Document:

Exhibit 10.1

 

CONFIDENTIAL RESIGNATION AND RELEASE
AGREEMENT

 

I.                                         Parties. The parties to this
Confidential Resignation and Release Agreement (“Agreement”) are Thomas P.
Friezen (“Friezen”), and Dakota Growers Pasta Company, Inc. (“DGPC”), its
successors, assigns, divisions, parents, related or affiliated entities,
officers, trustees, directors, members, employees, agents and counsel,
including without limitation, any and all current or former executive,
management and supervisory employees (collectively, “Released Parties”).

 

II.                                     Resignation of Employment. Friezen
resigns from his position as Chief Financial Officer with DGPC effective February 21,
2006 and his employment with DGPC is terminated effective the same date by
virtue of his resignation.

 

III.                                 Consideration to Friezen. As
consideration for the promises made by Friezen in this Agreement, DGPC agrees
to provide the following to Friezen:

 

a.                                       Accrued Vacation – DGPC will pay
Friezen for all accrued, but unused, vacation time as of February 21,
2006, consistent with current DGPC policies.

 

Number of Unused Hours   258.29 hours

 

b.                                      Additional Payment – DGPC will
continue to pay to Friezen, upon the expiration of the revocation period as set
forth in paragraph XVI of this Agreement, his base salary as of the effective
date of this Agreement, less all required or requested deductions, for a period
of twelve (12) months from the effective date of this Agreement. Payments will
be made in accordance with DGPC’s payroll practices. The effective date of this
Agreement shall be the date, in accordance with paragraph XVI of this
Agreement, upon which this Agreement is accepted by Friezen and the revocation
period has expired without being revoked by Friezen.

 

c.                                       Health Care Continuation (non-Cobra) –
DGPC will as of the effective date of this Agreement continue to provide
healthcare, dental and life insurance coverage for a period of twelve (12)
months from the effective date of this agreement, in accordance with the terms
of the applicable coverage provided to other executive-level employees,
provided that such coverage is requested. Friezen will be responsible for any
and all premium co-pays or deductions as required of other executive-level
employees. Such co-pays or deductions shall be made via payroll deductions.

 

d.                                      COBRA – Upon expiration of Friezen’s
healthcare continuation set forth in paragraph III. c., Friezen may elect
to continue to receive medical and health benefits from DGPC for up to eighteen
(18) months pursuant to the Consolidated

 

	
   

  	
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Omnibus
Budget Reconciliation Act (“COBRA”). Notification of Friezen’s rights under
COBRA, the cost of his participation and the enrollment forms will be sent to
him in accordance with DGPC’s obligations under COBRA.

 

e.                                       401K - DGPC will continue to make
and/or match contributions to Friezen’s 401K account in accordance with the
terms of the Plan. Friezen shall be entitled to any and all vested portions of
his 401K account after the 12-month effective period of this Agreement ends and
shall be permitted to access the account in accordance with the terms of the
Plan.

 

f.                                         Other Employee Benefits -    All other fringe benefits
from DGPC will discontinue as of February 21, 2006.

 

g.                                      Stock Options -  Friezen may exercise any stock options
he may have in accordance with any applicable stock option agreement.

 

h.                                      Debt Forgiveness -   Friezen currently is indebted to DGPC in the
amount of Thirty-Eight Thousand Six Hundred Twenty Nine Dollars and zero cents
($38,629.00). In exchange for Friezen’s agreements and obligations set forth in
paragraphs IV and V of this Agreement, DGPC hereby agrees to forgive and waive
Friezen’s obligations with regard to the indebtedness identified in this
paragraph III.h. at the end of this two year Agreement subject to Friezen’s
full compliance with the terms of this Agreement. Debt Forgiveness will include
the additional interest, with such interest charged at the Applicable Federal
Rate as published by the Internal Revenue Service, that is accrued during the
same period.

 

IV.                                 Full Release of All Claims.

 

In exchange for the
consideration in paragraph III. b., c., and h., to which Friezen acknowledges
he was not otherwise entitled to, Friezen agrees to release and discharge
forever the Released Parties from all causes of action, claims, demands,
debits, costs and expenses for damages which he now has or may have,
whether known or unknown, against the Released Parties on account of his
employment with DGPC and/or the termination of his employment with DGPC. This
release includes, without limitation, any claim by Friezen against the Released
Parties for damages resulting from injuries, harassment, mental anguish and
emotional distress. This release also includes, but is not limited to, any
claim of discrimination or harassment on any basis, including race, color,
national origin, religion, sex, age, handicap or disability arising under any
federal, state, or local statute, ordinance, order or law, including without
limitation the Age Discrimination in Employment Act, as amended; Title VII of
the Civil Rights Act of 1964, as amended; the Americans with Disabilities Act;
Family and Medical Leave Act; Fair Labor Standards Act, as amended; National
Labor Relations Act, as amended; Employee Retirement Income Security Act, as
amended; any federal, state, or municipal law, statute, ordinance or common law
doctrine regarding (i) the existence or breach of oral or written
contracts of employment, (ii) negligent or intentional misrepresentations,
(iii) wrongful discharge, (iv) failure to hire, (v) interference
with contract, (vi) breach of good faith and fair dealing, (vii) defamation,
(viii) negligent or intentional infliction of

 

	
   

  	
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emotional distress, (ix) unlawful
discharge in violation of public policy, (x) retaliation, (xi) promissory
and/or equitable estoppel, (xii) whistleblowing, (xiii) retaliation, (xiv) or
any other federal, state or local laws regarding rights or claims relating to
employment;  and any other claims which
in any manner arise out of Friezen’s employment or his resignation of
employment with DGPC. This waiver does not apply to claims that may arise after
the effective date of this Agreement. Friezen agrees that he will never file a
lawsuit asserting any claim that is released in this Agreement.

 

V.                                     In exchange for the obligations and agreements on behalf of DGPC,
specifically the consideration to be provided by DGPC in paragraph III. b., c.
and h., set forth in this Agreement, Friezen agrees that for a period of two (2) years
after the date of this Agreement he will not directly or indirectly, for
himself or any other person or entity:

 

a.                                       Engage in any business activity similar to that in which Friezen
engaged during his employment with DGPC for any person or entity selling,
marketing, distributing or manufacturing products that are the same as, or
similar to, or that compete with products that DGPC markets or sells anywhere
that DGPC markets or sells such products or presently intends to market or sell
such products.

 

b.                                      Contact, solicit, or attempt to solicit business from any customer
or prospective customer of DGPC whether directly or indirectly for the purpose
of selling, offering or marketing any products the same as or similar to, or
that compete with, any products that such customer has purchased from DGPC
during Friezen’s employment with DGPC.

 

c.                                       Solicit or recruit or assist or attempt to solicit or recruit,
directly or indirectly, for himself or for any other person or entity, any
employee who has worked for DGPC during the course of Friezen’s employment with
DGPC. Such activity includes identifying to any person or entity employees of
DGPC who have special knowledge regarding DGPC’s areas of interest; or
commenting about the quality or quantity of work or personal characteristics of
any person still employed by DGPC.

 

d.                                      Disclose or use Confidential Information, directly or indirectly,
for Friezen’s own benefit to compete, directly or indirectly, against DGPC, or
to any other person, firm, association, or other organization that does, or
will, compete against DGPC, directly or indirectly. For purposes of this
Agreement, the words “Confidential Information” mean information, records, and
data in any form or format, not publicly known, about any of DGPC’s
methods, processes, techniques, equipment, services, or products. They include
matters relating to DGPC’s research, development, finances, assembly,
purchasing, manufacturing, accounting, engineering, marketing, pricing, profit
margins, or selling acquired by Friezen during his employment with DGPC. The
words “Confidential Information” also mean all information and data, not
publicly known, that Friezen acquired about either DGPC’s customers/clients or
its prospective customers/clients, or both, in the course of Friezen’s
employment with DGPC, including any customer/client lists in any form.

 

	
   

  	
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VI.                                 No Admission of Liability or Wrongful Conduct. The parties acknowledge that the consideration provided by DGPC
is given solely in exchange for the promises in this Agreement and that such
consideration does not constitute an admission by either party of liability or
of violation of any applicable law or regulation or any wrongful conduct
whatsoever. DGPC expressly denies any such liability, violation or other
wrongful conduct.

 

VII.                             Nondisparagement. DGPC and Friezen
agree not to make any false statement or communication to any third party
regarding the other party to this Agreement and not to make any statement
regarding each other that could be construed as malicious or defamatory,
specifically including Friezen’s employment with DGPC and the resignation of
his employment. Further, DGPC and Friezen agree not to authorize any written or
oral statement regarding the other party that is prohibited by this paragraph.

 

VIII.                         Representation Regarding Disclosure of Regulatory Issues. Friezen hereby represents and warrants that during his exit
interview on February 21, 2006 with Ms. Susan Clemens, advised DGPC
of all instances of regulatory violations by Released Parties of which he is
aware.

 

IX.                                Nondisclosure of Settlement Terms. The
parties agree that the terms and conditions of this Agreement are and shall
remain strictly confidential. Except as specifically set forth below, the
parties shall not disclose the terms of this Agreement in whole or in part to
any individual or entity without express prior written consent of the other
party.

 

a.                                       The parties agree that they will not disclose the terms of this
Agreement to any other person except:  (i) their
professional advisors as necessary to render professional services, provided
that the terms of this confidentiality provision must be expressly communicated
to such advisors; (ii) DGPC may communicate with its officers,
managers, employees, directors and trustees on a need-to-know basis; (iii) to
the extent required by a court order or other compulsory process; (iv) to
any federal, state, or local taxing authority as necessary to comply with
tax-related obligations; and (v) as otherwise may be necessary to
implement or enforce the terms of this Agreement.

 

b.                                      Upon a party’s receipt of any order, subpoena or other compulsory
process demanding production or disclosure of any term of this Agreement, the
party will promptly notify the other party in writing of the requested
disclosure, including the proposed date of the disclosure, the reason for the
requested disclosure, and the identity of the individual or entity requesting
the disclosure, no later than ten (10) business days prior to the date
that such disclosure is to be made, if possible, but in any event within a
reasonable time before such disclosure is to be made.

 

c.                                       The parties acknowledge that the Agreement will be disclosed in
accordance with the Rules and Regulations of the United States Securities
and Exchange Commission.

 

	
   

  	
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X.            Return of DGPC Property. Friezen
agrees to immediately return his DGPC-provided credit cards, equipment and keys.
Friezen also agrees to immediately return all original and duplicate documents,
files, reports, computer files and records, financial records, personnel
records, policies and procedures and all other tangible things in his
possession that were created, collected or received by Friezen while employed
at DGPC.

 

XI.           Entire Agreement. Friezen agrees that
no promises or agreements have been made to him except those contained in this
Agreement and that this document constitutes the entire agreement and
understanding between the parties.

 

XII.         Severability. The parties agree that
the terms of this Agreement are intended to be severable. If any term,
provision, clause or item of this Agreement is declared to be invalid or
unenforceable by any court or administrative body of competent jurisdiction,
the remaining portions of the Agreement shall not be affected thereby and shall
be enforced in accordance with law.

 

XIII.        Controlling Law. Through mutual
agreement between both parties, the validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
Minnesota.

 

XIV.        Review Period. Friezen acknowledges
and understands that he has twenty-one (21) days from February 21, 2006 in
which to review and consider this Agreement. Friezen further understands that
while he may sign this Agreement before the expiration of twenty-one (21)
days, he is not required to do so.

 

XV.         Right to Counsel. Friezen acknowledges
and understands that he has the right to have his own legal counsel review this
Agreement and that DGPC encourages him to seek the advice and guidance of legal
counsel.

 

XVI.        Revocability and Effective Date. Friezen
may revoke and cancel this Agreement in writing at any time within seven (7) days
after his execution of this Agreement by providing written notice of revocation
to the Vice-President of Human Resources at 7300 36th Avenue North,
New Hope, MN  55427. If he does so
revoke, this Agreement will be null and void and DGPC shall have no obligation
to perform the undertakings provided in this Agreement. This Agreement
shall not become effective and enforceable until after the expiration of this
seven (7) day revocation period; after such time, if there has been no
revocation, the Agreement shall be fully effective and enforceable.

 

XVII.       Acknowledgments. Friezen expressly
acknowledges that he has carefully read and understands the terms of this
Agreement; that he has had an opportunity to consult with an attorney prior to
executing this Agreement; that he has signed this Agreement voluntarily of his
own free will, with a full understanding of its significance and intending to
be bound by its terms.

 

	
   

  	
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The parties have executed this Confidential
Resignation and Release Agreement this 6th day of March, 2006.

 

 

	
  /s/ Thomas
  P. Friezen

  	
   

  
	
   

  
	
  THOMAS P. FRIEZEN

  
	
   

  
	
   

  
	
  DAKOTA GROWERS PASTA COMPANY, INC.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Susan M. Clemens

  	
   

  
	
   

  
	
  SUSAN
  M. CLEMENS

  
	
   

  
	
  VP
  Human Resources

  
			

 

 

	
   

  	
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6Exhibit
10.1

 

Heritage
Property Investment Trust, Inc.

 

Named Executive
Officer Compensation Schedule

 

	
  Name and Principal Position

  	
   

  	
  2005

  Salary

  	
   

  	
  2005

  Bonus

  	
   

  	
  Incentive

  Award(1)

  	
   

  	
  2006

  Base

  Salary

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thomas C.
  Prendergast, President and Chief Executive Officer

  	
   

  	
  $

  	
  615,000

  	
   

  	
  $

  	
  615,000

  	
   

  	
  48,000

  	
   

  	
  $

  	
  615,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  David G.
  Gaw, Senior V.P. and Chief Financial Officer

  	
   

  	
  $

  	
  300,000

  	
   

  	
  $

  	
  180,000

  	
   

  	
  15,000

  	
   

  	
  $

  	
  300,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robert G.
  Prendergast, Senior V.P. and Chief Operating Officer

  	
   

  	
  $

  	
  285,000

  	
   

  	
  $

  	
  171,000

  	
   

  	
  15,000

  	
   

  	
  $

  	
  300,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Barry
  Rodenstein, V.P., Leasing

  	
   

  	
  $

  	
  240,000

  	
   

  	
  $

  	
  96,000

  	
   

  	
  4,500

  	
   

  	
  $

  	
  240,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bruce A.
  Anderson, V.P., Acquisitions

  	
   

  	
  $

  	
  205,000

  	
   

  	
  $

  	
  82,000

  	
   

  	
  4,500

  	
   

  	
  $

  	
  220,000

  	
   

  

 

(1)
These restricted shares are subject to transfer restrictions and risk of
forfeiture that terminate ratably over three years. The restricted shares were
awarded based on a value of $38.90 per share, the closing price of Heritage
Common Stock on March 8, 2006.

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