Document:

Ex-10.2 Barberry Corp Agreement

 

Exhibit 10.2

June 7, 2006

Vector Group Ltd.

100 S.E. Second Street, 32nd Floor

Miami, FL 33131

			
	Attention:	 	Howard M. Lorber

President and Chief Executive Officer

Gentlemen:

     Barberry Corp. (“Barberry”) agrees that, on the first business day following the expiration of
the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act (the “HSR Act”), it will
convert $20 million principal amount of the 6.25% Convertible Subordinated Notes due July 15, 2008
of Vector Group Ltd. (“VGR”) which it owns into 938,087 registered shares of VGR common stock
(calculated based on the current conversion price of $21.32 per share), or such greater number of
shares resulting from an adjustment after the date hereof to the conversion price of the Notes. As
an inducement for Barberry to convert, VGR will issue to Barberry an additional 261,913 (or such
lesser number of shares, in the event of an adjustment after the date hereof to the conversion
price of the Notes, such that the total number of shares received by Barberry equals 1,200,000)
unregistered shares of VGR common stock on the date of conversion, or as soon thereafter as such
shares are listed on the NYSE. VGR agrees that it will promptly secure the listing of the
unregistered shares on the NYSE, will use all reasonable efforts to file a registration statement
for the unregistered shares within 45 days of the conversion date and will use all reasonable
efforts to have the registration statement declared effective within 120 days of the date of
conversion and to keep such registration statement effective until the later of the Barberry’s
shares are sold or Rule 144(k) is available. Barberry will promptly make all required filings
under the HSR Act and will use all reasonable efforts to obtain the necessary approvals thereunder,
and will pay Jefferies & Company, Inc. on the date of conversion a commission of $240,000.

     Additionally, on the date of conversion, VGR will also pay to Barberry, in cash, accrued
interest on the converted Notes. On June 8, 2006, the accrued interest will equal $496,600. The
payment for the accrued interest should be wired as follows:

     Please indicate your agreement with the terms set forth above by signing below and sending an
executed original to me.

	 	 	 	 	 
	 	Very truly yours,

Barberry Corp.

 	 
	 	By:  	/s/
Keith Cozza
 	 
	 	 	Keith Cozza
 	 
	 	 	Treasurer 	 
	 

	 	 	 	 	 
	 	THE FOREGOING IS AGREED TO AND ACCEPTED:

Vector Group Ltd.

 	 
	 	By:  	/s/ Richard J. Lampen
 	 
	 	 	Name:  	Richard J. Lampen 	 
	 	 	Title:  	Executive Vice PresidentEX-10.1 Agreement - Mary R. Delk

 

EXHIBIT 10.1

	 	 	 	 	 	 	 
	STATE OF NORTH CAROLINA

	 	 	)	 	 	CONFIDENTIAL TRANSITION
	 

	 	 	)	 	 	AGREEMENT AND RELEASE OF CLAIMS
	COUNTY OF MECKLENBURG

	 	 	)	 	 	 

     THIS AGREEMENT made and entered into by and between Belk, Inc. and subsidiaries, including but
not limited to Belk Stores Services, Inc., and Belk Merchandising LLC (hereinafter referred to as
“Belk” or “the Company”), and Mary R. Delk (hereinafter referred to as “Ms. Delk”).

     WHEREAS, Belk and Ms. Delk agree that it is the best interest of both Belk and Ms. Delk that
her employment relationship with Belk be terminated; and

     WHEREAS, Belk and Ms. Delk agree that it is in the best interest of each that the terms and
conditions of her separation of employment be expressly set forth;

     NOW, THEREFORE, in consideration of the mutual covenants and promises stated in this document
by Belk and Ms. Delk to each other and for other good and valuable consideration, the receipt and
sufficiency of which are hereby expressly acknowledged by the parties, the parties agree that:

     1. Official Retirement Date. Ms. Delk will continue her active employment with Belk
through June 30, 2006, which will be her last day of active work. Belk will pay Ms. Delk through
June 30, 2006, at her current rate of pay as set forth in Paragraph 2 so long as she is actively
working for Belk. Ms. Delk will then be paid for ten (10) accrued, but unused, vacation days as
set forth in paragraph 2. Ms. Delk will not be paid for any unused personal days. Ms. Delk then
will be paid fifty-six (56) weeks of severance pay which ends on July 27, 2007 as set forth in
paragraph 2. Ms. Delk’s official retirement date from Belk will be July 27, 2007.

     If Belk hires a replacement for Ms. Delk prior to June 30, 2006, Belk shall have the right to
discontinue the active employment of Ms. Delk. In such event, Ms. Delk will be paid by Belk
through June 30, 2006 as if she were actively employed. Ms. Delk would then be paid the vacation
and severance pay as set forth above. Ms. Delk will accrue no vacation days for fiscal year 2008.

 

 

     Belk and Ms. Delk may agree that her last day of active work may be in the period between
April 29, 2006 and June 30, 2006. If Belk and Ms. Delk agree that her last day of active work
occurs between April 29, 2006 and June 30, 2006, then she will be paid thru her last day of active
work and the vacation and severance pay will then be paid starting from the last day of active work
and her date of retirement will be adjusted accordingly. In the event that Ms. Delk’s last day of
active work is prior to April 29, 2006, then Belk will only pay her current rate of pay thru the
date of her last day of active work, and she will receive no severance pay; however, Ms. Delk will
be paid for ten (10) accrued, but unused, days of vacation.

     2. Payments. For the active work period and the severance pay period, Ms. Delk will
be paid at her current rate of pay of $10,074.76 per week minus standard tax and required and
authorized deductions. Payments will be paid bi-weekly. The final pay period will end on July 27,
2007, unless adjusted pursuant to paragraph 1.

          The vacation and severance payments to be made by Belk pursuant to this Agreement shall be
paid if Ms. Delk becomes employed with another employer.

          If Ms. Delk resigns or is terminated for cause from Belk prior to April 29, 2006, she shall
receive only accrued vacation pay and her official retirement date shall be adjusted accordingly.

          Termination “for cause” includes, but is not limited to, the following examples:

	 	•	 	Unlawful harassment
	 	•	 	Dishonesty or theft
	 	•	 	Falsifying company documents
	 	•	 	Gross insubordination
	 	•	 	Crimes involving use of illegal drugs or alcohol
	 	•	 	Conviction of a crime of dishonesty or violence, even if not concerning
work at Belk
	 	•	 	Disruptions in the workplace, including use of racial or ethnic slurs
and particularly offensive profanity
	 	•	 	Fighting, threats or intimidation of bodily harm, or any use of or
threat of violence
	 	•	 	Having a dangerous weapon on company property without prior
authorization by the facility manager
	 	•	 	Misusing legally prescribed drugs while on the job
	 	•	 	Tape recording conversations with managers or other associates without
their prior knowledge and consent
	 	•	 	Violation of the Belk Acceptable Business Practices Policy

 

 

     During the active work period and any severance pay period Belk agrees that Ms. Delk’s
current benefits with Belk (including, but not limited to, 401(k) Company basic contributions,
Supplemental Executive Retirement Plan (SERP), Deferred Compensation Plan, 401(k) Restoration Plan
and the Company match to pre-tax contributions by Ms. Delk, if any, to the Company 401(k) plan)
will remain in effect so long as Ms. Delk pays her required benefit contributions, if any.

     Belk agrees that it will provide first class resume services and printing at Belk’s expense
for Ms. Delk for 12 weeks following the effective date of this Agreement.

     Ms. Delk shall not be entitled to any bonus payments for fiscal year 2007 and fiscal year
2008.

     Belk shall not reimburse Ms. Delk for any relocation expenses for herself and her family.

     Ms. Delk shall not be entitled to receive any Belk employee merchandise discount after her
last day of active employment.

     3. Release and Additional Promises. In consideration of the payments provided by Belk
in paragraph 2, Ms. Delk agrees as follows:

	 	a.	 	Release of Rights. That for herself and her
attorney, heirs, executors, administrators, successors and assigns, she
fully discharges and releases Belk (including its officers, directors,
managers, supervisors, and/or agents), any parent, or affiliated
companies (including their officers, directors, managers, supervisors,
or agents) from all administrative charges, lawsuits, causes of action,
employment contracts, demands, and claims for damages whatsoever in law
or equity regarding her employment and/or separation of employment that
she now knows or should know that exist against Belk, arising under any
state or federal statutory or common laws, including but not limited
to, all claims under the Age Discrimination in Employment Act (“ADEA”),
29 U.S.C. §§ 621, et seq.; the Older Workers Benefit
Protection Act; Title VII of the Civil Rights Act of 1964 (“Title
VII”), 42 U.S.C. § 2000e, et seq.; the Americans with
Disabilities Act (“ADA”), 42 U.S.C. § 12101, et seq.;
the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. §
1001, et seq.; the Consolidated Omnibus Budget
Reconciliation Act (“COBRA”), 29 U.S.C. § 1161, et seq;
the Equal Pay Act of 1963; the Vocational Rehabilitation Act of 1973;
the Civil Rights Acts of 1866, 1871 and 1991; Section 1981 of the Civil
Rights Act of 1866; the North Carolina Equal Employment Practices Act,
N.C.G.S.

 

 

	 	 	 	§143-422.1 et seg.; any state
wage payment laws; or claims alleging wrongful termination,
retaliation, whistleblower protection, and/or seeking damages for
mental and/or emotional distress, breach of implied or expressed
contract, whether oral or written, tortuous interference with
contractual relations, breach of promise, failure to hire,
misrepresentation, negligence, fraud, estoppel, defamation,
intentional or negligent infliction of emotional distress, loss of
consortium, violation of public policy, wrongful, abusive or
constructive discharge, or any other employment related tort; or any
other Federal, State, or local law relating to employment.
	 
	 	 	 	This Agreement is not intended to waive any claims that may arise
after the date this Agreement is executed or any rights or claims to
test the knowing and voluntary nature of the release of claims in
this Agreement under the Older Workers Benefit Protection Act, as
amended.
	 
	 	 	 	This Agreement is not intended to waive any claims that may arise
under the Fair Labor Standards Act, 29 U.S.C. § 201, et
seq., or the Family Medical Leave Act.
	 
	 	 	 	This Agreement does not waive or release any rights for
indemnification, if any, that Ms. Delk may have pursuant to the
bylaws of Belk, Inc. and pursuant to any Directors and Officers
Liability Insurance Policies which are maintained by Belk.
	 
	 	b.	 	No Reinstatement or Further Employment. Ms.
Delk agrees that she will not seek or hereafter apply for employment or
reinstatement of employment with Belk or any affiliated or subsidiary
companies, and that Belk has no obligation to consider her for
employment or reinstatement. Ms. Delk further agrees that if she does
apply for re-employment, Belk may deny her employment under this
Agreement, without recourse. Provided however Belk may, from time to
time in its sole discretion, retain Ms. Delk as a consultant under such
terms and conditions as may be agreed to by Belk and Ms. Delk.
	 
	 	c.	 	Confidentiality. Ms. Delk agrees that the
provisions of this Agreement are confidential and that the terms of
this Agreement, including the amount of any payment made as outlined in
paragraph 2 above, will not be divulged or disclosed in any manner
whatsoever to any person other than her attorney in a legally
recognized privileged communication; except that Ms. Delk may
communicate the terms of this Agreement to her accountant or tax return
preparer to the extent necessary in preparing her tax returns or to
receive relevant tax advice, and may disclose such terms to her spouse
and to her financial planner. Ms. Delk may also make such additional
disclosures as may be required by law, compelled

 

 

	 	 	 	by judicial process,
requested by a government agency, or as
necessary to enforce any term of this Agreement. The persons to
whom authorized disclosures are made shall be advised that further
disclosure of the information is not permitted. Ms. Delk agrees
that this paragraph is a material provision of this Agreement and
that a breach of this term will release Belk from any further
obligation under the Agreement and will entitle it to recover all
payments made pursuant to this Agreement, including an extra month
of wages as liquidated damages, and to receive such other and
further legal and equitable relief as may be appropriate, including
attorney fees and costs, if proven that Ms. Delk, her tax advisors,
spouse, financial planner, or her attorney breaches this provision.
	 
	 	d.	 	Cooperation. Ms. Delk agrees to reasonably cooperate
with Belk as well as its attorneys to provide information regarding events in
any matter related to her department or employment with Belk, including, if
necessary, providing information for and signing any necessary sworn
statements.
	 
	 	e.	 	No Disparagement. Subject to paragraph (d)
above, Ms. Delk agrees not to criticize, disparage, or otherwise demean
in any way Belk, its affiliates, or subsidiary companies, officers,
directors, managers, or supervisors.
	 
	 	 	 	No Disparagement. Likewise, Belk, its affiliates, or
subsidiary companies, officers, directors, managers, or supervisors
agree not to criticize, disparage, or otherwise demean in any way
the professionalism, conduct, reputation and good name of Ms. Delk.
	 
	 	f.	 	Confidentiality of Information. Ms. Delk
acknowledges and agrees that during her employment with Belk she had
access to and learned confidential information as a merchandise
professional in her capacity as President of Merchandising and
Marketing for Belk and she had access to, and learned confidential
information relating to various Company matters. Ms. Delk agrees that
she will not divulge or disclose in any manner any non-public or
confidential information relating to Belk, past and present Belk
employees, and matters that she learned about or was involved with
during her employment with Belk including rumors and allegations
regarding Belk and its past and present employees. Notwithstanding the
above, Ms. Delk may make such disclosures of non-public or confidential
matters relating to Belk as may be required by law or compelled by
judicial process. Ms. Delk agrees that this paragraph is a material
provision of this Agreement and that a breach of this paragraph will
release Belk from any further obligation under the Agreement and will
entitle Belk to recover all payments made pursuant to this Agreement,
including an extra month of wages as

 

 

	 	 	 	liquidated damages, and that Belk
shall be entitled to receive such
other and further legal and equitable relief, including attorney
fees and costs, as may be appropriate if proven that Ms. Delk has
breached this provision.
	 
	 	g.	 	Belk agrees that it will not issue an external press
release regarding the departure of Ms. Delk from Belk. Belk agrees
that the Belk internal communication attached as Exhibit A shall be the
sole communication distributed internally at Belk regarding the
departure of Ms. Delk.
	 
	 	 	 	Belk agrees that H. W. McKay Belk will be the primary contact for
prospective employers. Belk agrees that if a prospective employer
contacts Belk Corporate Human Resources (Steve Pernotto) or H. W.
McKay Belk regarding Ms. Delk that they will communicate only
information to a prospective employer which has been mutually agreed
upon between Ms. Delk and Belk.
	 
	 	h.	 	Belk agrees that Ms. Delk may participate in any
corporate buy back of Belk, Inc. stock beginning in fiscal year 2007.
Belk will not purchase any of Ms. Delk’s Belk, Inc. stock which she
currently or may own in the future outside of an approved corporate buy
back. Belk does not guarantee what the value of the share price of
the Belk, Inc. stock price will be per share at the time of any
corporate buy back period. Belk agrees that it will issue to Ms. Delk
any Belk, Inc. stock for which she is eligible as a retiree under the
Belk Long Term Incentive Plans V (100%), VI (67.7%) and VII (33.3%) and
the Transition Stock Plan, which are attached hereto as Exhibit B. Any
Belk, Inc. stock issued to Ms. Delk will be in accordance with the
terms of Long Term Incentive Plans V, VI and VII and the Belk
Transition Stock Plan; provided, however, Belk shall not deem Ms. Delk
ineligible for said plans if she subsequently obtains employment after
April 29, 2006 with an employer other than Belk. Ms. Delk will not be
a participant for any Long Term Incentive Plan or Transition Stock Plan
after the end of Belk fiscal year 2007 (February 3, 2007).
	 
	 	i.	 	From the effective date of this Agreement until Ms.
Delk’s last day of active work, Belk agrees that Ms. Delk may take a
reasonable number of days off for the purpose of interviewing with
prospective employers. Ms. Delk agrees that she shall notify her
supervisor, H. W. McKay Belk, in advance of taking any days off for the
purpose of interviewing prospective employers. Ms. Delk shall not be
charged a vacation day for a day that she uses for interviewing a
prospective employer.

     4. No Admission Of Wrongdoing. The parties agree that Belk has no prior legal
obligation to make the payments agreed to in paragraph 2 of this Agreement. Further, the parties

 

 

recognize that this Agreement shall not be construed as an admission of liability or wrongdoing
by Belk. Belk denies any wrongdoing or violation of law regarding Ms. Delk, her employment, and/or
separation of employment.

     5. General Acknowledgments.

	 	a.	 	Ms. Delk acknowledges that she possesses sufficient
education and experience to fully understand the terms of this
Agreement as it has been written, the legal and binding effect of this
Agreement, and the exchange of benefits and payments for promises
hereunder, and that she has had a full opportunity to discuss or ask
questions about all such terms.
	 
	 	b.	 	Ms. Delk agrees that the only consideration for signing
this Agreement are the terms stated above and that no other promises or
assurances of any kind have been made to her by Belk or any other
person as inducement to sign this Agreement. Therefore, this Agreement
constitutes the entire understanding of the parties, and no
representation, promise, or inducement not included in this Agreement
shall be binding on the parties.

     6. Notification Under The Older Workers Benefit Protection Act.

	 	a.	 	Time to Consider This Agreement. Ms. Delk
acknowledges that she has been provided with a copy of this Agreement
and has been given twenty-one (21) consecutive calendar days in which
to review and consider the Agreement. Ms. Delk acknowledges that while
she has twenty-one (21) consecutive calendar days to review and
consider this Agreement, she has the right to sign this Agreement at
any time within the twenty-one (21) consecutive calendar days from her
receipt of this document. Ms. Delk and Belk agree that any changes to
the terms and conditions of this Agreement (whether material or
immaterial) will not restart the running of the twenty-one (21) day
period.
	 
	 	b.	 	Legal Counsel. Ms. Delk is advised to consult
with legal counsel of her own choosing and seek clarification of any of
the terms of the Agreement prior to signing this Agreement. Ms. Delk
acknowledges that she has had ample opportunity to consult with an
attorney of her own choosing prior to her execution of this Agreement
and was encouraged and advised in writing to do so by the Company.

 

 

	 	c.	 	Revocation. Ms. Delk acknowledges that she has
a period of seven (7) calendar days following her signing of this
Agreement to revoke this Agreement. Any such revocation of the Agreement must
be in writing, signed by her, and delivered to Stephen J. Pernotto
in the Belk Stores Services Human Resources Office, located at 2801
West Tyvola Road, Charlotte, NC 28217, telephone number (704)
426-1890, on or before the seventh day after signing this Agreement.
	 
	 	d.	 	When the Terms Become Effective. The terms of
the Agreement shall become final and binding only upon expiration of
the revocation period provided in subparagraph 6(c) above. No payment
shall be made under paragraph 2 until the Agreement becomes final and
binding upon the parties.
	 
	 	 	 	If Ms. Delk signs this Agreement prior to the end of the twenty-one
(21) day time period, she certifies that she knowingly and
voluntarily decided to sign this Agreement after considering it less
than twenty-one (21) days, and her decision to do so was not induced
by Belk through fraud, misrepresentation, or a threat to withdraw or
alter the offer prior to the expiration of the twenty-one (21) day
time period.

     7. Modification. This Agreement may not be changed orally, but only by an Agreement
in writing, signed by the parties.

     8. Successors And Assigns. This Agreement shall inure to and be binding upon the
parties hereto, their respective heirs, legal representatives, successors, and assigns. Ms. Delk
further agrees that no other person or entity may bring any claim on her behalf falling within the
terms of this release and that should any such claim be brought on her behalf, she will cooperate
with Belk and its attorneys in seeking a prompt dismissal of that claim. Provided however if at
the time of Ms. Delk’s death, or if Ms. Delk is declared mentally incompetent, all of the financial
obligations of Belk pursuant to this Agreement have not been completed by Belk, then Ms. Delk’s
executor or administrator (if she is deceased) or her personal representative (if she is deemed to
be incompetent) shall have the right to bring a claim to enforce any uncompleted financial
obligations of Belk pursuant to this Agreement.

     9. Severability. The parties agree that the provisions of this Agreement shall be
deemed severable and that the invalidity or unenforceability of any portion of any provision shall
not affect the validity or enforceability of other portions of such provision or of other
provisions.

 

 

Such provisions shall be appropriately limited and given effect to the extent that
they may be enforceable.

     10. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of North Carolina, except as federal law may apply.

     MS. DELK FURTHER STATES THAT SHE HAS CAREFULLY READ THE FOREGOING TRANSITION AGREEMENT AND
RELEASE OF CLAIMS AND KNOWS THE CONTENTS AND SIGNS THE SAME OF HER OWN FREE ACT.

For Mary R. Delk :

Witness my hand and seal this the            day of                     , 2006.

	 	 	 
	 

	 	 
	 

	 	MARY R. DELK
	Sworn to and subscribed before me

the ______ day of ____________, 2006.
	 	 
	 
	 	 
	 
	 	 
	 
	Notary Public
	My Commission Expires:                     
	 	 

For Belk, Inc. and its subsidiaries

Witness my hand and seal this the            day of                     , 2006.

	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Stephen J. Pernotto, Executive Vice President
	Sworn to and subscribed before me

the ______ day of ____________, 2006.
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	Notary Public
	My Commission Expires:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]