Document:

Exhibit
10.3

 

NON-COMPETITION
AND NON-SOLICITATION AGREEMENT

 

This Non-Competition and
Non-Solicitation Agreement (“Agreement”),
is made this 1st day of November, 2002 by and among VITA FOOD PRODUCTS, INC., a
Nevada corporation (“VFP”), VITA HOLDINGS, INC., a Delaware corporation (“Vita Holdings”), THE HALIFAX GROUP, INC.,
a Georgia corporation (“Halifax”),
and ROBERT J. BUDD (“Budd”).  (VFP, Sub and Vita Holdings are collectively
referred to herein as “Vita”).

 

RECITALS

 

A.                                   This
Agreement is entered into in conjunction with that certain Merger Agreement
dated as of October 1, 2002 (“Merger Agreement”)
by and between VFP, Vita Holdings, Halifax, Vita/Halifax Acquisition Group (“Sub”), Budd and certain other parties, whereby such parties
agreed to the merger of Halifax with and into Sub, with Halifax as the
surviving corporation in accordance with the Georgia Business Corporation Code
(the “Transaction”).  Budd acknowledges and agrees that Vita would
not enter into the Merger Agreement without entering into this Agreement.

 

B.                                     Vita
is engaged in the business of processing, manufacturing and distributing
various food products (the “Vita Business”).

 

C.                                     Halifax
is engaged in the business of manufacturing and distributing hot sauces and salad
dressings.

 

D.                                    Budd
acknowledges and agrees that:  (i) he has
been an officer, director, shareholder and an employee of Halifax for a number
of years; (ii) the past services rendered, to Halifax and future services to be
rendered by Budd to Vita and Halifax were and are of extraordinary merit, and
constitute a necessary and valuable contribution to the general growth and
development of Vita and Halifax; (iii) during the course of his employment and
relationship with Halifax, Vita and their affiliates (collectively, “Greater Vita”), Budd
has and will continue to acquire special knowledge of the relationships
and business techniques, internal business organization, financial data,
marketing plans, intellectual property and other proprietary matters of Greater
Vita; and (iv) Vita would not be willing to consummate the Transaction without
the protection against unfair competition this Agreement affords.

 

CLAUSES

 

NOW, THEREFORE, in consideration of the premises and
the following covenants and agreements, the parties agree as follows:

 

1.                                      Restrictions
on Competition.  During the term
of Budd’s employment with Halifax and Vita and for a period of five (5) years
from the later of (a) the date of the closing of the Transaction and (b) the
date of the termination of Budd’s employment for any reason (except termination
by Halifax of Budd’s employment without Cause as that term if defined in the
Employment Agreement of even date herewith (the “Current Business
Restrictive Period”), Budd agrees that he shall not engage in any
business, including the Vita Business,

 

 

that competes with a
business that is then engaged in or planned by Greater Vita (the “Current Business”). 
Specifically, Budd agrees that he will not, directly or indirectly:

 

(i)                                     own,
manage, operate, control, consult, be compensated by, be employed by,
participate in, or be involved in any manner with the ownership (except for
ownership of less than 3% in a public company), management, operation, or
control of any business which is located within the United States of America,
and which competes with, or is similar to, the Current Business;

 

(ii)                                  attempt
in any way to obtain for himself, or others, or to divert from Greater Vita,
any rights, benefits, sales or profits arising out of or in connection with the
Current Business;

 

(iii)                               divulge, communicate,
use or disclose, or permit others to use or disclose, any nonpublic information
concerning the Current Business or Greater Vita, including customer lists,
suppliers and employees;

 

(iv)                              interfere
with the business relationships or disparage the good name or reputation of
Greater Vita or the Current Business; or

 

(v)                                 solicit,
encourage or accept any contract, arrangement or understanding with respect to
any of the foregoing, or solicit, encourage, support or arrange to have any
other person engage in any of the foregoing restricted activities.

 

2.                                      Non-Solicitation.  During the Current Business Restrictive
Period, Budd will not, directly or indirectly, through one or more
intermediaries or affiliates or otherwise:

 

(i)                                     solicit
anyone who was a customer or supplier of Greater Vita during the term of Budd’s
employment with Greater Vita with respect to any business which competes with Greater
Vita in the Current Business;

 

(ii)                                  divert,
take away, solicit or seek to induce employment of any of the employees of
Greater Vita; or

 

(iii)                               entice,
persuade, advise or induce any employee of Greater Vita to terminate or refrain
from renewing or extending his/her employment with Greater Vita.

 

3.                                      Counsel.  Budd represents and warrants that he has read
and understands this Agreement, he has consulted with legal counsel who has
explained all of its terms and provisions, and he has received fair and
adequate consideration for the undertakings made hereunder.

 

2

 

4.                                      Remedies.  Budd acknowledges that the breach of any of
the covenants contained in Sections 1 and 2 of this Agreement, will result in
irreparable harm and continuing damages to Greater Vita and its business, and
that Greater Vita’s remedy at law for any such breach or threatened breach will
be inadequate.  Accordingly, in addition
to such other remedies as may be available to Greater Vita, at law or in
equity, any court of competent jurisdiction may issue a decree of specific
performance and other equitable relief, and a temporary or permanent
injunction, without posting bond, enjoining, restricting or preventing the
breach, or threatened breach, of any such covenant.  Furthermore, Greater Vita may seek any and
all other remedies to which it may be entitled.

 

5.                                      Extension of Term for Breach.  If Budd violates or breaches any of the
restrictive covenants in Sections 1 and 2 of this Agreement, and if Greater Vita
institutes legal action for injunctive or other relief, Greater Vita shall not,
as a result of the time involved in obtaining such relief, be deprived of the
benefit of the full Current Business Restrictive Period.  Accordingly, such a restrictive covenant
shall be deemed extended by the “Breach Period.”  The “Breach Period”
shall be that period of time commencing the date Budd breaches any covenant
hereunder and ending the earlier of the date (i) a judgment is entered against Budd
or (ii) Budd ceases the prohibited act, after which date, the restrictive
covenant shall continue to run for the remainder of the term plus the Breach
Period.

 

6.                                      Unenforceable Provision.  The parties hereby agree and acknowledge
that:    (i) the duration, scope and
geographic area applicable to each of the restrictions set forth in this
Agreement are fair, reasonable and necessary; (ii) the consideration provided
for in this Agreement, the Merger Agreement and that certain employment
agreement by and among Sub and Budd of even date herewith, are sufficient and
adequate to compensate Budd for agreeing to each of the restrictions contained
in this Agreement;  and (iii) such
restrictions contained herein do not prevent Budd from earning a
livelihood.  If any court of competent
jurisdiction shall determine that any of the restrictions contained in Sections
1 and 2 hereof are unreasonable, invalid or unenforceable, it is the intention
of the parties that such a restrictive covenant shall not be terminated or
invalidated, but shall be deemed amended to the extent required to render it
reasonable, valid or enforceable, and such amendment to apply only with respect
to the operation of Sections 1 and 2 of this Agreement in the jurisdiction of
the court which has made such adjudication.

 

7.                                      Severability.  If a court of competent jurisdiction rules
that any one or more of this Agreement’s provisions are invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any of this Agreement’s other provisions, and this Agreement
shall be construed as if it has never contained such invalid, illegal or
unenforceable provision.

 

8.                                      Attorneys’ Fees and Costs.  If any action is brought by either party to
enforce any provision of this Agreement, the prevailing party shall be entitled
to recover court costs and reasonable attorneys’ fees

 

9.                                      Assignment.  Budd shall not have the right to assign this
Agreement or any of his rights or obligations hereunder to another party or
parties.  This Agreement shall inure to
the benefit of Greater Vita and its successors and assigns, and shall be fully
transferable and assignable by Greater Vita.

 

3

 

10.                               Applicable Law.  The internal substantive laws of the State of
Illinois shall govern the interpretation of this Agreement, irrespective of the
fact that one or more of the parties now or may become a resident of a
different jurisdiction.

 

11.                               No Waiver.  No waiver by Greater Vita of Budd’s breach of
any covenant or obligation hereof shall be considered to be a continuing waiver
of any such covenant or provision, or a waiver of any other or future breach
thereof.

 

12.                               Notice.  For the purposes of this Agreement, notices
and all other communications provided for in this Agreement shall be provided
by all parties to this Agreement in writing: 
(i) by actual delivery of the notice into the hands of the party
entitled to receive it; (ii) by mailing the notice by registered or certified
mail, return receipt requested, in which case the notice shall be deemed to be
given four (4) days following the date of its mailing; (iii) by Federal Express
or other overnight carrier, in which case the notice shall be deemed to be
given on the day following delivery into the hands of such carrier; or (iv) by
facsimile, in which case notice shall be deemed given on the day sent.  Notices shall be sent to the appropriate
party at its address or facsimile number given below (or at such other address
or facsimile number for such party as shall be specified by notice given
hereunder):

 

	
  If to Vita:

  	
   

  	
  If to Budd:

  
	
   

  	
   

  	
   

  
	
  Vita Food Products,
  Inc.

  	
   

  	
  Robert J. Budd

  
	
  Attention: Stephen D.
  Rubin, President

  	
   

  	
  3264 McCall Drive

  
	
  2222 West Lake Street

  	
   

  	
  Atlanta, GA 30346

  
	
  Chicago, IL 60612

  	
   

  	
  Fax: (770) 457-7546

  
	
  Fax: (312) 738-3215

  	
   

  	
   

  

 

4

 

	
  With a copy to:

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
  Much
  Shelist Freed Denenberg

  Ament & Rubenstein, P.C.

  	
   

  	
  Powell,
  Goldstein, Frazer & Murphy LLP

  
	
   

  
	
  Attn: Jeffrey C.
  Rubenstein

  	
   

  	
  Attn: Ricarda Heising

  
	
  200 North LaSalle
  Street

  	
   

  	
  191 Peachtree Street,
  NE

  
	
  Suite 2100

  	
   

  	
  Sixteenth Floor

  
	
  Chicago, IL 60601-1095

  	
   

  	
  Atlanta, Georgia 30303

  
	
  Fax: (312) 621-1750

  	
   

  	
  Fax: (404) 572-6999

  

 

13.                               Complete Understanding.  This Agreement contains all of the agreements
and understandings between the parties hereto with respect to the restrictive
covenants contained herein, and no oral agreements or written correspondence
shall be held to affect the provisions hereof. 
All subsequent changes and modifications, to be valid, shall be by
written instrument executed by Vita and Budd.

 

This Non-Competition and
Non-Solicitation Agreement is executed as of the day and date first above
written.

 

 

	
   

  	
  VITA FOOD PRODUCTS, INC.,

  	
   

  
	
   

  	
  a Nevada corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen D.
  Rubin

  	
   

  
	
   

  	
  Stephen D. Rubin,
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VITA HOLDINGS, INC.,

  	
   

  
	
   

  	
  a Delaware corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Terry W.
  Hess

  	
   

  
	
   

  	
  Terry W. Hess, CEO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE HALIFAX GROUP, INC.,

  	
   

  
	
   

  	
  a Georgia corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Terry W.
  Hess

  	
   

  
	
   

  	
  Terry W. Hess, CEO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Robert J. Budd,
  individually

  	
   

  

 

5Exhibit 4.5

 

FIRST AMENDMENT TO RIGHTS AGREEMENT

 

This FIRST AMENDMENT TO
RIGHTS AGREEMENT (this “Amendment”) has been made and entered into as of
January 10, 2005, by and between Liberate Technologies, a Delaware corporation
(the “Company”), and Equiserve Trust Company, N.A., a federally chartered trust
company (the “Rights Agent”).

 

WHEREAS,
the Company and the Rights Agent previously entered into a Rights Agreement,
dated as of May 12, 2003 (the “Rights Agreement”);

 

WHEREAS,
Section 27 of the Rights Agreement provides that, prior to the occurrence of a
Distribution Date (as defined therein), the Company and the Rights Agent shall,
if the Company so directs, supplement or amend any provision of the Rights
Agreement without the approval of any holders of certificates representing
shares of Common Stock and the Rights Agent shall execute such supplement or
amendment;

 

WHEREAS,
simultaneously with the execution of this Amendment, the Company, Liberate
Technologies Canada Ltd., a corporation organized under the laws of Canada and
a wholly owned subsidiary of the Company (the “Canadian Subsidiary”) and Double
C Technologies, LLC, a Delaware limited liability company (the “ Purchaser”)
and a joint venture of Comcast Corporation and Cox Communications, Inc., are entering
into an Asset Purchase Agreement (the “Asset Purchase Agreement”) pursuant to
which Purchaser will acquire from the Company and the Canadian Subsidiary
specified assets relating to the Company’s business in the United States,
Canada and Mexico;

 

WHEREAS,
in connection with the Asset Purchase Agreement, the Purchaser, David Lockwood
and Lockwood Funds LLC are entering into a Stockholder Voting Agreement, to be
dated as of the effective date of the Asset Purchase Agreement (the “Voting
Agreement”);

 

WHEREAS,
on January 9, 2005, the Board of Directors of the Company resolved to amend the
Rights Agreement to render it inapplicable to the Asset Purchase Agreement and
the transactions specifically contemplated thereby, including the Voting
Agreement; and

 

WHEREAS,
the Company intends to modify the terms of the Rights Agreement in certain
respects as set forth herein, and in connection therewith, is entering into
this Amendment and directing the Rights Agent to enter into this Amendment.

 

NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein
set forth, the parties hereby agree as follows:

 

1.             Capitalized Terms.  All capitalized terms used herein and not
otherwise defined shall have the meanings assigned thereto in the Rights Agreement.

 

 

2.             Amendment.

 

(a)  The
following sentence shall be added to the end of the definition of “Acquiring
Person” in Section 1(a) of the Rights Agreement:  Notwithstanding the foregoing or any other
provision of this Agreement to the contrary, Double C Technologies, LLC, a
Delaware limited liability company (“Double C”), shall not be deemed to be an
Acquiring Person as a result of (i) the execution and delivery of either (A)
the Asset Purchase Agreement by and among Double C, the Company, and Liberate Technologies
Canada, Ltd., a corporation organized under the laws of Canada (the “Canadian
Subsidiary”) (the “Asset Purchase Agreement”) or (B) the Stockholder Voting
Agreement between Double C, David Lockwood and Lockwood Funds LLC, to be dated
as of the effective date of the Asset Purchase Agreement (the “Voting Agreement”);
or (ii) the consummation of the transactions contemplated by the Asset Purchase
Agreement, as may be amended from time to time, or the Voting Agreement.”

 

(b)  The
following new Section 35, entitled “Force Majeure” shall be added to the
end of the Rights Agreement:  Notwithstanding anything to the contrary contained herein, the Rights
Agent shall not be liable for any delays or failures in performance resulting
from acts beyond its reasonable control including, without limitation, acts of
God, terrorist acts, shortage of supply, breakdowns or malfunctions,
interruptions or malfunction of computer facilities, or loss of data due to
power failures or mechanical difficulties with information storage or retrieval
systems, labor difficulties, war, or civil unrest.

 

3.  Effective Date.  This Amendment shall become effective as of
the date first above written.

 

4.  Effect of Amendment.  Except as expressly provided for in this
Amendment, all terms, conditions and obligations contained in the Rights
Agreement shall remain unchanged and in full force and effect.

 

5.  Governing Law.  This Amendment shall be governed by and
interpreted in accordance with the laws of the State of Delaware, without regard
to such state’s conflicts or choice of law provisions.

 

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

 

7.  Fax Transmission.  A facsimile, telecopy or other reproduction
of this Amendment may be executed by one or more parties hereto, and an
executed copy of this Amendment may be delivered by one or more parties hereto
by facsimile or similar instantaneous electronic transmission device pursuant
to which the signature of or on behalf of such party can be seen, and such
execution and delivery shall be considered valid, binding and effective for all
purposes.  At the request of any party
hereto, all

 

2

 

parties agree to execute an original of the
Amendment as well as any facsimile, telecopy or other reproduction thereof.

 

3

 

IN
WITNESS WHEREOF, parties hereto have caused this Amendment to be duly executed,
all as of the day and year first above written.

 

 

	
   

  	
  LIBERATE TECHNOLOGIES

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ David Lockwood

  	
   

  
	
   

  	
   

  	
  Name:
  David Lockwood

  
	
   

  	
   

  	
  Title:
   Chairman of the Board

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EQUISERVE

  
	
   

  	
  TRUST COMPANY, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Katherine Anderson

  	
   

  
	
   

  	
   

  	
  Name:
  Katherine Anderson 

  
	
   

  	
   

  	
  Title:  Managing Director

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