Document:

Unassociated Document

Exhibit 10.1

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT

 

Reference is made that certain Employment Agreement dated as of January 1, 2007 by and between Vermont Pure Holdings, Ltd. (together with any subsidiaries, the “Company”) and Peter K. Baker (the “Executive”).  This Amendment No. 1 to Employment Agreement is
dated as of September 10, 2009.  Capitalized terms used in this Amendment No. 1 but not otherwise defined shall have the respective meanings ascribed to them in the Employment Agreement.

 

Section 1.  The parties to the Employment Agreement hereby amend the Employment Agreement by deleting Section 3.2.2 of the Employment Agreement in its entirety and substituting in place thereof the following new text,
which shall constitute Section 3.2.2 of the Employment Agreement:

 

3.2.2           Fiscal Year 2009 and 2010 Budgeted EBITDA Bonus.  With respect to the Company’s fiscal years
ending October 2009 (“FY 2009”) and October 2010 (“FY2010”), the following definitions shall apply:  “EBITDA” shall mean annual earnings before interest, taxes, depreciation and amortization.  “Adjusted EBITDA” shall mean EBITDA calculated without regard to any items of non-operating income or loss or goodwill impairment.  If the Company has actual Adjusted EBITDA, expressed as a percentage of target annual EBITDA approved in the budget
for FY 2009 and FY2010, respectively, by the Board of Directors, which is at least 90% of such target annual EBITDA for the fiscal year in question, then the Company shall pay the Executive an annual bonus as set forth in the following table.  The Compensation Committee may approve, but shall have no obligation to approve, a discretionary bonus to the Executive that takes non-operating income or loss or goodwill impairment, if any, into account.

 

	
Actual Adjusted EBITDA Divided by Target EBITDA
	 	 	 	 	
Bonus
	 
	
less than 90% of target
	 	 	-	 	 	$	-0-	 
	
at least 90% but less than 91% of target
	 	 	-	 	 	 	40,000	 
	
at least 91% but less than 92% of target
	 	 	-	 	 	 	44,000	 
	
at least 92% but less than 93% of target
	 	 	-	 	 	 	48,000	 
	
at least 93% but less than 94% of target
	 	 	-	 	 	 	52,000	 
	
at least 94% but less than 95% of target
	 	 	-	 	 	 	56,000	 
	
at least 95% but less than 96% of target
	 	 	-	 	 	 	60,000	 
	
at least 96% but less than 97% of target
	 	 	-	 	 	 	64,000	 
	
at least 97% but less than 98% of target
	 	 	-	 	 	 	68,000	 
	
at least 98% but less than 99% of target
	 	 	-	 	 	 	72,000	 
	
at least 99% but less than 100% of target
	 	 	-	 	 	 	76,000	 
	
at least 100% but less than 102% of target
	 	 	-	 	 	 	80,000	 
	
at least 102% but less than 104% of target
	 	 	-	 	 	 	81,600	 
	
at least 104% but less than 106% of target
	 	 	-	 	 	 	83,200	 
	
at least 106% but less than 108% of target
	 	 	-	 	 	 	84,800	 
	
at least 108% but less than 110% of target
	 	 	-	 	 	 	86,400	 
	
at least 110% but less than 112% of target
	 	 	-	 	 	 	88,000	 
	
at least 112% but less than 114% of target
	 	 	-	 	 	 	89,600	 
	
at least 114% but less than 116% of target
	 	 	-	 	 	 	91,200	 
	
at least 116% but less than 118% of target
	 	 	-	 	 	 	92,800	 
	
at least 118% but less than 120% of target
	 	 	-	 	 	 	94,400	 
	
at least 120% of target or greater
	 	 	-	 	 	 	96,000	 

 

 

 

 

 

1

 

 

 

 

Section 2.  Except as expressly amended hereby, the provisions of the Employment Agreement shall remain in full force and effect.

 

IN WITNESS WHEREOF, the parties have executed this Amendment No. 1 to Employment Agreement as of the date set forth above.

 

	                               COMPANY:   	VERMONT PURE HOLDINGS, LTD.	 
	 	 	 	 
	
 
	
By: 
	/s/ Bruce S. MacDonald	 
	 	 	Name:  Bruce MacDonald	 
	 	 	Title:  CFO	 
	 	 	 	 
	                               EXECUTIVE: 	By:	/s/ Peter K. Baker	 
	 	 	PETER K. BAKER	 
	 	 	 	 
	 	 	 	 

                             

 

 

 

2Unassociated Document

 

Exhibit 10.2

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT

 

Reference is made that certain Employment Agreement dated as of January 1, 2007 by and between Vermont Pure Holdings, Ltd. (together with any subsidiaries, the “Company”) and John B. Baker (the “Executive”).  This Amendment No. 1 to Employment Agreement is dated
as of September 10, 2009.  Capitalized terms used in this Amendment No. 1 but not otherwise defined shall have the respective meanings ascribed to them in the Employment Agreement.

 

Section 1.  The parties to the Employment Agreement hereby amend the Employment Agreement by deleting Section 3.2.2 of the Employment Agreement in its entirety and substituting in place thereof the following new text,
which shall constitute Section 3.2.2 of the Employment Agreement:

 

3.2.2           Fiscal Year 2009 and 2010 Budgeted EBITDA Bonus.  With respect to the Company’s fiscal years
ending October 2009 (“FY 2009”) and October 2010 (“FY2010”), the following definitions shall apply:  “EBITDA” shall mean annual earnings before interest, taxes, depreciation and amortization.  “Adjusted EBITDA” shall mean EBITDA calculated without regard to any items of non-operating income or loss or goodwill impairment.  If the Company has actual Adjusted EBITDA, expressed as a percentage of target annual EBITDA approved in the budget
for FY 2009 and FY2010, respectively, by the Board of Directors, which is at least 90% of such target annual EBITDA for the fiscal year in question, then the Company shall pay the Executive an annual bonus as set forth in the following table.  The Compensation Committee may approve, but shall have no obligation to approve, a discretionary bonus to the Executive that takes non-operating income or loss or goodwill impairment, if any, into account.

 

	
Actual Adjusted EBITDA Divided by Target EBITDA
	 	 	 	 	Bonus	 
	
less than 90% of target
	 	 	-	 	 	$	-0-	 
	
at least 90% but less than 91% of target
	 	 	-	 	 	 	40,000	 
	
at least 91% but less than 92% of target
	 	 	-	 	 	 	44,000	 
	
at least 92% but less than 93% of target
	 	 	-	 	 	 	48,000	 
	
at least 93% but less than 94% of target
	 	 	-	 	 	 	52,000	 
	
at least 94% but less than 95% of target
	 	 	-	 	 	 	56,000	 
	
at least 95% but less than 96% of target
	 	 	-	 	 	 	60,000	 
	
at least 96% but less than 97% of target
	 	 	-	 	 	 	64,000	 
	
at least 97% but less than 98% of target
	 	 	-	 	 	 	68,000	 
	
at least 98% but less than 99% of target
	 	 	-	 	 	 	72,000	 
	
at least 99% but less than 100% of target
	 	 	-	 	 	 	76,000	 
	
at least 100% but less than 102% of target
	 	 	-	 	 	 	80,000	 
	
at least 102% but less than 104% of target
	 	 	-	 	 	 	81,600	 
	
at least 104% but less than 106% of target
	 	 	-	 	 	 	83,200	 
	
at least 106% but less than 108% of target
	 	 	-	 	 	 	84,800	 
	
at least 108% but less than 110% of target
	 	 	-	 	 	 	86,400	 
	
at least 110% but less than 112% of target
	 	 	-	 	 	 	88,000	 
	
at least 112% but less than 114% of target
	 	 	-	 	 	 	89,600	 
	
at least 114% but less than 116% of target
	 	 	-	 	 	 	91,200	 
	
at least 116% but less than 118% of target
	 	 	-	 	 	 	92,800	 
	
at least 118% but less than 120% of target
	 	 	-	 	 	 	94,400	 
	
at least 120% of target or greater
	 	 	-	 	 	 	96,000	 

 

 

 

 

1

 

 

Section 2.  Except as expressly amended hereby, the provisions of the Employment Agreement shall remain in full force and effect.

 

IN WITNESS WHEREOF, the parties have executed this Amendment No. 1 to Employment Agreement as of the date set forth above.

 

 

	                         COMPANY:  	VERMONT PURE HOLDINGS, LTD.	 
	 	 	 	 
	
 
	
By: 
	/s/ Bruce S. MacDonald	 
	 	 	Name:  Bruce MacDonald	 
	 	 	Title:  CFO	 
	                         EXECUTIVE:	 	 	 
	 	By:	/s/ John B. Baker	 
	 	 	JOHN B. BAKER	 
	 	 	 	 
	 	 	 	 

                              

 

 

 

 

2Unassociated Document

 

Exhibit 10.3

SETTLEMENT AGREEMENT AND GENERAL RELEASE

 

This Settlement Agreement and Release (the “Settlement Agreement”) is entered into as a document under seal as of July 31, 2009, by and between Vermont Pure Holdings, Ltd. (“Vermont Pure”), on the one hand, and Garve W. Ivey, Jr. (“Ivey”) and Ivey & Ragsdale,
a professional partnership (“I&R”) (collectively referred to herein as “the I&R Parties”), on the other.  (Each signatory to this Agreement is referred to herein as a "Party", and all signatories are referred to collectively as "the Parties.")

RECITALS

 

WHEREAS, Vermont Pure has filed suit against Ivey and I&R in Massachusetts Superior Court, C.A. No. 06-1814-BLS (“the Massachusetts State Court Action”); and

 

WHEREAS, the I&R Parties deny any and all liability as alleged in the Massachusetts State Court Action, but Vermont Pure and I&R wish to resolve their outstanding claims;

 

NOW, THEREFORE, in consideration of the recitals, covenants, releases and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:

 

AGREEMENT

 

1.           Payment:  Before delivery hereof, the I&R Parties will cause the sum of $3 million to be wire transferred to the client funds account of Foley Hoag
LLP, as counsel for Vermont Pure.  Vermont Pure’s execution hereof will not be effective, and the provisions of this agreement will not be enforceable, until such funds have been received and delivery of this settlement agreement made.

 

2.           Actions dismissed:  No later than five business days from delivery hereof, Vermont Pure and the I&R Parties will cause the Massachusetts State Court Action to be dismissed with prejudice as to
the I&R Parties, by executing and filing a joint stipulation of dismissal in the form attached hereto as Exhibit A.

 

2.           General Releases: Subject only to the provisions of this Agreement:

 

(a) Vermont Pure, for itself and all of its respective parent companies, subsidiaries, divisions, affiliates, predecessors, successors, assigns, and all companies owned or controlled by them, does hereby release and forever discharge the I&R Parties and all of their respective affiliates, predecessors, successors, assigns, and all companies
owned or controlled by them, and each of their past and present partners (including without limitation Barry Ragsdale), agents, attorneys, officers, directors, shareholders, servants, employees, representatives, agents, heirs, executors, administrators and insurers from any and all claims, potential claims, demands, attorney's fees, costs, causes of action, actions, suits, debts, sums of money, damages, and causes of action of every kind or nature, whether known or unknown, suspected or unsuspected, whether arising
in law or equity, that they now have or have at any time heretofore (from the inception of time) had against them, including without limitation all claims which have been asserted or could have been asserted in the Massachusetts State Court Action.

 

(b)  I&R, for itself and all of its respective affiliates, predecessors, successors, assigns, and all companies owned or controlled by them, and Ivey, together with his representatives, agents, heirs, executors and administrators, in consideration of the mutual promises made herein, do hereby mutually release and forever discharge
the Vermont Pure Parties and all of their respective parent companies, subsidiaries, divisions, affiliates, predecessors, successors, assigns, and all companies owned or controlled by them, and each of their past and present officers, agents, attorneys (including without limitation Dean F. Hanley and Jeffrey L. Williams), officers, directors, shareholders, servants, employees, representatives, agents, heirs, and executors from any and all claims, potential claims, demands, attorney's fees, costs, causes of action,
actions, suits, debts, sums of money, damages, and causes of action of every kind or nature, whether known or unknown, suspected or unsuspected, whether arising in law or equity, that they now have or have at any time heretofore (from the inception of time) had against them, including without limitation all claims which have been asserted or could have been asserted in the Massachusetts State Court Action.

 

 

 

1

 

 

 

3.           No Admission of Liability: The Parties acknowledge that this Settlement Agreement is given in settlement of disputed claims and is not, and shall not be construed
as, an admission of liability, or as an admission of the truthfulness of any of the factual allegations made by either Party.   All Parties expressly deny all liability.

 

4.           No cooperation:  The Vermont Pure Parties will not voluntarily cooperate in any other litigation brought against the I&R Parties, including without
limitation by voluntary provision of documents.  The Vermont Pure Parties may respond to lawful process including subpoenas.

 

5.           Confidentiality:  Subject to the provisions of Paragraph 6 below, the Parties expressly agree that neither they nor any person or organization acting
on their behalf will, at any time, directly or indirectly, except as expressly authorized in writing by the non-disclosing party, publicize, divulge or disclose to any person, entity, or media representative, the terms of this Settlement Agreement and the matters released herein, except (a) as required by law or by tax authorities or (b) a Party may disclose this Settlement Agreement to a legal advisor, accountant, or auditor to the extent necessary to receive professional advice.

 

6.           Vermont Pure public disclosure:  The parties acknowledge that Vermont Pure is a public company with a class of equity securities registered under the
Securities Exchange Act of 1934 (the “Exchange Act”), and that accordingly Vermont Pure is required to disclose certain material transactions.  As required by the Exchange Act, Vermont Pure will file a Current Report on Form 8-K with the Securities and Exchange Commission (“SEC”) in connection with execution and delivery of this Settlement Agreement and of another agreement being executed and delivered herewith, which Form 8-K will contain the language set forth in Exhibit C
hereto.  Further, Vermont Pure will, as required by the Exchange Act, file this Settlement Agreement with the SEC as an exhibit to its Quarterly Report on Form 10-Q for the Quarter Ended July 31, 2009, which is required to be filed on or before September 14, 2009.  It is further understood that references similar to the language set forth in Exhibit C will occur in portions of Vermont Pure’s Form 10-Q and Form 10-K reports filed after the date hereof, and similar references may be required
to be made in other filings of Vermont Pure under the Exchange Act, the Securities Act of 1933, or other federal securities laws, in accordance with the disclosure requirements under such laws.  Vermont Pure will endeavor to keep the substance of such disclosures consistent with Exhibit C, and will make them no more specific than Exhibit C, unless otherwise required by law.

 

7.           Authority to Sign: All Parties represents and warrants to the other that the individual executing this Settlement Agreement on such Party's behalf is fully authorized
to do so, is executing the Agreement willingly and knowingly, and, further, that such individual is fully authorized to bind the Party on whose behalf it is executing this Settlement Agreement to the terms of all releases of claims, undertakings and obligations of that Party as set forth in this Settlement Agreement.

 

9.            Choice of Law: The Settlement Agreement shall be governed by and construed and enforced in accordance with the substantive and procedural laws of the Commonwealth
of Massachusetts (without regard to the conflict of laws provisions thereof).

 

10.           Execution in Counterparts: This Settlement Agreement may be executed in counterparts, which together shall comprise the executed Settlement Agreement.

 

11.           Amendments: This Settlement Agreement may be modified, amended or supplemented only by a written instrument which specifically references this Settlement Agreement
and is signed by all Parties.

 

12.           Each Party Represented by Counsel: Each Party has been advised by its own legal counsel in negotiating this Settlement Agreement and, in executing this Settlement
Agreement, and does not rely upon any representations, promises, or inducements made by any other Party or its representatives, with the sole exception of the promises and provisions set forth herein.  The fact that a Party or counsel for a party drafted any recital or provision of this Settlement Agreement shall not cause that recital or provision to be construed against the drafting Party.

 

13.           Entire Agreement: This Settlement Agreement shall constitute the entire agreement of the Parties with respect to its subject matter and supersedes any prior or
contemporaneous agreement, contract or understanding.  It shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns.

 

2

 

IN WITNESS WHEREOF, the Parties' authorized representatives have duly executed this Agreement as an instrument under seal on the day and year first written above.

 

	VERMONT PURE HOLDINGS LTD.	 	 	IVEY & RAGSDALE, a professional partnership	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
/s/Peter Baker
	 	 	
/s/ Garve W. Ivey, Jr.
	 
	
 
	 	 	
 
	 
	
Title: CEO
	 	 	
Title: Partner
	 

 

	 	 	 	GARVE W. IVEY, JR.	 
	 	 	 	 	 
	 	 	 	 	 
	
 
	 	 	
/s/ Garve W. Ivey, Jr
	 
	
 
	 	 	
 
	 
	
 
	 	 	
 
	 

 

 

3

 

 

 

Exhibit A

COMMONWEALTH OF MASSACHUSETTS

SUFFOLK, ss.

 

	 	)	 	 
	VERMONT PURE HOLDINGS, LTD.,  	)	SUPERIOR COURT	 
	 	)	 DEPARTMENT	 
	Plaintiff, 	)	 	 
	 	)	Civil Action No. 06-1814 (BLS1)	 
	 	)	 	 
	v.	)	 	 
	 	)	 	 
	THOMAS M. SOBOL,	)	STIPULATION OF DISMISSAL	 
	GARVE W. IVEY, JR.,	)	WITH PREJUDICE AS TO	 
	KEVIN F. BERRY,	)	HAGENS BERMAN SOBOL SHAPIRO, LLP, 	 
	IVEY & RAGSDALE (a partnership), and	)	GARVE W. IVEY, JR. AND	 
	COZEN O’CONNOR (a professional corporation),	)	IVEY & RAGSDALE	 
	 	)	 	 
	Defendants.	)	 	 
	 	 	 	 

 

 

Pursuant to Rule 41(a)(1)(ii), defendants Ivey & Ragsdale (“I&R”) and Garve W. Ivey, Jr. (“Ivey”) and plaintiff Vermont Pure Holdings, Ltd. (“Vermont Pure”) hereby stipulate that the claims of Vermont Pure against I&R and Ivey be, and hereby are, dismissed with prejudice, each side to bear its
own fees and costs.  I&R and Ivey are no longer parties to this action.

DATED this __th day of July, 2009

	 	 	 	 	 
	PLAINTIFF,	 	 	DEFENDANTS,	 
	VERMONT PURE HOLDING, LTD.,	 	 	IVEY & RAGSDALE and	 
	By Its Counsel,	 	 	GARVE W. IVEY, JR.	 
	 	 	 	By their counsel,	 
	 	 	 	 	 
	
 
	 	 	
 
	 
	
Michael P. Boudett, BBO No. 558757
	 	 	
Barry Ragsdale, Esq., pro hac vice
	 
	
Foley Hoag LLP
	 	 	
Sirote & Permutt, P.C.
	 
	155 Seaport Boulevard	 	 	2311 Highland Ave. S.	 
	Boston, Massachusetts 02210-2600	 	 	
Birmingham, AL  35255-5727
	 
	Tel:    (617) 832-1180	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Jeffrey L. Williams, BBO No. 565378	 	 	 	 
	Jorden Burt LLP	 	 	 	 
	175 Powder Forest Drive, Suite 201	 	 	 	 
	Simsbury, Connecticut  06089	 	 	 	 
	
Tel:   (860) 392-5000
	 	 	 	 

 

 

 

 

4

 

 

 

 

 

 

Exhibit B

Reference is made to Part I, Item 3, "Legal Proceedings," in the Company’s Annual Report on Form 10-K filed January 29, 2009, describing the Company’s lawsuit in the Superior Court Department, County of Suffolk, Massachusetts, CA No. 06-1814, against three law firms and individual members thereof that had
been representing the Company in litigation involving Nestlé Waters North America, Inc., which item is incorporated by reference.

 

On July __, 2009, the Company reached a settlement with all defendants in the action other than Cozen O’Connor and a former partner in that firm, pursuant to which mutual releases have been executed.  The Company has received a one-time payment of $3 million which will be reflected in the quarter ending
July 31, 2009.  Trial against the remaining defendants in the case has been scheduled for October 1, 2009.  Management intends to pursue the Company’s remaining claims, and to the extent of the counterclaims asserted against the Company, to defend the Company vigorously.

 

 

 

 

 

 

5

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