Document:

Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

 

EMPLOYMENT AGREEMENT (the “Employment Agreement”), dated as of September 15, 2008
(the “Employment Date”), between Reddy Ice Corporation,
a Nevada corporation (the “Company”), and PAUL
D. SMITH, an individual residing at the address set forth on Schedule A
attached hereto (the “Executive”).

 

WITNESSETH:

 

WHEREAS, the Company wishes to secure the
services of the Executive as Executive Vice President and Chief Operating
Officer of the Company upon the terms and conditions hereinafter set forth, and
the Executive wishes to render such services to the Company upon the terms and
conditions hereinafter set forth; and

 

WHEREAS, the Company is a wholly-owned
subsidiary of Reddy Ice Holdings, Inc., a Delaware corporation (the “Parent”);

 

NOW, THEREFORE, in consideration of the
foregoing and the mutual covenants herein contained and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto, intending to be legally bound, agree as
follows:

 

1.             Employment by the Company.

 

1.1           Subject
to the terms of this Employment Agreement, the Executive shall be the Executive
Vice President and Chief Operating Officer of the Company and shall perform
such duties as the Board of Directors of the Company (the “Board”)
may from time to time assign, consistent with Section 1.2 hereof.  The Executive shall be based in the Company’s
executive offices in Dallas, Texas, subject to such travel as may be required
or necessary in connection with the performance of the Executive’s duties
hereunder.

 

1.2           The
Executive shall report directly to or at the direction of the Board and shall
comply with the direction of the Board and with the policies of the Company.  The Executive agrees to devote the Executive’s
full business time and attention to the business of the Company and to
faithfully, diligently and competently perform the Executive’s duties hereunder.  The Executive shall, as part of the Executive’s
duties as an employee of the Company, actively seek such opportunities and
undertake such activities so as to promote high visibility and a positive image
of the Company, the Parent and the Subsidiaries of the Parent.

 

2.             Term of Employment.  The
term of the Executive’s employment under this Employment Agreement (the “Term”) shall be for the period commencing on the Employment
Date and ending when the employment is terminated as provided in Section 4
hereof.

 

3.             Compensation.  As full
compensation for all services to be rendered by the Executive to the Company
and its Affiliates in all capacities during the Term, the Executive shall
receive the following compensation and benefits:

 

3.1           Salary.  The Executive
shall be entitled to receive an annual base salary (the “Base Salary”)
payable not less frequently than monthly in accordance with the then customary 

 

 

payroll practices of the
Company.  The Base Salary shall initially
be $290,000 per year and shall be subject to increase from time to time as
determined by the Board.

 

3.2           Participation in Executive Benefit Plans; Other Benefits.  The Executive shall be permitted during the
Term, if and to the extent eligible, to participate in all compensation and
employee benefit plans and arrangements maintained from time to time by the
Company or on behalf of the Company by an Affiliate of the Company or
otherwise, commensurate with the Executive’s position with the Company, in form
and substance substantially similar to those that existed in the Company in September 2008,
except to the extent of changes in Company employee benefit plans generally.  Nothing in this Employment Agreement shall
preclude the Company (or any Person maintaining such plans on the Company’s
behalf) from terminating or amending any such plans or coverage so as to
eliminate, reduce or otherwise change any benefit payable thereunder.

 

3.3           Bonuses.    In
addition to the Base Salary, to the extent provided below, the Executive shall
be eligible to receive an annual bonus (the “Bonus Amount”)
for each calendar year ending during the Term, including, without limitation,
for calendar year 2008.  The Compensation
Committee of the Board has established a bonus plan for certain employees,
including the Executive.  The Executive
will have payment targets initially equal to 65% of his Base Salary for the applicable
calendar year (subject to proration for the portion of fiscal year 2008
occurring after the date hereof), structured in a manner consistent with the
Company’s existing bonus plan.  The
Executive’s actual Bonus Amount, if any, shall be based on the Company
achieving certain financial and operating goals in each calendar year during
the Term.

 

3.4           Equity Incentive Grant. 
 On the Employment Date, Executive
will receive a restricted stock award (the “Restricted Stock Award”)
as set forth in the Restricted Stock Agreement of even date herewith.  The Executive will receive a customary income
tax “gross-up” with respect to the Restricted Stock Award at a rate of 35%.

 

3.5           Vacation.  The
Executive shall be entitled to four (4) weeks of paid vacation per year.  Unused vacation may not be taken in any
subsequent year.

 

4.             Termination.

 

4.1           Termination upon Death. 
The Term shall terminate as of the date of the Executive’s death.

 

4.2           Termination upon Disability. 
If the Executive becomes Disabled, the Company may terminate the Term by
written notice to the Executive, in which event the Term shall terminate ten (10) days
after the date upon which the Company has given notice to the Executive of its
intention to terminate the Executive’s employment under this Employment
Agreement.

 

4.3           Termination by the Company for Cause.  If the Executive (i) is convicted of, or
pleads guilty to, a felony or a crime involving moral turpitude, (ii) engages
in independently verified, continuing and unremedied substance abuse involving
drugs or alcohol, (iii) performs an action or fails to take an action
that, in the reasonable judgment of a majority of the disinterested members of
the Board, constitutes willful dishonesty, larceny, fraud or gross negligence
by the Executive in the performance of the Executive’s duties to the Company,
or 

 

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makes a knowing or reckless misrepresentation
(including by omission of any material adverse information) to shareholders,
directors or officers of the Parent, (iv) willfully and repeatedly fails,
after ten (10) business days notice, to materially follow the written
policies of the Company or instructions of the Board or (v) materially
breaches any agreement to which the Executive and the Company or any of its
Subsidiaries are a party, or materially breaches any written policy, rule or
regulation adopted by the Company or any of its Subsidiaries relating to
compliance with securities laws or other laws, rules or regulations and
such breach is not cured by the Executive or waived in writing by the Company
within thirty (30) days after written notice of such breach to the Executive,
then the Company may, at any time by written notice to the Executive, which
notice shall be appended to a certified written resolution duly adopted by the
Board, terminate the Term immediately.

 

4.4           Termination by the Company without Cause.  The Company may terminate the Term at any
time, without cause, upon thirty (30) days’ written notice from the Company to
the Executive.

 

4.5           Termination by the Executive without Cause.  The Executive may terminate the Term at any
time, without cause (i.e., the
Executive’s voluntary termination), upon thirty (30) days’ written notice from
the Executive to the Company.

 

4.6           Termination by the Executive for Good Reason.  The Executive may terminate the Term for Good
Reason upon thirty (30) days’ written notice from the Executive to the Company.

 

5.             Severance Payments.

 

5.1           Severance Payments Upon Termination for Disability, by the Company without
Cause or by the Executive for Good Reason.  If this Employment Agreement is terminated
pursuant to Sections 4.2, 4.4 or 4.6 hereof, the Executive shall be entitled to
a severance payment equal to 100% of the Executive’s annual Base Salary then in
effect, which payment shall be payable at the Company’s discretion either on a
payroll basis for a period of twelve (12) months (the “Benefits
Period”) or in a lump sum and, in either case, without offset for
other earnings.  If severance is paid
over time to the Executive, the Executive shall be entitled to the continuation
of healthcare benefits for the Benefits Period; provided
the Executive shall pay the premiums for such benefits at rates assessed for
employees; provided further that the rights to
continued participation in healthcare benefits shall terminate if the Executive
shall become actively engaged (whether as an employee, an independent
contractor or otherwise) under circumstances where the Executive is eligible to
participate in another employer’s healthcare benefit program.  If, prior to the end of the Benefits Period,
the Executive violates Section 6 hereof, then the Company shall have no
obligation to make any of the payments and benefits required to be made under
this Section 5.1 on or after the date of such violation.

 

5.2           Severance Payments Upon Termination for Cause, Death or Voluntary
Termination by the Executive. 
If the Term is terminated pursuant to Sections 4.1, 4.3 or 4.5 hereof,
the Executive shall receive only all previously earned, accrued and unpaid Base
Salary and benefits from the Company and its employee benefit plans, including
any such benefits under pension, disability and life insurance plans, policies
and programs applicable to the 

 

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Company; provided, however  that nothing in this Section 5.2 shall
affect the Executive’s right to receive the benefits the Executive is entitled
to receive pursuant to Section 5.2.1 hereof.

 

5.2.1        Bonus Upon Death.  If
the Executive dies while employed by the Company (i.e.,
if the Term is terminated pursuant to Section 4.1 hereof), the Executive’s
estate shall also be entitled to receive the pro rated amount (to the date of
death) of the Bonus Amount the Executive would have earned during such year
based on actual performance, and such bonus shall be paid when management
bonuses are paid generally.

 

6.             Certain Covenants of the Executive.

 

6.1           Covenants Against
Competition.  The Executive
acknowledges that:  (i) the Company
and its Affiliates anticipate conducting their business throughout North
America, (ii) from and after the Employment Date the Executive’s work for
the Company and its Affiliates will continue to bring him into close contact
with many confidential affairs not readily available to the public, including confidential and proprietary information and
trade secrets and (iii) the covenants contained in this Section 6
will not involve a substantial hardship upon the Executive’s future livelihood.  In order to induce the Company to enter into
this Employment Agreement and in consideration of Executive’s receipt of
Company’s confidential, proprietary, and/or trade secret information, the
Executive covenants and agrees that:

 

6.1.1        Non-Compete.  During
the Term and for a period ending two (2) years after the termination of
the Term (the “Restricted Period” ), whether or
not the Executive becomes entitled to severance payments hereunder, the
Executive shall not, directly or indirectly, within 150 miles of (x) any
ice manufacturing facility or ice manufacturing equipment owned or operated by
the Company or its Subsidiaries or acquired by the Company after the date
hereof or (y) any facility, company or territory being actively evaluated
by the Company during the Term, which active evaluation the Executive had
actual knowledge of, as a likely acquisition or expansion opportunity within
the twelve (12) months following the last day of the Term, (i) be employed
by, or render services to, any person, firm or corporation engaged in any
business which would directly compete with the Company in the ice business (“Competitive Business”), (ii) own, manage, operate,
control, assist, consult, advise or participate in the ownership, management,
operation or control of any Competitive Business, or otherwise engage in any
Competitive Business for the Executive’s own account or (iii) be
associated with or interested in any Competitive Business as an individual,
partner, shareholder, creditor, director, officer, principal, agent, employee,
trustee, consultant, advisor or in any other relationship or capacity.  Notwithstanding the foregoing, this Section 6.1.1
shall not preclude the Executive from investing the Executive’s personal assets
in the securities of any corporation or other business entity which is engaged in
a Competitive Business if such securities are traded on a national stock
exchange, through an automated inter-dealer quotation system or in the
over-the-counter-market and if such investment does not result in the Executive
beneficially owning, at any time, more than 1% of the class of publicly-traded
equity securities of such Competitive Business.

 

6.1.2        Non-Solicitation and Non-Hire.  During the Term and for a period ending three
(3) years after the Executive’s termination from the Company, without the
Company’s prior consent, the Executive shall not, directly or indirectly, (i) solicit,
persuade, interfere with, induce, encourage, entice or endeavor to entice away
from the Company or any of its Subsidiaries, for 

 

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the benefit of any Competitive Business, any of its
customers, suppliers, licensees or other persons with whom the Company has a
contractual relationship or (ii) employ or retain, or have or cause any
other person or entity to employ or retain, any person who was employed or
retained by the Company or any of its Subsidiaries as a corporate executive,
operating manager at the plant manager level or higher manager level or sales
personnel while the Executive was employed by the Company.

 

6.1.3        Non-Disparagement.  During
the Term and after the termination of the Executive’s employment with the
Company, the Executive shall not make any statements, in writing or otherwise,
that disparage the reputation or character of the Company or any of its Affiliates,
Subsidiaries, divisions or any of their respective directors, officers,
employees or shareholders at any time for any reason whatsoever, except that
nothing in this Section 6.1.3 shall prohibit the Executive from giving
truthful testimony in any litigation, administrative or arbitration proceeding
either between the Executive and the Company or in connection with which the
Executive is required by law to give testimony.

 

6.1.4        Confidential Information. 
During the Term and after the termination of the Executive’s employment
with the Company, the Executive shall not, directly or indirectly, disclose to
any person or entity who is not authorized by the Company or any Affiliate of
the Company to receive such information, or use or appropriate for the Executive’s
own benefit or for the benefit of any person or entity other than the Company
or any Affiliate of the Company, any documents or other papers relating to the
business or the customers of the Company or any Affiliate of the Company,
including, without limitation, files, business relationships and accounts,
pricing policies, customer lists, computer software and hardware, information
relating to the distribution of the products of the Company or any Affiliate of
the Company, or any other materials relating to the business or the customers
of the Company or any Affiliate of the Company or any trade secrets or
confidential information including, without limitation, any business or
operational methods, drawings, sketches, designs or product concepts, know-how,
marketing plans or strategies, product development techniques or plans,
business acquisition plans, financial or other performance data, personnel and
other policies of the Company or any Affiliate of the Company, whether
generated by the Executive or by any other person, except as required in the
course of performing the Executive’s duties hereunder or with the express
written consent of the Company; provided, however,
that the confidential information shall not include any information required to
be disclosed by law or readily ascertainable from public information; provided, further, except as reasonably necessary to comply
with the securities laws, the Executive may disclose to any and all persons,
without limitation of any kind, the U.S. federal income tax treatment and tax
structure of the Company and all materials of any kind (including opinions and
other tax analyses) that are provided to the Executive relating to such tax
treatment and tax structure.

 

6.1.5        Property of the Company. 
At no time shall the Executive remove or cause to be removed from the
premises of the Company or any Affiliate of the Company, any memorandum, note,
list, record, file, disk, document or other paper, equipment or any like item
relating to the business (including copies, extracts and summaries thereof)
except in furtherance of the performance of the Executive’s duties on behalf of
the Company or any Affiliate of the Company. 
All memoranda, notes lists, records, files, disks, documents and other
papers and other like items (and all copies, extracts and summaries thereof)
made or compiled by the 

 

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Executive or made available to the Executive
concerning the business of the Company or any Affiliate of the Company shall be
the property of the Company or any Affiliate of the Company, as the case may
be, and shall be delivered to the Company promptly upon the termination of the
Executive’s employment with the Company or any Affiliate of the Company or at
any other time upon request.

 

6.2           Rights and Remedies Upon Breach.  If the Executive breaches any of the
provisions of Section 6.1 hereof (collectively, the “Restrictive
Covenants”), the Company and its Affiliates shall, in addition to
the rights set forth in the last sentence of Section 5.1 hereof, have the
following rights and remedies, each of which rights and remedies shall be
independent of the others and severally enforceable, and all of which rights
and remedies shall be in addition to, and not in lieu of, any other rights and
remedies available to the Company and its Affiliates under law or in equity.

 

6.2.1        Specific Performance. 
The right and remedy to seek specific performance of the Restrictive
Covenants or injunctive relief, without the request to post bond, against any
act which would violate any of the Restrictive Covenants; it being acknowledged
and agreed that any such breach or threatened breach will cause irreparable
injury to the Company and its Affiliates and that money damages will not
provide an adequate remedy to the Company and its Affiliates.

 

6.2.2        Threatened Breach.  In
addition, if the Executive threatens to breach any provisions of Section 6.1
hereof, the Company and its Affiliates shall have the rights set forth in Section 6.2.1
hereof.

 

6.2.3        Severability of Covenants. 
If any of the Restrictive Covenants, or any part thereof, is held by an
arbitration body or court of competent jurisdiction or any foreign, federal,
state, county or local government or other governmental, regulatory or
administrative agency or authority to be invalid, void, unenforceable or
against public policy for any reason, the remainder of the Restrictive
Covenants shall remain in full force and effect and shall in no way be
affected, impaired or invalidated, and such arbitration body, court,
government, agency or authority shall be empowered to substitute, to the extent
enforceable, provisions similar thereto or other provisions so as to provide to
the Company and its Affiliates, to the fullest extent permitted by applicable
law, the benefits intended by such provisions.

 

6.3           Enforceability in Jurisdictions.  The parties intend to and hereby confer
jurisdiction to enforce the decisions of the arbitrators pursuant to Section 7.5
hereof with respect to the Restrictive Covenants upon the courts of any
jurisdiction within the geographical scope of such Restrictive Covenants.  If the courts of any one or more of such
jurisdictions hold the Restrictive Covenants wholly invalid or unenforceable by
reason of the breadth of such scope or otherwise, it is the intention of the
parties that such determination not bar or in any way affect the Company’s
right to the relief provided above before the arbitrators or in the courts of
any other jurisdiction within the geographical scope of such Restrictive
Covenants, as to breaches of such Restrictive Covenants in such other
respective jurisdictions, such Restrictive Covenants as they relate to each
jurisdiction being, for this purpose, severable into diverse and independent
covenants.

 

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7.             Other Provisions.

 

7.1           Notices.  Notice under
this Employment Agreement shall be in writing and shall be deemed given when
received by the party to be notified (a) when given in person, (b) on
the first day after delivery to Federal Express or other overnight courier,
postage prepaid and (c) upon transmission by telecopier with confirmation
by United States mail, in each case at the address for the intended recipient
as set forth below:

 

(i)                                   if to the Company, to:

 

                                                Reddy
Ice Corporation

8750 North Central Expressway, Suite 1800

Dallas, Texas 75231

Telecopier:  (214) 528-1532

Attention:  Chairman of the Board

 

with a copy
(which shall not constitute notice) to:

 

                                                DLA
Piper LLP (US)

1251 Avenue of the Americas

New York, New York 10020

Attention:       Roger Meltzer, Esq.

 

(ii)                                if
to the Executive, to him at the address set forth on Schedule A attached
hereto or to the telecopier number set forth below:

 

Telecopier:  (214) 528-1532

 

7.2           Entire Agreement.  This
Employment Agreement contains the entire agreement between the parties with
respect to the specific subject matter hereof and replaces and supersedes any
and all prior employment contracts and other related agreements, written or
oral, with respect thereto, as well as any and all entitlements which have
accrued as of the date of this Employment Agreement that the Executive may
otherwise have with or derive from the Company. 
This Employment Agreement should be read in conjunction with the
Indemnification Agreement.

 

7.3           Waivers and Amendments. 
This Employment Agreement may be amended, modified, superseded,
canceled, renewed or extended, and the terms and conditions hereof may be
waived, only by a written instrument signed by the parties or, in the case of a
waiver, by the party waiving compliance. 
No delay on the part of any party in exercising any right, power or
privilege hereunder shall operate as a waiver thereof, nor shall any waiver on
the part of any party of any right, power or privilege hereunder, nor any
single or partial exercise of any right, power or privilege hereunder, preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege hereunder.

 

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7.4           Governing Law.  This
Employment Agreement shall be governed by, and construed in accordance with and
subject to, the laws of the State of Texas, without giving effect to the
principles of conflicts of law.

 

7.5           Arbitration.  Any
dispute or controversy arising out of or in connection with this Employment
Agreement or the Executive’s employment or the termination thereof, including,
but not limited to, any claim of discrimination under federal or state law,
shall be subject to and settled exclusively by binding arbitration in Dallas,
Texas, in accordance with the rules of the American Arbitration
Association then in effect.  Judgment may
be entered on the arbitrators’ award in any court having jurisdiction and
reasonable attorneys’ fees and shall be awarded to the prevailing party.  The arbitrators shall determine the allocation
of the costs and expenses arising in connection with any arbitration proceeding
pursuant to this Section 7.5 based on the arbitrators’ assessment of the
merits of the positions of the parties.

 

7.6           Binding Effect; Benefit. 
This Employment Agreement shall inure to the benefit of and be binding
upon the parties hereto and any heirs, successors and assigns.  Nothing in this Employment Agreement,
expressed or implied, is intended to confer on any person other than the
parties hereto or such heirs, successors and assigns, any rights, remedies,
obligations or liabilities under or by reason of this Employment Agreement.

 

7.7           Assignment.  This
Employment Agreement, and the Executive’s rights and obligations hereunder, may
not be assigned by the Executive; provided, however,
that such rights and obligations shall be enforceable by the Executive’s legal
representatives, heirs and other successors in interest.  The Company shall assign this Employment
Agreement and its rights, together with its obligations, hereunder in
connection with any sale, transfer or other disposition of all or substantially
all of its assets or business, whether direct or indirect, by purchase, merger,
consolidation or otherwise.

 

7.8           Number and Gender.  As
used herein, the singular shall include the plural and vice versa and words
used in one gender shall include all others as appropriate.

 

7.9           Withholding of Taxes. 
The Company may withhold from any compensation or benefits payable under
this Employment Agreement all federal, state, city and other taxes as shall be
required pursuant to any law or governmental regulation or ruling.

 

7.10         Definitions.  For
purposes of this Employment Agreement:

 

(i)            “Affiliate” shall have the same meaning as set forth in Rule 12b-2
promulgated under the Securities Exchange Act of 1934, as amended.

 

(ii)           “Disabled” or “Disability”
shall mean, with respect to the Executive, (a) the occurrence of a period
of 90 consecutive days or 180 out of 360 consecutive days during which the
Executive is unable to perform the Executive’s duties due to a mental or
physical impairment or (b) a determination of disability due to mental or
physical impairment by an agreed upon medical practitioner selected by the
Company and the Executive, that it is reasonably likely that an impairment
exists with respect to the Executive which will, with the passage of time,
satisfy clause (a). If the Company and the Executive are unable to agree upon a
medical practitioner, each shall select a medical practitioner and such
practitioners shall jointly select another medical 

 

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practitioner who shall determine whether or not there
is a disability.  If the two
practitioners chosen by the Company and the Executive are unable to agree upon
the third practitioner, the American Arbitration Association in Dallas, Texas
shall select a medical practitioner.

 

(iii)          “Good Reason” shall mean a separation from service (with the
meaning of Treasury Regulation Section 1.409A-1(h)) within 1 year
following the initial existence of one or more of the following conditions
arising without Executive’s consent:  (1) a
material diminution in Executive’s Base Salary; (2) a material diminution
in Executive’s title, authority, or responsibility; (4 ) relocation of Executive
to an office more than 50 miles from Executive’s office on the Employment Date;  or (5) a material breach by the Company
of this Agreement.  Before terminating
employment for Good Reason, Executive must provide notice of the existence of
the condition within 90 days following the initial existence of such
condition.  Company shall have a period
of thirty 30 days after receipt of such notice to correct the situation (and
thus prevent Executive’s termination for Good Reason).  Upon the expiration of the thirty (30) day
period without cure by the Company, Executive shall be entitled to terminate
for Good Reason.

 

(iv)          “Indemnification Agreement” shall mean that certain
indemnification agreement, dated as of the date hereof, between the Executive
and the Parent.

 

7.11         Counterparts.  This
Employment Agreement may be executed in two or more counterparts, each of which
shall be deemed an original but all of which together shall constitute one and
the same instrument.

 

7.12         Headings.  The
headings in this Employment Agreement are for reference purposes only and shall
not in any way affect the meaning or interpretation of this Employment
Agreement.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties
have executed this Employment Agreement as of the date first above written.

 

 

	
  The
  Company:

  	
   

  
	
   

  	
  REDDY ICE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gilbert M. Cassagne

  
	
   

  	
   

  	
  Name: Gilbert M. Cassagne

  
	
   

  	
   

  	
  Title:   President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Executive:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Paul D. Smith

  
	
   

  	
  Paul D. SmithExhibit
10.2

 

RESTRICTED
STOCK AGREEMENT

 

REDDY ICE
HOLDINGS, INC.

2005 LONG
TERM INCENTIVE AND SHARE AWARD

PLAN, AS AMENDED

 

GRANTEE: PAUL
D. SMITH

 

NO. OF
SHARES: 20,000

 

This Agreement (the “Agreement”)
evidences the award of 20,000 restricted shares (each, an “Award
Share,” and collectively, the “Award
Shares”) of the common stock, $0.01 par value per share (“Common Stock”), of Reddy Ice
Holdings, Inc., a Delaware corporation (the “Company”),
granted to you, Paul D. Smith, effective as of September 15, 2008 (the “Grant Date”), pursuant to the Reddy
Ice Holdings, Inc. 2005 Long Term Incentive and Share Award Plan, as
amended (the “Plan”) and conditioned upon
your agreement to the terms described below. 
All of the provisions of the Plan are expressly incorporated into this
Agreement.

 

1.             Terminology.  Unless otherwise provided in this Agreement,
capitalized words used herein are defined in the Glossary at the end of this
Agreement.

 

2.             Vesting.  All of the Award Shares immediately vest upon
the execution of this Agreement, but are subject to forfeiture if you are
terminated by the Company for Cause or you terminate your employment with the
Company without Good Reason prior to the one year anniversary of the Grant Date
(the “Anniversary”).

 

4.             Restrictions
on Transfer.

 

(a)           Prior to the
Anniversary, Award Shares may not be sold, assigned, transferred, pledged,
hypothecated or disposed of in any way (whether by operation of law or
otherwise), except by will or the laws of descent and distribution, and shall
not be subject to execution, attachment or similar process.

 

(b)           Any
attempt to dispose of any such Award Shares in contravention of the
restrictions set forth in Section 4(a) shall be null and void and
without effect.  The Company shall not be
required to (i) transfer on its books any Award Shares that have been sold
or transferred in contravention of this Agreement or (ii) treat as the
owner of Award Shares, or otherwise accord voting, dividend or liquidation
rights to, any transferee to whom Award Shares have been transferred in
contravention of this Agreement.

 

5.             Stock
Certificates.  You are reflected as
the owner of record of the Award Shares as of the Grant Date on the Company’s
books.  The Company or an escrow agent
appointed by the Committee will hold in escrow the share certificates for
safekeeping, or the Company may otherwise retain the Award Shares in
uncertificated book entry form, until the Anniversary.  Until the Anniversary, any share certificates
representing the Award Shares will include a legend to the effect that you may
not sell, assign, transfer, pledge, or hypothecate the Award Shares.  All regular cash dividends on the Award
Shares held by the Company will be paid directly to you on the dividend payment
date.  As soon as practicable after the Anniversary,
the Company will deliver a share certificate to you, or deliver shares
electronically or in 

 

 

certificate form
to your designated broker on your behalf, for the Award Shares.   Upon
the request of the Administrator, you shall deliver to the Company a stock
power, endorsed in blank, with respect to the Award Shares that have been
forfeited pursuant to this Agreement.

 

6.             Tax
Election and Tax Withholding.

 

(a)           The Company has
agreed to provide to you a tax “gross-up” with respect to the Award Shares as
set forth in the Employment Agreement. 
Except as contemplated by the tax “gross-up”, you hereby agree to make
adequate provision for foreign, federal, state and local taxes required by law
to be withheld, if any, which arise in connection with the grant of the Award
Shares.  The Company shall have the right
to deduct from any compensation or any other payment of any kind due you
(including withholding the issuance or delivery of shares of Common Stock or
redeeming Award Shares) the amount of any federal, state, local or foreign
taxes required by law to be withheld as a result of the grant of the Award
Shares in whole or in part; provided, however, that the value of the shares of
Common Stock withheld or redeemed may not exceed the statutory minimum
withholding amount required by law.  In
lieu of such deduction, the Company may require you to make a cash payment to
the Company equal to the amount required to be withheld.  If you do not make such payment when
requested, the Company may refuse to issue any Common Stock certificate under
this Agreement until arrangements satisfactory to the Committee for such
payment have been made.

 

(b)           You hereby
acknowledge that you have been advised by the Company to seek independent tax
advice from your own advisors regarding the availability and advisability of
making an election under Section 83(b) of the Internal Revenue Code
of 1986, as amended, and that any such election, if made, must be made within
30 days of the Grant Date.  You expressly
acknowledge that you are solely responsible for filing any such Section 83(b) election
with the appropriate governmental authorities, irrespective of the fact that
such election is also delivered to the Company. 
You may not rely on the Company or any of its officers, directors or
employees for tax or legal advice regarding this award.  You acknowledge that you have sought tax and
legal advice from your own advisors regarding this award or have voluntarily
and knowingly foregone such consultation.

 

7.             Adjustments
for Corporate Transactions and Other Events.

 

(a)           Stock
Dividend, Stock Split and Reverse Stock Split.  Upon a stock dividend of, or stock
split or reverse stock split affecting, the Common Stock, the number of Award
Shares and the number of such Award Shares that are nonvested and forfeitable
shall, without further action of the Committee, be adjusted to reflect such
event.  The Committee shall make
adjustments, in its discretion, to address the treatment of fractional shares
with respect to the Award Shares as a result of the stock dividend, stock split
or reverse stock split; provided that such adjustments do not result in the
issuance of fractional Award Shares. 
Adjustments under this Section 7 will be made by the Committee,
whose determination as to what adjustments, if any, will be made and the extent
thereof will be final, binding and conclusive.

 

(b)           Binding
Nature of Agreement.  The terms and
conditions of this Agreement shall apply with equal force to any additional
and/or substitute securities received by you in exchange for, or by virtue of
your ownership of, the Award Shares, to the same extent as the Award Shares
with respect to which such additional and/or substitute securities are
distributed, whether as a result of any spin-off, stock split-up, stock
dividend, stock distribution, other reclassification of the Common Stock of the
Company, or similar event, except as otherwise determined by the Committee.  If the Award Shares are converted into or
exchanged for, or stockholders of the Company receive by reason of any
distribution in total or partial liquidation or pursuant to any merger of the
Company or acquisition of its assets, securities of another entity, or other
property (including cash), then the rights of the Company under this Agreement
shall inure to the benefit of the Company’s successor, and this Agreement shall
apply to the securities or other property (including cash) received upon such
conversion, exchange or distribution in the same manner and to the same extent
as the Award Shares.

 

 

8.             Non-Guarantee of
Employment or Service Relationship. 
Nothing in the Plan or this Agreement shall alter your at-will or other
employment status or other service relationship with the Company, nor be
construed as a contract of employment or service relationship between the
Company and you, or as a contractual right of you to continue in the employ of,
or in a service relationship with, the Company for any period of time, or as a
limitation of the right of the Company to discharge you at any time with or without
Cause or notice and whether or not such discharge results in the forfeiture of
any Award Shares or any other adverse effect on your interests under the Plan.

 

9.             Rights as
Stockholder.  Except as otherwise
provided in this Agreement with respect to Award Shares held prior to the
Anniversary, you will possess all incidents of ownership of the Award Shares,
including the right to vote the Award Shares and receive dividends and/or other
distributions declared on the Award Shares.

 

10.           The Company’s Rights.  The existence of the Award Shares shall not
affect in any way the right or power of the Company or its stockholders to make
or authorize any or all adjustments, recapitalizations, reorganizations or
other changes in the Company’s capital structure or its business, or any merger
or consolidation of the Company, or any issue of bonds, debentures, preferred
or other stocks with preference ahead of or convertible into, or otherwise
affecting the Common Stock or the rights thereof, or the dissolution or liquidation
of the Company, or any sale or transfer of all or any part of the Company’s
assets or business, or any other corporate act or proceeding, whether of a
similar character or otherwise.

 

11.           Notices.  All notices and other communications made or
given pursuant to this Agreement shall be in writing and shall be sufficiently
made or given if hand delivered or mailed by certified mail, addressed to you
at the address contained in the records of the Company, or addressed to the Committee,
care of the Company for the attention of its Corporate Secretary at its
principal executive office or, if the receiving party consents in advance,
transmitted and received via telecopy or via such other electronic transmission
mechanism as may be available to the parties.

 

12.           Entire Agreement.  This Agreement contains the entire agreement
between the parties with respect to the Award Shares granted hereunder.  Any oral or written agreements,
representations, warranties, written inducements, or other communications made
prior to the execution of this Agreement with respect to the Award Shares
granted hereunder shall be void and ineffective for all purposes.

 

13.           Amendment.  This Agreement may be amended from time to
time by the Committee in its discretion; provided, however,
that  this Agreement may not be modified
in a manner that would have a materially adverse effect on the Award Shares as
determined in the discretion of the Committee, except as provided in the Plan
or in a written document signed by each of the parties hereto.

 

14.           Conformity with
Plan.  This Agreement is intended to
conform in all respects with, and is subject to all applicable provisions of,
the Plan.  Inconsistencies between this
Agreement and the Plan shall be resolved in accordance with the terms of the
Plan.  In the event of any ambiguity in
this Agreement or any matters as to which this Agreement is silent, the Plan
shall govern.  A copy of the Plan is  available upon request to the Committee.

 

15.           Governing Law.
The validity, construction and effect of this Agreement, and of any
determinations or decisions made by the Committee relating to this Agreement,
and the rights of any and all persons having or claiming to have any interest
under this Agreement, shall be determined exclusively in accordance with the
laws of the State of New York, without regard to its provisions concerning the
applicability of laws of other jurisdictions. 
Any suit with respect hereto will be brought in the federal or state
courts in the districts which include New York County, New York, and you hereby
agree and submit to the personal jurisdiction and venue thereof.

 

 

16.           Headings.  The headings in this Agreement are for
reference purposes only and shall not affect the meaning or interpretation of
this Agreement.

 

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

 

18.           Electronic
Delivery of Documents.  By your
signing this Agreement, you (i) consent to the electronic delivery of this
Agreement, all information with respect to the Plan and the Award Shares and
any reports of the Company provided generally to the Company’s stockholders; (ii) acknowledge
that you may receive from the Company a paper copy of any documents delivered
electronically at no cost to you by contacting the Company by telephone or in
writing; (iii) further acknowledge that you may revoke your consent to the
electronic delivery of documents at any time by notifying the Company of such
revoked consent by telephone, postal service or electronic mail; and (iv) further
acknowledge that you understand that you are not required to consent to
electronic delivery of documents.

 

 

GLOSSARY

 

(a)           “Affiliate” means any entity, whether
now or hereafter existing, which controls, is controlled by, or is under common
control with Reddy Ice Holdings, Inc. (including but not limited to joint
ventures, limited liability companies and partnerships).  For this purpose, “control” means ownership
of 50% or more of the total combined voting power or value of all classes of
stock or interests of the entity.

 

(b)           “Cause” shall mean the
circumstances set forth in Section 4.3 of your Employment Agreement with
the Company dated September 15, 2008 (the “Employment
Agreement”).

 

(c)           “Committee” means the Compensation
Committee of the Board or such other Board Committee as may be designated by
the Board to administer the Plan.

 

(d)           “Company”
means Reddy Ice Holdings, Inc. and its Affiliates, except where the context
otherwise requires.

 

(e)           “Good Reason” has the meaning
ascribed to such term in Section 7.10(iii) of the  Employment Agreement.

 

(f)            “Service” means your employment or
other service relationship with the Company and its Affiliates.  Your Service will be considered to have
ceased with the Company and its Affiliates if, immediately after a sale, merger
or other corporate transaction, the trade, business or entity with which you
are employed or otherwise have a service relationship is not Reddy Ice Holdings, Inc.
or an Affiliate of Reddy Ice Holdings, Inc.

 

(g)           “You”; “Your”.  You means the recipient of the Award Shares
as reflected in the first paragraph of this Agreement.  Whenever the word “you” or “your” is used in
any provision of this Agreement under circumstances where the provision should
logically be construed, as determined by the Committee, to apply to the estate,
personal representative, or beneficiary to whom the Award Shares may be
transferred by will or by the laws of descent and distribution, the words “you”
and “your” shall be deemed to include such person.

 

 

IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed by its
duly authorized officer.

 

 

	
   

  	
  REDDY
  ICE HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gilbert M. Cassagne

  
	
   

  	
   

  	
  Name:

  	
  Gilbert M. Cassagne

  
	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
  September 15, 2008

  
						

 

 

The undersigned hereby
acknowledges that he has carefully read this Agreement and agrees to be bound
by all of the provisions set forth herein. 
The undersigned also consents to electronic delivery of all notices or
other information with respect to the Award Shares or the Company.

 

	
  WITNESS:

  	
   

  	
  GRANTEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Steven J. Janusek

  	
   

  	
  /s/ Paul D. Smith

  
	
   

  	
   

  	
  Paul D. Smith

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  September 15, 2008

  

 

Enclosure:   The Reddy Ice Holdings, Inc. 2005 Long
Term Incentive and Share Award Plan, as amended

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