Document:

Exhibit

10.1

 

 

AMENDMENT TO THE AMENDED

AND RESTATED

1989 STOCK-BASED INCENTIVE PLAN OF

INTERNATIONAL MULTIFOODS CORPORATION

EFFECTIVE AS OF JUNE 23, 1999

 

The Amended and Restated

1989 Stock-Based Incentive Plan of International Multifoods Corporation (the

“Plan”) is amended, effective as of June 23, 1999, as follows:

 

The last sentence of the

second paragraph of the Plan is amended to read as follows:

 

“The Plan (but not Options, Stock Appreciation Rights,

Restricted Stock, Incentive Units, Automatic Grants, Elective Grants or

Elective Restricted Stock Awards theretofore granted under the Plan) shall

terminate on, and no Awards or Automatic Grants, Elective Grants or Elective

Restricted Stock Awards shall be granted after, June 20, 2007.”Exhibit

10.2

 

 

SECOND AMENDMENT TO THE

AMENDED AND RESTATED

1989 STOCK-BASED INCENTIVE PLAN OF

INTERNATIONAL MULTIFOODS CORPORATION

EFFECTIVE AS OF JULY 1, 2002

 

                The Amended and

Restated 1989 Stock-Based Incentive Plan of International Multifoods Corporation

(the “Plan”) is amended, effective as of July 1, 2002, as follows:

 

                The definition

of  “Automatic Grant” appearing in

Section 1 of Part II of the Plan is amended to read as follows:

 

“Automatic Grant” shall mean a Non-Qualified Stock

Option to purchase 2,500 shares of Stock granted to each Non-Employee Director

pursuant to Section 3 of Part II of the Plan.”Exhibit

10.3

 

Dan C.

Swander

President and Chief Operating Officer

 

August 2, 2002

 

 

BY EMAIL

(RWRIGHT@MULTIFOODS.COM)

AND BY

U.S. REGULAR MAIL

 

Robert S. Wright

5379 Pinyon Jay Road

Parker, CO  80134

 

 

                Subject:                 Sale of

Multifoods Distribution Management, Inc.

 

Dear Bob:

 

                                This

letter is intended to formalize our understanding with respect to benefits that

will be available to you upon a sale of Multifoods Distribution Management,

Inc. (“Distribution Management”) by International Multifoods Corporation (“Multifoods”)

to Wellspring Distribution Corp. (the “Purchaser”) pursuant to the terms of the

Stock Purchase Agreement executed concurrently herewith (the “Purchase

Agreement”).

 

                                Once

the sale of Distribution Management is closed, Distribution Management will no

longer be part of the Multifoods family of companies and you will be considered

to have terminated employment for purposes of your participation in all

Multifoods employee benefit plans except as described below with respect to

certain stock options that you have received. 

The effect this will have on your benefits is described in more detail

below.

 

                                Effective

upon the consummation of the sale of Distribution Management, you will offer

your resignation as an officer and director, as applicable, of all Multifoods

and Distribution Management controlled entities.  On the closing date (provided that you have had twenty-one (21)

days in which to consider whether you wish to sign the Release and

Confidentiality Agreement), you will also provide Multifoods with an executed

Release and Confidentiality Agreement in the form attached hereto as Exhibit

A.  In return, you will receive a

severance payment in the amount of $1,066,332, less applicable withholding

taxes, within 10 days after executing the Release and Confidentiality

Agreement.  The severance payment is

conditioned on your return of the executed Release and Confidentiality

Agreement and that you do not rescind such decision to execute the Release and

Confidentiality Agreement within seven (7) days of your execution of same.

 

                                The

sale of Distribution Management and your resignation of employment will affect

your benefits under Multifoods’ employee benefit plans.  The following is a description of the

benefits you will be eligible to receive after the sale:

 

 

 

Robert S. Wright

August 2, 2002

Page 2

 

 

                (A)          Management Incentive Plan (“MIP”).

 

                Under

the terms of the MIP, you will receive your target award if the sale occurs in

the first six months of Multifoods’ fiscal year.  If the sale occurs in the last six months of Multifoods’ fiscal

year, you will receive the greater of your target award or the award you would

have received assuming that your performance up to the date of the sale would

have continued through the end of Multifoods’s fiscal year.

 

                (B)           Stock Options, Restricted Stock Awards and Restricted

Stock Units.

 

                Your

outstanding stock options, restricted stock awards and restricted stock units

will be exercisable in accordance with their terms, provided you are then

vested.  However, solely with respect to

the 10,000 shares of restricted stock issued pursuant to your Award Agreement

dated September 15, 1995, under the Amended and Restated 1989 Stock-Based

Incentive Plan, you will be treated the same as if you were on an unpaid leave

of absence with Multifoods from the date of the closing of the Purchase

Agreement through February 28, 2003, and you will be deemed to have retired on

that date.

 

                (C)           Management Benefit Plan, Supplemental Retirement Plan,

Compensation Deferral Plan and Supplemental Deferred Compensation Plan.

 

                You

are already fully vested in these benefits and special provisions therefore are

not necessary in this letter. You will not be eligible to receive your

benefits under these plans in a lump sum payment form.

 

                (D)          Retiree Benefits

 

                You

are fully vested in your accrued benefit under the Multifoods Pension Equity

Plan and are eligible to receive your benefits under this plan according to

applicable plan provisions.  For those

benefits that require ten years of service for retiree eligibility — retiree

medical and retiree life insurance — you will not be eligible as a retiree.

 

                (E)           Completion Bonus.

 

                You

will be paid a completion bonus in the amount of $150,000, less applicable

withholding taxes, within 10 days after the date of closing of the sale of

Distribution Management.  This is in

addition to the severance payment described above.

 

 

 

Robert S. Wright

August 2, 2002

Page 3

 

 

                Please indicate

your receipt and acceptance of the terms of this letter agreement by signing

below and returning it at your earliest convenience.

 

 

 

	

   

  	

   

  	

   

  	

  INTERNATIONAL MULTIFOODS CORPORATION

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  By:

  	

  /s/ Dan C. Swander

  
	

   

  	

   

  	

   

  	

   

  	

  Dan C. Swander

  
	

   

  	

   

  	

   

  	

   

  	

  Its: President and Chief Operating Officer

  
	

   

  	

   

  	

   

  	

   

  	

   

  
						

 

_________________________________________________

 

ACCEPTANCE

 

                I, Robert S.

Wright, hereby acknowledge receipt of this letter agreement and hereby agree to

the terms herein.

 

Dated: August 12, 2002

 

 

	

   

  	

   

  	

   

  	

  ROBERT S. WRIGHT

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

  /s/ Robert S. Wright

  

 

 

EXHIBIT A

 

RELEASE AND CONFIDENTIALITY AGREEMENT

 

 

                In consideration

of the severance benefits of $1,066,332 payable under the Letter Agreement

dated August 2, 2002 (the “Letter Agreement”) between International Multifoods

Corporation (the “Company”) and Robert S. Wright (“Wright”), the sufficiency of

which is hereby acknowledged, Wright hereby releases the Company, and its

subsidiaries and affiliates, and the current and former insurers, successors,

assigns, directors, officers, agents and employees of each, from all causes of

action, claims, demands, debts, contracts and agreements which he or his heirs,

executors, administrators, legal representatives, successors or assigns and

beneficiaries, have or may have by reason of any matter, act or thing occurring

or arising prior to or on the date of this Release and Confidentiality

Agreement, whether presently known or unknown (the “Release”).

 

                The Release

applies to any cause of action, claims, demands, debts, contracts and

agreements that Wright has or may have by reason of any matter, act or thing

occurring or arising prior to or on the date of this Release Agreement, whether

or not he now knows about them, including, without limitation, any and all

claims relating to his employment with the Company and/or its subsidiaries, or

Wright’s decision to voluntarily terminate his employment and retire,

including, but not limited to, breach of contract claims, a breach of that

certain employment letter agreement, dated July 10, 1995, between the Company

and Wright, tort claims, claims for wages, bonuses or other compensation, and

claims alleging violation of the Fair Labor Standards Act, the Age

Discrimination in Employment Act, as amended, Title VII of the Civil Rights Act

of 1964, as amended, the Civil Rights Act of 1866, the National Labor Relations

Act, the Colorado human rights laws, the Americans with Disabilities Act, the

Employee Retirement Income Security Act, the Colorado Wage Act, and/or any

other federal, state or local statute, law, ordinance, regulation, order, or

principle of common law.

 

                The Release does not include any

claims that the law does not allow to be waived or any claims that arise after

the date on which this Release Agreement is signed by Wright.  In addition, the Release does not affect any

rights that Wright has (1) as a result of his participation in any pension,

health or welfare benefit plan or plans of the Company under the terms and

conditions set forth in such plan or plans as of the date of this Release

Agreement; and (2) under any indemnification to which Wright is entitled under

(A) the Restated Certificate of Incorporation, as amended, of the Company, (B)

the Bylaws, as amended, of the Company, or (C) under any contract of insurance

maintained by the Company.

 

                Wright

covenants and agrees with the Company, that Wright will maintain in strict

confidence and not disclose to any corporation, partnership or other entity or

person, any confidential information including, but not limited to, any

non-public information obtained by Wright relating to the Company and its

subsidiaries, and its businesses, plans, organization, information systems,

present and prospective customers, customer buying patterns or requirements,

products, techniques, methods, cost, pricing, price methods, margins, rebates,

and promotional allowances, trade secrets or any other proprietary information

of the Company or any of its subsidiaries, to which Wright had access to or

knowledge of during Wright’s employment by the Company.  Wright agrees that all confidential

information, trade secrets and other proprietary information of the Company and

its subsidiaries, are and shall remain the property of the Company.  Wright 

 

 

further agrees that none of the confidential

information, trade secrets and any other proprietary information of the Company

and its subsidiaries, nor any part thereof, is to be removed from the premises

of the Company, in original or duplicate form or transmitted verbally, by

electronic means or otherwise.  Wright

recognizes and acknowledges that all confidential information, trade secrets

and other proprietary information of the Company and its subsidiaries are

valuable to the Company and the disclosure or use of the same would cause

irreparable harm to the Company.

 

                Wright understands

that to the extent that any provision of this Release and Confidentiality

Agreement shall be determined to be invalid or unenforceable, the invalid or

unenforceable portion of such provision shall be deleted from this Release and

Confidentiality Agreement, and the validity and enforceability of the remainder

of such provision and of this Release and Confidentiality Agreement shall be

unaffected.

 

                Wright understands

that he may have twenty-one (21) calendar days from the date that he receives

this Release and Confidentiality Agreement, not counting the day upon which he

receives it, to consider whether he wishes to sign this Release and

Confidentiality Agreement.  If Wright

does not sign this Release and Confidentiality Agreement in that period of

time, the Company may or may not allow more time.  Wright agrees that if he signs this Release and Confidentiality

Agreement before the end of the twenty-one (21) day period, it is because he

decided that he already has had a sufficient period of time to decide whether

to sign this Release and Confidentiality Agreement.

 

                Wright

has been advised, and he understands, that he has the right to rescind this

Release and Confidentiality Agreement if he notifies the Company, in writing at

International Multifoods Corporation, 110 Cheshire Lane, Minnetonka, Minnesota

55305, Attention:  Ralph P. Hargrow,

Vice President, Human Resources and Administration, of his decision to rescind

within seven (7) days of the date that he signs this Release and

Confidentiality Agreement.  Wright

understands that this Release and Confidentiality Agreement shall not become

effective or enforceable until the revocation period has expired.  Wright also understands that if he rescinds,

he shall forfeit his rights to the severance payment.  Wright also understands that to be effective his notice of

rescission must be in writing and must be delivered to the address stated above

either by hand or by mail within the seven (7) day period.  If delivered by mail, the rescission must

be: (1) postmarked within the seven (7) day period; (2) properly addressed to

the Company; and (3) sent by certified mail, return receipt requested.

 

                Wright

acknowledges that he has read this Release and Confidentiality Agreement and

understands all of its terms and conditions. 

In agreeing to sign this Release and Confidentiality Agreement, Wright

signs it knowingly and voluntarily, and represents that he has

not relied on any statements or explanations made by the Company, its employees

or attorneys.

 

 

 

NOTICE TO EMPLOYEE:

 

The Company hereby

advises Wright to consult an attorney

before signing this

Release and Confidentiality Agreement.

 

WITNESS:

 

 

	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  Robert S. Wright

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  Date Signed:

  	

   

  
	

   

  	

   

  	

   

  	

   

  

 

Send signed and witnessed form to:

 

Ralph P. Hargrow

Vice President, Human Resources and Administration

International Multifoods Corporation

110 Cheshire Lane

Minnetonka, Minnesota 55305

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