is otherwise fully effective in accordance with its terms as to all
other rights, claims or causes of action which Employee has, had or may have
had as set forth in Section 4.1 hereof.
	 
	 	4.5	 	Employee received this Agreement on January 5, 2008 and
had at least forty-five (45) days to consider its terms and conditions,
including without limitation, the release provisions of Section 4.1. By
receipt of this proposed Agreement and Release, Employee was advised by the

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Agreement and Release for George N. Derhofer

Company to consult with an attorney of Employee’s choice before signing this
Agreement.

	 	4.6	 	Employee’s execution of this Agreement is knowing and
voluntary, without duress and after an opportunity to consult with his
attorney.

	 	5.	 	Waiver, Discharge, etc. This Agreement may not be released, discharged,
abandoned, changed or modified in any manner, except by an instrument in writing signed on
behalf of each of the parties hereto. The failure of any party hereto to enforce at any
time any of the provisions of this Agreement shall in no way be construed as a waiver of
any such provision, nor in any way to affect the validity of this Agreement or any part
thereof or the right of any party thereafter to enforce each and every such provision. No
waiver of any breach of this Agreement shall be held to be a waiver of any other or
subsequent breach.
	 
	 	6.	 	Rights of Persons Not Parties. Nothing contained in this Agreement shall be
deemed to create rights in persons not parties hereto, other than the personal
representatives or successors of the parties hereto.
	 
	 	7.	 	Entire Agreement. This Agreement constitutes the entire understanding
between the parties, and no other statements, representations or understandings form a
basis for the mutual promises contained herein, and this Agreement supersedes any other
agreements between the parties with respect to the subject matter hereof.
	 
	 	8.	 	Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of North Carolina without regard to its conflict of laws
principles.
	 
	 	9.	 	Venue. The Company and Employee agree that any dispute arising out of this
Agreement shall be subject to the exclusive jurisdiction of both the state and federal
courts in North Carolina. For that purpose, Employee irrevocably submits to the
jurisdiction of the state and federal courts of Guilford County, North Carolina.

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Agreement and Release for George N. Derhofer

	 	10.	 	Successors, Assigns, and Representatives. This Agreement shall inure to and
be binding upon the parties hereto, their respective heirs, legal representatives,
successors, and assigns.
	 
	 	11.	 	Partial Invalidity. The Parties agree that the provisions of this Agreement
shall be deemed severable and that the invalidity or unenforceability of any portion or
any provision shall not affect the validity or enforceability of the other portions or
provisions. Such provisions shall be appropriately limited and given effect to the extent
that they may be enforceable. The Parties further agree that in the event any provision
of this Agreement shall be declared invalid and unenforceable by a court of competent
jurisdiction that the entire Agreement may be declared voided, ab initio, at the
election of the Company.
	 
	 	12.	 	Revocation. Employee understands that this Agreement may be revoked by
Employee within seven (7) days after the signing of the Agreement. To revoke the
Agreement, Employee understands that he must notify in writing that he no longer wishes to
be bound by this Agreement and desires to revoke the Agreement immediately. Any
revocation should be sent in writing to Susan L. Williams, Vice President, Human
Resources, VF Corporation, 105 Corporate Center Blvd., Greensboro, NC 27408. This
Agreement shall not become effective and enforceable until seven (7) days after it has
been signed by Employee.
	 
	 	13.	 	Employee’s Acknowledgements.

	 	13.1	 	Employee affirms that he has carefully read this entire
Agreement. He attests that he possesses sufficient education and/or
experience to fully understand the extent and impact of its provisions.
	 
	 	13.2	 	Employee attests that he has been afforded the opportunity
to consider this Agreement for a period of forty-five (45) days.

10

 

Agreement and Release for George N. Derhofer

Employee further attests that he has been advised by the Company to
discuss this Agreement with an attorney of choice.

	 	13.3	 	Employee affirms that he is fully competent to execute
this Agreement and that he does so voluntarily and without any coercion,
undue influence, threat, or intimidation of any kind or type.

	 	14.	 	Compliance with Section 409A of the Internal Revenue Code. The
Parties agree that any payments to be made to Employee hereunder or to be made pursuant
to any other plans maintained by the Company in which Employee is a participant, such
as the VF Supplemental Executive Retirement Plan, and the VF Executive Deferred Savings
Plans that are subject to the requirements of Section 409A of the Internal Revenue
Code, will be made in a manner intended to comply with the provisions of Section 409A
to avoid, to the extent possible, the imposition of any excise or other penalty tax on
the Employee or the Company and that the provisions of this Agreement and such plans
will be interpreted accordingly.

THE UNDERSIGNED HEREBY STATE THAT THEY HAVE CAREFULLY READ THE FOREGOING AGREEMENT AND RELEASE AND
KNOW THE CONTENTS THEREOF AND SIGN THE SAME OF THEIR OWN FREE ACT.

IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of the dates set
forth below.

	 	 	 	 	 	 	 	 	 	 	 
	VF Corporation	 	 	 	EMPLOYEE:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/
Susan L. Williams	 	 	 	/s/
George N. Derhofer	 	 
	 	 	Susan L. Williams	 	 	 	George N. Derhofer	 	 
	 	 	Vice President— Human Resources	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date: 
	 	January 4,
2008	 	 	 	Date: 	 	January 14,
2008	 	 

11

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