Document:

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                                                                    EXHIBIT 10.3

                                   VANS, INC.

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT ("Agreement" herein) is entered into as of
January 20, 2000, by and between VANS, INC., a Delaware corporation (the
"Company"), and MARK SMITH ("Employee").

     1. Employment and Duties. The Company hereby employs Employee as Vice
President - Design of the Company on the terms and subject to the conditions
contained in this Agreement. Employee shall be responsible for the creative
direction of the Company's footwear design and managing the Company's footwear
designers. Employee hereby accepts such employment and agrees to perform in good
faith and to the best of Employee's ability all services which may be required
of Employee hereunder, to do what is asked of him, and to be available to render
services at all times and places in accordance with such directions, requests,
rules and regulations made by the Company in connection with Employee's
employment. Employee hereby acknowledges and understands the duties and services
that are expected of him hereunder, and he hereby represents that he has the
experience and knowledge to perform such duties and services. Employee's
performance shall be reviewed no less than twice per year. Each performance
review will include a determination as to whether the term of this Agreement
will be extended and as to whether Employee's compensation will be increased
(provided, however, that in no event can Employee's compensation be decreased
during the term of this Agreement). Employee shall, during the term hereof,
devote Employee's full time and energy to performing his duties. Employee shall
report to the Senior Vice President - Apparel and International of the Company.
Employee shall be based at the Company's corporate offices. Employee
understands, however, that Employee may be required to travel within and out of
the State of California to discharge his duties hereunder.

     2. Term of Employment. The term of this Agreement shall commence as of the
date hereof and shall terminate on January 19, 2003, unless sooner terminated as
provided herein or unless extended as provided herein. This Agreement does not
give Employee any enforceable right to employment beyond this term, and Employee
agrees that he shall have no rights hereunder thereafter. AS PROVIDED FURTHER IN
PARAGRAPH 11.1 BELOW, THIS AGREEMENT CONSTITUTES AN EMPLOYMENT AT-WILL THAT MAY
BE TERMINATED AT ANY TIME BY COMPANY OR EMPLOYEE, WITH OR WITHOUT CAUSE,
NOTWITHSTANDING THE THREE - YEAR TERM OF THIS AGREEMENT. IF EMPLOYEE IS
TERMINATED WITHOUT CAUSE DURING THE TERM HEREOF, OR AFTER A "CHANGE IN
MANAGEMENT OR CONTROL," AS DEFINED IN PARAGRAPH 11.5 BELOW, OR TERMINATES THIS
AGREEMENT FOR "GOOD REASON," AS DEFINED IN PARAGRAPH 11.3 BELOW, EMPLOYEE'S SOLE
REMEDY SHALL BE THE COMPENSATION SET FORTH IN PARAGRAPH 11.4 BELOW.

Initial  /s/ CEG                                            Initial  /s/ MS
         ---------                                                   ----------
   Representative                                                   Employee
  of the Company

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     3. Salary Compensation; Signing Bonus.

          3.1 As salary compensation for Employee's services hereunder and all
the rights granted hereunder by Employee to the Company, the Company shall pay
Employee a gross salary of no less than $185,000.00 per annum. Employee's salary
shall be payable in bi-weekly increments in accordance with the Company's
payroll practices for salaried employees, upon the condition that Employee fully
and faithfully performs Employee's services hereunder in accordance with the
terms and conditions of this Agreement. The Company shall deduct and withhold
from the compensation payable to Employee hereunder any and all amounts required
to be deducted or withheld by the Company under the provisions of any statute,
regulation, ordinance, or order and any and all amendments hereinafter enacted
requiring the withholding or deducting from compensation payable to employees.

          3.2 The Company shall pay Employee a "signing bonus" of $15,000, net
to Employee, on the day Employee begins performance of his employment duties
with the Company.

     4. Expense Reimbursement. Employee shall be reimbursed by the Company for
all traveling, hotel, entertainment and other expenses that are properly and
necessarily incurred by Employee, pursuant to the Company's policies on the
same.

     5. Death or Disability of Employee.

          5.1 General. In the event of Employee's death or "disability" (as such
term is defined in Paragraph 5.2 hereof) while in the employ of the Company,
this Agreement, and the compensation due to Employee pursuant to Paragraph 3
hereof, shall terminate upon the date of death or disability and the Company
shall thereafter be required to make payments only to Employee, as provided in
Paragraph 11.2 hereof. If Employee shall recover from such disability prior to
the expiration date of the Agreement, this Agreement and Employee's employment
hereunder shall be reinstated for the balance of the term of this Agreement.

          5.2 Definition of Disability. Employee shall be deemed disabled if, in
the sole opinion of the Company, Employee is unable to substantially perform the
services required of Employee hereunder for a period in excess of 60 consecutive
work days or 60 work days during any 90 work day period. In such event, Employee
shall be deemed disabled as of such 60th workday.

     6. Restrictive Covenant. During the term of this Agreement, Employee shall
(i) devote his full time and energy solely and exclusively to the performance of
his duties described herein; (ii) not directly or indirectly provide services to
or through any company or firm except the Company unless otherwise instructed by
the Company; (iii) not directly or indirectly own, manage, operate, join,
control, contribute to, or participate in the ownership, management, operation
or control of or be employed by or connected

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in any manner with any enterprise which is engaged in any business competitive
with or similar to that of the Company; and (iv) not render any services of any
kind or character for Employee's own account of for any other person, firm or
corporation without first obtaining the Company's consent in writing; provided,
however, Employee shall have the right to perform such incidental services as
are necessary in connection with Employee's (a) private passive investments
where he is not obligated or required to, and shall not in fact, devote any
managerial efforts, as long as such investments are not in companies which are
in competition in any way with the Company; or (b) charitable or community
activities, or in trade or professional organizations, provided that such
incidental services do not interfere with the performance of Employee's services
hereunder.

     7. Non-Solicitation. Employee shall not, during the full term of this
Agreement and for a period of one (1) year thereafter, for himself or on behalf
of any other person, partnership, corporation or entity, directly or indirectly,
or by action in concert with others, solicit, induce, suggest or encourage any
person known to him to be an employee of the Company or any affiliate of the
Company to terminate his or her employment or other contractual relationship
with the Company or any of its affiliates.

     8. Trade Secrets and Related Matters

          8.1 Definitions. For purpose of this Section 8:

               (a) "Records" means files, accounts, records, log books,
documents, drawings, sketches, designs, diagrams, models, plans, blueprints,
specifications, manuals, books, forms, notes, reports, memoranda, studies,
surveys, software, flow charts, data, computer programs, listing of source code,
calculations, recordings, catalogues, compilations of information,
correspondence, confidential data of customers and all copies, abstracts or
summaries of the foregoing in any storage medium, as well as instruments, tools,
storage devices, disks, equipment and all other physical items related to the
business of the Company (other than merely personal items of a general
professional nature), whether of a public nature or not, and whether prepared by
Employee or not.

               (b) "Trade Secrets" means confidential business or technical
information or trade secrets of the Company which Employee acquires while
employed by the Company, whether or not conceived of, developed or prepared by
Employee or at his direction and includes:

                    (i) Any information or compilation of information concerning
the Company's financial position, financing, purchasing, accounting, marketing,
merchandising, sales, salaries, pricing, investments, costs, profits, plans for
future development, employees, prospective employees, research, development,
formulae, patterns, inventions, plans, specifications, devices, products,
procedures, processes, operations, techniques, software, computer programs or
data;

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                    (ii) Any information or compilation of information
concerning the identity, plans, requirements, preferences, practices and methods
of doing business on specific customers, suppliers, prospective customers and
prospective suppliers of the Company;

                    (iii) Any other information or "know how" which is related
to any product, process, service, business or research of the Company; and

                    (iv) Any information which the Company acquires from another
party and treats as its proprietary information or designates as "Confidential,"
whether or not owned or developed by the Company.

     Notwithstanding the foregoing, "Trade Secrets" do not include any of the
following:

                    (i) Information which is publicly known or which is
generally employed by the trade, whether on or after the date that Employee
first acquires the information;

                    (ii) General information or knowledge which Employee would
have learned in the course of similar work elsewhere in the trade; or

                    (iii) Information which Employee can prove was known by
Employee before the commencement of Employee's engagement by the Company;

     8.2 Acknowledgments. Employee acknowledges that:

          (a) Employee's relationship with the Company will be a confidential
relationship in which Employee will have access to and may create Trade Secrets.

          (b) The Company uses the Trade Secrets in its business to obtain a
competitive advantage over its competitors who do not know or use that
information.

          (c) The protection of the Trade Secrets against unauthorized
disclosure or use is of critical importance in maintaining the competitive
position of the Company.

     8.3 Protection of Trade Secrets. Employee shall not at any time, without
the prior written consent of the Company, which may be withheld by it in its
sole and absolute discretion, disclose any Trade Secret in any way except to
employees of the Company, and shall not use any Trade Secret in any way except
in connection with his or her duties to the Company.

     8.4 Records.

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          (a) Ownership. All Records are and shall remain the exclusive property
of the Company.

          (b) Return of Records. At the termination of this Agreement, Employee
shall promptly return to the Company all records in Employee's possession or
over which Employee has control.

     8.5 Prohibited Use of Trade Secrets. During the term of this Agreement and
for 12 months following termination of this Agreement, Employee shall not
undertake any employment or consulting relationship (the "New Activity") if the
loyal and complete fulfillment of his or her duties in the New Activity would
inherently call upon Employee to reveal any Trade Secret.

     9. Ownership of Material and Ideas. Employee agrees that all material,
ideas, and inventions pertaining to the business of the Company or of any client
of the Company, including but not limited to, all patents and copyrights thereon
and renewals and extensions thereof, trademarks and trade names, and the names,
addresses and telephone numbers of customers, distributors and sales
representatives of the Company, belong solely to the Company. Employee hereby
assigns any rights he may have to any such property to the Company, and agrees
to execute and deliver any documents which evidence such assignment.

     10. Employee Plans, etc. Employee shall be entitled to participate, to the
same extent as most other officers of the Company, in any bonus compensation
plan, stock purchase or stock option plan, group life insurance plan, group
medical insurance plan and other compensation or employee benefit plans
(collectively, "Plans") which are generally available to a majority of the other
officers of the Company during the term hereof and for which Employee shall
qualify. Employee further understands, however, that the Board of Directors, or
such committee or person or persons designated by the Board of Directors, shall
determine in its sole discretion (i) whether any Plans are made available to a
majority of the officers of the Company; (ii) whether one or more Plans are
adopted solely for the Chief Executive Officer and/or one or more (but not a
majority) of the officers of the Company; (iii) whether one or more Plans are
made available to a majority of the officers; and (iv) the amounts payable or
the benefits provided thereunder to each participant in whole or in part.
Employee agrees and acknowledges that he has no vested interest in the
continuance of any Plan, and that no Plan in existence on the date of the
Agreement has acted as a material inducement to Employee in entering into this
Agreement. Notwithstanding anything to the contrary contained herein, the
Company shall use its best efforts to cause the Compensation Committee of the
Board of Directors to grant Employee an incentive stock option for 15,000 shares
of the Company's Common Stock with a three-year vesting schedule. Employee shall
be entitled to participate in the Company's Fiscal 2000 Bonus Plan with an
opportunity to receive a bonus equal to 30% of his salary, subject to terms and
conditions of the Plan.

     11. Termination.

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          11.1 "At Will" Employment. This Agreement, and Employee's employment,
is at will, and the Company may, with or without notice, terminate this
Agreement and all of the Company's obligations hereunder with or without
"Cause." Employee may also terminate this Agreement at any time, for any reason,
upon the giving of thirty (30) days' written notice to the Company; provided,
however, the Company may waive all or any portion of such notice period in its
sole and absolute discretion. For "Cause," as used in this Agreement, shall
mean: (i) Employee's conviction of a felony (which through the lapse of time or
otherwise is not subject to appeal) which has a material adverse impact on the
Company's' financial condition or reputation; (ii) Employee's willful refusal or
repeated neglect, without "Good Reason," to perform his duties under Section 1
of this Agreement; (iii) Employee's material breach of his fiduciary obligations
as an executive officer of the Company, if such breach has a serious adverse
impact upon the Company's financial condition or reputation; (iv) Employee's
intentional and material failure to adhere to the code of conduct and rules set
forth in the Company's Employee handbook, as amended from time to time; (v) the
death or disability of the Employee; and (vi) the voluntary termination by
Employee of his employment without "Good Reason" as defined in paragraph 11.3,
provided, however that with respect to (ii), (iii) and (iv) the Company must
first provide Employee a written notice (including all written evidence)
specifying the failure or breach on Employee's part and affording Employee
thirty (30) days to cure the violation to the reasonable satisfaction of the
Company.

          11.2 Termination for Cause. Upon termination for Cause, the Company
shall only be required to pay Employee (i) accrued salary compensation due to
Employee as compensation for services rendered hereunder and not previously
paid; (ii) accrued vacation pay; and (iii) any appropriate business expenses
incurred by Employee in connection with his duties hereunder and approved
pursuant to Section 4 hereof, all through the date of termination. Employee
shall not be entitled to any severance compensation; bonus compensation, whether
"vested" or unvested; or any other compensation, benefits or reimbursement of
any kind.

          11.3 Termination for "Good Reason." Employee may terminate this
Agreement for "Good Reason" (as hereinafter defined) upon thirty (30) days
written notice to the Company. The term "Good Reason" means: (i) Employee is not
appointed or is removed from the position of Vice President - Design without
Cause during the term of this Agreement; (ii) Company proposes, or without
Employee's consent makes, a material change in the duties described in Section
1; (iii) Employee, for any reason within the Company's control, is prevented
from or not permitted to perform the duties described in Section 1; or (iv)
Company in any other way breaches this Agreement. The term "Good Reason" does
not include a situation where certain of the duties described in Section 1 are
removed from Employee's responsibility and replaced with other duties which
constitute greater responsibility and/or authority, provided that Company and
Employee agree to the new duties and compensation therefor. Unless Employee
terminates this Agreement within thirty (30) days of learning from any source
that the Company has acted so as to provide "Good Reason" for Employee to
terminate this Agreement and gives thirty (30) days written notice of such
termination, Employee's

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right to receive severance compensation pursuant to paragraph 1.4 for such event
shall be forever lost.

          11.4 Severance Compensation. In the event (i) Employee terminates this
Agreement for Good Reason in accordance with Paragraph 11.3 hereof; (ii)
Employee is terminated for any reason (except death or disability) upon, or
within six months following, a "Change in Management or Control (as such term is
defined in Paragraph 11.5 hereof);" (iii) Employee is terminated without Cause;
or (iv) the Company allows this Agreement to expire without renewal, the Company
shall be obligated to pay severance compensation to Employee in an amount equal
to his salary compensation (at the rate payable at the time of such termination)
for a period of the lesser of (i) the remaining portion of the term of this
Agreement, or (ii) nine (9) months from the date of termination; provided,
however, if Employee is employed by a new employer, or as a consultant during
such period, the severance compensation payable to Employee hereunder shall be
reduced by the amount of compensation that Employee actually receives from the
new employer, or as a consultant. However, Employee shall have a duty to inform
the Company that he has obtained such new employment, and the failure to do so
is a material breach of this Agreement. In such event, the Company shall be
entitled to (i) cease all payments to Employee under this Paragraph 11.4; and
(ii) recover any unauthorized payments to Employee in an action for breach of
contract. Notwithstanding anything else in this Agreement to the contrary,
solely in the event of a termination upon or following a Change in Management or
Control, the amount of severance compensation paid to Employee hereunder shall
not include any amount that the Company is prohibited from deducting for federal
income tax purposes by virtue of Section 280G of the Internal Revenue Code of
1986, as amended, or any successor provision. In addition to the foregoing
severance compensation, the Company shall pay Employee (i) all compensation for
services rendered hereunder and not previously paid; (ii) accrued vacation pay;
and (iii) any appropriate business expenses incurred by Employee in connection
with his duties hereunder and approved pursuant to Section 4 hereof; and (iv)
Employee's prorated share of any bonus due pursuant to any bonus plan then in
effect, all through the date of termination. Employee shall not be entitled to
any bonus compensation, whether vested or unvested; or any other compensation,
benefits or reimbursement of any kind.

     11.5 Definition of "Change in Management or Control." The term "Change in
Management or Control" means (i) the time that the Company first determines that
any person and all other persons who constitute a group (within the meaning of
Section 13(d)(3) of the Securities Exchange Act of 1934 ("Exchange Act")) have
acquired direct or indirect beneficial ownership (within the meaning of Rule
13d-3 under the Exchange Act) of twenty percent (20%) or more of the Company's
outstanding securities, unless a majority of the "Continuing Directors" (as such
term is hereinafter defined) approves the acquisition not later than ten (10)
business days after the Company makes that determination, or (ii) the first day
on which a majority of the members of the Company's Board of Directors are not
"Continuing Directors." The term "Continuing Directors" means, as of any date of
determination, any member of the Board of Directors of the Company who (i) was a
member of that Board of Directors on the date of this Agreement, (iii) has been
a member of that Board of Directors for the

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two years immediately preceding such date of determination, or (iv) was
nominated for election or elected to the Board of Directors with the affirmative
vote of the greater of (x) a majority of the Continuing Directors who were
members of the Board at the time of such nomination or election, or (y) at least
four Continuing Directors.

     11.6 Exclusive Remedy. The payments referred to in this Section 11 shall be
exclusive and shall be the only remedy available to Employee for termination of
his employment with the Company, regardless of the circumstances, reasons or
motivation for any such termination. If Employee gives notice of termination of
this Agreement, or if it becomes known that this Agreement will otherwise
terminate in accordance with its provisions, the Company may, in its sole
discretion, relieve Employee of his duties under this Agreement or assign
Employee other duties and responsibilities to be performed until the termination
becomes effective.

     12. Services Unique. It is agreed that the services to be rendered by
Employee hereunder are of a special, unique, unusual, extraordinary and
intellectual character which gives them a peculiar value, the loss of which
cannot be reasonably or adequately compensated in damages in an action at law
and that a breach by Employee of any of the provisions contained herein will
cause the Company irreparable injury and damage. Employee expressly agrees that
the Company shall be entitled to injunctive or other equitable relief to prevent
a breach hereof. Resort to any such equitable relief shall not be construed as a
waiver of any of the rights or remedies which the Company may have against
Employee for damages or otherwise.

     13. Key Man Life Insurance. During the term of this Agreement, the Company
may at any time effect insurance on Employee's life and/or health in such
amounts and in such form as the Company may in its sole discretion decide.
Employee shall not have any interest in such insurance, but shall, if the
Company requests, submit to such medical examinations, supply such information
and execute such documents as may be required in connection with, or so as to
enable the Company to effect, such insurance.

     14. Vacation. Employee shall have the right during each one year period of
the term of this Agreement to take an aggregate of three weeks of vacation, with
pay, at such times as are mutually convenient to Employee and to the Company.

     15. Other Benefits.

          15.1 Expense Reimbursement for Relocation of Residence. The Company
shall, upon receipt of appropriate documentation from Employee, reimburse
Employee for all actual and reasonable expenses, including closing costs,
incurred by Employee in relocating his residence from Oregon to Southern
California, up to an aggregate of $40,000.00. The Company shall have no
obligation to purchase a new

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residence in Southern California for Employee or contribute to, or reimburse him
for, the purchase price thereof or closing costs associated therewith.

     16. Notices. Any and all notices, demands or other communications required
or desired to be given hereunder by any party shall be in writing and shall be
validly given or made to another party if given by personal delivery, telex,
facsimile, telegram or if deposited in the United States mail, certified or
registered, postage prepaid, return receipt requested. If such notice, demand or
other communication is given by personal delivery, telex, facsimile or telegram,
service shall be conclusively deemed made at the time of such personal service.
If such notice, demand or other communication is given by mail, such notice
shall be conclusively deemed given forty-eight (48) hours after the deposit
thereof in the United States mail addressed to the party to whom such notice,
demand or other communication is to be given as hereinafter set forth:

         To the Company:       VANS, INC.
                               15700 Shoemaker Avenue

                               Santa Fe Springs, California 90670
                               Attn: General Counsel

                               562/565-8413 - facsimile

         To Employee:          MARK SMITH
                               (at the address set forth below his signature)

Any party hereto may change his or its address for the purpose of receiving
notices, demands and other communications as herein provided by a written notice
given in the manner aforesaid to the other party or parties hereto.

     17. Applicable Law and Severability. This Agreement shall, in all respects,
be governed by the laws of the State of California applicable to agreements
executed and to be wholly performed within the State of California. Nothing
contained herein shall be construed so as to require the commission of any act
contrary to law, and wherever there is any conflict between any provision
contained herein and any present or future statute, law, ordinance or regulation
contrary to which the parties have no legal right to contract, the latter shall
prevail but the provision of this Agreement which is affected shall be curtailed
and limited only to the extent necessary to bring it within the requirements of
the law.

     18. Attorneys' Fees. In the event any action is instituted by a party to
enforce any of the terms and provisions contained herein, the prevailing party
in such action shall be entitled to such reasonable attorneys' fees, costs and
expenses as may be fixed by the Court.

     19. Modifications or Amendments. No amendment, change or modification of
this Agreement shall be valid unless in writing and signed by all of the parties
hereto. Further, any amendment, change or modification of this Agreement

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(including but not limited to the at-will nature of this Agreement as set forth
in Section 2 and Paragraph 11.1 hereof) must be approved in advance by the Board
of Directors of Company and reflected in the minutes of such Board's meetings or
in an action by unanimous written consent.

     20. Successors and Assigns. All of the terms and provisions contained
herein shall inure to the benefit of and shall be binding upon the parties
hereto and their respective heirs, personal representatives, successors and
assigns.

     21. Entire Agreement. This Agreement constitutes the entire understanding
and agreement of the parties with respect to the subject matter of this
Agreement, and any and all prior agreements, understandings or representations
are hereby terminated and canceled in their entirety and are of no further force
or effect. Employee specifically acknowledges and agrees that the Company has
not made any promises, assurances or guarantees regarding his employment or the
Company's business or future prospects, and he has not relied on any such
promises, assurances or guarantees in making his decision to become employed by
the Company and relocate his residence to Southern California.

     22. Counterparts. This Agreement may be executed in counterparts.

     23. Arbitration of Employment Disputes. Any dispute or controversy arising
out of this Agreement or the employment relationship between Employee and the
Company, including but not limited to, claims by Employee for wrongful
termination, race discrimination, sex discrimination, age discrimination,
discrimination based on nationality or religion, violation of Title VII of the
Civil Rights Act of 1964, as amended, the Americans with Disabilities Act of
1990, the Age Discrimination in Employment Act of 1967, as amended, and the
California Fair Housing and Employment Act, as amended, shall, at any time
following the termination of Employee's employment, be submitted to final and
binding arbitration that shall comply with the applicable arbitration rules of
either the American Arbitration Association or the Judicial Arbitration and
Mediation Service ("JAMS")/Endispute, and judgment upon the award rendered by
the arbitrator may be entered in any court having jurisdiction thereof. The cost
of arbitration (except for Employee's attorneys' fees and costs) shall be borne
by the Company. The arbitration shall occur in Los Angeles, California and the
parties hereby consent to the jurisdiction of the arbitrator and to service of
process. The arbitrator shall issue a written opinion regarding his/her
decision. EMPLOYEE HEREBY UNDERSTANDS THAT, BY SIGNING THIS AGREEMENT, HE IS
AGREEING TO HAVE ANY CLAIM HEREUNDER, OR UNDER HIS EMPLOYMENT RELATIONSHIP WITH
THE COMPANY, DECIDED BY NEUTRAL ARBITRATION AND IS GIVING UP THE RIGHT TO A JURY
OR COURT TRIAL. NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS PROVISION IS
INTENDED TO AFFECT OR RESTRICT ANY RIGHTS OR REMEDIES EMPLOYEE MIGHT HAVE IF HIS
CLAIMS WERE BROUGHT IN COURT.

     24. Survival of Certain Provisions. Sections 7,8,9, and 23 of this
Agreement shall survive the termination hereof.

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     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as
of the day and year first above written.

EMPLOYEE:                                       THE COMPANY:

                                                VANS, INC.,
                                                a Delaware corporation

/s/   Mark Smith                                 By: /s/ Craig E. Gosselin
---------------------------                         ---------------------------
       Mark Smith                                        Craig E. Gosselin

---------------------------                         ------------------------
Address                                             Title

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                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT
                               TABLE OF CONTENTS

1.    Period of Employment
2.    Position and Responsibilities
3.    Compensation and Benefits
4.    Termination of Employment
5.    Proprietary Information
6.    Arbitration
7.    Notices
8.    Action by Odwalla
9.    Integration
10.   Amendments; Waivers
11.   Assignment; Successors and Assigns
12.   Severability
13.   Attorneys' Fees
14.   Injunctive Relief
15.   Governing Law
16.   Interpretation
17.   Employee Acknowledgment

      This Agreement, dated as of December 21, 1999, is between Odwalla, Inc., a
California corporation ("Odwalla"), and D. Stephen C. Williamson ("Williamson").

                                    RECITALS

Odwalla and Williamson wish to continue their employment relationship on the
following terms and conditions.

Odwalla recognizes and acknowledges that Williamson has been valuable and
instrumental in developing Odwalla's business and good will and in coordinating
Odwalla's litigation strategy and efforts.

Williamson acknowledges the additional compensation conferred upon him by this
employment agreement, consisting of additional salary, health benefits, and
option vesting provisions in the event Williamson is terminated without Cause or
is Involuntarily Terminated following a Change in Control or Corporate
Transaction, as provided below.

Odwalla has spent significant time, effort, and money to develop certain
Proprietary Information (as defined below), which Odwalla considers vital to its
business and goodwill.

The Proprietary Information will necessarily be communicated to or acquired by
Williamson in the course of his employment with Odwalla, and Odwalla wishes to

<PAGE>   2

continue its employment relationship with Williamson only if, in doing so, it
can protect its Proprietary Information and goodwill.

ACCORDINGLY, the parties agree as follows:

1.    Period of Employment.

(a)   Basic Term. Odwalla shall continue to employ Williamson to render services
to Odwalla in the position and with the duties and responsibilities described in
Section 2 for the period (the "Period of Employment") commencing on the date of
this Agreement and ending upon the earlier of (i) December 21, 2002, as, and to
the extent, extended under Section 1(b); or (ii) the date upon which the Period
of Employment is terminated in accordance with Section 4.

(b)   Renewal. Subject to Section 4, Williamson's employment will be renewed
automatically for an additional one (1) year period (without any action by
either party) on December 21, 2002 and on each anniversary thereof, unless one
party gives to the other written notice sixty (60) days in advance of the
beginning of any one-year renewal period that the Period of Employment is to be
terminated. In no event shall the Period of Employment under this Agreement
extend or be renewed beyond December 21, 2005. Either party may elect not to
renew this Agreement with or without cause, in which case this Section 1(b)
shall govern Williamson's termination and not Section 4 (except for Williamson's
termination obligations set forth in Section 4(h), which shall remain in
effect). Nothing stated in this Agreement or represented orally or in writing to
either party shall create an obligation to renew this Agreement.

2.    Position and Responsibilities.

(a)   Position. Williamson accepts employment with Odwalla as Chief Executive
Officer and shall perform all services appropriate to that position, as well as
such other services as may be assigned by Odwalla. Williamson shall devote his
best efforts and full-time attention to the performance of his duties.
Williamson shall be subject to the direction of Odwalla, which shall retain full
control of the means and methods by which he performs the above services and of
the place(s) at which all services are rendered. Williamson shall be expected to
travel if necessary or advisable in order to meet the obligations of his
position.

(b)   Other Activity. Except upon the prior written consent of Odwalla,
Williamson (during the Period of Employment) shall not (i) accept any other
employment; or (ii) engage, directly or indirectly, in any other business,
commercial, or professional activity (whether or not pursued for pecuniary
advantage) that is or may be competitive with Odwalla, that might create a
conflict of interest with Odwalla, or that otherwise might interfere with the
business of Odwalla, or any Affiliate. An "Affiliate" shall mean any

                                       2
<PAGE>   3

person or entity that directly or indirectly controls, is controlled by, or is
under common control with Odwalla. So that Odwalla may be aware of the extent of
any other demands upon Williamson's time and attention, Williamson shall
disclose in confidence to Odwalla the nature and scope of any other business
activity in which he is or becomes engaged during the Period of Employment.

3.    Compensation and Benefits.

(a)   Compensation. In consideration of the services to be rendered under this
Agreement, Odwalla shall pay Williamson Two Hundred Thousand Dollars ($200,000)
per year, payable bi-weekly, pursuant to the procedures regularly established,
and as they may be amended, by Odwalla in its sole discretion, during the Period
of Employment. Odwalla shall review annually Williamson's compensation and shall
determine, in its sole discretion, whether and how much the existing
compensation shall be adjusted, without regard to any policy or practice Odwalla
may have for adjusting salaries. All compensation and comparable payments to be
paid to Williamson under this Agreement shall be less withholdings required by
law.

(b)   Benefits. Pursuant to the Compensation Committee's decision of June 14,
1999, regarding Senior Executive Officer vacation policy, Williamson will not
accrue vacation leave. Williamson shall have the right to participate in and to
receive benefits from all present and future benefit plans specified in
Odwalla's policies and generally made available to similarly situated employees
of Odwalla. The amount and extent of benefits to which Williamson is entitled
shall be governed by the specific benefit plan, as amended. Williamson also
shall be entitled to any benefits or compensation tied to termination as
described in Section 4. Odwalla reserves the ability, in its sole discretion, to
adjust Williamson's benefits provided under this Agreement. No statement
concerning benefits or compensation to which Williamson is entitled shall alter
in any way the term of this Agreement, any renewal thereof, or its termination.

(c)   Expenses. Odwalla shall reimburse Williamson for reasonable travel and
other business expenses incurred by Williamson in the performance of his duties,
in accordance with Odwalla's policies, as they may be amended in Odwalla's sole
discretion.

4.    Termination of Employment.

(a)   By Death. The Period of Employment shall terminate automatically upon the
death of Williamson. Odwalla shall pay to Williamson's beneficiaries or estate,
as appropriate, any compensation then due and owing, if any. Thereafter, all
obligations of Odwalla under this Agreement shall cease. Any stock option
outstanding at the time of Williamson's death shall remain exercisable by the
personal representative of Williamson's estate or by the person or persons to
whom the option is transferred pursuant to Williamson's will or in accordance
with the laws of descent and distribution and may be exercised as provided by
the relevant Stock Option Agreement. Nothing in

                                       3
<PAGE>   4

this Section shall affect any entitlement of Williamson's heirs to the benefits
of any life insurance plan or other applicable benefits.

(b)   By Disability. If, by reason of any physical or mental incapacity,
Williamson cannot perform his duties under this Agreement for six (6)
consecutive months, then, to the extent permitted by law, Williamson's Period of
Employment will be automatically terminated. Odwalla shall supplement any
benefits Williamson receives under Odwalla's disability plans to the extent
necessary to make Williamson's net compensation whole and shall provide
applicable benefits to which he is entitled up through the last business day on
which the Period of Employment was terminated; thereafter, all obligations of
Odwalla under this Agreement shall cease. Nothing in this Section shall affect
Williamson's rights under any applicable Odwalla disability plan.

(c)   By Employer Not For Cause. At any time, Odwalla may terminate Williamson
without Cause (as defined below) by providing Williamson sixty (60) days'
advance written notice, provided Odwalla:

      (i)   pays Williamson all compensation due to Williamson through December
      21, 2002, or the relevant anniversary thereof, if this Agreement has been
      automatically renewed as provided by Section 1(b). The compensation due to
      Williamson during this period will be based on Williamson's salary as of
      the effective date of termination and will be payable on a bi-weekly
      basis;

      (ii)  reimburses Williamson for the cost of acquiring health benefits,
      through COBRA or, to the extent Williamson's eligibility for COBRA ends
      prior to the fulfillment of this obligation, through the independent
      purchase of comparable health benefits, through December 21, 2002, or the
      relevant anniversary thereof, if this Agreement has been automatically
      renewed as provided by Section 1(b); and

      (iii) automatically accelerates each outstanding stock option so that each
      such option shall, at the time Williamson's termination becomes effective,
      become fully exercisable with respect to the total number of shares of
      stock at the time subject to such option and may be exercised for any or
      all of those shares as fully vested shares. Any options so accelerated
      shall remain exercisable for the limited period set forth in the stock
      option agreements evidencing the option, but no such option shall be
      exercisable after the expiration of the option term.

Odwalla shall have the option, in its complete discretion, to terminate
Williamson at any time prior to the end of the sixty (60) day notice period.

(d)   By Employer For Cause. At any time, and without prior notice, Odwalla may
terminate Williamson for Cause. Odwalla shall pay Williamson all compensation
then due and owing; thereafter, all of Odwalla's obligations under this
Agreement shall cease. Termination shall be for "Cause" if Williamson: (i) acts
in bad faith and to the detriment of Odwalla; (ii) refuses or fails to act in
accordance with any specific direction or order of

                                       4
<PAGE>   5

Odwalla; (iii) exhibits in regard to his employment unfitness or unavailability
for service, unsatisfactory performance, misconduct, dishonesty, habitual
neglect, or incompetence; (iv) is convicted of a crime involving dishonesty,
breach of trust, or physical or emotional harm to any person; (v) is selected
for layoff pursuant to a bona fide reduction-in-force; or (vi) breaches any
material term of this Agreement. If termination is due to Williamson's
disability, Section 4(b) above shall control, and not this subsection on
termination for Cause.

(e)   By Employee Not for Good Reason. At any time, Williamson may terminate his
employment without Good Reason (as defined below) by providing Odwalla thirty
(30) days' advance written notice. Odwalla shall have the option, in its
complete discretion, to make Williamson's termination effective at any time
prior to the end of such notice period, provided Odwalla pays Williamson all
compensation due and owing through the last day actually worked, plus an amount
equal to the base salary Williamson would have earned through the balance of the
above notice period, not to exceed thirty (30) days; thereafter, all of
Odwalla's obligations under this Agreement shall cease.

(f)   By Employee for Good Reason. Williamson may terminate his employment for
Good Reason by giving Odwalla thirty (30) days' advance written notice.
Termination shall be for "Good Reason" if:

      (i)   the position, duties, or responsibilities assigned to Williamson are
      materially and adversely changed; or

      (ii)  Odwalla fails to comply in any material respect with any of its
      material covenants and agreements hereunder.

Williamson's written notice of termination of his employment for Good Reason
shall specify with reasonable detail the nature of the grounds for such
termination and provide Odwalla with a period of thirty (30) days during which
Odwalla shall be given the opportunity to cure the condition constituting Good
Reason. Any such notice shall be made not more than forty-five (45) days after
the occurrence of the event that is the basis for the Good Reason. If the
condition is remedied within the thirty (30) day notice period, Williamson's
notice of termination shall be rescinded automatically; if not remedied,
termination shall become effective upon the expiration of the above notice
period. In the event Williamson terminates his employment for Good Reason
pursuant to this section, and Odwalla fails to cure the condition constituting
Good Reason, Williamson shall be entitled to receive severance pay in an amount
equal to Williamson's base salary then in effect (as specified pursuant to
Section 3(a)) for a period of twelve (12) months and reimbursement for the cost
of acquiring health benefits through COBRA for a period of twelve (12) months.
Such severance pay shall be in lieu of any damages under this Agreement for any
alleged breach. Thereafter, all of Odwalla's obligations under this Agreement
shall cease. Odwalla shall also have the option, in its complete discretion, to
make Williamson's termination effective at any time prior to the end of the
notice period, provided that Odwalla pays Williamson all compensation due and
owning through the balance of the notice period (not to exceed thirty (30)
days), in addition to the payment of twelve (12) months base salary and health
benefits reimbursement described

                                       5
<PAGE>   6

above. Such severance pay and health benefits reimbursement shall be paid in
accordance with Odwalla's normal payroll cycle.

(g)   Involuntary Termination Following Change in Control/Corporate Transaction.
To the extent permitted by law, Odwalla, in its sole discretion, may terminate
the Period of Employment (in which case all of Odwalla's obligations under this
Agreement shall cease after payment of all compensation due and owing) upon any
formal action of Odwalla's management to effect a Change in Control, as that
term is defined in the Addendum to Incentive Stock Option dated December 15,
1993, September 1, 1994, and March 5, 1997, each effective December 21, 1999,
and Addendum to Stock Option Agreement dated March 5, 1997, December 18, 1998
and June 14, 1999, each effective December 21, 1999, or a Corporate Transaction,
as that term is defined in the 1997 Stock Option/Stock Issuance Plan. In the
event Williamson is subjected to of an Involuntary Termination, as that term is
defined in the Addendum to Incentive Stock Option dated December 15, 1993,
September 1, 1994, and March 5, 1997, each effective December 21, 1999, and
Addendum to Stock Option Agreement dated March 5, 1997, December 18, 1998 and
June 14, 1999, each effective December 21, 1999, within twelve (12) months of a
Change in Control or a Corporate Transaction, Odwalla will:

      (i)   pay Williamson all compensation due to Williamson through December
      21, 2002, or the relevant anniversary thereof, if this Agreement has been
      automatically renewed as provided by Section 1(b). The compensation due to
      Williamson during this period will be based on Williamson's salary as of
      the effective date of the Involuntary Termination and will be payable on a
      bi-weekly basis;

      (ii)  reimburse Williamson for the cost of acquiring health benefits,
      through COBRA or, to the extent Williamson's eligibility for COBRA ends
      prior to the fulfillment of this obligation, through the independent
      purchase of comparable health benefits, through December 21, 2002, or the
      relevant anniversary thereof, if this Agreement has been automatically
      renewed as provided by Section 1(b); and

      (iii) automatically accelerate each outstanding stock option so that each
      such option shall, immediately upon an Involuntary Termination of
      Williamson's Service, become fully exercisable with respect to the total
      number of shares of stock at the time subject to such option and may be
      exercised for any or all of those shares as fully vested shares. Any
      options so accelerated shall remain exercisable for the limited period set
      forth in the stock option agreements evidencing the option, but no such
      option shall be exercisable after the expiration of the option term.

In addition, notwithstanding any provision of this Agreement to the contrary,
the total payments or benefits to be made or provided to Williamson by Odwalla
(whether pursuant to this Agreement or otherwise) due to a Change of Control or
Corporate Transaction shall not exceed three times Williamson's annualized
includible compensation for the base period, as defined in subsection (d) of
Section 280G of the Internal Revenue Code of 1986 ("Code"), minus one dollar

                                       6
<PAGE>   7

($1.00). The intent of this portion of this Section is to prevent any payment or
benefit, including the acceleration of vesting of any outstanding and unvested
stock options, to Williamson from being subject to the excise tax imposed by
Code Section 4999.

(h)   Termination Obligations.

      (i)   Williamson agrees that all property, including, without limitation,
all equipment, tangible Proprietary Information (as defined below), documents,
books, records, reports, notes, contracts, lists, computer disks (and other
computer-generated files and data), and copies thereof, created on any medium
and furnished to, obtained by, or prepared by Williamson in the course of or
incident to his employment, belongs to Odwalla and shall be returned promptly to
Odwalla upon termination of the Period of Employment.

      (ii)  All benefits to which Williamson is otherwise entitled shall cease
upon Williamson's termination, unless explicitly continued either under this
Agreement or under any specific written policy or benefit plan of Odwalla.

      (iii) Upon termination of the Period of Employment, Williamson shall be
deemed to have resigned from all offices then held with Odwalla or any
Affiliate.

      (iv)  The representations and warranties contained in this Agreement and
Williamson's obligations under this Section 4(h) on Termination Obligations and
Section 5 on Proprietary Information shall survive the termination of the Period
of Employment and the expiration of this Agreement.

      (v)   Following any termination of the Period of Employment, Williamson
shall fully cooperate with Odwalla in all matters relating to the winding up of
pending work on behalf of Odwalla and the orderly transfer of work to other
employees of Odwalla. Williamson shall also cooperate in the defense of any
action brought by any third party against Odwalla that relates in any way to
Williamson's acts or omissions while employed by Odwalla or in the defense of
any action brought by any third party relating to litigation pending against
Odwalla at the time the Period of Employment is terminated.

5.    Proprietary Information.

(a)   Defined. "Proprietary Information" is all information and any idea in
whatever form, tangible or intangible, pertaining in any manner to the business
of Odwalla, or any Affiliate, or its employees, clients, consultants, or
business associates, which was produced by any employee of Odwalla in the course
of his or her employment or otherwise produced or acquired by or on behalf of
Odwalla. All Proprietary Information not generally known outside of Odwalla's
organization, and all Proprietary Information so known only through improper
means, shall be deemed "Confidential Information." Williamson should consult any
Odwalla procedures instituted to identify and protect certain types of
Confidential Information, which are considered by Odwalla to be

                                       7
<PAGE>   8

safeguards in addition to the protection provided by this Agreement. Nothing
contained in those procedures or in this Agreement is intended to limit the
effect of the other.

(b)   General Restrictions on Use. During the Period of Employment, Williamson
shall use Proprietary Information, and shall disclose Confidential Information,
only for the benefit of Odwalla and as is necessary to carry out his
responsibilities under this Agreement. Following termination, Williamson shall
neither, directly or indirectly, use any Proprietary Information nor disclose
any Confidential Information, except as expressly and specifically authorized in
writing by Odwalla. The publication of any Proprietary Information through
literature or speeches must be approved in advance in writing by Odwalla.

(c)   Location and Reproduction. Williamson shall maintain at his work station
and/or any other place under his control only such Confidential Information as
he has a current "need to know." Williamson shall return to the appropriate
person or location or otherwise properly dispose of Confidential Information
once that need to know no longer exists. Williamson shall not make copies of or
otherwise reproduce Confidential Information unless there is a legitimate
business need for reproduction.

(d)   Prior Actions and Knowledge. Williamson represents and warrants that from
the time of his first contact with Odwalla, he has held in strict confidence all
Confidential Information and has not disclosed any Confidential Information,
directly or indirectly, to anyone outside of Odwalla, or used, copied,
published, or summarized any Confidential Information, except to the extent
otherwise permitted in this Agreement.

(e)   Third-Party Information. Williamson acknowledges that Odwalla has received
and in the future will receive from third parties their confidential information
subject to a duty on Odwalla's part to maintain the confidentiality of this
information and to use it only for certain limited purposes. Williamson agrees
that he owes Odwalla and these third parties, during the Period of Employment
and thereafter, a duty to hold all such confidential information in the
strictest confidence and not to disclose or use it, except as necessary to
perform his obligations hereunder and as is consistent with Odwalla's agreement
with third parties.

(f)   Competitive Activity. Williamson acknowledges and agrees that the pursuit
of the activities forbidden by this subsection would necessarily involve the use
or disclosure of Confidential Information in breach of the preceding
subsections, but that proof of such a breach would be extremely difficult. To
forestall this disclosure, use, and breach, and in consideration of the
employment under this Agreement, Williamson agrees that for a period of one (1)
year following the termination of his employment relationship with Odwalla or
for any period in which he is entitled to payments and health benefits pursuant
to Sections 4(c) and 4(f), whichever is greater, he shall not, directly or
indirectly, (i) divert or attempt to divert from Odwalla (or any Affiliate) any
business of any kind in which it is engaged; (ii) employ or recommend for
employment any person employed by Odwalla (or any Affiliate); or (iii) engage in
any business activity that is or may be competitive with Odwalla (or any
Affiliate) in any state where Odwalla conducts

                                       8
<PAGE>   9

its business, unless Williamson can prove that any action taken in contravention
of this subsection was done without the use in any way of Confidential
Information. Additionally, in consideration of the employment under this
Agreement, Williamson agrees that upon the event that he, directly or
indirectly, (i) diverts or attempts to divert from Odwalla (or any Affiliate)
any business of any kind in which it is engaged; (ii) employs or recommends for
employment any person employed by Odwalla (or any Affiliate); or (iii) engages
in any business activity that is or may be competitive with Odwalla (or any
Affiliate) in any state where Odwalla conducts its business, during such time as
that Williamson is not employed by Odwalla but receiving payments and health
benefits pursuant to Sub-Sections 4(c) and 4(f), all of Odwalla's obligations
under this Agreement shall cease.

(g)   Interference with Business. In order to avoid disruption of Odwalla's
business, Williamson agrees that for a period of one (1) year after termination
of the Period of Employment, he shall not, directly or indirectly, (i) solicit
any customer of Odwalla (or any Affiliate) known to Williamson during the Period
of Employment to have been a customer; or (ii) solicit for employment any person
employed by Odwalla (or any Affiliate). Additionally, Williamson agrees that in
the event he, directly or indirectly, (i) solicits any customer of Odwalla (or
any Affiliate) known to Williamson during the Period of Employment to have been
a customer; or (ii) solicits for employment any person employed by Odwalla (or
any Affiliate) during such time as that Williamson is not employed by Odwalla
but receiving payments and health benefits pursuant to Sub-Sections 4(c) and
4(f), all of Odwalla's obligations under this Agreement shall cease.

(h)   Maintenance of Records. Williamson agrees to keep and maintain adequate
and current written records of all sales and customer transactions, which
records shall be available to and remain the sole property of Odwalla at all
times.

(i)   The rights and obligations created in Section 5 of this Employment
Agreement are in addition to the rights and obligations contained the Employee
Proprietary Information Agreement executed by Williamson on August 3, 1993.

6.    Arbitration.

(a)   Arbitrable Claims. To the fullest extent permitted by law, all contractual
disputes between Williamson (and his attorneys, successors, and assigns) and
Odwalla (and its Affiliates, shareholders, directors, officers, employees,
agents, successors, attorneys, and assigns) arising under this Agreement
("Arbitrable Claims") shall be resolved by arbitration. All persons and entities
specified in the preceding sentence (other than Odwalla and Williamson) shall be
considered third-party beneficiaries of the rights and obligations created by
this Section on Arbitration.

(b)   Procedure. Arbitration of Arbitrable Claims shall be in accordance with
the National Rules for the Resolution of Employment Disputes of the American
Arbitration Association, as amended ("AAA Employment Rules"), as augmented in
this Agreement.

                                       9
<PAGE>   10

Arbitration shall be initiated as provided by the AAA Employment Rules, although
the written notice to the other party initiating arbitration shall also include
a statement of the claim(s) asserted and the facts upon which the claim(s) are
based. Arbitration shall be final and binding upon the parties and shall be the
exclusive remedy for all Arbitrable Claims. Either party may bring an action in
court to compel arbitration under this Agreement and to enforce an arbitration
award. Otherwise, neither party shall initiate or prosecute any lawsuit or
administrative action in any way related to any Arbitrable Claim.
Notwithstanding the foregoing, either party may, at its option, seek injunctive
relief pursuant to section 1281.8 of the California Code of Civil Procedure. All
arbitration hearings under this Agreement shall be conducted in San Francisco.
In any arbitration proceeding under this Agreement, the parties shall have the
rights to discovery provided for in the AAA Employment Rules. The interpretation
and enforcement of this agreement to arbitrate shall be governed by the
California Arbitration Act. THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO
TRIAL BY JURY IN REGARD TO ARBITRABLE CLAIMS, INCLUDING WITHOUT LIMITATION ANY
RIGHT TO TRIAL BY JURY AS TO THE MAKING, EXISTENCE, VALIDITY, OR ENFORCEABILITY
OF THE AGREEMENT TO ARBITRATE.

(c)   Arbitrator Selection and Authority. All disputes involving Arbitrable
Claims shall be decided by a single arbitrator. The arbitrator shall be selected
by mutual agreement of the parties within thirty (30) days of the effective date
of the notice initiating the arbitration. If the parties cannot agree on an
arbitrator, then the complaining party shall notify the AAA and request
selection of an arbitrator in accordance with the AAA Employment Rules. The
arbitrator shall have only such authority to award equitable relief, damages,
costs, and fees as a court would have for the particular claim(s) asserted. The
fees of the arbitrator shall be split between both parties equally. If the
allocation of responsibility for payment of the arbitrator's fees would render
the obligation to arbitrate unenforceable, the parties authorize the arbitrator
to modify the allocation as necessary to preserve enforceability. The arbitrator
shall have exclusive authority to resolve all Arbitrable Claims, including, but
not limited to, any claim that all or any part of this Agreement is void or
unenforceable.

(d)   Confidentiality. All proceedings and all documents prepared in connection
with any Arbitrable Claim shall be confidential and, unless otherwise required
by law, the subject matter thereof shall not be disclosed to any person other
than the parties to the proceedings, their counsel, witnesses and experts, the
arbitrator, and, if involved, the court and court staff. All documents filed
with the arbitrator or with a court shall be filed under seal. The parties shall
stipulate to all arbitration and court orders necessary to effectuate fully the
provisions of this subsection concerning confidentiality.

(e)   Continuing Obligations. The rights and obligations of Williamson and
Odwalla set forth in this Section on Arbitration shall survive the termination
of Williamson's employment and the expiration of this Agreement.

7.    Notices. Any notice or other communication under this Agreement must be in
writing

                                       10
<PAGE>   11

and shall be effective upon delivery by hand, upon facsimile transmission to
Odwalla (but only upon receipt by Williamson of a written confirmation of
receipt), or three (3) business days after deposit in the United States mail,
postage prepaid, certified or registered, and addressed to Odwalla or to
Williamson at the corresponding address or fax number (if any) below. Williamson
shall be obligated to notify Odwalla in writing of any change in his address.
Notice of change of address shall be effective only when done in accordance with
this Section.

Odwalla's Notice Address:

      Odwalla, Inc.
      120 Stone Pine Road
      Half Moon Bay, CA  94019
      Fax Number:  650-712-5959

Williamson's Notice Address:

      D. Stephen C. Williamson
      3662 Clay Street
      San Francisco, CA  94118

8.    Action by Odwalla. All actions required or permitted to be taken under
this Agreement by Odwalla, including, without limitation, exercise of
discretion, consents, waivers, and amendments to this Agreement, shall be made
and authorized only by the President or by his or her representative
specifically authorized in writing to fulfill these obligations under this
Agreement.

9.    Integration. This Agreement is intended to be the final, complete, and
exclusive statement of the terms of Williamson's employment by Odwalla. This
Agreement supersedes all other prior and contemporaneous agreements and
statements, whether written or oral, express or implied, pertaining in any
manner to the employment of Williamson, and it may not be contradicted by
evidence of any prior or contemporaneous statements or agreements. To the extent
that the practices, policies, or procedures of Odwalla, now or in the future,
apply to Williamson and are inconsistent with the terms of this Agreement, the
provisions of this Agreement shall control.

10.   Amendments; Waivers. This Agreement may not be amended except by an
instrument in writing, signed by each of the parties. No failure to exercise and
no delay in exercising any right, remedy, or power under this Agreement shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right, remedy, or power under this Agreement preclude any other or further
exercise thereof, or the exercise of any other right, remedy, or power provided
herein or by law or in equity.

                                       11
<PAGE>   12

11.   Assignment; Successors and Assigns. Williamson agrees that he will not
assign, sell, transfer, delegate, or otherwise dispose of, whether voluntarily
or involuntarily, or by operation of law, any rights or obligations under this
Agreement. Any such purported assignment, transfer, or delegation shall be null
and void. Nothing in this Agreement shall prevent the consolidation of Odwalla
with, or its merger into, any other entity, or the sale by Odwalla of all or
substantially all of its assets, or the otherwise lawful assignment by Odwalla
of any rights or obligations under this Agreement. Subject to the foregoing,
this Agreement shall be binding upon and shall inure to the benefit of the
parties and their respective heirs, legal representatives, successors, and
permitted assigns, and shall not benefit any person or entity other than those
specifically enumerated in this Agreement.

12.   Severability. If any provision of this Agreement, or its application to
any person, place, or circumstance, is held by an arbitrator or a court of
competent jurisdiction to be invalid, unenforceable, or void, such provision
shall be enforced to the greatest extent permitted by law, and the remainder of
this Agreement and such provision as applied to other persons, places, and
circumstances shall remain in full force and effect.

13.   Attorneys' Fees. In any legal action, arbitration, or other proceeding
brought to enforce or interpret the terms of this Agreement, the prevailing
party shall be entitled to recover reasonable attorneys' fees and costs.

14.   Injunctive Relief. If Williamson breaches or threatens to breach any of
the covenants in Section 5 on Proprietary Information, the parties acknowledge
and agree that the damage or imminent damage to Odwalla's business or its
goodwill would be irreparable and extremely difficult to estimate, making any
remedy at law or in damages inadequate. Accordingly, Odwalla shall be entitled
to injunctive relief against Williamson in the event of any breach or threatened
breach of the above provisions by Williamson, in addition to any other relief
(including damages) available to Odwalla under this Agreement or under law.

15.   Governing Law. This Agreement shall be governed by and construed in
accordance with the law of the State of California.

16.   Interpretation. This Agreement shall be construed as a whole, according to
its fair meaning, and not in favor of or against any party. By way of example
and not in limitation, this Agreement shall not be construed in favor of the
party receiving a benefit nor against the party responsible for any particular
language in this Agreement. Captions are used for reference purposes only and
should be ignored in the interpretation of the Agreement.

                                       12
<PAGE>   13

17.   Employee Acknowledgment. Williamson acknowledges that he has had the
opportunity to consult legal counsel in regard to this Agreement, that he has
read and understands this Agreement, that he is fully aware of its legal effect,
and that he has entered into it freely and voluntarily and based on his own
judgment and not on any representations or promises other than those contained
in this Agreement.

The parties have duly executed this Agreement as of the date first written
above.

-------------------------------------
      D. Stephen C. Williamson

      Odwalla, Inc.

-------------------------------------

      By:  Richard Grubman
      Its: Chairman, Board of Directors Compensation Committee

                                       13

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